LRB-2253/1
EKL:cdc
2019 - 2020 LEGISLATURE
September 5, 2019 - Introduced by Senators Marklein, Bernier, Jacque,
Olsen,
Stroebel and Testin, cosponsored by Representatives Vruwink, Edming,
Horlacher, Kulp, Kurtz, Loudenbeck, Novak, Petryk, Plumer, Ramthun,
Tauchen, Thiesfeldt, Tranel, Tusler and VanderMeer. Referred to
Committee on Agriculture, Revenue and Financial Institutions.
SB387,1,4
1An Act to amend 71.07 (5n) (a) 6. and 71.28 (5n) (a) 6.; and
to create 71.07 (5n)
2(a) 6. a. and b. and 71.28 (5n) (a) 6. a. and b. of the statutes;
relating to:
3including crop insurance proceeds in the manufacturing and agricultural tax
4credit.
Analysis by the Legislative Reference Bureau
This bill includes crop insurance proceeds in a person's production gross
receipts for purposes of the manufacturing and agricultural tax credit.
Currently, a person may claim a tax credit on the basis of the person's income
from manufacturing or agriculture. The starting point for calculating the credit is
determining the person's production gross receipts, which are the gross receipts from
the lease, rental, license, sale, exchange, or other disposition of tangible personal
property that is either manufactured by the claimant on property assessed as
manufacturing property or produced, grown, or extracted by the claimant on or from
property assessed as agricultural property. Under the bill, insurance proceeds that
are received by a person due to the destruction of, or damage to, crops are included
in the person's production gross receipts and, therefore, included in the calculation
of the credit's value.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB387,1
1Section
1. 71.07 (5n) (a) 6. of the statutes is amended to read:
SB387,2,42
71.07
(5n) (a) 6. “Production gross receipts" means
gross receipts from the
3lease, rental, license, sale, exchange, or other disposition of qualified production
4property.
:
SB387,2
5Section
2. 71.07 (5n) (a) 6. a. and b. of the statutes are created to read:
SB387,2,86
71.07
(5n) (a) 6. a. For taxable years beginning before January 1, 2019, gross
7receipts from the lease, rental, license, sale, exchange, or other disposition of
8qualified production property.
SB387,2,139
b. For taxable years beginning after December 31, 2018, the sum of gross
10receipts from the lease, rental, license, sale, exchange, or other disposition of
11qualified production property and insurance proceeds received as a result of the
12destruction of, or damage to, crops to the extent the proceeds are included in federal
13adjusted gross income for the taxable year.
SB387,3
14Section
3. 71.28 (5n) (a) 6. of the statutes is amended to read:
SB387,2,1715
71.28
(5n) (a) 6. “Production gross receipts" means
gross receipts from the
16lease, rental, license, sale, exchange, or other disposition of qualified production
17property.:
SB387,4
18Section
4. 71.28 (5n) (a) 6. a. and b. of the statutes are created to read:
SB387,2,2119
71.28
(5n) (a) 6. a. For taxable years beginning before January 1, 2019, gross
20receipts from the lease, rental, license, sale, exchange, or other disposition of
21qualified production property.
SB387,3,5
1b. For taxable years beginning after December 31, 2018, the sum of gross
2receipts from the lease, rental, license, sale, exchange, or other disposition of
3qualified production property and insurance proceeds received as a result of the
4destruction of, or damage to, crops to the extent the proceeds are included in federal
5taxable income for the taxable year.
