SB70: Bill Text

SB70,915,5 71.28 (3w) (bm) 4. In addition to the credits under par. pars. (b) and (bd) and subds. 1., 2., and 3., and 5., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., for taxable years beginning after December 31, 2009, a claimant may claim as a credit against the tax imposed under s. 71.23, up to 1 percent of the amount that the claimant paid in the taxable year to purchase tangible personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services from Wisconsin vendors, as determined under s. 238.399 (5) (e) or s. 560.799 (5) (e), 2009 stats., except that the claimant may not claim the credit under this subdivision and subd. 3. for the same expenditures.

SB70,1466 Section 1466. 71.28 (3w) (bm) 5. of the statutes is renumbered 71.28 (3w) (bm) 5. (intro.) and amended to read:

SB70,915,13 71.28 (3w) (bm) 5. (intro.) In addition to the credits under par. pars. (b) and (bd) and subds. 1. to 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant that has retained the minimum number of full-time employees determined under s. 238.399 (5) (f) and maintained average zone payroll for the taxable year equal to or greater than the base year may claim as a credit against the tax imposed under s. 71.23 one of the following amounts:

SB70,915,23 a. For a claimant whose contract is executed prior to January 1, 2024, an amount equal to the percentage, as determined by the Wisconsin Economic Development Corporation, of the claimant's zone payroll paid in the 12 months prior to the certification date to the claimant's full-time employees in the enterprise zone whose annual wages are greater than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality or greater than $30,000 in a tier II county or municipality. The amount that the claimant may claim as credit under this subdivision for a taxable year shall not exceed $2,000,000. A claimant may claim a credit under this subdivision for no more than 5 consecutive taxable years.

SB70,1467 Section 1467. 71.28 (3w) (bm) 5. b. of the statutes is created to read:

SB70,916,6 71.28 (3w) (bm) 5. b. For a claimant whose contract is executed after December 31, 2023, an amount equal to the percentage, as determined by the Wisconsin Economic Development Corporation, of the claimant's zone payroll paid in the 12 months prior to the certification date to the claimant's full-time employees in the enterprise zone whose annual wages are greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality.

SB70,1468 Section 1468. 71.28 (3w) (c) 5. of the statutes is created to read:

SB70,916,9 71.28 (3w) (c) 5. A claimant may claim a credit under par. (bm) 2. for no more than 5 consecutive taxable years.

SB70,1469 Section 1469. 71.28 (3w) (c) 6. of the statutes is created to read:

SB70,916,13 71.28 (3w) (c) 6. The amount that a claimant may claim as credit under par. (bm) 5. for a taxable year may not exceed $2,000,000. A claimant may claim a credit under par. (bm) 5. for no more than 5 consecutive taxable years.

SB70,1470 Section 1470. 71.28 (3w) (cm) of the statutes is created to read:

SB70,916,25 71.28 (3w) (cm) Inflation adjustments. For taxable years beginning after December 31, 2024, the dollar amounts in pars. (a) 6. b., (bd) 1. a. and b., 2., and 3., and (bm) 2. b. and 5. b. shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the year before the previous year, as determined by the federal department of labor. Each amount that is revised under this paragraph shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10.

SB70,1471 Section 1471. 71.28 (3y) (b) 5. of the statutes is amended to read:

SB70,917,9 71.28 (3y) (b) 5. An For taxable years beginning before January 1, 2023, an amount, as determined by the Wisconsin Economic Development Corporation under s. 238.308 (4) (a) 5., equal to a percentage of the amount of wages that the claimant paid to an eligible employee in the taxable year if the position in which the eligible employee was employed was created or retained in connection with the claimant's location or retention of the claimant's corporate headquarters in Wisconsin and the job duties associated with the eligible employee's position involve the performance of corporate headquarters functions.

SB70,1472 Section 1472. 71.28 (3y) (b) 5m. of the statutes is created to read:

SB70,917,16 71.28 (3y) (b) 5m. For taxable years beginning after December 31, 2022, an amount, as determined by the Wisconsin Economic Development Corporation under s. 238.308 (4) (a) 5., equal to a percentage of the amount of wages that the claimant paid to an eligible employee in the taxable year if the position in which the eligible employee was employed was created or retained in connection with the claimant's location or retention of the claimant's corporate headquarters in Wisconsin.

SB70,1473 Section 1473. 71.28 (3y) (b) 6. of the statutes is created to read:

SB70,917,22 71.28 (3y) (b) 6. For taxable years beginning after December 31, 2023, an amount, as determined by the Wisconsin Economic Development Corporation under s. 238.308 (4) (a) 6., equal to a percentage, not to exceed 25 percent, of the claimant's energy efficiency or renewable energy project expenditures on real or personal property located in this state.

SB70,1474 Section 1474. 71.28 (4) (k) 1. b. of the statutes is amended to read:

SB70,918,4 71.28 (4) (k) 1. b. For taxable years beginning after December 31, 2020 and before January 1, 2024, the amount of the claim not used to offset the tax due, up to 15 percent of the allowable amount of the claim under par. (ad) 4., 5., or 6., 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) (d).

SB70,1475 Section 1475. 71.28 (4) (k) 1. c. of the statutes is created to read:

SB70,918,11 71.28 (4) (k) 1. c. For taxable years beginning after December 31, 2023, the amount of the claim not used to offset the tax due, not to exceed 50 percent of the allowable amount of the claim under par. (ad) 4., 5., or 6., 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) (d).

SB70,1476 Section 1476. 71.28 (5n) (a) 5. a. of the statutes is amended to read:

SB70,918,19 71.28 (5n) (a) 5. a. “Manufacturing property factor" means a fraction, the numerator of which is the average value of the claimant's real and personal land and depreciable property assessed under s. 70.995, owned or rented and used in this state by the claimant during the taxable year to manufacture qualified production property, and the denominator of which is the average value of all the claimant's real and personal land and depreciable property owned or rented during the taxable year and used by the claimant to manufacture qualified production property.

SB70,1477 Section 1477. 71.28 (5n) (a) 5. d. of the statutes is repealed.

SB70,1478 Section 1478. 71.28 (5n) (a) 9. (intro.) of the statutes is amended to read:

SB70,918,23 71.28 (5n) (a) 9. (intro.) “Qualified production property" means either any of the following:

SB70,1479 Section 1479. 71.28 (5n) (a) 9. a. of the statutes is amended to read:

SB70,919,7 71.28 (5n) (a) 9. a. Tangible personal property manufactured in whole or in part by the claimant on property that is located in this state and assessed as manufacturing property under s. 70.995. Tangible personal property manufactured in this state may only be qualified production property if it is manufactured on property approved to be classified as manufacturing real property for purposes of s. 70.995, even if it is not eligible to be listed on the department's manufacturing roll until January 1 of the following year.

SB70,1480 Section 1480. 71.28 (5n) (a) 9. c. of the statutes is created to read:

SB70,919,18 71.28 (5n) (a) 9. c. Tangible personal property manufactured in whole or in part by the claimant with an establishment that is located in this state and classified as manufacturing under s. 70.995 (5n). A person wishing to classify the person's establishment as manufacturing under this subd. 9. c. shall file an application in the form and manner prescribed by the department no later than July 1 of the taxable year for which the person wishes to claim the credit under this subsection, pursuant to s. 70.995 (5n). The department shall make a determination and provide written notice by December 31 of the year in which the application is filed. A determination on the classification under this subd. 9. c. may be appealed as provided under s. 70.995 (5n).

SB70,1481 Section 1481. 71.28 (5n) (d) 2. of the statutes is amended to read:

SB70,920,3 71.28 (5n) (d) 2. Except as provided in subd. subds. 2m. and 3., for purposes of determining a claimant's eligible qualified production activities income under this subsection, the claimant shall multiply the claimant's qualified production activities income from property manufactured by the claimant by the manufacturing property factor and qualified production activities income from property produced, grown, or extracted by the claimant by the agriculture property factor. This subdivision does not apply if the claimant's entire qualified production activities income results from the sale of tangible personal property that was manufactured, produced, grown, or extracted wholly in this state by the claimant.

SB70,1482 Section 1482. 71.28 (5n) (d) 2m. of the statutes is created to read:

SB70,920,13 71.28 (5n) (d) 2m. Except as provided in subd. 3., for taxable years beginning after December 31, 2022, for purposes of determining a claimant's eligible qualified production activities income from manufacturing under this subsection, the claimant shall multiply the claimant's qualified production activities income, not exceeding $300,000, from property manufactured by the claimant by the manufacturing property factor. This subdivision does not apply if the claimant's entire qualified production activities income results from the sale of tangible personal property that was manufactured, produced, grown, or extracted wholly in this state by the claimant.

SB70,1483 Section 1483. 71.28 (5n) (d) 3. a. of the statutes is amended to read:

SB70,920,16 71.28 (5n) (d) 3. a. The eligible qualified production activities income determined under subd. 2. or 2m.

SB70,1484 Section 1484. 71.28 (8b) (a) 5. of the statutes is amended to read:

SB70,920,22 71.28 (8b) (a) 5. “Credit period” means the period of 6 10 taxable years beginning with the taxable year in which a qualified development is placed in service. For purposes of this subdivision, if a qualified development consists of more than one building, the qualified development is placed in service in the taxable year in which the last building of the qualified development is placed in service.

SB70,1485 Section 1485. 71.28 (8b) (a) 7. of the statutes is amended to read:

SB70,921,8 71.28 (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.

SB70,1486 Section 1486 . 71.28 (8m) of the statutes is created to read:

SB70,921,11 71.28 (8m) Universal changing station credit. (a) Definitions. In this subsection:

SB70,921,13 1. “Claimant" means a person who files a claim under this subsection and meets either of the following conditions during the preceding taxable year:

SB70,921,14 a. Had gross receipts that did not exceed $1,000,000.

SB70,921,15 b. Employed no more than 30 full-time employees.

SB70,921,17 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.

SB70,921,18 3. “Universal changing station” has the meaning given in s. 71.07 (8m) (a) 3.

SB70,921,23 (b) Filing claims. For taxable years beginning after December 31, 2022, subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.23, 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.

SB70,922,4 (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.

SB70,922,5 2. The credit claimed under this subsection may not exceed $5,125.

SB70,922,12 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.

SB70,922,14 (d) Administration. Sub. (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB70,1487 Section 1487 . 71.30 (3) (cu) of the statutes is created to read:

SB70,922,16 71.30 (3) (cu) Universal changing station credit under s. 71.28 (8m).

SB70,1488 Section 1488. 71.34 (1g) of the statutes is repealed and recreated to read:

SB70,922,19 71.34 (1g) For tax option corporations, “Internal Revenue Code" has the meaning given in s. 71.99.

SB70,1489 Section 1489. 71.34 (1k) (g) of the statutes is amended to read:

SB70,922,24 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (4), (5), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8m), and (10) and passed through to shareholders.

SB70,1490 Section 1490. 71.34 (1m) of the statutes is repealed.

SB70,1491 Section 1491. 71.34 (1u) of the statutes is repealed.

SB70,1492 Section 1492. 71.42 (2) of the statutes is repealed and recreated to read:

SB70,923,3 71.42 (2) “Internal Revenue Code" has the meaning given in s. 71.99.

SB70,1493 Section 1493. 71.42 (2m) of the statutes is repealed.

SB70,1494 Section 1494. 71.42 (2p) of the statutes is repealed.

SB70,1495 Section 1495. 71.45 (2) (a) 10. of the statutes is amended to read:

SB70,923,13 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3w), (3y), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8m), and (10) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, limited liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47 (3), (3t), (4), (4m), and (5).

SB70,1496 Section 1496. 71.45 (4) (a) of the statutes is amended to read:

SB70,924,2 71.45 (4) (a) Except as provided in par. (b) and s. 71.80 (25), insurers computing tax under this subchapter may subtract from Wisconsin net income any Wisconsin net business loss incurred in any of the 20 immediately preceding taxable years, if the insurer was subject to taxation under this chapter in the taxable year in which the loss was incurred, to the extent not offset by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed and computed without regard to sub. (2) (a) 8. and 9. and this subsection and limited to the amount of net income, but no loss incurred for a taxable year before taxable year 1987 by a nonprofit service plan of sickness care under ch. 148, or dental care under s. 447.13 may be treated as a net business loss of the successor service insurer under ch. 613 operating by virtue of s. 148.03 or 447.13. For purposes of this paragraph, the dividends received deduction under s. 71.26 (3) (j) may not be used in the determination of a net business loss.

SB70,1497 Section 1497. 71.47 (3w) (a) 2m. of the statutes is created to read:

SB70,924,5 71.47 (3w) (a) 2m. “Contract” means a contract between the claimant and the Wisconsin Economic Development Corporation under s. 238.399.

SB70,1498 Section 1498. 71.47 (3w) (a) 6. of the statutes is renumbered 71.47 (3w) (a) 6. a. and amended to read:

SB70,924,11 71.47 (3w) (a) 6. a. “Zone payroll" means the amount of state payroll that is attributable to wages paid to full-time employees for services that are performed in an enterprise zone. “Zone Except as provided in subd. 6. b., “zone payroll" does not include the amount of wages paid to any full-time employees that exceeds $100,000.

SB70,1499 Section 1499. 71.47 (3w) (a) 6. b. of the statutes is created to read:

SB70,924,15 71.47 (3w) (a) 6. b. For a claimant whose contract is executed after December 31, 2023, “zone payroll" does not include the amount of wages paid to any full-time employees that exceeds $141,300.

SB70,1500 Section 1500. 71.47 (3w) (b) (intro.) of the statutes is amended to read:

SB70,924,20 71.47 (3w) (b) Filing claims under pre-2024 contracts; payroll. (intro.) Subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant whose contract is executed prior to January 1, 2024, may claim as a credit against the tax imposed under s. 71.43 an amount calculated as follows:

SB70,1501 Section 1501. 71.47 (3w) (bd) of the statutes is created to read:

SB70,924,25 71.47 (3w) (bd) Filing claims under post-2023 contracts; payroll. Subject to the limitations provided in this subsection and s. 238.399, a claimant whose contract is executed after December 31, 2023, may claim as a credit against the tax imposed under s. 71.43 an amount calculated as follows:

SB70,925,1 1. Determine the amount that is the lesser of:

SB70,925,8 a. The number of full-time employees whose annual wages are greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year, minus the number of full-time employees whose annual wages were greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the area that comprises the enterprise zone in the base year.

SB70,925,14 b. The number of full-time employees whose annual wages are greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the state in the taxable year, minus the number of full-time employees whose annual wages were greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the state in the base year.

SB70,925,21 2. Determine the claimant's average zone payroll by dividing total wages for full-time employees whose annual wages are greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year by the number of full-time employees whose annual wages are greater than $32,000 or greater than $42,390 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year.

SB70,925,24 3. For employees in a tier I county or municipality, subtract $32,000 from the amount determined under subd. 2. and for employees in a tier II county or municipality, subtract $42,390 from the amount determined under subd. 2.

SB70,926,2 4. Multiply the amount determined under subd. 3. by the amount determined under subd. 1.

SB70,926,4 5. Multiply the amount determined under subd. 4. by the percentage determined under s. 238.399, not to exceed 7 percent.

SB70,1502 Section 1502. 71.47 (3w) (bm) 1. of the statutes is amended to read: