SB7, s. 6 3Section 6. 71.28 (5p) of the statutes is created to read:
SB7,4,44 71.28 (5p) Small business credit. (a) Definitions. In this subsection:
SB7,4,55 1. "Claimant" means a person who files a claim under this subsection.
SB7,4,106 2. "Gross receipts from all activities" means gross receipts, gross sales, gross
7dividends, gross interest income, gross rents, gross royalties, the gross sales price
8from the disposition of capital assets and business assets, gross receipts passed
9through from other entities, and all other receipts that are included in gross income
10before apportionment for Wisconsin franchise or income tax purposes.
SB7,4,1511 (b) Filing claims. Subject to the limitations provided in this subsection, for
12taxable years beginning after December 31, 2010, a claimant may claim as a credit
13against the tax imposed under s. 71.23, up to the amount of the tax, the following
14percentage of the claimant's gross tax liability in the taxable year for which the claim
15relates:
SB7,4,1716 1. If the gross receipts from all activities of the claimant's business in the
17taxable year is no more than $250,000, 15 percent.
SB7,4,2118 2. If the gross receipts from all activities of the claimant's business in the
19taxable year is greater than $250,000, but less than $500,000, a percentage equal to
2015, minus the product of 0.00006 multiplied by the amount of the gross receipts for
21the taxable year that exceed $250,000.
SB7,4,2322 3. If the gross receipts from all activities of the claimant's business in the
23taxable year is $500,000 or more, 0 percent.
SB7,5,324 (c) Limitations. Partnerships, limited liability companies, and tax-option
25corporations may not claim the credit under this subsection. A partnership, limited

1liability company, or tax-option corporation shall compute the rate of credit that each
2of its partners, members, or shareholders may claim and shall provide that
3information to each of them.
SB7,5,74 (d) Administration. 1. A claimant shall claim the credit under this subsection
5on a form prepared by the department and shall submit to the department any
6documentation required by the department to administer the credit under this
7subsection.
SB7,5,98 2. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to
9the credit under this subsection.
SB7, s. 7 10Section 7. 71.30 (3) (dw) of the statutes is created to read:
SB7,5,1111 71.30 (3) (dw) Small business credit under s. 71.28 (5p).
SB7, s. 8 12Section 8. 71.34 (1k) (g) of the statutes is amended to read:
SB7,5,1613 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
14corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
15(3), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j),
16(5k), (5p), (5r), (5rm), and (8r) and passed through to shareholders.
SB7, s. 9 17Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:
SB7,5,2418 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
19computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn),
20(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5p), (5r), (5rm), and (8r) and not passed
21through by a partnership, limited liability company, or tax-option corporation that
22has added that amount to the partnership's, limited liability company's, or
23tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and the amount
24of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).
SB7, s. 10 25Section 10. 71.47 (5p) of the statutes is created to read:
SB7,6,1
171.47 (5p) Small business credit. (a) Definitions. In this subsection:
SB7,6,22 1. "Claimant" means a person who files a claim under this subsection.
SB7,6,73 2. "Gross receipts from all activities" means gross receipts, gross sales, gross
4dividends, gross interest income, gross rents, gross royalties, the gross sales price
5from the disposition of capital assets and business assets, gross receipts passed
6through from other entities, and all other receipts that are included in gross income
7before apportionment for Wisconsin franchise or income tax purposes.
SB7,6,128 (b) Filing claims. Subject to the limitations provided in this subsection, for
9taxable years beginning after December 31, 2010, a claimant may claim as a credit
10against the tax imposed under s. 71.43, up to the amount of the tax, the following
11percentage of the claimant's gross tax liability in the taxable year for which the claim
12relates:
SB7,6,1413 1. If the gross receipts from all activities of the claimant's business in the
14taxable year is no more than $250,000, 15 percent.
SB7,6,1815 2. If the gross receipts from all activities of the claimant's business in the
16taxable year is greater than $250,000, but less than $500,000, a percentage equal to
1715, minus the product of 0.00006 multiplied by the amount of the gross receipts for
18the taxable year that exceed $250,000.
SB7,6,2019 3. If the gross receipts from all activities of the claimant's business in the
20taxable year is $500,000 or more, 0 percent.
SB7,6,2521 (c) Limitations. Partnerships, limited liability companies, and tax-option
22corporations may not claim the credit under this subsection. A partnership, limited
23liability company, or tax-option corporation shall compute the rate of credit that each
24of its partners, members, or shareholders may claim and shall provide that
25information to each of them.
SB7,7,4
1(d) Administration. 1. A claimant shall claim the credit under this subsection
2on a form prepared by the department and shall submit to the department any
3documentation required by the department to administer the credit under this
4subsection.
SB7,7,65 2. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies
6to the credit under this subsection.
SB7, s. 11 7Section 11. 71.49 (1) (dw) of the statutes is created to read:
SB7,7,88 71.49 (1) (dw) Small business credit under s. 71.47 (5p).
SB7, s. 12 9Section 12. 77.92 (4) of the statutes is amended to read:
SB7,7,2510 77.92 (4) "Net business income," with respect to a partnership, means taxable
11income as calculated under section 703 of the Internal Revenue Code; plus the items
12of income and gain under section 702 of the Internal Revenue Code, including taxable
13state and municipal bond interest and excluding nontaxable interest income or
14dividend income from federal government obligations; minus the items of loss and
15deduction under section 702 of the Internal Revenue Code, except items that are not
16deductible under s. 71.21; plus guaranteed payments to partners under section 707
17(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
18(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
19(3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5p), (5r), (5rm), and
20(8r); and plus or minus, as appropriate, transitional adjustments, depreciation
21differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but
22excluding income, gain, loss, and deductions from farming. "Net business income,"
23with respect to a natural person, estate, or trust, means profit from a trade or
24business for federal income tax purposes and includes net income derived as an
25employee as defined in section 3121 (d) (3) of the Internal Revenue Code.
SB7, s. 13
1Section 13. Nonstatutory provisions.
SB7,8,32 (1) Required general fund balance. Section 20.003 (4) of the statutes does not
3apply to the action of the legislature in enacting this act.
SB7,8,44 (End)
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