71.28(5k)(c)1.1. The maximum amount of the credit that any claimant may claim under this subsection in a taxable year is $25,000 for each community rehabilitation program for which the claimant enters into a contract to have the community rehabilitation program perform work for the claimant’s business. 71.28(5k)(c)2.2. No credit may be claimed under this subsection unless the claimant submits with the claimant’s return a form, as prescribed by the department of revenue, that verifies that the claimant has entered into a contract with a community rehabilitation program and that the program has received payment from the claimant for work provided by the program, consistent with par. (b). 71.28(5k)(c)3.3. 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 their payment of amounts under par. (b). 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 of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests. 71.28(5k)(d)(d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection. 71.28(5n)(5n) Manufacturing and agriculture credit. 71.28(5n)(a)1.a.a. “Agriculture property factor” means a fraction, the numerator of which is the average value of the claimant’s real property and improvements assessed under s. 70.32 (2) (a) 4., owned or rented and used in this state by the claimant during the taxable year to produce, grow, or extract qualified production property, and the denominator of which is the average value of all of the claimant’s real property and improvements owned or rented during the taxable year and used by the claimant to produce, grow, or extract qualified production property. 71.28(5n)(a)1.b.b. For purposes of subd. 1. a., property owned by the claimant is valued at its original cost and property rented by the claimant is valued at an amount equal to the annual rental paid by the claimant, less any annual rental received by the claimant from sub-rentals, multiplied by 8. 71.28(5n)(a)1.c.c. For purposes of subd. 1. a., the average value of property is determined by averaging the values at the beginning and ending of the taxable year, except that the secretary of revenue may require the averaging of monthly values during the taxable year, if such averaging is reasonably required to properly reflect the average value of the claimant’s property. 71.28(5n)(a)2.2. “Claimant” means a person who files a claim under this subsection. 71.28(5n)(a)3.3. “Direct costs” includes all of the claimant’s ordinary and necessary expenses paid or incurred during the taxable year in carrying on the trade or business that are deductible as business expenses under the Internal Revenue Code and identified as direct costs in the claimant’s managerial or cost accounting records. 71.28(5n)(a)4.4. “Indirect costs” includes all of the claimant’s ordinary and necessary expenses paid or incurred during the taxable year in carrying on the trade or business that are deductible as business expenses under the Internal Revenue Code, other than cost of goods sold and direct costs, and identified as indirect costs in the claimant’s managerial or cost accounting records. 71.28(5n)(a)5.a.a. “Manufacturing property factor” means a fraction, the numerator of which is the average value of the claimant’s land and depreciable property, 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 land and depreciable property owned or rented during the taxable year and used by the claimant to manufacture qualified production property. 71.28(5n)(a)5.b.b. For purposes of subd. 5. a., property owned by the claimant is valued at its original cost and property rented by the claimant is valued at an amount equal to the annual rental paid by the claimant, less any annual rental received by the claimant from sub-rentals, multiplied by 8. 71.28(5n)(a)5.c.c. For purposes of subd. 5. a., the average value of property is determined by averaging the values at the beginning and ending of the taxable year, except that the secretary of revenue may require the averaging of monthly values during the taxable year, if such averaging is reasonably required to properly reflect the average value of the claimant’s property. 71.28(5n)(a)6.a.a. For taxable years beginning before January 1, 2019, gross receipts from the lease, rental, license, sale, exchange, or other disposition of qualified production property. 71.28(5n)(a)6.b.b. For taxable years beginning after December 31, 2018, the sum of gross receipts from the lease, rental, license, sale, exchange, or other disposition of qualified production property and insurance proceeds received as a result of the destruction of, or damage to, crops to the extent the proceeds are included in federal taxable income for the taxable year. 71.28(5n)(a)7.7. “Production gross receipts factor” means a fraction, the numerator of which is production gross receipts and the denominator of which is all gross income from whatever source, except for those items specifically excluded under the Internal Revenue Code as adopted by this state and otherwise excluded under Wisconsin law. For purposes of the denominator, income includes gross sales, gross dividends, gross interest income, gross rents, gross royalties, the gross sales price from the disposition of capital assets and business assets, gross income from pass-through entities, and all other gross receipts that are included in income, before apportionment for Wisconsin tax purposes under s. 71.25 (6). 71.28(5n)(a)8.8. “Qualified production activities income” means the amount of the claimant’s production gross receipts for the taxable year that exceeds the sum of the cost of goods sold that are allocable to such receipts, the direct costs that are allocable to such receipts, and the indirect costs multiplied by the production gross receipts factor. “Qualified production activities income” does not include any of the following: 71.28(5n)(a)8.b.b. Income from producing, transmitting, or distributing electricity, natural gas, or potable water. 71.28(5n)(a)8.d.d. Income from engineering or architectural services performed with respect to constructing real property. 71.28(5n)(a)8.e.e. Income from the sale of food and beverages prepared by the claimant at a retail establishment. 71.28(5n)(a)8.f.f. Income from the lease, rental, license, sale, exchange, or other disposition of land. 71.28(5n)(a)9.9. “Qualified production property” means any of the following: 71.28(5n)(a)9.a.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. 71.28(5n)(a)9.b.b. Tangible personal property produced, grown, or extracted in whole or in part by the claimant on or from property assessed as agricultural property under s. 70.32 (2) (a) 4. 71.28(5n)(a)9.c.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). 71.28(5n)(b)(b) Filing claims. 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 the tax, an amount equal to one of the following percentages of the claimant’s eligible qualified production activities income in the taxable year: 71.28(5n)(b)1.1. For taxable years beginning after December 31, 2012, and before January 1, 2014, 1.875 percent. 71.28(5n)(b)2.2. For taxable years beginning after December 31, 2013, and before January 1, 2015, 3.75 percent. 71.28(5n)(b)3.3. For taxable years beginning after December 31, 2014, and before January 1, 2016, 5.025 percent. 71.28(5n)(b)4.4. For taxable years beginning after December 31, 2015, 7.5 percent. 71.28(5n)(c)(c) Limitations. 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 their share of the income described under par. (b). 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 of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests. 71.28(5n)(d)2.2. Except as provided in subd. 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. 71.28(5n)(d)3.3. The amount of the eligible qualified production activities income that a claimant may claim in computing the credit under par. (b) is the lesser of the following: 71.28(5n)(d)3.a.a. The eligible qualified production activities income determined under subd. 2. 71.28(5r)(5r) Postsecondary education credit. 71.28(5r)(a)1.1. “Claimant” means a corporation that files a claim under this subsection. 71.28(5r)(a)4.4. “Managing employee” means an individual who wholly or partially exercises operational or managerial control over, or who directly or indirectly conducts, the operation of the claimant’s business. 71.28(5r)(a)5.5. “Paid or incurred” includes any amount paid by the claimant to reimburse an individual for the tuition that the individual paid or incurred. 71.28(5r)(a)6.6. “Qualified postsecondary institution” means all of the following: 71.28(5r)(a)6.a.a. A University of Wisconsin System institution, a technical college system institution, or a regionally accredited 4-year nonprofit college or university having its regional headquarters and principal place of business in this state. 71.28(5r)(b)(b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.23 an amount equal to the following: 71.28(5r)(b)1.1. Twenty-five percent of the tuition that the claimant paid or incurred for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a course of instruction and eligible for a grant from the Federal Pell Grant Program. 71.28(5r)(b)2.2. Thirty percent of the tuition that the claimant paid or incurred for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a course of instruction that relates to a projected worker shortage in this state, as determined by the local workforce development boards established under 29 USC 2832, and if the individual was eligible for a grant from the Federal Pell Grant Program. 71.28(5r)(c)1.1. No credit may be allowed under par. (b) unless the claimant certifies to the department of revenue that the claimant will not be reimbursed for any amount of tuition for which the claimant claims a credit under par. (b). 71.28(5r)(c)2.2. A claimant may not claim the credit under par. (b) for any tuition amounts that the individual described under par. (b) excluded under section 127 of the Internal Revenue Code. 71.28(5r)(c)3.3. A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant paid or incurred for a family member of a managing employee unless all of the following apply: 71.28(5r)(c)3.a.a. The family member was employed an average of at least 20 hours per week as an employee of the claimant, or the claimant’s business, during the one-year period prior to commencing participation in the education program in connection with which the claimant claims a credit under par. (b). 71.28(5r)(c)3.b.b. The family member is enrolled in a course of instruction that is substantially related to the claimant’s business. 71.28(5r)(c)3m.3m. A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant paid or incurred for an individual who is not a resident of this state. 71.28(5r)(c)4.4. The claimant shall claim the credit for the taxable year in which the individual graduates from a course of instruction in an amount equal to the total amount the claimant paid or incurred under par. (b) for all taxable years in which the claimant paid or incurred such amounts related to that individual. 71.28(5r)(c)5.5. 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 their payment of tuition under par. (b). 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 of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest. 71.28(5r)(d)2.2. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013. Credits under this subsection for taxable years that begin before January 1, 2014, may be carried forward to taxable years that begin after December 31, 2013. 71.28(5rm)(a)2.2. “Claimant” means a person who files a claim under this subsection, who is an industrial customer of a municipal water utility that is located in a federal renewal community zone in this state, and whose average annual water consumption from that utility for a 24-month period exceeds 1,000,000 Ccf. 71.28(5rm)(b)(b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2009, and before January 1, 2014, a claimant may claim as a credit against the tax imposed under s. 71.23, up to the amount of the tax, the amount determined as follows, except that the maximum amount that a claimant may claim in a taxable year under this subsection is $300,000: 71.28(5rm)(b)1.1. Subtract the claimant’s 2009 water usage costs from the claimant’s water usage costs for the taxable year. 71.28(5rm)(b)2.2. If the amount determined under subd. 1. is a positive number, multiply that amount by 0.50. 71.28(5rm)(c)(c) Limitations. 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 their payment of amounts under par. (b). 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 of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests. 71.28(5rm)(d)2.2. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013. Credits under this subsection for taxable years that begin before January 1, 2014, may be carried forward to taxable years that begin after December 31, 2013. 71.28(6)(6) Supplement to federal historic rehabilitation credit. 71.28(6)(a)1m.1m. For taxable years beginning before January 1, 2014, any person may credit against taxes otherwise due under this chapter, up to the amount of those taxes, an amount equal to 5 percent, for taxable years beginning before January 1, 2013, or 10 percent, for taxable years beginning after December 31, 2012, and before January 1, 2014, of the costs of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue Code, for certified historic structures on property located in this state if the physical work of construction or destruction in preparation for construction begins after December 31, 1988, and the rehabilitated property is placed in service after June 30, 1989, and before January 1, 2014. 71.28(6)(a)2m.2m. For taxable years beginning after December 31, 2013, any person may claim as a credit against taxes otherwise due under s. 71.23, up to the amount of those taxes, an amount equal to 20 percent of the costs of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue Code, for certified historic structures on property located in this state, if the cost of the person’s qualified rehabilitation expenditures is at least $50,000 and the rehabilitated property is placed in service after December 31, 2013. 71.28(6)(a)3.3. For taxable years beginning after December 31, 2013, any person may claim as a credit against taxes otherwise due under s. 71.23, up to the amount of those taxes, an amount equal to 20 percent of the costs of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue Code, for qualified rehabilitated buildings, as defined in section 47 (c) (1) of the Internal Revenue Code, on property located in this state, if the cost of the person’s qualified rehabilitation expenditures is at least $50,000 and the rehabilitated property is placed in service after December 31, 2013, and regardless of whether the rehabilitated property is used for multiple or revenue-producing purposes. No credit may be claimed under this subdivision for property listed as a contributing building in the state register of historic places or in the national register of historic places and no credit may be claimed under this subdivision for nonhistoric, nonresidential property converted into housing if the property has been previously used for housing. 71.28(6)(c)(c) No person may claim the credit under par. (a) 2m. unless the claimant includes with the claimant’s return a copy of the claimant’s certification under s. 238.17. For certification purposes under s. 238.17, the claimant shall provide to the Wisconsin Economic Development Corporation all of the following: 71.28(6)(c)1.1. Evidence that the rehabilitation was recommended by the state historic preservation officer for approval by the secretary of the interior under 36 CFR 67.6 before the physical work of construction, or destruction in preparation for construction, began and that the rehabilitation was approved by the state historic preservation officer. 71.28(6)(c)2.2. Evidence that the taxpayer obtained written certification from the state historic preservation officer that:
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