AB50: Bill Text

AB50,677,19 3. “Commercial domicile” means the location from which a trade or business is principally managed and directed, based on any factors the department of tourism determines are appropriate, including the location where the greatest number of employees of the trade or business work, the trade or business has its office or base of operations, or from which the employees are directed or controlled.

AB50,678,12 4. “Production expenditures” means any expenditure that is incurred in this state and directly used to produce an accredited production, including expenditures for writing, budgeting, casting, location scouts, set construction and operation, wardrobes, makeup, 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 pre-production, production, and post-production expenditure as determined by the department of tourism. “Production expenditures” includes expenditures for music that is performed, composed, or recorded by a musician who is a resident of this state or published or distributed by an entity that has its commercial domicile in this state; air travel that is purchased from a travel agency or company that has its commercial domicile in this state; and insurance that is purchased from an insurance agency or company that has its commercial domicile in this state. “Production expenditures” does not include salary or wages or expenditures for the marketing and distribution of an accredited production.

AB50,678,15 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2025, a claimant may claim as a credit against the tax imposed under s. 71.02 any of the following amounts:

AB50,678,19 1. An amount equal to 25 percent of the salary or wages paid by the claimant to the claimant’s employees in the taxable year for services rendered in this state to produce an accredited production and paid to employees who were residents of this state at the time that they were paid.

AB50,678,21 2. An amount equal to 25 percent of the production expenditures paid by the claimant in the taxable year to produce an accredited production.

AB50,679,3 3. An amount equal to the taxes imposed under ss. 77.52 and 77.53 that the claimant paid in the taxable year on the purchase of tangible personal property and taxable services that are used directly in producing an accredited production in this state, including all stages from the final script stage to the distribution of the finished production.

AB50,679,7 (c) Limitations. 1. No amount of the salary or wages paid under par. (b) 1. may be the basis for a credit under this subsection unless the salary or wages are paid for services rendered after December 31, 2025, and directly incurred to produce the accredited production.

AB50,679,13 2. The total amount of the credits that may be claimed by a claimant under par. (b) 1. shall not exceed an amount equal to the first $250,000 of salary or wages paid to each of the claimant’s employees, as described in par. (b) 1., in the taxable year, not including the salary or wages paid to the claimant’s 2 highest-paid employees, as described in par. (b) 1., in the taxable year, if the claimant’s budgeted production expenditures are $1,000,000 or more.

AB50,679,17 3. No credit may be allowed under this subsection unless the claimant files an application with the department of tourism, at the time and in the manner prescribed by the office, and the office approves the application. The claimant shall submit a copy of the approved application with the claimant’s return.

AB50,680,2 4. 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. (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 interest.

AB50,680,6 (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. Section 71.28 (4) (f), as it applies to the credit under s. 71.28 (4), applies to the credits under par. (b) 1. and 3.

AB50,680,11 2. If the allowable amount of the claim under par. (b) 2. exceeds the tax otherwise due under s. 71.02 or no tax is due under s. 71.02, 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) (bm).

AB50,680,20 3. Any person, including a nonprofit entity described in section 501 (c) (3) of the Internal Revenue Code, may sell or otherwise transfer a credit under this subsection, in whole or in part, to another person who is subject to the taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and submits with the notification a copy of the transfer documents, and the department certifies ownership of the credit. The transferee may first use the credit to offset tax of the transferor in the taxable year in which the transfer occurs and may use the credit only to offset tax in taxable years in which the credit is otherwise allowed to be claimed and carried forward by the original claimant.

AB50,1283 Section 1283. 71.07 (5h) of the statutes is created to read:

AB50,680,23 71.07 (5h) Film production company investment credit. (a) Definitions. In this subsection:

AB50,681,2 1. “Claimant” means a person who files a claim under this subsection and who does business in this state as a film production company.

AB50,681,5 2. “Film production company” means an entity that creates films, videos, broadcast advertisement, or television productions, not including the productions described under sub. (5f) (a) 1. a. to h.

AB50,681,8 3. “Physical work” does not include preliminary activities such as planning, designing, securing financing, researching, developing specifications, or stabilizing property to prevent deterioration.

AB50,681,13 4. “Previously owned property” means real property that the claimant or a related person owned during the 2 years prior to doing business in this state as a film production company and for which the claimant may not deduct a loss from the sale of the property to, or an exchange of the property with, the related person under section 267 of the Internal Revenue Code.

AB50,681,15 5. “Used exclusively” means used to the exclusion of all other uses except for other use not exceeding 5 percent of total use.

AB50,681,21 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2025, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of the taxes, for the first 3 taxable years that the claimant is doing business in this state as a film production company, an amount that is equal to 25 percent of the following that the claimant paid in the taxable year to establish a film production company in this state:

AB50,681,22 1. The purchase price of depreciable, tangible personal property.

AB50,682,2 2. The amount expended to acquire, construct, rehabilitate, remodel, or repair real property.

AB50,682,6 (c) Limitations. 1. A claimant may claim the credit under par. (b) 1., if the tangible personal property is purchased after December 31, 2025, and the personal property is used exclusively in the claimant’s business as a film production company.

AB50,682,11 2. A claimant may claim the credit under par. (b) 2. for an amount expended to construct, rehabilitate, remodel, or repair real property, if the claimant began the physical work of construction, rehabilitation, remodeling, or repair, or any demolition or destruction in preparation for the physical work, after December 31, 2025, or if the completed project is placed in service after December 31, 2025.

AB50,682,15 3. A claimant may claim the credit under par. (b) 2. for an amount expended to acquire real property, if the property is not previously owned property and if the claimant acquires the property after December 31, 2025, or if the completed project is placed in service after December 31, 2025.

AB50,682,19 4. No claim may be allowed under this subsection unless the department of tourism certifies, in writing, that the credits claimed under this subsection are for expenses related to establishing a film production company in this state and the claimant submits a copy of the certification with the claimant’s return.

AB50,683,4 5. 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. (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.

AB50,683,6 (d) Administration. 1. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credits under this subsection.

AB50,683,15 2. Any person, including a nonprofit entity described in section 501 (c) (3) of the Internal Revenue Code, may sell or otherwise transfer a credit under this subsection, in whole or in part, to another person who is subject to the taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and submits with the notification a copy of the transfer documents, and the department certifies ownership of the credit. The transferee may first use the credit to offset tax of the transferor in the taxable year in which the transfer occurs and may use the credit only to offset tax in taxable years in which the credit is otherwise allowed to be claimed and carried forward by the original claimant.

AB50,1284 Section 1284. 71.07 (5m) (a) 3. of the statutes is amended to read:

AB50,683,18 71.07 (5m) (a) 3. “Household” means a claimant and an individual related to the claimant as husband or wife his or her spouse.

AB50,1285 Section 1285. 71.07 (5n) (d) 2. of the statutes is renumbered 71.07 (5n) (d) 2. a. and amended to read:

AB50,684,3 71.07 (5n) (d) 2. a. For Except as provided in subd. 2. b., c., and d., for purposes of determining a claimant’s eligible qualified production activities income under this subsection, the claimant shall multiply the claimant’s qualified production activities income from property manufactured by the claimant by the manufacturing property factor and qualified production activities income from property produced, grown, or extracted by the claimant by the agriculture property factor. This subdivision does not apply if

AB50,684,8 b. Except as provided in subd. 2. d., if the claimant’s entire qualified production activities income results from the sale of tangible personal property that was manufactured, produced, grown, or extracted wholly in this state by the claimant, the claimant’s eligible qualified production activities income shall equal the amount of the claimant’s qualified production activities income.

AB50,1286 Section 1286. 71.07 (5n) (d) 2. c. of the statutes is created to read:

AB50,684,15 71.07 (5n) (d) 2. c. Except as provided in subd. 2. d., for taxable years beginning after December 31, 2024, for purposes of determining a claimant’s eligible qualified production activities income from manufacturing under this subsection, the claimant shall multiply the claimant’s qualified production activities income, not exceeding $300,000, from property manufactured by the claimant by the manufacturing property factor.

AB50,1287 Section 1287. 71.07 (5n) (d) 2. d. of the statutes is created to read:

AB50,684,23 71.07 (5n) (d) 2. d. For taxable years beginning after December 31, 2024, if a claimant’s entire qualified production activities income results from the sale of tangible personal property that was manufactured, produced, grown, or extracted wholly in this state by the claimant, the claimant’s eligible qualified production activities income from manufacturing under this subsection shall equal the amount of the claimant’s qualified production activities income from property manufactured by the claimant, not exceeding $300,000.

AB50,1288 Section 1288. 71.07 (6e) (a) 2. b. of the statutes is amended to read:

AB50,685,8 71.07 (6e) (a) 2. b. An individual who had served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces; who was a resident of this state at the time of entry into that active service or who had been a resident of this state for any consecutive 5-year period after entry into that active duty service; who was a resident of this state at the time of his or her death; and who had either a service-connected disability rating of 100 at least 70 percent under 38 USC 1114 or 1134 or a 100 percent disability rating based on individual unemployability.

AB50,1289 Section 1289. 71.07 (6e) (a) 3. d. of the statutes is amended to read:

AB50,685,12 71.07 (6e) (a) 3. d. Has either a service-connected disability rating of 100 at least 70 percent under 38 USC 1114 or 1134 or a 100 percent disability rating based on individual unemployability.

AB50,1290 Section 1290. 71.07 (6e) (a) 6. of the statutes is created to read:

AB50,685,15 71.07 (6e) (a) 6. “Rent constituting property taxes” has the meaning given in sub. (9) (a) 4.

AB50,1291 Section 1291. 71.07 (6e) (b) of the statutes is amended to read:

AB50,686,2 71.07 (6e) (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02 the amount of the claimant’s property taxes or rent constituting property taxes. If the allowable amount of the claim exceeds the income taxes otherwise due on the claimant’s income, the amount of the claim not used as an offset against those taxes shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft, or other draft from the appropriation under s. 20.835 (2) (em).

AB50,1292 Section 1292. 71.07 (6e) (c) 3. of the statutes is amended to read:

AB50,686,9 71.07 (6e) (c) 3. If an eligible veteran and an eligible spouse file separate returns, each spouse may claim a credit under this subsection for property taxes based on their respective ownership interest in the eligible veteran’s principal dwelling or for rent constituting property taxes based on 50 percent of the total rent constituting property taxes paid during the taxable year for the eligible veteran’s principal dwelling.

AB50,1293 Section 1293. 71.07 (6e) (c) 4. of the statutes is created to read:

AB50,686,13 71.07 (6e) (c) 4. If a service-connected disability rating is less than 100 percent, the amount that the claimant may claim under this subsection shall be multiplied by a percentage that equals that service-connected disability rating.

AB50,1294 Section 1294. 71.07 (8b) (a) 7. of the statutes is amended to read:

AB50,687,2 71.07 (8b) (a) 7. “Qualified development” means a qualified low-income housing project under section 42 (g) of the Internal Revenue Code that is financed with tax-exempt bonds, pursuant to section 42 (i) (2) described in section 42 (h) (4) (A) of the Internal Revenue Code, allocated the credit under section 42 of the Internal Revenue Code, and located in this state; except that the authority may waive, in the qualified allocation plan under section 42 (m) (1) (B) of the Internal Revenue Code, the requirements of tax-exempt bond financing and federal credit allocation to the extent the authority anticipates that sufficient volume cap under section 146 of the Internal Revenue Code will not be available to finance low-income housing projects in any year.

AB50,1295 Section 1295. 71.07 (8m) of the statutes is created to read:

AB50,687,5 71.07 (8m) Universal changing station credit. (a) Definitions. In this subsection:

AB50,687,9 1. “Claimant” means a sole proprietor, a partner of a partnership, a member of a limited liability company, or a shareholder of a tax-option corporation who files a claim under this subsection and meets either of the following conditions during the preceding taxable year:

AB50,687,10 a. Had gross receipts that did not exceed $1,000,000.

AB50,687,11 b. Employed no more than 30 full-time employees.

AB50,687,13 2. “Full-time employee” means an individual who is employed for at least 30 hours per week for 20 or more calendar weeks during a taxable year.

AB50,687,17 3. “Universal changing station” means a powered and height-adjustable adult changing table that is either floor mounted or wall mounted with a safety rail and can be used by an individual with a disability of either sex and the individual’s care provider for personal hygiene and that satisfies all of the following:

AB50,687,19 a. The changing table can lower to a height of 8 inches and raise to a height of 34 inches.

AB50,687,20 b. The changing table is at least 31 inches wide by 72 inches long.

AB50,687,21 c. The changing table supports at least 350 pounds.

AB50,688,3 (b) Filing claims. For taxable years beginning after December 31, 2024, subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, an amount equal to 50 percent of the amount the claimant paid during the taxable year to install a universal changing station.

AB50,688,9 (c) Limitations. 1. No credit may be claimed under this subsection unless the universal changing station is installed in a single-occupant restroom that measures at least 8 feet by 10 feet, with adequate space for a wheelchair and a care provider to maneuver; that is equipped with a waste receptacle, a toilet, a lavatory, a soap dispenser, and a paper towel dispenser; and that complies with accessibility standards under the federal Americans with Disabilities Act.

AB50,688,10 2. The credit claimed under this subsection may not exceed $5,125.

AB50,688,17 3. 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 the amounts paid by the entity. 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, and shareholders may claim the credit in proportion to their ownership interests.

AB50,688,19 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB50,1296 Section 1296. 71.07 (8s) of the statutes is created to read:

AB50,688,22 71.07 (8s) Flood insurance premiums credit. (a) Definitions. In this subsection:

AB50,688,23 1. “Claimant” means an individual who files a claim under this subsection.

AB50,689,2 2. “Flood insurance” means a flood insurance policy that covers the principal dwelling of the claimant.

AB50,689,8 (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. 71.02, up to the amount of those taxes, an amount equal to 10 percent of the amount of the premiums the claimant paid in the taxable year for flood insurance, but the amount of the credit may not exceed $60 in any taxable year.

AB50,689,10 (c) Limitations. 1. No credit may be claimed under this subsection by a part- year resident or a nonresident of this state.

AB50,689,12 2. No credit may be allowed under this subsection unless it is claimed within the period specified in s. 71.75 (2).

AB50,689,15 3. No credit may be allowed under this subsection for a taxable year covering a period of less than 12 months, except for a taxable year closed by reason of the death of the taxpayer.

AB50,689,17 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

AB50,1297 Section 1297. 71.07 (9e) (aj) (intro.) of the statutes is amended to read:

AB50,689,23 71.07 (9e) (aj) (intro.) For taxable years beginning after December 31, 2010, and before January 1, 2025, an individual may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the person is eligible for the taxable year under section 32 of the Internal Revenue Code:

AB50,1298 Section 1298. 71.07 (9e) (ak) of the statutes is created to read:

AB50,690,6 71.07 (9e) (ak) For taxable years beginning after December 31, 2024, an individual may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the individual is eligible for the taxable year under section 32 of the Internal Revenue Code:

AB50,690,8 1. If the individual has one qualifying child who has the same principal place of abode as the individual, 16 percent.

AB50,690,10 2. If the individual has 2 qualifying children who have the same principal place of abode as the individual, 25 percent.

AB50,690,12 3. If the individual has 3 or more qualifying children who have the same principal place of abode as the individual, 34 percent.

AB50,1299 Section 1299. 71.07 (9e) (b) of the statutes is amended to read:

AB50,690,18 71.07 (9e) (b) No credit may be allowed under this subsection to married persons, except married persons living apart who are treated as single under section 7703 (b) of the internal revenue code Internal Revenue Code, if the husband and wife spouses report their income on separate income tax returns for the taxable year.

AB50,1300 Section 1300. 71.07 (9m) (a) 1m. of the statutes is repealed.

AB50,1301 Section 1301. 71.07 (9m) (a) 2m. of the statutes is amended to read:

AB50,691,4 71.07 (9m) (a) 2m. For taxable years beginning after December 31, 2013, and before January 1, 2026, any person may claim as a credit against taxes otherwise due under s. 71.02, up to the amount of those taxes, an amount equal to 20 percent of the costs of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue Code, for certified historic structures on property located in this state, if the cost of the person’s qualified rehabilitation expenditures is at least $50,000 and the rehabilitated property is placed in service after December 31, 2013.