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 Note
NOTE: The correct cross-reference is shown in brackets. Corrective legislation is pending.
71.07(3y)(b)
(b)
Filing claims. Subject to the limitations provided in this subsection and
s. 238.308, for taxable years beginning after December 31, 2015, a claimant may claim as a credit against the tax imposed under
ss. 71.02 and
71.08 all of the following:
71.07(3y)(b)1.
1. The amount of wages that the claimant paid to an eligible employee in the taxable year, not to exceed 10 percent of such wages, as determined by the Wisconsin Economic Development Corporation under
s. 238.308.
71.07(3y)(b)2.
2. In addition to any amount claimed for an eligible employee under
subd. 1., the amount of wages that the claimant paid to the eligible employee in the taxable year, not to exceed 5 percent of such wages, if the eligible employee is employed in an economically distressed area, as determined by the Wisconsin Economic Development Corporation.
71.07(3y)(b)3.
3. The amount of training costs that the claimant incurred under
s. 238.308 (4) (a) 3., not to exceed 50 percent of such costs, as determined by the Wisconsin Economic Development Corporation.
71.07(3y)(b)4.
4. The amount of the personal property investment, not to exceed 3 percent of such investment, and the amount of the real property investment, not to exceed 5 percent of such investment, in a capital investment project that satisfies
s. 238.308 (4) (a) 4., as determined by the Wisconsin Economic Development Corporation.
71.07(3y)(b)5.
5. An amount, as determined by the Wisconsin Economic Development Corporation under
s. 238.308 (4) (a) 5., equal to a percentage of the amount of wages that the claimant paid to an eligible employee in the taxable year if the position in which the eligible employee was employed was created or retained in connection with the claimant's location or retention of the claimant's corporate headquarters in Wisconsin and the job duties associated with the eligible employee's position involve the performance of corporate headquarters functions.
71.07(3y)(c)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 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.
71.07(3y)(c)2.
2. 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. 238.308.
71.07(3y)(d)2.
2. If the allowable amount of the claim under
par. (b) exceeds the tax otherwise due under
ss. 71.02 and
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) (bg).
71.07(4)
(4) Homestead credit. The homestead credit under
subch. VIII may be claimed by individuals against taxes otherwise due.
71.07(4k)(a)1.b.
b. In the case of a truck, the control system and the fuel and drive train, excluding any comfort features located in the cab or the tires.
71.07(4k)(a)1.c.
c. In the case of a generator, the control modules, fuel train, fuel scrubbing process, fuel mixers, generator, heat exchangers, exhaust train, and similar components.
71.07(4k)(a)2.
2. “Internal combustion engine" includes substitute products such as fuel cell, electric, and hybrid drives.
71.07(4k)(a)3.
3. “Vehicle" means any vehicle or frame, including parts, accessories, and component technologies, in which or on which an engine is mounted for use in mobile or stationary applications. “Vehicle" includes any truck, tractor, motorcycle, snowmobile, all-terrain vehicle, boat, personal watercraft, generator, construction equipment, lawn and garden maintenance equipment, automobile, van, sports utility vehicle, motor home, bus, or aircraft.
71.07(4k)(b)1.1. Subject to the limitations provided in this subsection, and except as provided in
subds. 2. and
3., for taxable years beginning after December 31, 2012, and before January 1, 2015, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under
s. 71.02 or
71.08, as allocated under
par. (d), an amount equal to 5 percent of the amount obtained by subtracting from the individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses, as defined in section
41 of the Internal Revenue Code, except that “qualified research expenses" includes only expenses incurred by the individual, partnership, tax-option corporation, or the limited liability company, incurred for research conducted in this state for the taxable year, except that a taxpayer may elect the alternative computation under section
41 (c) (4) of the Internal Revenue Code and that election applies until the department permits its revocation, except as provided in
par. (c), and except that “qualified research expenses" does not include compensation used in computing the credit under
sub. (2dx), the entity's base amount, as defined in section
41 (c) of the Internal Revenue Code, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under
ss. 71.04 (7) (b) 1. and
2.,
(df),
(dh),
(dj), and
(dk). Section
41 (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
71.07(4k)(b)2.
2. For taxable years beginning after December 31, 2012, and before January 1, 2015, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under
s. 71.02 or
71.08, as allocated under
par. (d), an amount equal to 10 percent of the amount obtained by subtracting from the individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses, as defined in section
41 of the Internal Revenue Code, except that “qualified research expenses" includes only expenses incurred by the individual, partnership, tax-option corporation, or limited liability company for research related to designing internal combustion engines for vehicles, including expenses related to designing vehicles that are powered by such engines and improving production processes for such engines and vehicles, incurred for research conducted in this state for the taxable year, except that a taxpayer may elect the alternative computation under section
41 (c) (4) of the Internal Revenue Code and that election applies until the department permits its revocation, except as provided in
par. (c), and except that “qualified research expenses" does not include compensation used in computing the credit under
sub. (2dx), the entity's base amount, as defined in section
41 (c) of the Internal Revenue Code, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under
ss. 71.04 (7) (b) 1. and
2.,
(df),
(dh),
(dj), and
(dk). Section
41 (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
71.07(4k)(b)3.
3. For taxable years beginning after December 31, 2012, and before January 1, 2015, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under
s. 71.02 or
71.08, as allocated under
par. (d), an amount equal to 10 percent of the amount obtained by subtracting from the individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses, as defined in section
41 of the Internal Revenue Code, except that “qualified research expenses" includes only expenses incurred by the individual, partnership, tax-option corporation, or limited liability company for research related to the design and manufacturing of energy efficient lighting systems, building automation and control systems, or automotive batteries for use in hybrid-electric vehicles, that reduce the demand for natural gas or electricity or improve the efficiency of its use, incurred for research conducted in this state for the taxable year, except that a taxpayer may elect the alternative computation under section
41 (c) (4) of the Internal Revenue Code and that election applies until the department permits its revocation, except as provided in
par. (c), and except that “qualified research expenses" does not include compensation used in computing the credit under
sub. (2dx), the entity's base amount, as defined in section
41 (c) of the Internal Revenue Code, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under
ss. 71.04 (7) (b) 1. and
2.,
(df),
(dh),
(dj), and
(dk). Section
41 (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
71.07(4k)(b)4.a.a. Except as provided in
subds. 5. and
6., for taxable years beginning after December 31, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under
s. 71.02 or
71.08, as allocated under
par. (d), an amount equal to 5.75 percent of the amount by which the individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses for the taxable year exceed 50 percent of the average qualified research expenses for the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit. If the individual, partnership, tax-option corporation, or limited liability company had no qualified research expenses in any of the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit, the claimant may claim an amount equal to 2.875 percent of the individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses for the taxable year for which the claimant claims the credit.
71.07(4k)(b)4.b.
b. For purposes of
subd. 4. a. “qualified research expenses" means qualified research expenses as defined in section
41 of the Internal Revenue Code, except that “qualified research expenses" includes only expenses incurred by the individual, partnership, tax-option corporation, or the limited liability company, incurred for research conducted in this state for the taxable year and does not include compensation used in computing the credit under
sub. (2dx). Section
41 (f) (1), (2), (5), and (6) and (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
71.07(4k)(b)5.a.a. For taxable years beginning after December 31, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under
s. 71.02 or
71.08, as allocated under
par. (d), an amount equal to 11.5 percent of the amount by which the individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses for the taxable year exceed 50 percent of the average qualified research expenses for the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit. If the individual, partnership, tax-option corporation, or limited liability company had no qualified research expenses in any of the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit, the claimant may claim an amount equal to 5.75 percent of the individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses for the taxable year for which the claimant claims the credit.
71.07(4k)(b)5.b.
b. For purposes of
subd. 5. a., “qualified research expenses" means qualified research expenses as defined in section
41 of the Internal Revenue Code, except that “qualified research expenses" includes only expenses incurred by the individual, partnership, tax-option corporation, or limited liability company for research related to designing internal combustion engines for vehicles, including expenses related to designing vehicles that are powered by such engines and improving production processes for such engines and vehicles, incurred for research conducted in this state for the taxable year and does not include compensation used in computing the credit under
sub. (2dx). Section
41 (f) (1), (2), (5), and (6) and (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
71.07(4k)(b)6.a.a. For taxable years beginning after December 31, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under
s. 71.02 or
71.08, as allocated under
par. (d), an amount equal to 11.5 percent of the amount by which the individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses for the taxable year exceed 50 percent of the average qualified research expenses for the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit. If the individual, partnership, tax-option corporation, or limited liability company had no qualified research expenses in any of the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit, the claimant may claim an amount equal to 5.75 percent of the individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses for the taxable year for which the claimant claims the credit.
71.07(4k)(b)6.b.
b. For purposes of
subd. 6. a., “qualified research expenses" means qualified research expenses as defined in section
41 of the Internal Revenue Code, except that “qualified research expenses" includes only expenses incurred by the individual, partnership, tax-option corporation, or limited liability company for research related to the design and manufacturing of energy efficient lighting systems, building automation and control systems, or automotive batteries for use in hybrid-electric vehicles, that reduce the demand for natural gas or electricity or improve the efficiency of its use, incurred for research conducted in this state for the taxable year and does not include compensation used in computing the credit under
sub. (2dx). Section
41 (f) (1), (2), (5), and (6) and (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
71.07(4k)(c)
(c)
Computation. For taxable years beginning before January 1, 2015, if in any taxable year a person claims a credit under
par. (b) 1.,
2., or
3., or any combination of those credits, the person may use a different computation method to calculate each of the credits and may choose to change the computation method once for each credit without the department's approval.
71.07(4k)(d)
(d)
Limitations. Partnerships, tax-option corporations, and limited liability companies may not claim a 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, tax-option corporation, or limited liability company shall compute the amount of the credit that each of its partners, shareholders, or members may claim and shall provide that information to each of them. Partners of a partnership, shareholders of tax-option corporations, and members of limited liability companies may claim the credit in proportion to their ownership interest.
71.07(4n)(a)1.b.
b. In the case of a truck, the control system and the fuel and drive train, excluding any comfort features located in the cab or the tires.
71.07(4n)(a)1.c.
c. In the case of a generator, the control modules, fuel train, fuel scrubbing process, fuel mixers, generator, heat exchangers, exhaust train, and similar components.
71.07(4n)(a)2.
2. “Internal combustion engine" includes substitute products such as fuel cell, electric, and hybrid drives.
71.07(4n)(a)3.
3. “Vehicle" means any vehicle or frame, including parts, accessories, and component technologies, in which or on which an engine is mounted for use in mobile or stationary applications. “Vehicle" includes any truck, tractor, motorcycle, snowmobile, all-terrain vehicle, boat, personal watercraft, generator, construction equipment, lawn and garden maintenance equipment, automobile, van, sports utility vehicle, motor home, bus, or aircraft.
71.07(4n)(b)1.1. Subject to the limitations provided in this subsection, and except as provided in
subds. 2. and
3., for taxable years beginning after December 31, 2012, and before January 1, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under
s. 71.02, as allocated under
par. (c), an amount equal to 5 percent of the amount paid or incurred by the individual, partnership, tax-option corporation, or limited liability company during the taxable year to construct and equip new facilities or expand existing facilities used in this state for qualified research, as defined in section
41 of the Internal Revenue Code. Eligible amounts include only amounts paid or incurred for tangible, depreciable property but do not include amounts paid or incurred for replacement property.
71.07(4n)(b)2.
2. For taxable years beginning after December 31, 2012, and before January 1, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under
s. 71.02, as allocated under
par. (c), an amount equal to 10 percent of the amount paid or incurred by the individual, partnership, tax-option corporation, or limited liability company during the taxable year to construct and equip new facilities or expand existing facilities used in this state for qualified research, as defined in section
41 of the Internal Revenue Code, except that “qualified research expenses" includes only expenses paid or incurred by the individual, partnership, tax-option corporation, or limited liability company for research related to designing internal combustion engines for vehicles, including expenses related to designing vehicles that are powered by such engines and improving production processes for such engines and vehicles. Eligible amounts include only amounts paid or incurred for tangible, depreciable property but do not include amounts paid or incurred for replacement property.
71.07(4n)(b)3.
3. For taxable years beginning after December 31, 2012, and before January 1, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under
s. 71.02, as allocated under
par. (c), an amount equal to 10 percent of the amount paid or incurred by the individual, partnership, tax-option corporation, or limited liability company during the taxable year to construct and equip new facilities or expand existing facilities used in this state for qualified research, as defined in section
41 of the Internal Revenue Code, except that “qualified research expenses" includes only expenses paid or incurred by the individual, partnership, tax-option corporation, or limited liability company for research related to the design and manufacturing of energy efficient lighting systems, building automation and control systems, or automotive batteries for use in hybrid-electric vehicles, that reduce the demand for natural gas or electricity or improve the efficiency of its use. Eligible amounts include only amounts paid or incurred for tangible, depreciable property but do not include amounts paid or incurred for replacement property.
71.07(4n)(c)
(c)
Limitations. Partnerships, tax-option corporations, and limited liability companies may not claim a 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, tax-option corporation, or limited liability company shall compute the amount of the credit that each of its partners, shareholders, or members may claim and shall provide that information to each of them. Partners of a partnership, shareholders of tax-option corporations, and members of limited liability companies may claim the credit in proportion to their ownership interest.
71.07(4n)(e)
(e)
Sunset. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013. Credits under this subsection for taxable years that begin before January 1, 2014, may be carried forward to taxable years that begin after December 31, 2013.
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 percent 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)9.
9. The amount claimed as a deduction for unreimbursed medical expenses under section
213 (a) of the Internal Revenue Code to the extent that the funds used to pay for the unreimbursed expenses for which the deduction was claimed were withdrawn from an ABLE account described under section
529A (b) (1) of the Internal Revenue Code.
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.
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. Except as provided under
s. 238.15 (3) (d) (intro.), for investments made 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.
238.15 or s.
560.205, 2009 stats., 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.
