AB50: Bill Text

AB50,1332 Section 1332. 71.28 (3w) (bm) 1. of the statutes is amended to read:

AB50,702,2 71.28 (3w) (bm) 1. In addition to the credits under par. pars. (b) and (bd) and subds. 2., 3., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.23 an amount equal to a percentage, as determined under s. 238.399 or s. 560.799, 2009 stats., not to exceed 100 percent, of the amount the claimant paid in the taxable year to upgrade or improve the job-related skills of any of the claimant’s full-time employees, to train any of the claimant’s full-time employees on the use of job-related new technologies, or to provide job-related training to any full-time employee whose employment with the claimant represents the employee’s first full-time job. This subdivision does not apply to employees who do not work in an enterprise zone.

AB50,1333 Section 1333. 71.28 (3w) (bm) 2. of the statutes is renumbered 71.28 (3w) (bm) 2. (intro.) and amended to read:

AB50,702,8 71.28 (3w) (bm) 2. (intro.) In addition to the credits under par. pars. (b) and (bd) and subds. 1., 3., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.23 one of the following amounts:

AB50,702,20 a. For a claimant whose contract is executed prior to January 1, 2026, an amount equal to the percentage, as determined under s. 238.399 or s. 560.799, 2009 stats., not to exceed 7 percent, of the claimant’s zone payroll paid in the taxable year to all of the claimant’s full-time employees whose annual wages are greater than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality, not including the wages paid to the employees determined under par. (b) 1., or greater than $30,000 in a tier II county or municipality, not including the wages paid to the employees determined under par. (b) 1., and who the claimant employed in the enterprise zone in the taxable year, if the total number of such employees is equal to or greater than the total number of such employees in the base year. A claimant may claim a credit under this subdivision for no more than 5 consecutive taxable years.

AB50,1334 Section 1334. 71.28 (3w) (bm) 2. b. of the statutes is created to read:

AB50,703,8 71.28 (3w) (bm) 2. b. For a claimant whose contract is executed after December 31, 2025, an amount equal to the percentage, as determined under s. 238.399, not to exceed 7 percent, of the claimant’s zone payroll paid in the taxable year to all of the claimant’s full-time employees whose annual wages are greater than $34,220 in a tier I county or municipality, not including the wages paid to the employees determined under par. (bd) 1., or greater than $45,390 in a tier II county or municipality, not including the wages paid to the employees determined under par. (bd) 1., and who the claimant employed in the enterprise zone in the taxable year, if the total number of such employees is equal to or greater than the total number of such employees in the base year.

AB50,1335 Section 1335. 71.28 (3w) (bm) 3. of the statutes is amended to read:

AB50,703,15 71.28 (3w) (bm) 3. In addition to the credits under par. pars. (b) and (bd) and subds. 1., 2., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s. 71.23 up to 10 percent of the claimant’s significant capital expenditures, as determined under s. 238.399 (5m) or s. 560.799 (5m), 2009 stats.

AB50,1336 Section 1336. 71.28 (3w) (bm) 4. of the statutes is amended to read:

AB50,704,2 71.28 (3w) (bm) 4. In addition to the credits under par. pars. (b) and (bd) and subds. 1., 2., and 3., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., for taxable years beginning after December 31, 2009, a claimant may claim as a credit against the tax imposed under s. 71.23, up to 1 percent of the amount that the claimant paid in the taxable year to purchase tangible personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services from Wisconsin vendors, as determined under s. 238.399 (5) (e) or s. 560.799 (5) (e), 2009 stats., except that the claimant may not claim the credit under this subdivision and subd. 3. for the same expenditures.

AB50,1337 Section 1337. 71.28 (3w) (cm) of the statutes is created to read:

AB50,704,14 71.28 (3w) (cm) Inflation adjustments. For taxable years beginning after December 31, 2026, the dollar amounts in pars. (a) 6. b., (bd) 1. a. and b., 2., and 3., and (bm) 2. b. shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the year before the previous year, as determined by the federal department of labor. Each amount that is revised under this paragraph shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10.

AB50,1338 Section 1338. 71.28 (3y) (b) 6. of the statutes is amended to read:

AB50,704,22 71.28 (3y) (b) 6. For taxable years beginning after December 31, 2023, and before January 1, 2025, the amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for employees, not to exceed 15 percent of such investment, and, for taxable years beginning after December 31, 2023, the amount of the investment made in establishing an employee child care program for employees, not to exceed 15 percent of such investment, as determined by the Wisconsin Economic Development Corporation.

AB50,1339 Section 1339. 71.28 (3y) (b) 7. of the statutes is created to read:

AB50,705,4 71.28 (3y) (b) 7. For taxable years beginning after December 31, 2024, the amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for employees, including contributions made by the person to a 3rd party responsible for building or rehabilitating workforce housing, including contributions made to a local revolving loan fund program, not to exceed 15 percent of such investment.

AB50,1340 Section 1340. 71.28 (4) (ad) 4. a. of the statutes is amended to read:

AB50,705,16 71.28 (4) (ad) 4. a. Except as provided in subds. 5. and, 6., and 7. for taxable years beginning after December 31, 2014, a corporation may claim a credit against the tax imposed under s. 71.23, as allocated under par. (d), an amount equal to 5.75 percent of the amount by which the corporation’s qualified research expenses for the taxable year exceed 50 percent of the average qualified research expenses for the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit. If the corporation had no qualified research expenses in any of the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit, the claimant may claim an amount equal to 2.875 percent of the corporation’s qualified research expenses for the taxable year for which the claimant claims the credit.

AB50,1341 Section 1341. 71.28 (4) (ad) 7. of the statutes is created to read:

AB50,706,7 71.28 (4) (ad) 7. a. For taxable years beginning after December 31, 2024, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s. 71.23, as allocated under par. (d), an amount equal to 11.5 percent of the amount by which the individual’s, partnership’s, tax-option corporation’s, or limited liability company’s qualified research expenses for the taxable year exceed 50 percent of the average qualified research expenses for the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit. If the individual, partnership, tax-option corporation, or limited liability company had no qualified research expenses in any of the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit, the claimant may claim an amount equal to 5.75 percent of the individual’s, partnership’s, tax-option corporation’s, or limited liability company’s qualified research expenses for the taxable year for which the claimant claims the credit.

AB50,706,15 b. For purposes of subd. 7. a., “qualified research expenses” means qualified research expenses as defined in section 41 of the Internal Revenue Code, except that “qualified research expenses” includes only expenses incurred by the individual, partnership, tax-option corporation, or limited liability company for research related to nuclear power, incurred for research conducted in this state, for the taxable year and does not include compensation used in computing the credit under sub. (1dx). Section 41 (f) (1), (2), (5), and (6) and (h) of the Internal Revenue Code does not apply to the credit under this subdivision.

AB50,1342 Section 1342. 71.28 (4) (k) (intro.) of the statutes is amended to read:

AB50,706,20 71.28 (4) (k) Refunds. (intro.) Notwithstanding par. (f), for taxable years beginning after December 31, 2017, if the allowable amount of the claim under par. (ad) 4., 5., or 6., or 7. exceeds the tax otherwise due under s. 71.23, all of the following apply:

AB50,1343 Section 1343. 71.28 (4) (k) 1. c. of the statutes is amended to read:

AB50,707,3 71.28 (4) (k) 1. c. For taxable years beginning after December 31, 2023, the amount of the claim not used to offset the tax due, not to exceed 25 percent of the allowable amount of the claim under par. (ad) 4., 5., or 6., or 7., 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) (d).

AB50,1344 Section 1344. 71.28 (5f) of the statutes is created to read:

AB50,707,6 71.28 (5f) Film production services credit. (a) Definitions. In this subsection:

AB50,707,13 1. “Accredited production” means a film, video, broadcast advertisement, or television production, as approved by the department of tourism, for which the aggregate salary and wages included in the cost of the production for the period ending 12 months after the month in which the principal filming or taping of the production begins exceeds $100,000 for a production that is 30 minutes or longer or $50,000 for a production that is less than 30 minutes. “Accredited production” does not include any of the following, regardless of the production costs:

AB50,707,15 a. News, current events, or public programming or a program that includes weather or market reports.

AB50,707,16 b. A talk show.

AB50,707,17 c. A production with respect to a questionnaire or contest.

AB50,707,18 d. A sports event or sports activity.

AB50,707,19 e. A gala presentation or awards show.

AB50,707,20 f. A finished production that solicits funds.

AB50,707,23 g. A production for which the production company is required under 18 USC 2257 to maintain records with respect to a performer portrayed in a single media or multimedia program.

AB50,708,2 h. A production produced primarily for industrial, corporate, or institutional purposes.

AB50,708,8 2. “Claimant” means a film production company, as defined in sub. (5h) (a) 2., that operates an accredited production in this state, if the company owns the copyright in the accredited production or has contracted directly with the copyright owner or a person acting on the owner’s behalf and if the company has a viable plan, as determined by the department of tourism, for the commercial distribution of the finished production.

AB50,708,13 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.

AB50,709,6 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.

AB50,709,9 (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. 71.23 any of the following amounts:

AB50,709,13 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.

AB50,709,15 2. An amount equal to 25 percent of the production expenditures paid by the claimant in the taxable year to produce an accredited production.

AB50,709,20 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.

AB50,710,2 (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.

AB50,710,8 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.

AB50,710,12 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.

AB50,710,20 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.

AB50,710,23 (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. Subsection (4) (f), as it applies to the credit under sub. (4), applies to the credits under par. (b) 1. and 3.

AB50,711,5 2. If the allowable amount of the claim under par. (b) 2. exceeds the tax otherwise due under s. 71.23 or no tax is due under s. 71.23, 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).

AB50,711,14 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.

AB50,1345 Section 1345. 71.28 (5h) of the statutes is created to read:

AB50,711,17 71.28 (5h) Film production company investment credit. (a) Definitions. In this subsection:

AB50,711,19 1. “Claimant” means a person who files a claim under this subsection and who does business in this state as a film production company.

AB50,711,22 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.

AB50,712,2 3. “Physical work” does not include preliminary activities such as planning, designing, securing financing, researching, developing specifications, or stabilizing property to prevent deterioration.

AB50,712,7 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.

AB50,712,9 5. “Used exclusively” means used to the exclusion of all other uses except for other use not exceeding 5 percent of total use.

AB50,712,15 (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. 71.23, 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:

AB50,712,16 1. The purchase price of depreciable, tangible personal property.

AB50,712,18 2. The amount expended to acquire, construct, rehabilitate, remodel, or repair real property.

AB50,712,22 (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.

AB50,713,4 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.

AB50,713,8 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

AB50,713,12 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.

AB50,713,20 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.

AB50,713,22 (d) Administration. 1. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credits under this subsection.

AB50,714,8 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.

AB50,1346 Section 1346. 71.28 (5n) (d) 2. of the statutes is renumbered 71.28 (5n) (d) 2. a. and amended to read:

AB50,714,17 71.28 (5n) (d) 2. a. Except as provided in subd. subds. 2. b., c., and d. and 3., 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

AB50,714,22 b. Except as provided in subds. 2. d. and 3., 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.

AB50,1347 Section 1347. 71.28 (5n) (d) 2. c. of the statutes is created to read:

AB50,715,5 71.28 (5n) (d) 2. c. Except as provided in subds. 2. d. and 3., 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.

AB50,1348 Section 1348. 71.28 (5n) (d) 2. d. of the statutes is created to read:

AB50,715,13 71.28 (5n) (d) 2. d. Except as provided in subd. 3., 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.

AB50,1349 Section 1349. 71.28 (6) (a) 1m. of the statutes is repealed.

AB50,1350 Section 1350. 71.28 (6) (a) 2m. of the statutes is amended to read:

AB50,715,23 71.28 (6) (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. 71.23, 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.

AB50,1351 Section 1351. 71.28 (6) (a) 3. of the statutes is amended to read:

AB50,716,14 71.28 (6) (a) 3. 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. 71.23, 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 qualified rehabilitated buildings, as defined in section 47 (c) (1) of the Internal Revenue Code, 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, and regardless of whether the rehabilitated property is used for multiple or revenue- producing purposes. No credit may be claimed under this subdivision for property listed as a contributing building in the state register of historic places or in the national register of historic places and no credit may be claimed under this subdivision for nonhistoric, nonresidential property converted into housing if the property has been previously used for housing.

AB50,1352 Section 1352. 71.28 (6) (a) 4. of the statutes is created to read:

AB50,716,21 71.28 (6) (a) 4. For taxable years beginning after December 31, 2025, any person may claim as a credit against taxes otherwise due under s. 71.23, 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 property located in this state, if the rehabilitated property is placed in service after December 31, 2025.

AB50,1353 Section 1353. 71.28 (6) (c) (intro.) of the statutes is amended to read:

AB50,717,3 71.28 (6) (c) (intro.) No person may claim the credit under par. (a) 2m. or 4. unless the claimant includes with the claimant’s return a copy of the claimant’s certification under s. 238.17. For certification purposes under s. 238.17, the claimant shall provide to the Wisconsin Economic Development Corporation all of the following:

AB50,1354 Section 1354. 71.28 (6) (cm) of the statutes is amended to read:

AB50,717,6 71.28 (6) (cm) Any credit claimed under this subsection par. (a) 2m. and 3. for Wisconsin purposes shall be claimed at the same time as for federal purposes.

AB50,1355 Section 1355. 71.28 (6) (cn) (intro.) of the statutes is amended to read:

AB50,717,10 71.28 (6) (cn) (intro.) For taxable years beginning after December 31, 2014, and before January 1, 2026, the Wisconsin Economic Development Corporation shall certify a person to claim a credit under par. (a) 3. if all of the following apply:

AB50,1356 Section 1356. 71.28 (6) (f) of the statutes is renumbered 71.28 (6) (f) 1. and amended to read: