71.28(5rm)(a)2.
2. "Claimant" means a person who files a claim under this subsection, who is an industrial customer of a municipal water utility that is located in a federal renewal community zone in this state, and whose average annual water consumption from that utility for a 24-month period exceeds 1,000,000 Ccf.
71.28(5rm)(b)
(b)
Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2009, and before January 1, 2020, a claimant may claim as a credit against the tax imposed under
s. 71.23, up to the amount of the tax, the amount determined as follows, except that the maximum amount that a claimant may claim in a taxable year under this subsection is $300,000:
71.28(5rm)(b)1.
1. Subtract the claimant's 2009 water usage costs from the claimant's water usage costs for the taxable year.
71.28(5rm)(b)2.
2. If the amount determined under
subd. 1. is a positive number, multiply that amount by 0.50.
71.28(5rm)(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 interests.
71.28(5rm)(d)
(d)
Administration. Subsection (4) (e) to
(h), as it applies to the credit under
sub. (4), applies to the credit under this subsection.
71.28(6)
(6) Supplement to federal historic rehabilitation credit. 71.28(6)(a)(a) Any person may credit against taxes otherwise due under this chapter, up to the amount of those taxes, an amount equal to 5% of the costs of qualified rehabilitation expenditures, as defined in section
47 (c) (2) of the internal revenue code, for certified historic structures on property located in this state if the physical work of construction or destruction in preparation for construction begins after December 31, 1988, and the rehabilitated property is placed in service after June 30, 1989.
71.28(6)(c)
(c) No person may claim the credit under this subsection unless the claimant includes with the claimant's return evidence that the rehabilitation was recommended by the state historic preservation officer for approval by the secretary of the interior under
36 CFR 67.6 before the physical work of construction, or destruction in preparation for construction, began and that the rehabilitation was approved by the secretary of the interior under
36 CFR 67.6.
71.28(6)(cm)
(cm) Any credit claimed under this subsection for Wisconsin purposes shall be claimed at the same time as for federal purposes.
71.28(6)(d)
(d) The Wisconsin adjusted basis of the building shall be reduced by the amount of any credit awarded under this subsection. The Wisconsin adjusted basis of a partner's interest in a partnership, of a member's interest in a limited liability company or of stock in a tax-option corporation shall be adjusted to take into account adjustments made under this paragraph.
71.28(6)(e)
(e) The provisions of
sub. (4) (e),
(f),
(g) and
(h), as they apply to the credit under that subsection, apply to the credit under this subsection.
71.28(6)(f)
(f) A partnership, limited liability company, or tax-option corporation may not claim the credit under this subsection. The partners of a partnership, members of a limited liability company, or shareholders in a tax-option corporation may claim the credit under this subsection based on eligible costs incurred by the partnership, limited liability company, or tax-option corporation. The partnership, limited liability company, or tax-option corporation shall calculate the amount of the credit which may be claimed by each partner, member, or shareholder and shall provide that information to the partner, member, or shareholder. For shareholders of a tax-option corporation, the credit may be allocated in proportion to the ownership interest of each shareholder. Credits computed by a partnership or limited liability company may be claimed in proportion to the ownership interests of the partners or members or allocated to partners or members as provided in a written agreement among the partners or members that is entered into no later than the last day of the taxable year of the partnership or limited liability company, for which the credit is claimed. For a partnership or limited liability company that places property in service after June 29, 2008, and before January 1, 2009, the credit attributable to such property may be allocated, at the election of the partnership or limited liability company, to partners or members for a taxable year of the partnership or limited liability company that ends after June 29, 2008, and before January 1, 2010. Any partner or member who claims the credit as provided under this paragraph shall attach a copy of the agreement, if applicable, to the tax return on which the credit is claimed. A person claiming the credit as provided under this paragraph is solely responsible for any tax liability arising from a dispute with the department of revenue related to claiming the credit.
71.28(6)(g)1.1. If a person who claims the credit under this subsection elects to claim the credit based on claiming amounts for expenditures as the expenditures are paid, rather than when the rehabilitation work is completed, the person shall file an election form with the department, in the manner prescribed by the department.
71.28(6)(g)2.
2. Notwithstanding
s. 71.77, the department may adjust or disallow the credit claimed under this subsection within 4 years after the date that the state historical society notifies the department that the expenditures for which the credit was claimed do not comply with the standards for certification promulgated under
s. 44.02 (24).
71.28(8r)
(8r) Beginning farmer and farm asset owner tax credit. 71.28(8r)(a)1.
1. "Agricultural assets" means machinery, equipment, facilities, or livestock that is used in farming.
71.28(8r)(a)3.
3. "Claimant" means an established farmer who files a claim under this subsection.
71.28(8r)(a)5.
5. "Farming" has the meaning given in section
464 (e) (1) of the Internal Revenue Code.
71.28(8r)(a)6.
6. "Lease amount" is the amount of the cash payment paid by a beginning farmer to an established farmer each year for leasing the established farmer's agricultural assets.
71.28(8r)(b)
(b)
Filing claims. For taxable years beginning after December 31, 2010, and subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under
s. 71.23 an amount equal to 15 percent of the lease amount received by the claimant in the taxable year. If the allowable amount of the claim exceeds the taxes otherwise due on 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 from the appropriation under
s. 20.835 (2) (en).
71.28(8r)(c)1.1. A claimant may only claim the credit under this subsection for the first 3 years of any lease of the claimant's agricultural assets to a beginning farmer.
71.28(8r)(c)2.
2. Along with a claimant's income tax return, a claimant shall submit to the department a certificate of eligibility provided under
s. 93.53 (5) (c).
71.28(8r)(c)3.
3. 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 the amounts received by the entities 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.
71.28(8r)(d)
(d)
Administration. Subsection (4) (e),
(g), and
(h), as it applies to the credit under that
sub. (4), applies to the credit under this subsection.
71.28 History
History: 1987 a. 312;
1987 a. 411 ss.
88,
130 to
139;
1987 a. 422;
1989 a. 31,
44,
56,
100,
336,
359;
1991 a. 39,
292;
1993 a. 16,
112,
232,
491;
1995 a. 2;
1995 a. 27 ss.
3399r to
3404c,
9116 (5);
1995 a. 209,
227;
1997 a. 27,
41,
237,
299;
1999 a. 5,
9;
2001 a. 16;
2003 a. 72,
99,
135,
255,
267,
326;
2005 a. 25,
74,
97,
361,
387,
452,
479,
483,
487;
2007 a. 20,
96,
97,
100;
2009 a. 2,
11,
28,
180,
185,
265,
267,
269,
276,
294,
295,
332,
401; s. 13.92 (1) (bm) 2.
71.29
71.29
Payments of estimated taxes. 71.29(1)
(1)
Definitions. In this section:
71.29(1)(a)
(a) "Return" means a return that would show the tax properly due.
71.29(1)(b)
(b) "Tax shown on the return" and "tax for the taxable year" mean the net taxes imposed under
s. 71.23 (1) or
(2) after reduction for credits against those taxes but before reduction for amounts paid as estimated tax under this section plus the surcharge imposed under
s. 77.93 before reduction for amounts paid as estimated tax under this section for that surcharge.
71.29(1)(c)
(c) "Virtually exempt entity" means any entity, other than a corporation, that is subject to a tax under this chapter on unrelated business taxable income as defined under section
512 of the internal revenue code.
71.29(2)
(2) Who shall pay. Every corporation subject to tax under
s. 71.23 (1) or
(2) and every virtually exempt entity subject to tax under
s. 71.125 or
71.23 (1) or
(2) shall pay an estimated tax.
71.29(3)
(3) Refund carry-forward. If a corporation or virtually exempt entity claims a refund on any tax return and, concurrent with or subsequent to filing the return upon which that refund is claimed, is required to pay an estimated tax, and at the time of paying that tax the refund has not been paid, the corporation or virtually exempt entity may deduct the amount of that refund from the first installment of estimated taxes and may deduct any excess from the succeeding installments.
71.29(3m)
(3m) Refunds. The department of revenue may refund estimated taxes after the completion of the taxable year to which the estimated taxes relate if the refund is at least 10% of the taxes estimated for that taxable year and is at least $500. A refund under this subsection may be subject to
s. 71.84 (2) (c).
71.29(4)
(4) Prepayments. Any installment of the estimated tax under this section may be paid before the due date.
71.29(5)
(5) Short year. Application of this section to taxable years of less than 12 full months shall be made under the department of revenue's rules.
71.29 Cross-reference
Cross-reference: See also s.
Tax 2.89, Wis. adm. code.
71.29(6)
(6) Overpayments. If the amount of an installment payment of estimated tax exceeds the amount determined to be the correct amount of that payment, the overpayment shall be credited against the next unpaid installment.
71.29(7)
(7) Exception to interest. No interest is required under
s. 71.84 (2) (a) or
(b) for a corporation or virtually exempt entity if any of the following conditions apply:
71.29(7)(a)
(a) The tax shown on the return or, if no return is filed, the tax is less than $500.
71.29(7)(b)
(b) The preceding taxable year was 12 months, the corporation or virtually exempt entity had no liability under
s. 71.125 or
71.23 (1) or
(2) for that year and the corporation or virtually exempt entity has a Wisconsin net income of less than $250,000 for the current taxable year.
71.29(7)(c)
(c) For taxable years beginning after December 31, 2008, the taxpayer qualifies for a federal extension of time to file under
26 USC 7508A due to a presidentially declared disaster or terroristic or military action.
71.29(8)
(8) Installment due dates. Taxpayers shall make estimated payments in 4 installments, on or before the 15th day of each of the following months:
71.29(9)
(9) Installment amounts; income of less than $250,000. 71.29(9)(a)(a) For corporations or virtually exempt entities that have Wisconsin net incomes of less than $250,000, except as provided in
pars. (b) and
(c), the amount of each installment required under
sub. (8) is 25% of the lower of the following amounts:
71.29(9)(a)1.
1. Ninety percent of the tax shown on the return for the taxable year or, if no return is filed, 90% of the tax for the taxable year.
71.29(9)(a)2.
2. The tax shown on the return for the preceding year.
71.29(9)(b)
(b) Paragraph (a) 2. does not apply if the preceding taxable year was less than 12 months or if the corporation did not file a return for the preceding year.
71.29(9)(c)
(c) If 22.5% for the first installment, 45% for the 2nd installment, 67.5% for the 3rd installment and 90% for the 4th installment of the tax for the taxable year computed by annualizing, under methods prescribed by the department of revenue, the corporation's income, or the virtually exempt entity's unrelated business taxable income, for the months in the taxable year ending before the installment's due date is less than the installment required under
par. (a), the corporation or virtually exempt entity may pay the amount under this paragraph rather than the amount under
par. (a). For purposes of computing annualized income under this paragraph, the apportionment percentage computed under
s. 71.25 (6) and
(10) to
(12) from the return filed for the previous taxable year may be used if that return was filed with the department of revenue on or before the due date of the installment for which the income is being annualized and if the apportionment percentage on that previous year's return was greater than zero. For purposes of computing annualized income of corporations that are subject to a tax under this chapter on unrelated business taxable income, as defined under section
512 of the internal revenue code, and virtually exempt entities, the taxpayer's income for the months in the taxable year ending before the date one month before the due date for the installment shall be used. Any corporation or virtually exempt entity that pays an amount calculated under this paragraph shall increase the next installment computed under
par. (a) by an amount equal to the difference between the amount paid under this paragraph and the amount that would have been paid under
par. (a).
71.29(10)
(10) Installment amounts; income of $250,000 or more. 71.29(10)(a)(a) Except as provided in
par. (c), for corporations or virtually exempt entities that have Wisconsin net incomes of $250,000 or more, the amount of each installment required under
sub. (8) is 25% of the amount under
par. (b).
71.29(10)(b)
(b) Ninety percent of the tax shown on the return for the taxable year or, if no return is filed, 90% of the tax for the taxable year.
71.29(10)(c)
(c) If 22.5% for the first installment, 45% for the 2nd installment, 67.5% for the 3rd installment and 90% for the 4th installment of the tax for the taxable year computed by annualizing, under methods prescribed by the department of revenue, the corporation's income, or the virtually exempt entity's unrelated business taxable income, for the months in the taxable year ending before the installment's due date is less than the installment required under
par. (a), the corporation or virtually exempt entity may pay the amount under this paragraph rather than the amount under
par. (a). For purposes of computing annualized income under this paragraph, the apportionment percentage computed under
s. 71.25 (6) and
(10) to
(12) from the return filed for the previous taxable year may be used if that return is filed with the department of revenue on or before the due date of the installment for which the income is being annualized and the apportionment percentage on that previous year's return is greater than zero or may be used if that return is filed with the department of revenue on or before the due date of the 3rd installment, the apportionment percentage on that previous year's return is greater than zero and the apportionment percentage used in the computation of the first 2 installments is not less than the apportionment percentage on that previous year's return. For purposes of computing annualized income of corporations that are subject to a tax under this chapter on unrelated business taxable income, as defined under section
512 of the internal revenue code, and virtually exempt entities, the taxpayer's income for the months in the taxable year ending before the date one month before the due date for the installment shall be used. Any corporation or virtually exempt entity that pays an amount calculated under this paragraph shall increase the next installment computed under
par. (a) by an amount equal to the difference between the amount paid under this paragraph and the amount that would have been paid under
par. (a).
71.29(11)
(11) Exception to final installment. If a corporation or virtually exempt entity files a return for a calendar year on or before January 31 of the succeeding calendar year (or if a corporation or virtually exempt entity on a fiscal year basis files a return on or before the last day of the first month immediately succeeding the close of such fiscal year) and pays in full at the time of such filing the amount computed on the return as payable, then, if estimated taxes are not required to be paid on or before the 15th day of the 9th month of the taxable year but are required to be paid on or before the 15th day of the 12th month of the taxable year, such return shall be considered as payment.
71.30
71.30
General provisions. 71.30(1)(a)(a) A corporation shall use a method of accounting authorized under the internal revenue code and shall use the same method used for federal income tax purposes if that method is authorized under the internal revenue code.
71.30(1)(b)
(b) A corporation that changes its method of accounting while subject to taxation under this chapter shall make the adjustments required under the internal revenue code, except that in the last year that a corporation is subject to taxation under this chapter it shall take into account all of the remaining adjustments required by this chapter because of a change in method of accounting.
71.30(2)
(2) Allocation of gross income, deductions, credits between 2 or more businesses. In any case of 2 or more organizations, trades or businesses (whether or not incorporated, whether or not organized in the United States, whether or not affiliated, and whether or not unitary) owned or controlled directly or indirectly by the same interests, the secretary or his or her delegate may distribute, apportion or allocate gross income, deductions, credits or allowances between or among such organizations, trades or businesses, if he or she determines that such distribution, apportionment or allocation is necessary in order to prevent evasion of taxes or clearly to reflect the income of any of such organizations, trades or businesses. The authority granted under this subsection is in addition to, and not a limitation of or dependent on, the provisions of
ss. 71.05 (6) (a) 24. and
(b) 45.,
71.26 (2) (a) 7. and
8.,
71.34 (1k) (j) and
(k),
71.45 (2) (a) 16. and
17., and
71.80 (23).
71.30(2m)
(2m) Transactions without economic substance. 71.30(2m)(a)(a) If any person, directly or indirectly, engages in a transaction or series of transactions without economic substance to create a loss or to reduce taxable income or to increase credits allowed in determining Wisconsin tax, the department shall determine the amount of a taxpayer's taxable income or tax so as to reflect what would have been the taxpayer's taxable income or tax if not for the transaction or transactions without economic substance causing the reduction in taxable income or tax.
71.30(2m)(b)
(b) A transaction has economic substance only if the taxpayer shows both of the following:
71.30(2m)(b)1.
1. The transaction changes the taxpayer's economic position in a meaningful way, apart from federal, state, local, and foreign tax effects.
71.30(2m)(b)2.
2. The taxpayer has a substantial nontax purpose for entering into the transaction and the transaction is a reasonable means of accomplishing the substantial nontax purpose. A transaction has a substantial nontax purpose if it has substantial potential for profit, disregarding any tax effects.
71.30(2m)(c)
(c) With respect to transactions between members of a controlled group as defined in section
267 (f) (1) of the Internal Revenue Code, such transactions shall be presumed to lack economic substance and the taxpayer shall bear the burden of establishing by clear and convincing evidence that a transaction or a series of transactions between the taxpayer and one or more members of the controlled group has economic substance.
71.30(3)
(3) Computations order. Notwithstanding any other provisions in this chapter, corporations computing liability for the tax under
s. 71.23 (1) or
(2) shall make computations in the following order:
