71.07(3w)(a)1.
1. "Base year" means the taxable year beginning during the calendar year prior to the calendar year in which the enterprise zone in which the claimant is located takes effect.
71.07(3w)(a)2.
2. "Claimant" means a person who is certified to claim tax benefits under
s. 560.799 (5) and who files a claim under this subsection.
71.07(3w)(a)5.
5. "State payroll" means the amount of payroll apportioned to this state, as determined under
s. 71.04 (6).
71.07(3w)(a)5d.
5d. "Tier I county or municipality" means a tier I county or municipality, as determined by the department of commerce under
s. 560.799.
71.07(3w)(a)5e.
5e. "Tier II county or municipality" means a tier II county or municipality, as determined by the department of commerce under
s. 560.799.
71.07(3w)(a)5m.
5m. "Wages" means wages under section
3306 (b) of the Internal Revenue Code, determined without regard to any dollar limitations.
71.07(3w)(a)6.
6. "Zone payroll" means the amount of state payroll that is attributable to wages paid to full-time employees for services that are performed in an enterprise zone. "Zone payroll" does not include the amount of wages paid to any full-time employees that exceeds $100,000.
71.07(3w)(b)
(b)
Filing claims; payroll. Subject to the limitations provided in this subsection and
s. 560.799, a claimant may claim as a credit against the tax imposed under
s. 71.02 or
71.08 an amount calculated as follows:
71.07(3w)(b)1.a.
a. The number of full-time employees whose annual wages are greater than $20,000 in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year, minus the number of full-time employees whose annual wages were greater than $20,000 in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the area that comprises the enterprise zone in the base year.
71.07(3w)(b)1.b.
b. The number of full-time employees whose annual wages are greater than $20,000 in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the state in the taxable year, minus the number of full-time employees whose annual wages were greater than $20,000 in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the state in the base year.
71.07(3w)(b)2.
2. Determine the claimant's average zone payroll by dividing total wages for full-time employees whose annual wages are greater than $20,000 in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year by the number of full-time employees whose annual wages are greater than $20,000 in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year.
71.07(3w)(b)3.
3. For employees in a tier I county or municipality, subtract $20,000 from the amount determined under
subd. 2. and for employees in a tier II county or municipality, subtract $30,000 from the amount determined under
subd. 2.
71.07(3w)(b)4.
4. Multiply the amount determined under
subd. 3. by the amount determined under
subd. 1.
71.07(3w)(b)5.
5. Multiply the amount determined under
subd. 4. by the percentage determined by the department of commerce under
s. 560.799, not to exceed 7 percent.
71.07(3w)(bm)1.1. In addition to the credits under
par. (b) and
subds. 2.,
3., and
4., and subject to the limitations provided in this subsection and
s. 560.799, a claimant may claim as a credit against the tax imposed under
s. 71.02 or
71.08 an amount equal to a percentage, as determined by the department of commerce, not to exceed 100 percent, of the amount the claimant paid in the taxable year to upgrade or improve the job-related skills of any of the claimant's full-time employees, to train any of the claimant's full-time employees on the use of job-related new technologies, or to provide job-related training to any full-time employee whose employment with the claimant represents the employee's first full-time job. This subdivision does not apply to employees who do not work in an enterprise zone.
71.07(3w)(bm)2.
2. In addition to the credits under
par. (b) and
subds. 1.,
3., and
4., and subject to the limitations provided in this subsection and
s. 560.799, a claimant may claim as a credit against the tax imposed under
s. 71.02 or
71.08 an amount equal to the percentage, as determined by the department of commerce under
s. 560.799, not to exceed 7 percent, of the claimant's zone payroll paid in the taxable year to all of the claimant's full-time employees whose annual wages are greater than $20,000 in a tier I county or municipality, not including the wages paid to the employees determined under
par. (b) 1., or greater than $30,000 in a tier II county or municipality, not including the wages paid to the employees determined under
par. (b) 1., and who the claimant employed in the enterprise zone in the taxable year, if the total number of such employees is equal to or greater than the total number of such employees in the base year. A claimant may claim a credit under this subdivision for no more than 5 consecutive taxable years.
71.07(3w)(bm)3.
3. In addition to the credits under
par. (b) and
subds. 1.,
2., and
4., and subject to the limitations provided in this subsection and
s. 560.799, for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under
s. 71.02 or
71.08 up to 10 percent of the claimant's significant capital expenditures, as determined by the department of commerce under
s. 560.799 (5m).
71.07(3w)(bm)4.
4. In addition to the credits under
par. (b) and
subds. 1.,
2., and
3., and subject to the limitations provided in this subsection and
s. 560.799, for taxable years beginning after December 31, 2009, a claimant may claim as a credit against the tax imposed under
s. 71.02 or
71.08, up to 1 percent of the amount that the claimant paid in the taxable year to purchase tangible personal property, items, property, or goods under
s. 77.52 (1) (b),
(c), or
(d), or services from Wisconsin vendors, as determined by the department of commerce under
s. 560.799 (5) (e), except that the claimant may not claim the credit under this subdivision and
subd. 3. for the same expenditures.
71.07(3w)(c)1.1. If the allowable amount of the claim under this subsection exceeds the taxes otherwise due on the claimant's income under
s. 71.02, the amount of the claim that is not used to offset those taxes shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation under
s. 20.835 (2) (co).
71.07(3w)(c)2.
2. 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 amounts described under
pars. (b) and
(bm). 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 interests.
71.07(3w)(c)3.
3. No credit may be allowed under this subsection unless the claimant includes with the claimant's return a copy of the claimant's certification for tax benefits under
s. 560.799 (5) or
(5m).
71.07(3w)(c)4.
4. No claimant may claim a credit under this subsection if the basis for which the credit is claimed is also the basis for which another credit is claimed under this subchapter.
71.07(3w)(d)
(d)
Administration. Section 71.28 (4) (g) and
(h), as it applies to the credit under
s. 71.28 (4), 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 verification of their expenses, from the department of commerce.
71.07(4)
(4) Homestead credit. The homestead credit under
subch. VIII may be claimed by individuals against taxes otherwise due.
71.07(5)
(5) Itemized deductions credit. Single persons, married persons filing separately and married persons filing jointly may claim as a credit against, but not to exceed the amount of, Wisconsin net income taxes due an amount calculated as follows:
71.07(5)(a)
(a) Add the amounts allowed as itemized deductions under the internal revenue code except:
71.07(5)(a)1.
1. Interest paid to purchase or hold securities issued by the federal government or by any of its instrumentalities the interest on which is exempt from taxation under
s. 71.05 (6) (b) 1.
71.07(5)(a)3.
3. Casualty and theft deductions under section
165 (c) (3) of the internal revenue code, except for casualty losses that are directly related to a presidentially declared disaster under
26 USC 7508A.
71.07(5)(a)4.
4. Expenses to move from this state under section
217 of the internal revenue code.
71.07(5)(a)5.
5. Interest incurred to purchase or refinance a residence that is not a principal residence and is not in this state, and interest incurred to purchase or refinance a residence that is a boat.
71.07(5)(a)6.
6. The amount claimed for repayment of income previously taxed under this chapter if that amount is used in calculating the credit under
sub. (1).
71.07(5)(a)7.
7. Miscellaneous itemized deductions under the Internal Revenue Code, without regard to whether such deductions are subject to the 2% floor as described in section
67 of the Internal Revenue Code.
71.07(5)(a)8.
8. Any employment-related educational expense that is claimed as an itemized deduction under the Internal Revenue Code to the extent that such an amount is also claimed as a subtract modification under
s. 71.05 (6) (b) 28.
71.07(5)(a)15.
15. The amount claimed as a deduction for medical care insurance under section
213 of the Internal Revenue Code that is exempt from taxation under
s. 71.05 (6) (b) 17. to
20.,
35.,
36.,
37.,
38.,
39.,
40.,
41., and
42. and the amount claimed as a deduction for a long-term care insurance policy under section
213 (d) (1) (D) of the Internal Revenue Code, as defined in section
7702B (b) of the Internal Revenue Code that is exempt from taxation under
s. 71.05 (6) (b) 26.
71.07(5)(d)
(d) With respect to persons who change their domicile into or from this state during the taxable year and nonresident persons, the credit under this subsection shall be limited to the fraction of the amount so determined that Wisconsin adjusted gross income is of federal adjusted gross income. In this paragraph, for married persons filing separately "adjusted gross income" means the separate adjusted gross income of each spouse and for married persons filing jointly "adjusted gross income" means the total adjusted gross income of both spouses. If a person and that person's spouse are not both domiciled in this state during the entire taxable year, their credit under this subsection on a joint return shall be limited to the fraction of the amount so determined that their joint Wisconsin adjusted gross income is of their joint federal adjusted gross income.
71.07(5b)
(5b) Early stage seed investment credit. 71.07(5b)(a)1.
1. "Claimant" means a person who files a claim under this subsection.
71.07(5b)(b)1.1. For taxable years beginning after December 31, 2004, subject to the limitations provided under this subsection and
s. 560.205, and except as provided in
subd. 2., a claimant may claim as a credit against the tax imposed under
ss. 71.02 and
71.08, up to the amount of those taxes, 25 percent of the claimant's investment paid to a fund manager that the fund manager invests in a business certified under
s. 560.205 (1).
71.07(5b)(b)2.
2. In the case of a partnership, limited liability company, or tax-option corporation, the computation of the 25 percent limitation under
subd. 1. shall be determined at the entity level rather than the claimant level and may be allocated among the claimants who make investments in the manner set forth in the entity's organizational documents. The entity shall provide to the department of revenue and to the department of commerce the names and tax identification numbers of the claimants, the amounts of the credits allocated to the claimants, and the computation of the allocations.
71.07(5b)(c)
(c)
Limitations. 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 amounts under
par. (b). 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 or as specially allocated in their organizational documents.
71.07(5b)(d)2.
2. The Wisconsin adjusted basis of any investment for which a credit is claimed under
par. (b) shall be reduced by the amount of the credit that is offset against Wisconsin income taxes. The Wisconsin basis of a partner's interest in a partnership, a member's interest in a limited liability company, or stock in a tax-option corporation shall be adjusted to reflect adjustments made under this subdivision.
71.07(5b)(d)3.
3. For calendar years beginning after December 31, 2007, if an investment for which a claimant claims a credit under
par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.
71.07(5d)(a)1.
1. "Bona fide angel investment" means a purchase of an equity interest, or any other expenditure, as determined by rule under
s. 560.205, that is made by any of the following:
71.07(5d)(a)1.a.
a. A person who reviews new businesses or proposed new businesses for potential investment of the person's money.
71.07(5d)(a)2.
2. "Claimant" means an individual who files a claim under this subsection.
71.07(5d)(a)2m.
2m. "Person" means a partnership or limited liability company that is a nonoperating entity, as determined by the department of commerce, a natural person, or fiduciary.
71.07(5d)(b)
(b)
Filing claims. Subject to the limitations provided in this subsection and in
s. 560.205, a claimant may claim as a credit against the tax imposed under
s. 71.02 or
71.08, up to the amount of those taxes, the following:
71.07(5d)(b)1.
1. For taxable years beginning before January 1, 2008, in each taxable year for 2 consecutive years, beginning with the taxable year as certified by the department of commerce, an amount equal to 12.5 percent of the claimant's bona fide angel investment made directly in a qualified new business venture.
71.07(5d)(b)2.
2. For taxable years beginning after December 31, 2007, for the taxable year certified by the department of commerce, an amount equal to 25 percent of the claimant's bona fide angel investment made directly in a qualified new business venture.
71.07(5d)(c)1.1. Except as provided in
s. 73.03 (63), the maximum amount of the credits that may be claimed under this subsection for all taxable years combined is $47,500,000.
71.07(5d)(c)2.
2. For taxable years beginning before January 1, 2008, the maximum amount of a claimant's investment that may be used as the basis for a credit under this subsection is $2,000,000 for each investment made directly in a business certified under
s. 560.205 (1).
71.07(5d)(c)3m.
3m. Partnerships and limited liability companies may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts under
par. (b). A partnership or limited liability company shall compute the amount of credit that each of its partners or members may claim and shall provide that information to each of them. Partners and members of limited liability companies may claim the credit in proportion to their ownership interest or as specially allocated in their organizational documents.
71.07(5d)(c)4.
4. A claimant may claim the credit under this subsection for an investment that was made in a business that was located outside of this state if the investment was made no more than 60 days before the business relocated to this state and the business was certified as a qualified new business venture no later than 180 days after relocating to this state.
71.07(5d)(d)1.1. For calendar years beginning after December 31, 2007, if an investment for which a claimant claims a credit under
par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.
71.07(5d)(d)3.
3. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.
71.07(5d)(d)4.
4. The Wisconsin adjusted basis of any investment for which a credit is claimed under
par. (b) shall be reduced by the amount of the credit that is offset against Wisconsin income taxes.
71.07(5e)(a)1.
1. "Claimant" means a person who files a claim under this subsection.
71.07(5e)(a)2.
2. "Internet equipment used in the broadband market" means equipment that is capable of transmitting data packets or Internet signals at speeds of at least 200 kilobits per second in either direction.
71.07(5e)(b)
(b)
Filing claims. Subject to the limitations provided in this subsection and subject to
2005 Wisconsin Act 479, section 17, beginning in the first taxable year following the taxable year in which the claimant claims a deduction under
s. 77.585 (9), a claimant may claim as a credit against the taxes imposed under
ss. 71.02 and
71.08, up to the amount of those taxes, in each taxable year for 2 years, the amount of sales and use tax certified by the department of commerce that resulted from the claimant claiming a deduction under
s. 77.585 (9).
71.07(5e)(c)1.1. No credit may be allowed under this subsection unless the claimant satisfies the requirements under
s. 77.585 (9).
71.07(5e)(c)2.
2. 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 use of sales and use tax exemptions certified by the department of commerce as described under
par. (b). 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 interests.
71.07(5e)(c)3.
3. The total amount of the credits and the sales and use tax resulting from the deductions claimed under
s. 77.585 (9) that may be claimed by all claimants under this subsection and
ss. 71.28 (5e),
71.47 (5e), and
77.585 (9) is $7,500,000, as determined by the department of commerce.
71.07(5f)
(5f) Film production services credit.
