SB21: Bill Text

SB21,939,22 71.28 (3q) (a) 2. "Eligible employee" means, for taxable years beginning before January 1, 2011, an eligible employee under s. 560.2055 (1) (b), 2009 stats., who satisfies the wage requirements under s. 560.2055 (3) (a) or (b), 2009 stats., or, for taxable years beginning after December 31, 2010, an eligible employee under s. 235.16 (1) (b) or s. 238.16 (1) (b), 2013 stats., who satisfies the wage requirements under s. 235.16 (3) (a) or (b) or s. 238.16 (3) (a) or (b), 2013 stats.

SB21,2299 Section 2299. 71.28 (3q) (b) of the statutes is amended to read:

SB21,940,3 71.28 (3q) (b) Filing claims. Subject to the limitations provided in this subsection and s. 235.16 or s. 238.16, 2013 stats., or s. 560.2055, 2009 stats., for taxable years beginning after December 31, 2009, and before January 1, 2016, a claimant may claim as a credit against the taxes imposed under s. 71.23 any of the following:

SB21,940,6 1. The amount of wages that the claimant paid to an eligible employee in the taxable year, not to exceed 10 percent of such wages, as determined under s. 235.16 or s. 238.16, 2013 stats., or s. 560.2055, 2009 stats.

SB21,940,10 2. The amount of the costs incurred by the claimant in the taxable year, as determined under s. 235.16 or s. 238.16, 2013 stats., or s. 560.2055, 2009 stats., to undertake the training activities described under s. 235.16 (3) (c) or s. 238.16 (3) (c), 2013 stats., or s. 560.2055 (3) (c), 2009 stats.

SB21,2300 Section 2300. 71.28 (3q) (c) 2. of the statutes is amended to read:

SB21,940,15 71.28 (3q) (c) 2. 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. 235.16 (2) or s. 238.16 (2) , 2013 stats., or s. 560.2055 (2), 2009 stats.

SB21,2301 Section 2301. 71.28 (3q) (c) 3. of the statutes is amended to read:

SB21,940,21 71.28 (3q) (c) 3. The maximum amount of credits that may be awarded under this subsection and ss. 71.07 (3q) and 71.47 (3q) for the period beginning on January 1, 2010, and ending on June 30, 2013, is $14,500,000, not including the amount of any credits reallocated under 235.15 (3) (d) or s. 238.15 (3) (d), 2013 stats., or s. 560.205 (3) (d), 2009 stats.

SB21,2302 Section 2302. 71.28 (3q) (d) 3. of the statutes is created to read:

SB21,940,25 71.28 (3q) (d) 3. Credits claimed under this subsection for taxable years beginning after December 31, 2008, and before January 1, 2016, may be carried forward for taxable years beginning after December 31, 2015.

SB21,2303 Section 2303. 71.28 (3w) (a) 2. of the statutes is amended to read:

SB21,941,4 71.28 (3w) (a) 2. "Claimant" means a person who is certified to claim tax benefits under s. 235.399 (5) or s. 238.399 (5), 2013 stats., or s. 560.799 (5), 2009 stats., and who files a claim under this subsection.

SB21,2304 Section 2304. 71.28 (3w) (a) 3. of the statutes is amended to read:

SB21,941,8 71.28 (3w) (a) 3. "Full-time employee" means a full-time employee, as defined in s. 235.399 (1) (am) or s. 238.399 (1) (am), 2013 stats., or s. 560.799 (1) (am), 2009 stats.

SB21,2305 Section 2305. 71.28 (3w) (a) 4. of the statutes is amended to read:

SB21,941,11 71.28 (3w) (a) 4. "Enterprise zone" means a zone designated under s. 235.399 or s. 238.399, 2013 stats., or s. 560.799, 2009 stats.

SB21,2306 Section 2306. 71.28 (3w) (a) 5d. of the statutes is amended to read:

SB21,941,15 71.28 (3w) (a) 5d. "Tier I county or municipality" means a tier I county or municipality, as determined under s. 235.399 or s. 238.399, 2013 stats., or s. 560.799, 2009 stats.

SB21,2307 Section 2307. 71.28 (3w) (a) 5e. of the statutes is amended to read:

SB21,941,19 71.28 (3w) (a) 5e. "Tier II county or municipality" means a tier II county or municipality, as determined under s. 235.399 or s. 238.399, 2013 stats., or s. 560.799, 2009 stats.

SB21,2308 Section 2308. 71.28 (3w) (b) (intro.) of the statutes is amended to read:

SB21,941,24 71.28 (3w) (b) Filing claims; payroll. (intro.) Subject to the limitations provided in this subsection and s. 235.399 or s. 238.399, 2013 stats., or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.23 an amount calculated as follows:

SB21,2309 Section 2309. 71.28 (3w) (b) 5. of the statutes is amended to read:

SB21,942,3 71.28 (3w) (b) 5. Multiply the amount determined under subd. 4. by the percentage determined under s. 235.399 or s. 238.399 , 2013 stats., or s. 560.799, 2009 stats., not to exceed 7 percent.

SB21,2310 Section 2310. 71.28 (3w) (bm) 1. of the statutes is amended to read:

SB21,942,15 71.28 (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. 235.399 or s. 238.399, 2013 stats., or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.23 an amount equal to a percentage, as determined under s. 235.399 or s. 238.399, 2013 stats., 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.

SB21,2311 Section 2311. 71.28 (3w) (bm) 2. of the statutes is amended to read:

SB21,943,6 71.28 (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. 235.399 or s. 238.399, 2013 stats., or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.23 an amount equal to the percentage, as determined under s. 235.399 or s. 238.399, 2013 stats., 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 the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage 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.

SB21,2312 Section 2312. 71.28 (3w) (bm) 3. of the statutes is amended to read:

SB21,943,14 71.28 (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. 235.399 or s. 238.399, 2013 stats., 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. 71.23 up to 10 percent of the claimant's significant capital expenditures, as determined under s. 235.399 (5m) or s. 238.399 (5m) , 2013 stats., or s. 560.799 (5m), 2009 stats.

SB21,2313 Section 2313. 71.28 (3w) (bm) 4. of the statutes is amended to read:

SB21,943,25 71.28 (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. 235.399 or s. 238.399, 2013 stats., 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. 71.23, 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 under s. 235.399 (5) (e) or s. 238.399 (5) (e), 2013 stats., 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.

SB21,2314 Section 2314. 71.28 (3w) (c) 3. of the statutes is amended to read:

SB21,944,5 71.28 (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. 235.399 (5) or (5m) or s. 238.399 (5) or (5m), 2013 stats., or s. 560.799 (5) or (5m), 2009 stats.

SB21,2315 Section 2315. 71.28 (3w) (d) of the statutes is amended to read:

SB21,944,12 71.28 (3w) (d) Administration. Subsection (4) (g) and (h), as it applies to the credit under sub. (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 or the Forward Wisconsin Development Authority.

SB21,2316 Section 2316. 71.28 (3y) of the statutes is created to read:

SB21,944,14 71.28 (3y) Business development credit. (a) Definitions. In this subsection:

SB21,944,15 1. "Claimant" means a person certified to receive tax benefits under s. 235.308.

SB21,944,16 2. "Eligible position" has the meaning given in s. 235.308 (1) (a).

SB21,944,19 (b) Filing claims. Subject to the limitations provided in this subsection and s. 235.308, for taxable years beginning after December 31, 2015, a claimant may claim as a credit against the tax imposed under ss. 71.02 and 71.08 all of the following:

SB21,944,22 1. The amount of wages that the claimant paid to an employee in an eligible position in the taxable year, not to exceed 10 percent of such wages, as determined by the Forward Wisconsin Development Authority under s. 235.308.

SB21,945,2 2. The amount of wages that the claimant paid to an employee in an eligible position in the taxable year, not to exceed 5 percent of such wages, if the employee is employed in an eligible position at the claimant's business in an economically distressed area, as determined by the Forward Wisconsin Development Authority.

SB21,945,5 3. The amount of training costs that the claimant incurred under s. 235.308 (4) (a) 3., not to exceed 50 percent of such costs, as determined by the Forward Wisconsin Development Authority.

SB21,945,9 4. The amount of the personal property investment, not to exceed 3 percent of such investment, and the amount of the real property investment, not to exceed 5 percent of such investment, in a capital investment project that satisfies s. 235.308 (4) (a) 4., as determined by the Forward Wisconsin Development Authority.

SB21,945,17 (c) Limitations. 1. Partnerships, 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, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

SB21,945,20 2. 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. 235.308.

SB21,945,22 (d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB21,946,2 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.23, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (bg).

SB21,2317 Section 2317. 71.28 (4) (ad) 1. of the statutes is amended to read:

SB21,946,18 71.28 (4) (ad) 1. Except as provided in subds. 2. and 3., 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" includes only expenses incurred by the claimant, incurred for research conducted in this state for the taxable year, 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, except as provided in par. (af), and except that "qualified research expenses" does not include compensation used in computing the credit under subs. (1dj) and sub. (1dx), the corporation's base amount, as defined in section 41 (c) of the Internal Revenue Code, 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). Section 41 (h) of the Internal Revenue Code does not apply to the credit under this paragraph.

SB21,2318 Section 2318. 71.28 (4) (ad) 2. of the statutes is amended to read:

SB21,947,12 71.28 (4) (ad) 2. For taxable years beginning after June 30, 2007, any corporation may credit against taxes otherwise due under this chapter an amount equal to 10 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" includes only expenses incurred by the claimant for research related to designing internal combustion engines for vehicles, including expenses related to designing vehicles that are powered by such engines and improving production processes for such engines and vehicles, incurred for research conducted in this state for the taxable year, 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, except as provided in par. (af), and except that "qualified research expenses" does not include compensation used in computing the credit under subs. (1dj) and sub. (1dx), the corporation's base amount, as defined in section 41 (c) of the Internal Revenue Code, 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). Section 41 (h) of the Internal Revenue Code does not apply to the credit under this paragraph.

SB21,2319 Section 2319. 71.28 (4) (ad) 3. of the statutes is amended to read:

SB21,948,7 71.28 (4) (ad) 3. For taxable years beginning after June 30, 2007, any corporation may credit against taxes otherwise due under this chapter an amount equal to 10 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" includes only expenses incurred by the claimant for research related to the design and manufacturing of energy efficient lighting systems, building automation and control systems, or automotive batteries for use in hybrid-electric vehicles, that reduce the demand for natural gas or electricity or improve the efficiency of its use, incurred for research conducted in this state for the taxable year, 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, except as provided in par. (af), and except that "qualified research expenses" does not include compensation used in computing the credit under subs. (1dj) and sub. (1dx), the corporation's base amount, as defined in section 41 (c) of the Internal Revenue Code, 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). Section 41 (h) of the Internal Revenue Code does not apply to the credit under this paragraph.

SB21,2320 Section 2320. 71.28 (4) (am) 1. of the statutes is amended to read:

SB21,949,11 71.28 (4) (am) 1. 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. III of ch. 235 or subch. II of ch. 238, 2013 stats., 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 does 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. 235.365 (3) or s. 238.365 (3) , 2013 stats., or s. 560.765 (3), 2009 stats., or 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. 235.365 (3) or s. 238.365 (3), 2013 stats., 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. 235.365 (3) or s. 238.365 (3), 2013 stats., or s. 560.765 (3), 2009 stats., and a statement from the department of commerce or the Wisconsin Economic Development Corporation or Forward Wisconsin Development Authority 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 subdivision. The rules under sub. (1di) (f) and (g) as they apply to the credit under that subsection apply to claims under this subdivision. Section 41 (h) of the Internal Revenue Code does not apply to the credit under this subdivision.

SB21,2321 Section 2321. 71.28 (4) (am) 2. of the statutes is amended to read:

SB21,949,23 71.28 (4) (am) 2. The development zones credit under subd. 1., as it applies to a person certified under s. 235.365 or s. 238.365 (3), 2013 stats., or s. 560.765 (3), 2009 stats., applies to a corporation that conducts economic activity in a development opportunity zone under s. 235.395 (1) or s. 238.395 (1), 2013 stats., or s. 560.795 (1), 2009 stats., and that is entitled to tax benefits under s. 235.395 (3) or s. 238.395 (3), 2013 stats., or s. 560.795 (3), 2009 stats., subject to the limits under s. 235.395 (2) or s. 238.395 (2), 2013 stats., or s. 560.795 (2), 2009 stats. A development opportunity zone credit under this subdivision may be calculated using expenses incurred by a claimant beginning on the effective date under s. 235.395 (2) (a) or s. 238.395 (2) (a), 2013 stats., or s. 560.795 (2) (a), 2009 stats., of the development opportunity zone designation of the area in which the claimant conducts economic activity.

SB21,2322 Section 2322. 71.28 (4m) (a) of the statutes is amended to read:

SB21,950,6 71.28 (4m) (a) Definition. In this subsection, "qualified research expenses" means qualified research expenses as defined in section 41 of the Internal Revenue Code, except that "qualified research expenses" includes only expenses incurred by the claimant for research conducted in this state for the taxable year and except that "qualified research expenses" do does not include compensation used in computing the credits credit under subs. (1dj) and sub. (1dx).

SB21,2323 Section 2323. 71.28 (5b) (a) 2. of the statutes is amended to read:

SB21,950,9 71.28 (5b) (a) 2. "Fund manager" means an investment fund manager certified under s. 235.15 (2) or s. 238.15 (2), 2013 stats., or s. 560.205 (2), 2009 stats.

SB21,2324 Section 2324. 71.28 (5b) (b) 1. of the statutes is amended to read:

SB21,950,17 71.28 (5b) (b) 1. For taxable years beginning after December 31, 2004, subject to the limitations provided under this subsection and s. 235.15 or s. 238.15, 2013 stats., 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. 71.23, 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. 235.15 (1) or s. 238.15 (1), 2013 stats., or s. 560.205 (1), 2009 stats.

SB21,2325 Section 2325. 71.28 (5b) (b) 2. of the statutes is amended to read:

SB21,951,2 71.28 (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 Forward Wisconsin Development Authority the names and tax identification numbers of the claimants, the amounts of the credits allocated to the claimants, and the computation of the allocations.

SB21,2326 Section 2326. 71.28 (5b) (d) 3. of the statutes is amended to read:

SB21,951,8 71.28 (5b) (d) 3. Except as provided under s. 238.15 235.15 (3) (d) (intro.), for 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.

SB21,2327 Section 2327. 71.28 (5j) (a) 2d. of the statutes is amended to read:

SB21,951,15 71.28 (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 financial institutions and professional standards designates by rule as a diesel replacement renewable fuel.

SB21,2328 Section 2328. 71.28 (5j) (a) 2m. of the statutes is amended to read:

SB21,951,22 71.28 (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 financial institutions and professional standards designates by rule as a gasoline replacement renewable fuel.

SB21,2329 Section 2329. 71.28 (5j) (c) 3. of the statutes is amended to read:

SB21,952,4 71.28 (5j) (c) 3. The department of commerce or the department of safety and professional services financial institutions and professional standards 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.

SB21,2330 Section 2330. 71.28 (5n) (a) 1. a. of the statutes is amended to read:

SB21,952,13 71.28 (5n) (a) 1. a. "Agriculture property factor" means a fraction, the numerator of which is the average value of the claimant's real property and improvements assessed under s. 70.32 (2) (a) 4. to 7., owned or rented and used in this state by the claimant during the taxable year to produce, grow, or extract qualified production property, and the denominator of which is the average value of all of the claimant's real property and improvements owned or rented during the taxable year and used by the claimant to produce, grow, or extract qualified production property.

SB21,2331 Section 2331. 71.28 (5n) (a) 3. of the statutes is amended to read:

SB21,952,19 71.28 (5n) (a) 3. "Direct costs" includes all of the claimant's ordinary and necessary expenses paid or incurred during the taxable year in carrying on the trade or business that are deductible as business expenses under section 162 of the Internal Revenue Code and identified as direct costs in the claimant's managerial or cost accounting records.

SB21,2332 Section 2332. 71.28 (5n) (a) 4. of the statutes is amended to read:

SB21,952,25 71.28 (5n) (a) 4. "Indirect costs" includes all of the claimant's ordinary and necessary expenses paid or incurred during the taxable year in carrying on the trade or business that are deductible as business expenses under section 162 of the Internal Revenue Code, other than cost of goods sold and direct costs, and identified as indirect costs in the claimant's managerial or cost accounting records.

SB21,2333 Section 2333. 71.28 (5n) (a) 5. d. of the statutes is created to read:

SB21,953,6 71.28 (5n) (a) 5. d. For purposes of subd. 5. a., a claimant who the department approves to be classified as a manufacturer for purposes of s. 70.995, but who is not eligible to be listed on the department's manufacturing roll until January 1 of the following year, may claim the credit in the year in which the manufacturing classification is approved.

SB21,2334 Section 2334. 71.28 (5r) (a) 2. of the statutes is amended to read:

SB21,953,9 71.28 (5r) (a) 2. "Course of instruction" has the meaning given in s. 38.50 440.52 (1) (c).

SB21,2335 Section 2335. 71.28 (5r) (a) 6. b. of the statutes is amended to read: