71.07(5j)(d)2.
2. 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(5k)
(5k) Community rehabilitation program credit. 71.07(5k)(a)1.
1. “Claimant" means a person who files a claim under this subsection.
71.07(5k)(a)2.
2. “Community rehabilitation program" means a nonprofit entity, county, municipality, or state or federal agency that directly provides, or facilitates the provision of, vocational rehabilitation services to individuals who have disabilities to maximize the employment opportunities, including career advancement, of such individuals.
71.07(5k)(a)3.
3. “Vocational rehabilitation services" include education, training, employment, counseling, therapy, placement, and case management.
71.07(5k)(a)4.
4. “Work" includes production, packaging, assembly, food service, custodial service, clerical service, and other commercial activities that improve employment opportunities for individuals who have disabilities.
71.07(5k)(b)
(b)
Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after July 1, 2011, a claimant may claim as a credit against the tax imposed under
s. 71.02, up to the amount of those taxes, an amount equal to 5 percent of the amount the claimant paid in the taxable year to a community rehabilitation program to perform work for the claimant's business, pursuant to a contract.
71.07(5k)(c)1.1. The maximum amount of the credit that any claimant may claim under this subsection in a taxable year is $25,000 for each community rehabilitation program for which the claimant enters into a contract to have the community rehabilitation program perform work for the claimant's business.
71.07(5k)(c)2.
2. No credit may be claimed under this subsection unless the claimant submits with the claimant's return a form, as prescribed by the department of revenue, that verifies that the claimant has entered into a contract with a community rehabilitation program and that the program has received payment from the claimant for work provided by the program, consistent with
par. (b).
71.07(5k)(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 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(5m)(a)1.
1. “Claimant" means an individual who is eligible to claim the credit under this subsection.
71.07(5m)(a)3.
3. “Household" means a claimant and an individual related to the claimant as husband or wife.
71.07(5m)(a)4.
4. “Net tax liability" means a claimant's income tax liability after he or she completes the computations listed in
s. 71.10 (4) (a) to
(d).
71.07(5m)(b)
(b)
Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under
s. 71.02, up to the amount of those taxes, one of the following amounts:
71.07(5m)(b)1.
1. If the claimant is single and his or her adjusted gross income is less than $9,000 in the year to which the claim relates, an amount equal to his or her net tax liability.
71.07(5m)(b)2.
2. If the claimant is single and his or her adjusted gross income is at least $9,000 but less than $10,000 in the year to which the claim relates, an amount that is calculated as follows:
71.07(5m)(b)2.a.
a. Calculate the value of a fraction, the denominator of which is $1,000 and the numerator of which is the difference between the claimant's adjusted gross income and $9,000.
71.07(5m)(b)2.c.
c. Multiply the amount of the claimant's net income tax liability by the amount that is calculated under
subd. 2. b.
71.07(5m)(b)3.
3. If the claimant is married and filing jointly and the sum of the claimant's adjusted gross income and his or her spouse's adjusted gross income is less than $18,000 in the year to which the claim relates, an amount equal to the married couple's net tax liability.
71.07(5m)(b)4.
4. If the claimant is married and filing jointly and the sum of the claimant's adjusted gross income and his or her spouse's adjusted gross income is at least $18,000 but less than $19,000 in the year to which the claim relates, an amount that is calculated as follows:
71.07(5m)(b)4.a.
a. Calculate the value of a fraction, the denominator of which is $1,000 and the numerator of which is the difference between the married couple's adjusted gross income and $18,000.
71.07(5m)(b)4.c.
c. Multiply the amount of the married couple's net income tax liability by the amount that is calculated under
subd. 4. b.
71.07(5m)(b)5.
5. If the claimant is married and filing separately and his or her adjusted gross income is less than $9,000 in the year to which the claim relates, an amount equal to his or her net tax liability.
71.07(5m)(b)6.
6. If the claimant is married and filing separately and his or her adjusted gross income is at least $9,000 but less than $10,000 in the year to which the claim relates, an amount that is calculated as follows:
71.07(5m)(b)6.a.
a. Calculate the value of a fraction, the denominator of which is $1,000 and the numerator of which is the difference between the claimant's adjusted gross income and $9,000.
71.07(5m)(b)6.c.
c. Multiply the amount of the claimant's net income tax liability by the amount that is calculated under
subd. 6. b.
71.07(5m)(c)1.1. No credit may be allowed under this subsection unless it is claimed within the time period under
s. 71.75 (2).
71.07(5m)(c)2.
2. Part-year residents and nonresidents of this state are not eligible for the credit under this subsection.
71.07(5m)(c)3.
3. Except as provided in
subd. 4., only one credit per household is allowed each year.
71.07(5m)(c)4.
4. If a married couple files separately, each spouse may claim the credit calculated under
par. (b) 5. or
6., except a married person living apart from the other spouse and treated as single under section
7703 (b) of the Internal Revenue Code may claim the credit under
par. (b) 1. or
2.
71.07(5m)(c)5.
5. The credit under this subsection may not be claimed by a person who may be claimed as a dependent on the individual income tax return of another taxpayer.
71.07(5m)(d)
(d)
Administration. The department of revenue may enforce the credit under this subsection and may take any action, conduct any proceeding and proceed as it is authorized in respect to taxes under this chapter. The income tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest and penalties apply to the credit under this subsection.
71.07(5n)
(5n) Manufacturing and agriculture credit. 71.07(5n)(a)1.a.a. “Agriculture property factor" means a fraction, the numerator of which is the average value of the claimant's real property and improvements assessed under
s. 70.32 (2) (a) 4., owned or rented and used in this state by the claimant during the taxable year to produce, grow, or extract qualified production property, and the denominator of which is the average value of all of the claimant's real property and improvements owned or rented during the taxable year and used by the claimant to produce, grow, or extract qualified production property.
71.07(5n)(a)1.b.
b. For purposes of
subd. 1. a., property owned by the claimant is valued at its original cost and property rented by the claimant is valued at an amount equal to the annual rental paid by the claimant, less any annual rental received by the claimant from sub-rentals, multiplied by 8.
71.07(5n)(a)1.c.
c. For purposes of
subd. 1. a., the average value of property is determined by averaging the values at the beginning and ending of the taxable year, except that the secretary of revenue may require the averaging of monthly values during the taxable year, if such averaging is reasonably required to properly reflect the average value of the claimant's property.
71.07(5n)(a)2.
2. “Claimant" means a person who files a claim under this subsection.
71.07(5n)(a)3.
3. “Direct costs" includes all of the claimant's ordinary and necessary expenses paid or incurred during the taxable year in carrying on the trade or business that are deductible as business expenses under the Internal Revenue Code and identified as direct costs in the claimant's managerial or cost accounting records.
71.07(5n)(a)4.
4. “Indirect costs" includes all of the claimant's ordinary and necessary expenses paid or incurred during the taxable year in carrying on the trade or business that are deductible as business expenses under the Internal Revenue Code, other than cost of goods sold and direct costs, and identified as indirect costs in the claimant's managerial or cost accounting records.
71.07(5n)(a)5.a.a. “Manufacturing property factor" means a fraction, the numerator of which is the average value of the claimant's real and personal property assessed under
s. 70.995, owned or rented and used in this state by the claimant during the taxable year to manufacture qualified production property, and the denominator of which is the average value of all the claimant's real and personal property owned or rented during the taxable year and used by the claimant to manufacture qualified production property.
71.07(5n)(a)5.b.
b. For purposes of
subd. 5. a., property owned by the claimant is valued at its original cost and property rented by the claimant is valued at an amount equal to the annual rental paid by the claimant, less any annual rental received by the claimant from sub-rentals, multiplied by 8.
71.07(5n)(a)5.c.
c. For purposes of
subd. 5. a., the average value of property is determined by averaging the values at the beginning and ending of the taxable year, except that the secretary of revenue may require the averaging of monthly values during the taxable year, if such averaging is reasonably required to properly reflect the average value of the claimant's property.
71.07(5n)(a)5.d.
d. For purposes of
subd. 5. a., a claimant who the department approves to be classified as a manufacturer for purposes of
s. 70.995, but who is not eligible to be listed on the department's manufacturing roll until January 1 of the following year, may claim the credit in the year in which the manufacturing classification is approved.
71.07(5n)(a)6.
6. “Production gross receipts" means gross receipts from the lease, rental, license, sale, exchange, or other disposition of qualified production property.
71.07(5n)(a)7.
7. “Production gross receipts factor" means a fraction, the numerator of which is production gross receipts and the denominator of which is all gross income from whatever source, except for those items specifically excluded under the Internal Revenue Code as adopted by this state and otherwise excluded under Wisconsin law. For purposes of the denominator, income includes gross sales, gross dividends, gross interest income, gross rents, gross royalties, the gross sales price from the disposition of capital assets and business assets, gross income from pass-through entities, and all other gross receipts that are included in income, before apportionment for Wisconsin tax purposes under
s. 71.04 (4).
71.07(5n)(a)8.
8. “Qualified production activities income" means the amount of the claimant's production gross receipts for the taxable year that exceeds the sum of the cost of goods sold that are allocable to such receipts, the direct costs that are allocable to such receipts, and the indirect costs multiplied by the production gross receipts factor. “Qualified production activities income" does not include any of the following:
71.07(5n)(a)8.b.
b. Income from producing, transmitting, or distributing electricity, natural gas, or potable water.
71.07(5n)(a)8.d.
d. Income from engineering or architectural services performed with respect to constructing real property.
71.07(5n)(a)8.e.
e. Income from the sale of food and beverages prepared by the claimant at a retail establishment.
71.07(5n)(a)8.f.
f. Income from the lease, rental, license, sale, exchange, or other disposition of land.
71.07(5n)(a)9.
9. “Qualified production property" means either of the following:
71.07(5n)(a)9.a.
a. Tangible personal property manufactured in whole or in part by the claimant on property that is assessed as manufacturing property under
s. 70.995.
71.07(5n)(a)9.b.
b. Tangible personal property produced, grown, or extracted in whole or in part by the claimant on or from property assessed as agricultural property under
s. 70.32 (2) (a) 4.
71.07(5n)(b)
(b)
Filing claims. Subject to the limitations provided in this subsection, 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 one of the following percentages of the claimant's eligible qualified production activities income in the taxable year:
71.07(5n)(b)1.
1. For taxable years beginning after December 31, 2012, and before January 1, 2014, 1.875 percent.
71.07(5n)(b)2.
2. For taxable years beginning after December 31, 2013, and before January 1, 2015, 3.75 percent.
71.07(5n)(b)3.
3. For taxable years beginning after December 31, 2014, and before January 1, 2016, 5.025 percent.
71.07(5n)(b)4.
4. For taxable years beginning after December 31, 2015, 7.5 percent.
71.07(5n)(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 share of the income 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(5n)(c)2.
2. 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 on which the credit is computed.
71.07(5n)(c)3.
3. For shareholders of 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(5n)(c)4.
4. For partners of a partnership, the credit may be offset only against the tax imposed on the partner's distributive share of partnership income.
71.07(5n)(c)5.
5. For members of a limited liability company, the credit may be offset only against the tax imposed on the member's distributive share of the limited liability company's income.
71.07(5n)(d)2.
2. For purposes of determining a claimant's eligible qualified production activities income under this subsection, the claimant shall multiply the claimant's qualified production activities income from property manufactured by the claimant by the manufacturing property factor and qualified production activities income from property produced, grown, or extracted by the claimant by the agriculture property factor.
71.07(5r)
(5r) Postsecondary education credit. 71.07(5r)(a)1.
1. “Claimant" means a sole proprietor, a partner, a member of a limited liability company, or a shareholder of a tax-option corporation who files a claim under this subsection.
71.07(5r)(a)3.
3. “Family member" means a spouse or an individual related by blood, marriage, or adoption within the 3rd degree of kinship as computed under
s. 990.001 (16).
71.07(5r)(a)4.
4. “Managing employee" means an individual who wholly or partially exercises operational or managerial control over, or who directly or indirectly conducts, the operation of the claimant's business.
71.07(5r)(a)5.
5. “Paid or incurred" includes any amount paid by the claimant to reimburse an individual for the tuition that the individual paid or incurred.
