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LRB-5611/1
JK:cjs
2019 - 2020 LEGISLATURE
February 28, 2020 - Introduced by Senators Erpenbach, Carpenter, Wirch and
Smith, cosponsored by Representatives C. Taylor, Stubbs, Emerson, Hebl,
Pope, Sargent, Anderson, Considine, Brostoff, Kolste, Hesselbein,
Ohnstad and Bowen. Referred to Committee on Agriculture, Revenue and
Financial Institutions.
SB876,1,5 1An Act to amend 71.07 (5n) (d) 2., 71.28 (5n) (d) 2. and 71.28 (5n) (d) 3. a.; and
2to create 71.07 (5n) (d) 2m. and 71.28 (5n) (d) 2m. of the statutes; relating to:
3a limitation on the manufacturing component of the manufacturing and
4agriculture credit, a onetime increase in aids for special education, and making
5an appropriation.
Analysis by the Legislative Reference Bureau
Currently, a person may claim a tax credit on the basis of the person's income
from manufacturing or agriculture. This bill limits to $300,000 the amount of income
from manufacturing that a person may use as the basis for claiming the credit.
The bill also requires the Department of Revenue to estimate the increase in
revenue in 2021 that results from the changes made in this bill and directs the
secretary of the Department of Administration to apply that amount to aid to school
districts for special education for the fiscal year beginning July 1, 2021.
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:
SB876,1 6Section 1. 71.07 (5n) (d) 2. of the statutes is amended to read:
SB876,2,6
171.07 (5n) (d) 2. For Except as provided in subd. 2m., for purposes of
2determining a claimant's eligible qualified production activities income under this
3subsection, the claimant shall multiply the claimant's qualified production activities
4income from property manufactured by the claimant by the manufacturing property
5factor and qualified production activities income from property produced, grown, or
6extracted by the claimant by the agriculture property factor.
SB876,2 7Section 2. 71.07 (5n) (d) 2m. of the statutes is created to read:
SB876,2,138 71.07 (5n) (d) 2m. For taxable years beginning after December 31, 2019, for
9purposes of determining a claimant's eligible qualified production activities income
10from manufacturing under this subsection, the claimant, including a beneficiary or
11fiduciary, shall multiply the claimant's qualified production activities income, not
12exceeding $300,000, from property manufactured by the claimant by the
13manufacturing property factor.
SB876,3 14Section 3. 71.28 (5n) (d) 2. of the statutes is amended to read:
SB876,2,2015 71.28 (5n) (d) 2. Except as provided in subd. subds. 2m. and 3., for purposes of
16determining a claimant's eligible qualified production activities income under this
17subsection, the claimant shall multiply the claimant's qualified production activities
18income from property manufactured by the claimant by the manufacturing property
19factor and qualified production activities income from property produced, grown, or
20extracted by the claimant by the agriculture property factor.
SB876,4 21Section 4. 71.28 (5n) (d) 2m. of the statutes is created to read:
SB876,3,222 71.28 (5n) (d) 2m. Except as provided in subd. 3., for taxable years beginning
23after December 31, 2019, for purposes of determining a claimant's eligible qualified
24production activities income from manufacturing under this subsection, the
25claimant shall multiply the claimant's qualified production activities income, not

1exceeding $300,000, from property manufactured by the claimant by the
2manufacturing property factor.
SB876,5 3Section 5. 71.28 (5n) (d) 3. a. of the statutes is amended to read:
SB876,3,54 71.28 (5n) (d) 3. a. The eligible qualified production activities income
5determined under subd. 2. or 2m.
SB876,6 6Section 6 . Nonstatutory provisions.
SB876,3,147 (1) Revenue from manufacturing credit limitation. In 2021, the department
8of revenue shall, no earlier than July 1, 2021, and no later than September 1, 2021,
9estimate the increase in tax revenue as a result of the modification to the
10manufacturing and agriculture credit under this act and certify that amount to the
11secretary of administration. In fiscal year 2021-22, the secretary of administration
12shall credit that amount to the appropriation account under s. 20.255 (2) (b), and
13shall increase the amount in the schedule under s. 20.005 (3) for that appropriation
14for that fiscal year by that amount.
SB876,3,1515 (End)
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