(1) Claim of right credit. Any natural person may credit against taxes otherwise due under this chapter the decrease in tax under this chapter for the prior taxable year that would be attributable to subtracting income taxed for that year under the claim of right doctrine but repaid, as calculated under section 1341 of the internal revenue code, if the income repaid is greater than $3,000 and the amount is not subtracted in computing Wisconsin adjusted gross income or used in computing the credit under sub. (5) (a). If the allowable amount of the claim exceeds the claimant’s taxes due under this chapter the amount of the claim not used to offset those taxes shall be certified to the department of administration for payment to the claimant by check, share draft or other draft drawn on the general fund.
(2dm) Development zone capital investment credit.
(a) In this subsection:
1. “Certified” means entitled under s. 238.395 (3) (a) 4. or s. 560.795 (3) (a) 4., 2009 stats., [s. 560.795 (3) (a) 4., 2009 stats., or s. 238.395 (3) (a) 4., 2023 stats.,] to claim tax benefits or certified under s. 238.395 (5) or 238.398 (5) or s. 560.795 (5), 2009 stats., or s. 560.798 (3), 2009 stats. [s. 560.795 (5), 2009 stats., s. 560.798 (3), 2009 stats., s. 238.395 (5), 2023 stats., or s. 238.398 (5), 2023 stats.].
2. “Claimant” means a person who files a claim under this subsection.
3. “Development zone” means a development opportunity zone under s. 238.395 (1) (e) and (f) or 238.398 or s. 560.795 (1) (e) and (f), 2009 stats., or s. 560.798, 2009 stats. [s. 560.795 (1) (e) and (f), 2009 stats., s. 560.798, 2009 stats., s. 238.395 (1) (e) and (f), 2023 stats., or s. 238.398, 2023 stats.].
4. “Previously owned property” means real property that the claimant or a related person owned during the 2 years prior to the department of commerce or the Wisconsin Economic Development Corporation designating the place where the property is located as a development zone and for which the claimant may not deduct a loss from the sale of the property to, or an exchange of the property with, the related person under section 267 of the Internal Revenue Code, except that section 267 (b) of the Internal Revenue Code is modified so that if the claimant owns any part of the property, rather than 50 percent ownership, the claimant is subject to section 267 (a) (1) of the Internal Revenue Code for purposes of this subsection.
(b) Subject to the limitations provided in this subsection and in s. 73.03 (35), for any taxable year for which the claimant is certified, a claimant may claim as a credit against the taxes imposed under s. 71.02 an amount that is equal to 3 percent of the following:
1. The purchase price of depreciable, tangible personal property.
2. The amount expended to acquire, construct, rehabilitate, remodel, or repair real property in a development zone.
(c) A claimant may claim the credit under par. (b) 1., if the tangible personal property is purchased after the claimant is certified and the personal property is used for at least 50 percent of its use in the claimant’s business at a location in a development zone or, if the property is mobile, the property’s base of operations for at least 50 percent of its use is at a location in a development zone.
(d) A claimant may claim the credit under par. (b) 2. for an amount expended to construct, rehabilitate, remodel, or repair real property, if the claimant began the physical work of construction, rehabilitation, remodeling, or repair, or any demolition or destruction in preparation for the physical work, after the place where the property is located was designated a development zone, or if the completed project is placed in service after the claimant is certified. In this paragraph, “physical work” does not include preliminary activities such as planning, designing, securing financing, researching, developing specifications, or stabilizing the property to prevent deterioration.
(e) A claimant may claim the credit under par. (b) 2. for an amount expended to acquire real property, if the property is not previously owned property and if the claimant acquires the property after the place where the property is located was designated a development zone, or if the completed project is placed in service after the claimant is certified.
(f) No credit may be allowed under this subsection unless the claimant includes with the claimant’s return:
1. A copy of the verification that the claimant may claim tax benefits under s. 238.395 (3) (a) 4. or s. 560.795 (3) (a) 4., 2009 stats., [s. 560.795 (3) (a) 4., 2009 stats., or s. 238.395 (3) (a) 4., 2023 stats.,] or is certified under s. 238.395 (5) or 238.398 (3) or s. 560.795 (5), 2009 stats., or s. 560.798 (3), 2009 stats. [s. 560.795 (5), 2009 stats., s. 560.798 (3), 2009 stats., s. 238.395 (5), 2023 stats., or s. 238.398 (3), 2023 stats.].
2. A statement from the department of commerce or the Wisconsin Economic Development Corporation verifying the purchase price of the investment and verifying that the investment fulfills the requirements under par. (b).
(g) In calculating the credit under par. (b) a claimant shall reduce the amount expended to acquire property by a percentage equal to the percentage of the area of the real property not used for the purposes for which the claimant is certified and shall reduce the amount expended for other purposes by the amount expended on the part of the property not used for the purposes for which the claimant is certified.
(h) The carry-over provisions of s. 71.28 (5b) (e) and (f) as they relate to the credit under s. 71.28 (5b) relate to the credit under this subsection.
(hm) A claimant may claim the credit under this subsection, including any credits carried over, against the amount of the tax otherwise due under this subchapter.
(i) Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, that credit shall be determined on the basis of their economic activity, not that of their shareholders, partners, or members. The corporation, partnership, or limited liability company shall compute the amount of credit that may be claimed by each of its shareholders, partners, or members and provide that information to its shareholders, partners, or members. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit based on the partnership’s, company’s, or corporation’s activities in proportion to their ownership interest and may offset it against the tax attributable to their income from the partnership’s, company’s, or corporation’s business operations in the development zone; except that partners, members, and shareholders in a development zone under s. 238.395 (1) (e) or s. 560.795 (1) (e), 2009 stats., [s. 560.795 (1) (e), 2009 stats., or s. 238.395 (1) (e), 2023 stats.,] may offset the credit against the amount of the tax attributable to their income.
(j) If a person who is entitled under s. 238.395 (3) (a) 4. or s. 560.795 (3) (a) 4., 2009 stats., [s. 560.795 (3) (a) 4., 2009 stats., or s. 238.395 (3) (a) 4., 2023 stats.,] to claim tax benefits becomes ineligible for such tax benefits, or if a person’s certification under s. 238.395 (5) or 238.398 (3) or s. 560.795 (5), 2009 stats., or s. 560.798 (3), 2009 stats., [s. 560.795 (5), 2009 stats., s. 560.798 (3), 2009 stats., s. 238.395 (5), 2023 stats., or s. 238.398 (3), 2023 stats.,] is revoked, that person may claim no credits under this subsection for the taxable year that includes the day on which the person becomes ineligible for tax benefits, the taxable year that includes the day on which the certification is revoked, or succeeding taxable years, and that person may carry over no unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which the person becomes ineligible for tax benefits, the taxable year that includes the day on which the certification is revoked, or succeeding taxable years.
(k) If a person who is entitled under s. 238.395 (3) (a) 4. or s. 560.795 (3) (a) 4., 2009 stats., [s. 560.795 (3) (a) 4., 2009 stats., or s. 238.395 (3) (a) 4., 2023 stats.,] to claim tax benefits or certified under s. 238.395 (5) or 238.398 (3) or s. 560.795 (5), 2009 stats., or s. 560.798 (3), 2009 stats., [s. 560.795 (5), 2009 stats., s. 560.798 (3), 2009 stats., s. 238.395 (5), 2023 stats., or s. 238.398 (3), 2023 stats.,] ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.
(L) Section 71.28 (4) (g) and (h) as it applies to the credit under s. 71.28 (4) applies to the credit under this subsection.
(2dx) Development zones credit.
(a) Definitions. In this subsection:
1. “Brownfield” means an industrial or commercial facility the expansion or redevelopment of which is complicated by environmental contamination.
2. “Development zone” means a development zone under s. 238.30 or s. 560.70, 2009 stats., a development opportunity zone under s. 238.395 or s. 560.795, 2009 stats., [s. 560.795, 2009 stats., or s. 238.395, 2023 stats.,] an enterprise development zone under s. 238.397 or s. 560.797, 2009 stats., [s. 560.797, 2009 stats., or s. 238.397, 2023 stats.,] or an agricultural development zone under s. 238.398 or s. 560.798, 2009 stats. [s. 560.798, 2009 stats., or s. 238.398, 2023 stats.]
3. “Environmental remediation” means removal or containment of environmental pollution, as defined in s. 299.01 (4), and restoration of soil or groundwater that is affected by environmental pollution, as defined in s. 299.01 (4), in a brownfield if that removal, containment or restoration fulfills the requirement under s. 71.07 (2de) (a) 1., 2013 stats., and investigation unless the investigation determines that remediation is required and that remediation is not undertaken.
4. “Full-time job” has the meaning given in s. 238.30 (2m).
5. “Member of a targeted group” means a person who resides in an area designated by the federal government as an economic revitalization area, a person who is employed in an unsubsidized job but meets the eligibility requirements under s. 49.145 (2) and (3) for a Wisconsin Works employment position, a person who is employed in a trial job, as defined in s. 49.141 (1) (n), 2011 stats., or in a trial employment match program job, as defined in s. 49.141 (1) (n), a person who is eligible for child care assistance under s. 49.155, a person who is a vocational rehabilitation referral, an economically disadvantaged youth, an economically disadvantaged veteran, a supplemental security income recipient, a general assistance recipient, an economically disadvantaged ex-convict, a qualified summer youth employee, as defined in 26 USC 51 (d) (7), a dislocated worker, as defined in 29 USC 2801 (9), or a food stamp recipient, if the person has been certified in the manner under s. 71.07 (2dj) (am) 3., 2013 stats., by a designated local agency, as defined in s. 71.07 (2dj) (am) 2., 2013 stats.
(b) Credit. Except as provided in pars. (be) and (bg) and in s. 73.03 (35), and subject to s. 238.385 or s. 560.785, 2009 stats., [s. 560.785, 2009 stats., or s. 238.385, 2023 stats.,] for any taxable year for which the person is entitled under s. 238.395 (3) or s. 560.795 (3), 2009 stats., [s. 560.795 (3), 2009 stats., or s. 238.395 (3), 2023 stats.,] to claim tax benefits or certified under s. 238.365 (3), 238.397 (4), or 238.398 (3) or s. 560.765 (3), 2009 stats., s. 560.797 (4), 2009 stats., or s. 560.798 (3), 2009 stats., [s. 560.765 (3), 2009 stats., s. 560.797 (4), 2009 stats., s. 560.798 (3), 2009 stats., s. 238.365 (3), 2023 stats., s. 238.397 (4), 2023 stats., or s. 238.398 (3), 2023 stats.,] any person may claim as a credit against the taxes otherwise due under this chapter the following amounts:
1. Fifty percent of the amount expended for environmental remediation in a development zone.
2. The amount determined by multiplying the amount determined under s. 238.385 (1) (b) or s. 560.785 (1) (b), 2009 stats., [s. 560.785 (1) (b), 2009 stats., or s. 238.385 (1) (b), 2023 stats.,] by the number of full-time jobs created in a development zone and filled by a member of a targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) for those jobs.
3. The amount determined by multiplying the amount determined under s. 238.385 (1) (c) or s. 560.785 (1) (c), 2009 stats., [s. 560.785 (1) (c), 2009 stats., or s. 238.385 (1) (c), 2023 stats.,] by the number of full-time jobs created in a development zone and not filled by a member of a targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) for those jobs.
4. The amount determined by multiplying the amount determined under s. 238.385 (1) (bm) or s. 560.785 (1) (bm), 2009 stats., [s. 560.785 (1) (bm), 2009 stats., or s. 238.385 (1) (bm), 2023 stats.,] by the number of full-time jobs retained, as provided in the rules under s. 238.385 or s. 560.785, 2009 stats., [s. 560.785, 2009 stats., or s. 238.385, 2023 stats.,] in an enterprise development zone under s. 238.397 or s. 560.797, 2009 stats., [s. 560.797, 2009 stats., or s. 238.397, 2023 stats.,] and for which significant capital investment was made and by then subtracting the subsidies paid under s. 49.147 (3) (a) for those jobs.
5. The amount determined by multiplying the amount determined under s. 238.385 (1) (c) or s. 560.785 (1) (c), 2009 stats., [s. 560.785 (1) (c), 2009 stats., or s. 238.385 (1) (c), 2023 stats.,] by the number of full-time jobs retained, as provided in the rules under s. 238.385 or s. 560.785, 2009 stats., [s. 560.785, 2009 stats., or s. 238.385, 2023 stats.,] in a development zone and not filled by a member of a targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) for those jobs.
(be) Offset. A claimant in a development zone under s. 238.395 (1) (e) or s. 560.795 (1) (e), 2009 stats., [s. 560.795 (1) (e), 2009 stats., or s. 238.395 (1) (e), 2023 stats.,] may offset any credits claimed under this subsection, including any credits carried over, against the amount of the tax otherwise due under this subchapter attributable to all of the claimant’s income and against the tax attributable to income from directly related business operations of the claimant.
(bg) Other entities. For claimants in a development zone under s. 238.395 (1) (e) or s. 560.795 (1) (e), 2009 stats., [s. 560.795 (1) (e), 2009 stats., or s. 238.395 (1) (e), 2023 stats.,] partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and amount of, that credit shall be determined on the basis of their economic activity, not that of their shareholders, partners, or members. The corporation, partnership, or company shall compute the amount of the credit that may be claimed by each of its shareholders, partners, or members and shall provide that information to each of its shareholders, partners, or members. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit based on the partnership’s, company’s, or corporation’s activities in proportion to their ownership interest and may offset it against the tax attributable to their income.
(c) Credit precluded. If the certification of a person for tax benefits under s. 238.365 (3), 238.397 (4), or 238.398 (3) or s. 560.765 (3), 2009 stats., s. 560.797 (4), 2009 stats., or s. 560.798 (3), 2009 stats., [s. 560.765 (3), 2009 stats., s. 560.797 (4), 2009 stats., s. 560.798 (3), 2009 stats., s. 238.365 (3), 2023 stats., s. 238.397 (4), 2023 stats., or s. 238.398 (3), 2023 stats.,] is revoked, or if the person becomes ineligible for tax benefits under s. 238.395 (3) or s. 560.795 (3), 2009 stats., [s. 560.795 (3), 2009 stats., or s. 238.395 (3), 2023 stats.,] that person may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years and that person may not carry over unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years.
(d) Carry-over precluded. If a person who is entitled under s. 238.395 (3) or s. 560.795 (3), 2009 stats., [s. 560.795 (3), 2009 stats., or s. 238.395 (3), 2023 stats.,] to claim tax benefits or certified under s. 238.365 (3), 238.397 (4), or 238.398 (3) or s. 560.765 (3), 2009 stats., s. 560.797 (4), 2009 stats., or s. 560.798 (3), 2009 stats., [s. 560.765 (3), 2009 stats., s. 560.797 (4), 2009 stats., s. 560.798 (3), 2009 stats., s. 238.365 (3), 2023 stats., s. 238.397 (4), 2023 stats., or s. 238.398 (3), 2023 stats.,] for tax benefits ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.
(e) Administration.
1. Section 71.28 (5b) (e) to (h), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection. Claimants shall include with their returns a copy of their certification for tax benefits and a copy of the department of commerce’s verification of their expenses.
2. The credit under this subsection may not be claimed by partnerships, limited liability companies, and tax-option corporations but the eligibility for, and the amount of, that credit shall be determined on the basis of their economic activity, not that of their shareholders, partners, or members. The corporation, partnership, or limited liability company shall compute the amount of credit that may be claimed by each of its shareholders, partners, or members and shall provide that information to each of its shareholders, partners, or members. That credit may be claimed by partners, members of limited liability companies, and shareholders of tax-option corporations in proportion to their ownership interests.
(2dy) Economic development tax credit.
(a) Definition. In this subsection, “claimant” means a person who files a claim under this subsection and is certified under s. 238.301 (2) or s. 560.701 (2), 2009 stats., [s. 560.701 (2), 2009 stats., or s. 238.301 (2), 2023 stats.,] and authorized to claim tax benefits under s. 238.303 or s. 560.703, 2009 stats. [s. 560.703, 2009 stats., or s. 238.303, 2023 stats.].
(b) Filing claims. Subject to the limitations under this subsection and ss. 238.301 to 238.306 or ss. 560.701 to 560.706, 2009 stats., [ss. 560.701 to 560.706, 2009 stats., or s. 238.301, 2023 stats., s. 238.302, 2023 stats., s. 238.303, 2023 stats., s. 238.304, 2023 stats., s. 238.3045, 2023 stats., s. 238.305, 2023 stats., and s. 238.306, 2023 stats.,] for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of the tax, the amount authorized for the claimant under s. 238.303 or s. 560.703, 2009 stats. [s. 560.703, 2009 stats., or s. 238.303, 2023 stats.].
(c) Limitations.
1. No credit may be allowed under this subsection unless the claimant includes with the claimant’s return a copy of the claimant’s certification under s. 238.301 (2) or s. 560.701 (2), 2009 stats. [s. 560.701 (2), 2009 stats., or s. 238.301 (2), 2023 stats.], and a copy of the claimant’s notice of eligibility to receive tax benefits under s. 238.303 (3) or s. 560.703 (3), 2009 stats. [s. 560.703 (3), 2009 stats., or s. 238.303 (3), 2023 stats.].
2. 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 authorization to claim tax benefits under s. 238.303 or s. 560.703, 2009 stats.[s. 560.703, 2009 stats., or s. 238.303, 2023 stats.] 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.
(d) Administration.
1. Except as provided in subd. 2., s. 71.28 (5b) (e) and (f), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.
2. If a claimant’s certification is revoked under s. 238.305 or s. 560.705, 2009 stats., [s. 560.705, 2009 stats., or s. 238.305, 2023 stats.,] or if a claimant becomes ineligible for tax benefits under s. 238.302 or s. 560.702, 2009 stats., [s. 560.702, 2009 stats., or s. 238.302, 2023 stats.,] the claimant may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the claimant becomes ineligible for tax benefits; or succeeding taxable years and the claimant may not carry over unused credits from previous years to offset the tax imposed under s. 71.02 for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the claimant becomes ineligible for tax benefits; or succeeding taxable years.
3. Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.
(3) Farmland preservation credit. The farmland preservation credit under subch. IX may be claimed against taxes otherwise due.
(3g) Technology zones credit.
(a) Subject to the limitations under this subsection and s. 73.03 (35m) and s. 238.23, 2023 stats., and s. 560.96, 2009 stats., a business that is certified under s. 238.23 (3), 2023 stats., or s. 560.96 (3), 2009 stats., may claim as a credit against the taxes imposed under s. 71.02 an amount equal to the sum of the following, as established under s. 238.23 (3) (c), 2023 stats., or s. 560.96 (3) (c), 2009 stats.:
1. The amount of real and personal property taxes imposed under s. 70.01 that the business paid in the taxable year.
2. Ten percent of the following amounts of capital investments that are made by the business in the technology zone in the year to which the claim relates:
a. The purchase price of depreciable, tangible personal property.
b. The amount expended to acquire, construct, rehabilitate, remodel, or repair real property in a technology zone.
3. Fifteen percent of the amount that is spent for the first 12 months of wages for each job that is created in a technology zone after certification.
(b) The department of revenue shall notify the department of commerce or the Wisconsin Economic Development Corporation of all claims under this subsection.
(c) Section 71.28 (5b) (e), (f), (g), and (h), as it applies to the credit under s. 71.28 (5b), applies to the credit under par. (a).
(d) 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. (a). 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.
(e)
1. No amount described under par. (a) 2. may be used in the calculation of a credit under this subsection if that amount is used in the calculation of any other credit under this chapter.
2. The investments that relate to the amount described under par. (a) 2. for which a claimant makes a claim under this subsection must be retained for use in the technology zone for the period during which the claimant’s business is certified under s. 238.23 (3) or s. 560.96 (3), 2009 stats. [s. 560.96 (3), 2009 stats., or s. 238.23 (3), 2023 stats.].
(f) No credit may be allowed under this subsection unless the claimant includes with the claimant’s return:
1. A copy of the verification that the claimant’s business is certified under s. 238.23 (3) or s. 560.96 (3), 2009 stats., [s. 560.96 (3), 2009 stats., or s. 238.23 (3), 2023 stats.,] and that the business has entered into an agreement under s. 238.23 (3) (d) or s. 560.96 (3) (d), 2009 stats. [s. 560.96 (3) (d), 2009 stats., or s. 238.23 (3) (d), 2023 stats.].
2. A statement from the department of commerce or the Wisconsin Economic Development Corporation verifying the purchase price of the investment described under par. (a) 2. and verifying that the investment fulfills the requirement under par. (e) 2.
(3h) Biodiesel fuel production credit.
(a) Definitions. In this subsection:
1. “Biodiesel fuel” has the meaning given in s. 168.14 (2m) (a).
2. “Claimant” means a person who is engaged in the business of producing biodiesel fuel in this state and who files a claim under this subsection.
(b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2011, and before January 1, 2014, for a claimant who produces at least 2,500,000 gallons of biodiesel fuel in this state in the taxable year, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of the tax, an amount that is equal to the number of gallons of biodiesel fuel produced by the claimant in this state in the taxable year multiplied by 10 cents.
(c) Limitations.
1. The maximum amount of the credit that a claimant may claim under this subsection in a taxable year is $1,000,000.
2. 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 biodiesel fuel production, as 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.
(d) Administration.
1. Section 71.28 (5b) (e) to (h) as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.
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.
(3n) Dairy and livestock farm investment credit.
(a) In this subsection:
1. “Claimant” means a person who files a claim under this subsection.
1m. “Dairy animals” includes heifers raised as replacement dairy animals.
1p. “Dairy farm” includes a facility used to raise heifers as replacement dairy animals.
2. “Dairy farm modernization or expansion” means the construction, the improvement, or the acquisition of buildings or facilities, or the acquisition of equipment, for dairy animal housing, confinement, animal feeding, milk production, or waste management, including the following, if used exclusively related to dairy animals and if acquired and placed in service in this state during taxable years that begin after December 31, 2003, and before January 1, 2014:
a. Freestall barns.
b. Fences.
c. Watering facilities.
d. Feed storage and handling equipment.
e. Milking parlors.
f. Robotic equipment.
g. Scales.
h. Milk storage and cooling facilities.
i. Bulk tanks.
j. Manure pumping and storage facilities.
k. Digesters.
L. Equipment used to produce energy.
4. “Livestock” means cattle, not including dairy animals; swine; poultry, including farm-raised pheasants, but not including other farm-raised game birds or ratites; fish that are raised in aquaculture facilities; sheep; and goats.
5. “Livestock farm modernization or expansion” means the construction, the improvement, or the acquisition of buildings or facilities, or the acquisition of equipment, for livestock housing, confinement, feeding, or waste management, including the following, if used exclusively related to livestock and if acquired and placed in service in this state during taxable years that begin after December 31, 2005, and before January 1, 2014:
a. Birthing structures.
b. Rearing structures.
c. Feedlot structures.
d. Feed storage and handling equipment.
e. Fences.
f. Watering facilities.
g. Scales.
h. Manure pumping and storage facilities.
i. Digesters.
j. Equipment used to produce energy.
k. Fish hatchery buildings.
L. Fish processing buildings.
m. Fish rearing ponds.
6.
a. For taxable years that begin after December 31, 2003, and before January 1, 2006, “used exclusively,” related to dairy animals, means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.
b. For taxable years that begin after December 31, 2005, and before January 1, 2014, “used exclusively,” related to livestock, dairy animals, or both, means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.
(b)
1. Subject to the limitations provided in this subsection, for taxable years that begin after December 31, 2003, and before January 1, 2014, a claimant may claim as a credit against the tax imposed under s. 71.02 an amount equal to 10 percent of the amount the claimant paid in the taxable year for dairy farm modernization or expansion related to the operation of the claimant’s dairy farm.
2. Subject to the limitations provided in this subsection, for taxable years that begin after December 31, 2005, and before January 1, 2014, a claimant may claim as a credit against the tax imposed under s. 71.02 an amount equal to 10 percent of the amount the claimant paid in the taxable year for livestock farm modernization or expansion related to the operation of the claimant’s livestock farm.
(c) No credit may be allowed under this subsection for any amount that the claimant paid for expenses described under par. (b) that the claimant also claimed as a deduction under section 162 of the Internal Revenue Code.
(d) The aggregate amount of credits that a claimant may claim under this subsection is $75,000, except that no more than $50,000 of this amount may be based on costs incurred prior to May 27, 2010.
(e)
1. 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 expenses under par. (b), except that the aggregate amount of credits that the entity may compute shall not exceed the limitation under par. (d). 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.
2. If 2 or more persons own and operate the dairy or livestock farm, each person may claim a credit under par. (b) in proportion to his or her ownership interest, except that the aggregate amount of the credits claimed by all persons who own and operate the farm shall not exceed the limitation under par. (d).
(f) Section 71.28 (5b) (e), (f), (g), and (h), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.
(g) 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.
(3q) Jobs tax credit.
(a) Definitions. In this subsection:
1. “Claimant” means a person certified to receive tax benefits under s. 238.16 (2) or s. 560.2055 (2), 2009 stats.
2. “Eligible employee” means, for taxable years beginning before January 1, 2011, an eligible employee under s. 560.2055 (1) (b), 2009 stats., who satisfies the wage requirements under s. 560.2055 (3) (a) or (b), 2009 stats., or, for taxable years beginning after December 31, 2010, an eligible employee under s. 238.16 (1) (b) who satisfies the wage requirements under s. 238.16 (3) (a) or (b).
(b) Filing claims. Subject to the limitations provided in this subsection and s. 238.16 or s. 560.2055, 2009 stats., for taxable years beginning after December 31, 2009, a claimant may claim as a credit against the taxes imposed under s. 71.02 any of the following:
1. The amount of wages that the claimant paid to an eligible employee in the taxable year, not to exceed 10 percent of such wages, as determined by the Wisconsin Economic Development Corporation under s. 238.16 or the department of commerce under s. 560.2055, 2009 stats.
2. The amount of the costs incurred by the claimant in the taxable year, as determined under s. 238.16 or s. 560.2055, 2009 stats., to undertake the training activities described under s. 238.16 (3) (c) or s. 560.2055 (3) (c), 2009 stats.
(c) Limitations.
1.
a. Except as provided in subd. 1. b., 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.
b. For taxable years beginning after December 31, 2020, partnerships, limited liability companies, and tax-option corporations may elect to claim the credit under this subsection, if the credit results from a contract entered into with the Wisconsin Economic Development Corporation before December 22, 2017. A partnership, limited liability company, or tax-option corporation that wishes to make the election under this subd. 1. b. shall make the election for each taxable year on its original return and cannot subsequently make or revoke the election. If a partnership, limited liability company, or tax-option corporation elects to claim the credit under this subsection, the partners, members, and shareholders cannot claim the credit under this subsection. The credit cannot be claimed under this subd. 1. b. if one or more partners, members, or shareholders have claimed the credit under this subsection for the same taxable year for which the credit is claimed under this subd. 1. b.
2. No credit may be allowed under this subsection unless the claimant includes with the claimant’s return a copy of the claimant’s certification for tax benefits under s. 238.16 (2) or s. 560.2055 (2), 2009 stats.
3. The maximum amount of credits that may be awarded under this subsection and ss. 71.28 (3q) and 71.47 (3q) for the period beginning on January 1, 2010, and ending on June 30, 2013, is $14,500,000, not including the amount of any credits reallocated under s. 238.15 (3) (d), 2015 stats., or s. 560.205 (3) (d), 2009 stats.
(d) Administration.
1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.
2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.02, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (bb), except that the amounts certified under this subdivision for taxable years beginning after December 31, 2009, and before January 1, 2012, shall be paid in taxable years beginning after December 31, 2011. Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subdivision.
(3s) Manufacturing sales tax credit.
(a) In this subsection:
1. “Manufacturing” has the meaning given in s. 77.54 (6m), 2007 stats.
2. “Sales and use tax under ch. 77 paid by the person” includes use taxes paid directly by the person and sales and use taxes paid by the person’s supplier and passed on to the person whether separately stated on the invoice or included in the total price.
(b) The tax imposed under s. 71.02 shall be reduced by an amount equal to the sales and use tax under ch. 77 paid by the person in such taxable year on fuel and electricity consumed in manufacturing tangible personal property in this state. Shareholders in a tax-option corporation and partners may claim the credit under this subsection, based on eligible sales and use taxes paid by the partnership or tax-option corporation, in proportion to the ownership interest of each partner or shareholder. The partnership or tax-option corporation shall calculate the amount of the credit which may be claimed by each partner or shareholder and shall provide that information to the partner or shareholder.
(c)
1. The credit under par. (b), including any credits carried over, may be offset only against the amount of the tax imposed upon or measured by the business operations of the claimant in which the fuel and electricity are consumed. Except as provided in subd. 7., if the credit computed is not entirely offset against taxes otherwise due, the unused balance shall be carried forward and credited against taxes otherwise due for the following 20 taxable years to the extent not offset by taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.
2. For shareholders in a tax-option corporation, the credit may be offset only against the tax imposed on the shareholder’s prorated share of the tax-option corporation’s income.
3. For partners, the credit may be offset only against the tax imposed on the partner’s distributive share of partnership income.
4. If a tax-option corporation becomes liable for tax for a taxable year that begins on or after January 1, 1998, the corporation may offset the credit against the tax due, with any remaining credit computed for a taxable year that begins on or after January 1, 1998, passing through to the shareholders.
5. If a corporation that is not a tax-option corporation has a carry-over credit from a taxable year that begins on or after January 1, 1998, and becomes a tax-option corporation before the credit carried over is used, the unused portion of the credit may be used by the tax-option corporation’s shareholders on a prorated basis.
6. If the shareholders of a tax-option corporation have carry-over credits and the corporation becomes a corporation other than a tax-option corporation after October 14, 1997, and before the credits carried over are used, the unused portion of the credits may be used by the corporation that is not a tax-option corporation.
7. No credit may be claimed under this subsection for taxable years that begin after December 31, 2005. For credits that are claimed but unused under this subsection for taxable years that begin before January 1, 2006, up to 50 percent may be used in each of the following 2 taxable years if the taxpayer has $25,000 or less in unused credits as of January 1, 2006. For taxable years beginning after December 31, 2005, and before January 1, 2008, a taxpayer who has more than $25,000 in unused credits as of January 1, 2006, may deduct an amount in each year that is equal to 50 percent of the amount the taxpayer added back to income under s. 71.05 (6) (a) at the time that the taxpayer first claimed the credit or, with regard to credits passed through from a partnership, limited liability company, or tax-option corporation, 50 percent of the amount that the entity added back to its income and was included in the partner’s, member’s, or shareholder’s Wisconsin net income at the time that the credit was first claimed.
(3t) Manufacturing investment credit.
(a) Definition. In this subsection, “claimant” means a person who files a claim under this subsection.
(b) Credit. Subject to the limitations provided in this subsection and in s. 560.28, 2009 stats., for taxable years beginning after December 31, 2007, a claimant may claim as a credit, amortized over 15 taxable years starting with the taxable year beginning after December 31, 2007, against the tax imposed under s. 71.02, up to the amount of the tax, an amount equal to the claimant’s unused credits under s. 71.07 (3s).
(c) Limitations.
1. No credit may be claimed under this subsection unless the claimant submits with the claimant’s return a copy of the claimant’s certification by the department of commerce under s. 560.28, 2009 stats., except that, with regard to credits claimed by partners of a partnership, members of a limited liability company, or shareholders of a tax-option corporation, the entity shall provide a copy of its certification under s. 560.28, 2009 stats., to the partner, member, or shareholder to submit with his or her return.
2. 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 the amount of their unused credits under s. 71.07 (3s). 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.
(d) Administration.
1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.
2. The amount of any unused credit under this subsection in any taxable year may be carried forward to subsequent taxable years, up to 15 taxable years.
(3w) Enterprise zone jobs credit.
(a) Definitions. In this subsection:
1.
a. For taxable years beginning before January 1, 2024, “base year” means the taxable year beginning during the calendar year prior to the calendar year in which the enterprise zone in which the claimant is located takes effect.
b. For taxable years beginning after December 31, 2023, “base year” means the 12-month period immediately preceding the date on which the claimant is certified under s. 238.399 (5).
2. “Claimant” means a person who is certified to claim tax benefits under s. 238.399 (5) or s. 560.799 (5), 2009 stats., and who files a claim under this subsection.
3.
a. For taxable years beginning before January 1, 2024, “full-time employee” means a full-time employee, as defined in s. 238.399 (1) (am) or s. 560.799 (1) (am), 2009 stats.
b. For taxable years beginning after December 31, 2023, “full-time employee” means a full-time employee, as defined in s. 238.399 (1) (ar).
4. “Enterprise zone” means a zone designated under s. 238.399 or s. 560.799, 2009 stats.
5. “State payroll” means the amount of payroll apportioned to this state, as determined under s. 71.04 (6), 2023 stats.
5d. “Tier I county or municipality” means a tier I county or municipality, as determined under s. 238.399 or s. 560.799, 2009 stats.
5e. “Tier II county or municipality” means a tier II county or municipality, as determined under s. 238.399 or s. 560.799, 2009 stats.
5m. “Wages” means wages under section 3306 (b) of the Internal Revenue Code, determined without regard to any dollar limitations.
6. “Zone payroll” means the amount of state payroll that is attributable to wages paid to full-time employees based in an enterprise zone. “Zone payroll” does not include the amount of wages paid to any full-time employees that exceeds $100,000.
(b) Filing claims; payroll. Subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.02 an amount calculated as follows:
1. Determine the amount that is the lesser of:
a. The number of full-time employees whose annual wages are greater than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year, minus the number of full-time employees whose annual wages were greater than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the area that comprises the enterprise zone in the base year.
b. The number of full-time employees whose annual wages are greater than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the state in the taxable year, minus the number of full-time employees whose annual wages were greater than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the state in the base year.
2. Determine the claimant’s average zone payroll by dividing total wages for full-time employees whose annual wages are greater than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year by the number of full-time employees whose annual wages are greater than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year.
3. For employees in a tier I county or municipality, subtract the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage from the amount determined under subd. 2. and for employees in a tier II county or municipality, subtract $30,000 from the amount determined under subd. 2.
4. Multiply the amount determined under subd. 3. by the amount determined under subd. 1.
5. Multiply the amount determined under subd. 4. by the percentage determined by under s. 238.399 or s. 560.799, 2009 stats., not to exceed 7 percent.
(bm) Filing supplemental claims.
1. In addition to the credits under par. (b) and subds. 2., 3., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.02 an amount equal to a percentage, as determined under s. 238.399 or s. 560.799, 2009 stats., not to exceed 100 percent, of the amount the claimant paid in the taxable year to upgrade or improve the job-related skills of any of the claimant’s full-time employees, to train any of the claimant’s full-time employees on the use of job-related new technologies, or to provide job-related training to any full-time employee whose employment with the claimant represents the employee’s first full-time job. This subdivision does not apply to employees who do not work in an enterprise zone.
2. In addition to the credits under par. (b) and subds. 1., 3., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.02 an amount equal to the percentage, as determined under s. 238.399 or s. 560.799, 2009 stats., not to exceed 7 percent, of the claimant’s zone payroll paid in the taxable year to all of the claimant’s full-time employees whose annual wages are greater than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality, not including the wages paid to the employees determined under par. (b) 1., or greater than $30,000 in a tier II county or municipality, not including the wages paid to the employees determined under par. (b) 1., and who the claimant employed in the enterprise zone in the taxable year, if the total number of such employees is equal to or greater than the total number of such employees in the base year. A claimant may claim a credit under this subdivision for no more than 5 consecutive taxable years.
3. In addition to the credits under par. (b) and subds. 1., 2., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s. 71.02 up to 10 percent of the claimant’s significant capital expenditures, as determined under s. 238.399 (5m) or s. 560.799 (5m), 2009 stats.
4. In addition to the credits under par. (b) and subds. 1., 2., and 3., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., for taxable years beginning after December 31, 2009, a claimant may claim as a credit against the tax imposed under s. 71.02, up to 1 percent of the amount that the claimant paid in the taxable year to purchase tangible personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services from Wisconsin vendors, as determined under s. 238.399 (5) (e) or s. 560.799 (5) (e), 2009 stats., except that the claimant may not claim the credit under this subdivision and subd. 3. for the same expenditures.
(c) Limitations.
1. If the allowable amount of the claim under this subsection exceeds the taxes otherwise due on the claimant’s income under s. 71.02, the amount of the claim that is not used to offset those taxes shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation under s. 20.835 (2) (co). Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subdivision.
2.
a. Except as provided in subd. 2. b., 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 described under pars. (b) and (bm). 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.
b. For taxable years beginning after December 31, 2020, partnerships, limited liability companies, and tax-option corporations may elect to claim the credit under this subsection, if the credit results from a contract entered into with the Wisconsin Economic Development Corporation before December 22, 2017. A partnership, limited liability company, or tax-option corporation that wishes to make the election under this subd. 2. b. shall make the election for each taxable year on its original return and cannot subsequently make or revoke the election. If a partnership, limited liability company, or tax-option corporation elects to claim the credit under this subsection, the partners, members, and shareholders cannot claim the credit under this subsection. The credit cannot be claimed under this subd. 2. b. if one or more partners, members, or shareholders have claimed the credit under this subsection for the same taxable year for which the credit is claimed under this subd. 2. b.
3. No credit may be allowed under this subsection unless the claimant includes with the claimant’s return a copy of the claimant’s certification for tax benefits under s. 238.399 (5) or (5m) or s. 560.799 (5) or (5m), 2009 stats.
4. No claimant may claim a credit under this subsection if the basis for which the credit is claimed is also the basis for which another credit is claimed under this subchapter.
(d) Administration. Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection. Claimants shall include with their returns a copy of their certification for tax benefits, and a copy of the verification of their expenses, from the department of commerce or the Wisconsin Economic Development Corporation.
(3wm) Electronics and information technology manufacturing zone credit.
(a) Definitions. In this subsection:
1. “Claimant” means a person who is certified to claim tax benefits under s. 238.396 (3) and who files a claim under this subsection.
2. “Full-time employee” means an individual who is employed in a job for which the annual pay is at least $30,000 and who is offered retirement, health, and other benefits that are equivalent to the retirement, health, and other benefits offered to an individual who is required to work at least 2,080 hours per year.
3. “State payroll” means the amount of payroll apportioned to this state, as determined under s. 71.25 (8) [s. 71.25 (8), 2023 stats.].
4. “Wages” means wages under section 3306 (b) of the Internal Revenue Code, determined without regard to any dollar limitations.
5. “Zone” means a zone designated under s. 238.396 (1m).
6. “Zone payroll” means the amount of state payroll that is attributable to wages paid by the claimant to full-time employees for services that are performed in the zone or that are performed outside the zone, but within the state, and for the benefit of the operations within the zone, as determined by the Wisconsin Economic Development Corporation. “Zone payroll” does not include the amount of wages paid to any full-time employees that exceeds $100,000.
(b) Filing claims; payroll. Subject to the limitations provided in this subsection and s. 238.396, a claimant may claim as a credit against the tax imposed under s. 71.02 an amount calculated as follows:
1. Determine the zone payroll for the taxable year for full-time employees employed by the claimant.
2. Multiply the amount determined under subd. 1. by 17 percent.
(bm) Filing supplemental claims. In addition to claiming the credit under par. (b), and subject to the limitations under this subsection and s. 238.396, a claimant may claim as a credit against the tax imposed under s. 71.02 up to 15 percent of the claimant’s significant capital expenditures in the zone in the taxable year, as determined under s. 238.396 (3m).
(c) Limitations.
1. 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 described under pars. (b) and (bm). 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.
2. No credit may be allowed under this subsection unless the claimant includes with the claimant’s return a copy of the claimant’s certification for tax benefits under s. 238.396 (3).
3. The Wisconsin Economic Development Corporation may recover credits claimed under this paragraph that are revoked or otherwise invalid from the partnership, limited liability company, or tax-option corporation or from the individual partner, member, or shareholder.
(d) Administration.
1. Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.
2. If the allowable amount of the claim under this subsection exceeds the taxes otherwise due on the claimant’s income under s. 71.02, the amount of the claim that is not used to offset those taxes shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation under s. 20.835 (2) (cp). Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subdivision.
(3y) Business development credit.
(a) Definitions. In this subsection:
1. “Claimant” means a person certified to receive tax benefits under s. 238.308.
2. “Eligible employee” has the meaning given in s. 238.308 (1) (a).
(b) Filing claims. Subject to the limitations provided in this subsection and s. 238.308, for taxable years beginning after December 31, 2015, a claimant may claim as a credit against the tax imposed under s. 71.02 all of the following:
1. The amount of wages that the claimant paid to an eligible employee in the taxable year, not to exceed 10 percent of such wages, as determined by the Wisconsin Economic Development Corporation under s. 238.308.
2. In addition to any amount claimed for an eligible employee under subd. 1., the amount of wages that the claimant paid to the eligible employee in the taxable year, not to exceed 5 percent of such wages, if the eligible employee is employed in an economically distressed area, as determined by the Wisconsin Economic Development Corporation.
3. The amount of training costs that the claimant incurred under s. 238.308 (4) (a) 3., not to exceed 50 percent of such costs, as determined by the Wisconsin Economic Development Corporation.
4. The amount of the personal property investment, not to exceed 3 percent of such investment, and the amount of the real property investment, not to exceed 5 percent of such investment, in a capital investment project that satisfies s. 238.308 (4) (a) 4., as determined by the Wisconsin Economic Development Corporation.
5. An amount, as determined by the Wisconsin Economic Development Corporation under s. 238.308 (4) (a) 5., equal to a percentage of the amount of wages that the claimant paid to an eligible employee in the taxable year if the position in which the eligible employee was employed was created or retained in connection with the claimant’s location or retention of the claimant’s corporate headquarters in Wisconsin and the job duties associated with the eligible employee’s position involve the performance of corporate headquarters functions.
6. For taxable years beginning after December 31, 2023, the amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), not to exceed 15 percent of such investment, and the amount of the investment in establishing a child care program, not to exceed 15 percent of such investment, as determined by the Wisconsin Economic Development Corporation. For purposes of this subdivision, investments include capital expenditures made by the claimant and contributions made by the claimant to a 3rd party responsible for building or rehabilitating workforce housing or establishing a child care program, including contributions made to a local revolving fund loan program.
(c) Limitations.
1.
a. Except as provided in subd. 1. b., 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.
b. For taxable years beginning after December 31, 2020, partnerships, limited liability companies, and tax-option corporations may elect to claim the credit under this subsection, if the credit results from a contract entered into with the Wisconsin Economic Development Corporation before December 22, 2017. A partnership, limited liability company, or tax-option corporation that wishes to make the election under this subd. 1. b. shall make the election for each taxable year on its original return and cannot subsequently make or revoke the election. If a partnership, limited liability company, or tax-option corporation elects to claim the credit under this subsection, the partners, members, and shareholders cannot claim the credit under this subsection. The credit cannot be claimed under this subd. 1. b. if one or more partners, members, or shareholders have claimed the credit under this subsection for the same taxable year for which the credit is claimed under this subd. 1. b.
2. No credit may be allowed under this subsection unless the claimant includes with the claimant’s return a copy of the claimant’s certification for tax benefits under s. 238.308.
3. No credit may be allowed under par. (b) 4. for any amount of personal property investment or real property investment used to claim a credit under par. (b) 6.
(d) Administration.
1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.
2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.02, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (bg). Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subdivision.
(4) Homestead credit. The homestead credit under subch. VIII may be claimed by individuals against taxes otherwise due.
(4k) Research credit.
(a) Definitions. In this subsection:
1. “Frame” includes:
a. Every part of a motorcycle, except the tires.
b. In the case of a truck, the control system and the fuel and drive train, excluding any comfort features located in the cab or the tires.
c. In the case of a generator, the control modules, fuel train, fuel scrubbing process, fuel mixers, generator, heat exchangers, exhaust train, and similar components.
2. “Internal combustion engine” includes substitute products such as fuel cell, electric, and hybrid drives.
3. “Vehicle” means any vehicle or frame, including parts, accessories, and component technologies, in which or on which an engine is mounted for use in mobile or stationary applications. “Vehicle” includes any truck, tractor, motorcycle, snowmobile, all-terrain vehicle, boat, personal watercraft, generator, construction equipment, lawn and garden maintenance equipment, automobile, van, sports utility vehicle, motor home, bus, or aircraft.
(b) Credit.
1. Subject to the limitations provided in this subsection, and except as provided in subds. 2. and 3., for taxable years beginning after December 31, 2012, and before January 1, 2015, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s. 71.02, as allocated under par. (d), an amount equal to 5 percent of the amount obtained by subtracting from the individual’s, partnership’s, tax-option corporation’s, or limited liability company’s qualified research expenses, as defined in section 41 of the Internal Revenue Code, except that “qualified research expenses” includes only expenses incurred by the individual, partnership, tax-option corporation, or the limited liability company, incurred for research conducted in this state for the taxable year, except that a taxpayer may elect the alternative computation under section 41 (c) (4) of the Internal Revenue Code and that election applies until the department permits its revocation, except as provided in par. (c), and except that “qualified research expenses” does not include compensation used in computing the credit under sub. (2dx), the entity’s base amount, as defined in section 41 (c) of the Internal Revenue Code, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under s. 71.04 (7) (b) 1. and 2., (df), (dh), (dj), and (dk). Section 41 (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
2. For taxable years beginning after December 31, 2012, and before January 1, 2015, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s. 71.02, as allocated under par. (d), an amount equal to 10 percent of the amount obtained by subtracting from the individual’s, partnership’s, tax-option corporation’s, or limited liability company’s qualified research expenses, as defined in section 41 of the Internal Revenue Code, except that “qualified research expenses” includes only expenses incurred by the individual, partnership, tax-option corporation, or limited liability company for research related to designing internal combustion engines for vehicles, including expenses related to designing vehicles that are powered by such engines and improving production processes for such engines and vehicles, incurred for research conducted in this state for the taxable year, except that a taxpayer may elect the alternative computation under section 41 (c) (4) of the Internal Revenue Code and that election applies until the department permits its revocation, except as provided in par. (c), and except that “qualified research expenses” does not include compensation used in computing the credit under sub. (2dx), the entity’s base amount, as defined in section 41 (c) of the Internal Revenue Code, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under s. 71.04 (7) (b) 1. and 2., (df), (dh), (dj), and (dk). Section 41 (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
3. For taxable years beginning after December 31, 2012, and before January 1, 2015, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s. 71.02, as allocated under par. (d), an amount equal to 10 percent of the amount obtained by subtracting from the individual’s, partnership’s, tax-option corporation’s, or limited liability company’s qualified research expenses, as defined in section 41 of the Internal Revenue Code, except that “qualified research expenses” includes only expenses incurred by the individual, partnership, tax-option corporation, or limited liability company for research related to the design and manufacturing of energy efficient lighting systems, building automation and control systems, or automotive batteries for use in hybrid-electric vehicles, that reduce the demand for natural gas or electricity or improve the efficiency of its use, incurred for research conducted in this state for the taxable year, except that a taxpayer may elect the alternative computation under section 41 (c) (4) of the Internal Revenue Code and that election applies until the department permits its revocation, except as provided in par. (c), and except that “qualified research expenses” does not include compensation used in computing the credit under sub. (2dx), the entity’s base amount, as defined in section 41 (c) of the Internal Revenue Code, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under s. 71.04 (7) (b) 1. and 2., (df), (dh), (dj), and (dk). Section 41 (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
4.
a. Except as provided in subds. 5. and 6., for taxable years beginning after December 31, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s. 71.02, as allocated under par. (d), an amount equal to 5.75 percent of the amount by which the individual’s, partnership’s, tax-option corporation’s, or limited liability company’s qualified research expenses for the taxable year exceed 50 percent of the average qualified research expenses for the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit. If the individual, partnership, tax-option corporation, or limited liability company had no qualified research expenses in any of the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit, the claimant may claim an amount equal to 2.875 percent of the individual’s, partnership’s, tax-option corporation’s, or limited liability company’s qualified research expenses for the taxable year for which the claimant claims the credit.
b. For purposes of subd. 4. a. “qualified research expenses” means qualified research expenses as defined in section 41 of the Internal Revenue Code, except that “qualified research expenses” includes only expenses incurred by the individual, partnership, tax-option corporation, or the limited liability company, incurred for research conducted in this state for the taxable year and does not include compensation used in computing the credit under sub. (2dx). Section 41 (f) (1), (2), (5), and (6) and (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
5.
a. For taxable years beginning after December 31, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s. 71.02, as allocated under par. (d), an amount equal to 11.5 percent of the amount by which the individual’s, partnership’s, tax-option corporation’s, or limited liability company’s qualified research expenses for the taxable year exceed 50 percent of the average qualified research expenses for the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit. If the individual, partnership, tax-option corporation, or limited liability company had no qualified research expenses in any of the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit, the claimant may claim an amount equal to 5.75 percent of the individual’s, partnership’s, tax-option corporation’s, or limited liability company’s qualified research expenses for the taxable year for which the claimant claims the credit.
b. For purposes of subd. 5. a., “qualified research expenses” means qualified research expenses as defined in section 41 of the Internal Revenue Code, except that “qualified research expenses” includes only expenses incurred by the individual, partnership, tax-option corporation, or limited liability company for research related to designing internal combustion engines for vehicles, including expenses related to designing vehicles that are powered by such engines and improving production processes for such engines and vehicles, incurred for research conducted in this state for the taxable year and does not include compensation used in computing the credit under sub. (2dx). Section 41 (f) (1), (2), (5), and (6) and (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
6.
a. For taxable years beginning after December 31, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s. 71.02, as allocated under par. (d), an amount equal to 11.5 percent of the amount by which the individual’s, partnership’s, tax-option corporation’s, or limited liability company’s qualified research expenses for the taxable year exceed 50 percent of the average qualified research expenses for the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit. If the individual, partnership, tax-option corporation, or limited liability company had no qualified research expenses in any of the 3 taxable years immediately preceding the taxable year for which the claimant claims the credit, the claimant may claim an amount equal to 5.75 percent of the individual’s, partnership’s, tax-option corporation’s, or limited liability company’s qualified research expenses for the taxable year for which the claimant claims the credit.
b. For purposes of subd. 6. a., “qualified research expenses” means qualified research expenses as defined in section 41 of the Internal Revenue Code, except that “qualified research expenses” includes only expenses incurred by the individual, partnership, tax-option corporation, or limited liability company for research related to the design and manufacturing of energy efficient lighting systems, building automation and control systems, or automotive batteries for use in hybrid-electric vehicles, that reduce the demand for natural gas or electricity or improve the efficiency of its use, incurred for research conducted in this state for the taxable year and does not include compensation used in computing the credit under sub. (2dx). Section 41 (f) (1), (2), (5), and (6) and (h) of the Internal Revenue Code does not apply to the credit under this subdivision.
(c) Computation. For taxable years beginning before January 1, 2015, if in any taxable year a person claims a credit under par. (b) 1., 2., or 3., or any combination of those credits, the person may use a different computation method to calculate each of the credits and may choose to change the computation method once for each credit without the department’s approval.
(d) Limitations. Partnerships, tax-option corporations, and limited liability companies may not claim a 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, tax-option corporation, or limited liability company shall compute the amount of the credit that each of its partners, shareholders, or members may claim and shall provide that information to each of them. Partners of a partnership, shareholders of tax-option corporations, and members of limited liability companies may claim the credit in proportion to their ownership interest.
(e) Administration.
1. For taxable years beginning before January 1, 2018, s. 71.28 (4) (b) to (h), as it applies to the credit under s. 71.28 (4), applies to the credits under this subsection.
2. For taxable years beginning after December 31, 2017, s. 71.28 (4) (b) to (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credits under this subsection. For taxable years beginning after December 31, 2017, if the allowable amount of the claim under par. (b) 4., 5., or 6. exceeds the tax otherwise due under s. 71.02, all of the following apply:
a. For taxable years beginning before January 1, 2021, the amount of the claim not used to offset the tax due, not to exceed 10 percent of the allowable amount of the claim under par. (b) 4., 5., or 6., shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (d). For taxable years beginning after December 31, 2020 and before January 1, 2024, the amount of the claim not used to offset the tax due, up to 15 percent of the allowable amount of the claim under par. (b) 4., 5., or 6., shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (d).
ad. For taxable years beginning after December 31, 2023, the amount of the claim not used to offset the tax due, not to exceed 25 percent of the allowable amount of the claim under par. (b) 4., 5., or 6., shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (d).
b. The amount of the claim not used to offset the tax due and not certified for payment under subd. 2. a. or 2. ad. may be carried forward and credited against Wisconsin income taxes otherwise due for the following 50 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.
(4n) Research facilities credit.
(a) Definitions. In this subsection:
1. “Frame” includes:
a. Every part of a motorcycle, except the tires.
b. In the case of a truck, the control system and the fuel and drive train, excluding any comfort features located in the cab or the tires.
c. In the case of a generator, the control modules, fuel train, fuel scrubbing process, fuel mixers, generator, heat exchangers, exhaust train, and similar components.
2. “Internal combustion engine” includes substitute products such as fuel cell, electric, and hybrid drives.
3. “Vehicle” means any vehicle or frame, including parts, accessories, and component technologies, in which or on which an engine is mounted for use in mobile or stationary applications. “Vehicle” includes any truck, tractor, motorcycle, snowmobile, all-terrain vehicle, boat, personal watercraft, generator, construction equipment, lawn and garden maintenance equipment, automobile, van, sports utility vehicle, motor home, bus, or aircraft.
(b) Credit.
1. Subject to the limitations provided in this subsection, and except as provided in subds. 2. and 3., for taxable years beginning after December 31, 2012, and before January 1, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s. 71.02, as allocated under par. (c), an amount equal to 5 percent of the amount paid or incurred by the individual, partnership, tax-option corporation, or limited liability company during the taxable year to construct and equip new facilities or expand existing facilities used in this state for qualified research, as defined in section 41 of the Internal Revenue Code. Eligible amounts include only amounts paid or incurred for tangible, depreciable property but do not include amounts paid or incurred for replacement property.
2. For taxable years beginning after December 31, 2012, and before January 1, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s. 71.02, as allocated under par. (c), an amount equal to 10 percent of the amount paid or incurred by the individual, partnership, tax-option corporation, or limited liability company during the taxable year to construct and equip new facilities or expand existing facilities used in this state for qualified research, as defined in section 41 of the Internal Revenue Code, except that “qualified research expenses” includes only expenses paid or incurred by the individual, partnership, tax-option corporation, or limited liability company for research related to designing internal combustion engines for vehicles, including expenses related to designing vehicles that are powered by such engines and improving production processes for such engines and vehicles. Eligible amounts include only amounts paid or incurred for tangible, depreciable property but do not include amounts paid or incurred for replacement property.
3. For taxable years beginning after December 31, 2012, and before January 1, 2014, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s. 71.02, as allocated under par. (c), an amount equal to 10 percent of the amount paid or incurred by the individual, partnership, tax-option corporation, or limited liability company during the taxable year to construct and equip new facilities or expand existing facilities used in this state for qualified research, as defined in section 41 of the Internal Revenue Code, except that “qualified research expenses” includes only expenses paid or incurred by the individual, partnership, tax-option corporation, or limited liability company for research related to the design and manufacturing of energy efficient lighting systems, building automation and control systems, or automotive batteries for use in hybrid-electric vehicles, that reduce the demand for natural gas or electricity or improve the efficiency of its use. Eligible amounts include only amounts paid or incurred for tangible, depreciable property but do not include amounts paid or incurred for replacement property.
(c) Limitations. Partnerships, tax-option corporations, and limited liability companies may not claim a 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, tax-option corporation, or limited liability company shall compute the amount of the credit that each of its partners, shareholders, or members may claim and shall provide that information to each of them. Partners of a partnership, shareholders of tax-option corporations, and members of limited liability companies may claim the credit in proportion to their ownership interest.
(d) Administration.
1. Section 71.28 (4) (b) to (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credits under this subsection.
2. Section 71.28 (5b) (f), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.
(e) Sunset. 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.
(5) Itemized deductions credit. Single persons, married persons filing separately and married persons filing jointly may claim as a credit against, but not to exceed the amount of, Wisconsin net income taxes due an amount calculated as follows:
(a) Add the amounts allowed as itemized deductions under the internal revenue code except:
1. Interest paid to purchase or hold securities issued by the federal government or by any of its instrumentalities the interest on which is exempt from taxation under s. 71.05 (6) (b) 1.
2. Taxes under section 164 or 216 (a) (1) of the internal revenue code.
3. Casualty and theft deductions under section 165 (c) (3) of the internal revenue code, except for casualty losses that are directly related to a presidentially declared disaster under 26 USC 7508A.
4. Expenses to move from this state under section 217 of the internal revenue code.
5. Interest incurred to purchase or refinance a residence that is not a principal residence and is not in this state, and interest incurred to purchase or refinance a residence that is a boat.
6. The amount claimed for repayment of income previously taxed under this chapter if that amount is used in calculating the credit under sub. (1).
7. Miscellaneous itemized deductions under the Internal Revenue Code, without regard to whether such deductions are subject to the 2 percent floor as described in section 67 of the Internal Revenue Code.
8. Any employment-related educational expense that is claimed as an itemized deduction under the Internal Revenue Code to the extent that such an amount is also claimed as a subtract modification under s. 71.05 (6) (b) 28.
9. The amount claimed as a deduction for unreimbursed medical expenses under section 213 (a) of the Internal Revenue Code to the extent that the funds used to pay for the unreimbursed expenses for which the deduction was claimed were withdrawn from an ABLE account described under section 529A (b) (1) of the Internal Revenue Code.
15. The amount claimed as a deduction for medical care insurance under section 213 of the Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 19., 35., 38., and 42. and the amount claimed as a deduction for a long-term care insurance policy under section 213 (d) (1) (D) of the Internal Revenue Code, as defined in section 7702B (b) of the Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 26.
(b) Subtract the standard deduction under s. 71.05 (22), notwithstanding the limitation by such fraction of that amount as Wisconsin adjusted gross income is of federal adjusted gross income described in s. 71.05 (22) (g) and (h), from the amount under par. (a).
(c) Multiply the amount under par. (b) by .05.
(d) With respect to persons who change their domicile into or from this state during the taxable year and nonresident persons, the credit under this subsection shall be limited to the fraction of the amount so determined that Wisconsin adjusted gross income is of federal adjusted gross income. In this paragraph, for married persons filing separately “adjusted gross income” means the separate adjusted gross income of each spouse and for married persons filing jointly “adjusted gross income” means the total adjusted gross income of both spouses. If a person and that person’s spouse are not both domiciled in this state during the entire taxable year, their credit under this subsection on a joint return shall be limited to the fraction of the amount so determined that their joint Wisconsin adjusted gross income is of their joint federal adjusted gross income.
(5b) Early stage seed investment credit.
(a) Definitions. In this subsection:
1. “Claimant” means a person who files a claim under this subsection.
2. “Fund manager” means an investment fund manager certified under s. 238.15 (2) or s. 560.205 (2), 2009 stats.
(b) Filing claims.
1. For taxable years beginning after December 31, 2004, subject to the limitations provided under this subsection and s. 238.15 or s. 560.205, 2009 stats., and except as provided in subd. 2., a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, 25 percent of the claimant’s investment paid to a fund manager that the fund manager invests in a business certified under s. 238.15 (1) or s. 560.205 (1), 2009 stats.
2. In the case of a partnership, limited liability company, or tax-option corporation, the computation of the 25 percent limitation under subd. 1. shall be determined at the entity level rather than the claimant level and may be allocated among the claimants who make investments in the manner set forth in the entity’s organizational documents. The entity shall provide to the department of revenue and to the department of commerce or the Wisconsin Economic Development Corporation the names and tax identification numbers of the claimants, the amounts of the credits allocated to the claimants, and the computation of the allocations.
(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 interest or as specially allocated in their organizational documents.
(d) Administration.
1. Section 71.28 (5b) (e) to (h), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.
2. The Wisconsin adjusted basis of any investment for which a credit is claimed under par. (b) shall be reduced by the amount of the credit that is offset against Wisconsin income taxes. The Wisconsin basis of a partner’s interest in a partnership, a member’s interest in a limited liability company, or stock in a tax-option corporation shall be adjusted to reflect adjustments made under this subdivision.
3. Except as provided under s. 238.15 (3) (d), for investments made after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.
(5d) Angel investment credit.
(a) Definitions. In this subsection:
1. “Bona fide angel investment” means a purchase of an equity interest, or any other expenditure, as determined by rule under s. 238.15 or s. 560.205, 2009 stats., that is made by any of the following:
a. A person who reviews new businesses or proposed new businesses for potential investment of the person’s money.
b. A network of persons who satisfy subd. 1.
2. “Claimant” means an individual who files a claim under this subsection.
2m. “Person” means a partnership or limited liability company that is a nonoperating entity, as determined by the department of commerce or the Wisconsin Economic Development Corporation, a natural person, or fiduciary.
3. “Qualified new business venture” means a business that is certified under s. 238.15 (1) or s. 560.205 (1), 2009 stats.
(b) Filing claims. Subject to the limitations provided in this subsection and in s. 238.15 or s. 560.205, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, the following:
1. For taxable years beginning before January 1, 2008, in each taxable year for 2 consecutive years, beginning with the taxable year as certified by the department of commerce or the Wisconsin Economic Development Corporation, an amount equal to 12.5 percent of the claimant’s bona fide angel investment made directly in a qualified new business venture.
2. For taxable years beginning after December 31, 2007, for the taxable year certified by the department of commerce or the Wisconsin Economic Development Corporation, an amount equal to 25 percent of the claimant’s bona fide angel investment made directly in a qualified new business venture.
(c) Limitations.
2. For taxable years beginning before January 1, 2008, the maximum amount of a claimant’s investment that may be used as the basis for a credit under this subsection is $2,000,000 for each investment made directly in a business certified under s. 238.15 (1) or s. 560.205 (1), 2009 stats.
3m. Partnerships and limited liability companies 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 or limited liability company shall compute the amount of credit that each of its partners or members may claim and shall provide that information to each of them. Partners and members of limited liability companies may claim the credit in proportion to their ownership interest or as specially allocated in their organizational documents.
4. A claimant may claim the credit under this subsection for an investment that was made in a business that was located outside of this state if the investment was made no more than 60 days before the business relocated to this state and the business was certified as a qualified new business venture no later than 180 days after relocating to this state.
(d) Administration.
1. Except as provided under s. 238.15 (3) (d), for investments made after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.
2. Section 71.28 (5b) (e) to (h), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.
3. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.
4. The Wisconsin adjusted basis of any investment for which a credit is claimed under par. (b) shall be reduced by the amount of the credit that is offset against Wisconsin income taxes.
(5f) Film production services credit.
(a) Definitions. In this subsection:
1. “Accredited production” means a film, video, broadcast advertisement, or television production, as approved by the state film office, for which the aggregate salary and wages included in the cost of the production for the period ending 12 months after the month in which the principal filming or taping of the production begins exceeds $100,000 for a production that is 30 minutes or longer or $50,000 for a production that is less than 30 minutes. “Accredited production” includes a scripted, unscripted, reality, or competition production, but does not include any of the following, regardless of the production costs:
a. News, current events, or public programming or a program that includes weather or market reports.
b. A talk show.
c. A sports event or sports activity.
d. A gala presentation or awards show.
e. A finished production that solicits funds.
f. A production for which the production company is required under 18 USC 2257 to maintain records with respect to a performer portrayed in a single media or multimedia program.
g. A production produced primarily for industrial, corporate, or institutional purposes.
2. “Claimant” means a film production company, as defined in sub. (5h) (a) 2., that operates an accredited production in this state, if the company owns the copyright in the accredited production or has contracted directly with the copyright owner or a person acting on the owner’s behalf and if the company has a viable plan, as determined by the state film office, for the commercial distribution of the finished production.
3. “Commercial domicile” means the location from which a trade or business is principally managed and directed, based on any factors the state film office determines are appropriate, including the location where the greatest number of employees of the trade or business work, the trade or business has its office or base of operations, or from which the employees are directed or controlled.
4. “Production expenditures” means salaries, wages, or any other expenditures that are incurred in this state and directly used to produce an accredited production, including expenditures for writing, budgeting, casting, location scouts, set construction and operation, wardrobes, makeup, clothing accessories, photography, sound recording, sound synchronization, sound mixing, lighting, editing, film processing, film transferring, special effects, visual effects, renting or leasing facilities or equipment, renting or leasing motor vehicles, food, lodging, and any other similar pre-production, production, and post-production expenditure as determined by the state film office. “Production expenditures” includes expenditures for music that is performed, composed, or recorded by a musician who is a resident of this state or published or distributed by an entity that has its commercial domicile in this state; air travel that is purchased from a travel agency or company that has its commercial domicile in this state; and insurance that is purchased from an insurance agency or company that has its commercial domicile in this state. “Production expenditures” does not include salaries, wages, or any other expenditures for the marketing and distribution of an accredited production.
(b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2025, a claimant may claim as a credit against the tax imposed under s. 71.02 any of the following amounts:
1. To the extent the salary or wages are not claimed under subd. 2., an amount equal to 30 percent of the salary or wages paid by the claimant to the claimant’s employees in the taxable year for services rendered in this state to produce an accredited production and paid to employees who were residents of this state at the time that they were paid.
2. An amount equal to 30 percent of the production expenditures paid by the claimant in the taxable year to produce an accredited production.
3. An amount equal to the taxes imposed under ss. 77.52 and 77.53, to the extent those taxes are not used in claiming a credit under subd. 2., that the claimant paid in the taxable year on the purchase of tangible personal property and taxable services that are used directly in producing an accredited production in this state, including all stages from the final script stage to the distribution of the finished production.
(c) Limitations.
1. No amount of the salary or wages paid under par. (b) 1. may be the basis for a credit under this subsection unless the salary or wages are paid for services rendered after December 31, 2025, and directly incurred to produce the accredited production.
2. Only the first $250,000 of salary or wages paid to each of the claimant’s employees, as described in par. (b) 1., in the taxable year may be used to claim a credit under par. (b) 1. If the claimant’s production expenditures for the taxable year are $1,000,000 or more, the salaries or wages paid to the claimant’s 2 highest-paid employees in the taxable year may not be used to claim the credit.
3. No credit may be allowed under this subsection unless the claimant files an application with the state film office, at the time and in the manner prescribed by the office, and the office approves the application. The claimant shall submit a copy of the approved application with the claimant’s return.
4. 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.
(d) Administration.
1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credits under this subsection. Section 71.28 (4) (f), as it applies to the credit under s. 71.28 (4), applies to the credits under par. (b) 1. and 3.
2. If the allowable amount of the claim under par. (b) 2. exceeds the tax otherwise due under s. 71.02 or no tax is due under s. 71.02, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (bm).
3. Any person, including a nonprofit entity described in section 501 (c) (3) of the Internal Revenue Code, may sell or otherwise transfer a credit under par. (b) 1. or 3., in whole or in part, to another person who is subject to the taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and submits with the notification a copy of the transfer documents, and the department certifies ownership of the credit. The transferee may first use the credit to offset tax in the taxable year of the transferor in which the transfer occurs and may use the credit only to offset tax in taxable years in which the credit is otherwise allowed to be claimed and carried forward by the original claimant.
4. Notwithstanding s. 71.82, no interest shall be paid on a refund based on an amount certified under this subsection.
(5g) Health Insurance Risk-Sharing Plan assessments credit.
(a) Definitions. In this subsection, “claimant” means a partner, limited liability company member, or tax-option corporation shareholder who files a claim under this subsection and who is a partner, member, or shareholder of an entity that is an insurer, as defined in s. 149.10 (5), 2011 stats.
(b) Filing claims. Subject to the limitations provided under this subsection, for taxable years beginning after December 31, 2005, and before January 1, 2015, a claimant may claim as a credit against the taxes imposed under s. 71.02 an amount that is equal to the amount of the assessment under s. 149.13, 2011 stats., that the claimant paid in the claimant’s taxable year, multiplied by the percentage determined under par. (c) 1.
(c) Limitations.
1. The department of revenue, in consultation with the office of the commissioner of insurance, shall determine the percentage under par. (b) for each claimant for each taxable year. The percentage shall be equal to $5,000,000 divided by the aggregate assessment under s. 149.13, 2011 stats., except that for taxable years beginning after December 31, 2013, and before January 1, 2015, the percentage shall be equal to $1,250,000 divided by the aggregate assessment under s. 149.13, 2011 stats., and shall not exceed 100 percent. The office of the commissioner of insurance shall provide to each claimant that participates in the cost of administering the plan the aggregate assessment at the time that it notifies the claimant of the claimant’s assessment. The aggregate amount of the credit under this subsection and ss. 71.28 (5g), 71.47 (5g), and 76.655 for all claimants participating in the cost of administering the plan under ch. 149, 2011 stats., shall not exceed $5,000,000 in each fiscal year.
2. 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 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.
3. The amount of any credits that a claimant is awarded under this subsection for taxable years beginning after December 31, 2005, and before January 1, 2008, may first be claimed against the tax imposed under this subchapter for taxable years beginning after December 31, 2007, and in the manner determined by the department of revenue.
(d) Administration.
1. Section 71.28 (5b) (e) to (h), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.
2. No credit may be claimed under this subsection for taxable years beginning after December 31, 2014. Credits under this subsection for taxable years that begin before January 1, 2015, may be carried forward to taxable years that begin after December 31, 2014.
(5h) Film production company investment credit.
(a) Definitions. In this subsection:
1. “Claimant” means a person who files a claim under this subsection and who does business in this state as a film production company.
2. “Film production company” means an entity that creates films, videos, broadcast advertisement, or television productions, not including the productions described in sub. (5f) (a) 1. a. to g.
3. “Physical work” does not include preliminary activities such as planning, designing, securing financing, researching, developing specifications, or stabilizing property to prevent deterioration.
4. “Previously owned property” means real property that the claimant or a related person owned during the 2 years prior to doing business in this state as a film production company and for which the claimant may not deduct a loss from the sale of the property to, or an exchange of the property with, the related person under section 267 of the Internal Revenue Code.
5. “Used exclusively” means used to the exclusion of all other uses except for other use not exceeding 5 percent of total use.
(b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2025, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of the taxes, for the first 3 taxable years that the claimant is doing business in this state as a film production company, an amount that is equal to 30 percent of the following that the claimant paid in the taxable year to establish a film production company in this state:
1. The purchase price of depreciable, tangible personal property.
2. The amount expended to acquire, construct, rehabilitate, remodel, or repair real property.
(c) Limitations.
1. A claimant may claim the credit under par. (b) 1., if the tangible personal property is purchased after December 31, 2025, and the personal property is used exclusively in the claimant’s business as a film production company.
2. A claimant may claim the credit under par. (b) 2. for an amount expended to construct, rehabilitate, remodel, or repair real property, if the claimant began the physical work of construction, rehabilitation, remodeling, or repair, or any demolition or destruction in preparation for the physical work, after December 31, 2025, or if the completed project is placed in service after December 31, 2025.
3. A claimant may claim the credit under par. (b) 2. for an amount expended to acquire real property, if the property is not previously owned property and if the claimant acquires the property after December 31, 2025, or if the completed project is placed in service after December 31, 2025.
4. No claim may be allowed under this subsection unless the state film office certifies, in writing, that the credits claimed under this subsection are for expenses related to establishing a film production company in this state and the claimant submits a copy of the certification with the claimant’s return.
5. No credit may be allowed under this subsection for any amount that the claimant paid for expenses described in par. (b) that the claimant used to claim a credit under sub. (5f).
6. 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.
(d) Administration.
1. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credits under this subsection.
2. Any person, including a nonprofit entity described in section 501 (c) (3) of the Internal Revenue Code, may sell or otherwise transfer a credit under this subsection, in whole or in part, to another person who is subject to the taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and submits with the notification a copy of the transfer documents, and the department certifies ownership of the credit. The transferee may first use the credit to offset tax in the taxable year of the transferor in which the transfer occurs and may use the credit only to offset tax in taxable years in which the credit is otherwise allowed to be claimed and carried forward by the original claimant.
3. Notwithstanding s. 71.82, no interest shall be paid on a refund based on an amount certified under this subsection.
(5i) Electronic medical records credit.
(a) Definitions. In this subsection, “claimant” means a person who files a claim under this subsection.
(b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2011, and before January 1, 2014, a claimant may claim as a credit against the taxes imposed under s. 71.02, up to the amount of those taxes, an amount equal to 50 percent of the amount the claimant paid in the taxable year for information technology hardware or software that is used to maintain medical records in electronic form, if the claimant is a health care provider, as defined in s. 146.81 (1) (a) to (p).
(c) Limitations.
1. The maximum amount of the credits that may be claimed under this subsection and ss. 71.28 (5i) and 71.47 (5i) in a taxable year is $10,000,000, as allocated under s. 73.15 or s. 560.204, 2009 stats.
2. 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.
3. No credit may be claimed under this subsection based on an amount paid under par. (b) after December 31, 2013.
(d) Administration. Section 71.28 (5b) (e) to (h), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.
(5j) Ethanol and biodiesel fuel pump credit.
(a) Definitions. In this subsection:
1. “Biodiesel fuel” has the meaning given in s. 168.14 (2m) (a).
2. “Claimant” means a person who files a claim under this subsection.
2d. “Diesel replacement renewable fuel” includes biodiesel and any other fuel derived from a renewable resource that meets all of the applicable requirements of ASTM International for that fuel and that the department of agriculture, trade and consumer protection designates by rule as a diesel replacement renewable fuel.
2m. “Gasoline replacement renewable fuel” includes ethanol and any other fuel derived from a renewable resource that meets all of the applicable requirements of ASTM International for that fuel and that the department of agriculture, trade and consumer protection designates by rule as a gasoline replacement renewable fuel.
3. “Motor vehicle fuel” has the meaning given in s. 78.005 (13).
(b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2007, and before January 1, 2014, a claimant may claim as a credit against the taxes imposed under s. 71.02, up to the amount of the taxes, an amount that is equal to 25 percent of the amount that the claimant paid in the taxable year to install or retrofit pumps located in this state that dispense motor vehicle fuel marketed as gasoline and 85 percent ethanol or a higher percentage of ethanol or motor vehicle fuel marketed as diesel fuel and 20 percent biodiesel fuel or that mix fuels from separate storage tanks and allow the end user to choose the percentage of gasoline replacement renewable fuel or diesel replacement renewable fuel in the motor vehicle fuel dispensed.
(c) Limitations.
1. The maximum amount of the credit that a claimant may claim under this subsection in a taxable year is an amount that is equal to $5,000 for each service station for which the claimant has installed or retrofitted pumps as described under par. (b).
2. 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.
3. The department of agriculture, trade and consumer protection shall establish standards to adequately prevent, in the distribution of conventional fuel to an end user, the inadvertent distribution of fuel containing a higher percentage of renewable fuel than the maximum percentage established by the federal environmental protection agency for use in conventionally-fueled engines.
(d) Administration.
1. Section 71.28 (5b) (e) to (h), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.
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.
(5k) Community rehabilitation program credit.
(a) Definitions. In this subsection:
1. “Claimant” means a person who files a claim under this subsection.
2. “Community rehabilitation program” means a nonprofit entity, county, municipality, or state or federal agency that directly provides, or facilitates the provision of, vocational rehabilitation services to individuals who have disabilities to maximize the employment opportunities, including career advancement, of such individuals.
3. “Vocational rehabilitation services” include education, training, employment, counseling, therapy, placement, and case management.
4. “Work” includes production, packaging, assembly, food service, custodial service, clerical service, and other commercial activities that improve employment opportunities for individuals who have disabilities.
(b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after July 1, 2011, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, an amount equal to 5 percent of the amount the claimant paid in the taxable year to a community rehabilitation program to perform work for the claimant’s business, pursuant to a contract.
(c) Limitations.
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.
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).
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.
(d) Administration. Section 71.28 (5b) (e) to (h), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.
(5m) Working families tax credit.
(a) Definitions. In this subsection:
1. “Claimant” means an individual who is eligible to claim the credit under this subsection.
2. “Department” means the department of revenue.
3. “Household” means a claimant and an individual related to the claimant as husband or wife.
4. “Net tax liability” means a claimant’s income tax liability after he or she completes the computations listed in s. 71.10 (4) (a) to (d).
(b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, one of the following amounts:
1. If the claimant is single and his or her adjusted gross income is less than $9,000 in the year to which the claim relates, an amount equal to his or her net tax liability.
2. If the claimant is single and his or her adjusted gross income is at least $9,000 but less than $10,000 in the year to which the claim relates, an amount that is calculated as follows:
a. Calculate the value of a fraction, the denominator of which is $1,000 and the numerator of which is the difference between the claimant’s adjusted gross income and $9,000.
b. Subtract from 1.0 the amount that is calculated under subd. 2. a.
c. Multiply the amount of the claimant’s net income tax liability by the amount that is calculated under subd. 2. b.
3. If the claimant is married and filing jointly and the sum of the claimant’s adjusted gross income and his or her spouse’s adjusted gross income is less than $18,000 in the year to which the claim relates, an amount equal to the married couple’s net tax liability.
4. If the claimant is married and filing jointly and the sum of the claimant’s adjusted gross income and his or her spouse’s adjusted gross income is at least $18,000 but less than $19,000 in the year to which the claim relates, an amount that is calculated as follows:
a. Calculate the value of a fraction, the denominator of which is $1,000 and the numerator of which is the difference between the married couple’s adjusted gross income and $18,000.
b. Subtract from 1.0 the amount that is calculated under subd. 4. a.
c. Multiply the amount of the married couple’s net income tax liability by the amount that is calculated under subd. 4. b.
5. If the claimant is married and filing separately and his or her adjusted gross income is less than $9,000 in the year to which the claim relates, an amount equal to his or her net tax liability.
6. If the claimant is married and filing separately and his or her adjusted gross income is at least $9,000 but less than $10,000 in the year to which the claim relates, an amount that is calculated as follows:
a. Calculate the value of a fraction, the denominator of which is $1,000 and the numerator of which is the difference between the claimant’s adjusted gross income and $9,000.
b. Subtract from 1.0 the amount that is calculated under subd. 6. a.
c. Multiply the amount of the claimant’s net income tax liability by the amount that is calculated under subd. 6. b.
(c) Limitations.
1. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).
2. Part-year residents and nonresidents of this state are not eligible for the credit under this subsection.
3. Except as provided in subd. 4., only one credit per household is allowed each year.
4. If a married couple files separately, each spouse may claim the credit calculated under par. (b) 5. or 6., except a married person living apart from the other spouse and treated as single under section 7703 (b) of the Internal Revenue Code may claim the credit under par. (b) 1. or 2.
5. The credit under this subsection may not be claimed by a person who may be claimed as a dependent on the individual income tax return of another taxpayer.
(d) Administration. The department of revenue may enforce the credit under this subsection and may take any action, conduct any proceeding and proceed as it is authorized in respect to taxes under this chapter. The income tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest and penalties apply to the credit under this subsection.
(5n) Manufacturing and agriculture credit.
(a) Definitions. In this subsection:
1.
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.
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.
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.
2. “Claimant” means a person who files a claim under this subsection.
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.
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.
5.
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.
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.
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.
6. “Production gross receipts” means:
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.
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 adjusted gross income for the taxable year.
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. 71.04 (4).
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:
a. Income from film production.
b. Income from producing, transmitting, or distributing electricity, natural gas, or potable water.
c. Income from constructing real property.
d. Income from engineering or architectural services performed with respect to constructing real property.
e. Income from the sale of food and beverages prepared by the claimant at a retail establishment.
f. Income from the lease, rental, license, sale, exchange, or other disposition of land.
9. “Qualified production property” means any of the following:
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.
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.
c. Tangible personal property manufactured in whole or in part by the claimant at 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).
(b) Filing claims. For taxable years beginning after December 31, 2015, and subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of the tax, an amount equal to 7.5 percent of the claimant’s eligible qualified production activities income in the taxable year.
(c) Limitations.
1. 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.
2. The credit under par. (b), including any credits carried over, may be offset only against the amount of the tax imposed upon or measured by the business operations of the claimant on which the credit is computed.
3. For shareholders of a tax-option corporation, the credit may be offset only against the tax imposed on the shareholder’s prorated share of the tax-option corporation’s income.
4. For partners of a partnership, the credit may be offset only against the tax imposed on the partner’s distributive share of partnership income.
5. For members of a limited liability company, the credit may be offset only against the tax imposed on the member’s distributive share of the limited liability company’s income.
(d) Administration.
1. Section 71.28 (5b) (e) to (h), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.
2. 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.
3. The amount of the eligible qualified production activities income that a claimant may claim in computing the credit under par. (b) shall be reduced by the amount of the qualified production activities income taxed by another state upon which the credit under sub. (7) is claimed.
(5r) Postsecondary education credit.
(a) Definitions. In this subsection:
1. “Claimant” means a sole proprietor, a partner, a member of a limited liability company, or a shareholder of a tax-option corporation who files a claim under this subsection.
2. “Course of instruction” has the meaning given in s. 440.52 (1) (c).
3. “Family member” means a spouse or an individual related by blood, marriage, or adoption within the 3rd degree of kinship as computed under s. 990.001 (16).
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.
5. “Paid or incurred” includes any amount paid by the claimant to reimburse an individual for the tuition that the individual paid or incurred.
6. “Qualified postsecondary institution” means all of the following:
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.
b. A school approved under s. 440.52, if the delivery of education occurs in this state.
(b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02 an amount equal to the following:
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.
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.
(c) Limitations.
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).
2. A claimant may not claim the credit under par. (b) for any tuition amounts that the individual described under par. (b) excluded under s. 71.05 (6) (b) 28. or under section 127 of the Internal Revenue Code.
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 the claimant or for a family member of a managing employee unless all of the following apply:
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).
b. The family member is enrolled in a course of instruction that is substantially related to the claimant’s business.
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.
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.
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.
(d) Administration.
1. Section 71.28 (5b) (e) to (h), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.
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.
(5rm) Water consumption credit.
(a) Definitions. In this subsection:
1. “Ccf” means 100 cubic feet.
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.
(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. 71.02, 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:
1. Subtract the claimant’s 2009 water usage costs from the claimant’s water usage costs for the taxable year.
2. If the amount determined under subd. 1. is a positive number, multiply that amount by 0.50.
(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.
(d) Administration.
1. Section 71.28 (5b) (e) to (h), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.
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.
(6) Married persons credit.
(am)
1. For purposes of subd. 1m., “earned income” means wages, salaries, or professional fees, amounts received for services performed by an individual in the employ of his or her spouse, and other amounts received as compensation for personal services actually rendered, but does not include that part of the compensation derived by the taxpayer for personal services rendered by him or her to a corporation which represents a distribution of earnings or profits rather than a reasonable allowance as compensation for the personal services actually rendered. In the case of a taxpayer engaged in a trade or business in which both personal services and capital are material income-producing factors, under federal regulations, a reasonable allowance as compensation for the personal services rendered by the taxpayer shall be considered as earned income. Earned income includes gains, other than any gain which is treated under any provision of chapter 1 of the Internal Revenue Code as gain from the sale or exchange of a capital asset, and includes net earnings derived from the sale or disposition of, the transfer of any interest in, or the licensing of the use of property, other than goodwill, by an individual whose personal efforts created such property. Earned income does not include any amount not included in gross income, received as a pension or annuity, paid or distributed out of an individual retirement plan, within the meaning of section 7701 (a) (37) of the Internal Revenue Code, or received as deferred compensation. Earned income is computed notwithstanding the fact that each spouse owns an undivided one-half interest in the whole of the marital property. A marital property agreement or unilateral statement under ch. 766 transferring income between spouses has no effect in computing earned income under this paragraph.
1m. In this paragraph, “qualified earned income” means an amount equal to the excess of the earned income of the spouse for the taxable year, over an amount equal to the sum of the deductions described in paragraphs (1), (2) (B), (C), and (E), (6), (7), and (12) of section 62 (a) of the Internal Revenue Code to the extent such deductions are properly allocable to or chargeable against earned income, allocable to Wisconsin under s. 71.04, minus the amount of disability income excluded under s. 71.05 (6) (b) 4. and minus any other amount not subject to tax under this chapter.
2. Married persons filing a joint return, except those who reduce their gross income under section 911 or 931 of the Internal Revenue Code, may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, an amount equal to 3 percent of the qualified earned income of the spouse with the lower qualified earned income, but not more than $480.
(b) A claimant who has filed a timely claim under this subsection may file an amended claim with the department of revenue within 4 years of the last day prescribed by law for filing the original claim.
(6e) Veterans and surviving spouses property tax credit.
(a) Definitions. In this subsection:
1. “Claimant” means an eligible unremarried surviving spouse, an eligible veteran, or an eligible spouse who files a claim under this subsection.
1m. “Eligible spouse” means the spouse of an eligible veteran who files a separate return.
2. “Eligible unremarried surviving spouse” means an unremarried surviving spouse of one of the following, as verified by the department of veterans affairs:
a. An individual who had served on active duty in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces; who was a resident of this state at the time of entry into that active service or who had been a resident of this state for any consecutive 5-year period after entry into that active duty service; and who, while a resident of this state, died while on active duty.
b. An individual who had served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces; who was a resident of this state at the time of entry into that active service or who had been a resident of this state for any consecutive 5-year period after entry into that active duty service; who was a resident of this state at the time of his or her death; and who had either a service-connected disability rating of 100 percent under 38 USC 1114 or 1134 or a 100 percent disability rating based on individual unemployability.
c. An individual who had served in the national guard or a reserve component of the U.S. armed forces; who was a resident of this state at the time of entry into that service or who had been a resident of this state for any consecutive 5-year period after entry into that service; and who, while a resident of this state, died in the line of duty while on active or inactive duty for training purposes.
d. An individual who had served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces; who was a resident of this state at the time of entry into that active service or who had been a resident of this state for any consecutive 5-year period after entry into that active duty service; who was a resident of this state at the time of his or her death; and following the individual’s death, his or her spouse began to receive, and continues to receive, dependency and indemnity compensation, as defined in 38 USC 101 (14).
3. “Eligible veteran” means an individual who is verified by the department of veterans affairs as meeting all of the following conditions:
a. Served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated in the U.S. armed forces.
b. Was a resident of this state at the time of entry into that active service or had been a resident of this state for any consecutive 5-year period after entry into that service.
c. Is currently a resident of this state for purposes of receiving veterans benefits under ch. 45.
d. Has either a service-connected disability rating of 100 percent under 38 USC 1114 or 1134 or a 100 percent disability rating based on individual unemployability.
3e. “Individual unemployability” means a condition under which a veteran has a service-connected disability rating of either 60 percent under 38 USC 1114 or 1134 or two or more service-connected disability conditions where one condition has at least a 40 percent scheduler rating and the combined scheduler rating for all conditions is at least 70 percent, and has an administrative adjustment added to his or her service-connected disability, due to individual unemployability, such that the federal Department of Veterans Affairs rates the veteran 100 percent disabled.
4. “Principal dwelling” has the meaning given in sub. (9) (a) 2.
5. “Property taxes” means real property taxes, exclusive of special assessments, delinquent interest, and charges for service, paid by a claimant, and the claimant’s spouse if filing a joint return, on the eligible veteran’s or unremarried surviving spouse’s principal dwelling in this state during the taxable year for which credit under this subsection is claimed, less any property taxes paid which are properly includable as a trade or business expense under section 162 of the Internal Revenue Code. If the principal dwelling on which the taxes were paid is owned by 2 or more persons or entities as joint tenants or tenants in common or is owned by spouses as marital property, “property taxes” is that part of property taxes paid that reflects the ownership percentage of the claimant, except that this limitation does not apply to spouses who file a joint return. If the principal dwelling is sold during the taxable year, the “property taxes” for the seller and buyer shall be the amount of the tax prorated to each in the closing agreement pertaining to the sale or, if not so provided for in the closing agreement, the tax shall be prorated between the seller and buyer in proportion to months of their respective ownership. “Property taxes” includes monthly municipal permit fees in respect to a principal dwelling collected under s. 66.0435 (3) (c).
(b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02 the amount of the claimant’s property taxes. If the allowable amount of the claim exceeds the income taxes otherwise due on the claimant’s income, the amount of the claim not used as an offset against those taxes shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft, or other draft from the appropriation under s. 20.835 (2) (em).
(c) Limitations.
1. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).
2. No credit may be allowed under this subsection if the individual, or the individual’s spouse, files a claim under sub. (9) or subch. VIII or IX that relates to the same taxable year for which a claim is made under this subsection.
3. If an eligible veteran and an eligible spouse file separate returns, each spouse may claim a credit under this subsection based on their respective ownership interest in the eligible veteran’s principal dwelling.
(d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.
(6m) Armed forces member tax credit.
(a) Definitions. In this subsection:
1. “Claimant” means an active duty member of the U.S. armed forces, as defined in 26 USC 7701 (a) (15).
2. “Military income” means an amount of basic, special or incentive pay income, as those terms are used in 37 USC chapters 3 and 5, received by a claimant from the federal government.
(b) Filing claims. Subject to the limitations and conditions provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, one of the following amounts:
1. For taxable years beginning before January 1, 2006, an amount up to $200 of military income for services performed by the claimant while he or she is stationed outside of the United States.
2. For taxable years beginning after December 31, 2005, an amount up to $300 of military income for services performed by the claimant while he or she is stationed outside of the United States.
(c) Limitations and conditions.
1. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).
2. Part-year residents and nonresidents of this state are not eligible for the credit under this subsection.
3. If both spouses of a married couple meet the definition of claimant under par. (a) 1., each spouse may claim the credit under this subsection.
4. No credit may be claimed under this subsection by an individual who claims the subtraction under s. 71.05 (6) (b) 34.
5. No new claims may be filed under this subsection for taxable years that begin after December 31, 2020.
(d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.
(6n) Veteran employment credit.
(a) Definitions. In this subsection:
1. “Claimant” means a person who files a claim under this subsection.
2. “Disabled veteran” means a veteran who is verified by the department of veteran affairs to have a service-connected disability rating of at least 50 percent under 38 USC 1114 or 1134.
3. “Full-time job” means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays.
4. “Part-time job” means a regular, nonseasonal part-time position in which an individual, as a condition of employment, is required to work fewer than 2,080 hours per year, including paid leave and holidays.
5. “Veteran” means a person who is verified by the department of veteran affairs to have served on active duty under honorable conditions in the U.S. armed forces, in forces incorporated as part of the U.S. armed forces, in the national guard, or in a reserve component of the U.S. armed forces.
(b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2011, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of the tax, an amount equal to any of the following:
1. For each disabled veteran the claimant hires in the taxable year to work a full-time job at the claimant’s business in this state, $4,000 in the taxable year in which the disabled veteran is hired and $2,000 in each of the 3 taxable years following the taxable year in which the disabled veteran is hired.
2. Subject to par. (c) 4., for each disabled veteran the claimant hires in the taxable year to work a part-time job at the claimant’s business in this state, $2,000 in the taxable year in which the disabled veteran is hired and $1,000 in each of the 3 taxable years following the taxable year in which the disabled veteran is hired.
(c) Limitations.
1. 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 hiring of disabled veterans, as 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.
2. No credit may be claimed under this subsection in any taxable year in which the disabled veteran voluntarily or involuntarily leaves his or her employment with the claimant.
3. A claimant may claim a credit under this subsection only for hiring a disabled veteran who has received unemployment compensation benefits for at least one week prior to being hired by the claimant, who was receiving such benefits at the time that he or she was hired by the claimant, and who was eligible to receive such benefits at the time the benefits were paid.
4. With regard to a credit claimed under par. (b) 2., the amount that the claimant may claim is determined as follows:
a. Divide the number of hours that the disabled veteran worked for the claimant during the taxable year by 2,080.
b. Multiply the amount of the credit under par. (b) 2., as appropriate, by the number determined under subd. 4. a.
(d) Administration.
1. Section 71.28 (5b) (e) to (h), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.
2. No credit may be claimed under this subsection for taxable years beginning after December 31, 2012. Credits under this subsection for taxable years that begin before January 1, 2013, may be carried forward to taxable years that begin after December 31, 2012.
(7) Other state tax credit.
(a) In this subsection:
1. “Net Wisconsin income tax” means the gross Wisconsin income tax less all nonrefundable credits that may be claimed by that taxpayer, except the credit for taxes paid to other states.
2. “State” includes the District of Columbia, but does not include the commonwealth of Puerto Rico or the several territories organized by Congress.
(b)
1. Subject to conditions and limitations in pars. (c) and (d), if a resident individual, estate or trust pays a net income tax to another state, that resident individual, estate or trust may credit the net tax paid to that other state on that income against the net income tax otherwise payable to this state on income of the same year. The credit may not be allowed unless the income taxed by the other state is also considered income for Wisconsin tax purposes. The credit may not be allowed unless claimed within the time provided in s. 71.75 (2), but s. 71.75 (4) does not apply to those credits. For purposes of this subdivision, amounts declared and paid under the income tax law of another state are considered a net income tax paid to that other state only in the year in which the income tax return for that state was required to be filed.
2. Income and franchise taxes paid to another state by a tax-option corporation, partnership, or limited liability company that is treated as a partnership may be claimed as a credit under this paragraph by that corporation’s shareholders, that partnership’s partners, or that limited liability company’s members who are residents of this state and who otherwise qualify under this paragraph, unless the tax-option corporation, partnership, or limited liability company has made an election under s. 71.21 (6) (a) or 71.365 (4m) (a).
3. Subject to the conditions and limitations in pars. (c) and (d), if a tax-option corporation, partnership, or limited liability company makes an election under s. 71.21 (6) (a) or 71.365 (4m) (a), that tax-option corporation, partnership, or limited liability company may credit the net income or franchise tax paid by the entity to another state on that income and the net income tax on that income paid by the entity on behalf of its shareholders, partners, and members that are residents of this state on a composite return filed with the other state against the net income or franchise tax otherwise payable to this state on income of the same year. The credit may not be allowed unless the income taxed by the other state is also considered income for Wisconsin tax purposes and is otherwise attributable to amounts that would be reportable to this state by shareholders, partners, or members of the tax-option corporation, partnership, or limited liability company that are residents of this state if the election under s. 71.21 (6) (a) or 71.365 (4m) (a) was not made. The credit may not be allowed unless claimed within the time provided in s. 71.75 (2), but s. 71.75 (4) does not apply to those credits. For purposes of this subdivision, amounts declared and paid under the income tax law of another state are considered a net income tax paid to that other state only in the year in which the income tax return for that state was required to be filed.
(c) The total credits under par. (b) 1. and 2. may not exceed an amount determined by multiplying the taxpayer’s net Wisconsin income tax by a ratio derived by dividing the income subject to tax in the other state that is also subject to tax in Wisconsin while the taxpayer is a resident of Wisconsin, by the taxpayer’s Wisconsin adjusted gross income. The credit under par. (b) 3. may not exceed an amount determined by multiplying the income subject to tax in the other state that is also subject to tax in Wisconsin by 7.9 percent.
(d) The limitation in par. (c) does not apply to income that is taxed by one of the 4 states that border this state.
(8b) Low-income housing credit.
(a) Definitions. In this subsection:
1. “Allocation certificate” means a statement issued by the authority certifying that a qualified development is eligible for a credit under this subsection and specifying the amount of the credit that the owners of the qualified development may claim.
2. “Authority” means the Wisconsin Housing and Economic Development Authority.
3. “Claimant” means a person who has an ownership interest in a qualified development and who files a claim under this subsection.
4. “Compliance period” means the 15-year period beginning with the first taxable year of the credit period.
5. “Credit period” means the period of 6 taxable years beginning with the taxable year in which a qualified development is placed in service. For purposes of this subdivision, if a qualified development consists of more than one building, the qualified development is placed in service in the taxable year in which the last building of the qualified development is placed in service.
6. “Qualified basis” means the qualified basis determined under section 42 (c) (1) of the Internal Revenue Code.
7. “Qualified development” means a qualified low-income housing project under section 42 (g) of the Internal Revenue Code that is located in this state.
(b) Filing claims. Subject to the limitations provided in this subsection and in s. 234.45, for taxable years beginning after December 31, 2017, a claimant may claim as a credit against the taxes imposed under s. 71.02, up to the amount of the tax, the amount allocated to the claimant by the authority under s. 234.45 for each taxable year within the credit period.
(c) Limitations.
1. No person may claim the credit under par. (b) unless the claimant includes with the claimant’s return a copy of the allocation certificate issued to the qualified development.
2. A partnership, limited liability company, or tax-option corporation may not claim the credit under this subsection. The partners of a partnership, members of a limited liability company, or shareholders in a tax-option corporation may claim the credit under this subsection based on eligible costs incurred by the partnership, limited liability company, or tax-option corporation. The partnership, limited liability company, or tax-option corporation shall calculate the amount of the credit that may be claimed by each partner, member, or shareholder and shall provide that information to the partner, member, or shareholder. For shareholders of a tax-option corporation, the credit may be allocated in proportion to the ownership interest of each shareholder. Credits computed by a partnership or limited liability company may be claimed in proportion to the ownership interests of the partners or members or allocated to partners or members as provided in a written agreement among the partners or members that is entered into no later than the last day of the taxable year of the partnership or limited liability company, for which the credit is claimed. Any partner or member who claims the credit as allocated by a written agreement shall provide a copy of the agreement with the tax return on which the credit is claimed. Except as provided in s. 71.745, a person claiming the credit as provided under this subdivision is solely responsible for any tax liability arising from a dispute with the department of revenue related to claiming the credit.
(d) Recapture.
1. As of the last day of any taxable year during the compliance period, if the amount of the qualified basis of a qualified development with respect to a claimant is less than the amount of the qualified basis as of the last day of the immediately preceding taxable year, the amount of the claimant’s tax liability under this subchapter shall be increased by the recapture amount determined by using the method under section 42 (j) of the Internal Revenue Code.
2. In the event that the recapture of any credit is required in any taxable year, the taxpayer shall include the recaptured proportion of the credit on the return submitted for the taxable year in which the recapture event is identified.
(e) Administration. Section 71.28 (5b) (e) to (h), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.
(8n) Stillbirth tax credit.
(a) Definitions. In this subsection:
1. “Claimant” means the parent of a stillbirth who files a claim under this subsection.
2. “Stillbirth” means a birth that occurs in this state that results in a stillbirth for which a fetal death report is required under s. 69.18 (1) (e) 1.
(b) Filing claims. Subject to the limitations and conditions provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of the tax, $2,000 for the taxable year in which the stillbirth occurs.
(c) Limitations and conditions.
1. No credit may be claimed under this subsection by a part-year resident or a nonresident of this state.
2. No credit may be allowed under this subsection for a taxable year covering a period of less than 12 months, except for a taxable year closed by reason of the death of the taxpayer.
3. No credit may be allowed under this subsection unless it is claimed within the period specified in s. 71.75 (2).
4. If a married couple files a joint return, the maximum amount that may be claimed by the couple under this subsection is $2,000 for each stillbirth.
5. If a married couple files separate returns, the maximum amount that may be claimed by each spouse under this subsection is $1,000 for each stillbirth.
6. If the parents of a stillbirth are unmarried, the maximum amount that may be claimed by each parent under this subsection is $1,000 for each stillbirth.
7. To claim the credit under this subsection, a claimant shall submit, with his or her return for the taxable year to which the claim relates, a copy of the fetal death report relating to the stillbirth for which the credit is claimed.
(d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.
(8s) Additional employer-provided child care credit.
(a) Definitions. In this subsection:
1. “Claimant” means a person who is eligible for and claims the federal employer-provided child care credit for the taxable year to which the claim under this subsection relates.
2. “Federal employer-provided child care credit” means the tax credit under section 45F of the Internal Revenue Code in effect for federal purposes on April 5, 2026.
(b) Filing claims. For taxable years beginning after December 31, 2025, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, an amount equal to the amount of the federal employer-provided child care credit claimed by the claimant on his or her federal income tax return for the taxable year to which the claim under this subsection relates.
(c) Limitations.
1. The credit under this subsection may not be claimed for any amount of the federal employer-provided child care credit claimed for any expenditure paid or incurred for a child care facility located outside this state or for services provided outside this state.
2. A claimant who claims a credit under this subsection and whose federal income tax is increased under section 45F (d) of the Internal Revenue Code shall add to the claimant’s liability for taxes imposed under s. 71.02 an amount equal to the amount that the claimant’s federal income tax is increased under section 45F (d) of the Internal Revenue Code.
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 the amounts of the federal employer-provided child care credit claimed 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.
(d) Administration. Section 71.28 (4) (e) to (h) [Section 71.28 (5b) (e) to (h)], as it applies to the credit under s. 71.28 (4) [s. 71.28 (5b)], applies to the credit under this subsection.
(8t) Rail infrastructure modernization credit.
(a) Definitions. In this subsection:
1. “Claimant” means a person certified to receive tax benefits under s. 238.309 (2) (a).
2. “Qualified new rail infrastructure expenditures” means capital expenditures for rail infrastructure and improvements in this state placed in service after December 31, 2025, including expenditures for the acquisition of right-of-way; engineering; construction of new track such as industrial leads, switches, spurs, and sidings; rehabilitation of existing inactive track to reinstate operation; loading dock improvements; and transloading structures involved with servicing customer locations or expansions.
(b) Filing claims. For taxable years beginning after December 31, 2025, and before January 1, 2031, and subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, an amount equal to 50 percent of the qualified new rail infrastructure expenditures made by the claimant during the taxable year to which the claim relates.
(c) Limitations.
1. No claimant may use an expenditure to claim both a credit under this subsection and a credit under sub. (8v).
2. The total amount of the credits under this subsection and ss. 71.28 (8t) and 71.47 (8t) for a claimant for a taxable year may not exceed $2,000,000 per credit application approved and verified under s. 238.309.
3. No credit may be allowed under this subsection unless the claimant includes with the claimant’s return a copy of the claimant’s verification under s. 238.309.
4. Partnerships, tax-option corporations, and limited liability companies may not claim a credit under this subsection, but the eligibility for, and the amount of, the credit are based on their expenditures made under par. (b). A partnership, tax-option corporation, or limited liability company shall compute the amount of the credit that each of its partners, shareholders, or members may claim and shall provide that information to each of them. Partners of a partnership, shareholders of tax-option corporations, and members of limited liability companies may claim the credit in proportion to their ownership interest.
(d) Administration.
1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection, including credits transferred under par. (e).
2. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 5 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expenditure was made and the year in which the carry-forward credit is claimed.
(e) Transfer.
1. Any person may sell or otherwise transfer a credit claimed under par. (b), in whole or in part, to another person who is subject to the taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and submits with the notification a copy of the transfer documents, and the department approves the transfer. The transferor may file a claim for a credit under par. (b) on a form prescribed by the department at the time of the transfer request. Subject to subd. 2. b., the transferee may first use the credit to offset tax in the taxable year of the transferor in which the transfer occurs, and may use the credit only to offset tax in taxable years otherwise allowed to be claimed and carried forward by the original claimant.
2.
a. If a person’s certification under s. 238.309 (2) (a) is revoked by the Wisconsin Economic Development Corporation and the person used the certification to claim a credit under this subsection and transferred the credit under subd. 1., the person shall add to the person’s liability for taxes imposed under s. 71.02 the total amount of the credits that were credited against Wisconsin income or franchise taxes by the person or by any person to whom the credits were transferred.
b. If a person’s certification under s. 238.309 (2) (a) is revoked by the Wisconsin Economic Development Corporation and the person used the certification to claim a credit under this subsection and transferred the credit under subd. 1., the transferee may not use the credit to offset Wisconsin income or franchise taxes.
(8v) Rail infrastructure maintenance credit.
(a) Definitions. In this subsection:
1. “Claimant” means a person certified to receive tax benefits under s. 238.309 (2) (b).
2. “Qualified short line railroad maintenance expenditures” means all of the following:
a. Gross expenditures for railroad infrastructure rehabilitation or maintenance improvements located in this state, including rail, tie plates, joint bars, fasteners, switches, ballast, subgrade, roadbed, industrial leads, sidings, signs, safety barriers, crossing signals and gates, and related track structures.
b. Gross expenditures for 3rd-party labor related to expenditures described in subd. 2. a.
c. Gross expenditures for wages paid to employees in positions directly related to maintenance activities for expenditures described in subd. 2. a.
(b) Filing claims. For taxable years beginning after December 31, 2025, and before January 1, 2031, and subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, an amount equal to 50 percent of the qualified short line railroad maintenance expenditures made by the claimant during the taxable year to which the claim relates.
(c) Limitations.
1. No credit may be claimed under this subsection for any qualified short line railroad maintenance expenditures that are used to claim a tax credit under federal law or that are funded by a federal or state grant.
2. No claimant may use an expenditure to claim both a credit under this subsection and a credit under sub. (8t).
3. The total amount of the credits under this subsection and ss. 71.28 (8v) and 71.47 (8v) for a claimant for a taxable year may not exceed an amount equal to $5,000 multiplied by the number of miles of railroad track owned or leased by the claimant in this state on December 31 of the taxable year to which the claim applies.
4. No credit may be allowed under this subsection unless the claimant submits an application under s. 238.309 and includes with the claimant’s return a copy of the claimant’s verification under s. 238.309.
5. Partnerships, tax-option corporations, and limited liability companies may not claim a credit under this subsection, but the eligibility for, and the amount of, the credit are based on their expenditures made under par. (b). A partnership, tax-option corporation, or limited liability company shall compute the amount of the credit that each of its partners, shareholders, or members may claim and shall provide that information to each of them. Partners of a partnership, shareholders of tax-option corporations, and members of limited liability companies may claim the credit in proportion to their ownership interest.
(d) Administration.
1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection, including credits transferred under par. (e).
2. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 5 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expenditure was made and the year in which the carry-forward credit is claimed.
(e) Transfer.
1. Any person may sell or otherwise transfer a credit claimed under par. (b), in whole or in part, to another person who is subject to the taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and submits with the notification a copy of the transfer documents, and the department approves the transfer. The transferor may file a claim for a credit under par. (b) on a form prescribed by the department at the time of the transfer request. Subject to subd. 2. b., the transferee may first use the credit to offset tax in the taxable year of the transferor in which the transfer occurs, and may use the credit only to offset tax in taxable years otherwise allowed to be claimed and carried forward by the original claimant.
2.
a. If a person’s certification under s. 238.309 (2) (b) is revoked by the Wisconsin Economic Development Corporation and the person used the certification to claim a credit under this subsection and transferred the credit under subd. 1., the person shall add to the person’s liability for taxes imposed under s. 71.02 the total amount of the credits that were credited against Wisconsin income or franchise taxes by the person or by any person to whom the credits were transferred.
b. If a person’s certification under s. 238.309 (2) (b) is revoked by the Wisconsin Economic Development Corporation and the person used the certification to claim a credit under this subsection and transferred the credit under subd. 1., the transferee may not use the credit to offset Wisconsin income or franchise taxes.
(9) School property tax credit.
(a) In this subsection:
1. “Claimant” means a natural person who files a claim or on whose behalf a claim is filed under this subsection but does not include an estate, fiduciary or trust.
2. “Principal dwelling” means any dwelling, whether owned or rented, and the land surrounding it that is reasonably necessary for use of the dwelling as a primary dwelling of the claimant and may include a part of a multidwelling or multipurpose building and a part of the land upon which it is built that is used as the claimant’s primary dwelling.
3. “Property taxes” means real property taxes, exclusive of special assessments, delinquent interest and charges for service, paid by a claimant on the claimant’s principal dwelling during the taxable year for which credit under this subsection is claimed, less any property taxes paid which are properly includable as a trade or business expense under section 162 of the Internal Revenue Code. If the principal dwelling on which the taxes were paid is owned by 2 or more persons or entities as joint tenants or tenants in common or is owned by spouses as marital property, “property taxes” is that part of property taxes paid that reflects the ownership percentage of the claimant. If the principal dwelling is sold during the taxable year the “property taxes” for the seller and buyer shall be the amount of the tax prorated to each in the closing agreement pertaining to the sale or, if not so provided for in the closing agreement, the tax shall be prorated between the seller and buyer in proportion to months of their respective ownership. “Property taxes” includes monthly municipal permit fees in respect to a principal dwelling collected under s. 66.0435 (3) (c).
4. “Rent constituting property taxes” means 25 percent of rent if heat is not included, or 20 percent of rent if heat is included, paid during the taxable year for which credit is claimed under this subsection, at arm’s length, for the use of a principal dwelling and contiguous land, excluding any payment for domestic, food, medical or other services which are unrelated to use of the dwelling as housing, less any rent paid that is properly includable as a trade or business expense under the internal revenue code. “Rent” includes space rental paid to a landlord for parking a mobile home or manufactured home. Rent shall be apportioned among the occupants of a principal dwelling according to their respective contribution to the total amount of rent paid. “Rent” does not include rent paid for the use of housing which was exempt from property taxation, except housing for which payments in lieu of taxes were made under s. 66.1201 (22).
(b) For taxable years beginning after December 31, 1999, subject to the limitations under this subsection a claimant may claim as a credit against, but not to exceed the amount of, taxes under s. 71.02, 12 percent of the first $2,500 of property taxes or rent constituting property taxes, or 12 percent of the first $1,250 of property taxes or rent constituting property taxes of a married person filing separately.
(c) For an unmarried person or a married person filing a separate return who is a part-year resident of this state, the credit under this subsection is limited to that fraction of the amount determined under this subsection that Wisconsin adjusted gross income is of federal adjusted gross income. No credit is allowed under this subsection for unmarried persons or married persons filing separate returns who are nonresidents of this state. If one spouse is not domiciled in this state during the entire taxable year, the credit on a joint return is determined by multiplying the school property tax credit that would be available to them if both spouses were domiciled in this state during the entire taxable year by a fraction the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income. No credit is allowed under this subsection on a joint return if both spouses are nonresidents of this state.
(d) No credit may be allowed under this subsection unless it is claimed within the period specified in s. 71.75 (2).
(e) In any case in which a principal dwelling is rented by a person from another person under circumstances deemed by the department of revenue to be not at arm’s length, the department may determine rent at arm’s length, and, for purposes of this subsection, such determination shall be final.
(f) The department of revenue, on its forms and instructions, shall refer to the credit under this subsection as the school property tax credit.
(9e) Earned income tax credit.
(aj) For taxable years beginning after December 31, 2010, an individual may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the person is eligible for the taxable year under section 32 of the Internal Revenue Code:
1. If the person has one qualifying child who has the same principal place of abode as the person, 4 percent.
2. If the person has 2 qualifying children who have the same principal place of abode as the person, 11 percent.
3. If the person has 3 or more qualifying children who have the same principal place of abode as the person, 34 percent.
(b) No credit may be allowed under this subsection to married persons, except married persons living apart who are treated as single under section 7703 (b) of the internal revenue code, if the husband and wife report their income on separate income tax returns for the taxable year.
(c) Part-year residents and nonresidents of this state are not eligible for the credit under this subsection.
(d) The department of revenue may enforce the credit under this subsection and may take any action, conduct any proceeding and proceed as it is authorized in respect to taxes under this chapter. The income tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest and penalties apply to the credit under this subsection.
(e) No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).
(f) Except as provided in s. 71.80 (3) and (3m), if the allowable amount of the claim under this subsection exceeds the taxes otherwise due under this chapter or no taxes are due under this chapter, the amount of the claim not used to offset taxes due shall be certified by the department of revenue to the department of administration for payment by check, share draft or other draft drawn from the appropriation under s. 20.835 (2) (f) or (kf).
(9g) Additional child and dependent care tax credit.
(a) Definitions. In this subsection:
1. “Claimant” means an individual who is eligible for and claims the federal child and dependent care tax credit for the taxable year to which the claim under this subsection relates.
2. “Federal child and dependent care tax credit” means the tax credit under section 21 of the Internal Revenue Code.
(b) Filing claims.
1. For taxable years beginning after December 31, 2021, and before January 1, 2024, and subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, an amount equal to 50 percent of the federal child and dependent care tax credit claimed by the claimant on his or her federal income tax return for the taxable year to which the claim under this subsection relates.
2. For taxable years beginning after December 31, 2023, and subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, an amount equal to 100 percent of the federal child and dependent care tax credit that the claimant may claim on his or her federal income tax return for the taxable year to which the claim under this subsection relates using the expense limitation under par. (c) 5. rather than the expense limitation under 26 USC 21 (c).
(c) Limitations.
1. No credit may be allowed under this subsection unless it is claimed within the period under s. 71.75 (2).
2. No credit may be allowed under this subsection for a taxable year covering a period of less than 12 months, except for a taxable year closed by reason of the death of the claimant.
3. The credit under this subsection cannot be claimed by a part-year resident or a nonresident of this state.
4. A claimant who claims the credit under this subsection is subject to the special rules in 26 USC 21 (e) (2) and (4).
5. Notwithstanding 26 USC 21 (c), for taxable years beginning after December 31, 2023, the maximum allowable expenses to determine the amount of the credit under par. (b) 2. is $10,000 for one qualifying individual, as defined in 26 USC 21 (b), and $20,000 for 2 or more qualifying individuals, as defined in 26 USC 21 (b).
(d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.
(9m) Supplement to federal historic rehabilitation credit.
(a)
2m. For taxable years beginning after December 31, 2013, and before January 1, 2026, any person may claim as a credit against taxes otherwise due under s. 71.02, 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, and before January 1, 2026.
3. For taxable years beginning after December 31, 2013, and before January 1, 2026, any person may claim as a credit against taxes otherwise due under s. 71.02, 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 before January 1, 2026, 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.
4.
a. For taxable years beginning after December 31, 2025, any person may claim as a credit against taxes otherwise due under s. 71.02, up to the amount of those taxes, an amount equal to 20 percent of the qualified rehabilitation expenditures for a qualified rehabilitated building located in this state and placed in service after December 31, 2025.
b. For purposes of this subdivision, “qualified rehabilitated building” has the meaning given in section 47 (c) (1) of the Internal Revenue Code, except that a building shall be treated as having been substantially rehabilitated under section 47 (c) (1) (B) (i) of the Internal Revenue Code only if the qualified rehabilitation expenditures during the 24-month period selected by the taxpayer, at the time and in the manner prescribed by federal regulations, and ending with or within the taxable year are at least $50,000.
c. For purposes of this subdivision, “qualified rehabilitation expenditure” has the meaning given in section 47 (c) (2) of the Internal Revenue Code, except that if the claimant does not claim the credit under section 47 of the Internal Revenue Code for the same rehabilitation to which the claim under this subdivision relates, the rehabilitation shall be treated as a certified rehabilitation under section 47 (c) (2) (B) (iv) of the Internal Revenue Code if the state historic preservation officer certifies the rehabilitation as being consistent with the historic character of the property or the district in which the property is located.
(c) No person may claim the credit under par. (a) 2m. or 4. 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:
1. If the claimant claims the credit under section 47 of the Internal Revenue Code for the same rehabilitation, 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. If the claimant does not claim the credit under section 47 of the Internal Revenue Code for the same rehabilitation, evidence that the rehabilitation was approved by the state historic preservation officer before the physical work of construction, or destruction in preparation for construction, began.
2. Evidence that the taxpayer obtained written certification from the state historic preservation officer that:
a. The property is listed on the national register of historic places in Wisconsin or the state register of historic places, or is determined by the state historical society to be eligible for listing on the national register of historic places in Wisconsin or the state register of historic places, or is located in a historic district that is listed in the national register of historic places in Wisconsin or the state register of historic places and is certified by the state historic preservation officer as being of historic significance to the district, or is an outbuilding of an otherwise eligible property certified by the state historic preservation officer as contributing to the historic significance of the property.
b. The proposed preservation or rehabilitation plan complies with standards promulgated under s. 44.02 (24) and the completed preservation or rehabilitation substantially complies with the proposed plan.
c. The costs are not incurred to acquire any building or interest in a building or to enlarge an existing building.
d. The costs were not incurred before the state historical society approved the proposed preservation or rehabilitation plan.
(cm) Any credit claimed under this subsection for Wisconsin purposes shall be claimed at the same time as for federal purposes, regardless of whether the claimant claims the credit for federal purposes.
(d) The Wisconsin adjusted basis of the building shall be reduced by the amount of any credit awarded under this subsection. The Wisconsin adjusted basis of a partner’s interest in a partnership, of a member’s interest in a limited liability company or of stock in a tax-option corporation shall be adjusted to take into account adjustments made under this paragraph.
(e) The provisions of s. 71.28 (5b) (e), (f), (g) and (h), as they apply to the credit under s. 71.28 (5b), apply to the credit under this subsection.
(f) A partnership, limited liability company, or tax-option corporation may not claim the credit under this subsection. The partners of a partnership, members of a limited liability company, or shareholders in a tax-option corporation may claim the credit under this subsection based on eligible costs incurred by the partnership, company, or tax-option corporation. The partnership, limited liability company, or tax-option corporation shall calculate the amount of the credit which may be claimed by each partner, member, or shareholder and shall provide that information to the partner, member, or shareholder. For shareholders of a tax-option corporation, the credit may be allocated in proportion to the ownership interest of each shareholder. Credits computed by a partnership or limited liability company may be claimed in proportion to the ownership interests of the partners or members or allocated to partners or members as provided in a written agreement among the partners or members that is entered into no later than the last day of the taxable year of the partnership or limited liability company, for which the credit is claimed. For a partnership or limited liability company that places property in service after June 29, 2008, and before January 1, 2009, the credit attributable to such property may be allocated, at the election of the partnership or limited liability company, to partners or members for a taxable year of the partnership or limited liability company that ends after June 29, 2008, and before January 1, 2010. Any partner or member who claims the credit as provided under this paragraph shall attach a copy of the agreement, if applicable, to the tax return on which the credit is claimed. A person claiming the credit as provided under this paragraph is solely responsible for any tax liability arising from a dispute with the department of revenue related to claiming the credit.
(g)
1. If a person who claims the credit under par. (a) 2m., 3., or 4. elects to claim the credit based on progress expenditures under section 47 (d) of the Internal Revenue Code, the person shall file an election form with the department, in the manner prescribed by the department.
2. Notwithstanding s. 71.77, the department may adjust or disallow the credit claimed under this subsection within 4 years after the date that the state historical society notifies the department that the expenditures for which the credit was claimed do not comply with the standards for certification promulgated under s. 44.02 (24). If the department adjusts or disallows, in whole or in part, a credit transferred under par. (h), only the person who originally transferred the credit to another person is liable to repay the adjusted or disallowed amount.
(h) Any person, including a nonprofit entity described in section 501 (c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under par. (a) 2m., 3., or 4., in whole or in part, to another person who is subject to the taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and submits with the notification a copy of the transfer documents, and the department certifies ownership of the credit with each transfer. The transferor may file a claim for more than one taxable year on a form prescribed by the department to compute all years of the credit under par. (a) 2m., 3., or 4., at the time of the transfer request. The transferee may first use the credit to offset tax in the taxable year of the transferor in which the transfer occurs and may use the credit only to offset tax in taxable years otherwise allowed to be claimed and carried forward by the original claimant.
(i) If a person who claims a credit under this subsection and a credit under section 47 of the Internal Revenue Code for the same qualified rehabilitation expenditures is required to repay any amount of the credit claimed under section 47 of the Internal Revenue Code, the person shall repay to the department a proportionate amount of the credit claimed under this subsection.
(9r) State historic rehabilitation credit.
(a) For taxable years beginning on or after August 1, 1988, any natural person may credit against taxes otherwise due under s. 71.02 an amount equal to 25 percent of the costs of preservation or rehabilitation of historic property located in this state, including architectural fees and costs incurred in preparing nomination forms for listing in the national register of historic places in Wisconsin or the state register of historic places, if the nomination is made within 5 years prior to submission of a preservation or rehabilitation plan under par. (b) 3. b., and if the physical work of construction or destruction in preparation for construction begins after December 31, 1988, except that the credit may not exceed $10,000, or $5,000 for married persons filing separately, for any preservation or rehabilitation project.
(b) The department of revenue shall approve the credit under this subsection if all of the following conditions are met:
1. The costs are incurred and the claim is submitted by the owner of the historic property.
1m. The costs included in the claim relate only to preservation or rehabilitation work done to any of the following:
a. The exterior of the historic property.
b. The interior of a window sash if work is done to the exterior of the window sash.
c. Structural elements of the historic property.
d. The heating or ventilating systems.
e. Electrical or plumbing systems, but not electrical or plumbing fixtures.
2. The historic property, including outbuildings that contribute to the significance of the historic property, is an owner-occupied personal residence if the residence is not actively used in a trade or business, held for the production of income or held for sale or other disposition in the ordinary course of the claimant’s trade or business.
3. The state historical society certifies that:
a. The property is listed on the national register of historic places in Wisconsin or the state register of historic places, or is determined by the state historical society to be eligible for listing on the national register of historic places in Wisconsin or the state register of historic places, or is located in a historic district which is listed in the national register of historic places in Wisconsin or the state register of historic places and is certified by the state historic preservation officer as being of historic significance to the district, or is an outbuilding of an otherwise eligible property certified by the state historic preservation officer as contributing to the historic significance of the property.
b. The proposed preservation or rehabilitation plan complies with standards promulgated under s. 44.02 (24) and the completed preservation or rehabilitation substantially complies with the proposed plan.
4. The preservation or rehabilitation work is completed within 2 years after the date that the physical work of construction or destruction in preparation for construction begins, except in the case of any preservation or rehabilitation which is initially planned for completion in phases, in which case the work shall be completed within 5 years after the date that the physical work of construction or destruction in preparation for construction begins.
5. The expenditures for preservation or rehabilitation of the historic property exceed $10,000.
6. The costs are not incurred to acquire any building or interest in a building or to enlarge existing building.
7. The costs were not incurred before the state historical society approved the proposed preservation or rehabilitation plan under subd. 3. b.
(c) The Wisconsin adjusted basis of the historic property shall be reduced by the amount of any credit awarded under this subsection.
(f) No natural person may claim a credit under this subsection and under sub. (9m) for the same expenses.
(g) The provisions of s. 71.28 (5b) (f), (g) and (h), as they apply to the credit under s. 71.28 (5b), apply to the credit under this subsection.
(i) If the historic property is owned by 2 or more natural persons that hold legal title or equitable title as a land contract vendee and are not joint tenants, tenants in common or spouses owning marital property, the credit under this subsection may be claimed as follows:
1. For projects benefiting one owner, a natural person may claim the credit based on eligible costs incurred individually.
2. For projects benefiting 2 or more owners, a natural person may claim the credit based on eligible costs incurred by the benefiting owners in proportion to the natural person’s ownership interest.
(j) No natural person may claim the credit under this subsection for rehabilitation of historic property if the historic property was acquired by the claimant under an agreement requiring the claimant to sell or otherwise dispose of the historic property back to the previous owner within 5 years after the date that the historic property was acquired.
(k) A natural person who receives a credit under this subsection shall add to his or her liability for taxes imposed under s. 71.02 one of the following percentages of the amount of the credits received under this subsection for rehabilitating or preserving the property if, within 5 years after the date on which the preservation or rehabilitation work that was the basis of the credit is completed, the person either sells or conveys the property by deed or land contract or the state historical society certifies to the department of revenue that the historic property has been altered to the extent that it does not comply with the standards promulgated under s. 44.02 (24):
1. If the sale, conveyance or noncompliance occurs during the first year after the date on which the preservation or rehabilitation is completed, 100 percent.
2. If the sale, conveyance or noncompliance occurs during the 2nd year after the date on which the preservation or rehabilitation is completed, 80 percent.
3. If the sale, conveyance or noncompliance occurs during the 3rd year after the date on which the preservation or rehabilitation is completed, 60 percent.
4. If the sale, conveyance or noncompliance occurs during the 4th year after the date on which the preservation or rehabilitation is completed, 40 percent.
5. If the sale, conveyance or noncompliance occurs during the 5th year after the date on which the preservation or rehabilitation is completed, 20 percent.
(10) Employee college savings account contribution credit.
(a) Definitions. In this subsection:
1. “Claimant” means an individual who files a claim under this subsection and who is a sole proprietor and an employer and contributes to an employee’s college savings account under par. (b). or who is a partner of a partnership, member of a limited liability company, or shareholder of a tax-option corporation that is an employer and that contributes to an employee’s college savings account under par. (b).
1m. “College savings account” means a college savings account, as described in s. 224.50.
2. “Employee” has the meaning given in s. 71.63 (2).
3. “Employer” means a person for whom an individual performs or performed any service as an employee of that person and who is required to furnish a W-2 form to the employee for federal income tax purposes.
(b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, for each employee of an employer, an amount equal to the amount the employer paid into a college savings account owned by the employee in the taxable year in which the contribution is made.
(c) Limitations.
1. 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 the 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.
2. The maximum amount of the credit per employee that a claimant may claim under this subsection is an amount equal to 50 percent of the amount the employee’s employer contributed to the employee’s college savings account, not to exceed a maximum credit of $800. For taxable years beginning after December 31, 2024, the dollar amount in this subdivision shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2023, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year. The amount that is revised under this subdivision shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the change in the dollar amount required under this subdivision and incorporate the change into the income tax forms and instructions.
3. A credit may be claimed under par. (b) only if, for federal income tax purposes, the compensation of the employee described in par. (b) is reported, or required to be reported, on a W-2 form issued by the claimant.
(d) Administration. Section 71.28 (5b) (e) to (h), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.
(11) Qualifying transportation services credit.
(a) Definitions. In this subsection:
1. “Claimant” means a person who is considered blind under section 63 (f) (4) of the Internal Revenue Code and who files a claim under this subsection.
2. “Qualifying transportation services” means transportation services provided between a person’s place of residence and place of employment by means of mass transit, paratransit, taxicab, or transportation network company, as defined in s. 440.40 (6).
(b) Filing claims. For taxable years beginning after December 31, 2023, and subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, an amount equal to 50 percent of the amount paid by the claimant during the taxable year for qualifying transportation services.
(c) Limitations.
1. No credit may be allowed under this subsection for an amount paid for qualifying transportation services if the source of the payment is an amount withdrawn from an ABLE account described under section 529A (b) (1) of the Internal Revenue Code and if the owner of the account or other person who deposited into the account has claimed a subtraction under s. 71.05 (6) (b) 52. that relates to such an amount.
2. No credit may be allowed under this subsection for an amount paid for qualifying transportation services if the claimant is reimbursed for the amount paid.
3. The maximum amount of the credit that a claimant may claim under this subsection in a taxable year is $1,500.
4. No credit may be allowed under this subsection unless it is claimed within the period specified in s. 71.75 (2).
(d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.
(12) Long-term care insurance assessment credit.
(a) Definitions. In this subsection:
1. “Claimant” means a person who files a claim under this subsection.
2. “Disability insurer” means an insurer classified as a disability insurer under s. 646.51 (3) (bm) 2.
(b) Filing claims. Subject to the limitations provided under this subsection, for taxable years beginning after December 31, 2026, a claimant may claim as a credit against the taxes imposed under s. 71.02, for the taxable year following the taxable year that a claimant pays an assessment under s. 646.51 (3) (bm), and for the immediately following 4 taxable years, an amount equal to 20 percent of the assessment under s. 646.51 (3) (bm) paid by the claimant.
(c) Limitations.
1. A partnership, limited liability company, or tax-option corporation, including a partnership, limited liability company, or tax-option corporation that makes an election under s. 71.21 (6) (a) or 71.365 (4m) (a) to be taxed at the entity level, may claim the credit under par. (b).
2. A partnership’s partners, limited liability company’s members, and tax-option corporation’s shareholders may not claim the credit under par. (b).
(d) Administration.
1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.
2. If the claimant is a disability insurer and if the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.02 or 71.21 (6) (a), the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (de). Notwithstanding s. 71.82 (1) (b), no interest shall be added to amounts certified under this subdivision.
