71.28(1dx)(a)3.
3. "Environmental remediation" means removal or containment of environmental pollution, as defined in
s. 299.01 (4), and restoration of soil or groundwater that is affected by environmental pollution, as defined in
s. 299.01 (4), in a brownfield if that removal, containment or restoration fulfills the requirement under
sub. (1de) (a) 1. and investigation unless the investigation determines that remediation is required and that remediation is not undertaken.
71.28(1dx)(a)4.
4. "Full-time job" means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay that is equal to at least 150% of the federal minimum wage and receives benefits that are not required by federal or state law. "Full-time job" does not include initial training before an employment position begins.
71.28(1dx)(a)5.
5. "Member of a targeted group" means a person under
sub. (1dj) (am) 1., a person who resides in an empowerment zone, or an enterprise community, that the U.S. government designates, a person who is employed in an unsubsidized job but meets the eligibility requirements under
s. 49.145 (2) and
(3) for a Wisconsin works employment position, a person who is employed in a trial job, as defined in
s. 49.141 (1) (n), or a person who is eligible for child care assistance under
s. 49.155; if the person has been certified in the manner under
sub. (1dj) (am) 3. by a designated local agency, as defined in
sub. (1dj) (am) 2.
71.28(1dx)(b)
(b)
Credit. Except as provided in
s. 73.03 (35) and subject to
s. 560.785, for any taxable year for which the person is certified under
s. 560.765 (3), any person may claim as a credit against taxes under this subchapter the following amounts:
71.28(1dx)(b)1.
1. Fifty percent of the amount expended for environmental remediation in a development zone.
71.28(1dx)(b)2.
2. The amount determined by multiplying the amount determined under
s. 560.785 (1) (b) by the number of full-time jobs created in a development zone and filled by a member of a targeted group and by then subtracting the subsidies paid under
s. 49.147 (3) (a) for those jobs.
71.28(1dx)(b)3.
3. The amount determined by multiplying the amount determined under
s. 560.785 (1) (c) by the number of full-time jobs created in a development zone and not filled by a member of a targeted group and by then subtracting the subsidies paid under
s. 49.147 (3) (a) for those jobs.
71.28(1dx)(b)4.
4. The amount determined by multiplying the amount determined under
s. 560.785 (1) (b) by the number of full-time jobs retained, as provided in the rules under
s. 560.785, excluding jobs for which a credit has been claimed under
sub. (1dj), in a development zone and filled by a member of a targeted group and by then subtracting the subsidies paid under
s. 49.147 (3) (a) for those jobs.
71.28(1dx)(b)5.
5. The amount determined by multiplying the amount determined under
s. 560.785 (1) (c) by the number of full-time jobs retained, as provided in the rules under
s. 560.785, excluding jobs for which a credit has been claimed under
sub. (1dj), in a development zone and not filled by a member of a targeted group and by then subtracting the subsidies paid under
s. 49.147 (3) (a) for those jobs.
71.28(1dx)(c)
(c)
Credit precluded. If the certification of a person for tax benefits under
s. 560.765 (3) is revoked, that person may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked or succeeding taxable years and that person may not carry over unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which certification is revoked or succeeding taxable years.
71.28(1dx)(d)
(d)
Carry-over precluded. If a person who is certified under
s. 560.765 (3) for tax benefits ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.
71.28(1dx)(e)
(e)
Administration. Subsection (4) (e) to
(h), as it applies to the credit under
sub. (4), applies to the credit under this subsection.
Subsection (1dj) (c), as it applies to the credit under
sub. (1dj), 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 department of commerce's verification of their expenses.
71.28(1fd)
(1fd) Farmers' drought property tax credit. 71.28(1fd)(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).
71.28(1fd)(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.
71.28(1fd)(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.
71.28(1fd)(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.
71.28(1fd)(e)
(e)
Administration. Subsection (4) (g), as it applies to the credit under
sub. (4), applies to the credit under this subsection.
71.28(2)
(2) Farmland preservation credit. The farmland preservation credit under
subch. IX may be claimed against taxes otherwise due subject to the provisions, requirements and conditions of that subchapter.
71.28(2m)(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:
71.28(2m)(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.
71.28(2m)(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.
71.28(2m)(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.
71.28(2m)(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.
71.28(2m)(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.
71.28(2m)(a)1.f.
f. For a tax-option corporation, "claimant" means each individual shareholder.
71.28(2m)(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.
71.28(2m)(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.
71.28(2m)(a)5.
5. "Household" means an individual and his or her spouse and all minor dependents.
71.28(2m)(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, a 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.
71.28(2m)(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 or franchise taxes otherwise due, the amount derived under
par. (c). If the allowable amount of claim exceeds the income or franchise taxes otherwise due on or measured by the claimant's income or if there are no Wisconsin income or franchise taxes due on or measured by the claimant's income, the amount of the claim not used as an offset against income or franchise 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).
71.28(2m)(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.
71.28(2m)(b)2.
2. `Ineligible claims.' No credit may be allowed under this subsection:
71.28(2m)(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.
71.28(2m)(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.
71.28(2m)(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.
71.28(2m)(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.
71.28(3)
(3) Manufacturing sales tax credit. 71.28(3)(a)2.
2. "Sales and use tax under
ch. 77 paid by the corporation" includes use taxes paid directly by the corporation and sales and use taxes paid by the corporation's supplier and passed on to the corporation whether separately stated on the invoice or included in the total price.
71.28(3)(b)
(b) The tax imposed upon or measured by corporation Wisconsin net income under
s. 71.23 (1) or
(2) shall be reduced by an amount equal to the sales and use tax under
ch. 77 paid by the corporation in such taxable year on fuel and electricity consumed in manufacturing tangible personal property in this state. Shareholders of a tax-option corporation and partners may claim the credit under this subsection, based on eligible sales and use taxes paid by the tax-option corporation or partnership, in proportion to the ownership interest of each shareholder or partner. The tax-option corporation or partnership shall calculate the amount of the credit that may be claimed by each shareholder or partner and shall provide that information to the shareholder or partner.
71.28(3)(c)1.1. If the credit computed under
par. (b) is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance shall 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.
71.28(3)(c)2.
2. For shareholders in a tax-option corporation, the credit may be offset only against the tax imposed on the shareholder's prorated share of the tax-option corporation's income.
71.28(3)(c)3.
3. For partners, the credit may be offset only against the tax imposed on the partner's distributive share of partnership income.
71.28(3)(c)4.
4. If a tax-option corporation becomes liable for tax for a taxable year that begins on or after January 1, 1998, the corporation may offset the credit against the tax due, with any remaining credit computed for a taxable year that begins on or after January 1, 1998, passing through to the shareholders.
71.28(3)(c)5.
5. If a corporation that is not a tax-option corporation has a carry-over credit from a taxable year that begins on or after January 1, 1998, and becomes a tax-option corporation before the credit carried over is used, the unused portion of the credit may be used by the tax-option corporation's shareholders on a prorated basis.
71.28(3)(c)6.
6. If the shareholders of a tax-option corporation have carry-over credits and the corporation becomes a corporation other than a tax-option corporation after October 14, 1997, and before the credits carried over are used, the unused portion of the credits may be used by the corporation that is not a tax-option corporation.
71.28(4)(a)(a)
Credit. Any corporation may credit against taxes otherwise due under this chapter an amount equal to 5% 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 and except that "qualified research expenses" does not include compensation used in computing the credit under
subs. (1dj) and
(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. and
(d). Section
41 (h) of the internal revenue code does not apply to the credit under this paragraph.
71.28(4)(am)
(am)
Development zone additional research credit. 71.28(4)(am)1.1. In addition to the credit under
par. (a), any corporation may credit against taxes otherwise due under this chapter an amount equal to 5% 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. VI of ch. 560, 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. 560.765 (3), 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. 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 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.
71.28(4)(am)2.
2. The development zones credit under
subd. 1., as it applies to a person certified under
s. 560.765 (3), applies to a corporation 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 subdivision 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.
71.28(4)(am)3.
3. 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, and thereafter.
71.28(4)(b)
(b)
Adjustments. For taxable year 1985 and subsequent years, 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.
71.28(4)(c)
(c)
Annualization. In the case of any short taxable year, qualified research expenses shall be annualized as prescribed by the department of revenue.
71.28(4)(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.
71.28(4)(e)
(e)
Change of business or ownership. In the case of a change in ownership or business of a corporation, section
383 of the internal revenue code, as limited by this subsection, applies to the carry-over of unused credits.
71.28(4)(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.
71.28(4)(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.
71.28(4)(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).
71.28(4)(i)
(i)
Nonclaimants. The credits under this subsection may not be claimed by a partnership, except a publicly traded partnership treated as a corporation under
s. 71.22 (1), limited liability company, except a limited liability company treated as a corporation under
s. 71.22 (1), or tax-option corporation or by partners, including partners of a publicly traded partnership, members of a limited liability company or shareholders of a tax-option corporation.
71.28(5)
(5) Research facilities credit. 71.28(5)(a)(a)
Credit. For taxable year 1986 and subsequent years, any corporation may credit against taxes otherwise due under this chapter an amount equal to 5% of the amount paid or incurred by that corporation during the taxable year to construct and equip new facilities or expand existing facilities used in this state for qualified research, as defined in section
41 of the internal revenue code. Eligible amounts include only amounts paid or incurred for tangible, depreciable property but do not include amounts paid or incurred for replacement property.
71.28(5)(b)
(b)
Calculation and administration. Subsection (4) (b) to
(i) as it relates to the credit under that subsection applies to the credit under this subsection.
71.28(6)
(6) Supplement to federal historic rehabilitation credit. 71.28(6)(a)(a) Any person may credit against taxes otherwise due under this chapter, up to the amount of those taxes, an amount equal to 5% of the costs of qualified rehabilitation expenditures, as defined in section
47 (c) (2) of the internal revenue code, for certified historic structures on property located in this state if the physical work of construction or destruction in preparation for construction begins after December 31, 1988, and the rehabilitated property is placed in service after June 30, 1989.
71.28(6)(c)
(c) No person may claim the credit under this subsection unless the claimant includes with the claimant's return evidence that the rehabilitation was approved by the secretary of the interior under
36 CFR 67.6 before the physical work of construction, or destruction in preparation for construction, began.
71.28(6)(d)
(d) The Wisconsin adjusted basis of the building shall be reduced by the amount of any credit awarded under this subsection. The Wisconsin adjusted basis of a partner's interest in a partnership, of a member's interest in a limited liability company or of stock in a tax-option corporation shall be adjusted to take into account adjustments made under this paragraph.
71.28(6)(e)
(e) The provisions of
sub. (4) (e),
(f),
(g) and
(h), as they apply to the credit under that subsection, apply to the credit under this subsection.
71.28(6)(f)
(f) A partnership, limited liability company or tax-option corporation may not claim the credit under this section. The individual partners, members of a limited liability company or shareholders in a tax-option corporation may claim the credit under this subsection based on eligible costs incurred by the partnership, limited liability company or tax-option corporation, in proportion to the ownership interest of each partner, member or shareholder. The partnership, limited liability company or tax-option corporation shall calculate the amount of the credit which may be claimed by each partner, member or shareholder and shall provide that information to the partner, member or shareholder.
71.28 History
History: 1987 a. 312;
1987 a. 411 ss.
88,
130 to
139;
1987 a. 422;
1989 a. 31,
44,
56,
100,
336,
359;
1991 a. 39,
292;
1993 a. 16,
112,
232,
491;
1995 a. 2;
1995 a. 27 ss.
3399r to
3404c,
9116 (5);
1995 a. 209,
227;
1997 a. 27,
41,
237,
299.
71.29
71.29
Payments of estimated taxes. 71.29(1)
(1)
Definitions. In this section:
71.29(1)(a)
(a) "Return" means a return that would show the tax properly due.
71.29(1)(b)
(b) "Tax shown on the return" and "tax for the taxable year" mean the net taxes imposed under
s. 71.23 (1) or
(2) after reduction for credits against those taxes but before reduction for amounts paid as estimated tax under this section plus the surcharge imposed under
s. 77.93 before reduction for amounts paid as estimated tax under this section for that surcharge.
71.29(1)(c)
(c) "Virtually exempt entity" means any entity, other than a corporation, that is subject to a tax under this chapter on unrelated business taxable income as defined under section
512 of the internal revenue code.
71.29(2)
(2) Who shall pay. Every corporation subject to tax under
s. 71.23 (1) or
(2) and every virtually exempt entity subject to tax under
s. 71.125 or
71.23 (1) or
(2) shall pay an estimated tax.
71.29(3)
(3) Refund carry-forward. If a corporation or virtually exempt entity claims a refund on any tax return and, concurrent with or subsequent to filing the return upon which that refund is claimed, is required to pay an estimated tax, and at the time of paying that tax the refund has not been paid, the corporation or virtually exempt entity may deduct the amount of that refund from the first instalment of estimated taxes and may deduct any excess from the succeeding instalments.
71.29(3m)
(3m) Refunds. The department of revenue may refund estimated taxes after the completion of the taxable year to which the estimated taxes relate if the refund is at least 10% of the taxes estimated for that taxable year and is at least $500. A refund under this subsection may be subject to
s. 71.84 (2) (c).
71.29(4)
(4) Prepayments. Any instalment of the estimated tax under this section may be paid before the due date.
