AB696,2,83 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
4(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3h), (3n), (3p), (3s), (3t), (3w), (5e),
5(5f), (5h), (5i), (5j), and (5k), and (5m) and not passed through by a partnership,
6limited liability company, or tax-option corporation that has added that amount to
7the partnership's, company's, or tax-option corporation's income under s. 71.21 (4)
8or 71.34 (1) (g).

AB696,2,1110 71.07 (5m) Innovation projects and facilities credit. (a) Definitions. In this
11subsection:

AB696,2,1212 1. "Blighted area" has the meaning given in s. 66.1331 (3) (a).

AB696,2,1413 2. "Brownfield" means an industrial or commercial facility the expansion or
14redevelopment of which is complicated by environmental contamination.

AB696,2,1615 3. "Claimant" means a person who is certified to receive tax credits under s.
16560.208 and who files a claim under this subsection.

AB696,2,1917 4. "Eligible innovation project" means any real property, tangible personal
18property, or intangible property related to a new product or process that is based on
19new technology or the creative application of existing technology.

AB696,3,220 5. "Project facility" means any facility located in this state that is operated for
21the purpose of creating and maintaining an eligible innovation project, if the

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1operation of the facility is likely to create new jobs, or preserve existing jobs, in this
2state, as determined by the department of commerce.

AB696,3,73 (b) Filing claims. Subject to the limitations provided under this subsection and
4s. 560.208, for taxable years beginning after December 31, 2006, a claimant may
5claim as a credit against the tax imposed under s. 71.02, up to the amount of the tax,
6an amount that is equal to the following costs paid by the claimant in the taxable
7year:

AB696,3,128 1. Except as provided in subd. 3., 75 percent of the costs of acquiring,
9constructing, reconstructing, rehabilitating, renovating, enlarging, or improving a
10project facility or eligible innovation project and 75 percent of the costs of all of the
11following related to creating and operating a project facility or to creating and
12maintaining an eligible innovation project:

AB696,3,1513 a. Designs, plans, specifications, surveys, studies, estimates, and any similar
14services or items that are necessary or incidental to determining the feasibility or
15practicality of a project facility or eligible innovation project.

AB696,3,1616 b. Site clearance and preparation.

AB696,3,1717 c. Architectural, engineering, or legal services.

AB696,3,1818 d. Marketing products.

AB696,3,2119 2. The costs of equipping a project facility and the costs of all of the following
20related to creating and operating a project facility or to creating and maintaining an
21eligible innovation project:

AB696,3,2222 a. Research and development.

AB696,3,2323 b. Computer software or hardware.

AB696,3,2424 c. Product testing and other quality control activities.

AB696,3,2525 d. Perfecting products.

AB696,4,1

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1e. Creating and protecting intellectual property.

AB696,4,52 3. If the project facility or eligible innovation project is a brownfield or located
3in a blighted area, and if the brownfield or blighted area is not otherwise being
4remediated with moneys received from the state, 100 percent of the costs described
5in subd. 1.

AB696,4,76 (c) Limitations. 1. The maximum amount of the credit that a claimant may
7claim under this subsection in a taxable year is $500,000.

AB696,4,98 2. The maximum amount of the credits that may be awarded under this
9subsection and ss. 71.28 (5m) and 71.47 (5m) in each year is $10,000,000.

AB696,4,1710 3. Partnerships, limited liability companies, and tax-option corporations may
11not claim the credit under this subsection, but the eligibility for, and the amount of,
12the credit are based on their payment of amounts under par. (b). A partnership,
13limited liability company, or tax-option corporation shall compute the amount of
14credit that each of its partners, members, or shareholders may claim and shall
15provide that information to each of them. Partners, members of limited liability
16companies, and shareholders of tax-option corporations may claim the credit in
17proportion to their ownership interests.

AB696,4,1918 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
19s. 71.28 (4), applies to the credit under this subsection.

AB696,4,2121 71.10 (4) (cd) Innovation projects and facilities credit under s. 71.07 (5m).

AB696,5,224 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
25(2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3h), (3n), (3p), (3s), (3t), (3w), (5e), (5f), (5g),

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1(5h), (5i), (5j), and (5k), and (5m) and passed through to partners shall be added to
2the partnership's income.

AB696,5,225 71.26 (2) (a) Corporations in general. The "net income" of a corporation means
6the gross income as computed under the Internal Revenue Code as modified under
7sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
8computed under s. 71.28 (1), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c)
97., the amount of the credit under s. 71.28 (3) that the taxpayer added to income
10under this paragraph at the time that the taxpayer first claimed the credit plus the
11amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm),
12(1ds), (1dx), (3g), (3h), (3n), (3p), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k), and
13(5m) and not passed through by a partnership, limited liability company, or
14tax-option corporation that has added that amount to the partnership's, limited
15liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1)
16(g) plus the amount of losses from the sale or other disposition of assets the gain from
17which would be wholly exempt income, as defined in sub. (3) (L), if the assets were
18sold or otherwise disposed of at a gain and minus deductions, as computed under the
19Internal Revenue Code as modified under sub. (3), plus or minus, as appropriate, an
20amount equal to the difference between the federal basis and Wisconsin basis of any
21asset sold, exchanged, abandoned, or otherwise disposed of in a taxable transaction
22during the taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).

AB696,5,2524 71.28 (5m) Innovation projects and facilities credit. (a) Definitions. In this
25subsection:

AB696,6,1

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11. "Blighted area" has the meaning given in s. 66.1331 (3) (a).

AB696,6,32 2. "Brownfield" means an industrial or commercial facility the expansion or
3redevelopment of which is complicated by environmental contamination.

AB696,6,54 3. "Claimant" means a person who is certified to receive tax credits under s.
5560.208 and who files a claim under this subsection.

AB696,6,86 4. "Eligible innovation project" means any real property, tangible personal
7property, or intangible property related to a new product or process that is based on
8new technology or the creative application of existing technology.

AB696,6,129 5. "Project facility" means any facility located in this state that is operated for
10the purpose of creating and maintaining an eligible innovation project, if the
11operation of the facility is likely to create new jobs, or preserve existing jobs, in this
12state, as determined by the department of commerce.