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 (1k), or limited liability companies, except limited liability companies treated as corporations under
s. 71.22 (1k), "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 in this state 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 appropriations under
s. 20.835 (2) (ka) and
(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 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.
71.07(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)(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) (q), as determined under
s. 79.13. The department shall incorporate the annually adjusted percentage into the income tax forms and instructions.
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(3n)
(3n) Dairy and livestock farm investment credit. 71.07(3n)(a)1.
1. "Claimant" means a person who files a claim under this subsection.
71.07(3n)(a)1m.
1m. "Dairy animals" includes heifers raised as replacement dairy animals.
71.07(3n)(a)1p.
1p. "Dairy farm" includes a facility used to raise heifers as replacement dairy animals.
71.07(3n)(a)2.
2. "Dairy farm modernization or expansion" means the construction, the improvement, or the acquisition of buildings or facilities, or the acquisition of equipment, for dairy animal housing, confinement, animal feeding, milk production, or waste management, including the following, if used exclusively related to dairy animals and if acquired and placed in service in this state during taxable years that begin after December 31, 2003, and before January 1, 2010:
71.07(3n)(a)4.
4. "Livestock" means cattle, not including dairy animals; swine; poultry, including farm-raised pheasants, but not including other farm-raised game birds or ratites; fish that are raised in aquaculture facilities; sheep; and goats.
71.07(3n)(a)5.
5. "Livestock farm modernization or expansion" means the construction, the improvement, or the acquisition of buildings or facilities, or the acquisition of equipment, for livestock housing, confinement, feeding, or waste management, including the following, if used exclusively related to livestock and if acquired and placed in service in this state during taxable years that begin after December 31, 2005, and before January 1, 2012:
71.07(3n)(a)6.a.a. For taxable years that begin after December 31, 2003, and before January 1, 2006, "used exclusively," related to dairy animals, means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.
71.07(3n)(a)6.b.
b. For taxable years that begin after December 31, 2005, and before January 1, 2010, "used exclusively," related to livestock, dairy animals, or both, means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.
71.07(3n)(a)6.c.
c. For taxable years that begin after December 31, 2009, and before January 1, 2012, "used exclusively," related to livestock, means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.
71.07(3n)(b)1.1. Subject to the limitations provided in this subsection, for taxable years that begin after December 31, 2003, and before January 1, 2010, a claimant may claim as a credit against the tax imposed under
ss. 71.02 and
71.08 an amount equal to 10% of the amount the claimant paid in the taxable year for dairy farm modernization or expansion related to the operation of the claimant's dairy farm.
71.07(3n)(b)2.
2. Subject to the limitations provided in this subsection, for taxable years that begin after December 31, 2005, and before January 1, 2012, a claimant may claim as a credit against the tax imposed under
ss. 71.02 and
71.08 an amount equal to 10 percent of the amount the claimant paid in the taxable year for livestock farm modernization or expansion related to the operation of the claimant's livestock farm.
71.07(3n)(c)
(c) No credit may be allowed under this subsection for any amount that the claimant paid for expenses described under
par. (b) that the claimant also claimed as a deduction under section
162 of the Internal Revenue Code.
71.07(3n)(d)
(d) The aggregate amount of credits that a claimant may claim under this subsection is $50,000.
71.07(3n)(e)1.1. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of expenses under
par. (b), except that the aggregate amount of credits that the entity may compute shall not exceed $50,000. A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.
71.07(3n)(e)2.
2. If 2 or more persons own and operate the dairy or livestock farm, each person may claim a credit under
par. (b) in proportion to his or her ownership interest, except that the aggregate amount of the credits claimed by all persons who own and operate the farm shall not exceed $50,000.
71.07 Cross-reference
Cross Reference: See also s.
Tax 2.99, Wis. adm. code.
71.07(3p)
(3p) Dairy manufacturing facility investment credit. 71.07(3p)(a)1.
1. "Claimant" means a person who files a claim under this subsection.
71.07(3p)(a)2.
2. "Dairy manufacturing" means processing milk into dairy products or processing dairy products for sale commercially.
71.07(3p)(a)3.
3. "Dairy manufacturing modernization or expansion" means constructing, improving, or acquiring buildings or facilities, or acquiring equipment, for dairy manufacturing, including the following, if used exclusively for dairy manufacturing and if acquired and placed in service in this state during taxable years that begin after December 31, 2006, and before January 1, 2015:
71.07(3p)(a)3.a.
a. Building construction, including storage and warehouse facilities.
71.07(3p)(a)3.c.
c. Upgrades to utilities, including water, electric, heat, and waste facilities.
71.07(3p)(a)3.e.
e. Processing and manufacturing equipment, including pipes, motors, pumps, valves, pasteurizers, homogenizers, vats, evaporators, dryers, concentrators, and churns.
71.07(3p)(a)3.f.
f. Packaging and handling equipment, including sealing, bagging, boxing, labeling, conveying, and product movement equipment.
71.07(3p)(a)3.h.
h. Waste treatment and waste management equipment, including tanks, blowers, separators, dryers, digesters, and equipment that uses waste to produce energy, fuel, or industrial products.
71.07(3p)(a)3.i.
i. Computer software and hardware used for managing the claimant's dairy manufacturing operation, including software and hardware related to logistics, inventory management, and production plant controls.
71.07(3p)(a)4.
4. "Used exclusively" means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.
71.07(3p)(b)
(b)
Filing claims. Subject to the limitations provided in this subsection and
s. 560.207, for taxable years beginning after December 31, 2006, and before January 1, 2015, a claimant may claim as a credit against the taxes imposed under
s. 71.02 or
71.08, up to the amount of the tax, an amount equal to 10 percent of the amount the claimant paid in the taxable year for dairy manufacturing modernization or expansion related to the claimant's dairy manufacturing operation.
