71.07(2dj)(e)3.a.a. If certified under
s. 560.765 (3) for tax benefits before January 1, 1992, a statement from the department of commerce verifying the amount of qualifying wages and verifying that the employes were hired for work only in a development zone or are mobile employes whose base of operations is in a development zone.
71.07(2dj)(e)3.b.
b. If certified under
s. 560.765 (3) for tax benefits after December 31, 1991, a statement from the department of commerce verifying the amount of qualifying wages and verifying that the employes were hired for work only in a development zone or are mobile employes or leased or rented employes whose base of operations is in a development zone.
71.07(2dj)(e)4.
4. A copy of any claims for the credit under section
51 of the internal revenue code that are based on wages that also are the basis for a claim under this subsection.
71.07(2dj)(f)
(f) The rules under
sub. (2di) (f) and
(g) as they apply to the credit under that subsection apply to the credit under this subsection.
71.07(2dj)(h)
(h) The rules under
sub. (2di) (b) and
(c) as they apply to the credit under that subsection apply to the credit under this subsection.
71.07(2dL)
(2dL) Development zones location credit. 71.07(2dL)(a)(a) Except as provided in
pars. (ag),
(ar),
(bm) and
(f) and
s. 73.03 (35), for any taxable year for which the person is certified under
s. 560.765 (3) for tax benefits, any person may claim as a credit against taxes otherwise due under this subchapter an amount equal to 2.5% of the amount expended by that person to acquire, construct, rehabilitate or repair real property in a development zone under
subch. VI of ch. 560.
71.07(2dL)(ag)
(ag) If the credit under
par. (a) is claimed for an amount expended to construct, rehabilitate, remodel or repair property, the claimant must have begun the physical work of construction, rehabilitation, remodeling or repair, or any demolition or destruction in preparation for the physical work, after the place where the property is located was designated a development zone under
s. 560.71 and the completed project must be placed in service after the claimant is certified for tax benefits under
s. 560.765 (3). In this paragraph, "physical work" does not include preliminary activities such as planning, designing, securing financing, researching, developing specifications or stabilizing the property to prevent deterioration.
71.07(2dL)(ar)
(ar) If the credit under
par. (a) is claimed for an amount expended to acquire property, the property must have been acquired by the claimant after the place where the property is located was designated a development zone under
s. 560.71 and the completed project must be placed in service after the claimant is certified for tax benefits under
s. 560.765 (3) and the property must not have been previously owned by the claimant or a related person during the 2 years prior to the designation of the development zone under
s. 560.71. No credit is allowed for an amount expended to acquire property until the property, either in its original state as acquired by the claimant or as subsequently constructed, rehabilitated, remodeled or repaired, is placed in service.
71.07(2dL)(aw)
(aw) In
par. (ar), property is previously owned by a claimant or a related person if a claimant may not deduct a loss from a sale to, or exchange of property with, that related person under section
267 of the internal revenue code, except that section
267 (b) of the internal revenue code is modified so that any ownership percentage, rather than 50% ownership, makes a claimant subject to section
267 (a) (1) of the internal revenue code for purposes of this subsection.
71.07(2dL)(b)
(b) No credit is allowed under this subsection for property which is the basis for a credit under
sub. (2di).
71.07(2dL)(bm)
(bm) In calculating the credit under
par. (a) a claimant shall reduce the amount expended to acquire property by a percentage equal to the percentage of the area of the real property not used for the purposes for which the claimant is certified to claim tax benefits under
s. 560.765 (3) and shall reduce the amount expended for other purposes by the amount expended on the part of the property not used for the purposes for which the claimant is certified to claim tax benefits under
s. 560.765 (3).
71.07(2dL)(c)1.1. Except as provided under
subd. 2., the credit under
par. (a), including any credits carried over, may be offset only against the amount of the tax otherwise due under this chapter attributable to income from the business operations of the claimant in the development zone and against the tax attributable to income from directly related business operations.
71.07(2dL)(c)2.
2. If the claimant is located on an Indian reservation, as defined in
s. 560.86 (5), and is an American Indian, as defined in
s. 560.86 (1), an Indian business, as defined in
s. 560.86 (4), or a tribal enterprise, as defined in
sub. (2di) (b) 2., and if the allowable amount of the credit under
par. (a) exceeds the taxes otherwise due under this chapter on or measured by the claimant's income, the amount of the credit not used as an offset against those taxes shall be certified to the department of administration for payment to the claimant by check, share draft or other draft.
71.07(2dL)(d)
(d) Except as provided in
par. (c) 2., the carry-over provisions of
s. 71.28 (4) (e) and
(f) as they relate to the credit under
s. 71.28 (4) relate to the credit under this subsection and apply as if the development zone continued to exist.
71.07(2dL)(e)
(e) Partnerships, limited liability companies and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, that credit shall be determined on the basis of their economic activity, not that of their shareholders, partners or members. The corporation, partnership or limited liability company shall compute the amount of credit that may be claimed by each of its shareholders, partners or members and provide that information to its shareholders, partners or members. Partners, members of limited liability companies and shareholders of tax-option corporations may claim the credit based on the partnership's, company's or corporation's activities in proportion to their ownership interest and may offset it against the tax attributable to their income from the partnership's, company's or corporation's business operations in the development zone and against the tax attributable to their income from the partnership's, company's or corporation's directly related business operations.
71.07(2dL)(f)
(f) Subsection (2di) (d),
(f) and
(g) as it applies to the credit under that subsection applies to the credit under this subsection.
71.07(2dr)
(2dr) Development zones research credit. 71.07(2dr)(a)(a)
Credit. Any person may credit against taxes otherwise due under this chapter an amount equal to 5% of the amount obtained by subtracting from the person'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. VI of ch. 560 and except that "qualified research expenses" do not include compensation used in computing the credit under
sub. (2dj) nor research expenses incurred before the claimant is certified for tax benefits under
s. 560.765 (3), the person'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. 71.04 (7) (b) 1. and
2. and
(d) and research expenses used in calculating the base amount include research expenses incurred before the claimant is certified for tax benefits under
s. 560.765 (3), 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. 560.765 (3) and a statement from the department of commerce 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. (2di) (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.
71.07(2dr)(b)
(b)
Development opportunity zones. The development zones research credit under
par. (a), as it applies to a person certified under
s. 560.765 (3), applies to a person that conducts economic activity in a development opportunity zone under
s. 560.795 (1) and that is entitled to tax benefits under
s. 560.795 (3), subject to the limits under
s. 560.795 (2). A development opportunity zone credit under this paragraph may be calculated using expenses incurred by a claimant beginning on the effective date under
s. 560.795 (2) (a) of the development opportunity zone designation of the area in which the claimant conducts economic activity.
71.07(2dr)(bm)
(bm)
Adjustments. Adjustments for acquisitions and dispositions of a major portion of a trade or business shall be made under section
41 of the internal revenue code as limited by this subsection.
71.07(2dr)(c)
(c)
Annualization. In the case of any short taxable year, qualified research expenses shall be annualized as prescribed by the department of revenue.
71.07(2dr)(d)
(d)
Proration. If a portion of qualified research expenses is incurred partly within and partly outside this state and the amount incurred in this state cannot be accurately determined, a portion of the qualified expenses shall be reasonably allocated to this state. Expenses incurred entirely outside this state for the benefit of research in this state are not allocable to this state under this paragraph.
71.07(2dr)(e)
(e)
Change of business or ownership. In the case of a change in ownership or business of a person, section
383 of the internal revenue code, as limited by this subsection, applies to the carry-over of unused credits.
71.07(2dr)(f)
(f)
Carry-over. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 15 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.
71.07(2dr)(g)
(g)
Administration. The department of revenue has full power to administer the credits provided in this subsection and may take any action, conduct any proceeding and proceed as it is authorized in respect to income and franchise taxes imposed in this chapter. The income and franchise tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest and penalties apply to the credits under this subsection.
71.07(2dr)(h)
(h)
Timely claim. No credit may be allowed under this subsection unless it is claimed within the period specified in
s. 71.75 (2).
71.07(2ds)
(2ds) Development zones sales tax credit. 71.07(2ds)(a)2.
2. "Eligible property" means construction materials and supplies and other materials that are used to construct, rehabilitate, repair or remodel real property that is eligible for the credit under
sub. (2dL) and investment credit property.
71.07(2ds)(a)3.
3. "Investment credit property" means depreciable, tangible personal property that is eligible for the credit under
sub. (2di) and leased or rented depreciable, tangible personal property that would be eligible for the credit under
sub. (2di) if it had been purchased.
71.07(2ds)(b)
(b) Except as provided in
pars. (dm) and
(e) and
s. 73.03 (35), for any taxable year for which the person is certified under
s. 560.765 (3) for tax benefits, any person may claim as a credit against taxes otherwise due under this chapter the taxes paid under
subchs. III and
V of ch. 77 on their purchases, leases and rentals of eligible property. Partnerships, limited liability companies and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, that credit shall be determined on the basis of their economic activity, not that of their partners, members or shareholders. The partnership, limited liability company or corporation shall compute the amount of credit that may be claimed by each of its partners, members or shareholders and shall provide that information to each of its partners, members or shareholders. Partners, members of a limited liability company and shareholders of tax-option corporations may claim the credit based on the partnership's, company's or corporation's activities in proportion to their ownership interest.
71.07(2ds)(d)
(d) No credit may be allowed under this subsection unless the claimant submits with the claimant's return:
71.07(2ds)(d)2.
2. A statement from the department of commerce verifying the amount of taxes paid under
subchs. III and
V of ch. 77 for eligible property by the claimant.
71.07(2ds)(dm)
(dm) In calculating the credit under
par. (b) a claimant shall reduce the sales tax paid for building supplies and materials by the reduction under
sub. (2dL) (bm) and shall reduce the sales tax paid for investment credit property by the percentage reduction under
sub. (2di) (dm).
71.07(2ds)(e)
(e) The rules under
sub. (2di) (f) and
(g) as they apply to the credit under that subsection apply to the credit under this subsection.
71.07(2ds)(h)
(h) The rules under
sub. (2di) (b) and
(c) as they apply to the credit under that subsection apply to the credit under this subsection.
71.07(2fd)
(2fd) Farmers' drought property tax credit. 71.07(2fd)(a)(a)
Credit. Except as provided in
par. (b), if the director of the agriculture stabilization and conservation service certifies on or before October 1, 1988, that at least 40% of the crops in this state have been lost, for taxable year 1988 any claimant may credit against taxes otherwise due under this chapter an amount equal to 10% of the property taxes exclusive of special assessments, delinquent interest and charges for service, up to $10,000, on that claimant's farm for the year for which the claim under this subsection is made. In this subsection, "farm" means 35 or more acres of real property in this state owned by the claimant or any member of the claimant's household during the taxable year for which a credit under this subsection is claimed if the farm, during that year, produced not less than $6,000 in gross farm profits resulting from the farm's agricultural use, as defined in
s. 91.01 (1), or if the farm, during that year and the 2 years immediately preceding that year, produced not less than $18,000 in such profits. In deciding who is a claimant under this subsection, the department of revenue shall be guided by
s. 71.58 (1) (a) to
(g).
71.07(2fd)(b)
(b)
Limits. The credit under this subsection plus the credit under
subch. IX may not exceed 95% of the property taxes on the farm. A claimant may claim the credit under this subsection on only one return if the claimant files more than one return for taxable year 1988 and may not claim the credit on a return filed for any 1988 taxable year beginning after July 31, 1988.
71.07(2fd)(c)
(c)
Form. No claim under this subsection may be allowed unless the claimant completes a form prescribed by the department of revenue and submits that form with the claimant's income or franchise tax return and within 12 months following the close of the taxable year in which the property taxes accrued.
71.07(2fd)(d)
(d)
Payment. If the allowable amount of the claim under this subsection exceeds the income or franchise taxes otherwise due on or measured by the claimant's income or if there are no income or franchise taxes due on or measured by the claimant's income, the amount of the claim not used as an offset against those taxes shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft or other draft drawn on the general fund. No interest may be allowed on any payment under this subsection.
71.07(3)
(3) Farmland preservation credit. The farmland preservation credit under
subch. IX may be claimed against taxes otherwise due.
71.07(3m)(a)1.
1. "Claimant" means an owner of farmland, as defined in
s. 91.01 (9), domiciled in this state during the entire year for which a credit under this subsection is claimed, except as follows:
71.07(3m)(a)1.a.
a. When 2 or more individuals of a household are able to qualify individually as a claimant, they may determine between them who the claimant shall be. If they are unable to agree, the matter shall be referred to the secretary of revenue, whose decision is final.
71.07(3m)(a)1.b.
b. For partnerships except publicly traded partnerships treated as corporations under
s. 71.22 (1), or limited liability companies, except limited liability companies treated as corporations under
s. 71.22 (1), "claimant" means each individual partner or member.
71.07(3m)(a)1.c.
c. For purposes of filing a claim under this subsection, the personal representative of an estate and the trustee of a trust shall be deemed owners of farmland. "Claimant" does not include the estate of a person who is a nonresident of this state on the person's date of death, a trust created by a nonresident person, a trust which receives Wisconsin real property from a nonresident person or a trust in which a nonresident settlor retains a beneficial interest.
71.07(3m)(a)1.d.
d. For purposes of filing a claim under this subsection, when land is subject to a land contract, the claimant shall be the vendee under the contract.
71.07(3m)(a)1.e.
e. For purposes of filing a claim under this subsection, when a guardian has been appointed under
ch. 880 for a ward who owns the farmland, the claimant shall be the guardian on behalf of the ward.
71.07(3m)(a)1.f.
f. For a tax-option corporation, "claimant" means each individual shareholder.
71.07(3m)(a)3.
3. "Farmland" means 35 or more acres of real property, exclusive of improvements, in this state, in agricultural use, as defined in
s. 91.01 (1), and owned by the claimant or any member of the claimant's household during the taxable year for which a credit under this subsection is claimed if the farm of which the farmland is a part, during that year, produced not less than $6,000 in gross farm profits resulting from agricultural use, as defined in
s. 91.01 (1), or if the farm of which the farmland is a part, during that year and the 2 years immediately preceding that year, produced not less than $18,000 in such profits, or if at least 35 acres of the farmland, during all or part of that year, was enrolled in the conservation reserve program under
16 USC 3831 to
3836.
71.07(3m)(a)4.
4. "Gross farm profits" means gross receipts, excluding rent, from agricultural use, as defined in
s. 91.01 (1) including the fair market value at the time of disposition of payments in kind for placing land in federal programs or payments from the federal dairy termination program under
7 USC 1446 (d), less the cost or other basis of livestock or other items purchased for resale which are sold or otherwise disposed of during the taxable year.
71.07(3m)(a)5.
5. "Household" means an individual and his or her spouse and all minor dependents.
71.07(3m)(a)6.
6. "Property taxes accrued" means property taxes, exclusive of special assessments, delinquent interest and charges for service, levied on the farmland owned by the claimant or any member of the claimant's household in any calendar year under
ch. 70, less the tax credit, if any, afforded in respect of the property by
s. 79.10. "Property taxes accrued" shall not exceed $10,000. If farmland is owned by a tax-option corporation, limited liability company or by 2 or more persons or entities as joint tenants, tenants in common or partners or is marital property or survivorship marital property and one or more such persons, entities or owners is not a member of the claimant's household, "property taxes accrued" is that part of property taxes levied on the farmland, reduced by the tax credit under
s. 79.10, that reflects the ownership percentage of the claimant and the claimant's household. For purposes of this subdivision, property taxes are "levied" when the tax roll is delivered to the local treasurer for collection. If farmland is sold during the calendar year of the levy the "property taxes accrued" for the seller is the amount of the tax levy, reduced by the tax credit under
s. 79.10, prorated to each in the closing agreement pertaining to the sale of the farmland, except that if the seller does not reimburse the buyer for any part of those property taxes there are no "property taxes accrued" for the seller, and the "property taxes accrued" for the buyer is the property taxes levied on the farmland, reduced by the tax credit under
s. 79.10, minus, if the seller reimburses the buyer for part of the property taxes, the amount prorated to the seller in the closing agreement. With the claim for credit under this subsection, the seller shall submit a copy of the closing agreement and the buyer shall submit a copy of the closing agreement and a copy of the property tax bill.
71.07(3m)(b)1.a.a. Subject to the limitations provided in this subsection and
s. 71.80 (3) and
(3m), a claimant may claim as a credit against Wisconsin income taxes otherwise due, the amount derived under
par. (c). If the allowable amount of claim exceeds the income taxes otherwise due on the claimant's income or if there are no Wisconsin income taxes due on the claimant's income, the amount of the claim not used as an offset against income taxes shall be certified to the department of administration for payment to the claimant by check, share draft or other draft paid from the appropriation under
s. 20.835 (2) (q).
71.07(3m)(b)1.b.
b. Every claimant under this subsection shall supply, at the request of the department, in support of the claim, a copy of the property tax bill relating to the farmland and certification by the claimant that all taxes owed by the claimant on the property for which the claim is made for the year before the year for which the claim is made have been paid.
71.07(3m)(b)2.
2. Ineligible claims. No credit may be allowed under this subsection:
71.07(3m)(b)2.b.
b. If the department determines that ownership of the farmland has been transferred to the claimant for the purpose of maximizing benefits under this subsection.
71.07(3m)(c)1.1. Any claimant may claim against taxes otherwise due under this chapter 10% of the property taxes accrued in the taxable year to which the claim relates, up to a maximum claim of $1,000, except that the credit under this subsection plus the credit under
subch. IX may not exceed 95% of the property taxes accrued on the farm.
71.07(3m)(c)2.
2. Any claimant may claim against taxes otherwise due under this chapter, on an income or franchise tax return that includes the levy date, an additional one-time credit of 4.2% of the property taxes accrued, that are levied in December 1989, up to a maximum of $420.
71.07(3m)(d)
(d)
General provisions. Section 71.61 (1) to
(4) as it applies to the credit under
subch. IX applies to the credit under this subsection.
71.07(4)
(4) Homestead credit. The homestead credit under
subch. VIII may be claimed by individuals against taxes otherwise due.
71.07(5)
(5) Itemized deductions credit. Single persons, married persons filing separately and married persons filing jointly may claim as a credit against, but not to exceed the amount of, Wisconsin net income taxes due an amount calculated as follows:
71.07(5)(a)
(a) Add the amounts allowed as itemized deductions under the internal revenue code except:
71.07(5)(a)1.
1. Interest paid to purchase or hold securities issued by the federal government or by any of its instrumentalities the interest on which is exempt from taxation under
s. 71.05 (6) (b) 1.
71.07(5)(a)3.
3. Casualty and theft deductions under section
165 (c) (3) of the internal revenue code.
71.07(5)(a)4.
4. Expenses to move from this state under section
217 of the internal revenue code.
71.07(5)(a)5.
5. Interest incurred to purchase or refinance a residence that is not a principal residence and is not in this state, and interest incurred to purchase or refinance a residence that is a boat.
71.07(5)(a)6.
6. The amount claimed for repayment of income previously taxed under this chapter if that amount is used in calculating the credit under
sub. (1).
71.07(5)(a)7.
7. The amount claimed as a deduction for unreimbursed medical care expenses under section
213 (a) of the internal revenue code to the extent that the funds used to pay for the unreimbursed expenses for which the deduction was claimed were withdrawn from an account described under
s. 71.05 (6) (b) 22. [24.].
71.07 Note
NOTE: The correct cross-reference is shown in brackets. Corrective legislation is pending.
71.07(5)(a)15.
15. The amount claimed as a deduction for medical care insurance under section
213 of the internal revenue code that is exempt from taxation under
s. 71.05 (6) (b) 17. to
20.
