71.28(1di)(a)4.
4. No credit is allowed under this subsection for property which is the basis for a credit under
sub. (1dL).
71.28(1di)(b)1.1. Except as provided in
subd. 2., the credit, 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 of the claimant.
71.28(1di)(b)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
s. 71.07 (2di) (b) 2., and if the allowable amount of the credit under this subsection 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.
71.28(1di)(b)3.
3. Partnerships, limited liability companies and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and 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 the credit that may be claimed by each of its shareholders, partners or members and shall provide that information to each of 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.
71.28(1di)(c)
(c) Except as provided in
par. (b) 2., the carry-over provisions of
sub. (4) (e) and
(f) as they relate to the credit under that subsection relate to the credit under this subsection and apply as if the development zone continued to exist.
71.28(1di)(d)
(d) No credit may be allowed under this subsection unless the claimant includes with the claimant's return:
71.28(1di)(d)1.
1. A copy of a verification from the department of commerce that the claimant may claim tax benefits under
s. 560.795 (3).
71.28(1di)(d)2.
2. A statement from the department of commerce verifying the purchase price of the investment and verifying that the investment fulfills the requirements under
par. (a).
71.28(1di)(dm)
(dm) In calculating the credit under
par. (a), a claimant shall reduce the purchase price of the property by a percentage equal to the percentage of use of the property during the taxable year the property is first placed into service that is for a purpose not specified under
par. (a) 1.
71.28(1di)(e)
(e) The recapture provisions under section
47 (a) (5) of the internal revenue code as amended to December 31, 1985, as they apply to the credit under section
46 of the internal revenue code, apply to the credit under this subsection, except that those provisions also apply if the property for which the credit is claimed is moved out of the development zone or, for mobile property, if the base of operations is moved out of the zone and except that the determination of whether or not property is 3-year property shall be made under section
168 of the internal revenue code.
71.28(1di)(f)
(f) If a person who is entitled under
s. 560.795 (3) to claim tax benefits becomes ineligible for such tax benefits, that person may claim no credits under this subsection for the taxable year that includes the day on which the person becomes ineligible for tax benefits or succeeding taxable years and that person may carry over no unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which the person becomes ineligible for tax benefits or succeeding taxable years.
71.28(1di)(g)
(g) If a person who is entitled under
s. 560.795 (3) to claim 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(1di)(h)
(h) Subsection (4) (g) and
(h) as it applies to the credit under that subsection applies to the credit under this subsection.
71.28(1di)(i)
(i) The development zones credit under this subsection, 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 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.
71.28(1di)(j)
(j) No credit may be claimed under this subsection for taxable years that begin after December 31, 1997, and end before January 1, 2000. Credits under this subsection for taxable years that begin before January 1, 1998, may be carried forward to taxable years that begin on January 1, 1998, or thereafter.
71.28(1dj)(am)(am) Except as provided under
par. (f) or
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 an amount calculated as follows:
71.28(1dj)(am)1.
1. Modify "member of a targeted group", as defined in section
51 (d) of the internal revenue code as amended to December 31, 1995, to include persons unemployed as a result of a business action subject to
s. 109.07 (1m) and dislocated workers, as defined in
29 USC 2801 (9), and to require a member of a targeted group to be a resident of this state.
71.28(1dj)(am)2.
2. Modify "designated local agency", as defined in section
51 (d) (15) of the internal revenue code, to include the local workforce development board established under
29 USC 2832 for the area that includes the development zone in which the employee in respect to whom the credit under this subsection is claimed works, if the department of commerce approves the criteria used for certification, and the department of commerce.
71.28(1dj)(am)3.
3. Modify the rule for certification under section
51 (d) (16) (A) of the internal revenue code to allow certification within the period beginning with the first day of employment of the employee.
71.28(1dj)(am)4.a.a. If certified under
s. 560.765 (3) for tax benefits before January 1, 1992, modify "qualified wages" as defined in section
51 (b) of the internal revenue code to exclude wages paid before the claimant is certified for tax benefits and to exclude wages that are paid to employees for work at any location that is not in a development zone under
subch. VI of ch. 560. For purposes of this
subd. 4. a., mobile employees work at their base of operations and leased or rented employees work at the location where they perform services.
71.28(1dj)(am)4.b.
b. If certified under
s. 560.765 (3) for tax benefits after December 31, 1991, modify "qualified wages" as defined in section
51 (b) of the internal revenue code to exclude wages paid before the claimant is certified for tax benefits and to exclude wages that are paid to employees for work at any location that is not in a development zone under
subch. VI of ch. 560. For purposes of this
subd. 4. b., mobile employees and leased or rented employees work at their base of operations.
71.28(1dj)(am)4c.
4c. Modify the rule for ineligible individuals under section
51 (i) (1) of the internal revenue code to allow credit for the wages of related individuals paid by an Indian business, as defined in
s. 560.86 (4), or a tribal enterprise, as defined in
s. 71.07 (2di) (b) 2., if the Indian business or tribal enterprise is located in a development zone designated under
s. 560.71 (3) (c) 2.
71.28(1dj)(am)4e.
4e. Modify section
51 (c) (2) of the internal revenue code to specify that the rules for on-the-job training and work supplementation payments also apply to those kinds of payments funded by this state.
71.28(1dj)(am)4h.
4h. Modify section
51 (a) of the internal revenue code so that the amount of the credit is 25% of the qualified first-year wages if the wages are paid to an applicant for a Wisconsin works employment position for service either in an unsubsidized position or in a trial job under
s. 49.147 (3) and so that the amount of the credit is 20% of the qualified first-year wages if the wages are not paid to such an applicant.
71.28(1dj)(am)4i.
4i. Modify section
51 (b) (3) of the internal revenue code so that the amount of the qualified first-year wages that may be taken into account is $13,000.
71.28(1dj)(am)4m.
4m. Modify the rule on remuneration under section
51 (f) of the internal revenue code so that it does not apply to persons who are exempt from tax under this chapter.
71.28(1dj)(am)4t.
4t. If certified under
s. 560.765 (3) for tax benefits before January 1, 1992, modify section
51 (i) (3) of the internal revenue code so that for leased or rented employees, except employees of a leasing agency certified for tax benefits who perform services directly for the agency in a development zone, the minimum employment periods apply to the time that they perform services in a development zone for a single lessee or renter, not to their employment by the leasing agency.
71.28(1dj)(am)6.
6. For persons for whom a credit may be claimed under
subd. 5., modify "qualified wages" under section
51 (b) of the internal revenue code so that those wages are based on the wages attributable to service rendered during the one-year period beginning with the date one year after the date on which the individual begins work for the employer.
71.28(1dj)(am)8.
8. Calculate the credit under section
51 of the internal revenue code based on qualified wages for the 2nd year as determined under
subds. 6. and
7.
71.28(1dj)(am)8m.
8m. For each person, whether or not he or she is a member of a targeted group, who is determined by the department of commerce to be a resident of the development zone in which he or she is employed, calculate a credit equal to 10% of the wages earned by such person during the 1st and 2nd years of the person's employment in the development zone, up to a maximum credit of $600 per year.
71.28(1dj)(b)
(b) In computing the credit under this subsection, the wages of leased or rented employees may be claimed only by their employer, not by the person to whom they are rented or leased.
71.28(1dj)(c)
(c) The credit under this subsection may not be claimed by partnerships, limited liability companies and tax-option corporations 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 shall provide that information to each of its shareholders, partners or members. That credit may be claimed by partners, members of limited liability companies and shareholders of tax-option corporations in proportion to their ownership interests.
71.28(1dj)(e)
(e) No credit may be allowed under this subsection unless the claimant includes with the claimant's return:
71.28(1dj)(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 employees were hired for work only in a development zone or are mobile employees whose base of operations is in a development zone.
71.28(1dj)(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 employees were hired for work only in a development zone or are mobile employees or leased or rented employees whose base of operations is in a development zone.
71.28(1dj)(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.
71.28(1dj)(f)
(f) The rules under
sub. (1di) (f) and
(g) as they apply to the credit under that subsection apply to the credit under this subsection.
71.28(1dj)(g)
(g) Subsection (4) (g) and
(h) as it applies to the credit under that subsection applies to the credit under this subsection.
71.28(1dj)(h)
(h) The rules under
sub. (1di) (b) and
(c) as they apply to the credit under that subsection apply to the credit under this subsection.
71.28(1dj)(i)
(i) The development zones credit under this subsection, 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 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.
71.28(1dj)(j)
(j) No credit may be claimed under this subsection for taxable years that begin on January 1, 1998, or thereafter. Credits under this subsection for taxable years that begin before January 1, 1998, may be carried forward to taxable years that begin on January 1, 1998, or thereafter.
71.28(1dL)
(1dL) Development zones location credit. 71.28(1dL)(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.
71.28(1dL)(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.
71.28(1dL)(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.
71.28(1dL)(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.
71.28(1dL)(b)
(b) No credit is allowed under this subsection for property which is the basis for a credit under
sub. (1di).
71.28(1dL)(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).
71.28(1dL)(c)1.1. Except as provided in
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.
71.28(1dL)(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
s. 71.07 (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.
71.28(1dL)(d)
(d) Except as provided in
par. (c) 2., the carry-over provisions of
sub. (4) (e) and
(f) as they relate to the credit under that subsection relate to the credit under this subsection and apply as if the development zone continued to exist.
71.28(1dL)(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.
71.28(1dL)(f)
(f) Subsection (1di) (d),
(f) and
(g) as it applies to the credit under that subsection applies to the credit under this subsection.
71.28(1dL)(g)
(g) Subsection (4) (g) and
(h) as it applies to the credit under that subsection applies to the credit under this subsection.
71.28(1dL)(i)
(i) The development zones credit under this subsection, 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 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.
71.28(1dL)(j)
(j) No credit may be claimed under this subsection for taxable years that begin on January 1, 1998, or thereafter. Credits under this subsection for taxable years that begin before January 1, 1998, may be carried forward to taxable years that begin on January 1, 1998, or thereafter.
71.28(1ds)
(1ds) Development zones sales tax credit. 71.28(1ds)(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. (1dL) and investment credit property.
71.28(1ds)(a)3.
3. "Investment credit property" means depreciable, tangible personal property that is eligible for the credit under
sub. (1di) and leased or rented depreciable, tangible personal property that would be eligible for the credit under
sub. (1di) if it had been purchased.
71.28(1ds)(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 its partners, members or shareholders. 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.
71.28(1ds)(d)
(d) No credit may be allowed under this subsection unless the claimant submits with the claimant's return:
71.28(1ds)(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.
71.28(1ds)(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. (1dL) (bm) and shall reduce the sales tax paid for investment credit property by the percentage reduction under
sub. (1di) (dm).
71.28(1ds)(e)
(e) The rules under
sub. (1di) (f) and
(g) as they apply to the credit under that subsection apply to the credit under this subsection.
71.28(1ds)(f)
(f) Subsection (4) (g) and
(h) as it applies to the credit under that subsection applies to the credit under this subsection.
71.28(1ds)(h)
(h) The rules under
sub. (1di) (b) and
(c) as they apply to the credit under that subsection apply to the credit under this subsection.
71.28(1ds)(i)
(i) The development zones credit under this subsection, 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 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.
71.28(1ds)(j)
(j) No credit may be claimed under this subsection for taxable years that begin on January 1, 1998, or thereafter. Credits under this subsection for taxable years that begin before January 1, 1998, may be carried forward to taxable years that begin on January 1, 1998, or thereafter.
71.28(1dx)(a)1.
1. "Brownfield" means an industrial or commercial facility the expansion or redevelopment of which is complicated by environmental contamination.
71.28(1dx)(a)2.
2. "Development zone" means a development zone under
s. 560.70, a development opportunity zone under
s. 560.795 or an enterprise development zone under
s. 560.797.
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 entitled under
s. 560.795 (3) to claim tax benefits or certified under
s. 560.765 (3) or
560.797 (4), any person may claim as a credit against taxes imposed on the person's income from the person's business activities in a development zone under this subchapter the following amounts:
