AB50: Bill Text

AB50,1357 Section 1357. 71.28 (6) (f) 2. of the statutes is created to read:

AB50,718,18 71.28 (6) (f) 2. a. A partnership, limited liability company, or tax-option corporation may make an election under s. 71.21 (6) (a) or 71.365 (4m) (a) to claim the credit under par. (a) 4. against the net income or franchise tax otherwise payable to this state on income of the same year.

AB50,718,20 b. A partnership’s partners, limited liability company’s members, and tax- option corporation’s shareholders may not claim the credit under par. (a) 4.

AB50,1358 Section 1358. 71.28 (6) (g) 1. of the statutes is amended to read:

AB50,719,2 71.28 (6) (g) 1. If Except as provided in subd. 1m., if a person who claims the credit under this subsection elects to claim the credit based on claiming amounts for expenditures as the expenditures are paid, rather than when the rehabilitation work is completed, the person shall file an election form with the department, in the manner prescribed by the department.

AB50,1359 Section 1359. 71.28 (6) (g) 1m. of the statutes is created to read:

AB50,719,6 71.28 (6) (g) 1m. No person may claim the credit under par. (a) 4. unless the person claims the credit for the taxable year in which the rehabilitation work is completed.

AB50,1360 Section 1360. 71.28 (6) (h) of the statutes is amended to read:

AB50,719,19 71.28 (6) (h) Any person, including a nonprofit entity described in section 501 (c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under par. (a) 2m. or, 3., or 4., in whole or in part, to another person who is subject to the taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and submits with the notification a copy of the transfer documents, and the department certifies ownership of the credit with each transfer. The transferor may file a claim for more than one taxable year on a form prescribed by the department to compute all years of the credit under par. (a) 2m. or, 3., or 4., at the time of the transfer request. The transferee may first use the credit to offset tax in the taxable year of the transferor in which the transfer occurs, and may use the credit only to offset tax in taxable years otherwise allowed to be claimed and carried forward by the original claimant.

AB50,1361 Section 1361. 71.28 (8b) (a) 7. of the statutes is amended to read:

AB50,720,6 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.

AB50,1362 Section 1362. 71.28 (8m) of the statutes is created to read:

AB50,720,9 71.28 (8m) Universal changing station credit. (a) Definitions. In this subsection:

AB50,720,11 1. “Claimant” means a person who files a claim under this subsection and meets either of the following conditions during the preceding taxable year:

AB50,720,12 a. Had gross receipts that did not exceed $1,000,000.

AB50,720,13 b. Employed no more than 30 full-time employees.

AB50,720,15 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.

AB50,720,16 3. “Universal changing station” has the meaning given in s. 71.07 (8m) (a) 3.

AB50,720,21 (b) Filing claims. For taxable years beginning after December 31, 2024, 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.

AB50,721,4 (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.

AB50,721,5 2. The credit claimed under this subsection may not exceed $5,125.

AB50,721,12 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.

AB50,721,14 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB50,1363 Section 1363. 71.30 (3) (cu) of the statutes is created to read:

AB50,721,16 71.30 (3) (cu) Universal changing station credit under s. 71.28 (8m).

AB50,1364 Section 1364. 71.30 (3) (epr) of the statutes is created to read:

AB50,721,19 71.30 (3) (epr) Film production company investment credit under s. 71.28 (5h).

AB50,1365 Section 1365. 71.30 (3) (eps) of the statutes is created to read:

AB50,721,21 71.30 (3) (eps) Film production services credit under s. 71.28 (5f) (b) 1. and 3.

AB50,1366 Section 1366. 71.30 (3) (f) of the statutes is amended to read:

AB50,722,5 71.30 (3) (f) The total of farmland preservation credit under subch. IX, jobs credit under s. 71.28 (3q), enterprise zone jobs credit under s. 71.28 (3w), electronics and information technology manufacturing zone credit under s. 71.28 (3wm), business development credit under s. 71.28 (3y), research credit under s. 71.28 (4) (k) 1., film production services credit under s. 71.28 (5f) (b) 2., and estimated tax payments under s. 71.29.

AB50,1367 Section 1367. 71.34 (1k) (g) of the statutes is amended to read:

AB50,722,10 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), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8m), and (10) and passed through to shareholders.

AB50,1368 Section 1368. 71.365 (4m) (d) 2. of the statutes is amended to read:

AB50,722,13 71.365 (4m) (d) 2. Except as provided in s. 71.07 (7) (b) 3. and (9m) (f) 2. a., the tax credits under this chapter may not be claimed by the tax-option corporation.

AB50,1369 Section 1369. 71.45 (2) (a) 10. of the statutes is amended to read:

AB50,722,21 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), (5f), (5g), (5h), (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).

AB50,1370 Section 1370. 71.45 (4) (a) of the statutes is amended to read:

AB50,723,12 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.

AB50,1371 Section 1371. 71.47 (3w) (a) 2m. of the statutes is created to read:

AB50,723,15 71.47 (3w) (a) 2m. “Contract” means the contract between the claimant and the Wisconsin Economic Development Corporation under s. 238.399.

AB50,1372 Section 1372. 71.47 (3w) (a) 6. of the statutes is renumbered 71.47 (3w) (a) 6. a. and amended to read:

AB50,723,21 71.47 (3w) (a) 6. a. “Zone payroll” means the amount of state payroll that is attributable to wages paid to full-time employees based 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.

AB50,1373 Section 1373. 71.47 (3w) (a) 6. b. of the statutes is created to read:

AB50,724,2 71.47 (3w) (a) 6. b. For a claimant whose contract is executed after December 31, 2025, “zone payroll” does not include the amount of wages paid to any full-time employees that exceeds $151,300.

AB50,1374 Section 1374. 71.47 (3w) (b) (intro.) of the statutes is amended to read:

AB50,724,8 71.47 (3w) (b) Filing claims under pre-2026 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, 2026, may claim as a credit against the tax imposed under s. 71.43 an amount calculated as follows:

AB50,1375 Section 1375. 71.47 (3w) (bd) of the statutes is created to read:

AB50,724,13 71.47 (3w) (bd) Filing claims under post-2025 contracts; payroll. Subject to the limitations provided in this subsection and s. 238.399, a claimant whose contract is executed after December 31, 2025, may claim as a credit against the tax imposed under s. 71.43 an amount calculated as follows:

AB50,724,14 1. Determine the amount that is the lesser of:

AB50,724,21 a. The number of full-time employees whose annual wages are greater than $34,220 in a tier I county or municipality or greater than $45,390 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 $34,220 in a tier I county or municipality or greater than $45,390 in a tier II county or municipality and who the claimant employed in the area that comprises the enterprise zone in the base year.

AB50,725,4 b. The number of full-time employees whose annual wages are greater than $34,220 in a tier I county or municipality or greater than $45,390 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 $34,220 in a tier I county or municipality or greater than $45,390 in a tier II county or municipality and who the claimant employed in the state in the base year.

AB50,725,12 2. Determine the claimant’s average zone payroll by dividing the total wages for full-time employees whose annual wages are greater than $34,220 in a tier I county or municipality or greater than $45,390 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 $34,220 in a tier I county or municipality or greater than $45,390 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year.

AB50,725,15 3. For employees in a tier I county or municipality, subtract $34,220 from the amount determined under subd. 2. and for employees in a tier II county or municipality, subtract $45,390 from the amount determined under subd. 2.

AB50,725,17 4. Multiply the amount determined under subd. 3. by the amount determined under subd. 1.

AB50,725,19 5. Multiply the amount determined under subd. 4. by the percentage determined under s. 238.399, not to exceed 7 percent.

AB50,1376 Section 1376. 71.47 (3w) (bm) 1. of the statutes is amended to read:

AB50,726,8 71.47 (3w) (bm) 1. In addition to the credits under par. pars. (b) and (bd) and subds. 2., 3., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.43 an amount equal to a percentage, as determined under s. 238.399 or s. 560.799, 2009 stats., not to exceed 100 percent, of the amount the claimant paid in the taxable year to upgrade or improve the job-related skills of any of the claimant’s full-time employees, to train any of the claimant’s full-time employees on the use of job-related new technologies, or to provide job-related training to any full-time employee whose employment with the claimant represents the employee’s first full-time job. This subdivision does not apply to employees who do not work in an enterprise zone.

AB50,1377 Section 1377. 71.47 (3w) (bm) 2. of the statutes is renumbered 71.47 (3w) (bm) 2. (intro.) and amended to read:

AB50,726,14 71.47 (3w) (bm) 2. (intro.) In addition to the credits under par. pars. (b) and (bd) and subds. 1., 3., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.43 one of the following amounts:

AB50,727,3 a. For a claimant whose contract is executed prior to January 1, 2026, an amount equal to the percentage, as determined under s. 238.399 or s. 560.799, 2009 stats., not to exceed 7 percent, of the claimant’s zone payroll paid in the taxable year to all of the claimant’s full-time employees 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, not including the wages paid to the employees determined under par. (b) 1., or greater than $30,000 in a tier II county or municipality, not including the wages paid to the employees determined under par. (b) 1., and who the claimant employed in the enterprise zone in the taxable year, if the total number of such employees is equal to or greater than the total number of such employees in the base year. A claimant may claim a credit under this subdivision for no more than 5 consecutive taxable years.

AB50,1378 Section 1378. 71.47 (3w) (bm) 2. b. of the statutes is created to read:

AB50,727,14 71.47 (3w) (bm) 2. b. For a claimant whose contract is executed after December 31, 2025, an amount equal to the percentage, as determined under s. 238.399, not to exceed 7 percent, of the claimant’s zone payroll paid in the taxable year to all of the claimant’s full-time employees whose annual wages are greater than $34,220 in a tier I county or municipality, not including the wages paid to the employees determined under par. (bd) 1., or greater than $45,390 in a tier II county or municipality, not including the wages paid to the employees determined under par. (bd) 1., and who the claimant employed in the enterprise zone in the taxable year, if the total number of such employees is equal to or greater than the total number of such employees in the base year.

AB50,1379 Section 1379. 71.47 (3w) (bm) 3. of the statutes is amended to read:

AB50,727,21 71.47 (3w) (bm) 3. In addition to the credits under par. pars. (b) and (bd) and subds. 1., 2., and 4., 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, 2008, a claimant may claim as a credit against the tax imposed under s. 71.43 up to 10 percent of the claimant’s significant capital expenditures, as determined under s. 238.399 (5m) or s. 560.799 (5m), 2009 stats.

AB50,1380 Section 1380. 71.47 (3w) (bm) 4. of the statutes is amended to read:

AB50,728,8 71.47 (3w) (bm) 4. In addition to the credits under par. pars. (b) and (bd) and subds. 1., 2., and 3., 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. 71.43, 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.

AB50,1381 Section 1381. 71.47 (3w) (cm) of the statutes is created to read:

AB50,728,20 71.47 (3w) (cm) Inflation adjustments. For taxable years beginning after December 31, 2026, the dollar amounts in pars. (a) 6. b., (bd) 1. a. and b., 2., and 3., and (bm) 2. 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.

AB50,1382 Section 1382. 71.47 (3y) (b) 6. of the statutes is amended to read:

AB50,729,5 71.47 (3y) (b) 6. For taxable years beginning after December 31, 2023, and before January 1, 2025, the amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for employees, not to exceed 15 percent of such investment, and, for taxable years beginning after December 31, 2023, the amount of the investment made in establishing an employee child care program for employees, not to exceed 15 percent of such investment, as determined by the Wisconsin Economic Development Corporation.

AB50,1383 Section 1383. 71.47 (3y) (b) 7. of the statutes is created to read:

AB50,729,11 71.47 (3y) (b) 7. For taxable years beginning after December 31, 2024, the amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for employees, including contributions made by the person to a 3rd party responsible for building or rehabilitating workforce housing, including contributions made to a local revolving loan fund program, not to exceed 15 percent of such investment.

AB50,1384 Section 1384. 71.47 (4) (ad) 4. a. of the statutes is amended to read:

AB50,729,23 71.47 (4) (ad) 4. a. Except as provided in subds. 5. and, 6., and 7., for taxable years beginning after December 31, 2014, a corporation may claim a credit against the tax imposed under s. 71.43, as allocated under par. (d), an amount equal to 5.75 percent of the amount by which the corporation’s qualified research expenses for the taxable year exceed 50 percent of the average qualified research expenses for the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit. If the corporation had no qualified research expenses in any of the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit, the claimant may claim an amount equal to 2.875 percent of the corporation’s qualified research expenses for the taxable year for which the claimant claims the credit.

AB50,1385 Section 1385. 71.47 (4) (ad) 7. of the statutes is created to read:

AB50,730,14 71.47 (4) (ad) 7. a. For taxable years beginning after December 31, 2024, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s. 71.43, as allocated under par. (d), an amount equal to 11.5 percent of the amount by which the individual’s, partnership’s, tax-option corporation’s, or limited liability company’s qualified research expenses for the taxable year exceed 50 percent of the average qualified research expenses for the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit. If the individual, partnership, tax-option corporation, or limited liability company had no qualified research expenses in any of the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit, the claimant may claim an amount equal to 5.75 percent of the individual’s, partnership’s, tax-option corporation’s, or limited liability company’s qualified research expenses for the taxable year for which the claimant claims the credit.

AB50,730,22 b. For purposes of subd. 7. a., “qualified research expenses” means qualified research expenses as defined in section 41 of the Internal Revenue Code, except that “qualified research expenses” includes only expenses incurred by the individual, partnership, tax-option corporation, or limited liability company for research related to nuclear power, incurred for research conducted in this state, for the taxable year and does not include compensation used in computing the credit under sub. (1dx). Section 41 (f) (1), (2), (5), and (6) and (h) of the Internal Revenue Code does not apply to the credit under this subdivision.

AB50,1386 Section 1386. 71.47 (4) (k) (intro.) of the statutes is amended to read:

AB50,731,3 71.47 (4) (k) Refunds. (intro.) Notwithstanding par. (f), for taxable years beginning after December 31, 2017, if the allowable amount of the claim under par. (ad) 4., 5., or 6., or 7. exceeds the tax otherwise due under s. 71.43, all of the following apply:

AB50,1387 Section 1387. 71.47 (4) (k) 1. c. of the statutes is amended to read:

AB50,731,10 71.47 (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 25 percent of the allowable amount of the claim under par. (ad) 4., 5., or 6., or 7., 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).

AB50,1388 Section 1388. 71.47 (5f) of the statutes is created to read:

AB50,731,13 71.47 (5f) Film production services credit. (a) Definitions. In this subsection:

AB50,731,20 1. “Accredited production” means a film, video, broadcast advertisement, or television production, as approved by the department of tourism, for which the aggregate salary and wages included in the cost of the production for the period ending 12 months after the month in which the principal filming or taping of the production begins exceeds $100,000 for a production that is 30 minutes or longer or $50,000 for a production that is less than 30 minutes. “Accredited production” does not include any of the following, regardless of the production costs:

AB50,731,22 a. News, current events, or public programming or a program that includes weather or market reports.

AB50,731,23 b. A talk show.

AB50,731,24 c. A production with respect to a questionnaire or contest.

AB50,732,1 d. A sports event or sports activity.