SB45,728,201071.47 (3w) (cm) Inflation adjustments. For taxable years beginning after 11December 31, 2026, the dollar amounts in pars. (a) 6. b., (bd) 1. a. and b., 2., and 3., 12and (bm) 2. b. shall be increased each year by a percentage equal to the percentage 13change between the U.S. consumer price index for all urban consumers, U.S. city 14average, for the month of August of the previous year and the U.S. consumer price 15index for all urban consumers, U.S. city average, for the month of August of the year 16before the previous year, as determined by the federal department of labor. Each 17amount that is revised under this paragraph shall be rounded to the nearest 18multiple of $10 if the revised amount is not a multiple of $10 or, if the revised 19amount is a multiple of $5, such an amount shall be increased to the next higher 20multiple of $10. SB45,138221Section 1382. 71.47 (3y) (b) 6. of the statutes is amended to read: SB45,729,52271.47 (3y) (b) 6. For taxable years beginning after December 31, 2023, and 23before January 1, 2025, the amount of the investment in workforce housing, as
1defined in s. 234.66 (1) (i), for employees, not to exceed 15 percent of such 2investment, and, for taxable years beginning after December 31, 2023, the amount 3of the investment made in establishing an employee child care program for 4employees, not to exceed 15 percent of such investment, as determined by the 5Wisconsin Economic Development Corporation. SB45,13836Section 1383. 71.47 (3y) (b) 7. of the statutes is created to read: SB45,729,11771.47 (3y) (b) 7. For taxable years beginning after December 31, 2024, the 8amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for 9employees, including contributions made by the person to a 3rd party responsible 10for building or rehabilitating workforce housing, including contributions made to a 11local revolving loan fund program, not to exceed 15 percent of such investment. SB45,138412Section 1384. 71.47 (4) (ad) 4. a. of the statutes is amended to read: SB45,729,231371.47 (4) (ad) 4. a. Except as provided in subds. 5. and, 6., and 7., for taxable 14years beginning after December 31, 2014, a corporation may claim a credit against 15the tax imposed under s. 71.43, as allocated under par. (d), an amount equal to 5.75 16percent of the amount by which the corporation’s qualified research expenses for 17the taxable year exceed 50 percent of the average qualified research expenses for 18the 3 taxable years immediately preceding the taxable year for which the claimant 19claims the credit. If the corporation had no qualified research expenses in any of 20the 3 taxable years immediately preceding the taxable year for which the claimant 21claims the credit, the claimant may claim an amount equal to 2.875 percent of the 22corporation’s qualified research expenses for the taxable year for which the 23claimant claims the credit. SB45,138524Section 1385. 71.47 (4) (ad) 7. of the statutes is created to read: SB45,730,14
171.47 (4) (ad) 7. a. For taxable years beginning after December 31, 2024, an 2individual, a partner of a partnership, a shareholder of a tax-option corporation, or 3a member of a limited liability company may claim a credit against the tax imposed 4under s. 71.43, as allocated under par. (d), an amount equal to 11.5 percent of the 5amount by which the individual’s, partnership’s, tax-option corporation’s, or 6limited liability company’s qualified research expenses for the taxable year exceed 750 percent of the average qualified research expenses for the 3 taxable years 8immediately preceding the taxable year for which the claimant claims the credit. If 9the individual, partnership, tax-option corporation, or limited liability company had 10no qualified research expenses in any of the 3 taxable years immediately preceding 11the taxable year for which the claimant claims the credit, the claimant may claim 12an amount equal to 5.75 percent of the individual’s, partnership’s, tax-option 13corporation’s, or limited liability company’s qualified research expenses for the 14taxable year for which the claimant claims the credit. SB45,730,2215b. For purposes of subd. 7. a., “qualified research expenses” means qualified 16research expenses as defined in section 41 of the Internal Revenue Code, except 17that “qualified research expenses” includes only expenses incurred by the 18individual, partnership, tax-option corporation, or limited liability company for 19research related to nuclear power, incurred for research conducted in this state, for 20the taxable year and does not include compensation used in computing the credit 21under sub. (1dx). Section 41 (f) (1), (2), (5), and (6) and (h) of the Internal Revenue 22Code does not apply to the credit under this subdivision. SB45,138623Section 1386. 71.47 (4) (k) (intro.) of the statutes is amended to read: SB45,731,32471.47 (4) (k) Refunds. (intro.) Notwithstanding par. (f), for taxable years
1beginning after December 31, 2017, if the allowable amount of the claim under par. 2(ad) 4., 5., or 6., or 7. exceeds the tax otherwise due under s. 71.43, all of the 3following apply: SB45,13874Section 1387. 71.47 (4) (k) 1. c. of the statutes is amended to read: SB45,731,10571.47 (4) (k) 1. c. For taxable years beginning after December 31, 2023, the 6amount of the claim not used to offset the tax due, not to exceed 25 percent of the 7allowable amount of the claim under par. (ad) 4., 5., or 6., or 7., shall be certified by 8the department of revenue to the department of administration for payment by 9check, share draft, or other draft drawn from the appropriation account under s. 1020.835 (2) (d). SB45,138811Section 1388. 71.47 (5f) of the statutes is created to read: SB45,731,131271.47 (5f) Film production services credit. (a) Definitions. In this 13subsection: SB45,731,20141. “Accredited production” means a film, video, broadcast advertisement, or 15television production, as approved by the department of tourism, for which the 16aggregate salary and wages included in the cost of the production for the period 17ending 12 months after the month in which the principal filming or taping of the 18production begins exceeds $100,000 for a production that is 30 minutes or longer or 19$50,000 for a production that is less than 30 minutes. “Accredited production” does 20not include any of the following, regardless of the production costs: SB45,731,2221a. News, current events, or public programming or a program that includes 22weather or market reports. SB45,731,2323b. A talk show. SB45,731,2424c. A production with respect to a questionnaire or contest. SB45,732,1
1d. A sports event or sports activity. SB45,732,22e. A gala presentation or awards show. SB45,732,33f. A finished production that solicits funds. SB45,732,64g. A production for which the production company is required under 18 USC 52257 to maintain records with respect to a performer portrayed in a single media or 6multimedia program. SB45,732,87h. A production produced primarily for industrial, corporate, or institutional 8purposes. SB45,732,1492. “Claimant” means a film production company, as defined in sub. (5h) (a) 2., 10that operates an accredited production in this state, if the company owns the 11copyright in the accredited production or has contracted directly with the copyright 12owner or a person acting on the owner’s behalf and if the company has a viable plan, 13as determined by the department of tourism, for the commercial distribution of the 14finished production. SB45,732,19153. “Commercial domicile” means the location from which a trade or business 16is principally managed and directed, based on any factors the department of 17tourism determines are appropriate, including the location where the greatest 18number of employees of the trade or business work, the trade or business has its 19office or base of operations, or from which the employees are directed or controlled. SB45,733,12204. “Production expenditures” means any expenditure that is incurred in this 21state and directly used to produce an accredited production, including expenditures 22for writing, budgeting, casting, location scouts, set construction and operation, 23wardrobes, makeup, clothing accessories, photography, sound recording, sound
1synchronization, sound mixing, lighting, editing, film processing, film transferring, 2special effects, visual effects, renting or leasing facilities or equipment, renting or 3leasing motor vehicles, food, lodging, and any other similar pre-production, 4production, and post-production expenditure as determined by the department of 5tourism. “Production expenditures” includes expenditures for music that is 6performed, composed, or recorded by a musician who is a resident of this state or 7published or distributed by an entity that has its commercial domicile in this state; 8air travel that is purchased from a travel agency or company that has its commercial 9domicile in this state; and insurance that is purchased from an insurance agency or 10company that has its commercial domicile in this state. “Production expenditures” 11does not include salary or wages or expenditures for the marketing and distribution 12of an accredited production. SB45,733,1513(b) Filing claims. Subject to the limitations provided in this subsection, for 14taxable years beginning after December 31, 2025, a claimant may claim as a credit 15against the tax imposed under s. 71.43 any of the following amounts: