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:
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) (bm) 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 an enterprise development zone under
s. 560.797 and for which significant capital investment was made 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) or
560.797 (4) is revoked, or if the person becomes ineligible for tax benefits under
s. 560.795 (3), that person may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; 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; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years.
71.28(1dx)(d)
(d)
Carry-over precluded. If a person who is entitled under
s. 560.795 (3) to claim tax benefits or certified under
s. 560.765 (3) or
560.797 (4) 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 appropriations under
s. 20.835 (2) (dn) and
(ka).
Effective date note
NOTE: Subdpar. a. is repealed and recreated eff. the effective date of the 2001 budget by
1999 Wis. Act 9 to read:
71.28 Note
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 appropriations under s. 20.835 (2) (ka) and (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 a percentage, as determined by the department under
subd. 3., of the property taxes accrued in the taxable year to which the claim relates, up to a maximum claim of $1,500, 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)(c)3.
3. The department shall annually adjust the percentage that is used to determine the amount of a claim under
subd. 1. based on the estimated number of claims and the amount estimated to be expended from the appropriation under
s. 20.835 (2) (dn), as determined under
s. 79.13. The department shall incorporate the annually adjusted percentage into the income tax forms and instructions.
