LRB-4258/1
JK:jld:jf
2009 - 2010 LEGISLATURE
February 17, 2010 - Introduced by Representatives Vruwink, Smith, Ripp, A. Ott,
Jorgensen, Radcliffe, Danou, Molepske Jr., Garthwaite, Kestell, Davis,
Berceau, Hebl, Brooks, Spanbauer, Ballweg, Strachota, Black, Zepnick,
Turner, Petersen, Townsend, Zigmunt, Sinicki, Bies, Benedict, Hixson,
LeMahieu, Nerison, Hraychuck
and Hubler, cosponsored by Senators
Vinehout, Harsdorf, Taylor and Schultz. Referred to Committee on
Agriculture.
AB756,1,7 1An Act to repeal 71.07 (3n) (a) 6. c., 71.28 (3n) (a) 6. c. and 71.47 (3n) (a) 6. c.;
2and to amend 71.07 (3n) (a) 2. (intro.), 71.07 (3n) (a) 6. b., 71.07 (3n) (b) 1., 71.07
3(3n) (d), 71.07 (3n) (e) 1., 71.07 (3n) (e) 2., 71.28 (3n) (a) 2. (intro.), 71.28 (3n) (a)
46. b., 71.28 (3n) (b) 1., 71.28 (3n) (d), 71.28 (3n) (e) 1., 71.28 (3n) (e) 2., 71.47 (3n)
5(a) 2. (intro.), 71.47 (3n) (a) 6. b., 71.47 (3n) (b) 1., 71.47 (3n) (d), 71.47 (3n) (e)
61. and 71.47 (3n) (e) 2. of the statutes; relating to: the dairy and livestock
7investment tax credits.
Analysis by the Legislative Reference Bureau
Under current law, a taxpayer may claim an income and franchise tax credit for
amounts paid for dairy farm modernization and expansion for taxable years
beginning after December 31, 2003, and before January 1, 2010. Under this bill, a
taxpayer may claim the dairy farm modernization and expansion credit for taxable
years beginning after December 31, 2003, and before January 1, 2012.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB756, s. 1
1Section 1. 71.07 (3n) (a) 2. (intro.) of the statutes is amended to read:
AB756,2,72 71.07 (3n) (a) 2. (intro.) "Dairy farm modernization or expansion" means the
3construction, the improvement, or the acquisition of buildings or facilities, or the
4acquisition of equipment, for dairy animal housing, confinement, animal feeding,
5milk production, or waste management, including the following, if used exclusively
6related to dairy animals and if acquired and placed in service in this state during
7taxable years that begin after December 31, 2003, and before January 1, 2010 2012:
AB756, s. 2 8Section 2. 71.07 (3n) (a) 6. b. of the statutes is amended to read:
AB756,2,129 71.07 (3n) (a) 6. b. For taxable years that begin after December 31, 2005, and
10before January 1, 2010 2012, "used exclusively," related to livestock, dairy animals,
11or both, means used to the exclusion of all other uses except for use not exceeding 5
12percent of total use.
AB756, s. 3 13Section 3. 71.07 (3n) (a) 6. c. of the statutes is repealed.
AB756, s. 4 14Section 4. 71.07 (3n) (b) 1. of the statutes is amended to read:
AB756,2,2015 71.07 (3n) (b) 1. Subject to the limitations provided in this subsection, for
16taxable years that begin after December 31, 2003, and before January 1, 2010 2012,
17a claimant may claim as a credit against the tax imposed under ss. 71.02 and 71.08
18an amount equal to 10% of the amount the claimant paid in the taxable year for dairy
19farm modernization or expansion related to the operation of the claimant's dairy
20farm.
AB756, s. 5 21Section 5. 71.07 (3n) (d) of the statutes is amended to read:
AB756,2,2322 71.07 (3n) (d) The aggregate amount of credits that a claimant may claim
23under this subsection is $50,000 $75,000.
AB756, s. 6 24Section 6. 71.07 (3n) (e) 1. of the statutes is amended to read:
AB756,3,9
171.07 (3n) (e) 1. Partnerships, limited liability companies, and tax-option
2corporations may not claim the credit under this subsection, but the eligibility for,
3and the amount of, the credit are based on their payment of expenses under par. (b),
4except that the aggregate amount of credits that the entity may compute shall not
5exceed $50,000 $75,000. A partnership, limited liability company, or tax-option
6corporation shall compute the amount of credit that each of its partners, members,
7or shareholders may claim and shall provide that information to each of them.
8Partners, members of limited liability companies, and shareholders of tax-option
9corporations may claim the credit in proportion to their ownership interest.
AB756, s. 7 10Section 7. 71.07 (3n) (e) 2. of the statutes is amended to read:
AB756,3,1411 71.07 (3n) (e) 2. If 2 or more persons own and operate the dairy or livestock
12farm, each person may claim a credit under par. (b) in proportion to his or her
13ownership interest, except that the aggregate amount of the credits claimed by all
14persons who own and operate the farm shall not exceed $50,000 $75,000.
AB756, s. 8 15Section 8. 71.28 (3n) (a) 2. (intro.) of the statutes is amended to read:
AB756,3,2116 71.28 (3n) (a) 2. (intro.) "Dairy farm modernization or expansion" means the
17construction, the improvement, or the acquisition of buildings or facilities, or
18acquiring equipment, for dairy animal housing, confinement, animal feeding, milk
19production, or waste management, including the following, if used exclusively
20related to dairy animals and if acquired and placed in service in this state during
21taxable years that begin after December 31, 2003, and before January 1, 2010 2012:
AB756, s. 9 22Section 9. 71.28 (3n) (a) 6. b. of the statutes is amended to read:
AB756,4,223 71.28 (3n) (a) 6. b. For taxable years that begin after December 31, 2005, and
24before January 1, 2010 2012, "used exclusively," related to livestock, dairy animals,

1or both, means used to the exclusion of all other uses except for use not exceeding 5
2percent of total use.
AB756, s. 10 3Section 10. 71.28 (3n) (a) 6. c. of the statutes is repealed.
AB756, s. 11 4Section 11. 71.28 (3n) (b) 1. of the statutes is amended to read:
AB756,4,95 71.28 (3n) (b) 1. Subject to the limitations provided in this subsection, for
6taxable years that begin after December 31, 2003, and before January 1, 2010 2012,
7a claimant may claim as a credit against the tax imposed under s. 71.23 an amount
8equal to 10% of the amount the claimant paid in the taxable year for dairy farm
9modernization or expansion related to the operation of the claimant's dairy farm.
AB756, s. 12 10Section 12. 71.28 (3n) (d) of the statutes is amended to read:
AB756,4,1211 71.28 (3n) (d) The aggregate amount of credits that a claimant may claim
12under this subsection is $50,000 $75,000.
AB756, s. 13 13Section 13. 71.28 (3n) (e) 1. of the statutes is amended to read:
AB756,4,2214 71.28 (3n) (e) 1. Partnerships, limited liability companies, and tax-option
15corporations may not claim the credit under this subsection, but the eligibility for,
16and the amount of, the credit are based on their payment of expenses under par. (b),
17except that the aggregate amount of credits that the entity may compute shall not
18exceed $50,000 $75,000. A partnership, limited liability company, or tax-option
19corporation shall compute the amount of credit that each of its partners, members,
20or shareholders may claim and shall provide that information to each of them.
21Partners, members of limited liability companies, and shareholders of tax-option
22corporations may claim the credit in proportion to their ownership interest.
AB756, s. 14 23Section 14. 71.28 (3n) (e) 2. of the statutes is amended to read:
AB756,5,224 71.28 (3n) (e) 2. If 2 or more persons own and operate the dairy or livestock
25farm, each person may claim a credit under par. (b) in proportion to his or her

1ownership interest, except that the aggregate amount of the credits claimed by all
2persons who own and operate the farm shall not exceed $50,000 $75,000.
AB756, s. 15 3Section 15. 71.47 (3n) (a) 2. (intro.) of the statutes is amended to read:
AB756,5,94 71.47 (3n) (a) 2. (intro.) "Dairy farm modernization or expansion" means the
5construction, the improvement, or the acquisition of buildings or facilities, or the
6acquisition of equipment, for dairy animal housing, confinement, animal feeding,
7milk production, or waste management, including the following, if used exclusively
8related to dairy animals and if acquired and placed in service in this state during
9taxable years that begin after December 31, 2003, and before January 1, 2010 2012:
AB756, s. 16 10Section 16. 71.47 (3n) (a) 6. b. of the statutes is amended to read:
AB756,5,1411 71.47 (3n) (a) 6. b. For taxable years that begin after December 31, 2005, and
12before January 1, 2010 2012, "used exclusively," related to livestock, dairy animals,
13or both, means used to the exclusion of all other uses except for use not exceeding 5
14percent of total use.
AB756, s. 17 15Section 17. 71.47 (3n) (a) 6. c. of the statutes is repealed.
AB756, s. 18 16Section 18. 71.47 (3n) (b) 1. of the statutes is amended to read:
AB756,5,2117 71.47 (3n) (b) 1. Subject to the limitations provided in this subsection, for
18taxable years that begin after December 31, 2003, and before January 1, 2010 2012,
19a claimant may claim as a credit against the tax imposed under s. 71.43 an amount
20equal to 10% of the amount the claimant paid in the taxable year for dairy farm
21modernization or expansion related to the operation of the claimant's dairy farm.
AB756, s. 19 22Section 19. 71.47 (3n) (d) of the statutes is amended to read:
AB756,5,2423 71.47 (3n) (d) The aggregate amount of credits that a claimant may claim
24under this subsection is $50,000 $75,000.
AB756, s. 20 25Section 20. 71.47 (3n) (e) 1. of the statutes is amended to read:
AB756,6,9
171.47 (3n) (e) 1. Partnerships, limited liability companies, and tax-option
2corporations may not claim the credit under this subsection, but the eligibility for,
3and the amount of, the credit are based on their payment of expenses under par. (b),
4except that the aggregate amount of credits that the entity may compute shall not
5exceed $50,000 $75,000. A partnership, limited liability company, or tax-option
6corporation shall compute the amount of credit that each of its partners, members,
7or shareholders may claim and shall provide that information to each of them.
8Partners, members of limited liability companies, and shareholders of tax-option
9corporations may claim the credit in proportion to their ownership interest.
AB756, s. 21 10Section 21. 71.47 (3n) (e) 2. of the statutes is amended to read:
AB756,6,1411 71.47 (3n) (e) 2. If 2 or more persons own and operate the dairy or livestock
12farm, each person may claim a credit under par. (b) in proportion to his or her
13ownership interest, except that the aggregate amount of the credits claimed by all
14persons who own and operate the farm shall not exceed $50,000 $75,000.
AB756,6,1515 (End)
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