71.07(3n)(a)6.a.a. For taxable years that begin after December 31, 2003, and before January 1, 2006, “used exclusively," related to dairy animals, means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.
71.07(3n)(a)6.b.
b. For taxable years that begin after December 31, 2005, and before January 1, 2014, “used exclusively," related to livestock, dairy animals, or both, means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.
71.07(3n)(b)1.1. Subject to the limitations provided in this subsection, for taxable years that begin after December 31, 2003, and before January 1, 2014, a claimant may claim as a credit against the tax imposed under ss.
71.02 and
71.08 an amount equal to 10 percent of the amount the claimant paid in the taxable year for dairy farm modernization or expansion related to the operation of the claimant's dairy farm.
71.07(3n)(b)2.
2. Subject to the limitations provided in this subsection, for taxable years that begin after December 31, 2005, and before January 1, 2014, a claimant may claim as a credit against the tax imposed under ss.
71.02 and
71.08 an amount equal to 10 percent of the amount the claimant paid in the taxable year for livestock farm modernization or expansion related to the operation of the claimant's livestock farm.
71.07(3n)(c)
(c) No credit may be allowed under this subsection for any amount that the claimant paid for expenses described under par.
(b) that the claimant also claimed as a deduction under section
162 of the Internal Revenue Code.
71.07(3n)(d)
(d) The aggregate amount of credits that a claimant may claim under this subsection is $75,000, except that no more than $50,000 of this amount may be based on costs incurred prior to May 27, 2010.
71.07(3n)(e)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 expenses under par.
(b), except that the aggregate amount of credits that the entity may compute shall not exceed the limitation under par.
(d). 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.
71.07(3n)(e)2.
2. If 2 or more persons own and operate the dairy or livestock farm, 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 farm shall not exceed the limitation under par.
(d).
71.07 Cross-reference
Cross-reference: See also s.
Tax 2.99, Wis. adm. code.
71.07(3n)(g)
(g) 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(3q)(a)2.
2. “Eligible employee" means, for taxable years beginning before January 1, 2011, an eligible employee under s.
560.2055 (1) (b), 2009 stats., who satisfies the wage requirements under s.
560.2055 (3) (a) or
(b), 2009 stats., or, for taxable years beginning after December 31, 2010, an eligible employee under s.
238.16 (1) (b) who satisfies the wage requirements under s.
238.16 (3) (a) or
(b).
71.07(3q)(b)
(b)
Filing claims. Subject to the limitations provided in this subsection and s.
238.16 or s.
560.2055, 2009 stats., for taxable years beginning after December 31, 2009, a claimant may claim as a credit against the taxes imposed under s.
71.02 any of the following:
71.07(3q)(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.
238.16 or the department of commerce under s.
560.2055, 2009 stats.
71.07(3q)(c)1.a.a. Except as provided in subd.
1. b., 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(3q)(c)1.b.
b. For taxable years beginning after December 31, 2020, partnerships, limited liability companies, and tax-option corporations may elect to claim the credit under this subsection, if the credit results from a contract entered into with the Wisconsin Economic Development Corporation before December 22, 2017. A partnership, limited liability company, or tax-option corporation that wishes to make the election under this subd.
1. b. shall make the election for each taxable year on its original return and cannot subsequently make or revoke the election. If a partnership, limited liability company, or tax-option corporation elects to claim the credit under this subsection, the partners, members, and shareholders cannot claim the credit under this subsection. The credit cannot be claimed under this subd.
1. b. if one or more partners, members, or shareholders have claimed the credit under this subsection for the same taxable year for which the credit is claimed under this subd.
1. b. 71.07(3q)(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.
238.16 (2) or s.
560.2055 (2), 2009 stats.
71.07(3q)(c)3.
3. The maximum amount of credits that may be awarded under this subsection and ss.
71.28 (3q) and
71.47 (3q) for the period beginning on January 1, 2010, and ending on June 30, 2013, is $14,500,000, not including the amount of any credits reallocated under s.
238.15 (3) (d), 2015 stats., or s.
560.205 (3) (d), 2009 stats.
71.07(3q)(d)2.
2. If the allowable amount of the claim under par.
(b) exceeds the tax otherwise due under s.
71.02, 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) (bb), except that the amounts certified under this subdivision for taxable years beginning after December 31, 2009, and before January 1, 2012, shall be paid in taxable years beginning after December 31, 2011. Notwithstanding s.
71.82, no interest shall be paid on amounts certified under this subdivision.
71.07(3s)
(3s)
Manufacturing sales tax credit. 71.07(3s)(a)2.
2. “Sales and use tax under ch.
77 paid by the person" includes use taxes paid directly by the person and sales and use taxes paid by the person's supplier and passed on to the person whether separately stated on the invoice or included in the total price.
71.07(3s)(b)
(b) The tax imposed under s.
71.02 shall be reduced by an amount equal to the sales and use tax under ch.
77 paid by the person in such taxable year on fuel and electricity consumed in manufacturing tangible personal property in this state. Shareholders in a tax-option corporation and partners may claim the credit under this subsection, based on eligible sales and use taxes paid by the partnership or tax-option corporation, in proportion to the ownership interest of each partner or shareholder. The partnership or tax-option corporation shall calculate the amount of the credit which may be claimed by each partner or shareholder and shall provide that information to the partner or shareholder.
71.07(3s)(c)1.1. 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 in which the fuel and electricity are consumed. Except as provided in subd.
7., if the credit computed is not entirely offset against taxes otherwise due, the unused balance shall be carried forward and credited against taxes otherwise due for the following 20 taxable years to the extent not offset by 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.
71.07(3s)(c)2.
2. For shareholders in 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(3s)(c)3.
3. For partners, the credit may be offset only against the tax imposed on the partner's distributive share of partnership income.
71.07(3s)(c)4.
4. If a tax-option corporation becomes liable for tax for a taxable year that begins on or after January 1, 1998, the corporation may offset the credit against the tax due, with any remaining credit computed for a taxable year that begins on or after January 1, 1998, passing through to the shareholders.
71.07(3s)(c)5.
5. If a corporation that is not a tax-option corporation has a carry-over credit from a taxable year that begins on or after January 1, 1998, and becomes a tax-option corporation before the credit carried over is used, the unused portion of the credit may be used by the tax-option corporation's shareholders on a prorated basis.
71.07(3s)(c)6.
6. If the shareholders of a tax-option corporation have carry-over credits and the corporation becomes a corporation other than a tax-option corporation after October 14, 1997, and before the credits carried over are used, the unused portion of the credits may be used by the corporation that is not a tax-option corporation.
71.07(3s)(c)7.
7. No credit may be claimed under this subsection for taxable years that begin after December 31, 2005. For credits that are claimed but unused under this subsection for taxable years that begin before January 1, 2006, up to 50 percent may be used in each of the following 2 taxable years if the taxpayer has $25,000 or less in unused credits as of January 1, 2006. For taxable years beginning after December 31, 2005, and before January 1, 2008, a taxpayer who has more than $25,000 in unused credits as of January 1, 2006, may deduct an amount in each year that is equal to 50 percent of the amount the taxpayer added back to income under s.
71.05 (6) (a) at the time that the taxpayer first claimed the credit or, with regard to credits passed through from a partnership, limited liability company, or tax-option corporation, 50 percent of the amount that the entity added back to its income and was included in the partner's, member's, or shareholder's Wisconsin net income at the time that the credit was first claimed.
71.07(3t)
(3t)
Manufacturing investment credit. 71.07(3t)(a)
(a)
Definition. In this subsection, “claimant" means a person who files a claim under this subsection.
71.07(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.
71.02, up to the amount of the tax, an amount equal to the claimant's unused credits under s.
71.07 (3s).
71.07(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.
71.07(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.
71.07 (3s). 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.
71.07(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.
71.07(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.
71.07(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.
71.07(3w)(a)5.
5. “State payroll" means the amount of payroll apportioned to this state, as determined under s.
71.04 (6).
71.07(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.
71.07(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.
71.07(3w)(a)5m.
5m. “Wages" means wages under section
3306 (b) of the Internal Revenue Code, determined without regard to any dollar limitations.
71.07(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.
71.07(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.
71.02 or
71.08 an amount calculated as follows:
71.07(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.
71.07(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.
71.07(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.
71.07(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. 71.07(3w)(b)4.
4. Multiply the amount determined under subd.
3. by the amount determined under subd.
1. 71.07(3w)(b)5.
5. Multiply the amount determined under subd.
4. by the percentage determined by under s.
238.399 or s.
560.799, 2009 stats., not to exceed 7 percent.
71.07(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.
71.02 or
71.08 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.
71.07(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.
71.02 or
71.08 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.
71.07(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.
71.02 or
71.08 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.
71.07(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.
71.02 or
71.08, 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.
71.07(3w)(bm)5.
5. In addition to the credits under par.
(b) and subds.
1. to
4., and subject to the limitations provided in this subsection and s.
238.399 or s.
560.799, 2009 stats., a claimant that has retained the minimum number of full-time employees determined under s.
238.399 (5) (f) and maintained average zone payroll for the taxable year equal to or greater than the base year may claim as a credit against the tax imposed under s.
71.02 or
71.08 an amount equal to the percentage, as determined by the Wisconsin Economic Development Corporation, of the claimant's zone payroll paid in the 12 months prior to the certification date to the claimant's full-time employees in the enterprise zone 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. The amount that the claimant may claim as credit under this subdivision for a taxable year shall not exceed $2,000,000. A claimant may claim a credit under this subdivision for no more than 5 consecutive taxable years.
71.07(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.
71.02, 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). Notwithstanding s.
71.82, no interest shall be paid on amounts certified under this subdivision.
71.07(3w)(c)2.a.a. Except as provided in subd.
2. b., 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.
71.07(3w)(c)2.b.
b. For taxable years beginning after December 31, 2020, partnerships, limited liability companies, and tax-option corporations may elect to claim the credit under this subsection, if the credit results from a contract entered into with the Wisconsin Economic Development Corporation before December 22, 2017. A partnership, limited liability company, or tax-option corporation that wishes to make the election under this subd.
2. b. shall make the election for each taxable year on its original return and cannot subsequently make or revoke the election. If a partnership, limited liability company, or tax-option corporation elects to claim the credit under this subsection, the partners, members, and shareholders cannot claim the credit under this subsection. The credit cannot be claimed under this subd.
2. b. if one or more partners, members, or shareholders have claimed the credit under this subsection for the same taxable year for which the credit is claimed under this subd.
2. b. 71.07(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.
71.07(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.
71.07(3w)(d)
(d)
Administration. Section
71.28 (4) (g) and
(h), as it applies to the credit under s.
71.28 (4), applies to the credit under this subsection. Claimants shall include with their returns a copy of their certification for tax benefits, and a copy of the verification of their expenses, from the department of commerce or the Wisconsin Economic Development Corporation.
71.07(3wm)
(3wm)
Electronics and information technology manufacturing zone credit. 71.07(3wm)(a)1.
1. “Claimant" means a person who is certified to claim tax benefits under s.
238.396 (3) and who files a claim under this subsection.
71.07(3wm)(a)2.
2. “Full-time employee” means an individual who is employed in a job for which the annual pay is at least $30,000 and who is offered retirement, health, and other benefits that are equivalent to the retirement, health, and other benefits offered to an individual who is required to work at least 2,080 hours per year.
71.07(3wm)(a)3.
3. “State payroll" means the amount of payroll apportioned to this state, as determined under s.
71.25 (8).
