AB75-ASA1,888,9 71.28 (4m) Super research and development credit. (a) Definition. In this subsection, "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 claimant for research conducted in this state for the taxable year and except that "qualified research expenses" do not include compensation used in computing the credits under subs. (1dj) and (1dx).

AB75-ASA1,888,14 (b) Credit. Subject to the limitations provided under this subsection, for taxable years beginning on or after January 1, 2011, a corporation may claim as a credit against the tax imposed under s. 71.23, up to the amount of those taxes, an amount equal to the amount of qualified research expenses paid or incurred by the corporation in the taxable year that exceeds the amount calculated as follows:

AB75-ASA1,888,17 1. Determine the average amount of the qualified research expenses paid or incurred by the corporation in the 3 taxable years immediately preceding the taxable year for which a credit is claimed under this subsection.

AB75-ASA1,888,18 2. Multiply the amount determined under subd. 1. by 1.25.

AB75-ASA1,888,20 (c) Limitations. Subsection (4) (b) to (d) and (i), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB75-ASA1,888,22 (d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB75-ASA1,889,3 2. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 5 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.

AB75-ASA1, s. 1659 Section 1659. 71.28 (5b) (d) 3. of the statutes is created to read:

AB75-ASA1,889,9 71.28 (5b) (d) 3. For calendar years beginning after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

AB75-ASA1, s. 1659y Section 1659y. 71.28 (5f) of the statutes is repealed and recreated to read:

AB75-ASA1,889,11 71.28 (5f) Film production services credit. (a) Definitions. In this subsection:

AB75-ASA1,889,22 1. "Accredited production" means a film, video, broadcast advertisement, or television production, as approved by the department of commerce, for which the aggregate salary and wages included in the cost of the production for the period ending 12 months after the month in which the principal filming or taping of the production begins exceeds $100,000 for a production that is 30 minutes or longer or $50,000 for a production that is less than 30 minutes. "Accredited production" also means an electronic game, as approved by the department of commerce, for which the aggregate salary and wages included in the cost of the production for the period ending 36 months after the month in which the principal programming, filming, or taping of the production begins exceeds $100,000. "Accredited production" does not include any of the following, regardless of the production costs:

AB75-ASA1,889,24 a. News, current events, or public programming or a program that includes weather or market reports.

AB75-ASA1,889,25 b. A talk show.

AB75-ASA1,889,26 c. A production with respect to a questionnaire or contest.

AB75-ASA1,890,2 d. A sports event or sports activity.

AB75-ASA1,890,3 e. A gala presentation or awards show.

AB75-ASA1,890,4 f. A finished production that solicits funds.

AB75-ASA1,890,7 g. A production for which the production company is required under 18 USC 2257 to maintain records with respect to a performer portrayed in a single media or multimedia program.

AB75-ASA1,890,9 h. A production produced primarily for industrial, corporate, or institutional purposes.

AB75-ASA1,890,10 2. "Claimant" means a person who files a claim under this subsection.

AB75-ASA1,890,19 3. "Production expenditures" means any expenditures that are incurred in this state and directly used to produce an accredited production, including expenditures for set construction and operation, wardrobes, make-up, clothing accessories, photography, sound recording, sound synchronization, sound mixing, lighting, editing, film processing, film transferring, special effects, visual effects, renting or leasing facilities or equipment, renting or leasing motor vehicles, food, lodging, and any other similar expenditure as determined by the department of commerce. "Production expenditures" do not include salary, wages, or labor-related contract payments.

AB75-ASA1,890,22 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s. 71.23 any of the following amounts:

AB75-ASA1,891,7 1. An amount equal to 25 percent of the salary, wages, or labor-related contract payments paid by the claimant in the taxable year to individuals, including actors, who were residents of this state at the time that they were paid and who worked on an accredited production in this state, not including the salary, wages, or contract payments paid to any individual who was paid more than $250,000. A claimant may claim an additional amount equal to 3 percent of any salary, wages, or contract payments described in this subdivision if the individual who received the salary, wages, or contract payments was also living in an economically distressed area of this state, as determined by the department of commerce under s. 560.706 (2) (e), at the time that the individual was paid.

AB75-ASA1,891,14 2. An amount equal to 20 percent of the salary, wages, or labor-related contract payments paid by the claimant in the taxable year to individuals who were not residents of this state at the time that they were paid and who worked on an accredited production in this state, not including the salary, wages, or contract payments paid to any individual who was paid more than $250,000 or paid as above-the-line expenses to individuals such as nontechnical crew members, producers, writers, casting directors, and actors.

AB75-ASA1,891,16 3. An amount equal to 25 percent of the production expenditures paid by the claimant in the taxable year to produce an accredited production.

AB75-ASA1,891,19 (c) Limitations. 1. A claimant may not claim a credit under this subsection if less than 35 percent of the total budget for the accredited production is spent in this state.

AB75-ASA1,891,23 2. The total amount of the credits that a claimant may claim under par. (b) 2. in a taxable year shall not exceed an amount equal to the first $20,000 of salary, wages, or labor-related contract payments paid to each individual described in par. (b) 2. in the taxable year.

AB75-ASA1,892,3 3. No credit may be claimed under par. (b) 3. for the purchase of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) the sale of which is not sourced to this state, as provided under s. 77.522.