AB64-ASA1,616,8 4. “Wages" means wages under section 3306 (b) of the Internal Revenue Code, determined without regard to any dollar limitations.

AB64-ASA1,616,9 5. “Zone” means a zone designated under s. 238.396 (1m).

AB64-ASA1,616,15 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.

AB64-ASA1,616,17 (b) Filing claims; payroll. Subject to the limitations provided in this subsection and s. 238.396, a claimant may claim as a credit an amount calculated as follows:

AB64-ASA1,616,19 1. Determine the zone payroll for the taxable year for full-time employees employed by the claimant.

AB64-ASA1,616,20 2. Multiply the amount determined under subd. 1. by 17 percent.

AB64-ASA1,616,24 (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 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).

AB64-ASA1,617,6 (c) Limitations. Partnerships, limited liability companies, and tax-option corporations may claim the credit under this subsection as provided under par. (d). 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.

AB64-ASA1,617,12 (d) Administration. Claims under this subsection shall be made to the Wisconsin Economic Development Corporation using policies and procedures established by the corporation board. The corporation shall certify valid claims 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.

AB64-ASA1,1037t Section 1037t. 71.07 (3y) (b) (intro.) of the statutes is amended to read:

AB64-ASA1,617,17 71.07 (3y) (b) Filing claims. (intro.) 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:

AB64-ASA1,1037u Section 1037u. 71.07 (3y) (c) 1. of the statutes is amended to read:

AB64-ASA1,618,4 71.07 (3y) (c) 1. Partnerships For claims filed before January 1, 2018, 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. For claims filed after December 31, 2017, partnerships, limited liability companies, and tax-option corporations may claim the credit under this subsection as provided under par. (d) 2. b.

AB64-ASA1,1037v Section 1037v. 71.07 (3y) (c) 2. of the statutes is amended to read:

AB64-ASA1,618,8 71.07 (3y) (c) 2. No For claims filed before January 1, 2018, 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.

AB64-ASA1,1037w Section 1037w. 71.07 (3y) (d) 1. of the statutes is amended to read:

AB64-ASA1,618,12 71.07 (3y) (d) 1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection. This subdivision does not apply to claims filed after December 31, 2017.

AB64-ASA1,1038g Section 1038g. 71.07 (3y) (d) 2. of the statutes is renumbered 71.07 (3y) (d) 2. a. and amended to read:

AB64-ASA1,618,21 71.07 (3y) (d) 2. a. If For claims filed before January 1, 2018, 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 subd. 2. a.

AB64-ASA1,1038h Section 1038h. 71.07 (3y) (d) 2. b. of the statutes is created to read:

AB64-ASA1,619,4 71.07 (3y) (d) 2. b. For claims filed after December 31, 2017, claims under this subsection shall be made to the Wisconsin Economic Development Corporation using policies and procedures established by the corporation board. The corporation shall certify valid claims to the department of administration for payment by check, share draft, or other draft drawn from the appropriation under s. 20.835 (2) (bg). Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subd. 2. b.

AB64-ASA1,1038m Section 1038m. 71.07 (4k) (b) 4. a. of the statutes is amended to read:

AB64-ASA1,619,20 71.07 (4k) (b) 4. 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 or 71.08, 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.

AB64-ASA1,1038p Section 1038p. 71.07 (4k) (b) 5. a. of the statutes is amended to read:

AB64-ASA1,620,10 71.07 (4k) (b) 5. 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 or 71.08, 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.

AB64-ASA1,1038r Section 1038r. 71.07 (4k) (b) 6. a. of the statutes is amended to read:

AB64-ASA1,620,25 71.07 (4k) (b) 6. 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 or 71.08, 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.

AB64-ASA1,1038s Section 1038s. 71.07 (4k) (e) of the statutes is renumbered 71.07 (4k) (e) 1. and amended to read:

AB64-ASA1,621,5 71.07 (4k) (e) 1. Section For taxable years beginning before January 1, 2018, s. 71.28 (4) (b) to (h), as it applies to the credit under s. 71.28 (4), applies to the credits under this subsection.