SB970,,1818a. Software designed and developed primarily for the internal or operational purposes of an entity. SB970,,1919b. Largely static Internet sites designed primarily to provide information about a person, business, company, or firm, including Internet sites that are primarily social media, user generated videos, podcasting, interactive advertising, or journalism. SB970,,2020c. Products or services regulated under chs. 562 to 569 or any software or application primarily involving gambling or wagering. SB970,,2121d. Software or applications that contain content in violation of s. 944.21. SB970,,22224. “Eligible expenditures” means expenditures in this state directly related to qualified activities and that have economic substance and a business purpose, including all of the following: SB970,,2323a. Testing software, source code development, patches, updates, sprites, 3-dimensional models, engine development and other back-end programming activities, performance and motion capture, audio production, tool development, original scoring, and level design. SB970,,2424b. Photography, sound synchronization, lighting, and related services. SB970,,2525c. Information technology support, data analysis, and activities related to a community of users of digital interactive media or entertainment. SB970,,2626d. Leases of facilities and equipment. SB970,,2727e. Prepackaged audio files, video files, photographic files, or libraries. SB970,,2828f. Licenses to use prerecorded audio files, video files, or photographic files. SB970,,2929g. Development associated with producing audio files and video files used in the production of end products of digital interactive media or entertainment. SB970,,3030h. Accountants and lawyers whose work is directly related to qualified activities and who are licensed or otherwise authorized to practice in this state. SB970,,31315. “Eligible expenditures” does not include any of the following: SB970,,3232a. Expenditures related to marketing, promotion, or distribution. SB970,,3333b. Administrative, payroll, or management services that are not directly related to management of qualified activities. SB970,,3434c. Any expenditure that is later reimbursed by the state. SB970,,3535d. Costs related to the transfer of tax credits. SB970,,3636e. Amounts that are paid to persons as a result of their participation in profits from a digital interactive media or entertainment production. SB970,,3737f. Any reimbursement required under s. 71.748 (2). SB970,,3838g. Interest expenses for loans. SB970,,3939h. Any expenditure incurred solely to increase the amount of the credit under this subsection and that involves self-dealing or the claimant inflating prices. SB970,,4040i. Costs incurred for food or entertainment expenses not involved in qualified activities. SB970,,41416. “Qualified activities” means creating digital interactive media or entertainment, including updates, subsequent editions, new seasons, and sequels. SB970,,4242(b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2023, a claimant may claim as a credit against the tax imposed under s. 71.02 any of the following amounts: SB970,,43431. An amount equal to 30 percent of the salary or wages paid by the claimant in the taxable year to the claimant’s employees who were residents of this state at the time that they were paid for services rendered in this state to produce digital interactive media or entertainment. SB970,,44442. An amount equal to 30 percent of the eligible expenditures, other than salary or wages described in subd. 1., paid by the claimant in the taxable year. SB970,,4545(c) Limitations. 1. No credit may be allowed under this subsection unless the claimant files an application with 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. SB970,,46462. 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 interest.