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. 71.07(5f)(a)1.
1. "Accredited production" means a film, video, broadcast advertisement, or television production, as approved by the department of commerce, for which the aggregate salary and wages included in the cost of the production for the period ending 12 months after the month in which the principal filming or taping of the production begins exceeds $50,000. "Accredited production" also means an electronic game, as approved by the department of commerce, for which the aggregate salary and wages included in the cost of the production for the period ending 36 months after the month in which the principal programming, filming, or taping of the production begins exceeds $100,000. "Accredited production" does not include any of the following, regardless of the production costs:
71.07(5f)(a)1.a.
a. News, current events, or public programming or a program that includes weather or market reports.
71.07(5f)(a)1.g.
g. A production for which the production company is required under
18 USC 2257 to maintain records with respect to a performer portrayed in a single media or multimedia program.
71.07(5f)(a)1.h.
h. A production produced primarily for industrial, corporate, or institutional purposes.
71.07(5f)(a)2.
2. "Claimant" means a person who files a claim under this subsection.
71.07(5f)(a)3.
3. "Production expenditures" means any expenditures that are incurred in this state and directly used to produce an accredited production, including expenditures for set construction and operation, wardrobes, make-up, clothing accessories, photography, sound recording, sound synchronization, sound mixing, lighting, editing, film processing, film transferring, special effects, visual effects, renting or leasing facilities or equipment, renting or leasing motor vehicles, food, lodging, and any other similar expenditure as determined by the department of commerce. "Production expenditures" do not include salary, wages, or labor-related contract payments.
71.07(5f)(b)
(b)
Filing claims. Subject to the limitations provided in this subsection, 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 any of the following amounts:
71.07(5f)(b)1.
1. An amount equal to 25 percent of the salary, wages, or labor-related contract payments paid by the claimant in the taxable year to individuals, including actors, who were residents of this state at the time that they were paid and who worked on an accredited production in this state, not including the salary, wages, or contract payments paid to any individual who was paid more than $250,000.
71.07(5f)(b)3.
3. An amount equal to 25 percent of the production expenditures paid by the claimant in the taxable year to produce an accredited production.
71.07(5f)(c)1.1. A claimant may not claim a credit under this subsection if less than 35 percent of the total budget for the accredited production is spent in this state.
71.07(5f)(c)2.
2. The total amount of the credits that a claimant may claim under [
par. (b) 2.] in a taxable year shall not exceed an amount equal to the first $20,000 of salary, wages, or labor-related contract payments paid to each individual described in [
par. (b) 2.] in the taxable year.
71.07 Note
NOTE: The cross-reference in brackets does not exist as the result of the governor's partial veto of
2009 Wis. Act 28.
71.07(5f)(c)3.
3. No credit may be claimed under
par. (b) 3. for the purchase of tangible personal property or items, property, or goods under
s. 77.52 (1) (b),
(c), or
(d) the sale of which is not sourced to this state, as provided under
s. 77.522.
71.07(5f)(c)6.
6. No credit may be allowed under this subsection unless the claimant files an application with the department of commerce, at the time and in the manner prescribed by the department of commerce, and the department of commerce approves the application. The claimant shall submit a fee with the application in an amount equal to 2 percent of the claimant's budgeted production expenditures or to $5,000, whichever is less. The claimant shall submit a copy of the approved application with the claimant's return.
71.07(5f)(c)7.
7. 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.
71.07(5f)(d)2.
2. If the allowable amount of the claim under
par. (b) exceeds the tax otherwise due under
s. 71.02 or
71.08 or no tax is due under
s. 71.02 or
71.08, the amount of the claim not used to offset the tax due 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 account under
s. 20.835 (2) (bm).
71.07(5g)
(5g) Health Insurance Risk-Sharing Plan assessments credit. 71.07(5g)(a)(a)
Definitions. In this subsection, "claimant" means a partner, limited liability company member, or tax-option corporation shareholder who files a claim under this subsection and who is a partner, member, or shareholder of an entity that is an insurer, as defined in
s. 149.10 (5).
71.07(5g)(b)
(b)
Filing claims. Subject to the limitations provided under this subsection, for taxable years beginning after December 31, 2005, a claimant may claim as a credit against the taxes imposed under
s. 71.02 an amount that is equal to the amount of the assessment under
s. 149.13 that the claimant paid in the claimant's taxable year, multiplied by the percentage determined under
par. (c) 1.
71.07(5g)(c)1.1. The department of revenue, in consultation with the office of the commissioner of insurance, shall determine the percentage under
par. (b) for each claimant for each taxable year. The percentage shall be equal to $5,000,000 divided by the aggregate assessment under
s. 149.13. The office of the commissioner of insurance shall provide to each claimant that participates in the cost of administering the plan the aggregate assessment at the time that it notifies the claimant of the claimant's assessment. The aggregate amount of the credit under this subsection and
ss. 71.28 (5g),
71.47 (5g), and
76.655 for all claimants participating in the cost of administering the plan under
ch. 149 shall not exceed $5,000,000 in each fiscal year.
71.07(5g)(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
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(5g)(c)3.
3. The amount of any credits that a claimant is awarded under this subsection for taxable years beginning after December 31, 2005, and before January 1, 2008, may first be claimed against the tax imposed under this subchapter for taxable years beginning after December 31, 2007, and in the manner determined by the department of revenue.
