SB62,36,1717 (b) An institution for mental diseases, as defined in s. 46.011 (1m).
SB62,36,2018 (c) A general psychiatric hospital for which the department has issued a
19certificate of approval under s. 50.35 that applies only to the psychiatric hospital, and
20that is not a satellite of an acute care hospital.
SB62,36,25 21(2) For the privilege of doing business in this state, there is imposed on each
22eligible hospital an assessment each state fiscal year that is equal to a uniform
23percentage, determined under sub. (3), of the hospital's gross patient revenues, as
24reported under s. 153.46 (5) and determined by the department. The assessments
25shall be deposited in the hospital assessment fund.
SB62,37,4
1(3) The department shall establish the percentage under sub. (2) so that the
2total amount of assessments collected under this section in a state fiscal year is equal
3to the amount in the schedule under s. 20.005 (3) for the appropriation under s.
420.435 (4) (xc) for that fiscal year.
SB62,37,7 5(4) Except as provided in sub. (5), each eligible hospital shall pay the annual
6assessment under sub. (2) in 4 equal amounts that are due by September 30,
7December 31, March 31, and June 30 of each year.
SB62,37,12 8(5) At the discretion of the department, a hospital that is unable timely to make
9a payment by a date specified under sub. (4) may be allowed to make a delayed
10payment. A determination by the department that a hospital may not make a
11delayed payment under this subsection is final and is not subject to review under ch.
12227.
SB62,37,20 13(6) (a) 1. If the federal government does not provide federal financial
14participation under the federal Medicaid program for amounts collected under this
15section that are used to make payments under s. 49.45 (3) (e) 11. or (5r), that are
16transferred under sub. (8) and used to make payments from the Medical Assistance
17trust fund, or that are transferred under sub. (9) and expended under under s. 20.435
18(4) (jw), the department shall, from the fund from which the payment or expenditure
19was made, refund hospitals the amount for which the federal government does not
20provide federal financial participation.
SB62,37,2521 2. If the department makes a refund under subd. 1. as result of failure to obtain
22federal financial participation under the federal Medicaid program for a payment
23under s. 49.45 (3) (e) 11. or (5r) or a payment from the Medical Assistance trust fund,
24the department shall recoup the part of the payment for which the federal
25government does not provide federal financial participation.
SB62,38,2
13. Moneys recouped under subd. 2. for payments made from the hospital
2assessment fund shall be deposited in the hospital assessment fund.
SB62,38,43 4. Moneys recouped under subd. 2. for payments made from the Medical
4Assistance trust fund shall be deposited in the Medical Assistance trust fund.
SB62,38,85 (b) On June 30 of each state fiscal year, the department shall, from the
6appropriation account under s. 20.435 (4) (xc), refund to hospitals the difference
7between the amount in the schedule under s. 20.005 (3) for that appropriation and
8the amount expended or encumbered from that appropriation in the fiscal year.
SB62,38,119 (c) The department shall allocate any refund under this subsection to hospitals
10in proportion to the percentage of the total assessments collected under sub. (2) that
11each hospital paid.
SB62,38,14 12(7) By January 1 of each year the department shall report to the joint
13committee on finance all of the following information for the state fiscal year ending
14the previous June 30:
SB62,38,1515 (a) The amount each eligible hospital paid under sub. (2).
SB62,38,1716 (b) The amounts the department paid each health maintenance organization
17under s. 49.45 (59) (a).
SB62,38,1918 (c) The total amounts that each eligible hospital received from health
19maintenance organizations under s. 49.45 (59) (b).
SB62,38,2220 (d) The total amount of payment increases the department made, in connection
21with implementation of the hospital assessment under sub. (2), for inpatient and
22outpatient hospital services that are reimbursed on a fee-for-service basis.
SB62,38,2423 (e) The total amount of payments that the department made to each hospital
24under the Medical Assistance Program under subch. IV of ch. 49.
SB62,39,4
1(f) The portion of capitated payments that the department made to each health
2maintenance organization under the Medical Assistance Program under subch. IV
3of ch. 49 from appropriation accounts of general purpose revenues that is for
4inpatient and outpatient hospital services.
SB62,39,65 (g) The results of any audits conducted by the department under s. 49.45 (59)
6(e) 3. and any actions taken by the department as a result of the audits.
SB62,39,12 7(8) In each state fiscal year, the secretary of administration shall transfer from
8the hospital assessment fund to the Medical Assistance trust fund an amount equal
9to the amount in the schedule under s. 20.005 (3) for the appropriation under s.
1020.435 (4) (xc) for that fiscal year minus the state share of payments to hospitals
11under s. 49.45 (3) (e) 11., and minus any refunds paid to hospitals from the hospital
12assessment fund under sub. (6) (a) in that fiscal year.
SB62,39,16 13(9) On June 30 of each state fiscal year, the secretary of administration shall
14transfer from the Medical Assistance trust fund to the appropriation account under
15s. 20.435 (4) (jw), an amount equal to 0.5 percent of the amount transferred under
16sub. (8).
SB62, s. 70 17Section 70. 50.389 of the statutes is renumbered 50.377.
SB62, s. 71 18Section 71. 66.0615 (1m) (f) 2. of the statutes is amended to read:
SB62,39,2319 66.0615 (1m) (f) 2. Sections 77.51 (12m), (14) (c), (f) and (j) and, (14g), (15a),
20and (15b),
77.52 (3), (4), (6) and (13), (14), (18), and (19), 77.522, 77.58 (1) to (5) , (6m),
21and (7), 77.585, 77.59, 77.60, 77.61 (2), (3m), (5), (8), (9), and (12) to (14) (15), and
2277.62, as they apply to the taxes under subch. III of ch. 77, apply to the tax described
23under subd. 1.
SB62, s. 72 24Section 72. 67.045 (1) (h) of the statutes is created to read:
SB62,40,2
167.045 (1) (h) The debt is issued for the purpose of acquiring or installing
2energy efficient equipment.
SB62, s. 73 3Section 73. 70.111 (23) of the statutes is amended to read:
SB62,40,94 70.111 (23) Vending machines. All machines that automatically dispense soda
5water beverages, as defined in s. 97.29 (1) (i), and items included as a food or beverage
6under s. 77.54 (20) (a) and (b)
food and food ingredient, as defined in s. 77.51 (3t),
7upon the deposit in the machines of specified coins or currency, or insertion of a credit
8card, in payment for the soda water beverages, food or beverages food and food
9ingredient, as defined in s. 77.51 (3t)
.
SB62, s. 74 10Section 74. 71.01 (1b) of the statutes is amended to read:
SB62,40,1611 71.01 (1b) For purposes of s. 71.04 (7) (df) and, (dh), (dj), and (dk), "commercial
12domicile" means the location from which a trade or business is principally managed
13and directed, based on any factors the department determines are appropriate,
14including the location where the greatest number of employees of the trade or
15business work, have their office or base of operations, or from which the employees
16are directed or controlled.
SB62, s. 75 17Section 75. 71.01 (1n) of the statutes is amended to read:
SB62,40,2218 71.01 (1n) For purposes of s. 71.04 (7) (df) and, (dh), (dj), and (dk), "domicile"
19means an individual's true, fixed, and permanent home where the individual intends
20to remain permanently and indefinitely and to which, whenever absent, the
21individual intends to return, except that no individual may have more than one
22domicile at any time.
SB62, s. 76 23Section 76. 71.01 (5n) of the statutes is created to read:
SB62,41,3
171.01 (5n) For purposes of s. 71.05 (6) (a) 24. and (b) 46., "intangible expenses"
2include the following, to the extent that the amounts would otherwise be deductible
3in computing Wisconsin adjusted gross income:
SB62,41,64 (a) Expenses, losses, and costs for, related to, or directly or indirectly in
5connection with the acquisition, use, maintenance, management, ownership, sale,
6exchange, or any other disposition of intangible property.
SB62,41,87 (b) Losses related to, or incurred in connection directly or indirectly with,
8factoring transactions or discounting transactions.
SB62,41,99 (c) Royalty, patent, technical, and copyright fees.
SB62,41,1010 (d) Licensing fees.
SB62,41,1111 (e) Other similar expenses, losses, and costs.
SB62, s. 77 12Section 77. 71.01 (5p) of the statutes is created to read:
SB62,41,1513 71.01 (5p) "Intangible property" includes stocks, bonds, financial instruments,
14patents, patent applications, trade names, trademarks, service marks, copyrights,
15mask works, trade secrets, and similar types of intangible assets.
SB62, s. 78 16Section 78. 71.01 (7v) of the statutes is created to read:
SB62,41,2317 71.01 (7v) For purposes of s. 71.05 (6) (a) 24. and (b) 46., "management fees"
18include expenses and costs, not including interest expenses, pertaining to accounts
19receivable, accounts payable, employee benefit plans, insurance, legal matters,
20payroll, data processing, purchasing, taxation, financial matters, securities,
21accounting, or reporting and compliance matters or similar activities, to the extent
22that the amounts would otherwise be deductible in the computation of Wisconsin
23adjusted gross income.
SB62, s. 79 24Section 79. 71.01 (10g) of the statutes is amended to read:
SB62,42,4
171.01 (10g) For purposes of s. 71.04 (7) (df) and, (dh), (dj), and (dk), "state"
2means a state of the United States, the District of Columbia, the commonwealth of
3Puerto Rico, or any territory or possession of the United States, unless the context
4requires that "state" means only the state of Wisconsin.
SB62, s. 80 5Section 80. 71.04 (7) (d) of the statutes is repealed.
SB62, s. 81 6Section 81. 71.04 (7) (dj) of the statutes is created to read:
SB62,42,127 71.04 (7) (dj) 1. Except as provided in par. (df), gross royalties and other gross
8receipts received for the use or license of intangible property, including patents,
9copyrights, trademarks, trade names, service names, franchises, licenses, plans,
10specifications, blueprints, processes, techniques, formulas, designs, layouts,
11patterns, drawings, manuals, technical know-how, contracts, and customer lists, are
12sales in this state if any of the following applies:
SB62,42,1813 a. The purchaser or licensee uses the intangible property in the operation of a
14trade or business at a location in this state. If the purchaser or licensee uses the
15intangible property in the operation of a trade or business in more than one state,
16the gross royalties and other gross receipts from the use of the intangible property
17shall be divided between those states having jurisdiction to impose an income tax on
18the taxpayer in proportion to the use of the intangible property in those states.
SB62,42,2019 b. The purchaser or licensee is billed for the purchase or license of the use of
20the intangible property at a location in this state.
SB62,42,2221 c. The purchaser or licensee of the use of the intangible property has its
22commercial domicile in this state.
SB62,43,223 2. If the taxpayer is not within the jurisdiction, for income or franchise tax
24purposes, in the state in which the gross royalties or other gross receipts are
25apportioned under this paragraph, but the taxpayer's commercial domicile is in this

1state, 50 percent of those gross royalties or other gross receipts shall be included in
2the numerator of the sales factor.
SB62, s. 82 3Section 82. 71.04 (7) (dk) of the statutes is created to read:
SB62,43,54 71.04 (7) (dk) 1. Sales of intangible property, excluding securities, are sales in
5this state if any of the following applies:
SB62,43,106 a. The purchaser uses the intangible property in the regular course of business
7operations in this state or for personal use in this state. If the purchaser uses the
8intangible property in more than one state, the sales shall be divided between those
9states having jurisdiction to impose an income tax on the taxpayer in proportion to
10the use of the intangible property in those states.
SB62,43,1211 b. The purchaser is billed for the purchase of the intangible property at a
12location in this state.
SB62,43,1413 c. The purchaser of the intangible property has its commercial domicile in this
14state.
SB62,43,1815 2. If the taxpayer is not within the jurisdiction, for income or franchise tax
16purposes, in the state in which the sales of intangible property are apportioned under
17this paragraph, but the taxpayer's commercial domicile is in this state, 50 percent
18of those gross receipts shall be included in the numerator of the sales factor.
SB62, s. 83 19Section 83. 71.04 (8) (a) of the statutes is renumbered 71.04 (8) (a) 1.
SB62, s. 84 20Section 84. 71.04 (8) (a) 2. of the statutes is created to read:
SB62,43,2421 71.04 (8) (a) 2. As used in this section, "financial organization" includes any
22subsidiary of an entity described in subd. 1., if a significant purpose for the
23subsidiary is to hold investments or if the subsidiary primarily functions to hold
24investments.
SB62, s. 85 25Section 85. 71.05 (6) (a) 15. of the statutes is amended to read:
SB62,44,6
171.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
2(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3r), (3s), (3t),
3(3w), (5e), (5f), (5h), (5i), (5j), and (5k) and not passed through by a partnership,
4limited liability company, or tax-option corporation that has added that amount to
5the partnership's, company's, or tax-option corporation's income under s. 71.21 (4)
6or 71.34 (1k) (g).
SB62, s. 86 7Section 86. 71.05 (6) (a) 24. of the statutes is amended to read:
SB62,44,128 71.05 (6) (a) 24. The amount deducted or excluded under the Internal Revenue
9Code for interest expenses and, rental expenses, intangible expenses, and
10management fees
that are directly or indirectly paid, accrued, or incurred to, or in
11connection directly or indirectly with one or more direct or indirect transactions with,
12one or more related entities.
SB62, s. 87 13Section 87. 71.05 (6) (b) 46. of the statutes is amended to read:
SB62,44,1914 71.05 (6) (b) 46. An amount added, pursuant to par. (a) 24. or s. 71.26 (2) (a) 7.,
1571.34 (1k) (j), or 71.45 (2) (a) 16., to the federal income of a related entity that paid
16interest expenses or, rental expenses , intangible expenses, or management fees to
17the individual or fiduciary, to the extent that the related entity could not offset such
18amount with the deduction allowable under subd. 45. or s. 71.26 (2) (a) 8., 71.34 (1k)
19(k), or 71.45 (2) (a) 17.
SB62, s. 88 20Section 88. 71.07 (2dr) (a) of the statutes is amended to read:
SB62,45,1821 71.07 (2dr) (a) Credit. Any person may credit against taxes otherwise due
22under this chapter an amount equal to 5% of the amount obtained by subtracting
23from the person's qualified research expenses, as defined in section 41 of the internal
24revenue code, except that "qualified research expenses" include only expenses
25incurred by the claimant in a development zone under subch. VI of ch. 560, except

1that a taxpayer may elect the alternative computation under section 41 (c) (4) of the
2Internal Revenue Code and that election applies until the department permits its
3revocation and except that "qualified research expenses" do not include
4compensation used in computing the credit under sub. (2dj) nor research expenses
5incurred before the claimant is certified for tax benefits under s. 560.765 (3), the
6person's base amount, as defined in section 41 (c) of the internal revenue code, in a
7development zone, except that gross receipts used in calculating the base amount
8means gross receipts from sales attributable to Wisconsin under s. 71.04 (7) (b) 1. and
92., (d), (df) 1. and 2., and (dh) 1., 2., and 3., (dj) 1. and (dk) 1. and research expenses
10used in calculating the base amount include research expenses incurred before the
11claimant is certified for tax benefits under s. 560.765 (3), in a development zone, if
12the claimant submits with the claimant's return a copy of the claimant's certification
13for tax benefits under s. 560.765 (3) and a statement from the department of
14commerce verifying the claimant's qualified research expenses for research
15conducted exclusively in a development zone. The rules under s. 73.03 (35) apply to
16the credit under this paragraph. The rules under sub. (2di) (f) and (g), as they apply
17to the credit under that subsection, apply to claims under this paragraph. Section
1841 (h) of the internal revenue code does not apply to the credit under this paragraph.
SB62, s. 89 19Section 89. 71.07 (2dy) of the statutes is created to read:
SB62,45,2220 71.07 (2dy) Economic development tax credit. (a) Definition. In this
21subsection, "claimant" means a person who files a claim under this subsection and
22is certified under s. 560.701 (2) and authorized to claim tax benefits under s. 560.703.
SB62,46,223 (b) Filing claims. Subject to the limitations under this subsection and ss.
24560.701 to 560.706, for taxable years beginning after December 31, 2008, a claimant

1may claim as a credit against the tax imposed under s. 71.02 or 71.08, up to the
2amount of the tax, the amount authorized for the claimant under s. 560.703.
SB62,46,63 (c) Limitations. 1. No credit may be allowed under this subsection unless the
4claimant includes with the claimant's return a copy of the claimant's certification
5under s. 560.701 (2) and a copy of the claimant's notice of eligibility to receive tax
6benefits under s. 560.703 (3).
SB62,46,147 2. Partnerships, limited liability companies, and tax-option corporations may
8not claim the credit under this subsection, but the eligibility for, and the amount of,
9the credit are based on their authorization to claim tax benefits under s. 560.703.
10A partnership, limited liability company, or tax-option corporation shall compute
11the amount of credit that each of its partners, members, or shareholders may claim
12and shall provide that information to each of them. Partners, members of limited
13liability companies, and shareholders of tax-option corporations may claim the
14credit in proportion to their ownership interests.
SB62,46,1715 (d) Administration. 1. Except as provided in subd. 2., s. 71.28 (4) (e) and (f),
16as it applies to the credit under s. 71.28 (4), applies to the credit under this
17subsection.
SB62,47,218 2. If a claimant's certification is revoked under s. 560.705, or if a claimant
19becomes ineligible for tax benefits under s. 560.702, the claimant may not claim
20credits under this subsection for the taxable year that includes the day on which the
21certification is revoked; the taxable year that includes the day on which the claimant
22becomes ineligible for tax benefits; or succeeding taxable years and the claimant may
23not carry over unused credits from previous years to offset the tax imposed under s.
2471.02 or 71.08 for the taxable year that includes the day on which certification is

1revoked; the taxable year that includes the day on which the claimant becomes
2ineligible for tax benefits; or succeeding taxable years.
SB62,47,43 3. Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4),
4applies to the credit under this subsection.
SB62, s. 90 5Section 90. 71.07 (3p) (a) 1m. of the statutes is created to read:
SB62,47,76 71.07 (3p) (a) 1m. "Dairy cooperative" means a business organized under ch.
7185 or 193 for the purpose of obtaining or processing milk.
SB62, s. 91 8Section 91. 71.07 (3p) (a) 3. (intro.) of the statutes is amended to read:
SB62,47,159 71.07 (3p) (a) 3. (intro.) "Dairy manufacturing modernization or expansion"
10means constructing, improving, or acquiring buildings or facilities, or acquiring
11equipment, for dairy manufacturing, including the following, if used exclusively for
12dairy manufacturing and if acquired and placed in service in this state during
13taxable years that begin after December 31, 2006, and before January 1, 2015, or, in
14the case of dairy cooperatives, if acquired and placed in service in this state during
15taxable years that begin after December 31, 2008, and before January 1, 2017
:
SB62, s. 92 16Section 92. 71.07 (3p) (b) of the statutes is amended to read:
SB62,47,2317 71.07 (3p) (b) Filing claims. Subject to the limitations provided in this
18subsection and s. 560.207, except as provided in par. (c) 5., for taxable years
19beginning after December 31, 2006, and before January 1, 2015, a claimant may
20claim as a credit against the taxes imposed under s. 71.02 or 71.08, up to the amount
21of the tax, an amount equal to 10 percent of the amount the claimant paid in the
22taxable year for dairy manufacturing modernization or expansion related to the
23claimant's dairy manufacturing operation.
SB62, s. 93 24Section 93. 71.07 (3p) (c) 2m. b. of the statutes is amended to read:
SB62,48,4
171.07 (3p) (c) 2m. b. The maximum amount of the credits that may be claimed
2by all claimants, other than members of dairy cooperatives, under this subsection
3and ss. 71.28 (3p) and 71.47 (3p) in fiscal year 2008-09, and in each fiscal year
4thereafter, is $700,000, as allocated under s. 560.207.
SB62, s. 94 5Section 94. 71.07 (3p) (c) 2m. bm. of the statutes is created to read:
SB62,48,126 71.07 (3p) (c) 2m. bm. The maximum amount of the credits that may be claimed
7by members of dairy cooperatives under this subsection and ss. 71.28 (3p) and 71.47
8(3p) in fiscal year 2009-10 is $600,000, as allocated under s. 560.207, and the
9maximum amount of the credits that may be claimed by members of dairy
10cooperatives under this subsection and ss. 71.28 (3p) and 71.47 (3p) in fiscal year
112010-11, and in each fiscal year thereafter, is $700,000, as allocated under s.
12560.207.
SB62, s. 95 13Section 95. 71.07 (3p) (c) 3. of the statutes is amended to read:
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