71.07(3rn)(b)
(b)
Filing claims. Subject to the limitations provided in this subsection and s.
93.54 or s.
560.2056, 2009 stats., for taxable years beginning after December 31, 2009, and before January 1, 2017, a claimant may claim as a credit against the tax imposed under
ss. 71.02 and
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 food processing or food warehousing modernization or expansion related to the operation of the claimant's food processing plant or food warehouse.
71.07(3rn)(c)1.1. 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(3rn)(c)2.
2. The aggregate amount of credits that a claimant may claim under this subsection is $200,000.
71.07(3rn)(c)4.
4. 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 $200,000. 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(3rn)(c)5.
5. If 2 or more persons own and operate the food processing plant or food warehouse, 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 food processing operation shall not exceed $200,000.
71.07(3rn)(c)6.
6. No credit may be allowed under this subsection unless the claimant submits with the claimant's return a copy of the claimant's credit certification and allocation under s.
93.54 or s.
560.2056, 2009 stats.
71.07(3rn)(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, 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) (be).
71.07 Cross-reference
Cross-reference: See also ch.
ATCP 165, Wis. adm. code.
71.07(3s)
(3s) Manufacturing sales tax credit. 71.07(3s)(a)2.
2. "Sales and use tax under
ch. 77 paid by the person" includes use taxes paid directly by the person and sales and use taxes paid by the person's supplier and passed on to the person whether separately stated on the invoice or included in the total price.
71.07(3s)(b)
(b) The tax imposed under
s. 71.02 or
71.08 shall be reduced by an amount equal to the sales and use tax under
ch. 77 paid by the person in such taxable year on fuel and electricity consumed in manufacturing tangible personal property in this state. Shareholders in a tax-option corporation and partners may claim the credit under this subsection, based on eligible sales and use taxes paid by the partnership or tax-option corporation, in proportion to the ownership interest of each partner or shareholder. The partnership or tax-option corporation shall calculate the amount of the credit which may be claimed by each partner or shareholder and shall provide that information to the partner or shareholder.
71.07(3s)(c)1.1. The credit under
par. (b), including any credits carried over, may be offset only against the amount of the tax imposed upon or measured by the business operations of the claimant in which the fuel and electricity are consumed. Except as provided in
subd. 7., if the credit computed is not entirely offset against taxes otherwise due, the unused balance shall be carried forward and credited against taxes otherwise due for the following 20 taxable years to the extent not offset by taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.
71.07(3s)(c)2.
2. For shareholders in a tax-option corporation, the credit may be offset only against the tax imposed on the shareholder's prorated share of the tax-option corporation's income.
71.07(3s)(c)3.
3. For partners, the credit may be offset only against the tax imposed on the partner's distributive share of partnership income.
71.07(3s)(c)4.
4. If a tax-option corporation becomes liable for tax for a taxable year that begins on or after January 1, 1998, the corporation may offset the credit against the tax due, with any remaining credit computed for a taxable year that begins on or after January 1, 1998, passing through to the shareholders.
71.07(3s)(c)5.
5. If a corporation that is not a tax-option corporation has a carry-over credit from a taxable year that begins on or after January 1, 1998, and becomes a tax-option corporation before the credit carried over is used, the unused portion of the credit may be used by the tax-option corporation's shareholders on a prorated basis.
71.07(3s)(c)6.
6. If the shareholders of a tax-option corporation have carry-over credits and the corporation becomes a corporation other than a tax-option corporation after October 14, 1997, and before the credits carried over are used, the unused portion of the credits may be used by the corporation that is not a tax-option corporation.
71.07(3s)(c)7.
7. No credit may be claimed under this subsection for taxable years that begin after December 31, 2005. For credits that are claimed but unused under this subsection for taxable years that begin before January 1, 2006, up to 50 percent may be used in each of the following 2 taxable years if the taxpayer has $25,000 or less in unused credits as of January 1, 2006. For taxable years beginning after December 31, 2005, and before January 1, 2008, a taxpayer who has more than $25,000 in unused credits as of January 1, 2006, may deduct an amount in each year that is equal to 50 percent of the amount the taxpayer added back to income under
s. 71.05 (6) (a) at the time that the taxpayer first claimed the credit or, with regard to credits passed through from a partnership, limited liability company, or tax-option corporation, 50 percent of the amount that the entity added back to its income and was included in the partner's, member's, or shareholder's Wisconsin net income at the time that the credit was first claimed.
71.07(3t)
(3t) Manufacturing investment credit. 71.07(3t)(a)(a)
Definition. In this subsection, "claimant" means a person who files a claim under this subsection.
71.07(3t)(b)
(b)
Credit. Subject to the limitations provided in this subsection and in s.
560.28, 2009 stats., for taxable years beginning after December 31, 2007, a claimant may claim as a credit, amortized over 15 taxable years starting with the taxable year beginning after December 31, 2007, against the tax imposed under
s. 71.02 and
71.08, up to the amount of the tax, an amount equal to the claimant's unused credits under
s. 71.07 (3s).
71.07(3t)(c)1.1. No credit may be claimed under this subsection unless the claimant submits with the claimant's return a copy of the claimant's certification by the department of commerce under s.
560.28, 2009 stats., except that, with regard to credits claimed by partners of a partnership, members of a limited liability company, or shareholders of a tax-option corporation, the entity shall provide a copy of its certification under s.
560.28, 2009 stats., to the partner, member, or shareholder to submit with his or her return.
71.07(3t)(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 the amount of their unused credits under
s. 71.07 (3s). 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(3t)(d)2.
2. The amount of any unused credit under this subsection in any taxable year may be carried forward to subsequent taxable years, up to 15 taxable years.
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.
238.399 (5) or s.
560.799 (5), 2009 stats., 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 under s.
238.399 or s.
560.799, 2009 stats.
71.07(3w)(a)5e.
5e. "Tier II county or municipality" means a tier II county or municipality, as determined under s.
238.399 or s.
560.799, 2009 stats.
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.
238.399 or s.
560.799, 2009 stats., 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 under s.
238.399 or s.
560.799, 2009 stats., 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.
238.399 or s.
560.799, 2009 stats., 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 under s.
238.399 or s.
560.799, 2009 stats., 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.
238.399 or s.
560.799, 2009 stats., 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 under s.
238.399 or s.
560.799, 2009 stats., 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.
238.399 or s.
560.799, 2009 stats., 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 under s.
238.399 (5m) or s.
560.799 (5m), 2009 stats.
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.
238.399 or s.
560.799, 2009 stats., 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 under s.
238.399 (5) (e) or s.
560.799 (5) (e), 2009 stats., 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.
238.399 (5) or
(5m) or s.
560.799 (5) or
(5m), 2009 stats.
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 or the Wisconsin Economic Development Corporation.
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.
238.15 or s.
560.205, 2009 stats., 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.
238.15 (1) or s.
560.205 (1), 2009 stats.
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 or the Wisconsin Economic Development Corporation the names and tax identification numbers of the claimants, the amounts of the credits allocated to the claimants, and the computation of the allocations.
