SB74,2,62 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 (5j) 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).

SB74,2,98 71.07 (5j) Innovation projects and facilities credit. (a) Definitions. In this
9subsection:

SB74,2,1010 1. "Blighted area" has the meaning given in s. 66.1331 (3) (a).

SB74,2,1211 2. "Brownfield" means an industrial or commercial facility the expansion or
12redevelopment of which is complicated by environmental contamination.

SB74,2,1413 3. "Claimant" means a person who is certified to receive tax credits under s.
14560.207 and who files a claim under this subsection.

SB74,2,1715 4. "Eligible innovation project" means any real property, tangible personal
16property, or intangible property related to a new product or process that is based on
17new technology or the creative application of existing technology.

SB74,2,2118 5. "Project facility" means any facility located in this state that is operated for
19the purpose of creating and maintaining an eligible innovation project, if the
20operation of the facility is likely to create new jobs, or preserve existing jobs, in this
21state, as determined by the department of commerce.

SB74,3,5

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1(b) Filing claims. Subject to the limitations provided under this subsection and
2s. 560.207, for taxable years beginning after December 31, 2006, a claimant may
3claim as a credit against the tax imposed under s. 71.02, up to the amount of the tax,
4an amount that is equal to the following costs paid by the claimant in the taxable
5year:

SB74,3,106 1. Except as provided in subd. 3., 75 percent of the costs of acquiring,
7constructing, reconstructing, rehabilitating, renovating, enlarging, or improving a
8project facility or eligible innovation project and 75 percent of the costs of all of the
9following related to creating and operating a project facility or to creating and
10maintaining an eligible innovation project:

SB74,3,1311 a. Designs, plans, specifications, surveys, studies, estimates, and any similar
12services or items that are necessary or incidental to determining the feasibility or
13practicality of a project facility or eligible innovation project.

SB74,3,1414 b. Site clearance and preparation.

SB74,3,1515 c. Architectural, engineering, or legal services.

SB74,3,1616 d. Marketing products.

SB74,3,1917 2. The costs of equipping a project facility and the costs of all of the following
18related to creating and operating a project facility or to creating and maintaining an
19eligible innovation project:

SB74,3,2020 a. Research and development.

SB74,3,2121 b. Computer software or hardware.

SB74,3,2222 c. Product testing and other quality control activities.

SB74,3,2323 d. Perfecting products.

SB74,3,2424 e. Creating and protecting intellectual property.

SB74,4,4

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13. If the project facility or eligible innovation project is a brownfield or located
2in a blighted area, and if the brownfield or blighted area is not otherwise being
3remediated with moneys received from the state, 100 percent of the costs described
4in subd. 1.

SB74,4,65 (c) Limitations. 1. The maximum amount of the credit that a claimant may
6claim under this subsection in a taxable year is $500,000.

SB74,4,87 2. The maximum amount of the credits that may be awarded under this
8subsection and ss. 71.28 (5j) and 71.47 (5j) in each year is $10,000,000.

SB74,4,169 3. Partnerships, limited liability companies, and tax-option corporations may
10not claim the credit under this subsection, but the eligibility for, and the amount of,
11the credit are based on their payment of amounts under par. (b). A partnership,
12limited liability company, or tax-option corporation shall compute the amount of
13credit that each of its partners, members, or shareholders may claim and shall
14provide that information to each of them. Partners, members of limited liability
15companies, and shareholders of tax-option corporations may claim the credit in
16proportion to their ownership interests.

SB74,4,1817 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
18s. 71.28 (4), applies to the credit under this subsection.

SB74,4,2020 71.10 (4) (gwd) Innovation projects and facilities credit under s. 71.07 (5j).

SB74,4,2422 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
23(2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3n), (3s), (3t), (3w), (5b), (5e), (5f), (5g), and (5h),
24and (5j) and passed through to partners shall be added to the partnership's income.

SB74,5,18

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171.26 (2) (a) Corporations in general. The "net income" of a corporation means
2the gross income as computed under the Internal Revenue Code as modified under
3sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
4computed under s. 71.28 (1), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c)
57., the amount of the credit under s. 71.28 (3) that the taxpayer added to income
6under this paragraph at the time that the taxpayer first claimed the credit plus the
7amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm),
8(1ds), (1dx), (3g), (3n), (3t), (3w), (5b), (5e), (5f), (5g), and (5h), and (5j) and not passed
9through by a partnership, limited liability company, or tax-option corporation that
10has added that amount to the partnership's, limited liability company's, or
11tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus the amount
12of losses from the sale or other disposition of assets the gain from which would be
13wholly exempt income, as defined in sub. (3) (L), if the assets were sold or otherwise
14disposed of at a gain and minus deductions, as computed under the Internal Revenue
15Code as modified under sub. (3), plus or minus, as appropriate, an amount equal to
16the difference between the federal basis and Wisconsin basis of any asset sold,
17exchanged, abandoned, or otherwise disposed of in a taxable transaction during the
18taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).

SB74,5,2120 71.28 (5j) Innovation projects and facilities credit. (a) Definitions. In this
21subsection:

SB74,5,2222 1. "Blighted area" has the meaning given in s. 66.1331 (3) (a).

SB74,5,2423 2. "Brownfield" means an industrial or commercial facility the expansion or
24redevelopment of which is complicated by environmental contamination.

SB74,6,2

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13. "Claimant" means a person who is certified to receive tax credits under s.
2560.206 and who files a claim under this subsection.

SB74,6,53 4. "Eligible innovation project" means any real property, tangible personal
4property, or intangible property related to a new product or process that is based on
5new technology or the creative application of existing technology.

SB74,6,96 5. "Project facility" means any facility located in this state that is operated for
7the purpose of creating and maintaining an eligible innovation project, if the
8operation of the facility is likely to create new jobs, or preserve existing jobs, in this
9state, as determined by the department of commerce.