AB68-SSA1,1378 25Section 1378. 71.28 (3w) (cm) of the statutes is created to read:
AB68-SSA1,701,11
171.28 (3w) (cm) Inflation adjustments. For taxable years beginning after
2December 31, 2022, the dollar amounts in pars. (a) 6. b., (bd) 1. a. and b., 2., and 3.,
3and (bm) 2. b. and 5. b. shall be increased each year by a percentage equal to the
4percentage change between the U.S. consumer price index for all urban consumers,
5U.S. city average, for the month of August of the previous year and the U.S. consumer
6price index for all urban consumers, U.S. city average, for the month of August of the
7year before the previous year, as determined by the federal department of labor.
8Each amount that is revised under this paragraph shall be rounded to the nearest
9multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount
10is a multiple of $5, such an amount shall be increased to the next higher multiple of
11$10.
AB68-SSA1,1379 12Section 1379. 71.28 (3y) (b) 5. of the statutes is amended to read:
AB68-SSA1,701,1913 71.28 (3y) (b) 5. An amount, as determined by the Wisconsin Economic
14Development Corporation under s. 238.308 (4) (a) 5., equal to a percentage of the
15amount of wages that the claimant paid to an eligible employee in the taxable year
16if the position in which the eligible employee was employed was created or retained
17in connection with the claimant's location or retention of the claimant's corporate
18headquarters in Wisconsin and the job duties associated with the eligible employee's
19position involve the performance of corporate headquarters functions
.
AB68-SSA1,1380 20Section 1380. 71.28 (3y) (b) 6. of the statutes is created to read:
AB68-SSA1,701,2421 71.28 (3y) (b) 6. An amount, as determined by the Wisconsin Economic
22Development Corporation under s. 238.308 (4) (a) 6., equal to a percentage, not to
23exceed 25 percent, of the claimant's energy efficiency or renewable energy project
24expenditures on real or personal property located in this state.
AB68-SSA1,1381
1Section 1381. 71.28 (3y) (c) 1. of the statutes is renumbered 71.28 (3y) (c) 1.
2a. and amended to read:
AB68-SSA1,702,113 71.28 (3y) (c) 1. a. Partnerships Except as provided in subd. 1. b., partnerships,
4limited liability companies, and tax-option corporations may not claim the credit
5under this subsection, but the eligibility for, and the amount of, the credit are based
6on their payment of amounts under par. (b). A partnership, limited liability company,
7or tax-option corporation shall compute the amount of credit that each of its
8partners, members, or shareholders may claim and shall provide that information
9to each of them. Partners, members of limited liability companies, and shareholders
10of tax-option corporations may claim the credit in proportion to their ownership
11interests.
AB68-SSA1,1382 12Section 1382. 71.28 (3y) (c) 1. b. of the statutes is created to read:
AB68-SSA1,702,2513 71.28 (3y) (c) 1. b. For taxable years beginning after December 31, 2020,
14partnerships, limited liability companies, and tax-option corporations may elect to
15claim the credit under this subsection, if the credit results from a contract entered
16into with the Wisconsin Economic Development Corporation before December 22,
172017. A partnership, limited liability company, or tax-option corporation that
18wishes to make the election under this subd. 1. b. shall make the election for each
19taxable year on its original return and may not subsequently make or revoke the
20election. If a partnership, limited liability company, or tax-option corporation elects
21to claim the credit under this subsection, the partners, members, and shareholders
22may not claim the credit under this subsection. The credit may not be claimed under
23this subd. 1. b. if one or more partners, members, or shareholders have claimed the
24credit under this subsection for the same taxable year for which the credit is claimed
25under this subd. 1. b.
AB68-SSA1,1383
1Section 1383. 71.28 (4) (k) 1. of the statutes is renumbered 71.28 (4) (k) 1. a.
2and amended to read:
AB68-SSA1,703,83 71.28 (4) (k) 1. a. The For taxable years beginning before January 1, 2021, the
4amount of the claim not used to offset the tax due, not to exceed 10 percent of the
5allowable amount of the claim under par. (ad) 4., 5., or 6., shall be certified by the
6department of revenue to the department of administration for payment by check,
7share draft, or other draft drawn from the appropriation account under s. 20.835 (2)
8(d).
AB68-SSA1,1384 9Section 1384. 71.28 (4) (k) 1. b. of the statutes is created to read:
AB68-SSA1,703,1510 71.28 (4) (k) 1. b. For taxable years beginning after December 31, 2020, the
11amount of the claim not used to offset the tax due, not to exceed 20 percent of the
12allowable amount of the claim under par. (ad) 4., 5., or 6., shall be certified by the
13department of revenue to the department of administration for payment by check,
14share draft, or other draft drawn from the appropriation account under s. 20.835 (2)
15(d).
AB68-SSA1,1385 16Section 1385 . 71.28 (4t) of the statutes is created to read:
AB68-SSA1,703,1717 71.28 (4t) Work opportunity tax credit. (a) Definitions. In this subsection:
AB68-SSA1,703,1918 1. “Claimant” means a person who is an employer of a targeted group member
19and who files a claim under this subsection.
AB68-SSA1,703,2120 2. “Targeted group member” means an individual who performs services for the
21claimant in this state and who is a member of a targeted group under 26 USC 51 (d).
AB68-SSA1,703,2422 (b) Filing claims. For taxable years beginning after December 31, 2020, a
23claimant may claim as a credit against the taxes imposed under s. 71.23, up to the
24amount of the tax, the following amounts:
AB68-SSA1,704,3
11. An amount equal to 20 percent of the qualified first-year wages, as defined
2in 26 USC 51 (b) (2), paid during the taxable year to a targeted group member who
3has performed at least 400 hours of services for the claimant in this state.
AB68-SSA1,704,74 2. An amount equal to 12.5 percent of the qualified first-year wages, as defined
5in 26 USC 51 (b) (2), paid during the taxable year to a targeted group member who
6has performed at least 120 hours, but less than 400 hours, of services for the claimant
7in this state.
AB68-SSA1,704,118 3. An amount equal to 25 percent of the qualified 2nd-year wages, as defined
9in 26 USC 51 (e) (2), paid during the taxable year to a long-term family assistance
10recipient, as defined in 26 USC 51 (d) (10), who has performed at least 400 hours of
11services for the claimant in this state.
AB68-SSA1,704,1412 (c) Limitations. 1. The wages for which a credit may be claimed under par. (b)
13may not exceed the applicable threshold in 26 USC 51 (b) (3), (d) (7) (B) (ii), or (e) (1)
14(B) and may not be paid for services performed outside this state.
AB68-SSA1,704,1615 2. A credit under this subsection shall be claimed at the same time as the credit
16under 26 USC 51.
AB68-SSA1,704,18173. The requirements and limitations in 26 USC 51 (d) (13), (f), (i), and (k) shall
18apply to the credit under this subsection.
AB68-SSA1,704,2519 4. Partnerships, limited liability companies, and tax-option corporations may
20not claim the credit under this subsection, but the eligibility for, and the amount of,
21the credit are based on their payment of the wages under par. (b). A partnership,
22limited liability company, or tax-option corporation shall compute the amount of
23credit that each of its partners, members, or shareholders may claim and shall
24provide that information to each of them. The partners, members, and shareholders
25may claim the credit in proportion to their ownership interests.
AB68-SSA1,705,2
1(d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
2sub. (4), applies to the credit under this subsection.
AB68-SSA1,1386 3Section 1386. 71.28 (5n) (d) 2. of the statutes is amended to read:
AB68-SSA1,705,94 71.28 (5n) (d) 2. Except as provided in subd. subds. 2m. and 3., for purposes of
5determining a claimant's eligible qualified production activities income under this
6subsection, the claimant shall multiply the claimant's qualified production activities
7income from property manufactured by the claimant by the manufacturing property
8factor and qualified production activities income from property produced, grown, or
9extracted by the claimant by the agriculture property factor.