SB231: Bill Text

SB231,26,2 2. If the allowable amount of the claim under par. (b) 2. exceeds the tax otherwise due under s. 71.43 or no tax is 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) (bm).

SB231,26,11 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.

SB231,21 Section 21. 71.47 (5h) of the statutes is created to read:

SB231,26,14 71.47 (5h) Film production company investment credit. (a) Definitions. In this subsection:

SB231,26,16 1. “Claimant” means a person who files a claim under this subsection and who does business in this state as a film production company.

SB231,26,19 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 g.

SB231,26,22 3. “Physical work” does not include preliminary activities such as planning, designing, securing financing, researching, developing specifications, or stabilizing property to prevent deterioration.

SB231,27,4 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.

SB231,27,6 5. “Used exclusively” means used to the exclusion of all other uses except for other use not exceeding 5 percent of total use.

SB231,27,12 (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. 71.43, 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 30 percent of the following that the claimant paid in the taxable year to establish a film production company in this state:

SB231,27,13 1. The purchase price of depreciable, tangible personal property.

SB231,27,15 2. The amount expended to acquire, construct, rehabilitate, remodel, or repair real property.

SB231,27,19 (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.

SB231,28,2 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.

SB231,28,6 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.

SB231,28,10 4. No claim may be allowed under this subsection unless the state film office 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.

SB231,28,18 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.

SB231,28,20 (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.

SB231,29,6 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.

SB231,22 Section 22. 71.49 (1) (epr) of the statutes is created to read:

SB231,29,9 71.49 (1) (epr) Film production company investment credit under s. 71.47 (5h).

SB231,23 Section 23. 71.49 (1) (eps) of the statutes is created to read:

SB231,29,11 71.49 (1) (eps) Film production services credit under s. 71.47 (5f) (b) 1. and 3.

SB231,24 Section 24. 71.49 (1) (f) of the statutes is amended to read:

SB231,29,17 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., film production services credit under s. 71.47 (5f) (b) 2., and estimated tax payments under s. 71.48.

SB231,25 Section 25. Fiscal changes.

SB231,30,3 (1) State film office. In the schedule under s. 20.005 (3) for the appropriation to the department of tourism under s. 20.380 (1) (a), the dollar amount for fiscal year 2025-26 is increased by $199,300 to increase the authorized FTE positions for the state film office by 3.0 GPR positions for administration of the film production services credit and the film production company investment credit. In the schedule under s. 20.005 (3) for the appropriation to the department of tourism under s. 20.380 (1) (a), the dollar amount for fiscal year 2026-27 is increased by $254,000 to provide funding for the position authorized under this subsection.

SB231,26 Section 26. Effective date.

SB231,30,6 (1) This act takes effect on the day after publication, or on the 2nd day after publication of the 2025 biennial budget act, whichever is later.

SB231,30,7 (end)