71.28(5n)(a)5.a.a. “Manufacturing property factor” means a fraction, the numerator of which is the average value of the claimant’s land and depreciable property, owned or rented and used in this state by the claimant during the taxable year to manufacture qualified production property, and the denominator of which is the average value of all the claimant’s land and depreciable property owned or rented during the taxable year and used by the claimant to manufacture qualified production property. 71.28(5n)(a)5.b.b. For purposes of subd. 5. a., property owned by the claimant is valued at its original cost and property rented by the claimant is valued at an amount equal to the annual rental paid by the claimant, less any annual rental received by the claimant from sub-rentals, multiplied by 8. 71.28(5n)(a)5.c.c. For purposes of subd. 5. a., the average value of property is determined by averaging the values at the beginning and ending of the taxable year, except that the secretary of revenue may require the averaging of monthly values during the taxable year, if such averaging is reasonably required to properly reflect the average value of the claimant’s property. 71.28(5n)(a)6.a.a. For taxable years beginning before January 1, 2019, gross receipts from the lease, rental, license, sale, exchange, or other disposition of qualified production property. 71.28(5n)(a)6.b.b. For taxable years beginning after December 31, 2018, the sum of gross receipts from the lease, rental, license, sale, exchange, or other disposition of qualified production property and insurance proceeds received as a result of the destruction of, or damage to, crops to the extent the proceeds are included in federal taxable income for the taxable year. 71.28(5n)(a)7.7. “Production gross receipts factor” means a fraction, the numerator of which is production gross receipts and the denominator of which is all gross income from whatever source, except for those items specifically excluded under the Internal Revenue Code as adopted by this state and otherwise excluded under Wisconsin law. For purposes of the denominator, income includes gross sales, gross dividends, gross interest income, gross rents, gross royalties, the gross sales price from the disposition of capital assets and business assets, gross income from pass-through entities, and all other gross receipts that are included in income, before apportionment for Wisconsin tax purposes under s. 71.25 (6). 71.28(5n)(a)8.8. “Qualified production activities income” means the amount of the claimant’s production gross receipts for the taxable year that exceeds the sum of the cost of goods sold that are allocable to such receipts, the direct costs that are allocable to such receipts, and the indirect costs multiplied by the production gross receipts factor. “Qualified production activities income” does not include any of the following: 71.28(5n)(a)8.b.b. Income from producing, transmitting, or distributing electricity, natural gas, or potable water. 71.28(5n)(a)8.d.d. Income from engineering or architectural services performed with respect to constructing real property. 71.28(5n)(a)8.e.e. Income from the sale of food and beverages prepared by the claimant at a retail establishment. 71.28(5n)(a)8.f.f. Income from the lease, rental, license, sale, exchange, or other disposition of land. 71.28(5n)(a)9.9. “Qualified production property” means any of the following: 71.28(5n)(a)9.a.a. Tangible personal property manufactured in whole or in part by the claimant on property that is located in this state and assessed as manufacturing property under s. 70.995. Tangible personal property manufactured in this state may only be qualified production property if it is manufactured on property approved to be classified as manufacturing real property for purposes of s. 70.995, even if it is not eligible to be listed on the department’s manufacturing roll until January 1 of the following year. 71.28(5n)(a)9.b.b. Tangible personal property produced, grown, or extracted in whole or in part by the claimant on or from property assessed as agricultural property under s. 70.32 (2) (a) 4. 71.28(5n)(a)9.c.c. Tangible personal property manufactured in whole or in part by the claimant with an establishment that is located in this state and classified as manufacturing under s. 70.995 (5n). A person wishing to classify the person’s establishment as manufacturing under this subd. 9. c. shall file an application in the form and manner prescribed by the department no later than July 1 of the taxable year for which the person wishes to claim the credit under this subsection, pursuant to s. 70.995 (5n). The department shall make a determination and provide written notice by December 31 of the year in which the application is filed. A determination on the classification under this subd. 9. c. may be appealed as provided under s. 70.995 (5n). 71.28(5n)(b)(b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.23, up to the amount of the tax, an amount equal to one of the following percentages of the claimant’s eligible qualified production activities income in the taxable year: 71.28(5n)(b)1.1. For taxable years beginning after December 31, 2012, and before January 1, 2014, 1.875 percent. 71.28(5n)(b)2.2. For taxable years beginning after December 31, 2013, and before January 1, 2015, 3.75 percent. 71.28(5n)(b)3.3. For taxable years beginning after December 31, 2014, and before January 1, 2016, 5.025 percent. 71.28(5n)(b)4.4. For taxable years beginning after December 31, 2015, 7.5 percent. 71.28(5n)(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 share of the income 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. 71.28(5n)(d)2.2. Except as provided in subd. 3., for purposes of determining a claimant’s eligible qualified production activities income under this subsection, the claimant shall multiply the claimant’s qualified production activities income from property manufactured by the claimant by the manufacturing property factor and qualified production activities income from property produced, grown, or extracted by the claimant by the agriculture property factor. This subdivision does not apply if the claimant’s entire qualified production activities income results from the sale of tangible personal property that was manufactured, produced, grown, or extracted wholly in this state by the claimant. 71.28(5n)(d)3.3. The amount of the eligible qualified production activities income that a claimant may claim in computing the credit under par. (b) is the lesser of the following: 71.28(5n)(d)3.a.a. The eligible qualified production activities income determined under subd. 2.