Amendment ASA1-AB204

AB204-ASA1,5,12 71.21 (6) (d) 3. Except as provided in s. ss. 71.07 (7) (b) 3. and (12) (c) 1., 71.28 (12) (c) 1., and 71.47 (12) (c) 1., the tax credits under this chapter may not be claimed by the partnership.

AB204-ASA1,7 Section 7. 71.26 (2) (a) 4. of the statutes is amended to read:

AB204-ASA1,5,19 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm), (1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), and (10), and (12) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership’s, limited liability company’s, or tax-option corporation’s income under s. 71.21 (4) or 71.34 (1k) (g).

AB204-ASA1,8 Section 8. 71.28 (12) of the statutes is created to read:

AB204-ASA1,5,22 71.28 (12) Video game production credit. (a) Definitions. In this subsection:

AB204-ASA1,5,23 1. “Claimant” means a person who files a claim under this subsection.

AB204-ASA1,6,2 2. “Eligible wages” means wages paid by the claimant directly relating to qualifying activities in this state.

AB204-ASA1,6,4 3. “Qualifying activities” means developing, producing, or creating a video game product or platform.

AB204-ASA1,6,8 4. “Video game product or platform” means an electronic game developed for commercial distribution and entertainment that involves interaction with a user interface to generate visual feedback on a video device. “Video game product or platform” does not include any of the following:

AB204-ASA1,6,9 a. A product or platform that contains content in violation of s. 944.21.

AB204-ASA1,6,10 b. A product or platform designed for political or religious purposes.

AB204-ASA1,6,11 c. A product or platform regulated under chs. 562 to 569.

AB204-ASA1,6,13 d. A product or platform intended for use by gambling machine, as defined in s. 945.01 (3).

AB204-ASA1,6,16 e. A product or platform designed to provide information about one or more individuals or businesses, such as marketing and promotional websites or microsites.

AB204-ASA1,6,20 f. A product or platform designed for social media or interpersonal communications, such as podcasting, interactive advertising, journalism, video conferencing, wireless telecommunications, text-based channels, chat rooms, or broadcast or streamed viewing enhancements.

AB204-ASA1,6,22 g. A product or platform designed to stream linear media such as audio, video, or pictures.

AB204-ASA1,6,23 h. Small-scale electronic games embedded and used exclusively in advertising.

AB204-ASA1,7,3 5. “Wages” means wages, as defined in s. 71.63 (6), that are subject to withholding under subch. X and for which a statement under s. 71.65 (1) is furnished.

AB204-ASA1,7,7 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2024, a claimant may claim as a credit against the tax imposed under s. 71.23 an amount equal to 30 percent of the eligible wages paid by the person in the taxable year.

AB204-ASA1,7,11 (c) Limitations. 1. A partnership, limited liability company, or tax-option corporation, including a partnership, limited liability company, or tax-option corporation that makes an election under s. 71.21 (6) (a) or 71.365 (4m) (a) to be taxed at the entity level, may claim the credit under par. (b).

AB204-ASA1,7,13 2. A partnership’s partners, limited liability company’s members, and tax- option corporation’s shareholders may not claim the credit under par. (b).

AB204-ASA1,7,15 (d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credits under this subsection.

AB204-ASA1,7,21 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.23 or 71.365 (4m) (a), 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) (de). Notwithstanding s. 71.82 (1) (b), no interest shall be added to amounts certified under this subdivision.

AB204-ASA1,9 Section 9. 71.30 (3) (f) of the statutes is amended to read:

AB204-ASA1,8,5 71.30 (3) (f) The total of farmland preservation credit under subch. IX, jobs credit under s. 71.28 (3q), enterprise zone jobs credit under s. 71.28 (3w), electronics and information technology manufacturing zone credit under s. 71.28 (3wm), business development credit under s. 71.28 (3y), research credit under s. 71.28 (4) (k) 1., video game production credit under s. 71.28 (12), and estimated tax payments under s. 71.29.

AB204-ASA1,10 Section 10. 71.34 (1k) (g) of the statutes is amended to read:

AB204-ASA1,8,10 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (4), (5), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), and (10), and (12) and passed through to shareholders.

AB204-ASA1,11 Section 11. 71.365 (4m) (d) 2. of the statutes is amended to read:

AB204-ASA1,8,14 71.365 (4m) (d) 2. Except as provided in s. ss. 71.07 (7) (b) 3. and (12) (c) 1., 71.28 (12) (c) 1., and 71.47 (12) (c) 1., the tax credits under this chapter may not be claimed by the tax-option corporation.

AB204-ASA1,12 Section 12. 71.45 (2) (a) 10. of the statutes is amended to read:

AB204-ASA1,8,22 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3w), (3y), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), and (10), and (12) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership’s, limited liability company’s, or tax-option corporation’s income under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47 (3), (3t), (4), (4m), and (5).

AB204-ASA1,13 Section 13. 71.47 (12) of the statutes is created to read:

AB204-ASA1,9,2 71.47 (12) Video game production credit. (a) Definitions. In this subsection:

AB204-ASA1,9,3 1. “Claimant” means a person who files a claim under this subsection.

AB204-ASA1,9,5 2. “Eligible wages” means wages paid by the claimant directly relating to qualifying activities in this state.

AB204-ASA1,9,7 3. “Qualifying activities” means developing, producing, or creating a video game product or platform.

AB204-ASA1,9,11 4. “Video game product or platform” means an electronic game developed for commercial distribution and entertainment that involves interaction with a user interface to generate visual feedback on a video device. “Video game product or platform” does not include any of the following:

AB204-ASA1,9,12 a. A product or platform that contains content in violation of s. 944.21.

AB204-ASA1,9,13 b. A product or platform designed for political or religious purposes.

AB204-ASA1,9,14 c. A product or platform regulated under chs. 562 to 569.

AB204-ASA1,9,16 d. A product or platform intended for use by gambling machine, as defined in s. 945.01 (3).

AB204-ASA1,9,19 e. A product or platform designed to provide information about one or more individuals or businesses, such as marketing and promotional websites or microsites.

AB204-ASA1,9,23 f. A product or platform designed for social media or interpersonal communications, such as podcasting, interactive advertising, journalism, video conferencing, wireless telecommunications, text-based channels, chat rooms, or broadcast or streamed viewing enhancements.

AB204-ASA1,10,2 g. A product or platform designed to stream linear media such as audio, video, or pictures.

AB204-ASA1,10,3 h. Small-scale electronic games embedded and used exclusively in advertising.

AB204-ASA1,10,6 5. “Wages” means wages, as defined in s. 71.63 (6), that are subject to withholding under subch. X and for which a statement under s. 71.65 (1) is furnished.

AB204-ASA1,10,10 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2024, a claimant may claim as a credit against the tax imposed under s. 71.43 an amount equal to 30 percent of the eligible wages paid by the person in the taxable year.

AB204-ASA1,10,14 (c) Limitations. 1. A partnership, limited liability company, or tax-option corporation, including a partnership, limited liability company, or tax-option corporation that makes an election under s. 71.21 (6) (a) or 71.365 (4m) (a) to be taxed at the entity level, may claim the credit under par. (b).

AB204-ASA1,10,16 2. A partnership’s partners, limited liability company’s members, and tax- option corporation’s shareholders may not claim the credit under par. (b).

AB204-ASA1,10,18 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credits under this subsection.

AB204-ASA1,11,2 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.43, 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) (de). Notwithstanding s. 71.82 (1) (b), no interest shall be added to amounts certified under this subdivision.

AB204-ASA1,14 Section 14. 71.49 (1) (f) of the statutes is amended to read:

AB204-ASA1,11,8 71.49 (1) (f) The total of farmland preservation credit under subch. IX, jobs credit under s. 71.47 (3q), enterprise zone jobs credit under s. 71.47 (3w), business development credit under s. 71.47 (3y), research credit under s. 71.47 (4) (k) 1., video game production credit under s. 71.47 (12), and estimated tax payments under s. 71.48.

AB204-ASA1,11,9 (end)