71.07(9m)
(9m) Supplement to federal historic rehabilitation credit. 71.07(9m)(a)1m.1m. For taxable years beginning before January 1, 2014, any person may credit against taxes otherwise due under this chapter, up to the amount of those taxes, an amount equal to 5 percent, for taxable years beginning before January 1, 2013, or 10 percent, for taxable years beginning after December 31, 2012, and before January 1, 2014, 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, and before January 1, 2014.
71.07(9m)(a)2m.
2m. For taxable years beginning after December 31, 2013, any person may claim as a credit against taxes otherwise due under
s. 71.02 or
71.08, up to the amount of those taxes, an amount equal to 20 percent 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 cost of the person's qualified rehabilitation expenditures is at least $50,000 and the rehabilitated property is placed in service after December 31, 2013.
71.07(9m)(a)3.
3. For taxable years beginning after December 31, 2013, any person may claim as a credit against taxes otherwise due under
s. 71.02 or
71.08, up to the amount of those taxes, an amount equal to 20 percent of the costs of qualified rehabilitation expenditures, as defined in section
47 (c) (2) of the Internal Revenue Code, for qualified rehabilitated buildings, as defined in section
47 (c) (1) of the Internal Revenue Code, on property located in this state, if the cost of the person's qualified rehabilitation expenditures is at least $50,000 and the rehabilitated property is placed in service after December 31, 2013, and regardless of whether the rehabilitated property is used for multiple or revenue-producing purposes. No credit may be claimed under this subdivision for property listed as a contributing building in the state register of historic places or in the national register of historic places and no credit may be claimed under this subdivision for nonhistoric, nonresidential property converted into housing if the property has been previously used for housing.
71.07(9m)(c)
(c) No person may claim the credit under
par. (a) 2m. unless the claimant includes with the claimant's return a copy of the claimant's certification under
s. 238.17. For certification purposes under
s. 238.17, the claimant shall provide to the Wisconsin Economic Development Corporation all of the following:
71.07(9m)(c)1.
1. 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 state historic preservation officer.
71.07(9m)(c)2.
2. Evidence that the taxpayer obtained written certification from the state historic preservation officer that:
71.07(9m)(c)2.a.
a. The property is listed on the national register of historic places in Wisconsin or the state register of historic places, or is determined by the state historical society to be eligible for listing on the national register of historic places in Wisconsin or the state register of historic places, or is located in a historic district that is listed in the national register of historic places in Wisconsin or the state register of historic places and is certified by the state historic preservation officer as being of historic significance to the district, or is an outbuilding of an otherwise eligible property certified by the state historic preservation officer as contributing to the historic significance of the property.
71.07(9m)(c)2.b.
b. The proposed preservation or rehabilitation plan complies with standards promulgated under
s. 44.02 (24) and the completed preservation or rehabilitation substantially complies with the proposed plan.
71.07(9m)(c)2.c.
c. The costs are not incurred to acquire any building or interest in a building or to enlarge an existing building.
71.07(9m)(c)2.d.
d. The costs were not incurred before the state historical society approved the proposed preservation or rehabilitation plan.
71.07(9m)(cm)
(cm) Any credit claimed under this subsection for Wisconsin purposes shall be claimed at the same time as for federal purposes.
71.07(9m)(cn)
(cn) For taxable years beginning after December 31, 2014, the Wisconsin Economic Development Corporation shall certify a person to claim a credit under
par. (a) 3. if all of the following apply:
71.07(9m)(cn)1.
1. The corporation previously certified the person to claim a credit under
par. (a) 3. for any taxable year beginning before January 1, 2015.
71.07(9m)(cn)2.
2. The proposed project for which the person wishes to claim a credit under this paragraph for any taxable year beginning after December 31, 2014, is located in the city of Green Bay.
71.07(9m)(cn)3.
3. The proposed project described under
subd. 2. is located on the same parcel as the project for which the person received certification under
subd. 1. or on a parcel that is contiguous to the project for which the person received certification under
subd. 1.
71.07(9m)(cn)4.
4. The corporation determines that the person is eligible to claim the credit under section
47 of the Internal Revenue Code for the qualified rehabilitation expenses incurred for the project for which the person received certification under
subd. 1.
71.07(9m)(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.
71.07(9m)(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, 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.
71.07(9m)(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.
71.07(9m)(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). If the department adjusts or disallows, in whole or in part, a credit transferred under
par. (h), only the person who originally transferred the credit to another person is liable to repay the adjusted or disallowed amount.
71.07 Cross-reference
Cross-reference: See also s.
Tax 2.956, Wis. adm. code.
71.07(9m)(h)
(h) Any person, including a nonprofit entity described in section
501 (c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under
par. (a) 2m. or
3., in whole or in part, to another person who is subject to the taxes imposed under
s. 71.02,
71.08,
71.23, or
71.43, if the person notifies the department of the transfer, and submits with the notification a copy of the transfer documents, and the department certifies ownership of the credit with each transfer.
71.07(9r)
(9r) State historic rehabilitation credit. 71.07(9r)(a)(a) For taxable years beginning on or after August 1, 1988, any natural person may credit against taxes otherwise due under
s. 71.02 or
71.08 an amount equal to 25 percent of the costs of preservation or rehabilitation of historic property located in this state, including architectural fees and costs incurred in preparing nomination forms for listing in the national register of historic places in Wisconsin or the state register of historic places, if the nomination is made within 5 years prior to submission of a preservation or rehabilitation plan under
par. (b) 3. b., and if the physical work of construction or destruction in preparation for construction begins after December 31, 1988, except that the credit may not exceed $10,000, or $5,000 for married persons filing separately, for any preservation or rehabilitation project.
71.07 Cross-reference
Cross-reference: See also s.
Tax 2.956, Wis. adm. code.
71.07(9r)(b)
(b) The department of revenue shall approve the credit under this subsection if all of the following conditions are met:
71.07(9r)(b)1.
1. The costs are incurred and the claim is submitted by the owner of the historic property.
71.07(9r)(b)1m.
1m. The costs included in the claim relate only to preservation or rehabilitation work done to any of the following:
71.07(9r)(b)1m.b.
b. The interior of a window sash if work is done to the exterior of the window sash.
71.07(9r)(b)1m.e.
e. Electrical or plumbing systems, but not electrical or plumbing fixtures.
71.07(9r)(b)2.
2. The historic property, including outbuildings that contribute to the significance of the historic property, is an owner-occupied personal residence if the residence is not actively used in a trade or business, held for the production of income or held for sale or other disposition in the ordinary course of the claimant's trade or business.
71.07(9r)(b)3.a.
a. The property is listed on the national register of historic places in Wisconsin or the state register of historic places, or is determined by the state historical society to be eligible for listing on the national register of historic places in Wisconsin or the state register of historic places, or is located in a historic district which is listed in the national register of historic places in Wisconsin or the state register of historic places and is certified by the state historic preservation officer as being of historic significance to the district, or is an outbuilding of an otherwise eligible property certified by the state historic preservation officer as contributing to the historic significance of the property.
71.07(9r)(b)3.b.
b. The proposed preservation or rehabilitation plan complies with standards promulgated under
s. 44.02 (24) and the completed preservation or rehabilitation substantially complies with the proposed plan.
71.07(9r)(b)4.
4. The preservation or rehabilitation work is completed within 2 years after the date that the physical work of construction or destruction in preparation for construction begins, except in the case of any preservation or rehabilitation which is initially planned for completion in phases, in which case the work shall be completed within 5 years after the date that the physical work of construction or destruction in preparation for construction begins.
71.07(9r)(b)5.
5. The expenditures for preservation or rehabilitation of the historic property exceed $10,000.
71.07(9r)(b)6.
6. The costs are not incurred to acquire any building or interest in a building or to enlarge existing building.
71.07(9r)(b)7.
7. The costs were not incurred before the state historical society approved the proposed preservation or rehabilitation plan under
subd. 3. b.
71.07(9r)(c)
(c) The Wisconsin adjusted basis of the historic property shall be reduced by the amount of any credit awarded under this subsection.
71.07(9r)(f)
(f) No natural person may claim a credit under this subsection and under
sub. (9m) for the same expenses.
71.07(9r)(i)
(i) If the historic property is owned by 2 or more natural persons that hold legal title or equitable title as a land contract vendee and are not joint tenants, tenants in common or spouses owning marital property, the credit under this subsection may be claimed as follows:
71.07(9r)(i)1.
1. For projects benefiting one owner, a natural person may claim the credit based on eligible costs incurred individually.
71.07(9r)(i)2.
2. For projects benefiting 2 or more owners, a natural person may claim the credit based on eligible costs incurred by the benefiting owners in proportion to the natural person's ownership interest.
71.07(9r)(j)
(j) No natural person may claim the credit under this subsection for any of the following:
71.07(9r)(j)2.
2. Rehabilitation of historic property if the historic property was acquired by the claimant under an agreement requiring the claimant to sell or otherwise dispose of the historic property back to the previous owner within 5 years after the date that the historic property was acquired.
71.07(9r)(k)
(k) A natural person who receives a credit under this subsection shall add to his or her liability for taxes imposed under
s. 71.02 one of the following percentages of the amount of the credits received under this subsection for rehabilitating or preserving the property if, within 5 years after the date on which the preservation or rehabilitation work that was the basis of the credit is completed, the person either sells or conveys the property by deed or land contract or the state historical society certifies to the department of revenue that the historic property has been altered to the extent that it does not comply with the standards promulgated under
s. 44.02 (24):
71.07(9r)(k)1.
1. If the sale, conveyance or noncompliance occurs during the first year after the date on which the preservation or rehabilitation is completed, 100 percent.
71.07(9r)(k)2.
2. If the sale, conveyance or noncompliance occurs during the 2nd year after the date on which the preservation or rehabilitation is completed, 80 percent.
71.07(9r)(k)3.
3. If the sale, conveyance or noncompliance occurs during the 3rd year after the date on which the preservation or rehabilitation is completed, 60 percent.
71.07(9r)(k)4.
4. If the sale, conveyance or noncompliance occurs during the 4th year after the date on which the preservation or rehabilitation is completed, 40 percent.
71.07(9r)(k)5.
5. If the sale, conveyance or noncompliance occurs during the 5th year after the date on which the preservation or rehabilitation is completed, 20 percent.
71.07 Cross-reference
Cross-reference: See also ch.
HS 3, Wis. adm. code.
71.07 History
History: 1987 a. 312;
1987 a. 411 ss.
63,
79 to
82,
85,
86;
1987 a. 419,
422;
1989 a. 31,
44,
56,
100,
359;
1991 a. 39,
269,
292;
1993 a. 16,
112,
204,
471,
491;
1995 a. 27 ss.
3377m to
3393m,
9116 (5);
1995 a. 209,
227,
400,
453;
1997 a. 27,
41,
237,
299;
1999 a. 5,
9,
10,
32;
1999 a. 150 s.
672;
1999 a. 198;
2001 a. 16,
109;
2003 a. 72,
99,
135,
183,
255,
267,
326;
2005 a. 25,
49,
72,
74,
97,
177,
254,
361,
387,
479,
483,
487;
2007 a. 11,
20,
96,
97,
100;
2009 a. 2,
11,
28,
180,
185,
265,
267,
269,
276,
294,
295,
332,
401;
2011 a. 15,
32,
67,
212,
213,
232,
237;
2011 a. 260 s.
80;
2013 a. 20,
54,
62,
116,
145;
2013 a. 166 s.
77;
2015 a. 55,
186; s.
2015 a. 197 s.
51; s.
2015 a. 237,
312; s. 35.17 correction in
(2dx) (a) 3., 5., (e) 2., (9m) (cn) (intro.).
71.07 Annotation
Wisconsin's Qualified New Business Venture Program: Building on the Foundation to Maximize Entrepreneurial Growth. Herdrich. 2014 WLR 1031.
71.08(1)(1)
Imposition. If the tax imposed on a natural person, married couple filing jointly, trust, or estate under
s. 71.02, not considering the credits under
ss. 71.07 (1),
(2dx),
(2dy),
(3m),
(3n),
(3p),
(3q),
(3r),
(3rm),
(3rn),
(3s),
(3t),
(3w),
(3y),
(4k),
(5b),
(5d),
(5e),
(5f),
(5h),
(5i),
(5j),
(5n),
(6),
(6e),
(8r),
(9e),
(9m), and
(9r),
71.28 (1dx),
(1dy),
(2m),
(3),
(3n),
(3t),
(3w), and
(3y),
71.47 (1dx),
(1dy),
(2m),
(3),
(3n),
(3t),
(3w), and
(3y),
71.57 to
71.61, and
71.613 and
subch. VIII and payments to other states under
s. 71.07 (7), is less than the tax under this section, there is imposed on that natural person, married couple filing jointly, trust or estate, instead of the tax under
s. 71.02, an alternative minimum tax computed as follows:
71.08(1)(a)
(a) Adjust the alternative minimum taxable income, as defined in section
55 (b) (2) of the internal revenue code, by the amounts under
s. 71.05 (6) to
(21), except
s. 71.05 (6) (a) 13. and
(b) 5. and
(8), by the amounts needed to modify federal alternative tax net operating loss deductions to reflect differences between Wisconsin net operating loss deductions and federal net operating loss deductions for minimum tax purposes. The department of revenue shall by rule define Wisconsin net operating loss deductions for minimum tax purposes.
71.08(1)(b)
(b) Subtract the amount under section
57 (a) (5) of the internal revenue code from the amount under
par. (a).
71.08(1)(bm)
(bm) For stocks acquired after December 31, 1987, under incentive stock options, as defined in section
422A (b) of the internal revenue code:
71.08(1)(bm)1.
1. At the time that the incentive stock option is included in alternative minimum taxable income under section
56 (b) (3) of the internal revenue code, subtract from the amount in
par. (b) 20 percent of the amount included in federal alternative minimum taxable income under section
56 (b) (3) of the internal revenue code.
71.08(1)(bm)2.
2. At the time that the stock that was subject to
subd. 1. is disposed of, add 20 percent of the gain or loss adjustment resulting from the basis adjustment made under section
56 (b) (3) of the internal revenue code to the amount in
par. (b).
71.08(1)(c)
(c) For nonresidents and part-year residents, adjust the amount under
par. (bm) so that itemized deductions and personal exemptions are prorated on the basis of the ratio of Wisconsin adjusted gross income to federal adjusted gross income.
71.08(1)(d)
(d) Subtract from the amount under
par. (c) the appropriate amount under section 55 (d) (1), (3), and (4) of the federal Internal Revenue Code in effect for the taxable year; except that surviving spouses shall be treated as single individuals; except that the amount under
par. (c), not the federal alternative minimum taxable income, shall be used in calculating the phase-out and except that for nonresidents and part-year residents the amount under section 55 (d) (1), (3), and (4) of the federal Internal Revenue Code in effect for the taxable year shall be prorated on the basis of the ratio of Wisconsin adjusted gross income to federal adjusted gross income.
71.08(2)
(2) Joint liability. If the requirements under
sub. (1) are applicable and the spouses file a joint income tax return, they shall file a joint minimum tax return and are jointly and severally liable for the tax imposed under
sub. (1) and for the interest, penalties, fees, additions to tax and additional assessments with respect to the tax.
71.08(3)
(3) Administration. The department of revenue shall have full power to impose, enforce and collect the minimum tax provided in this section and may take any action, conduct any proceeding and in all respects proceed as it is authorized in respect to income taxes imposed in this chapter. The income tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest and penalties shall apply to the minimum tax.
71.08(4)
(4) Tax benefit rule. The department of revenue shall promulgate rules to provide that the amount under
sub. (1) may be reduced to prevent the inclusion of any amounts, except the federal standard deductions, itemized deductions and personal exemptions, that do not reflect a benefit in respect to the tax imposed under
s. 71.02.
71.08 History
History: 1987 a. 312,
411;
1989 a. 31;
1991 a. 39;
1995 a. 27,
209;
1997 a. 27,
237;
1999 a. 9;
2001 a. 109;
2003 a. 99,
135,
255,
326;
2005 a. 25,
177,
361,
479,
483;
2007 a. 20,
97;
2009 a. 2,
28,
269,
295;
2011 a. 260 ss.
24,
80;
2013 a. 62,
145;
2015 a. 55.
71.09
71.09
Payment of estimated taxes. 71.09(1)
(1)
Definitions. In this section:
71.09(1)(a)
(a) “Farmers or fishers" are individuals, estates or trusts whose estimated gross income from farming or fishing for the taxable year is at least two-thirds of the total estimated gross income from all sources for the taxable year or individuals, estates or trusts whose gross income from farming or fishing for the preceding taxable year was at least two-thirds of the total gross income from all sources shown on that return. If a person files a joint return, the income of both that person and that person's spouse shall be considered in determining whether the person is a farmer or fisher.
71.09(1)(am)
(am) “Return" means a return that would show the tax properly due.
71.09(1)(b)
(b) “Tax shown on the return" and “tax for the taxable year" mean the net tax imposed under
s. 71.02 after reduction for exemptions to, and credits against, that tax but before reduction by amounts withheld under
subch. X and before reduction for amounts paid as estimated tax under this section for that tax plus the tax imposed under
s. 71.08 before reduction for amounts paid as estimated tax under this section for that tax plus the surcharge imposed under
s. 77.93 before reduction for amounts paid as estimated tax under this section for that surcharge.
71.09(2)
(2) Who shall pay. Every individual, estate and trust deriving income subject to taxation under this chapter, other than wages as defined in
s. 71.63 (6) upon which taxes are withheld by the individual's employer under
subch. X, shall pay estimated income tax, the surcharge under
s. 77.93 and alternative minimum tax. This section does not apply to any person on active duty with the U.S. armed forces while stationed outside the continental United States. This section does not apply to any taxable year ending before the date 2 years after the date of a decedent's death with respect to the estate of such decedent or any trust all of which is treated under subpart E of part I of subchapter J of
chapter 1 of the internal revenue code as owned by the decedent and to which the residue of the decedent's estate will pass under his or her will. This section does not apply to any trust that is subject to tax under this chapter on unrelated business taxable income as defined under section
512 of the internal revenue code. Those trusts are subject to estimated tax payments under
s. 71.29.
71.09(3)
(3) Farmers or fishers. Payments of estimated income tax required by
sub. (2) from farmers or fishers may be made at any time on or before the 15th day of the first month of the succeeding taxable year.
71.09(4)
(4) Farmers or fishers exception. Except as provided in
sub. (1) (am), if on or before the first day of the 3rd month of the succeeding taxable year a farmer or a fisher files a return for the taxable year, for which estimated taxes were required on or before the 15th day of the first month of the succeeding taxable year under
sub. (3), and pays in full the amount computed on the return as payable, then that payment satisfies any required estimated tax installments.
71.09(5)
(5) Amount. The amount of the estimated income tax shall be the total estimated tax, including surtaxes, if any, reduced by the amount, if any, the individual, estate or trust determines will be withheld from wages pursuant to
subch. X.
71.09(7)
(7) Refund carry-forward. If the taxpayer claims a refund on any tax return and, concurrent with or subsequent to the filing of the return upon which such refund is claimed, is required to pay an estimated tax, and at the time of paying that tax the refund has not been paid, he or she may deduct the amount of such refund from the first installment of estimated taxes, and any excess from the succeeding installments. If a refund is paid after the due date of the last installment, its receipt shall be reflected on the income tax return covering the year. If the refund is disallowed in whole or in part after the due date of the last installment, that disallowance must be reflected on the income tax return covering the year.
71.09(8)
(8) Prepayments. Any installment of the estimated tax under this section may be paid prior to the date prescribed for its payment.
71.09(9)
(9) Short year. Application of this section to taxable years of less than 12 full months shall be made pursuant to rules of the department.
71.09 Cross-reference
Cross-reference: See also s.
Tax 2.89, Wis. adm. code.
