SB213: Bill Text

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:

SB213,1 Section 1. 71.05 (6) (a) 15. of the statutes is amended to read:

SB213,2,7 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5i), (5j), (5k), (5r), (5rm), (6n), (8t), 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, company’s, or tax-option corporation’s income under s. 71.21 (4) or 71.34 (1k) (g).

SB213,2 Section 2. 71.07 (8t) of the statutes is created to read:

SB213,2,10 71.07 (8t) Rail infrastructure modernization credit. (a) Definitions. In this subsection:

SB213,2,12 1. “Claimant” means a person who files a claim under this subsection and who is one of the following:

SB213,2,15 a. A railroad company located wholly or partly in this state that is classified by the federal surface transportation board as a class II or class III railroad for the taxable year to which the claim applies.

SB213,3,3 b. An owner or lessee of a rail siding, industrial spur, or industry track on or adjacent to a railroad in this state during the taxable year to which the claim applies.

SB213,3,10 2. “Qualified new rail infrastructure expenditures” means expenditures for rail infrastructure and improvements in this state placed in service after December 31, 2024, including expenditures for the acquisition of right-of-way; engineering; construction of new track such as industrial leads, switches, spurs, and sidings; rehabilitation of existing inactive track to reinstate operation; loading dock improvements; and transloading structures involved with servicing customer locations or expansions.

SB213,3,15 3. “Qualified short line railroad maintenance expenditures” means gross expenditures for railroad infrastructure rehabilitation or maintenance improvements located in this state, including but not limited to rail, tie plates, joint bars, fasteners, switches, ballast, subgrade, roadbed, industrial leads, sidings, signs, safety barriers, crossing signals and gates, and related track structures.

SB213,3,19 (b) Filing claims. For taxable years beginning after December 31, 2024, and before January 1, 2035, and subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, all of the following:

SB213,3,23 1. An amount equal to 50 percent of the qualified short line railroad maintenance expenditures made by the claimant during the taxable year to which the claim relates if the claimant is classified by the federal surface transportation board as a class II or class III railroad for the taxable year.

SB213,4,2 2. An amount equal to 50 percent of the qualified new rail infrastructure expenditures made by the claimant during the taxable year to which the claim relates.

SB213,4,5 (c) Limitations. 1. No credit may be claimed under par. (b) 1. for any qualified short line railroad maintenance expenditures that are used to claim a tax credit under federal law or that are funded by a federal or state grant.

SB213,4,10 2. The total amount of the credits under par. (b) 1. and ss. 71.28 (8t) (b) 1. and 71.47 (8t) (b) 1. for a claimant for a taxable year may not exceed an amount equal to $5,000 multiplied by the number of miles of railroad track owned or leased by the claimant in this state on December 31 of the taxable year to which the claim applies.

SB213,4,13 3. The total amount of the credits under par. (b) 2. and ss. 71.28 (8t) (b) 2. and 71.47 (8t) (b) 2. for a claimant for a taxable year may not exceed $2,000,000 per project application approved by the department.

SB213,4,18 4. No credit may be allowed under this subsection unless the claimant submits an application to the department, at the time and in the manner prescribed by the department, and the department approves the application. The claimant shall submit a copy of the approved application with the claimant’s return.

SB213,5,2 5. Partnerships, tax-option corporations, and limited liability companies may not claim a credit under this subsection, but the eligibility for, and the amount of, the credit are based on their expenditures made under par. (b). A partnership, tax- option corporation, or limited liability company shall compute the amount of the credit that each of its partners, shareholders, or members may claim and shall provide that information to each of them. Partners of a partnership, shareholders of tax-option corporations, and members of limited liability companies may claim the credit in proportion to their ownership interest.

SB213,5,4 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB213,5,10 2. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 5 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expenditure was made and the year in which the carry-forward credit is claimed.

SB213,5,20 (e) Transfer. Any person may sell or otherwise transfer the credit under par. (b), 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. (b) 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.

SB213,3 Section 3. 71.10 (4) (cu) of the statutes is created to read:

SB213,5,22 71.10 (4) (cu) Rail infrastructure modernization credit under s. 71.07 (8t).

SB213,4 Section 4. 71.21 (4) (a) of the statutes is amended to read:

SB213,6,3 71.21 (4) (a) The amount of the credits computed by a partnership under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8t), and (10) and passed through to partners shall be added to the partnership’s income.

SB213,5 Section 5. 71.26 (2) (a) 4. of the statutes is amended to read:

SB213,6,10 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm), (1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8t), 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).

SB213,6 Section 6. 71.28 (8t) of the statutes is created to read:

SB213,6,13 71.28 (8t) Rail infrastructure modernization credit. (a) Definitions. In this subsection:

SB213,6,15 1. “Claimant” means a person who files a claim under this subsection and who is one of the following:

SB213,6,18 a. A railroad company located wholly or partly in this state that is classified by the federal surface transportation board as a class II or class III railroad for the taxable year to which the claim applies.

SB213,6,21 b. An owner or lessee of a rail siding, industrial spur, or industry track on or adjacent to a railroad in this state during the taxable year to which the claim applies.

SB213,7,4 2. “Qualified new rail infrastructure expenditures” means expenditures for rail infrastructure and improvements in this state placed in service after December 31, 2024, including expenditures for the acquisition of right-of-way; engineering; construction of new track such as industrial leads, switches, spurs, and sidings; rehabilitation of existing inactive track to reinstate operation; loading dock improvements; and transloading structures involved with servicing customer locations or expansions.

SB213,7,9 3. “Qualified short line railroad maintenance expenditures” means gross expenditures for railroad infrastructure rehabilitation or maintenance improvements located in this state, including but not limited to rail, tie plates, joint bars, fasteners, switches, ballast, subgrade, roadbed, industrial leads, sidings, signs, safety barriers, crossing signals and gates, and related track structures.

SB213,7,13 (b) Filing claims. For taxable years beginning after December 31, 2024, and before January 1, 2035, and 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, all of the following:

SB213,7,17 1. An amount equal to 50 percent of the qualified short line railroad maintenance expenditures made by the claimant during the taxable year to which the claim relates if the claimant is classified by the federal surface transportation board as a class II or class III railroad for the taxable year.

SB213,7,20 2. An amount equal to 50 percent of the qualified new rail infrastructure expenditures made by the claimant during the taxable year to which the claim relates.

SB213,7,23 (c) Limitations. 1. No credit may be claimed under par. (b) 1. for any qualified short line railroad maintenance expenditures that are used to claim a tax credit under federal law or that are funded by a federal or state grant.

SB213,8,4 2. The total amount of the credits under par. (b) 1. and ss. 71.07 (8t) (b) 1. and 71.47 (8t) (b) 1. for a claimant for a taxable year may not exceed an amount equal to $5,000 multiplied by the number of miles of railroad track owned or leased by the claimant in this state on December 31 of the taxable year to which the claim applies.

SB213,8,7 3. The total amount of the credits under par. (b) 2. and ss. 71.07 (8t) (b) 2. and 71.47 (8t) (b) 2. for a claimant for a taxable year may not exceed $2,000,000 per project application approved by the department.

SB213,8,12 4. No credit may be allowed under this subsection unless the claimant submits an application to the department, at the time and in the manner prescribed by the department, and the department approves the application. The claimant shall submit a copy of the approved application with the claimant’s return.

SB213,8,20 5. Partnerships, tax-option corporations, and limited liability companies may not claim a credit under this subsection, but the eligibility for, and the amount of, the credit are based on their expenditures made under par. (b). A partnership, tax- option corporation, or limited liability company shall compute the amount of the credit that each of its partners, shareholders, or members may claim and shall provide that information to each of them. Partners of a partnership, shareholders of tax-option corporations, and members of limited liability companies may claim the credit in proportion to their ownership interest.

SB213,8,22 (d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB213,9,4 2. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 5 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expenditure was made and the year in which the carry-forward credit is claimed.

SB213,9,14 (e) Transfer. Any person may sell or otherwise transfer the credit under par. (b), 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. (b) 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.

SB213,7 Section 7. 71.30 (3) (cu) of the statutes is created to read:

SB213,9,16 71.30 (3) (cu) Rail infrastructure modernization credit under s. 71.28 (8t).

SB213,8 Section 8. 71.34 (1k) (g) of the statutes is amended to read:

SB213,9,21 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), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8t), and (10) and passed through to shareholders.

SB213,9 Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:

SB213,9,24 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), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8t), 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).

SB213,10 Section 10. 71.47 (8t) of the statutes is created to read:

SB213,10,8 71.47 (8t) Rail infrastructure modernization credit. (a) Definitions. In this subsection:

SB213,10,10 1. “Claimant” means a person who files a claim under this subsection and who is one of the following:

SB213,10,13 a. A railroad company located wholly or partly in this state that is classified by the federal surface transportation board as a class II or class III railroad for the taxable year to which the claim applies.

SB213,10,16 b. An owner or lessee of a rail siding, industrial spur, or industry track on or adjacent to a railroad in this state during the taxable year to which the claim applies.

SB213,10,23 2. “Qualified new rail infrastructure expenditures” means expenditures for rail infrastructure and improvements in this state placed in service after December 31, 2024, including expenditures for the acquisition of right-of-way; engineering; construction of new track such as industrial leads, switches, spurs, and sidings; rehabilitation of existing inactive track to reinstate operation; loading dock improvements; and transloading structures involved with servicing customer locations or expansions.

SB213,11,4 3. “Qualified short line railroad maintenance expenditures” means gross expenditures for railroad infrastructure rehabilitation or maintenance improvements located in this state, including but not limited to rail, tie plates, joint bars, fasteners, switches, ballast, subgrade, roadbed, industrial leads, sidings, signs, safety barriers, crossing signals and gates, and related track structures.

SB213,11,8 (b) Filing claims. For taxable years beginning after December 31, 2024, and before January 1, 2035, and subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.43, up to the amount of those taxes, all of the following:

SB213,11,12 1. An amount equal to 50 percent of the qualified short line railroad maintenance expenditures made by the claimant during the taxable year to which the claim relates if the claimant is classified by the federal surface transportation board as a class II or class III railroad for the taxable year.

SB213,11,15 2. An amount equal to 50 percent of the qualified new rail infrastructure expenditures made by the claimant during the taxable year to which the claim relates.

SB213,11,18 (c) Limitations. 1. No credit may be claimed under par. (b) 1. for any qualified short line railroad maintenance expenditures that are used to claim a tax credit under federal law or that are funded by a federal or state grant.

SB213,11,23 2. The total amount of the credits under par. (b) 1. and ss. 71.07 (8t) (b) 1. and 71.28 (8t) (b) 1. for a claimant for a taxable year may not exceed an amount equal to $5,000 multiplied by the number of miles of railroad track owned or leased by the claimant in this state on December 31 of the taxable year to which the claim applies.

SB213,12,2 3. The total amount of the credits under par. (b) 2. and ss. 71.07 (8t) (b) 2. and 71.28 (8t) (b) 2. for a claimant for a taxable year may not exceed $2,000,000 per project application approved by the department.

SB213,12,7 4. No credit may be allowed under this subsection unless the claimant submits an application to the department, at the time and in the manner prescribed by the department, and the department approves the application. The claimant shall submit a copy of the approved application with the claimant’s return.

SB213,12,15 5. Partnerships, tax-option corporations, and limited liability companies may not claim a credit under this subsection, but the eligibility for, and the amount of, the credit are based on their expenditures made under par. (b). A partnership, tax- option corporation, or limited liability company shall compute the amount of the credit that each of its partners, shareholders, or members may claim and shall provide that information to each of them. Partners of a partnership, shareholders of tax-option corporations, and members of limited liability companies may claim the credit in proportion to their ownership interest.

SB213,12,17 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB213,12,23 2. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 5 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expenditure was made and the year in which the carry-forward credit is claimed.

SB213,13,9 (e) Transfer. Any person may sell or otherwise transfer the credit under par. (b), 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. (b) 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.

SB213,11 Section 11. 71.49 (1) (cu) of the statutes is created to read:

SB213,13,11 71.49 (1) (cu) Rail infrastructure modernization credit under s. 71.47 (8t).

SB213,12 Section 12. 73.03 (78) of the statutes is created to read:

SB213,13,15 73.03 (78) (a) To implement a program to approve applications for purposes of ss. 71.07 (8t), 71.28 (8t), and 71.47 (8t). Application shall be made to the department for each taxable year for which a credit is desired.

SB213,13,18 (b) 1. The department shall process applications under this subsection in the order of receipt, and the department shall approve applications under this subsection on a first-come, first-served basis.

SB213,13,20 2. The department may approve up to $10,000,000 in total credits under ss. 71.07 (8t) (b) 2., 71.28 (8t) (b) 2., and 71.47 (8t) (b) 2. for each taxable year.

SB213,13,21 (end)