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AB1033,14,1111 d. Leases of facilities and equipment.
AB1033,14,1212 e. Prepackaged audio files, video files, photographic files, or libraries.
AB1033,14,1313 f. Licenses to use prerecorded audio files, video files, or photographic files.
AB1033,14,1514 g. Development associated with producing audio files and video files used in
15the production of end products of digital interactive media or entertainment.
AB1033,14,1716 h. Accountants and lawyers whose work is directly related to qualified
17activities and who are licensed or otherwise authorized to practice in this state.
AB1033,14,1818 5. “Eligible expenditures” does not include any of the following:
AB1033,14,1919 a. Expenditures related to marketing, promotion, or distribution.
AB1033,14,2120 b. Administrative, payroll, or management services that are not directly
21related to management of qualified activities.
AB1033,14,2222 c. Any expenditure that is later reimbursed by the state.
AB1033,14,2323 d. Costs related to the transfer of tax credits.
AB1033,14,2524 e. Amounts that are paid to persons as a result of their participation in profits
25from a digital interactive media or entertainment production.
AB1033,15,1
1f. Any reimbursement required under s. 71.748 (2).
AB1033,15,22 g. Interest expenses for loans.
AB1033,15,43 h. Any expenditure incurred solely to increase the amount of the credit under
4this subsection and that involves self-dealing or the claimant inflating prices.
AB1033,15,65 i. Costs incurred for food or entertainment expenses not involved in qualified
6activities.
AB1033,15,87 6. “Qualified activities” means creating digital interactive media or
8entertainment, including updates, subsequent editions, new seasons, and sequels.
AB1033,15,119 (b) Filing claims. Subject to the limitations provided in this subsection, for
10taxable years beginning after December 31, 2023, a claimant may claim as a credit
11against the tax imposed under s. 71.43 any of the following amounts:
AB1033,15,1512 1. An amount equal to 30 percent of the salary or wages paid by the claimant
13in the taxable year to the claimant's employees who were residents of this state at
14the time that they were paid for services rendered in this state to produce digital
15interactive media or entertainment.
AB1033,15,1716 2. An amount equal to 30 percent of the eligible expenditures, other than salary
17or wages described in subd. 1., paid by the claimant in the taxable year.
AB1033,15,2118 (c) Limitations. 1. No credit may be allowed under this subsection unless the
19claimant files an application with the department, at the time and in the manner
20prescribed by the department, and the department approves the application. The
21claimant shall submit a copy of the approved application with the claimant's return.
AB1033,16,422 2. Partnerships, limited liability companies, and tax-option corporations may
23not claim the credit under this subsection, but the eligibility for, and the amount of,
24the credit are based on their payment of amounts under par. (b). A partnership,
25limited liability company, or tax-option corporation shall compute the amount of

1credit that each of its partners, members, or shareholders may claim and shall
2provide that information to each of them. Partners, members of limited liability
3companies, and shareholders of tax-option corporations may claim the credit in
4proportion to their ownership interest.
AB1033,16,65 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
6credit under s. 71.28 (4), applies to the credits under this subsection.
AB1033,16,117 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise
8due under this chapter or no tax is due under this chapter, the amount of the claim
9not used to offset the tax due shall be certified by the department of revenue to the
10department of administration for payment by check, share draft, or other draft
11drawn from the appropriation account under s. 20.835 (2) (de).
AB1033,12 12Section 12. 71.49 (1) (f) of the statutes is amended to read:
AB1033,16,1713 71.49 (1) (f) The total of farmland preservation credit under subch. IX, jobs
14credit under s. 71.47 (3q), enterprise zone jobs credit under s. 71.47 (3w), business
15development credit under s. 71.47 (3y), research credit under s. 71.47 (4) (k) 1., digital
16interactive media credit under s. 71.47 (11),
and estimated tax payments under s.
1771.48.
AB1033,13 18Section 13. 71.748 of the statutes is created to read:
AB1033,16,21 1971.748 Digital interactive media credit audits. (1) In this section,
20“claimant” has the meaning given in s. 71.07 (11) (a) 1., 71.28 (11) (a) 1., or 71.47 (11)
21(a) 1., as the context requires.
AB1033,17,2 22(2) A claimant shall reimburse the department for any audit initiated by the
23department, and for all costs incurred by the department in reviewing an audit
24conducted by an auditor certified under sub. (3) (a), relating to the credits under s.
2571.07 (11), 71.28 (11), or 71.47 (11), including audits required under s. 73.03 (78) (a)

12. This subsection does not apply to routine audits of a claimant's entire return that
2include review of credits claimed under s. 71.07 (11), 71.28 (11), or 71.47 (11).
AB1033,17,6 3(3) (a) The department shall certify as eligible to conduct an audit required
4under s. 73.03 (78) (a) 2. a certified public accountant that submits an application to
5the department in the form and manner prescribed by the department and satisfies
6all of the following:
AB1033,17,77 1. The applicant is licensed as a certified public accountant under ch. 442.
AB1033,17,108 2. The applicant is capable of conducting audits required under s. 73.03 (78) (a)
92. according to the requirements under s. 73.03 (78) (b) and any rules promulgated
10related to the conduct of those audits and agrees to comply with those rules.
AB1033,17,1211 3. The applicant successfully completes any training required by the
12department.
AB1033,17,1313 4. The applicant pays to the department the fee established under par. (c).
AB1033,17,1514 5. The applicant posts and maintains any bond or insurance required by the
15department.
AB1033,17,1716 (b) The department shall revoke the certification of an auditor certified under
17par. (a) if any of the following apply:
AB1033,17,1818 1. The auditor no longer satisfies a requirement under par. (a) 1. or 5.
AB1033,17,2019 2. The auditor violates s. 73.03 (78) (b) or any rules related to the conduct of
20audits required under s. 73.03 (78) (a) 2.
AB1033,17,2121 (c) The department shall do all of the following:
AB1033,17,2222 1. Establish a fee for granting certifications under par. (a).
AB1033,17,2323 2. Publish and regularly update a list of all auditors certified under par. (a).
AB1033,17,2424 3. Publish on its website all of the following:
AB1033,17,2525 a. The application for certification under par. (a).
AB1033,18,1
1b. The requirements for certification under par. (a).
AB1033,18,22 c. The requirements for audits under s. 73.03 (78) (b).
AB1033,18,33 d. The amount of the fee established under subd. 1.
AB1033,14 4Section 14. 73.03 (78) of the statutes is created to read:
AB1033,18,85 73.03 (78) (a) To implement a program to approve applications for a certificate
6for purposes of ss. 71.07 (11), 71.28 (11), and 71.47 (11). Application shall be made
7to the department in each taxable year for which a certificate is desired. The
8department may not approve an application unless all of the following apply:
AB1033,18,119 1. The department determines that the applicant's qualified activities, as
10defined in s. 71.47 (11) (a) 6., will result in eligible expenditures, as defined in s. 71.47
11(11) (a) 4., in excess of $25,000 for the taxable year.
AB1033,18,1512 2. The department, or an auditor certified by the department under s. 71.748,
13conducts an audit of the applicant. The department shall review an audit conducted
14by an auditor certified under s. 71.748 and shall conduct any additional audit
15necessary and make necessary adjustments.
AB1033,18,1716 3. The applicant reimburses the department for the cost of the audit conducted
17under subd. 2.
AB1033,18,1918 (b) 1. In conducting an audit required under par. (a) 2., the department or
19auditor certified by the department under s. 71.748 shall do all of the following:
AB1033,18,2020 a. Comply with any rules promulgated under par. (d).
AB1033,18,2121 b. Use any sampling methods adopted by the department.
AB1033,18,2422 c. Verify each reported expenditure that is included in the audit and identify
23and exclude each expenditure that does not satisfy the requirements under s. 71.07
24(11), 71.28 (11), or 71.47 (11).
AB1033,19,6
12. No audit of an applicant required under par. (a) 2. may be performed by an
2auditor that is part of an accounting entity that is not determined by the department
3to be independent of the applicant, consistent with s. 442.10 and as provided in the
4code of professional conduct of the American Institute of Certified Public
5Accountants, or its successor organization, or as otherwise determined by the
6department.
AB1033,19,117 3. The department shall determine whether a sampling method is required for
8audits required under par. (a) 2., and if a sampling method is required, an
9appropriate sample method and size that accurately captures a truly representative
10sample of all expenditures for which a credit is claimed under s. 71.07 (11), 71.28 (11),
11or 71.47 (11).
AB1033,19,1512 4. The department shall conduct an audit required under par. (a) 2. when no
13eligible auditor is able to access information necessary to conduct the audit because
14the information is confidential and the department is able to access the confidential
15information.
AB1033,19,1916 (c) At least once every 2 years, beginning not later than December 31, 2025, the
17department shall submit a report to the governor and the standing committees of the
18legislature with jurisdiction over taxation under s. 13.172 (3) that includes all of the
19following:
AB1033,19,2020 1. The number of applications approved under this subsection.
AB1033,19,2221 2. The amount of the credits claimed under ss. 71.07 (11), 71.28 (11), and 71.47
22(11).
AB1033,19,2423 3. The number of people employed in this state in the industries eligible for the
24credits under ss. 71.07 (11), 71.28 (11), and 71.47 (11).
AB1033,20,2
14. The economic impact of the credits under ss. 71.07 (11), 71.28 (11), and 71.47
2(11).
AB1033,20,43 5. The community impact of the industries eligible for the credits under ss.
471.07 (11), 71.28 (11), and 71.47 (11) in this state.
AB1033,20,55 (d) The department shall promulgate rules to administer this subsection.
AB1033,20,66 (End)
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