SB461,9,99 71.49 (1) (dn) Supplement to federal new markets credit under s. 71.47 (5n).
SB461, s. 8 10Section 8. 76.639 of the statutes is created to read:
SB461,9,16 1176.639 New markets credit. (1) Filing claims. Subject to the limitations
12provided under this section and s. 560.2065, an insurer may claim as a credit against
13the fees imposed under s. 76.60, 76.63, 76.65, 76.66, or 76.27 the amount the insurer
14paid to a qualified community development entity, as defined under 26 USC 45D (c),
15for a qualified equity investment, as defined under 26 USC 45D (b), at its original
16issue, multiplied by the following percentage:
SB461,9,1817 1. For the taxable years that correspond to the first 3 credit allowance dates,
18as defined under 26 USC 45D (a) (3), 5 percent.
SB461,9,2119 2. For the taxable years that correspond to the 4 credit allowance dates, as
20defined under 26 USC 45D (a) (3), following the credit allowance dates described in
21subd. 1., 6 percent.
SB461,9,24 22(2) Limitations. No credit may be allowed under this section unless the insurer
23includes with the insurer's annual return under s. 76.64 a copy of the claimant's
24certification for tax benefits under s. 560.2065 (2).
SB461,10,6
1(3) Carry-forward. If the credit under sub. (2) is not entirely offset against the
2fees under s. 76.60, 76.63, 76.65, 76.66, or 76.67 otherwise due, the unused balance
3may be carried forward and credited against those fees for the following 15 years to
4the extent that it is not offset by those fees otherwise due in all the years between
5the year in which the expense was made and the year in which the carry-forward
6credit is claimed.
SB461, s. 9 7Section 9. 560.2065 of the statutes is created to read:
SB461,10,9 8560.2065 Supplement to federal new markets credit. (1) Definitions.
9In this section:
SB461,10,1110 (a) "Credit allowance date" means a credit allowance date as defined under 26
11USC 45D
(a) (3).
SB461,10,1312 (b) "Qualified community development entity" means a qualified community
13development entity as defined under 26 USC 45D (c).
SB461,10,1514 (c) "Qualified equity investment" means a qualified equity investment as
15defined under 26 USC 45D (b).
SB461,10,17 16(2) Certification. The department may certify a person to receive tax benefits
17under this section if all of the following apply:
SB461,10,2018 (a) The person applies to the department for certification under this section and
19includes with the application documentation from the federal internal revenue
20service indicating that all of the following apply:
SB461,10,2221 1. The person made a qualified equity investment in a qualified community
22development entity described in subd. 2.
SB461,10,2523 2. The qualified community development entity's primary mission is serving,
24or providing investment capital for, low-income communities or low-income persons
25in this state.
SB461,11,2
13. The person is eligible to receive new markets tax credits under 26 USC 45D
2for the qualified equity investment described in subd. 1.
SB461,11,33 (b) The department verifies the information submitted under par. (a).
SB461,11,8 4(3) Eligibility. A person certified under sub. (2) is eligible to receive tax credits
5under ss. 71.07 (5n), 71.28 (5n), 71.47 (5n), and 76.639 in each taxable year in which
6a credit allowance date falls if the person continues to hold the qualified equity
7investment described in sub. (2) (a) 1. in the taxable year in which the credit is
8claimed.
SB461,11,10 9(4) Duties of the department. (a) The department of commerce shall notify
10the department of revenue of all of the following:
SB461,11,1211 1. Every certification issued under sub. (2) and the date on which any such
12certification is revoked.
SB461,11,1513 2. The maximum amount of the tax credits under ss. 71.07 (5n), 71.28 (5n),
1471.47 (5n), and 76.639 that a person certified under sub. (2) may claim in each taxable
15year in which a credit allowance date falls.
SB461,11,1916 (b) Annually, the department shall verify to the department of revenue that
17each person certified under sub. (2) is the holder of a qualified equity investment in
18the taxable year for which the person files a claim under s. 71.07 (5n), 71.28 (5n),
1971.47 (5n), or 76.639.
SB461,11,2120 (c) The department shall promulgate rules to administer this program,
21including all of the following:
SB461,11,2322 1. Deadlines for the submission of an application for certification under this
23section.
SB461,11,2524 2. The period for review of applications submitted under this section, which
25period may not exceed 45 days.
SB461,12,2
13. Criteria for reviewing and prioritizing applications for certification under
2this section.
SB461,12,53 (d) In consultation with the department of revenue, the department of
4commerce may promulgate rules governing the recapture of tax benefits awarded to
5a person certified under this section.
SB461, s. 10 6Section 10. Nonstatutory provisions.
SB461,12,107 (1) (a) The department of commerce shall submit in proposed form the rules
8required under section 560.2065 (4) (c) of the statutes, as created by this act, to the
9legislative council staff under section 227.15 (1) of the statutes no later than the first
10day of the 4th month beginning after the effective date of this paragraph.
SB461,12,1911 (b) Using the procedure under section 227.24 of the statutes, the department
12of commerce may promulgate rules required under section 560.2065 (4) (c) of the
13statutes, as created by this act, for the period before the effective date of the rules
14submitted under paragraph (a), but not to exceed the period authorized under section
15227.24 (1) (c) and (2) of the statutes. Notwithstanding section 227.24 (1) (a), (2) (b),
16and (3) of the statutes, the department is not required to provide evidence that
17promulgating a rule under this paragraph as an emergency rule is necessary for the
18preservation of the public peace, health, safety, or welfare and is not required to
19provide a finding of emergency for a rule promulgated under this paragraph.
SB461, s. 11 20Section 11. Initial applicability.
SB461,12,2121 (1) This act first applies to taxable years beginning on January 1, 2010.
SB461,12,2222 (End)
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