SB334,2,62 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
3(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3n), (3s), (3t), (3w), (5b), (5d), [and]
4(5e), (5f), and (5h) and not passed through by a partnership, limited liability
5company, or tax-option corporation that has added that amount to the partnership's,
6company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).

SB334,2,108 71.07 (5b) (c) 1. The maximum amount of the credits that may be claimed under
9this subsection, sub. (5d), and ss. 71.28 (5b) and 71.47 (5b) for all taxable years
10combined is $35,000,000 $65,000,000.

SB334,2,1412 71.07 (5d) (c) 1. The maximum amount of the credits that may be claimed under
13this subsection, sub. (5b), and ss. 71.28 (5b) and 71.47 (5b) for all taxable years
14combined is $30,000,000 $65,000,000.

SB334,3,3

---

171.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
2(2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3n), (3s), (3t), (3w), (5b), (5e), (5f), (5g), and (5h)
3and passed through to partners shall be added to the partnership's income.

SB334,3,225 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), (3n), (3t), (3w), (5b), (5e), (5f), (5g), and (5h) and not passed through
13by a partnership, limited liability company, or tax-option corporation that has added
14that amount to the partnership's, limited liability company's, or tax-option
15corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from
16the sale or other disposition of assets the gain from which would be wholly exempt
17income, as defined in sub. (3) (L), if the assets were sold or otherwise disposed of at
18a gain and minus deductions, as computed under the Internal Revenue Code as
19modified under sub. (3), plus or minus, as appropriate, an amount equal to the
20difference between the federal basis and Wisconsin basis of any asset sold,
21exchanged, abandoned, or otherwise disposed of in a taxable transaction during the
22taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).

SB334,4,3

---

171.28 (5b) (c) 1. The maximum amount of the credits that may be claimed under
2this subsection and ss. 71.07 (5b) and (5d) and 71.47 (5b) for all taxable years
3combined is $35,000,000 $65,000,000.

SB334,4,75 71.34 (1) (g) An addition shall be made for credits computed by a tax-option
6corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g),
7(3n), (3t), (3w), (5b), (5e), (5f), (5g), and (5h) and passed through to shareholders.

SB334,4,149 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
10computed under s. 71.47 (1dd) to (1dx), (3n), (3w), (5b), (5e), (5f), (5g), and (5h) and
11not passed through by a partnership, limited liability company, or tax-option
12corporation that has added that amount to the partnership's, limited liability
13company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) and
14the amount of credit computed under s. 71.47 (1), (3), (3t), (4), and (5).

SB334,4,1816 71.47 (5b) (c) 1. The maximum amount of the credits that may be claimed under
17this subsection and ss. 71.07 (5b) and (5d) and 71.28 (5b) for all taxable years
18combined is $35,000,000 $65,000,000.

SB334,5,920 77.92 (4) "Net business income," with respect to a partnership, means taxable
21income as calculated under section 703 of the Internal Revenue Code; plus the items
22of income and gain under section 702 of the Internal Revenue Code, including taxable
23state and municipal bond interest and excluding nontaxable interest income or
24dividend income from federal government obligations; minus the items of loss and
25deduction under section 702 of the Internal Revenue Code, except items that are not

---

1deductible under s. 71.21; plus guaranteed payments to partners under section 707
2(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
3(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3s), (3n), (3t), (3w), (5b), (5e), (5f),
4(5g), and (5h); and plus or minus, as appropriate, transitional adjustments,
5depreciation differences, and basis differences under s. 71.05 (13), (15), (16), (17), and
6(19); but excluding income, gain, loss, and deductions from farming. "Net business
7income," with respect to a natural person, estate, or trust, means profit from a trade
8or business for federal income tax purposes and includes net income derived as an
9employee as defined in section 3121 (d) (3) of the Internal Revenue Code.

SB334,5,1611 560.205 (1) (f) It is engaged in, or has committed to engage in, manufacturing,
12agriculture, or processing or assembling products and conducting research and
13development or developing a new product or business process. The fact that a
14business is testing or producing a product at the time that the business seeks
15certification under this subsection shall not preclude the business from being
16certified under this subsection.

SB334,5,1918 560.205 (1) (h) It Except as provided in rules promulgated under sub. (3) (d),
19it has less than 100 employees.

SB334,6,1321 560.205 (3) (d) Rules. The department of commerce, in consultation with the
22department of revenue, shall promulgate rules to administer this section. The rules
23shall further define "bona fide angel investment" for purposes of s. 71.07 (5d) (a) 1.
24The rules shall provide that, for purposes of certifying businesses under sub. (1), the
25department shall give preference to businesses with less than 100 employees, but

---

1may certify businesses with 100 employees or more and allow tax credits in lesser
2amounts, based on a sliding scale, for investments in such businesses. The rules
3shall limit the aggregate amount of tax credits under s. 71.07 (5d) that may be
4claimed for investments in businesses certified under sub. (1) at $3,000,000 per
5calendar year for calendar years beginning after December 31, 2004 , and before
6January 1, 2008. The rules shall also limit the aggregate amount of the tax credits
7under ss. 71.07 (5b), 71.28 (5b), and 71.47 (5b) that may be claimed for investments
8paid to fund managers certified under sub. (2) at $3,500,000 per calendar year for
9calendar years beginning after December 31, 2004, and before January 1, 2008. The
10rules shall also limit the aggregate amount of the tax credits under ss. 71.07 (5b) and
11(5d), 71.28 (5b), and 71.47 (5b) that may be claimed for investments under subs. (1)
12and (2) at $6,500,000 per calendar year for calendar years beginning after December
1331, 2007.