SB970: Bill Text

SB970,,147 1. The applicant is licensed as a certified public accountant under ch. 442.

SB970,,148 2. The applicant is capable of conducting audits required under s. 73.03 (78) (a) 2. according to the requirements under s. 73.03 (78) (b) and any rules promulgated related to the conduct of those audits and agrees to comply with those rules.

SB970,,149 3. The applicant successfully completes any training required by the department.

SB970,,150 4. The applicant pays to the department the fee established under par. (c).

SB970,,151 5. The applicant posts and maintains any bond or insurance required by the department.

SB970,,152 (b) The department shall revoke the certification of an auditor certified under par. (a) if any of the following apply:

SB970,,153 1. The auditor no longer satisfies a requirement under par. (a) 1. or 5.

SB970,,154 2. The auditor violates s. 73.03 (78) (b) or any rules related to the conduct of audits required under s. 73.03 (78) (a) 2.

SB970,,155 (c) The department shall do all of the following:

SB970,,156 1. Establish a fee for granting certifications under par. (a).

SB970,,157 2. Publish and regularly update a list of all auditors certified under par. (a).

SB970,,158 3. Publish on its website all of the following:

SB970,,159 a. The application for certification under par. (a).

SB970,,160 b. The requirements for certification under par. (a).

SB970,,161 c. The requirements for audits under s. 73.03 (78) (b).

SB970,,162 d. The amount of the fee established under subd. 1.

SB970,14 Section 14. 73.03 (78) of the statutes is created to read:

SB970,,164 73.03 (78) (a) To implement a program to approve applications for a certificate for purposes of ss. 71.07 (11), 71.28 (11), and 71.47 (11). Application shall be made to the department in each taxable year for which a certificate is desired. The department may not approve an application unless all of the following apply:

SB970,,165 1. The department determines that the applicant’s qualified activities, as defined in s. 71.47 (11) (a) 6., will result in eligible expenditures, as defined in s. 71.47 (11) (a) 4., in excess of $25,000 for the taxable year.

SB970,,166 2. The department, or an auditor certified by the department under s. 71.748, conducts an audit of the applicant. The department shall review an audit conducted by an auditor certified under s. 71.748 and shall conduct any additional audit necessary and make necessary adjustments.

SB970,,167 3. The applicant reimburses the department for the cost of the audit conducted under subd. 2.

SB970,,168 (b) 1. In conducting an audit required under par. (a) 2., the department or auditor certified by the department under s. 71.748 shall do all of the following:

SB970,,169 a. Comply with any rules promulgated under par. (d).

SB970,,170 b. Use any sampling methods adopted by the department.

SB970,,171 c. Verify each reported expenditure that is included in the audit and identify and exclude each expenditure that does not satisfy the requirements under s. 71.07 (11), 71.28 (11), or 71.47 (11).

SB970,,172 2. No audit of an applicant required under par. (a) 2. may be performed by an auditor that is part of an accounting entity that is not determined by the department to be independent of the applicant, consistent with s. 442.10 and as provided in the code of professional conduct of the American Institute of Certified Public Accountants, or its successor organization, or as otherwise determined by the department.

SB970,,173 3. The department shall determine whether a sampling method is required for audits required under par. (a) 2., and if a sampling method is required, an appropriate sample method and size that accurately captures a truly representative sample of all expenditures for which a credit is claimed under s. 71.07 (11), 71.28 (11), or 71.47 (11).

SB970,,174 4. The department shall conduct an audit required under par. (a) 2. when no eligible auditor is able to access information necessary to conduct the audit because the information is confidential and the department is able to access the confidential information.

SB970,,175 (c) At least once every 2 years, beginning not later than December 31, 2025, the department shall submit a report to the governor and the standing committees of the legislature with jurisdiction over taxation under s. 13.172 (3) that includes all of the following:

SB970,,176 1. The number of applications approved under this subsection.

SB970,,177 2. The amount of the credits claimed under ss. 71.07 (11), 71.28 (11), and 71.47 (11).

SB970,,178 3. The number of people employed in this state in the industries eligible for the credits under ss. 71.07 (11), 71.28 (11), and 71.47 (11).

SB970,,179 4. The economic impact of the credits under ss. 71.07 (11), 71.28 (11), and 71.47 (11).

SB970,,180 5. The community impact of the industries eligible for the credits under ss. 71.07 (11), 71.28 (11), and 71.47 (11) in this state.

SB970,,181 (d) The department shall promulgate rules to administer this subsection.

SB970,,182 (end)