AB40: Bill Text

AB40, s. 1856 Section 1856. 71.07 (3w) (bm) 2. of the statutes is amended to read:

AB40,779,19 71.07 (3w) (bm) 2. In addition to the credits under par. (b) and subds. 1., 3., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount equal to the percentage, as determined by the department of commerce under s. 238.399 or s. 560.799, 2009 stats., not to exceed 7 percent, of the claimant's zone payroll paid in the taxable year to all of the claimant's full-time employees whose annual wages are greater than $20,000 in a tier I county or municipality, not including the wages paid to the employees determined under par. (b) 1., or greater than $30,000 in a tier II county or municipality, not including the wages paid to the employees determined under par. (b) 1., and who the claimant employed in the enterprise zone in the taxable year, if the total number of such employees is equal to or greater than the total number of such employees in the base year. A claimant may claim a credit under this subdivision for no more than 5 consecutive taxable years.

AB40, s. 1857 Section 1857. 71.07 (3w) (bm) 3. of the statutes is amended to read:

AB40,780,2 71.07 (3w) (bm) 3. In addition to the credits under par. (b) and subds. 1., 2., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 up to 10 percent of the claimant's significant capital expenditures, as determined by the department of commerce under s. 238.399 (5m) or s. 560.799 (5m), 2009 stats.

AB40, s. 1858 Section 1858. 71.07 (3w) (bm) 4. of the statutes is amended to read:

AB40,780,12 71.07 (3w) (bm) 4. In addition to the credits under par. (b) and subds. 1., 2., and 3., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., for taxable years beginning after December 31, 2009, a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08, up to 1 percent of the amount that the claimant paid in the taxable year to purchase tangible personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services from Wisconsin vendors, as determined by the department of commerce under s. 238.399 (5) (e) or s. 560.799 (5) (e), 2009 stats., except that the claimant may not claim the credit under this subdivision and subd. 3. for the same expenditures.

AB40, s. 1859 Section 1859. 71.07 (3w) (c) 3. of the statutes is amended to read:

AB40,780,16 71.07 (3w) (c) 3. No credit may be allowed under this subsection unless the claimant includes with the claimant's return a copy of the claimant's certification for tax benefits under s. 238.399 (5) or (5m) or s. 560.799 (5) or (5m), 2009 stats.

AB40, s. 1860 Section 1860. 71.07 (3w) (d) of the statutes is amended to read:

AB40,780,22 71.07 (3w) (d) Administration. Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection. Claimants shall include with their returns a copy of their certification for tax benefits, and a copy of the verification of their expenses, from the department of commerce or the Wisconsin Economic Development Corporation.

AB40, s. 1861 Section 1861. 71.07 (5b) (a) 2. of the statutes is amended to read:

AB40,780,25 71.07 (5b) (a) 2. "Fund manager" means an investment fund manager certified under s. 238.15 (2) or s. 560.205 (2), 2009 stats.

AB40, s. 1862 Section 1862. 71.07 (5b) (b) 1. of the statutes is amended to read:

AB40,781,7 71.07 (5b) (b) 1. For taxable years beginning after December 31, 2004, subject to the limitations provided under this subsection and s. 238.15 or s. 560.205, 2009 stats., and except as provided in subd. 2., a claimant may claim as a credit against the tax imposed under ss. 71.02 and 71.08, up to the amount of those taxes, 25 percent of the claimant's investment paid to a fund manager that the fund manager invests in a business certified under s. 238.15 (1) or s. 560.205 (1), 2009 stats.

AB40, s. 1863 Section 1863. 71.07 (5b) (b) 2. of the statutes is amended to read:

AB40,781,17 71.07 (5b) (b) 2. In the case of a partnership, limited liability company, or tax-option corporation, the computation of the 25 percent limitation under subd. 1. shall be determined at the entity level rather than the claimant level and may be allocated among the claimants who make investments in the manner set forth in the entity's organizational documents. The entity shall provide to the department of revenue and to the department of commerce or the Wisconsin Economic Development Corporation the names and tax identification numbers of the claimants, the amounts of the credits allocated to the claimants, and the computation of the allocations.

AB40, s. 1864 Section 1864. 71.07 (5b) (d) 3. of the statutes is amended to read:

AB40,781,23 71.07 (5b) (d) 3. For calendar years beginning investments made after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

AB40, s. 1865 Section 1865. 71.07 (5d) (a) 1. (intro.) of the statutes is amended to read:

AB40,782,3 71.07 (5d) (a) 1. (intro.) "Bona fide angel investment" means a purchase of an equity interest, or any other expenditure, as determined by rule under s. 238.15 or s. 560.205, 2009 stats., that is made by any of the following:

AB40, s. 1866 Section 1866. 71.07 (5d) (a) 2m. of the statutes is amended to read:

AB40,782,8 71.07 (5d) (a) 2m. "Person" means a partnership or, limited liability company, or tax-option corporation that is a nonoperating entity, as determined by the department of commerce or the Wisconsin Economic Development Corporation, a natural person, or fiduciary.

AB40, s. 1867 Section 1867. 71.07 (5d) (a) 3. of the statutes is amended to read:

AB40,782,11 71.07 (5d) (a) 3. "Qualified new business venture" means a business that is certified under s. 238.15 (1) or s. 560.205 (1), 2009 stats.

AB40, s. 1868 Section 1868. 71.07 (5d) (b) (intro.) of the statutes is amended to read:

AB40,782,16 71.07 (5d) (b) Filing claims. (intro.) Subject to the limitations provided in this subsection and in s. 238.15 or s. 560.205, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08, up to the amount of those taxes, the following:

AB40, s. 1869 Section 1869. 71.07 (5d) (b) 1. of the statutes is amended to read:

AB40,782,22 71.07 (5d) (b) 1. For taxable years beginning before January 1, 2008, in each taxable year for 2 consecutive years, beginning with the taxable year as certified by the department of commerce or the Wisconsin Economic Development Corporation, an amount equal to 12.5 percent of the claimant's bona fide angel investment made directly in a qualified new business venture.

AB40, s. 1870 Section 1870. 71.07 (5d) (b) 2. of the statutes is amended to read:

AB40,783,2 71.07 (5d) (b) 2. For taxable years beginning after December 31, 2007, for the taxable year certified by the department of commerce or the Wisconsin Economic Development Corporation, an amount equal to 25 percent of the claimant's bona fide angel investment made directly in a qualified new business venture.

AB40, s. 1871 Section 1871. 71.07 (5d) (c) 2. of the statutes is amended to read:

AB40,783,7 71.07 (5d) (c) 2. For taxable years beginning before January 1, 2008, the maximum amount of a claimant's investment that may be used as the basis for a credit under this subsection is $2,000,000 for each investment made directly in a business certified under s. 238.15 (1) or s. 560.205 (1), 2009 stats.

AB40, s. 1872 Section 1872. 71.07 (5d) (c) 3m. of the statutes is amended to read:

AB40,783,17 71.07 (5d) (c) 3m. Partnerships and, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts under par. (b). A partnership or, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners or, members, or shareholders may claim and shall provide that information to each of them. Partners and, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest or as specially allocated in their organizational documents.

AB40, s. 1873 Section 1873. 71.07 (5d) (d) 1. of the statutes is amended to read:

AB40,783,23 71.07 (5d) (d) 1. For calendar years beginning investments made after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

AB40, s. 1874 Section 1874. 71.07 (5f) (a) 1. (intro.) of the statutes is amended to read:

AB40,784,11 71.07 (5f) (a) 1. (intro.) "Accredited production" means a film, video, broadcast advertisement, or television production, as approved by the department of commerce or the department of tourism, for which the aggregate salary and wages included in the cost of the production for the period ending 12 months after the month in which the principal filming or taping of the production begins exceeds $50,000. "Accredited production" also means an electronic game, as approved by the department of commerce or the department of tourism, for which the aggregate salary and wages included in the cost of the production for the period ending 36 months after the month in which the principal programming, filming, or taping of the production begins exceeds $100,000. "Accredited production" does not include any of the following, regardless of the production costs:

AB40, s. 1875 Section 1875. 71.07 (5f) (a) 3. of the statutes is amended to read:

AB40,784,21 71.07 (5f) (a) 3. "Production expenditures" means any expenditures that are incurred in this state and directly used to produce an accredited production, including expenditures for set construction and operation, wardrobes, make-up, clothing accessories, photography, sound recording, sound synchronization, sound mixing, lighting, editing, film processing, film transferring, special effects, visual effects, renting or leasing facilities or equipment, renting or leasing motor vehicles, food, lodging, and any other similar expenditure as determined by the department of commerce or the department of tourism. "Production expenditures" do not include salary, wages, or labor-related contract payments.

AB40, s. 1876 Section 1876. 71.07 (5f) (c) 6. of the statutes is amended to read:

AB40,785,5 71.07 (5f) (c) 6. No credit may be allowed under this subsection unless the claimant files an application with the department of commerce or the department of tourism, at the time and in the manner prescribed by the department of commerce or the department of tourism, and the department of commerce or the department of tourism approves the application. The claimant shall submit a fee with the application in an amount equal to 2 percent of the claimant's budgeted production expenditures or to $5,000, whichever is less. The claimant shall submit a copy of the approved application with the claimant's return.

AB40, s. 1877 Section 1877. 71.07 (5h) (c) 4. of the statutes is amended to read:

AB40,785,11 71.07 (5h) (c) 4. No claim may be allowed under this subsection unless the department of commerce or the department of tourism certifies, in writing, that the credits claimed under this subsection are for expenses related to establishing or operating a film production company in this state and the claimant submits a copy of the certification with the claimant's return.

AB40, s. 1878 Section 1878. 71.07 (5i) (c) 1. of the statutes is amended to read:

AB40,785,15 71.07 (5i) (c) 1. The maximum amount of the credits that may be claimed under this subsection and ss. 71.28 (5i) and 71.47 (5i) in a taxable year is $10,000,000, as allocated under s. 238.14 or s. 560.204, 2009 stats.

AB40, s. 1879 Section 1879. 71.07 (5j) (a) 2d. of the statutes is amended to read:

AB40,785,21 71.07 (5j) (a) 2d. "Diesel replacement renewable fuel" includes biodiesel and any other fuel derived from a renewable resource that meets all of the applicable requirements of the American Society for Testing and Materials for that fuel and that the department of commerce or the department of safety and professional services designates by rule as a diesel replacement renewable fuel.

AB40, s. 1880 Section 1880. 71.07 (5j) (a) 2m. of the statutes is amended to read:

AB40,786,2 71.07 (5j) (a) 2m. "Gasoline replacement renewable fuel" includes ethanol and any other fuel derived from a renewable resource that meets all of the applicable requirements of the American Society for Testing and Materials for that fuel and that the department of commerce or the department of safety and professional services designates by rule as a gasoline replacement renewable fuel.

AB40, s. 1881 Section 1881. 71.07 (5j) (c) 3. of the statutes is amended to read:

AB40,786,9 71.07 (5j) (c) 3. The department of commerce or the department of safety and professional services shall establish standards to adequately prevent, in the distribution of conventional fuel to an end user, the inadvertent distribution of fuel containing a higher percentage of renewable fuel than the maximum percentage established by the federal environmental protection agency for use in conventionally-fueled engines.

AB40, s. 1882 Section 1882. 71.07 (5r) (a) 6. a. of the statutes is amended to read:

AB40,786,14 71.07 (5r) (a) 6. a. A University of Wisconsin System institution, the University of Wisconsin-Madison, a technical college system institution, or a regionally accredited 4-year nonprofit college or university having its regional headquarters and principal place of business in this state.

AB40, s. 1883 Section 1883. 71.07 (9e) (af) (intro.) of the statutes is amended to read:

AB40,786,20 71.07 (9e) (af) (intro.) For taxable years beginning after December 31, 1995, and before January 1, 2011, any natural person may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the person is eligible for the taxable year under section 32 (b) (1) (A) to (C) of the internal revenue code Internal Revenue Code:

AB40, s. 1884 Section 1884. 71.07 (9e) (aj) of the statutes is created to read:

AB40,787,2 71.07 (9e) (aj) For taxable years beginning after December 31, 2010, an individual may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the person is eligible for the taxable year under section 32 (b) (1) (A) to (C) of the Internal Revenue Code:

AB40,787,4 1. If the person has one qualifying child who has the same principal place of abode as the person, 5 percent.

AB40,787,6 2. If the person has 2 qualifying children who have the same principal place of abode as the person, 8 percent.

AB40,787,8 3. If the person has 3 or more qualifying children who have the same principal place of abode as the person, 40 percent.

AB40, s. 1885 Section 1885. 71.10 (3) (title) of the statutes is amended to read:

AB40,787,10 71.10 (3) (title) Campaign fund funds, before 2012.

AB40, s. 1886 Section 1886. 71.10 (3) (c) of the statutes is created to read:

AB40,787,13 71.10 (3) (c) This subsection does not apply to a taxable year that begins after December 31, 2011.

AB40, s. 1887 Section 1887. 71.10 (3e) of the statutes is created to read:

AB40,787,16 71.10 (3e) Campaign funds, after 2011. (a) Definition. In this subsection, "department" means the department of revenue.

AB40,787,23 (b) Voluntary payments. 1. `Designation on return.' Every individual filing an income tax return who has a tax liability or is entitled to a tax refund may designate on the return $3 of additional payment or $3 of a refund due that individual for the Wisconsin election campaign fund and the democracy trust fund for the use of eligible candidates under ss. 11.50 to 11.522. If the individuals filing a joint return have a tax liability or are entitled to a tax refund, each individual may make a designation of $3 under this subsection.

AB40,788,2 2. `Designation added to tax owed.' If the individual owes any tax, the individual shall remit in full the tax due and the amount designated on the return for the Wisconsin election campaign fund and the democracy trust fund when the individual files a tax return.

AB40,788,7 3. `Designation deducted from refund.' Except as provided under par. (d), if the individual is owed a refund for that year after crediting under ss. 71.75 (9) and 71.80 (3) and (3m), the department shall deduct the amount designated on the return for the Wisconsin election campaign fund and the democracy trust fund from the amount of the refund.

AB40,788,11 (c) Errors; failure to remit correct amount. If an individual who owes taxes fails to remit an amount equal to or in excess of the total of the actual tax due, after error corrections, and the amount designated on the return for the Wisconsin election campaign fund and the democracy trust fund:

AB40,788,17 1. The department shall reduce the designation for the Wisconsin election campaign fund and the democracy trust fund to reflect the amount remitted in excess of the actual tax due, after error corrections, if the individual remitted an amount in excess of the actual tax due, after error corrections, but less than the total of the actual tax due, after error corrections, and the amount originally designated on the return for the Wisconsin election campaign fund and the democracy trust fund.

AB40,788,20 2. The designation for the Wisconsin election campaign fund and the democracy trust fund is void if the individual remitted an amount equal to or less than the actual tax due, after error corrections.

AB40,789,2 (d) Errors; insufficient refund. If an individual who is owed a refund which does not equal or exceed the amount designated on the return for the Wisconsin election campaign fund and the democracy trust fund, after crediting under ss. 71.75 (9) and 71.80 (3) and (3m) and after error corrections, the department shall reduce the designation for the Wisconsin election campaign fund and the democracy trust fund to reflect the actual amount of the refund the individual is otherwise owed, after crediting under ss. 71.75 (9) and 71.80 (3) and (3m) and after error corrections.

AB40,789,5 (e) Conditions. If an individual places any conditions on a designation for the Wisconsin election campaign fund or the democracy trust fund, the designation is void.

AB40,789,9 (f) Void designation. If a designation for the Wisconsin election campaign fund and the democracy trust fund is void, the department shall disregard the designation and determine amounts due, owed, refunded, and received without regard to the void designation.

AB40,789,14 (g) Tax return. The secretary of revenue shall provide a place for the designations under this subsection on the individual income tax return and, on forms printed by the department, the secretary shall highlight that place on the return by a symbol chosen by the government accountability board that relates to the Wisconsin election campaign fund and the democracy trust fund.

AB40,789,17 (h) Certification of amounts. Annually, on or before August 15, the secretary of revenue shall certify to the government accountability board, the department of administration and the state treasurer all of the following:

AB40,789,20 1. The total amount of the administrative costs, including data processing costs, incurred by the department in administering this subsection during the previous fiscal year.

AB40,789,23 2. The total amount received from all designations for the Wisconsin election campaign fund and the democracy trust fund made by taxpayers during the previous fiscal year.

AB40,790,3 3. The net amount remaining after the administrative costs, including data processing costs, under subd. 1. are subtracted from the total received under subd. 2.

AB40,790,5 (i) Confidentiality. The names of persons making designations under this subsection shall be strictly confidential.

AB40,790,13 (j) Appropriations. From the moneys received from designations for the Wisconsin election campaign fund and the democracy trust fund, an amount equal to the sum of administrative expenses, including data processing costs, certified under par. (h) 1. shall be deposited in the general fund and credited to the appropriation under s. 20.566 (1) (hp), and two-thirds of the net amount remaining certified under par. (h) 3. shall be deposited in the democracy trust fund and one-third of the net amount remaining certified under par. (h) 3. shall be deposited in the Wisconsin election campaign fund.

AB40,790,20 (k) Amounts subject to refund. Amounts designated for the Wisconsin election campaign fund and the democracy trust fund under this subsection are not subject to refund to the taxpayer unless the taxpayer submits information to the satisfaction of the department, within 18 months after the date taxes are due or the date the return is filed, whichever is later, that the amount designated is clearly in error. Any refund granted by the department under this paragraph shall be deducted from the moneys received under this subsection in the fiscal year that the refund is certified.

AB40,790,22 (L) Initial applicability. This subsection first applies to taxable years beginning after December 31, 2011.

AB40, s. 1888 Section 1888. 71.10 (5f) (i) of the statutes is amended to read:

AB40,791,8 71.10 (5f) (i) Appropriations and payment. From the moneys received from designations for the breast cancer research program, an amount equal to the sum of administrative expenses, including data processing costs, certified under par. (h) 1. shall be deposited in the general fund and credited to the appropriation account under s. 20.566 (1) (hp), and, of the net amount remaining that is certified under par. (h) 3., an amount equal to 50 percent shall be credited to the appropriation account under s. 20.250 (2) (g) and an amount equal to 50 percent shall be credited to the appropriation account under s. 20.285 (1) (gm) paid to the University of Wisconsin-Madison for breast cancer research conducted by the University of Wisconsin Carbone Cancer Center.

AB40, s. 1889 Section 1889. 71.10 (5h) (i) of the statutes is amended to read:

AB40,791,18 71.10 (5h) (i) Appropriations, disbursement of funds to the fund and payment . From the moneys received from designations for the prostate cancer research program, an amount equal to the sum of administrative expenses, including data processing costs, certified under par. (h) 1. shall be deposited in the general fund and credited to the appropriation account under s. 20.566 (1) (hp), and of the net amount remaining that is certified under par. (h) 3. an amount equal to 50 percent shall be credited to the appropriation accounts account under ss. s. 20.250 (2) (h) and 20.285 (1) (gn) and amount equal to 50 percent shall be paid to the University of Wisconsin-Madison, for the use specified under s. 255.054 (1).