Chapter 71

71.07(2dx)(be) (be) Offset. A claimant in a development zone under s. 238.395 (1) (e) or s. 560.795 (1) (e), 2009 stats., [s. 560.795 (1) (e), 2009 stats., or s. 238.395 (1) (e), 2023 stats.,] may offset any credits claimed under this subsection, including any credits carried over, against the amount of the tax otherwise due under this subchapter attributable to all of the claimant’s income and against the tax attributable to income from directly related business operations of the claimant.

71.07 Note NOTE: The correct cross-reference is shown in brackets. Section 238.395 was repealed by 2025 Wis. Act 118. Corrective legislation is pending.

71.07(2dx)(bg) (bg) Other entities. For claimants in a development zone under s. 238.395 (1) (e) or s. 560.795 (1) (e), 2009 stats., [s. 560.795 (1) (e), 2009 stats., or s. 238.395 (1) (e), 2023 stats.,] partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and amount of, that credit shall be determined on the basis of their economic activity, not that of their shareholders, partners, or members. The corporation, partnership, or company shall compute the amount of the credit that may be claimed by each of its shareholders, partners, or members and shall provide that information to each of its shareholders, partners, or members. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit based on the partnership’s, company’s, or corporation’s activities in proportion to their ownership interest and may offset it against the tax attributable to their income.

71.07 Note NOTE: The correct cross-reference is shown in brackets. Section 238.395 was repealed by 2025 Wis. Act 118. Corrective legislation is pending.

71.07(2dx)(c) (c) Credit precluded. If the certification of a person for tax benefits under s. 238.365 (3), 238.397 (4), or 238.398 (3) or s. 560.765 (3), 2009 stats., s. 560.797 (4), 2009 stats., or s. 560.798 (3), 2009 stats., [s. 560.765 (3), 2009 stats., s. 560.797 (4), 2009 stats., s. 560.798 (3), 2009 stats., s. 238.365 (3), 2023 stats., s. 238.397 (4), 2023 stats., or s. 238.398 (3), 2023 stats.,] is revoked, or if the person becomes ineligible for tax benefits under s. 238.395 (3) or s. 560.795 (3), 2009 stats., [s. 560.795 (3), 2009 stats., or s. 238.395 (3), 2023 stats.,] that person may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years and that person may not carry over unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years.

71.07 Note NOTE: The correct cross-references are shown in brackets. Sections 238.365, 238.395, 238.397, and 238.398 were repealed by 2025 Wis. Act 118. Corrective legislation is pending.

71.07(2dx)(d) (d) Carry-over precluded. If a person who is entitled under s. 238.395 (3) or s. 560.795 (3), 2009 stats., [s. 560.795 (3), 2009 stats., or s. 238.395 (3), 2023 stats.,] to claim tax benefits or certified under s. 238.365 (3), 238.397 (4), or 238.398 (3) or s. 560.765 (3), 2009 stats., s. 560.797 (4), 2009 stats., or s. 560.798 (3), 2009 stats., [s. 560.765 (3), 2009 stats., s. 560.797 (4), 2009 stats., s. 560.798 (3), 2009 stats., s. 238.365 (3), 2023 stats., s. 238.397 (4), 2023 stats., or s. 238.398 (3), 2023 stats.,] for tax benefits ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.

71.07 Note NOTE: The correct cross-references are shown in brackets. Sections 238.365, 238.395, 238.397, and 238.398 were repealed by 2025 Wis. Act 118. Corrective legislation is pending.

71.07(2dx)(e) (e) Administration.

71.07(2dx)(e)1. 1. Section 71.28 (5b) (e) to (h), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection. Claimants shall include with their returns a copy of their certification for tax benefits and a copy of the department of commerce’s verification of their expenses.

71.07(2dx)(e)2. 2. The credit under this subsection may not be claimed by partnerships, limited liability companies, and tax-option corporations but the eligibility for, and the amount of, that credit shall be determined on the basis of their economic activity, not that of their shareholders, partners, or members. The corporation, partnership, or limited liability company shall compute the amount of credit that may be claimed by each of its shareholders, partners, or members and shall provide that information to each of its shareholders, partners, or members. That credit may be claimed by partners, members of limited liability companies, and shareholders of tax-option corporations in proportion to their ownership interests.

Effective date note NOTE: Sub. (2dx) is repealed eff. 1-1-43 by 2025 Wis. Act 118.

71.07(2dy) (2dy) Economic development tax credit.

71.07(2dy)(a) (a) Definition. In this subsection, “claimant” means a person who files a claim under this subsection and is certified under s. 238.301 (2) or s. 560.701 (2), 2009 stats., [s. 560.701 (2), 2009 stats., or s. 238.301 (2), 2023 stats.,] and authorized to claim tax benefits under s. 238.303 or s. 560.703, 2009 stats. [s. 560.703, 2009 stats., or s. 238.303, 2023 stats.].

71.07 Note NOTE: The correct cross-references are shown in brackets. Sections 238.301 and 238.303 were repealed by 2025 Wis. Act 118. Corrective legislation is pending.

71.07(2dy)(b) (b) Filing claims. Subject to the limitations under this subsection and ss. 238.301 to 238.306 or ss. 560.701 to 560.706, 2009 stats., [ss. 560.701 to 560.706, 2009 stats., or s. 238.301, 2023 stats., s. 238.302, 2023 stats., s. 238.303, 2023 stats., s. 238.304, 2023 stats., s. 238.3045, 2023 stats., s. 238.305, 2023 stats., and s. 238.306, 2023 stats.,] for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of the tax, the amount authorized for the claimant under s. 238.303 or s. 560.703, 2009 stats. [s. 560.703, 2009 stats., or s. 238.303, 2023 stats.].

71.07 Note NOTE: The correct cross-references are shown in brackets. Sections 238.301 to 238.306 were repealed by 2025 Wis. Act 118. Corrective legislation is pending.

71.07(2dy)(c) (c) Limitations.

71.07(2dy)(c)1. 1. No credit may be allowed under this subsection unless the claimant includes with the claimant’s return a copy of the claimant’s certification under s. 238.301 (2) or s. 560.701 (2), 2009 stats. [s. 560.701 (2), 2009 stats., or s. 238.301 (2), 2023 stats.], and a copy of the claimant’s notice of eligibility to receive tax benefits under s. 238.303 (3) or s. 560.703 (3), 2009 stats. [s. 560.703 (3), 2009 stats., or s. 238.303 (3), 2023 stats.].

71.07 Note NOTE: The correct cross-references are shown in brackets. Sections 238.301 and 238.303 were repealed by 2025 Wis. Act 118. Corrective legislation is pending.

71.07(2dy)(c)2. 2. 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 authorization to claim tax benefits under s. 238.303 or s. 560.703, 2009 stats.[s. 560.703, 2009 stats., or s. 238.303, 2023 stats.] 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.

71.07 Note NOTE: The correct cross-reference is shown in brackets. Section 238.303 was repealed by 2025 Wis. Act 118. Corrective legislation is pending.

71.07(2dy)(d) (d) Administration.

71.07(2dy)(d)1. 1. Except as provided in subd. 2., s. 71.28 (5b) (e) and (f), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.

71.07(2dy)(d)2. 2. If a claimant’s certification is revoked under s. 238.305 or s. 560.705, 2009 stats., [s. 560.705, 2009 stats., or s. 238.305, 2023 stats.,] or if a claimant becomes ineligible for tax benefits under s. 238.302 or s. 560.702, 2009 stats., [s. 560.702, 2009 stats., or s. 238.302, 2023 stats.,] the claimant may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the claimant becomes ineligible for tax benefits; or succeeding taxable years and the claimant may not carry over unused credits from previous years to offset the tax imposed under s. 71.02 for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the claimant becomes ineligible for tax benefits; or succeeding taxable years.

71.07 Note NOTE: The correct cross-references are shown in brackets. Sections 238.302 and 238.305 were repealed by 2025 Wis. Act 118. Corrective legislation is pending.

71.07(2dy)(d)3. 3. Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

Effective date note NOTE: Sub. (2dy) is repealed eff. 1-1-37 by 2025 Wis. Act 118.

71.07(3) (3) Farmland preservation credit. The farmland preservation credit under subch. IX may be claimed against taxes otherwise due.

71.07(3g) (3g) Technology zones credit.

71.07(3g)(a) (a) Subject to the limitations under this subsection and s. 73.03 (35m) and s. 238.23, 2023 stats., and s. 560.96, 2009 stats., a business that is certified under s. 238.23 (3), 2023 stats., or s. 560.96 (3), 2009 stats., may claim as a credit against the taxes imposed under s. 71.02 an amount equal to the sum of the following, as established under s. 238.23 (3) (c), 2023 stats., or s. 560.96 (3) (c), 2009 stats.:

71.07(3g)(a)1. 1. The amount of real and personal property taxes imposed under s. 70.01 that the business paid in the taxable year.

71.07(3g)(a)2. 2. Ten percent of the following amounts of capital investments that are made by the business in the technology zone in the year to which the claim relates:

71.07(3g)(a)2.a. a. The purchase price of depreciable, tangible personal property.

71.07(3g)(a)2.b. b. The amount expended to acquire, construct, rehabilitate, remodel, or repair real property in a technology zone.

71.07(3g)(a)3. 3. Fifteen percent of the amount that is spent for the first 12 months of wages for each job that is created in a technology zone after certification.

71.07(3g)(b) (b) The department of revenue shall notify the department of commerce or the Wisconsin Economic Development Corporation of all claims under this subsection.

71.07(3g)(c) (c) Section 71.28 (5b) (e), (f), (g), and (h), as it applies to the credit under s. 71.28 (5b), applies to the credit under par. (a).

71.07(3g)(d) (d) 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. (a). 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 interest.

71.07(3g)(e) (e)

71.07(3g)(e)1. 1. No amount described under par. (a) 2. may be used in the calculation of a credit under this subsection if that amount is used in the calculation of any other credit under this chapter.

71.07(3g)(e)2. 2. The investments that relate to the amount described under par. (a) 2. for which a claimant makes a claim under this subsection must be retained for use in the technology zone for the period during which the claimant’s business is certified under s. 238.23 (3) or s. 560.96 (3), 2009 stats. [s. 560.96 (3), 2009 stats., or s. 238.23 (3), 2023 stats.].

71.07 Note NOTE: The correct cross-reference is shown in brackets. Section 238.23 was repealed by 2025 Wis. Act 118. Corrective legislation is pending.

71.07(3g)(f) (f) No credit may be allowed under this subsection unless the claimant includes with the claimant’s return:

71.07(3g)(f)1. 1. A copy of the verification that the claimant’s business is certified under s. 238.23 (3) or s. 560.96 (3), 2009 stats., [s. 560.96 (3), 2009 stats., or s. 238.23 (3), 2023 stats.,] and that the business has entered into an agreement under s. 238.23 (3) (d) or s. 560.96 (3) (d), 2009 stats. [s. 560.96 (3) (d), 2009 stats., or s. 238.23 (3) (d), 2023 stats.].

71.07 Note NOTE: The correct cross-reference is shown in brackets. Section 238.23 was repealed by 2025 Wis. Act 118. Corrective legislation is pending.

71.07(3g)(f)2. 2. A statement from the department of commerce or the Wisconsin Economic Development Corporation verifying the purchase price of the investment described under par. (a) 2. and verifying that the investment fulfills the requirement under par. (e) 2.

Effective date note NOTE: Sub. (3g) is repealed eff. 1-1-41 by 2025 Wis. Act 118, section 119.

71.07(3h) (3h) Biodiesel fuel production credit.

71.07(3h)(a) (a) Definitions. In this subsection:

71.07(3h)(a)1. 1. “Biodiesel fuel” has the meaning given in s. 168.14 (2m) (a).

71.07(3h)(a)2. 2. “Claimant” means a person who is engaged in the business of producing biodiesel fuel in this state and who files a claim under this subsection.

71.07(3h)(b) (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2011, and before January 1, 2014, for a claimant who produces at least 2,500,000 gallons of biodiesel fuel in this state in the taxable year, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of the tax, an amount that is equal to the number of gallons of biodiesel fuel produced by the claimant in this state in the taxable year multiplied by 10 cents.

71.07(3h)(c) (c) Limitations.

71.07(3h)(c)1. 1. The maximum amount of the credit that a claimant may claim under this subsection in a taxable year is $1,000,000.

71.07(3h)(c)2. 2. 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 biodiesel fuel production, as 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.

71.07(3h)(d) (d) Administration.

71.07(3h)(d)1. 1. Section 71.28 (5b) (e) to (h) as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.

71.07(3h)(d)2. 2. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013. Credits under this subsection for taxable years that begin before January 1, 2014, may be carried forward to taxable years that begin after December 31, 2013.

Effective date note NOTE: Sub. (3h) is repealed eff. 1-1-35 by 2025 Wis. Act 118.

71.07(3n) (3n) Dairy and livestock farm investment credit.

71.07(3n)(a) (a) In this subsection:

71.07(3n)(a)1. 1. “Claimant” means a person who files a claim under this subsection.

71.07(3n)(a)1m. 1m. “Dairy animals” includes heifers raised as replacement dairy animals.

71.07(3n)(a)1p. 1p. “Dairy farm” includes a facility used to raise heifers as replacement dairy animals.

71.07(3n)(a)2. 2. “Dairy farm modernization or expansion” means the construction, the improvement, or the acquisition of buildings or facilities, or the acquisition of equipment, for dairy animal housing, confinement, animal feeding, milk production, or waste management, including the following, if used exclusively related to dairy animals and if acquired and placed in service in this state during taxable years that begin after December 31, 2003, and before January 1, 2014:

71.07(3n)(a)2.a. a. Freestall barns.

71.07(3n)(a)2.b. b. Fences.

71.07(3n)(a)2.c. c. Watering facilities.

71.07(3n)(a)2.d. d. Feed storage and handling equipment.

71.07(3n)(a)2.e. e. Milking parlors.

71.07(3n)(a)2.f. f. Robotic equipment.

71.07(3n)(a)2.g. g. Scales.

71.07(3n)(a)2.h. h. Milk storage and cooling facilities.

71.07(3n)(a)2.i. i. Bulk tanks.

71.07(3n)(a)2.j. j. Manure pumping and storage facilities.

71.07(3n)(a)2.k. k. Digesters.

71.07(3n)(a)2.L. L. Equipment used to produce energy.

71.07(3n)(a)4. 4. “Livestock” means cattle, not including dairy animals; swine; poultry, including farm-raised pheasants, but not including other farm-raised game birds or ratites; fish that are raised in aquaculture facilities; sheep; and goats.

71.07(3n)(a)5. 5. “Livestock farm modernization or expansion” means the construction, the improvement, or the acquisition of buildings or facilities, or the acquisition of equipment, for livestock housing, confinement, feeding, or waste management, including the following, if used exclusively related to livestock and if acquired and placed in service in this state during taxable years that begin after December 31, 2005, and before January 1, 2014:

71.07(3n)(a)5.a. a. Birthing structures.

71.07(3n)(a)5.b. b. Rearing structures.

71.07(3n)(a)5.c. c. Feedlot structures.

71.07(3n)(a)5.d. d. Feed storage and handling equipment.

71.07(3n)(a)5.e. e. Fences.

71.07(3n)(a)5.f. f. Watering facilities.

71.07(3n)(a)5.g. g. Scales.

71.07(3n)(a)5.h. h. Manure pumping and storage facilities.

71.07(3n)(a)5.i. i. Digesters.