71.47(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.
71.43, 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.
71.47(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.
71.47(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.
71.43, 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.
71.47(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.
71.47(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.
71.47(4)(am)
(am)
Development zone additional research credit. 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 paragraph. Section
41 (h) of the Internal Revenue Code does not apply to the credit under this paragraph. 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, or thereafter.
71.47(4)(b)
(b)
Adjustments. For taxable year 1985 and subsequent years, adjustments for acquisitions and dispositions of a major portion of a trade or business shall be made under section
41 of the internal revenue code as limited by this subsection.
71.47(4)(c)
(c)
Annualization. In the case of any short taxable year, qualified research expenses shall be annualized as prescribed by the department of revenue.
71.47(4)(d)
(d)
Proration. If a portion of qualified research expenses is incurred partly within and partly outside this state and the amount incurred in this state cannot be accurately determined, a portion of the qualified expenses shall be reasonably allocated to this state. Expenses incurred entirely outside this state for the benefit of research in this state are not allocable to this state under this paragraph.
71.47(4)(e)
(e)
Change of business or ownership. In the case of a change in ownership or business of a corporation, section
383 of the internal revenue code, as limited by this subsection, applies to the carry over of unused credits.
71.47(4)(f)
(f)
Carry-over. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 15 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.
71.47(4)(g)
(g)
Administration. The department of revenue has full power to administer the credits provided in this subsection and may take any action, conduct any proceeding and proceed as it is authorized in respect to income and franchise taxes imposed in this chapter. The income and franchise tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest and penalties apply to the credits under this subsection.
71.47(4)(h)
(h)
Timely claim. No credit may be allowed under this subsection unless it is claimed within the period specified in s.
71.75 (2).
71.47(4)(i)
(i)
Nonclaimants. Except as provided in par.
(j), the credits under this subsection may not be claimed by a partnership, except a publicly traded partnership treated as a corporation under s.
71.22 (1k), limited liability company, except a limited liability company treated as a corporation under s.
71.22 (1k), or tax-option corporation or by partners, including partners of a publicly traded partnership, members of a limited liability company or shareholders of a tax-option corporation.
71.47(4)(j)
(j)
Pass-through entities. 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.
(ad). 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.
71.47(4)(k)
(k)
Refunds. Notwithstanding par.
(f), for taxable years beginning after December 31, 2017, if the allowable amount of the claim under par.
(ad) 4.,
5., or
6. exceeds the tax otherwise due under s.
71.43, all of the following apply:
71.47(4)(k)1.
1. The amount of the claim not used to offset the tax due, not to exceed 10 percent of the allowable amount of the claim under par.
(ad) 4.,
5., or
6., 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) (d).
71.47(4)(k)2.
2. The amount of the claim not used to offset the tax due and not certified for payment under subd.
1. may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 15 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.
71.47(4m)
(4m) Super research and development credit. 71.47(4m)(a)(a)
Definition. In this subsection, “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 conducted in this state for the taxable year and except that “qualified research expenses" does not include compensation used in computing the credit under sub.
(1dx).
71.47(4m)(b)
(b)
Credit. Subject to the limitations provided under this subsection, for taxable years beginning on or after January 1, 2011, a corporation may claim as a credit against the tax imposed under s.
71.43, up to the amount of those taxes, an amount equal to the amount of qualified research expenses paid or incurred by the corporation in the taxable year that exceeds the amount calculated as follows:
71.47(4m)(b)1.
1. Determine the average amount of the qualified research expenses paid or incurred by the corporation in the 3 taxable years immediately preceding the taxable year for which a credit is claimed under this subsection.
71.47(4m)(d)2.
2. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 5 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.
71.47(4m)(d)3.
3. 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.
71.47(5)
(5) Research facilities credit. 71.47(5)(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.
71.47(5)(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.
71.47(5)(ab)2.
2. “Internal combustion engine" includes substitute products such as fuel cell, electric, and hybrid drives.
71.47(5)(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.
71.47(5)(ad)1.1. Except as provided in subds.
2. and
3., for taxable year 1986 and for taxable years that begin before January 1, 2014, any corporation may credit against taxes otherwise due under this chapter an amount equal to 5 percent of the amount paid or incurred by that corporation 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.
71.47(5)(ad)2.
2. For taxable years beginning after June 30, 2007, and before January 1, 2014, any corporation may credit against taxes otherwise due under this chapter an amount equal to 10 percent of the amount paid or incurred by that corporation 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 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. Eligible amounts include only amounts paid or incurred for tangible, depreciable property but do not include amounts paid or incurred for replacement property.
71.47(5)(ad)3.
3. For taxable years beginning after June 30, 2007, and before January 1, 2014, any corporation may credit against taxes otherwise due under this chapter an amount equal to 10 percent of the amount paid or incurred by that corporation 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 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. Eligible amounts include only amounts paid or incurred for tangible, depreciable property but do not include amounts paid or incurred for replacement property.
71.47(5)(b)
(b)
Calculation and administration. Subsection
(4) (b) to
(i) as it relates to the credit under that subsection applies to the credit under this subsection.
71.47(5)(c)
(c)
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.
71.47(5b)
(5b) Early stage seed investment credit. 71.47(5b)(a)1.
1. “Claimant" means a person who files a claim under this subsection.
71.47(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 s.
71.43, 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.
71.47(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.
71.47(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.
71.47(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.
71.47(5b)(d)3.
3. Except as provided under s.
238.15 (3) (d), 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.
71.47(5e)(a)1.
1. “Claimant" means a person who files a claim under this subsection.
71.47(5e)(a)2.
2. “Internet equipment used in the broadband market" means equipment that is capable of transmitting data packets or Internet signals at speeds of at least 200 kilobits per second in either direction.
71.47(5e)(b)
(b)
Filing claims. Subject to the limitations provided in this subsection and subject to
2005 Wisconsin Act 479, section
17, beginning in the first taxable year following the taxable year in which the claimant claims a deduction under s.
77.585 (9), a claimant may claim as a credit against the taxes imposed under s.
71.43, up to the amount of those taxes, in each taxable year for 2 years, the amount of sales and use tax certified by the department of commerce that resulted from the claimant claiming a deduction under s.
77.585 (9).
71.47(5e)(c)1.1. No credit may be allowed under this subsection unless the claimant satisfies the requirements under s.
77.585 (9).
71.47(5e)(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 use of sales and use tax exemptions certified by the department of commerce as 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.
71.47(5e)(c)3.
3. The total amount of the credits and the sales and use tax resulting from the deductions claimed under s.
77.585 (9) that may be claimed by all claimants under this subsection and ss.
71.07 (5e),
71.28 (5e), and
77.585 (9) is $7,500,000, as determined by the department of commerce.
71.47(5e)(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.
71.47(5f)
(5f) Film production services credit. 71.47(5f)(a)1.
1. “Accredited production" means a film, video, broadcast advertisement, or television production, as approved by the department of commerce or the department of tourism, for which the aggregate salary and wages included in the cost of the production for the period ending 12 months after the month in which the principal filming or taping of the production begins exceeds $50,000. “Accredited production" also means an electronic game, as approved by the department of commerce or the department of tourism, for which the aggregate salary and wages included in the cost of the production for the period ending 36 months after the month in which the principal programming, filming, or taping of the production begins exceeds $100,000. “Accredited production" does not include any of the following, regardless of the production costs:
71.47(5f)(a)1.a.
a. News, current events, or public programming or a program that includes weather or market reports.
71.47(5f)(a)1.g.
g. A production for which the production company is required under
18 USC 2257 to maintain records with respect to a performer portrayed in a single media or multimedia program.
71.47(5f)(a)1.h.
h. A production produced primarily for industrial, corporate, or institutional purposes.
71.47(5f)(a)2.
2. “Claimant" means a person who files a claim under this subsection.
71.47(5f)(a)3.
3. “Production expenditures" means any expenditures that are incurred in this state and directly used to produce an accredited production, including expenditures for set construction and operation, wardrobes, make-up, clothing accessories, photography, sound recording, sound synchronization, sound mixing, lighting, editing, film processing, film transferring, special effects, visual effects, renting or leasing facilities or equipment, renting or leasing motor vehicles, food, lodging, and any other similar expenditure as determined by the department of commerce or the department of tourism. “Production expenditures" do not include salary, wages, or labor-related contract payments.
71.47(5f)(b)
(b)
Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s.
71.43 any of the following amounts:
71.47(5f)(b)1.
1. An amount equal to 25 percent of the salary, wages, or labor-related contract payments paid by the claimant in the taxable year to individuals, including actors, who were residents of this state at the time that they were paid and who worked on an accredited production in this state, not including the salary, wages, or contract payments paid to any individual who was paid more than $250,000.
71.47(5f)(b)3.
3. An amount equal to 25 percent of the production expenditures paid by the claimant in the taxable year to produce an accredited production.
71.47(5f)(c)1.1. A claimant may not claim a credit under this subsection if less than 35 percent of the total budget for the accredited production is spent in this state.
71.47(5f)(c)2.
2. The total amount of the credits that a claimant may claim under [
par. (b) 2.] in a taxable year shall not exceed an amount equal to the first $20,000 of salary, wages, or labor-related contract payments paid to each individual described in [
par. (b) 2.] in the taxable year.
71.47 Note
NOTE: The cross-reference in brackets does not exist as the result of the governor's partial veto of
2009 Wis. Act 28.
71.47(5f)(c)3.
3. No credit may be claimed under par.
(b) 3. for the purchase of tangible personal property or items, property, or goods under s.
77.52 (1) (b),
(c), or
(d) the sale of which is not sourced to this state, as provided under s.
77.522.
