AB40: Bill Text

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:

AB40,879,3 73.0301 (1) (b) "Credentialing board" means a board, examining board or affiliated credentialing board in the department of regulation and licensing safety and professional services that grants a credential.

AB40, s. 2137 Section 2137. 73.0301 (1) (e) of the statutes is amended to read:

AB40,879,12 73.0301 (1) (e) "Licensing department" means the department of administration; the board of commissioners of public lands; the department of commerce; the department of children and families; the government accountability board; the department of financial institutions; the department of health services; the department of natural resources; the department of public instruction; the department of regulation and licensing; the department of safety and professional services; the department of workforce development; the office of the commissioner of insurance; or the department of transportation.

AB40, s. 2138 Section 2138. 73.0301 (2) (a) 1. of the statutes is amended to read:

AB40,879,19 73.0301 (2) (a) 1. Request the department of revenue to certify whether an applicant for a license or license renewal or continuation is liable for delinquent taxes. With respect to an applicant for a license granted by a credentialing board, the department of regulation and licensing safety and professional services shall make a request under this subdivision. This subdivision does not apply to the department of transportation with respect to licenses described in sub. (1) (d) 7.

AB40, s. 2139 Section 2139. 73.0301 (2) (a) 2. of the statutes is amended to read:

AB40,879,24 73.0301 (2) (a) 2. Request the department of revenue to certify whether a license holder is liable for delinquent taxes. With respect to a holder of a license granted by a credentialing board, the department of regulation and licensing safety and professional services shall make a request under this subdivision.

AB40, s. 2140 Section 2140. 73.0301 (2) (b) 1. a. of the statutes is amended to read:

AB40,880,13 73.0301 (2) (b) 1. a. If, after a request is made under par. (a) 1. or 2., the department of revenue certifies that the license holder or applicant for a license or license renewal or continuation is liable for delinquent taxes, revoke the license or deny the application for the license or license renewal or continuation. The department of transportation may suspend licenses described in sub. (1) (d) 7. in lieu of revoking those licenses. A suspension, revocation or denial under this subd. 1. a. is not subject to administrative review or, except as provided in subd. 2. and sub. (5) (am), judicial review. With respect to a license granted by a credentialing board, the department of regulation and licensing safety and professional services shall make a revocation or denial under this subd. 1. a. With respect to a license to practice law, the department of revenue shall not submit a certification under this subd. 1. a. to the supreme court until after the license holder or applicant has exhausted his or her remedies under sub. (5) (a) and (am) or has failed to make use of such remedies.

AB40, s. 2141 Section 2141. 73.0301 (2) (b) 1. b. of the statutes is amended to read:

AB40,881,9 73.0301 (2) (b) 1. b. Mail a notice of suspension, revocation or denial under subd. 1. a. to the license holder or applicant. The notice shall include a statement of the facts that warrant the suspension, revocation or denial and a statement that the license holder or applicant may, within 30 days after the date on which the notice of denial, suspension or revocation is mailed, file a written request with the department of revenue to have the certification of tax delinquency on which the suspension, revocation or denial is based reviewed at a hearing under sub. (5) (a). With respect to a license granted by a credentialing board, the department of regulation and licensing safety and professional services shall mail a notice under this subd. 1. b. With respect to a license to practice law, the department of revenue shall mail a notice under this subd. 1. b. and the notice shall indicate that the license holder or applicant may request a hearing under sub. (5) (a) and (am) and that the department of revenue shall submit a certificate of delinquency to suspend, revoke, or deny a license to practice law to the supreme court after the license holder or applicant has exhausted his or her remedies under sub. (5) (a) and (am) or has failed to make use of such remedies. A notice sent to a person who holds a license to practice law or who is an applicant for a license to practice law shall also indicate that the department of revenue may not submit a certificate of delinquency to the supreme court if the license holder or applicant pays the delinquent tax in full or enters into an agreement with the department of revenue to satisfy the delinquency.

AB40, s. 2142 Section 2142. 73.0301 (2) (b) 2. of the statutes is amended to read:

AB40,881,19 73.0301 (2) (b) 2. Except as provided in subd. 2m., if notified by the department of revenue that the department of revenue has affirmed a certification of tax delinquency after a hearing under sub. (5) (a), affirm a suspension, revocation or denial under subd. 1. a. A license holder or applicant may seek judicial review under ss. 227.52 to 227.60, except that the review shall be in the circuit court for Dane County, of an affirmation of a revocation or denial under this subdivision. With respect to a license granted by a credentialing board, the department of regulation and licensing safety and professional services shall make an affirmation under this subdivision.

AB40, s. 2143 Section 2143. 73.0301 (2) (b) 3. of the statutes is amended to read:

AB40,882,5 73.0301 (2) (b) 3. If a person submits a nondelinquency certificate issued under sub. (5) (b) 1., reinstate the license or grant the application for the license or license renewal or continuation, unless there are other grounds for suspending or revoking the license or for denying the application for the license or license renewal or continuation. If reinstatement is required under this subdivision, a person is not required to submit a new application or other material or to take a new test. No separate fee may be charged for reinstatement of a license under this subdivision. With respect to a license granted by a credentialing board, the department of regulation and licensing safety and professional services shall reinstate a license or grant an application under this subdivision.

AB40, s. 2144 Section 2144. 73.0301 (2) (b) 4. of the statutes is amended to read:

AB40,882,15 73.0301 (2) (b) 4. If a person whose license has been suspended or revoked or whose application for a license or license renewal or continuation has been denied under subd. 1. a. submits a nondelinquency certificate issued under sub. (3) (a) 2., reinstate the license or grant the person's application for the license or license renewal or continuation, unless there are other grounds for not reinstating the license or for denying the application for the license or license renewal or continuation. With respect to a license granted by a credentialing board, the department of regulation and licensing safety and professional services shall reinstate a license or grant an application under this subdivision.

AB40, s. 2145 Section 2145. 73.12 (1) (b) of the statutes is amended to read:

AB40,882,19 73.12 (1) (b) "Vendor" means a person providing goods or services to this state or the University of Wisconsin–Madison under subch. IV or V of ch. 16 or under ch. 84.

AB40, s. 2146 Section 2146. 73.12 (2) of the statutes is amended to read:

AB40,882,25 73.12 (2) Request for setoff. The department of revenue may request the department of administration to proceed under sub. (3) against any vendor who owes a tax. A request under this subsection consists of identification of the vendor and of the vendor's contracts with this state or the University of Wisconsin–Madison and notice to the vendor of the request for a setoff.

AB40, s. 2147 Section 2147. 73.12 (3) of the statutes is amended to read:

AB40,883,16 73.12 (3) Setoff. Upon receipt of a request under sub. (2), the department of administration shall begin to set off against amounts owed by this state or the University of Wisconsin–Madison to a vendor taxes owed to this state by that vendor until those taxes are paid in full. If the secretary of administration determines, within 30 days after receipt of a request for setoff, that the vendor against whom setoff is requested is either an essential supplier of critical commodities or the only vendor from whom a necessary good or service can be obtained and notifies the secretary of revenue of that determination, the department of administration shall waive the right of setoff and the department of administration shall pay to the vendor the amounts set off. The department of administration or the University of Wisconsin–Madison shall, within 30 days after the end of each calendar quarter, transfer to the department of revenue the taxes set off during the previous calendar quarter for deposit in the general fund, or in the transportation fund in respect to taxes owed under ch. 78, and shall notify the department of revenue of the amounts set off against each vendor.

AB40, s. 2148 Section 2148. 73.12 (5) of the statutes is amended to read:

AB40,883,21 73.12 (5) Liability precluded. Exchange of information required to administer this section does not result in liability under s. 71.78, 72.06, 77.61 (5), 78.80 (3) or 139.38 (6). The department of administration or the University of Wisconsin–Madison is not liable to any vendor because of setoffs under this section.

AB40, s. 2149 Section 2149. 73.12 (7) of the statutes is amended to read: