71.28(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.
71.28(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.
71.28(3rn)(d)2.
2. If the allowable amount of the claim under
par. (b) exceeds the tax otherwise due under
s. 71.23, 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).
71.28 Cross-reference
Cross-reference: See also ch.
ATCP 165, Wis. adm. code.
71.28(3rn)(d)3.
3. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013.
71.28(3t)
(3t) Manufacturing investment credit. 71.28(3t)(a)(a)
Definition. In this subsection, “claimant" means a person who files a claim under this subsection.
71.28(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. 71.23, up to the amount of the tax, an amount equal to the claimant's unused credits under
s. 71.28 (3).
71.28(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.
71.28(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. 71.28 (3). 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.
71.28(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.
71.28(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.
71.28(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.
71.28(3w)(a)5.
5. “State payroll" means the amount of payroll apportioned to this state, as determined under
s. 71.25 (8).
71.28(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.
71.28(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.
71.28(3w)(a)5m.
5m. “Wages" means wages under section
3306 (b) of the Internal Revenue Code, determined without regard to any dollar limitations.
71.28(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.
71.28(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. 71.23 an amount calculated as follows:
71.28(3w)(b)1.a.
a. The number of full-time employees whose annual wages are greater than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage 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 the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage 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.
71.28(3w)(b)1.b.
b. The number of full-time employees whose annual wages are greater than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage 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 the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage 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.
71.28(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 the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage 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 the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage 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.
71.28(3w)(b)3.
3. For employees in a tier I county or municipality, subtract the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage 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.
71.28(3w)(b)4.
4. Multiply the amount determined under
subd. 3. by the amount determined under
subd. 1.
71.28(3w)(b)5.
5. Multiply the amount determined under
subd. 4. by the percentage determined under s.
238.399 or s.
560.799, 2009 stats., not to exceed 7 percent.
71.28(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.
71.23 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.
71.28(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.
71.23 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 the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage 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.
71.28(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. 71.23 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.
71.28(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. 71.23, 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.
71.28(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. 71.23, 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).
71.28(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.
71.28(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.
71.28(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.
71.28(3w)(d)
(d)
Administration. Subsection (4) (g) and
(h), as it applies to the credit under
sub. (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.
71.28 Note
NOTE: The correct cross-reference is shown in brackets. Corrective legislation is pending.
71.28(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
s. 71.23 all of the following:
71.28(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.
71.28(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.
71.28(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.
71.28(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.
71.28(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.
71.28(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.
71.28(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.
71.28(3y)(d)2.
2. If the allowable amount of the claim under
par. (b) exceeds the tax otherwise due under
s. 71.23, 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).
71.28(4)(ab)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.
71.28(4)(ab)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.
71.28(4)(ab)2.
2. “Internal combustion engine" includes substitute products such as fuel cell, electric, and hybrid drives.
71.28(4)(ab)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.
71.28(4)(ad)1.1. Except as provided in
subds. 2. and
3., for taxable years beginning before January 1, 2015, any corporation may credit against taxes otherwise due under this chapter an amount equal to 5 percent of the amount obtained by subtracting from the corporation'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 claimant, 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. (af), and except that “qualified research expenses" does not include compensation used in computing the credit under
sub. (1dx), the corporation'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
s. 71.25 (9) (b) 1. and
2.,
(df) 1. and
2.,
(dh) 1.,
2., and
3.,
(dj), and
(dk). Section
41 (h) of the Internal Revenue Code does not apply to the credit under this paragraph.
71.28(4)(ad)2.
2. For taxable years beginning after June 30, 2007, and before January 1, 2015, any corporation may credit against taxes otherwise due under this chapter an amount equal to 10 percent of the amount obtained by subtracting from the corporation'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 claimant 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. (af), and except that “qualified research expenses" does not include compensation used in computing the credit under
sub. (1dx), the corporation'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
s. 71.25 (9) (b) 1. and
2.,
(df) 1. and
2.,
(dh) 1.,
2., and
3.,
(dj), and
(dk). Section
41 (h) of the Internal Revenue Code does not apply to the credit under this paragraph.
71.28(4)(ad)3.
3. For taxable years beginning after June 30, 2007, and before January 1, 2015, any corporation may credit against taxes otherwise due under this chapter an amount equal to 10 percent of the amount obtained by subtracting from the corporation'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 claimant 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. (af), and except that “qualified research expenses" does not include compensation used in computing the credit under
sub. (1dx), the corporation'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
s. 71.25 (9) (b) 1. and
2.,
(df),
1. and
2.,
(dh) 1.,
2., and
3.,
(dj), and
(dk). Section
41 (h) of the Internal Revenue Code does not apply to the credit under this paragraph.
71.28(4)(ad)4.a.a. Except as provided in
subds. 5. and
6., for taxable years beginning after December 31, 2014, a corporation may claim a credit against the tax imposed under
s. 71.23, as allocated under
par. (d), an amount equal to 5.75 percent of the amount by which the corporation'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 corporation 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 corporation's qualified research expenses for the taxable year for which the claimant claims the credit.
71.28(4)(ad)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 claimant, incurred for research conducted in this state for the taxable year and does not include compensation used in computing the credit under
sub. (1dx), the corporation's base amount. Section
41 (f) (1), (2), (5), and (6) and (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
71.28(4)(ad)5.a.a. For taxable years beginning after December 31, 2014, a corporation may claim a credit against the tax imposed under
s. 71.23, as allocated under
par. (d), an amount equal to 11.5 percent of the amount by which the corporation'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 corporation 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 corporation's qualified research expenses for the taxable year for which the claimant claims the credit.
71.28(4)(ad)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 claimant 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. (1dx). Section
41 (f) (1), (2), (5), and (6) and (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
71.28(4)(ad)6.a.a. For taxable years beginning after December 31, 2014, a corporation may claim a credit against the tax imposed under
s. 71.23, as allocated under
par. (d), an amount equal to 11.5 percent of the amount by which the corporation'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 corporation 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 corporation's qualified research expenses for the taxable year for which the claimant claims the credit.
71.28(4)(ad)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 claimant 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. (1dx). Section
41 (f) (1), (2), (5), and (6) and (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
71.28(4)(af)
(af)
Computation. For taxable years beginning before January 1, 2015, if in any taxable year a corporation claims a credit under
par. (ad) 1.,
2., or
3., or any combination of those credits, the corporation 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.
71.28(4)(am)
(am)
Development zone additional research credit. 71.28(4)(am)1.1. In addition to the credit under
par. (ad), any corporation may credit against taxes otherwise due under this chapter an amount equal to 5 percent of the amount obtained by subtracting from the corporation's qualified research expenses, as defined in section
41 of the Internal Revenue Code, except that “qualified research expenses" include only expenses incurred by the claimant in a development zone under
subch. II of ch. 238 or subch.
VI of ch. 560, 2009 stats., 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 and except that “qualified research expenses" does not include research expenses incurred before the claimant is certified for tax benefits under s.
238.365 (3) or s.
560.765 (3), 2009 stats., or the corporation's base amount, as defined in section
41 (c) of the Internal Revenue Code, in a development zone, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under s.
71.25 (9) (b) 1. and
2.,
(df) 1. and
2.,
(dh) 1.,
2., and
3.,
(dj), and
(dk) and research expenses used in calculating the base amount include research expenses incurred before the claimant is certified for tax benefits under s.
238.365 (3) or s.
560.765 (3), 2009 stats., in a development zone, if the claimant submits with the claimant's return a copy of the claimant's certification for tax benefits under s.
238.365 (3) or s.
560.765 (3), 2009 stats., and a statement from the department of commerce or the Wisconsin Economic Development Corporation verifying the claimant's qualified research expenses for research conducted exclusively in a development zone. The rules under
s. 73.03 (35) apply to the credit under this subdivision. Section
41 (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
71.28(4)(am)2.
2. The development zones credit under
subd. 1., as it applies to a person certified under s.
238.365 (3) or s.
560.765 (3), 2009 stats., applies to a corporation that conducts economic activity in a development opportunity zone under s.
238.395 (1) or s.
560.795 (1), 2009 stats., and that is entitled to tax benefits under s.
238.395 (3) or s.
560.795 (3), 2009 stats., subject to the limits under s.
238.395 (2) or s.
560.795 (2), 2009 stats. A development opportunity zone credit under this subdivision may be calculated using expenses incurred by a claimant beginning on the effective date under s.
238.395 (2) (a) or s.
560.795 (2) (a), 2009 stats., of the development opportunity zone designation of the area in which the claimant conducts economic activity.
71.28(4)(am)3.
3. No credit may be claimed under this paragraph for taxable years that begin on January 1, 1998, or thereafter. Credits under this paragraph for taxable years that begin before January 1, 1998, may be carried forward to taxable years that begin on January 1, 1998, and thereafter.
