AB40: Bill Text

AB40, s. 2094 Section 2094. 71.47 (3rn) (c) 6. of the statutes is amended to read:

AB40,866,8 71.47 (3rn) (c) 6. No credit may be allowed under this subsection unless the claimant submits with the claimant's return a copy of the claimant's credit certification and allocation under s. 238.17 or s. 560.2056, 2009 stats.

AB40, s. 2095 Section 2095. 71.47 (3t) (b) of the statutes is amended to read:

AB40,866,15 71.47 (3t) (b) Credit. Subject to the limitations provided in this subsection and in s. 560.28, 2009 stats., for taxable years beginning after December 31, 2007, a claimant may claim as a credit, amortized over 15 taxable years starting with the taxable year beginning after December 31, 2007, against the tax imposed under s. 71.43, up to the amount of the tax, an amount equal to the claimant's unused credits under s. 71.47 (3).

AB40, s. 2096 Section 2096. 71.47 (3t) (c) 1. of the statutes is amended to read:

AB40,866,23 71.47 (3t) (c) 1. No credit may be claimed under this subsection unless the claimant submits with the claimant's return a copy of the claimant's certification by the department of commerce under s. 560.28, 2009 stats., except that, with regard to credits claimed by partners of a partnership, members of a limited liability company, or shareholders of a tax-option corporation, the entity shall provide a copy of its certification under s. 560.28, 2009 stats., to the partner, member, or shareholder to submit with his or her return.

AB40, s. 2097 Section 2097. 71.47 (3w) (a) 2. of the statutes is amended to read:

AB40,867,3 71.47 (3w) (a) 2. "Claimant" means a person who is certified to claim tax benefits under s. 238.399 (5) or s. 560.799 (5), 2009 stats., and who files a claim under this subsection.

AB40, s. 2098 Section 2098. 71.47 (3w) (a) 3. of the statutes is amended to read:

AB40,867,6 71.47 (3w) (a) 3. "Full-time employee" means a full-time employee, as defined in s. 238.399 (1) (am) or s. 560.799 (1) (am), 2009 stats.

AB40, s. 2099 Section 2099. 71.47 (3w) (a) 4. of the statutes is amended to read:

AB40,867,9 71.47 (3w) (a) 4. "Enterprise zone" means a zone designated under s. 238.399 or s. 560.799, 2009 stats.

AB40, s. 2100 Section 2100. 71.47 (3w) (a) 5d. of the statutes is amended to read:

AB40,867,13 71.47 (3w) (a) 5d. "Tier I county or municipality" means a tier I county or municipality, as determined by the department of commerce under s. 238.399 or s. 560.799, 2009 stats.

AB40, s. 2101 Section 2101. 71.47 (3w) (a) 5e. of the statutes is amended to read:

AB40,867,17 71.47 (3w) (a) 5e. "Tier II county or municipality" means a tier II county or municipality, as determined by the department of commerce under s. 238.399 or s. 560.799, 2009 stats.

AB40, s. 2102 Section 2102. 71.47 (3w) (b) (intro.) of the statutes is amended to read:

AB40,867,22 71.47 (3w) (b) Filing claims; payroll. (intro.) 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. 71.43 an amount calculated as follows:

AB40, s. 2103 Section 2103. 71.47 (3w) (b) 5. of the statutes is amended to read:

AB40,868,3 71.47 (3w) (b) 5. Multiply the amount determined under subd. 4. by the percentage determined by the department of commerce under s. 238.399 or s. 560.799, 2009 stats., not to exceed 7 percent.

AB40, s. 2104 Section 2104. 71.47 (3w) (bm) 1. of the statutes is amended to read:

AB40,868,15 71.47 (3w) (bm) 1. In addition to the credits under par. (b) and subds. 2., 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. 71.43 an amount equal to a percentage, as determined by the department of commerce under s. 238.399 or s. 560.799, 2009 stats., not to exceed 100 percent, of the amount the claimant paid in the taxable year to upgrade or improve the job-related skills of any of the claimant's full-time employees, to train any of the claimant's full-time employees on the use of job-related new technologies, or to provide job-related training to any full-time employee whose employment with the claimant represents the employee's first full-time job. This subdivision does not apply to employees who do not work in an enterprise zone.

AB40, s. 2105 Section 2105. 71.47 (3w) (bm) 2. of the statutes is amended to read:

AB40,869,5 71.47 (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. 71.43 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. 2106 Section 2106. 71.47 (3w) (bm) 3. of the statutes is amended to read:

AB40,869,12 71.47 (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. 71.43 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. 2107 Section 2107. 71.47 (3w) (bm) 4. of the statutes is amended to read:

AB40,869,22 71.47 (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. 71.43, 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. 2108 Section 2108. 71.47 (3w) (c) 3. of the statutes is amended to read:

AB40,870,3 71.47 (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. 2109 Section 2109. 71.47 (3w) (d) of the statutes is amended to read:

AB40,870,9 71.47 (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. 2110 Section 2110. 71.47 (4) (am) of the statutes is amended to read:

AB40,871,15 71.47 (4) (am) Development zone additional research credit. In addition to the credit under par. (ad), any corporation may credit against taxes otherwise due under this chapter an amount equal to 5 percent of the amount obtained by subtracting from the corporation's qualified research expenses, as defined in section 41 of the Internal Revenue Code, except that "qualified research expenses" include only expenses incurred by the claimant in a development zone under subch. II of ch. 238 or subch. VI of ch. 560, 2009 stats., except that a taxpayer may elect the alternative computation under section 41 (c) (4) of the Internal Revenue Code and that election applies until the department permits its revocation and except that "qualified research expenses" do not include compensation used in computing the credit under sub. (1dj) nor research expenses incurred before the claimant is certified for tax benefits under s. 238.365 (3) or s. 560.765 (3), 2009 stats., the corporation's base amount, as defined in section 41 (c) of the Internal Revenue Code, in a development zone, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2., (df) 1. and 2., (dh) 1., 2., and 3., (dj), and (dk) and research expenses used in calculating the base amount include research expenses incurred before the claimant is certified for tax benefits under s. 238.365 (3) or s. 560.765 (3) , 2009 stats., in a development zone, if the claimant submits with the claimant's return a copy of the claimant's certification for tax benefits under s. 238.365 (3) or s. 560.765 (3), 2009 stats., and a statement from the department of commerce or the Wisconsin Economic Development Corporation verifying the claimant's qualified research expenses for research conducted exclusively in a development zone. The rules under s. 73.03 (35) apply to the credit under this paragraph. The rules under sub. (1di) (f) and (g) as they apply to the credit under that subsection apply to claims under this paragraph. Section 41 (h) of the Internal Revenue Code does not apply to the credit under this paragraph. No credit may be claimed under this paragraph for taxable years that begin on January 1, 1998, or thereafter. Credits under this paragraph for taxable years that begin before January 1, 1998, may be carried forward to taxable years that begin on January 1, 1998, or thereafter.

AB40, s. 2111 Section 2111. 71.47 (5b) (a) 2. of the statutes is amended to read:

AB40,871,18 71.47 (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. 2112 Section 2112. 71.47 (5b) (b) 1. of the statutes is amended to read:

AB40,871,25 71.47 (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 s. 71.43, 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. 2113 Section 2113. 71.47 (5b) (b) 2. of the statutes is amended to read:

AB40,872,10 71.47 (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. 2114 Section 2114. 71.47 (5b) (d) 3. of the statutes is amended to read:

AB40,872,16 71.47 (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. 2115 Section 2115. 71.47 (5f) (a) 1. (intro.) of the statutes is amended to read:

AB40,873,3 71.47 (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. 2116 Section 2116. 71.47 (5f) (a) 3. of the statutes is amended to read:

AB40,873,13 71.47 (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. 2117 Section 2117. 71.47 (5f) (c) 6. of the statutes is amended to read:

AB40,873,22 71.47 (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. 2118 Section 2118. 71.47 (5h) (c) 4. of the statutes is amended to read:

AB40,874,3 71.47 (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. 2119 Section 2119. 71.47 (5i) (c) 1. of the statutes is amended to read:

AB40,874,7 71.47 (5i) (c) 1. The maximum amount of the credits that may be claimed under this subsection and ss. 71.07 (5i) and 71.28 (5i) in a taxable year is $10,000,000, as allocated under s. 238.14 or s. 560.204, 2009 stats.

AB40, s. 2120 Section 2120. 71.47 (5j) (a) 2d. of the statutes is amended to read:

AB40,874,13 71.47 (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 safety and professional services designates by rule as a diesel replacement renewable fuel.

AB40, s. 2121 Section 2121. 71.47 (5j) (a) 2m. of the statutes is amended to read:

AB40,874,19 71.47 (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 safety and professional services designates by rule as a gasoline replacement renewable fuel.

AB40, s. 2122 Section 2122. 71.47 (5j) (c) 3. of the statutes is amended to read:

AB40,874,25 71.47 (5j) (c) 3. The department of commerce 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. 2123 Section 2123. 71.47 (5r) (a) 6. a. of the statutes is amended to read:

AB40,875,5 71.47 (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. 2124 Section 2124. 71.54 (1) (f) (intro.) of the statutes is amended to read:

AB40,875,10 71.54 (1) (f) 2001 and thereafter to 2011. (intro.) Subject to sub. (2m), the amount of any claim filed in 2001 and thereafter to 2011 and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:

AB40, s. 2125 Section 2125. 71.54 (1) (g) of the statutes is created to read:

AB40,875,14 71.54 (1) (g) 2012 and thereafter. The amount of any claim filed in 2012 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:

AB40,875,17 1. If the household income was $8,060 or less in the year to which the claim relates, the claim is limited to 80 percent of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's homestead.

AB40,875,22 2. If the household income was more than $8,060 in the year to which the claim relates, the claim is limited to 80 percent of the amount by which the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's homestead exceeds 8.785 percent of the household income exceeding $8,060.

AB40,875,24 3. No credit may be allowed if the household income of a claimant exceeds $24,680.

AB40, s. 2126 Section 2126. 71.54 (2) (b) 3. of the statutes is amended to read:

AB40,876,2 71.54 (2) (b) 3. Subject to sub. (2m), in calendar year 1990 or any subsequent calendar year years 1990 to 2010, $1,450.

AB40, s. 2127 Section 2127. 71.54 (2) (b) 4. of the statutes is created to read:

AB40,876,4 71.54 (2) (b) 4. In calendar years 2011 or any subsequent calendar year, $1,460.

AB40, s. 2128 Section 2128. 71.54 (2m) of the statutes is amended to read:

AB40,876,22 71.54 (2m) Indexing for inflation; 2010 and thereafter. (a) For calendar years beginning after December 31, 2009, and before January 1, 2011, the dollar amounts of the threshold income under sub. (1) (f) 1. and 2., the maximum household income under sub. (1) (f) 3. and the maximum property taxes under sub. (2) (b) 3. shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the 12-month average of the U.S. consumer price index for the month of August of the year before the previous year through the month of July of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the 12-month average of the U.S. consumer price index for August 2007 through July 2008, as determined by the federal department of labor, except that the adjustment may occur only if the percentage is a positive number. Each amount that is revised under this paragraph shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this paragraph and incorporate the changes into the income tax forms and instructions.

AB40,877,3 (b) The department of revenue shall annually adjust the slope under sub. (1) (f) 2. such that, as a claimant's income increases from the threshold income as calculated under par. (a), to an amount that exceeds the maximum household income as calculated under par. (a), the credit that may be claimed is reduced to $0 and the department of revenue shall incorporate the changes into the income tax forms and instructions.

AB40, s. 2129 Section 2129. 71.78 (4) (m) of the statutes is amended to read:

AB40,877,8 71.78 (4) (m) The secretary of commerce chief executive officer of the Wisconsin Economic Development Corporation and employees of that department the corporation to the extent necessary to administer the development zone program under subch. VI of ch. 560 II of ch. 238.

AB40, s. 2130 Section 2130. 71.93 (1) (a) 3. of the statutes is amended to read:

AB40,877,12 71.93 (1) (a) 3. An amount that the department of health services may recover under s. 49.45 (2) (a) 10., 49.497, 49.793, or 49.847, if the department of health services has certified the amount under s. 49.85.

AB40, s. 2131 Section 2131. 71.93 (1) (a) 4. of the statutes is amended to read:

AB40,877,16 71.93 (1) (a) 4. An amount that the department of children and families may recover under s. 49.161 or, 49.195 (3) , or 49.373 or collect under s. 49.147 (6) (cm), if the department of children and families has certified the amount under s. 49.85.

AB40, s. 2132 Section 2132. 73.03 (27) of the statutes is amended to read:

AB40,877,22 73.03 (27) To write off from the records of the department income, franchise, sales, use, withholding, motor fuel, gift, beverage and cigarette tax and recycling economic development surcharge liabilities, following a determination by the secretary of revenue that they are not collectible. Taxes written off under this subsection remain legal obligations.

AB40, s. 2133 Section 2133. 73.03 (35) of the statutes is amended to read:

AB40,878,6 73.03 (35) To deny a portion of a credit claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), or (2dx), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), or (4) (am), 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), or (4) (am), or 76.636 if granting the full amount claimed would violate a requirement under s. 238.385 or s. 560.785, 2009 stats., or would bring the total of the credits granted to that claimant under all of those subsections over the limit for that claimant under s. 238.368, 238.395 (2) (b), or 238.397 (5) (b) or s. 560.768, 2009 stats., s. 560.795 (2) (b), 2009 stats., or s. 560.797 (5) (b), 2009 stats.

AB40, s. 2134 Section 2134. 73.03 (35m) of the statutes is amended to read:

AB40,878,12 73.03 (35m) To deny a portion of a credit claimed under s. 71.07 (3g), 71.28 (3g), or 71.47 (3g), if granting the full amount claimed would violate a requirement under s. 238.23 or s. 560.96, 2009 stats., or would bring the total of the credits claimed under ss. 71.07 (3g), 71.28 (3g), and 71.47 (3g) over the limit for all claimants under s. 238.23 (2) or s. 560.96 (2), 2009 stats.

AB40, s. 2135 Section 2135. 73.03 (63) of the statutes is amended to read:

AB40,878,22 73.03 (63) Notwithstanding the amount limitations specified under ss. s. 71.07 (5d) (c) 1. and s. 238.15 (3) (d) or s. 560.205 (3) (d), 2009 stats., in consultation with the department of commerce or the Wisconsin Economic Development Corporation, to carry forward to subsequent taxable years unclaimed credit amounts of the early stage seed investment credits under ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638 and the angel investment credit under s. 71.07 (5d). Annually, no later than July 1, the department of commerce or the Wisconsin Economic Development Corporation shall submit to the department of revenue its recommendations for the carry forward of credit amounts as provided under this subsection.

AB40, s. 2136 Section 2136. 73.0301 (1) (b) of the statutes is amended to read: