SB139,8,1313 a. Advanced computing devices, including computer hardware and software.
SB139,8,1414 b. Data communications.
SB139,8,1515 c. Information technology.
SB139,8,1716 d. Laboratory materials used exclusively for nanotechnology research and
17development.
SB139,8,2018 (c) Limitations. 1. The maximum amount of the credits that may be allocated
19to all claimants under this subsection and ss. 71.07 (5i) and 71.47 (5i) in each fiscal
20year is $2,500,000, as determined by the department of commerce under s. 560.207.
SB139,8,2321 2. No credit may be allowed under this subsection unless the claimant submits
22with the claimant's return a copy of the claimant's certification for and allocation of
23credits under s. 560.207.
SB139,9,624 3. Partnerships, limited liability companies, and tax-option corporations may
25not claim the credit under this subsection, but the eligibility for, and the amount of,

1the credit are based on their payment of amounts under par. (b). A partnership,
2limited liability company, or tax-option corporation shall compute the amount of
3credit that each of its partners, members, or shareholders may claim and shall
4provide that information to each of them. Partners, members of limited liability
5companies, and shareholders of tax-option corporations may claim the credit in
6proportion to their ownership interests.
SB139,9,87 (d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit
8under sub. (4), applies to the credit under this subsection.
SB139,9,149 2. If a credit computed under this subsection is not entirely offset against
10Wisconsin income or franchise taxes otherwise due, the unused balance may be
11carried forward and credited against Wisconsin income or franchise taxes otherwise
12due for the following 10 taxable years to the extent not offset by these taxes otherwise
13due in all intervening years between the year in which the expense was incurred and
14the year in which the carry-forward credit is claimed.
SB139, s. 8 15Section 8. 71.30 (3) (dq) of the statutes is created to read:
SB139,9,1616 71.30 (3) (dq) Nanotechnology credit under s. 71.28 (5i).
SB139, s. 9 17Section 9. 71.34 (1) (g) of the statutes is amended to read:
SB139,9,2118 71.34 (1) (g) An addition shall be made for credits computed by a tax-option
19corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g),
20(3n), (3t), (3w), (5b), (5e), (5f), (5g), and (5h) , and (5i) and passed through to
21shareholders.
SB139, s. 10 22Section 10. 71.45 (2) (a) 10. of the statutes is amended to read:
SB139,9,2523 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
24computed under s. 71.47 (1dd) to (1dx), (3n), (3w), (5b), (5e), (5f), (5g), and (5h), and
25(5i)
and not passed through by a partnership, limited liability company, or tax-option

1corporation that has added that amount to the partnership's, limited liability
2company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) and
3the amount of credit computed under s. 71.47 (1), (3), (3t), (4), and (5).
SB139, s. 11 4Section 11. 71.47 (5i) of the statutes is created to read:
SB139,10,55 71.47 (5i) Nanotechnology credit. (a) Definitions. In this subsection:
SB139,10,66 1. "Claimant" means a person who files a claim under this subsection.
SB139,10,97 2. "Consortium" means 2 or more public institutions of higher education that
8are conducting substantially similar qualified research or working on components
9of the same qualified research.
SB139,10,1010 3. "Manufacturing" has the meaning given in s. 77.54 (6m).
SB139,10,1311 4. "Nanotechnology" means the science and technology that enables a person
12to understand, measure, manipulate, and manufacture materials at the atomic,
13molecular, and supermolecular levels.
SB139,10,1914 5. "Nanotechnology business" means a business, as certified by the department
15of commerce in the manner prescribed by the department of commerce, that is
16primarily engaged in applying nanotechnologies to create new applications or
17processes, or modify existing applications or processes, in order to make useful
18processes and products related to health care, energy, food production,
19manufacturing, biotechnology, information technology, or the environment.
SB139,10,2520 6. "Qualified research" means qualified research as defined under section 41
21(d) (1) of the Internal Revenue Code, except that research conducted by a public or
22private institution of higher education or a consortium, or a combination thereof, is
23"qualified research" if the research is intended to be useful in developing a new or
24improved product or service and the research satisfies section 41 (d) (1) (B) (i) and
25(C) of the Internal Revenue Code.
SB139,11,2
17. "Used exclusively" means used to the exclusion of all other uses except for
2use not exceeding 5 percent of total use.
SB139,11,63 (b) Filing claims. Subject to the limitations provided in this subsection and s.
4560.207, for taxable years beginning on or after July 1, 2008, a claimant may claim
5as a credit against the taxes imposed under s. 71.43, up to the amount of the taxes,
6any of the following amounts that the claimant paid in the taxable year:
SB139,11,117 1. The taxes imposed under subch. III of ch. 77 on the purchase of machines and
8processing equipment, including accessories, attachments, and parts for the
9machines or equipment, that are used exclusively and directly by the claimant in the
10claimant's nanotechnology business for qualified research and manufacturing, if the
11research and manufacturing occurs in this state.
SB139,11,1512 2. Payments to a public or private institution of higher education, or to a
13consortium, for research, equipment, or the use of research facilities, or other
14qualified expenses as determined by the department of commerce, that are directly
15related to nanotechnology.
SB139,11,1816 3. The taxes imposed under subch. III of ch. 77 on the purchase of any of the
17following that are used by the claimant's nanotechnology business for research and
18development that occurs in this state:
SB139,11,1919 a. Advanced computing devices, including computer hardware and software.
SB139,11,2020 b. Data communications.
SB139,11,2121 c. Information technology.
SB139,11,2322 d. Laboratory materials used exclusively for nanotechnology research and
23development.
SB139,12,3
1(c) Limitations. 1. The maximum amount of the credits that may be allocated
2to all claimants under this subsection and ss. 71.07 (5i) and 71.28 (5i) in each fiscal
3year is $2,500,000, as determined by the department of commerce under s. 560.207.
SB139,12,64 2. No credit may be allowed under this subsection unless the claimant submits
5with the claimant's return a copy of the claimant's certification for and allocation of
6credits under s. 560.207.
SB139,12,147 3. Partnerships, limited liability companies, and tax-option corporations may
8not claim the credit under this subsection, but the eligibility for, and the amount of,
9the credit are based on their payment of amounts under par. (b). A partnership,
10limited liability company, or tax-option corporation shall compute the amount of
11credit that each of its partners, members, or shareholders may claim and shall
12provide that information to each of them. Partners, members of limited liability
13companies, and shareholders of tax-option corporations may claim the credit in
14proportion to their ownership interests.
SB139,12,1615 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
16credit under s. 71.28 (4), applies to the credit under this subsection.
SB139,12,2217 2. If a credit computed under this subsection is not entirely offset against
18Wisconsin income or franchise taxes otherwise due, the unused balance may be
19carried forward and credited against Wisconsin income or franchise taxes otherwise
20due for the following 10 taxable years to the extent not offset by these taxes otherwise
21due in all intervening years between the year in which the expense was incurred and
22the year in which the carry-forward credit is claimed.
SB139, s. 12 23Section 12. 71.49 (1) (dq) of the statutes is created to read:
SB139,12,2424 71.49 (1) (dq) Nanotechnology credit under s. 71.47 (5i).
SB139, s. 13 25Section 13. 77.92 (4) of the statutes is amended to read:
SB139,13,15
177.92 (4) "Net business income," with respect to a partnership, means taxable
2income as calculated under section 703 of the Internal Revenue Code; plus the items
3of income and gain under section 702 of the Internal Revenue Code, including taxable
4state and municipal bond interest and excluding nontaxable interest income or
5dividend income from federal government obligations; minus the items of loss and
6deduction under section 702 of the Internal Revenue Code, except items that are not
7deductible under s. 71.21; plus guaranteed payments to partners under section 707
8(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
9(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3s), (3n), (3t), (3w), (5b), (5e), (5f),
10(5g), and (5h), and (5i); and plus or minus, as appropriate, transitional adjustments,
11depreciation differences, and basis differences under s. 71.05 (13), (15), (16), (17), and
12(19); but excluding income, gain, loss, and deductions from farming. "Net business
13income," with respect to a natural person, estate, or trust, means profit from a trade
14or business for federal income tax purposes and includes net income derived as an
15employee as defined in section 3121 (d) (3) of the Internal Revenue Code.
SB139, s. 14 16Section 14. 560.207 of the statutes is created to read:
SB139,13,19 17560.207 Nanotechnology tax credits. (1) The department shall implement
18a program for certifying businesses as eligible for tax credits under ss. 71.07 (5i),
1971.28 (5i), and 71.47 (5i).
SB139,13,25 20(2) If the department certifies a business as eligible under sub. (1), the
21department shall determine the amount of expenditures by the business that meet
22the requirements of s. 71.07 (5i) (b) 1. to 3., 71.28 (5i) (b) 1. to 3., or 71.47 (5i) (b) 1.
23to 3. and shall determine the amount of tax credits to be allocated to the business.
24The total amount of tax credits allocated to all eligible businesses may not exceed
25$2,500,000 per fiscal year.
SB139,14,3
1(3) The department of commerce shall notify the department of revenue of
2every business certified under sub. (1) and the amount of tax credits allocated to the
3business under sub. (2).
SB139, s. 15 4Section 15. Nonstatutory provisions.
SB139,14,165 (1) Notwithstanding section 227.24 of the statutes, the department of
6commerce may promulgate emergency rules necessary to administer section 560.207
7of the statutes, as created by this act. Notwithstanding section 227.24 (1) (c) and (2)
8of the statutes, emergency rules promulgated under this subsection remain in effect
9until the effective date of permanent rules promulgated to administer section
10560.207 of the statutes, as created by this act, or the first day of the 13th month after
11the effective date of this subsection, whichever is sooner. Notwithstanding section
12227.24 (1) (a) and (3) of the statutes, the department of commerce is not required to
13provide evidence that promulgating a rule under this subsection as an emergency
14rule is necessary for the preservation of the public peace, health, safety, or welfare
15and is not required to provide a finding of emergency for a rule promulgated under
16this subsection.
SB139,14,1717 (End)
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