AB50,13405Section 1340. 71.28 (4) (ad) 4. a. of the statutes is amended to read: AB50,705,16671.28 (4) (ad) 4. a. Except as provided in subds. 5. and, 6., and 7. for taxable 7years beginning after December 31, 2014, a corporation may claim a credit against 8the tax imposed under s. 71.23, as allocated under par. (d), an amount equal to 5.75 9percent of the amount by which the corporation’s qualified research expenses for 10the taxable year exceed 50 percent of the average qualified research expenses for 11the 3 taxable years immediately preceding the taxable year for which the claimant 12claims the credit. If the corporation had no qualified research expenses in any of 13the 3 taxable years immediately preceding the taxable year for which the claimant 14claims the credit, the claimant may claim an amount equal to 2.875 percent of the 15corporation’s qualified research expenses for the taxable year for which the 16claimant claims the credit. AB50,134117Section 1341. 71.28 (4) (ad) 7. of the statutes is created to read: AB50,706,71871.28 (4) (ad) 7. a. For taxable years beginning after December 31, 2024, an 19individual, a partner of a partnership, a shareholder of a tax-option corporation, or 20a member of a limited liability company may claim a credit against the tax imposed 21under s. 71.23, as allocated under par. (d), an amount equal to 11.5 percent of the 22amount by which the individual’s, partnership’s, tax-option corporation’s, or 23limited liability company’s qualified research expenses for the taxable year exceed 2450 percent of the average qualified research expenses for the 3 taxable years
1immediately preceding the taxable year for which the claimant claims the credit. If 2the individual, partnership, tax-option corporation, or limited liability company had 3no qualified research expenses in any of the 3 taxable years immediately preceding 4the taxable year for which the claimant claims the credit, the claimant may claim 5an amount equal to 5.75 percent of the individual’s, partnership’s, tax-option 6corporation’s, or limited liability company’s qualified research expenses for the 7taxable year for which the claimant claims the credit. AB50,706,158b. For purposes of subd. 7. a., “qualified research expenses” means qualified 9research expenses as defined in section 41 of the Internal Revenue Code, except 10that “qualified research expenses” includes only expenses incurred by the 11individual, partnership, tax-option corporation, or limited liability company for 12research related to nuclear power, incurred for research conducted in this state, for 13the taxable year and does not include compensation used in computing the credit 14under sub. (1dx). Section 41 (f) (1), (2), (5), and (6) and (h) of the Internal Revenue 15Code does not apply to the credit under this subdivision. AB50,134216Section 1342. 71.28 (4) (k) (intro.) of the statutes is amended to read: AB50,706,201771.28 (4) (k) Refunds. (intro.) Notwithstanding par. (f), for taxable years 18beginning after December 31, 2017, if the allowable amount of the claim under par. 19(ad) 4., 5., or 6., or 7. exceeds the tax otherwise due under s. 71.23, all of the 20following apply: AB50,134321Section 1343. 71.28 (4) (k) 1. c. of the statutes is amended to read: AB50,707,32271.28 (4) (k) 1. c. For taxable years beginning after December 31, 2023, the 23amount of the claim not used to offset the tax due, not to exceed 25 percent of the 24allowable amount of the claim under par. (ad) 4., 5., or 6., or 7., shall be certified by
1the department of revenue to the department of administration for payment by 2check, share draft, or other draft drawn from the appropriation account under s. 320.835 (2) (d). AB50,13444Section 1344. 71.28 (5f) of the statutes is created to read: AB50,707,6571.28 (5f) Film production services credit. (a) Definitions. In this 6subsection: AB50,707,1371. “Accredited production” means a film, video, broadcast advertisement, or 8television production, as approved by the department of tourism, for which the 9aggregate salary and wages included in the cost of the production for the period 10ending 12 months after the month in which the principal filming or taping of the 11production begins exceeds $100,000 for a production that is 30 minutes or longer or 12$50,000 for a production that is less than 30 minutes. “Accredited production” does 13not include any of the following, regardless of the production costs: AB50,707,1514a. News, current events, or public programming or a program that includes 15weather or market reports. AB50,707,1616b. A talk show. AB50,707,1717c. A production with respect to a questionnaire or contest. AB50,707,1818d. A sports event or sports activity. AB50,707,1919e. A gala presentation or awards show. AB50,707,2020f. A finished production that solicits funds. AB50,707,2321g. A production for which the production company is required under 18 USC 222257 to maintain records with respect to a performer portrayed in a single media or 23multimedia program. AB50,708,2
1h. A production produced primarily for industrial, corporate, or institutional 2purposes. AB50,708,832. “Claimant” means a film production company, as defined in sub. (5h) (a) 2., 4that operates an accredited production in this state, if the company owns the 5copyright in the accredited production or has contracted directly with the copyright 6owner or a person acting on the owner’s behalf and if the company has a viable plan, 7as determined by the department of tourism, for the commercial distribution of the 8finished production. AB50,708,1393. “Commercial domicile” means the location from which a trade or business 10is principally managed and directed, based on any factors the department of 11tourism determines are appropriate, including the location where the greatest 12number of employees of the trade or business work, the trade or business has its 13office or base of operations, or from which the employees are directed or controlled. AB50,709,6144. “Production expenditures” means any expenditure that is incurred in this 15state and directly used to produce an accredited production, including expenditures 16for writing, budgeting, casting, location scouts, set construction and operation, 17wardrobes, makeup, clothing accessories, photography, sound recording, sound 18synchronization, sound mixing, lighting, editing, film processing, film transferring, 19special effects, visual effects, renting or leasing facilities or equipment, renting or 20leasing motor vehicles, food, lodging, and any other similar pre-production, 21production, and post-production expenditure as determined by the department of 22tourism. “Production expenditures” includes expenditures for music that is 23performed, composed, or recorded by a musician who is a resident of this state or
1published or distributed by an entity that has its commercial domicile in this state; 2air travel that is purchased from a travel agency or company that has its commercial 3domicile in this state; and insurance that is purchased from an insurance agency or 4company that has its commercial domicile in this state. “Production expenditures” 5does not include salary or wages or expenditures for the marketing and distribution 6of an accredited production. AB50,709,97(b) Filing claims. Subject to the limitations provided in this subsection, for 8taxable years beginning after December 31, 2025, a claimant may claim as a credit 9against the tax imposed under s. 71.23 any of the following amounts: AB50,709,13101. An amount equal to 25 percent of the salary or wages paid by the claimant 11to the claimant’s employees in the taxable year for services rendered in this state to 12produce an accredited production and paid to employees who were residents of this 13state at the time that they were paid. AB50,709,15142. An amount equal to 25 percent of the production expenditures paid by the 15claimant in the taxable year to produce an accredited production. AB50,709,20163. An amount equal to the taxes imposed under ss. 77.52 and 77.53 that the 17claimant paid in the taxable year on the purchase of tangible personal property and 18taxable services that are used directly in producing an accredited production in this 19state, including all stages from the final script stage to the distribution of the 20finished production. AB50,710,221(c) Limitations. 1. No amount of the salary or wages paid under par. (b) 1. 22may be the basis for a credit under this subsection unless the salary or wages are
1paid for services rendered after December 31, 2025, and directly incurred to 2produce the accredited production. AB50,710,832. The total amount of the credits that may be claimed by a claimant under 4par. (b) 1. shall not exceed an amount equal to the first $250,000 of salary or wages 5paid to each of the claimant’s employees, as described in par. (b) 1., in the taxable 6year, not including the salary or wages paid to the claimant’s 2 highest-paid 7employees, as described in par. (b) 1., in the taxable year, if the claimant’s budgeted 8production expenditures are $1,000,000 or more.