SB45: Bill Text

SB45,733,19 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.

SB45,733,21 2. An amount equal to 25 percent of the production expenditures paid by the claimant in the taxable year to produce an accredited production.

SB45,734,3 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.

SB45,734,7 (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.

SB45,734,13 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.

SB45,734,17 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.

SB45,735,2 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.

SB45,735,6 (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.

SB45,735,11 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).

SB45,735,20 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.

SB45,1389 Section 1389. 71.47 (5h) of the statutes is created to read:

SB45,735,23 71.47 (5h) Film production company investment credit. (a) Definitions. In this subsection:

SB45,736,2 1. “Claimant” means a person who files a claim under this subsection and who does business in this state as a film production company.

SB45,736,5 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.

SB45,736,8 3. “Physical work” does not include preliminary activities such as planning, designing, securing financing, researching, developing specifications, or stabilizing property to prevent deterioration.

SB45,736,13 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.

SB45,736,15 5. “Used exclusively” means used to the exclusion of all other uses except for other use not exceeding 5 percent of total use.

SB45,736,21 (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. 71.43, 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 25 percent of the following that the claimant paid in the taxable year to establish a film production company in this state:

SB45,736,22 1. The purchase price of depreciable, tangible personal property.

SB45,737,2 2. The amount expended to acquire, construct, rehabilitate, remodel, or repair real property.

SB45,737,6 (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.

SB45,737,11 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.

SB45,737,15 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.

SB45,737,19 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.

SB45,738,4 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.

SB45,738,6 (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.

SB45,738,15 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.

SB45,1390 Section 1390. 71.47 (6) (a) 1m. of the statutes is repealed.

SB45,1391 Section 1391. 71.47 (6) (a) 2m. of the statutes is amended to read:

SB45,739,2 71.47 (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. 71.43, 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.

SB45,1392 Section 1392. 71.47 (6) (a) 3. of the statutes is amended to read:

SB45,739,17 71.47 (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. 71.43, 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- providing 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.

SB45,1393 Section 1393. 71.47 (6) (a) 4. of the statutes is created to read:

SB45,739,24 71.47 (6) (a) 4. For taxable years beginning after December 31, 2025, any person may claim as a credit against taxes otherwise due under s. 71.43, 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.

SB45,1394 Section 1394. 71.47 (6) (c) (intro.) of the statutes is amended to read:

SB45,740,6 71.47 (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:

SB45,1395 Section 1395. 71.47 (6) (cn) (intro.) of the statutes is amended to read:

SB45,740,10 71.47 (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:

SB45,1396 Section 1396. 71.47 (6) (f) of the statutes is renumbered 71.47 (6) (f) 1. and amended to read:

SB45,741,13 71.47 (6) (f) 1. A partnership, limited liability company, or tax-option corporation may not claim the credit under this subsection par. (a) 2m. and 3. The partners of a partnership, members of a limited liability company, or shareholders in a tax-option corporation may claim the credit under this subsection par. (a) 2m. and 3. based on eligible costs incurred by the partnership, limited liability company, or tax-option corporation. The partnership, limited liability company, or tax-option corporation shall calculate the amount of the credit which may be claimed by each partner, member, or shareholder and shall provide that information to the partner, member, or shareholder. For shareholders of a tax-option corporation, the credit may be allocated in proportion to the ownership interest of each shareholder. Credits computed by a partnership or limited liability company may be claimed in proportion to the ownership interests of the partners or members or allocated to partners or members as provided in a written agreement among the partners or members that is entered into no later than the last day of the taxable year of the partnership or limited liability company, for which the credit is claimed. For a partnership or limited liability company that places property in service after June 29, 2008, and before January 1, 2009, the credit attributable to such property may be allocated, at the election of the partnership or limited liability company, to partners or members for a taxable year of the partnership or limited liability company that ends after June 29, 2008, and before January 1, 2010. Any partner or member who claims the credit as provided under this paragraph shall attach a copy of the agreement, if applicable, to the tax return on which the credit is claimed. A person claiming the credit as provided under this paragraph is solely responsible for any tax liability arising from a dispute with the department of revenue related to claiming the credit.

SB45,1397 Section 1397. 71.47 (6) (f) 2. of the statutes is created to read:

SB45,741,18 71.47 (6) (f) 2. a. A partnership, limited liability company, or tax-option corporation may make an election under s. 71.21 (6) (a) or 71.365 (4m) (a) to claim the credit under par. (a) 4. against the net income or franchise tax otherwise payable to this state on income of the same year.

SB45,741,20 b. A partnership’s partners, limited liability company’s members, and tax- option corporation’s shareholders may not claim the credit under par. (a) 4.

SB45,1398 Section 1398. 71.47 (6) (g) 1. of the statutes is amended to read:

SB45,742,2 71.47 (6) (g) 1. If Except as provided in subd. 1m., if a person who claims the credit under this subsection elects to claim the credit based on claiming amounts for expenditures as the expenditures are paid, rather than when the rehabilitation work is completed, the person shall file an election form with the department, in the manner prescribed by the department.

SB45,1399 Section 1399. 71.47 (6) (g) 1m. of the statutes is created to read:

SB45,742,6 71.47 (6) (g) 1m. No person may claim the credit under par. (a) 4. unless the person claims the credit for the taxable year in which the rehabilitation work is completed.

SB45,1400 Section 1400. 71.47 (6) (h) of the statutes is amended to read:

SB45,742,19 71.47 (6) (h) Any person, including a nonprofit entity described in section 501 (c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under par. (a) 2m. or, 3., or 4., 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 with each transfer. The transferor may file a claim for more than one taxable year on a form prescribed by the department to compute all years of the credit under par. (a) 2m. or, 3., or 4., at the time of the transfer request. The transferee may first use the credit to offset tax in the taxable year of the transferor in which the transfer occurs, and may use the credit only to offset tax in taxable years otherwise allowed to be claimed and carried forward by the original claimant.

SB45,1401 Section 1401. 71.47 (8b) (a) 7. of the statutes is amended to read:

SB45,743,6 71.47 (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.

SB45,1402 Section 1402. 71.47 (8m) of the statutes is created to read:

SB45,743,9 71.47 (8m) Universal changing station credit. (a) Definitions. In this subsection:

SB45,743,11 1. “Claimant” means a person who files a claim under this subsection and meets either of the following conditions during the preceding taxable year:

SB45,743,12 a. Had gross receipts that did not exceed $1,000,000.

SB45,743,13 b. Employed no more than 30 full-time employees.

SB45,743,15 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.

SB45,743,16 3. “Universal changing station” has the meaning given in s. 71.07 (8m) (a) 3.

SB45,743,21 (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. 71.43, 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.

SB45,744,4 (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.

SB45,744,5 2. The credit claimed under this subsection may not exceed $5,125.

SB45,744,12 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.

SB45,744,14 (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.

SB45,1403 Section 1403. 71.49 (1) (cu) of the statutes is created to read:

SB45,744,16 71.49 (1) (cu) Universal changing station credit under s. 71.47 (8m).

SB45,1404 Section 1404. 71.49 (1) (epr) of the statutes is created to read:

SB45,744,19 71.49 (1) (epr) Film production company investment credit under s. 71.47 (5h).

SB45,1405 Section 1405. 71.49 (1) (eps) of the statutes is created to read:

SB45,744,21 71.49 (1) (eps) Film production services credit under s. 71.47 (5f) (b) 1. and 3.

SB45,1406 Section 1406. 71.49 (1) (f) of the statutes is amended to read:

SB45,745,4 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.

SB45,1407 Section 1407. Subchapter VIII (title) of chapter 71 [precedes 71.51] of the statutes is repealed and recreated to read:

SB45,745,7 CHAPTER 71

SB45,745,9 SUBCHAPTER VIII PROPERTY TAX AND RENT REBATE

SB45,1408 Section 1408. 71.52 (4) of the statutes is amended to read:

SB45,745,12 71.52 (4) “Household” means a claimant and an individual related to the claimant as husband or wife his or her spouse.

SB45,1409 Section 1409. 71.54 (1) (g) (intro.) of the statutes is amended to read:

SB45,745,16 71.54 (1) (g) 2012 and thereafter to 2025. (intro.) The amount of any claim filed in 2012 and thereafter to 2025 and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:

SB45,1410 Section 1410. 71.54 (1) (g) 4. of the statutes is amended to read:

SB45,745,24 71.54 (1) (g) 4. Except as provided in subds. 5. and 7., for For claims filed in 2018 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year, no credit may be allowed under this paragraph if the claimant has no earned income in the taxable year to which the claim relates unless the claimant is disabled and provides the proof required under subd. 6. or the claimant or the claimant’s spouse is over the age of 61 at the close of the year to which the claim relates.

SB45,1411 Section 1411. 71.54 (1) (g) 5. of the statutes is repealed.

SB45,1412 Section 1412. 71.54 (1) (g) 6. (intro.) of the statutes is amended to read:

SB45,746,6 71.54 (1) (g) 6. (intro.) With regard to a claimant who is disabled, the A claimant who is disabled shall provide with his or her return proof that his or her disability is in effect for the taxable year to which the claim relates. Proof of disability may be demonstrated by any of the following:

SB45,1413 Section 1413. 71.54 (1) (g) 7. of the statutes is repealed.

SB45,1414 Section 1414. 71.54 (1) (h) of the statutes is created to read:

SB45,746,11 71.54 (1) (h) 2026 and thereafter. Subject to sub. (2m), the amount of any claim filed in 2026 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:

SB45,746,15 1. If the household income was $19,000 or less in the year to which the claim relates, the claim is limited to 80 percent of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant’s homestead.

SB45,746,20 2. If the household income was more than $19,000 in the year to which the claim relates, the claim is limited to 80 percent of the amount by which the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant’s homestead exceeds 7.891 percent of the household income exceeding $19,000.

SB45,746,21 3. No credit may be allowed if the household income exceeds $37,500.