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LRB-5688/1
JK:cdc
2019 - 2020 LEGISLATURE
February 12, 2020 - Introduced by Senators Marklein, Bernier and Testin,
cosponsored by Representatives Tranel, Novak, Petryk, Pronschinske,
Tauchen, Magnafici, Summerfield, Kitchens, Oldenburg, Plumer, Ballweg,
Schraa, Krug, Skowronski and Tusler. Referred to Committee on
Agriculture, Revenue and Financial Institutions.
SB818,1,7 1An Act to amend 71.05 (6) (a) 15., 71.10 (4) (i), 71.21 (4) (a), 71.26 (2) (a) 4., 71.30
2(3) (f), 71.34 (1k) (g), 71.45 (2) (a) 10. and 71.49 (1) (f); to repeal and recreate
371.05 (6) (a) 15., 71.10 (4) (i), 71.21 (4) (a), 71.26 (2) (a) 4., 71.30 (3) (f), 71.34 (1k)
4(g), 71.45 (2) (a) 10. and 71.49 (1) (f); and to create 20.835 (2) (bh), 71.07 (8s),
571.28 (8s) and 71.47 (8s) of the statutes; relating to: an income tax credit for
6the property taxes paid on agricultural buildings and improvements and
7making an appropriation.
Analysis by the Legislative Reference Bureau
This bill creates an income and franchise tax credit equal to approximately 66
percent of the taxes levied on buildings and other improvements, not including
residential property, that are located in this state and used exclusively for farming.
The credit is limited to $7,500 for an individual, entity, or married couple filing
jointly. In addition, in order to claim the credit, the claimant must have at least
$35,000 in annual gross income from farming. The person will receive a refund if the
amount of the credit exceeds the person's tax liability.
The bill also allows a taxpayer to claim the credit for 2020 online in the manner
determined by DOR rather than file a tax return to claim the credit. Claiming the
credit online for 2020 does not relieve the taxpayer of the taxpayer's obligation to
otherwise file a return for that year.

For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB818,1 1Section 1. 20.835 (2) (bh) of the statutes is created to read:
SB818,2,32 20.835 (2) (bh) Farm buildings credit. A sum sufficient to make the payments
3under ss. 71.07 (8s), 71.28 (8s), and 71.47 (8s).
SB818,2 4Section 2. 71.05 (6) (a) 15. of the statutes is amended to read:
SB818,2,115 71.05 (6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the
6credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
7(3rm), (3rn), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5e), (5f), (5h), (5i), (5j), (5k), (5r),
8(5rm), (6n), (8r), (8s), and (10) and not passed through by a partnership, limited
9liability company, or tax-option corporation that has added that amount to the
10partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or
1171.34 (1k) (g).
SB818,3 12Section 3 . 71.05 (6) (a) 15. of the statutes, as affected by 2019 Wisconsin Act
1354
and 2019 Wisconsin Act .... (this act), is repealed and recreated to read:
SB818,2,1914 71.05 (6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the
15credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t),
16(3w), (3wm), (3y), (4k), (4n), (5e), (5i), (5j), (5k), (5r), (5rm), (6n), (8s), and (10) and not
17passed through by a partnership, limited liability company, or tax-option
18corporation that has added that amount to the partnership's, company's, or
19tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
SB818,4 20Section 4. 71.07 (8s) of the statutes is created to read:
SB818,2,2121 71.07 (8s) Farm buildings credit. (a) Definitions. In this subsection:
SB818,3,2
11. “Agricultural land” means land that is assessed as agricultural land under
2s. 70.32 (2) (a) 4.
SB818,3,33 2. “Claimant” means a person who files a claim under this subsection.
SB818,3,64 3. “Residential property” means property that is assessed as residential
5property under s. 70.32 (2) (a) 1. or a residence that is assessed as other under s. 70.32
6(2) (a) 7.
SB818,3,87 4. “Used exclusively” means used to the exclusion of all other uses except for
8use not exceeding 5 percent of total use.
SB818,3,149 (b) Filing claims. Subject to the limitations provided in this subsection, for
10taxable years beginning after December 31, 2019, and before January 1, 2023, a
11claimant may claim as a credit against the taxes imposed under s. 71.02 an amount
12equal to the most recent assessed value of the claimant's buildings and
13improvements assessed as other under s. 70.32 (2) (a) 7., not including residential
14property, that are used exclusively for farming, multiplied by 0.01187.
SB818,3,2215 (c) Limitations. 1. Partnerships, limited liability companies, and tax-option
16corporations may not claim the credit under this subsection, but the eligibility for,
17and the amount of, the credit are based on the determination described under par.
18(b). A partnership, limited liability company, or tax-option corporation shall
19compute the amount of credit that each of its partners, members, or shareholders
20may claim and shall provide that information to each of them. Partners, members
21of limited liability companies, and shareholders of tax-option corporations may
22claim the credit in proportion to their ownership interests.
SB818,3,2523 2. No credit may be allowed under this subsection if the claimant or the
24claimant's spouse files a claim under sub. (6e) or (9) or subch. VIII or IX that relates
25to the same taxable year for which a claim is made under this subsection.
SB818,4,3
13. The maximum amount of the credit that a claimant may claim under this
2subsection in a taxable year is $7,500 for an individual or a married couple filing
3jointly.
SB818,4,104 4. No claimant may claim a credit under this subsection unless the claimant
5is a farmer and files a schedule F for the taxable year for which the claimant claims
6the credit or is an entity actively engaged in farming under 7 CFR 1400.201 for that
7taxable year. No claimant may claim a credit under this subsection unless the
8claimant's annual gross income from farming for the year in which the claim relates
9is not less than $35,000. For purposes of this subdivision, “gross income” has the
10meaning given in s. 71.03 (1).
SB818,4,1211 (d) Administration. 1. Section 71.28 (4) (g) and (h), as it applies to the credit
12under s. 71.28 (4), applies to the credit under this subsection.
SB818,4,1713 2. If the allowable amount of the claim under this subsection exceeds the taxes
14otherwise due on the claimant's income under s. 71.02, the amount of the claim that
15is not used to offset those taxes shall be certified by the department of revenue to the
16department of administration for payment from the appropriation under s. 20.835
17(2) (bh).
SB818,5 18Section 5. 71.10 (4) (i) of the statutes is amended to read:
SB818,5,819 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
20preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
21beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief
22credit under s. 71.07 (3m), dairy manufacturing facility investment credit under s.
2371.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment
24credit under s. 71.07 (3r), woody biomass harvesting and processing credit under s.
2571.07 (3rm), food processing plant and food warehouse investment credit under s.

171.07 (3rn), business development credit under s. 71.07 (3y), research credit under
2s. 71.07 (4k) (e) 2. a., film production services credit under s. 71.07 (5f), film
3production company investment credit under s. 71.07 (5h), veterans and surviving
4spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s.
571.07 (3w), electronics and information technology manufacturing zone credit under
6s. 71.07 (3wm), beginning farmer and farm asset owner tax credit under s. 71.07 (8r),
7farm buildings credit under s. 71.07 (8s), earned income tax credit under s. 71.07 (9e),
8estimated tax payments under s. 71.09, and taxes withheld under subch. X.
SB818,6 9Section 6 . 71.10 (4) (i) of the statutes, as affected by 2019 Wisconsin Act 54 and
102019 Wisconsin Act .... (this act), is repealed and recreated to read:
SB818,5,2011 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
12preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
13beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief
14credit under s. 71.07 (3m), jobs tax credit under s. 71.07 (3q), business development
15credit under s. 71.07 (3y), research credit under s. 71.07 (4k) (e) 2. a., veterans and
16surviving spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit
17under s. 71.07 (3w), electronics and information technology manufacturing zone
18credit under s. 71.07 (3wm), farm buildings credit under s. 71.07 (8s), earned income
19tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes
20withheld under subch. X.
SB818,7 21Section 7. 71.21 (4) (a) of the statutes is amended to read:
SB818,5,2522 71.21 (4) (a) The amount of the credits computed by a partnership under s.
2371.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w),
24(3wm), (3y), (4k), (4n), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8r), (8s),
25and (10) and passed through to partners shall be added to the partnership's income.
SB818,8
1Section 8. 71.21 (4) (a) of the statutes, as affected by 2019 Wisconsin Act 54
2and 2019 Wisconsin Act .... (this act), is repealed and recreated to read:
SB818,6,63 71.21 (4) (a) The amount of the credits computed by a partnership under s.
471.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n),
5(5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8s), and (10) and passed through to partners
6shall be added to the partnership's income.
SB818,9 7Section 9. 71.26 (2) (a) 4. of the statutes is amended to read:
SB818,6,138 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
9(1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (3wm), (3y), (5e),
10(5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8r), (8s), (9s), and (10) and not passed
11through by a partnership, limited liability company, or tax-option corporation that
12has added that amount to the partnership's, limited liability company's, or
13tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
SB818,10 14Section 10 . 71.26 (2) (a) 4. of the statutes, as affected by 2019 Wisconsin Act
1554
and 2019 Wisconsin Act .... (this act), is repealed and recreated to read:
SB818,6,2116 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
17(1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (5e), (5g), (5i), (5j), (5k), (5r),
18(5rm), (6n), (8s), (9s), and (10) and not passed through by a partnership, limited
19liability company, or tax-option corporation that has added that amount to the
20partnership's, limited liability company's, or tax-option corporation's income under
21s. 71.21 (4) or 71.34 (1k) (g).
SB818,11 22Section 11. 71.28 (8s) of the statutes is created to read:
SB818,6,2323 71.28 (8s) Farm buildings credit. (a) Definitions. In this subsection:
SB818,6,2524 1. “Agricultural land” means land that is assessed as agricultural land under
25s. 70.32 (2) (a) 4.
SB818,7,1
12. “Claimant” means a person who files a claim under this subsection.
SB818,7,42 3. “Residential property” means property that is assessed as residential
3property under s. 70.32 (2) (a) 1. or a residence that is assessed as other under s. 70.32
4(2) (a) 7.
SB818,7,65 4. “Used exclusively” means used to the exclusion of all other uses except for
6use not exceeding 5 percent of total use.
SB818,7,127 (b) Filing claims. Subject to the limitations provided in this subsection, for
8taxable years beginning after December 31, 2019, and before January 1, 2023, a
9claimant may claim as a credit against the taxes imposed under s. 71.23 an amount
10equal to the most recent assessed value of the claimant's buildings and
11improvements assessed as other under s. 70.32 (2) (a) 7., not including residential
12property, that are used exclusively for farming, multiplied by 0.01187.
SB818,7,2013 (c) Limitations. 1. Partnerships, limited liability companies, and tax-option
14corporations may not claim the credit under this subsection, but the eligibility for,
15and the amount of, the credit are based on the determination described under par.
16(b). A partnership, limited liability company, or tax-option corporation shall
17compute the amount of credit that each of its partners, members, or shareholders
18may claim and shall provide that information to each of them. Partners, members
19of limited liability companies, and shareholders of tax-option corporations may
20claim the credit in proportion to their ownership interests.
SB818,7,2221 2. The maximum amount of the credit that a claimant may claim under this
22subsection in a taxable year is $7,500.
SB818,8,423 3. No claimant may claim a credit under this subsection unless the claimant
24is a farmer and files a schedule F for the taxable year for which the claimant claims
25the credit or is an entity actively engaged in farming under 7 CFR 1400.201 for that

1taxable year. No claimant may claim a credit under this subsection unless the
2claimant's annual gross income from farming for the year in which the claim relates
3is not less than $35,000. For purposes of this subdivision, “gross income” has the
4meaning given in s. 71.03 (1).
SB818,8,65 (d) Administration. 1. Subsection (4) (g) and (h), as it applies to the credit
6under sub. (4), applies to the credit under this subsection.
SB818,8,117 2. If the allowable amount of the claim under this subsection exceeds the taxes
8otherwise due on the claimant's income under s. 71.23, the amount of the claim that
9is not used to offset those taxes shall be certified by the department of revenue to the
10department of administration for payment from the appropriation under s. 20.835
11(2) (bh).
SB818,12 12Section 12. 71.30 (3) (f) of the statutes is amended to read:
SB818,8,2413 71.30 (3) (f) The total of farmland preservation credit under subch. IX,
14farmland tax relief credit under s. 71.28 (2m), dairy manufacturing facility
15investment credit under s. 71.28 (3p), jobs credit under s. 71.28 (3q), meat processing
16facility investment credit under s. 71.28 (3r), woody biomass harvesting and
17processing credit under s. 71.28 (3rm), food processing plant and food warehouse
18investment credit under s. 71.28 (3rn), enterprise zone jobs credit under s. 71.28
19(3w), electronics and information technology manufacturing zone credit under s.
2071.28 (3wm), business development credit under s. 71.28 (3y), research credit under
21s. 71.28 (4) (k) 1., film production services credit under s. 71.28 (5f), film production
22company investment credit under s. 71.28 (5h), beginning farmer and farm asset
23owner tax credit under s. 71.28 (8r), farm buildings credit under s. 71.28 (8s), and
24estimated tax payments under s. 71.29.
SB818,13
1Section 13. 71.30 (3) (f) of the statutes, as affected by 2019 Wisconsin Act 54
2and 2019 Wisconsin Act .... (this act), is repealed and recreated to read:
SB818,9,83 71.30 (3) (f) The total of farmland preservation credit under subch. IX,
4farmland tax relief credit under s. 71.28 (2m), jobs credit under s. 71.28 (3q),
5enterprise zone jobs credit under s. 71.28 (3w), electronics and information
6technology manufacturing zone credit under s. 71.28 (3wm), business development
7credit under s. 71.28 (3y), research credit under s. 71.28 (4) (k) 1., farm buildings
8credit under s. 71.28 (8s), and estimated tax payments under s. 71.29.
SB818,14 9Section 14. 71.34 (1k) (g) of the statutes is amended to read:
SB818,9,1310 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
11corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3p), (3q), (3r),
12(3rm), (3rn), (3t), (3w), (3wm), (3y), (4), (5), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r),
13(5rm), (6n), (8r), (8s), and (10) and passed through to shareholders.
SB818,15 14Section 15 . 71.34 (1k) (g) of the statutes, as affected by 2019 Wisconsin Act 54
15and 2019 Wisconsin Act .... (this act), is repealed and recreated to read:
SB818,9,1916 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
17corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w),
18(3wm), (3y), (4), (5), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8s), and (10) and passed
19through to shareholders.
SB818,16 20Section 16. 71.45 (2) (a) 10. of the statutes is amended to read:
SB818,9,2521 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
22computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn),
23(3w), (3y), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8r), (8s), (9s), and (10)
24and not passed through by a partnership, limited liability company, or tax-option
25corporation that has added that amount to the partnership's, limited liability

1company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and
2the amount of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).
SB818,17 3Section 17 . 71.45 (2) (a) 10. of the statutes, as affected by 2019 Wisconsin Act
454
and 2019 Wisconsin Act .... (this act), is repealed and recreated to read:
SB818,10,115 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
6computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3w), (3y), (5e), (5g), (5i),
7(5j), (5k), (5r), (5rm), (6n), (8s), (9s), and (10) and not passed through by a
8partnership, limited liability company, or tax-option corporation that has added that
9amount to the partnership's, limited liability company's, or tax-option corporation's
10income under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under
11s. 71.47 (1), (3), (3t), (4), (4m), and (5).
SB818,18 12Section 18. 71.47 (8s) of the statutes is created to read:
SB818,10,1313 71.47 (8s) Farm buildings credit. (a) Definitions. In this subsection:
SB818,10,1514 1. “Agricultural land” means land that is assessed as agricultural land under
15s. 70.32 (2) (a) 4.
SB818,10,1616 2. “Claimant” means a person who files a claim under this subsection.
SB818,10,1917 3. “Residential property” means property that is assessed as residential
18property under s. 70.32 (2) (a) 1. or a residence that is assessed as other under s. 70.32
19(2) (a) 7.
SB818,10,2120 4. “Used exclusively” means used to the exclusion of all other uses except for
21use not exceeding 5 percent of total use.
SB818,11,222 (b) Filing claims. Subject to the limitations provided in this subsection, for
23taxable years beginning after December 31, 2019, and before January 1, 2023, a
24claimant may claim as a credit against the taxes imposed under s. 71.43 an amount
25equal to the most recent assessed value of the claimant's buildings and

1improvements assessed as other under s. 70.32 (2) (a) 7., not including residential
2property, that are used exclusively for farming, multiplied by 0.01187.
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