AB50-ASA2,24414Section 244. 71.28 (5h) of the statutes is created to read: AB50-ASA2,312,161571.28 (5h) Film production company investment credit. (a) Definitions. 16In this subsection: AB50-ASA2,312,18171. “Claimant” means a person who files a claim under this subsection and 18who does business in this state as a film production company. AB50-ASA2,312,21192. “Film production company” means an entity that creates films, videos, 20broadcast advertisement, or television productions, not including the productions 21described in sub. (5f) (a) 1. a. to g. AB50-ASA2,313,2223. “Physical work” does not include preliminary activities such as planning,
1designing, securing financing, researching, developing specifications, or stabilizing 2property to prevent deterioration. AB50-ASA2,313,734. “Previously owned property” means real property that the claimant or a 4related person owned during the 2 years prior to doing business in this state as a 5film production company and for which the claimant may not deduct a loss from the 6sale of the property to, or an exchange of the property with, the related person 7under section 267 of the Internal Revenue Code. AB50-ASA2,313,985. “Used exclusively” means used to the exclusion of all other uses except for 9other use not exceeding 5 percent of total use. AB50-ASA2,313,1510(b) Filing claims. Subject to the limitations provided in this subsection, for 11taxable years beginning after December 31, 2025, a claimant may claim as a credit 12against the tax imposed under s. 71.23, up to the amount of the taxes, for the first 3 13taxable years that the claimant is doing business in this state as a film production 14company, an amount that is equal to 30 percent of the following that the claimant 15paid in the taxable year to establish a film production company in this state: AB50-ASA2,313,16161. The purchase price of depreciable, tangible personal property. AB50-ASA2,313,18172. The amount expended to acquire, construct, rehabilitate, remodel, or repair 18real property. AB50-ASA2,313,2219(c) Limitations. 1. A claimant may claim the credit under par. (b) 1., if the 20tangible personal property is purchased after December 31, 2025, and the personal 21property is used exclusively in the claimant’s business as a film production 22company. AB50-ASA2,314,4232. A claimant may claim the credit under par. (b) 2. for an amount expended to
1construct, rehabilitate, remodel, or repair real property, if the claimant began the 2physical work of construction, rehabilitation, remodeling, or repair, or any 3demolition or destruction in preparation for the physical work, after December 31, 42025, or if the completed project is placed in service after December 31, 2025. AB50-ASA2,314,853. A claimant may claim the credit under par. (b) 2. for an amount expended to 6acquire real property, if the property is not previously owned property and if the 7claimant acquires the property after December 31, 2025, or if the completed project 8is placed in service after December 31, 2025. AB50-ASA2,314,1294. No claim may be allowed under this subsection unless the state film office 10certifies, in writing, that the credits claimed under this subsection are for expenses 11related to establishing a film production company in this state and the claimant 12submits a copy of the certification with the claimant’s return. AB50-ASA2,314,15135. No credit may be allowed under this subsection for any amount that the 14claimant paid for expenses described in par. (b) that the claimant used to claim a 15credit under sub. (5f). AB50-ASA2,314,23166. Partnerships, limited liability companies, and tax-option corporations may 17not claim the credit under this subsection, but the eligibility for, and the amount of, 18the credit are based on their payment of amounts under par. (b). A partnership, 19limited liability company, or tax-option corporation shall compute the amount of 20credit that each of its partners, members, or shareholders may claim and shall 21provide that information to each of them. Partners, members of limited liability 22companies, and shareholders of tax-option corporations may claim the credit in 23proportion to their ownership interests. AB50-ASA2,315,2
1(d) Administration. 1. Subsection (4) (e) to (h), as it applies to the credit 2under sub. (4), applies to the credits under this subsection. AB50-ASA2,315,1132. Any person, including a nonprofit entity described in section 501 (c) (3) of 4the Internal Revenue Code, may sell or otherwise transfer a credit under this 5subsection, in whole or in part, to another person who is subject to the taxes 6imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the 7transfer, and submits with the notification a copy of the transfer documents, and 8the department certifies ownership of the credit. The transferee may first use the 9credit to offset tax of the transferor in the taxable year in which the transfer occurs 10and may use the credit only to offset tax in taxable years in which the credit is 11otherwise allowed to be claimed and carried forward by the original claimant. AB50-ASA2,315,13123. Notwithstanding s. 71.82, no interest shall be paid on a refund based on an 13amount certified under this subsection. AB50-ASA2,24514Section 245. 71.30 (3) (epr) of the statutes is created to read: AB50-ASA2,315,161571.30 (3) (epr) Film production company investment credit under s. 71.28 16(5h). AB50-ASA2,24617Section 246. 71.30 (3) (eps) of the statutes is created to read: AB50-ASA2,315,181871.30 (3) (eps) Film production services credit under s. 71.28 (5f) (b) 1. and 3. AB50-ASA2,24719Section 247. 71.30 (3) (f) of the statutes is amended to read: AB50-ASA2,316,22071.30 (3) (f) The total of farmland preservation credit under subch. IX, jobs 21credit under s. 71.28 (3q), enterprise zone jobs credit under s. 71.28 (3w), electronics 22and information technology manufacturing zone credit under s. 71.28 (3wm), 23business development credit under s. 71.28 (3y), research credit under s. 71.28 (4)
1(k) 1., film production services credit under s. 71.28 (5f) (b) 2., and estimated tax 2payments under s. 71.29. AB50-ASA2,2483Section 248. 71.34 (1k) (g) of the statutes is amended to read: AB50-ASA2,316,7471.34 (1k) (g) An addition shall be made for credits computed by a tax-option 5corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w), 6(3wm), (3y), (4), (5), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and 7passed through to shareholders. AB50-ASA2,2498Section 249. 71.45 (2) (a) 10. of the statutes is amended to read: AB50-ASA2,316,15971.45 (2) (a) 10. By adding to federal taxable income the amount of credit 10computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3w), (3y), (5f), (5g), 11(5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and not passed through by a 12partnership, limited liability company, or tax-option corporation that has added 13that amount to the partnership’s, limited liability company’s, or tax-option 14corporation’s income under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit 15computed under s. 71.47 (3), (3t), (4), (4m), and (5). AB50-ASA2,25016Section 250. 71.47 (5f) of the statutes is created to read: AB50-ASA2,316,181771.47 (5f) Film production services credit. (a) Definitions. In this 18subsection: AB50-ASA2,317,2191. “Accredited production” means a film, video, broadcast advertisement, or 20television production, as approved by the state film office, for which the aggregate 21salary and wages included in the cost of the production for the period ending 12 22months after the month in which the principal filming or taping of the production 23begins exceeds $100,000 for a production that is 30 minutes or longer or $50,000 for 24a production that is less than 30 minutes. “Accredited production” includes a
1scripted, unscripted, reality, or competition production, but does not include any of 2the following, regardless of the production costs: AB50-ASA2,317,43a. News, current events, or public programming or a program that includes 4weather or market reports. AB50-ASA2,317,55b. A talk show. AB50-ASA2,317,66c. A sports event or sports activity. AB50-ASA2,317,77d. A gala presentation or awards show. AB50-ASA2,317,88e. A finished production that solicits funds. AB50-ASA2,317,119f. A production for which the production company is required under 18 USC 102257 to maintain records with respect to a performer portrayed in a single media or 11multimedia program. AB50-ASA2,317,1312g. A production produced primarily for industrial, corporate, or institutional 13purposes. AB50-ASA2,317,19142. “Claimant” means a film production company, as defined in sub. (5h) (a) 2., 15that operates an accredited production in this state, if the company owns the 16copyright in the accredited production or has contracted directly with the copyright 17owner or a person acting on the owner’s behalf and if the company has a viable plan, 18as determined by the state film office, for the commercial distribution of the 19finished production. AB50-ASA2,318,2203. “Commercial domicile” means the location from which a trade or business 21is principally managed and directed, based on any factors the state film office 22determines are appropriate, including the location where the greatest number of
1employees of the trade or business work, the trade or business has its office or base 2of operations, or from which the employees are directed or controlled. AB50-ASA2,318,1834. “Production expenditures” means any expenditures that are incurred in 4this state and directly used to produce an accredited production, including 5expenditures for writing, budgeting, casting, location scouts, set construction and 6operation, wardrobes, makeup, clothing accessories, photography, sound recording, 7sound synchronization, sound mixing, lighting, editing, film processing, film 8transferring, special effects, visual effects, renting or leasing facilities or 9equipment, renting or leasing motor vehicles, food, lodging, and any other similar 10pre-production, production, and post-production expenditure as determined by the 11state film office. “Production expenditures” includes expenditures for music that is 12performed, composed, or recorded by a musician who is a resident of this state or 13published or distributed by an entity that has its commercial domicile in this state; 14air travel that is purchased from a travel agency or company that has its commercial 15domicile in this state; and insurance that is purchased from an insurance agency or 16company that has its commercial domicile in this state. “Production expenditures” 17does not include salary or wages or expenditures for the marketing and distribution 18of an accredited production. AB50-ASA2,318,2119(b) Filing claims. Subject to the limitations provided in this subsection, for 20taxable years beginning after December 31, 2025, a claimant may claim as a credit 21against the tax imposed under s. 71.43 any of the following amounts: AB50-ASA2,319,3221. To the extent the salary or wages are not claimed under subd. 2., an amount 23equal to 30 percent of the salary or wages paid by the claimant to the claimant’s
1employees in the taxable year for services rendered in this state to produce an 2accredited production and paid to employees who were residents of this state at the 3time that they were paid. AB50-ASA2,319,542. An amount equal to 30 percent of the production expenditures paid by the 5claimant in the taxable year to produce an accredited production. AB50-ASA2,319,1163. An amount equal to the taxes imposed under ss. 77.52 and 77.53, to the 7extent those taxes are not used in claiming a credit under subd. 2., that the 8claimant paid in the taxable year on the purchase of tangible personal property and 9taxable services that are used directly in producing an accredited production in this 10state, including all stages from the final script stage to the distribution of the 11finished production. AB50-ASA2,319,1512(c) Limitations. 1. No amount of the salary or wages paid under par. (b) 1. 13may be the basis for a credit under this subsection unless the salary or wages are 14paid for services rendered after December 31, 2025, and directly incurred to 15produce the accredited production. AB50-ASA2,319,21162. The total amount of the credits that may be claimed by a claimant under 17par. (b) 1. shall not exceed an amount equal to the first $250,000 of salary or wages 18paid to each of the claimant’s employees, as described in par. (b) 1., in the taxable 19year, not including the salary or wages paid to the claimant’s 2 highest-paid 20employees, as described in par. (b) 1., in the taxable year, if the claimant’s budgeted 21production expenditures are $1,000,000 or more. AB50-ASA2,320,2223. No credit may be allowed under this subsection unless the claimant files an 23application with the state film office, at the time and in the manner prescribed by
1the office, and the office approves the application. The claimant shall submit a copy 2of the approved application with the claimant’s return. AB50-ASA2,320,1034. Partnerships, limited liability companies, and tax-option corporations may 4not claim the credit under this subsection, but the eligibility for, and the amount of, 5the credit are based on their payment of amounts under par. (b). A partnership, 6limited liability company, or tax-option corporation shall compute the amount of 7credit that each of its partners, members, or shareholders may claim and shall 8provide that information to each of them. Partners, members of limited liability 9companies, and shareholders of tax-option corporations may claim the credit in 10proportion to their ownership interest. AB50-ASA2,320,1411(d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the 12credit under s. 71.28 (4), applies to the credits under this subsection. Section 71.28 13(4) (f), as it applies to the credit under s. 71.28 (4), applies to the credits under par. 14(b) 1. and 3. AB50-ASA2,320,19152. If the allowable amount of the claim under par. (b) 2. exceeds the tax 16otherwise due under s. 71.43 or no tax is due under s. 71.43, the amount of the 17claim not used to offset the tax due shall be certified by the department of revenue 18to the department of administration for payment by check, share draft, or other 19draft drawn from the appropriation account under s. 20.835 (2) (bm). AB50-ASA2,321,5203. Any person, including a nonprofit entity described in section 501 (c) (3) of 21the Internal Revenue Code, may sell or otherwise transfer a credit under par. (b) 1. 22or 3., in whole or in part, to another person who is subject to the taxes imposed 23under s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer,
1and submits with the notification a copy of the transfer documents, and the 2department certifies ownership of the credit. The transferee may first use the 3credit to offset tax of the transferor in the taxable year in which the transfer occurs 4and may use the credit only to offset tax in taxable years in which the credit is 5otherwise allowed to be claimed and carried forward by the original claimant. AB50-ASA2,321,764. Notwithstanding s. 71.82, no interest shall be paid on a refund based on an 7amount certified under this subsection. AB50-ASA2,2518Section 251. 71.47 (5h) of the statutes is created to read: AB50-ASA2,321,10971.47 (5h) Film production company investment credit. (a) Definitions. 10In this subsection: AB50-ASA2,321,12111. “Claimant” means a person who files a claim under this subsection and 12who does business in this state as a film production company. AB50-ASA2,321,15132. “Film production company” means an entity that creates films, videos, 14broadcast advertisement, or television productions, not including the productions 15described in sub. (5f) (a) 1. a. to g. AB50-ASA2,321,18163. “Physical work” does not include preliminary activities such as planning, 17designing, securing financing, researching, developing specifications, or stabilizing 18property to prevent deterioration. AB50-ASA2,321,23194. “Previously owned property” means real property that the claimant or a 20related person owned during the 2 years prior to doing business in this state as a 21film production company and for which the claimant may not deduct a loss from the 22sale of the property to, or an exchange of the property with, the related person 23under section 267 of the Internal Revenue Code. AB50-ASA2,322,2
15. “Used exclusively” means used to the exclusion of all other uses except for 2other use not exceeding 5 percent of total use. AB50-ASA2,322,83(b) Filing claims. Subject to the limitations provided in this subsection, for 4taxable years beginning after December 31, 2025, a claimant may claim as a credit 5against the tax imposed under s. 71.43, up to the amount of the taxes, for the first 3 6taxable years that the claimant is doing business in this state as a film production 7company, an amount that is equal to 30 percent of the following that the claimant 8paid in the taxable year to establish a film production company in this state: AB50-ASA2,322,991. The purchase price of depreciable, tangible personal property. AB50-ASA2,322,11102. The amount expended to acquire, construct, rehabilitate, remodel, or repair 11real property. AB50-ASA2,322,1512(c) Limitations. 1. A claimant may claim the credit under par. (b) 1., if the 13tangible personal property is purchased after December 31, 2025, and the personal 14property is used exclusively in the claimant’s business as a film production 15company. AB50-ASA2,322,20162. A claimant may claim the credit under par. (b) 2. for an amount expended to 17construct, rehabilitate, remodel, or repair real property, if the claimant began the 18physical work of construction, rehabilitation, remodeling, or repair, or any 19demolition or destruction in preparation for the physical work, after December 31, 202025, or if the completed project is placed in service after December 31, 2025. AB50-ASA2,323,2213. A claimant may claim the credit under par. (b) 2. for an amount expended to 22acquire real property, if the property is not previously owned property and if the
1claimant acquires the property after December 31, 2025, or if the completed project 2is placed in service after December 31, 2025. AB50-ASA2,323,634. No claim may be allowed under this subsection unless the state film office 4certifies, in writing, that the credits claimed under this subsection are for expenses 5related to establishing a film production company in this state and the claimant 6submits a copy of the certification with the claimant’s return. AB50-ASA2,323,975. No credit may be allowed under this subsection for any amount that the 8claimant paid for expenses described in par. (b) that the claimant used to claim a 9credit under sub. (5f). AB50-ASA2,323,17106. Partnerships, limited liability companies, and tax-option corporations may 11not claim the credit under this subsection, but the eligibility for, and the amount of, 12the credit are based on their payment of amounts under par. (b). A partnership, 13limited liability company, or tax-option corporation shall compute the amount of 14credit that each of its partners, members, or shareholders may claim and shall 15provide that information to each of them. Partners, members of limited liability 16companies, and shareholders of tax-option corporations may claim the credit in 17proportion to their ownership interests. AB50-ASA2,323,1918(d) Administration. 1. Section 71.28 (4) (e) to (h), as it applies to the credit 19under s. 71.28 (4), applies to the credits under this subsection. AB50-ASA2,324,5202. Any person, including a nonprofit entity described in section 501 (c) (3) of 21the Internal Revenue Code, may sell or otherwise transfer a credit under this 22subsection, in whole or in part, to another person who is subject to the taxes 23imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
1transfer, and submits with the notification a copy of the transfer documents, and 2the department certifies ownership of the credit. The transferee may first use the 3credit to offset tax of the transferor in the taxable year in which the transfer occurs 4and may use the credit only to offset tax in taxable years in which the credit is 5otherwise allowed to be claimed and carried forward by the original claimant. AB50-ASA2,324,763. Notwithstanding s. 71.82, no interest shall be paid on a refund based on an 7amount certified under this subsection. AB50-ASA2,2528Section 252. 71.49 (1) (epr) of the statutes is created to read: AB50-ASA2,324,10971.49 (1) (epr) Film production company investment credit under s. 71.47 10(5h). AB50-ASA2,25311Section 253. 71.49 (1) (eps) of the statutes is created to read: AB50-ASA2,324,121271.49 (1) (eps) Film production services credit under s. 71.47 (5f) (b) 1. and 3. AB50-ASA2,25413Section 254. 71.49 (1) (f) of the statutes is amended to read: AB50-ASA2,324,181471.49 (1) (f) The total of farmland preservation credit under subch. IX, jobs 15credit under s. 71.47 (3q), enterprise zone jobs credit under s. 71.47 (3w), business 16development credit under s. 71.47 (3y), research credit under s. 71.47 (4) (k) 1., film 17production services credit under s. 71.47 (5f) (b) 2., and estimated tax payments 18under s. 71.48. AB50-ASA2,25519Section 255. 71.64 (9) (b) (intro.) of the statutes is amended to read: AB50-ASA2,324,232071.64 (9) (b) (intro.) The department shall from time to time adjust the 21withholding tables to reflect any changes in income tax rates, any applicable surtax 22or any changes in dollar amounts in s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2) 23resulting from statutory changes, except as follows: AB50-ASA2,256
1Section 256. 71.67 (5) (a) of the statutes is amended to read: AB50-ASA2,325,7271.67 (5) (a) Wager winnings. A person holding a license to sponsor and 3manage races under s. 562.05 (1) (b) or (c) shall withhold from the amount of any 4payment of pari-mutuel winnings under s. 562.065 (3) (a) or (3m) (a) an amount 5determined by multiplying the amount of the payment by the highest rate 6applicable to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), (1p), or (1q), or (1r) 7if the amount of the payment is more than $1,000. AB50-ASA2,2578Section 257. 71.67 (5m) of the statutes is amended to read: AB50-ASA2,325,15971.67 (5m) Withholding from payments to purchase assignment of 10lottery prize. A person that purchases an assignment of a lottery prize shall 11withhold from the amount of any payment made to purchase the assignment the 12amount that is determined by multiplying the amount of the payment by the 13highest rate applicable to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), (1p), or 14(1q), or (1r). Subsection (5) (b), (c) and (d), as it applies to the amounts withheld 15under sub. (5) (a), applies to the amount withheld under this subsection. AB50-ASA2,25816Section 258. 71.83 (1) (a) 6. of the statutes is amended to read: AB50-ASA2,325,231771.83 (1) (a) 6. ‘Retirement plans.’ Any natural person who is liable for a 18penalty for federal income tax purposes under section 72 (m) (5), (q), (t), and (v), 194973, 4974, 4975, or 4980A of the Internal Revenue Code is liable for 33 percent of 20the federal penalty unless the income received is exempt from taxation under s. 2171.05 (1) (a) or (6) (b) 54., 54m., or 54mn. The penalties provided under this 22subdivision shall be assessed, levied, and collected in the same manner as income 23or franchise taxes. AB50-ASA2,259
1Section 259. 76.81 (1) of the statutes is amended to read: AB50-ASA2,326,13276.81 (1) Except as provided in sub. (2), there is imposed a tax on the real 3property of, and the tangible personal property of, every telephone company, 4excluding property that is exempt from the property tax under s. 70.11 (39) and, 5(39m), and (48), motor vehicles that are exempt under s. 70.112 (5), property that is 6used less than 50 percent in the operation of a telephone company, as provided 7under s. 70.112 (4) (b), treatment plant and pollution abatement equipment that is 8exempt under s. 70.11 (21), and qualified broadband service property. Except as 9provided in s. 76.815, the rate for the tax imposed on each description of real 10property and on each item of tangible personal property is the net rate for the prior 11year for the tax under ch. 70 in the taxing jurisdictions where the description or 12item is located. The real and tangible personal property of a telephone company 13shall be assessed as provided under s. 70.112 (4) (b).
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