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).
71.07(3wm)(a)4.
4. “Wages" means wages under section
3306 (b) of the Internal Revenue Code, determined without regard to any dollar limitations.
71.07(3wm)(a)6.
6. “Zone payroll" means the amount of state payroll that is attributable to wages paid by the claimant to full-time employees for services that are performed in the zone or that are performed outside the zone, but within the state, and for the benefit of the operations within the zone, as determined by the Wisconsin Economic Development Corporation. “Zone payroll" does not include the amount of wages paid to any full-time employees that exceeds $100,000.
71.07(3wm)(b)
(b)
Filing claims; payroll. Subject to the limitations provided in this subsection and s.
238.396, 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(3wm)(b)1.
1. Determine the zone payroll for the taxable year for full-time employees employed by the claimant.
71.07(3wm)(bm)
(bm)
Filing supplemental claims. In addition to claiming the credit under par.
(b), and subject to the limitations under this subsection and s.
238.396, a claimant may claim as a credit against the tax imposed under s.
71.02 or
71.08 up to 15 percent of the claimant's significant capital expenditures in the zone in the taxable year, as determined under s.
238.396 (3m).
71.07(3wm)(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 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(3wm)(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.
238.396 (3).
71.07(3wm)(c)3.
3. The Wisconsin Economic Development Corporation may recover credits claimed under this paragraph that are revoked or otherwise invalid from the partnership, limited liability company, or tax-option corporation or from the individual partner, member, or shareholder.
71.07(3wm)(d)2.
2. 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) (cp). Notwithstanding s.
71.82, no interest shall be paid on amounts certified under this subdivision.
71.07(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 ss.
71.02 and
71.08 all of the following:
71.07(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.
71.07(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.
71.07(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.
71.07(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.
71.07(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.
71.07(3y)(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(3y)(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(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.
71.07(3y)(d)2.
2. If the allowable amount of the claim under par.
(b) exceeds the tax otherwise due under ss.
71.02 and
71.08, 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). Notwithstanding s.
71.82, no interest shall be paid on amounts certified under this subdivision.
71.07(4)
(4)
Homestead credit. The homestead credit under subch.
VIII may be claimed by individuals against taxes otherwise due.
71.07(4k)(a)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.
71.07(4k)(a)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.
71.07(4k)(a)2.
2. “Internal combustion engine" includes substitute products such as fuel cell, electric, and hybrid drives.
71.07(4k)(a)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.
71.07(4k)(b)1.1. Subject to the limitations provided in this subsection, and except as provided in subds.
2. and
3., for taxable years beginning after December 31, 2012, and before January 1, 2015, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s.
71.02 or
71.08, as allocated under par.
(d), an amount equal to 5 percent of the amount obtained by subtracting from the individual's, partnership's, tax-option corporation's, or limited liability company'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 individual, partnership, tax-option corporation, or the limited liability company, 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.
(c), and except that “qualified research expenses" does not include compensation used in computing the credit under sub.
(2dx), the entity'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 ss.
71.04 (7) (b) 1. and
2.,
(df),
(dh),
(dj), and
(dk). Section
41 (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
71.07(4k)(b)2.
2. For taxable years beginning after December 31, 2012, and before January 1, 2015, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s.
71.02 or
71.08, as allocated under par.
(d), an amount equal to 10 percent of the amount obtained by subtracting from the individual's, partnership's, tax-option corporation's, or limited liability company'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 individual, partnership, tax-option corporation, or limited liability company 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.
(c), and except that “qualified research expenses" does not include compensation used in computing the credit under sub.
(2dx), the entity'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 ss.
71.04 (7) (b) 1. and
2.,
(df),
(dh),
(dj), and
(dk). Section
41 (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
71.07(4k)(b)3.
3. For taxable years beginning after December 31, 2012, and before January 1, 2015, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s.
71.02 or
71.08, as allocated under par.
(d), an amount equal to 10 percent of the amount obtained by subtracting from the individual's, partnership's, tax-option corporation's, or limited liability company'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 individual, partnership, tax-option corporation, or limited liability company 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.
(c), and except that “qualified research expenses" does not include compensation used in computing the credit under sub.
(2dx), the entity'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 ss.
71.04 (7) (b) 1. and
2.,
(df),
(dh),
(dj), and
(dk). Section
41 (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
71.07(4k)(b)4.a.a. Except as provided in subds.
5. and
6., for taxable years beginning after December 31, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s.
71.02, as allocated under par.
(d), an amount equal to 5.75 percent of the amount by which the individual's, partnership's, tax-option corporation's, or limited liability company'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 individual, partnership, tax-option corporation, or limited liability company 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 individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses for the taxable year for which the claimant claims the credit.
71.07(4k)(b)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 individual, partnership, tax-option corporation, or the limited liability company, incurred for research conducted in this state for the taxable year and does not include compensation used in computing the credit under sub.
(2dx). Section
41 (f) (1), (2), (5), and (6) and (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
71.07(4k)(b)5.a.a. For taxable years beginning after December 31, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s.
71.02, as allocated under par.
(d), an amount equal to 11.5 percent of the amount by which the individual's, partnership's, tax-option corporation's, or limited liability company'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 individual, partnership, tax-option corporation, or limited liability company 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 individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses for the taxable year for which the claimant claims the credit.
71.07(4k)(b)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 individual, partnership, tax-option corporation, or limited liability company 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.
(2dx). Section
41 (f) (1), (2), (5), and (6) and (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
71.07(4k)(b)6.a.a. For taxable years beginning after December 31, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s.
71.02, as allocated under par.
(d), an amount equal to 11.5 percent of the amount by which the individual's, partnership's, tax-option corporation's, or limited liability company'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 individual, partnership, tax-option corporation, or limited liability company 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 individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses for the taxable year for which the claimant claims the credit.
71.07(4k)(b)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 individual, partnership, tax-option corporation, or limited liability company 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.
(2dx). Section
41 (f) (1), (2), (5), and (6) and (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
71.07(4k)(c)
(c)
Computation. For taxable years beginning before January 1, 2015, if in any taxable year a person claims a credit under par.
(b) 1.,
2., or
3., or any combination of those credits, the person 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.
71.07(4k)(d)
(d)
Limitations. Partnerships, tax-option corporations, and limited liability companies may not claim a 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, tax-option corporation, or limited liability company shall compute the amount of the credit that each of its partners, shareholders, or members may claim and shall provide that information to each of them. Partners of a partnership, shareholders of tax-option corporations, and members of limited liability companies may claim the credit in proportion to their ownership interest.
71.07(4k)(e)2.
2. For taxable years beginning after December 31, 2017, s.
71.28 (4) (b) to
(e),
(g), and
(h), as it applies to the credit under s.
71.28 (4), applies to the credits under this subsection. For taxable years beginning after December 31, 2017, if the allowable amount of the claim under par.
(b) 4.,
5., or
6. exceeds the tax otherwise due under s.
71.02 or
71.08, all of the following apply:
71.07(4k)(e)2.a.
a. For taxable years beginning before January 1, 2021, 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.
(b) 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). For subsequent taxable years, the amount of the claim not used to offset the tax due, up to 15 percent of the allowable amount of the claim under par.
(b) 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).
71.07(4k)(e)2.b.
b. The amount of the claim not used to offset the tax due and not certified for payment under subd.
2. a. may be carried forward and credited against Wisconsin income 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.
71.07(4n)(a)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.
71.07(4n)(a)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.
71.07(4n)(a)2.
2. “Internal combustion engine" includes substitute products such as fuel cell, electric, and hybrid drives.
71.07(4n)(a)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.
71.07(4n)(b)1.1. Subject to the limitations provided in this subsection, and except as provided in subds.
2. and
3., for taxable years beginning after December 31, 2012, and before January 1, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s.
71.02, as allocated under par.
(c), an amount equal to 5 percent of the amount paid or incurred by the individual, partnership, tax-option corporation, or limited liability company 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.
71.07(4n)(b)2.
2. For taxable years beginning after December 31, 2012, and before January 1, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s.
71.02, as allocated under par.
(c), an amount equal to 10 percent of the amount paid or incurred by the individual, partnership, tax-option corporation, or limited liability company 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 individual, partnership, tax-option corporation, or limited liability company 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.
71.07(4n)(b)3.
3. For taxable years beginning after December 31, 2012, and before January 1, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s.
71.02, as allocated under par.
(c), an amount equal to 10 percent of the amount paid or incurred by the individual, partnership, tax-option corporation, or limited liability company 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 individual, partnership, tax-option corporation, or limited liability company 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.
71.07(4n)(c)
(c)
Limitations. Partnerships, tax-option corporations, and limited liability companies may not claim a 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, tax-option corporation, or limited liability company shall compute the amount of the credit that each of its partners, shareholders, or members may claim and shall provide that information to each of them. Partners of a partnership, shareholders of tax-option corporations, and members of limited liability companies may claim the credit in proportion to their ownership interest.
71.07(4n)(e)
(e)
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.
