LRB-1004/1
JK:jld:jf
2011 - 2012 LEGISLATURE
February 4, 2011 - Introduced by Representatives Seidel, Barca, Molepske Jr,
Turner, Milroy, Fields, Parisi, Hintz, Berceau, Bernard Schaber,
Pope-Roberts, Jorgensen and Clark, cosponsored by Senators Hansen,
Holperin and Taylor. Referred to Committee on Jobs, Economy and Small
Business.
AB15,1,6
1An Act to amend 71.05 (6) (a) 15., 71.08 (1) (intro.), 71.10 (4) (i), 71.21 (4), 71.26
2(2) (a) 4., 71.30 (3) (f), 71.34 (1k) (g), 71.45 (2) (a) 10., 71.49 (1) (f) and 77.92 (4);
3and
to create 20.835 (2) (cp), 71.07 (6g), 71.28 (6g) and 71.47 (6g) of the
4statutes;
relating to: an income and franchise tax credit for businesses that
5purchase goods and services from Wisconsin vendors and making an
6appropriation.
Analysis by the Legislative Reference Bureau
Under current law, a business located in an enterprise zone may claim an
income and franchise tax credit in an amount up to 1 percent of the amount that the
business paid in the taxable year to purchase tangible personal property, goods, or
services from a vendor located in this state. If the credit amount exceeds the tax
liability of the business, the business receives a refund.
Under this bill, a business located in this state, but not in an enterprise zone,
may also claim a credit equal to 1 percent of the amount that the business paid in the
taxable year to purchase tangible personal property, goods, or services from a vendor
located in this state. If the credit amount exceeds the tax liability of the business,
the business receives a refund.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB15, s. 1
1Section
1. 20.835 (2) (cp) of the statutes is created to read:
AB15,2,32
20.835
(2) (cp)
Supply chain credit. A sum sufficient to make the payments
3under ss. 71.07 (6g) (d) 2., 71.28 (6g) (d) 2., and 71.47 (6g) (d) 2.
AB15, s. 2
4Section
2. 71.05 (6) (a) 15. of the statutes is amended to read:
AB15,2,105
71.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
6(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
7(3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k), (5r), (5rm),
(6g), and (8r) and
8not passed through by a partnership, limited liability company, or tax-option
9corporation that has added that amount to the partnership's, company's, or
10tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
AB15, s. 3
11Section
3. 71.07 (6g) of the statutes is created to read:
AB15,2,1212
71.07
(6g) Supply chain credit. (a)
Definitions. In this subsection:
AB15,2,1313
1. "Claimant" means a person who files a claim under this subsection.
AB15,2,1514
2. "Wisconsin vendor" means a business located in this state that sells tangible
15personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d).
AB15,3,216
(b)
Filing claims. Subject to the limitations provided in this subsection, for
17taxable years beginning after December 31, 2010, a claimant may claim as a credit
18against the tax imposed under s. 71.02 or 71.08, 1 percent of the amount that the
19claimant paid in the taxable year to purchase tangible personal property, items,
20property, or goods under s. 77.52 (1) (b), (c), or (d), or services from Wisconsin vendors,
1except that the claimant may not claim the credit under this subsection and sub. (3w)
2(bm) 3. and 4. for the same expenditures.
AB15,3,103
(c)
Limitations. Partnerships, limited liability companies, and tax-option
4corporations may not claim the credit under this subsection, but the eligibility for,
5and the amount of, the credit are based on their payment of amounts under par. (b).
6A partnership, limited liability company, or tax-option corporation shall compute
7the amount of credit that each of its partners, members, or shareholders may claim
8and shall provide that information to each of them. Partners, members of limited
9liability companies, and shareholders of tax-option corporations may claim the
10credit in proportion to their ownership interests.
AB15,3,1211
(d)
Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
12credit under s. 71.28 (4), applies to the credit under this subsection.
AB15,3,1713
2. If the allowable amount of the claim under this subsection exceeds the taxes
14otherwise due on the claimant's income under s. 71.02 or 71.08, the amount of the
15claim that is not used to offset those taxes shall be certified by the department of
16revenue to the department of administration for payment by check, share draft, or
17other draft drawn from the appropriation under s. 20.835 (2) (cp).
AB15, s. 4
18Section
4. 71.08 (1) (intro.) of the statutes is amended to read:
AB15,4,319
71.08
(1) Imposition. (intro.) If the tax imposed on a natural person, married
20couple filing jointly, trust, or estate under s. 71.02, not considering the credits under
21ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2dy), (3m), (3n), (3p),
22(3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (5b), (5d), (5e), (5f), (5h), (5i), (5j), (6), (6e),
(6g),
23(8r), and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (2m), (3), (3n),
24(3t), and (3w), 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (2m), (3), (3n),
25(3t), and (3w), 71.57 to 71.61, and 71.613 and subch. VIII and payments to other
1states under s. 71.07 (7), is less than the tax under this section, there is imposed on
2that natural person, married couple filing jointly, trust or estate, instead of the tax
3under s. 71.02, an alternative minimum tax computed as follows:
AB15, s. 5
4Section
5. 71.10 (4) (i) of the statutes is amended to read:
AB15,4,175
71.10
(4) (i) The total of claim of right credit under s. 71.07 (1), farmland
6preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
7beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief
8credit under s. 71.07 (3m), dairy manufacturing facility investment credit under s.
971.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment
10credit under s. 71.07 (3r), woody biomass harvesting and processing credit under s.
1171.07 (3rm), food processing plant and food warehouse investment credit under s.
1271.07 (3rn), film production services credit under s. 71.07 (5f), film production
13company investment credit under s. 71.07 (5h), veterans and surviving spouses
14property tax credit under s. 71.07 (6e),
supply chain credit under s. 71.07 (6g), 15enterprise zone jobs credit under s. 71.07 (3w), beginning farmer and farm asset
16owner tax credit under s. 71.07 (8r), earned income tax credit under s. 71.07 (9e),
17estimated tax payments under s. 71.09, and taxes withheld under subch. X.
AB15, s. 6
18Section
6. 71.21 (4) of the statutes is amended to read:
AB15,4,2219
71.21
(4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
20(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s),
21(3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm),
(6g), and (8r) and passed
22through to partners shall be added to the partnership's income.
AB15, s. 7
23Section
7. 71.26 (2) (a) 4. of the statutes is amended to read:
AB15,5,424
71.26
(2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
25(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r),
1(3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm),
(6g), and (8r) and
2not passed through by a partnership, limited liability company, or tax-option
3corporation that has added that amount to the partnership's, limited liability
4company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
AB15, s. 8
5Section
8. 71.28 (6g) of the statutes is created to read:
AB15,5,66
71.28
(6g) Supply chain credit. (a)
Definitions. In this subsection:
AB15,5,77
1. "Claimant" means a person who files a claim under this subsection.
AB15,5,98
2. "Wisconsin vendor" means a business located in this state that sells tangible
9personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d).
AB15,5,1610
(b)
Filing claims. Subject to the limitations provided in this subsection, for
11taxable years beginning after December 31, 2010, a claimant may claim as a credit
12against the tax imposed under s. 71.23, 1 percent of the amount that the claimant
13paid in the taxable year to purchase tangible personal property, items, property, or
14goods under s. 77.52 (1) (b), (c), or (d), or services from Wisconsin vendors, except that
15the claimant may not claim the credit under this subsection and sub. (3w) (bm) 3. and
164. for the same expenditures.
AB15,5,2417
(c)
Limitations. Partnerships, limited liability companies, and tax-option
18corporations may not claim the credit under this subsection, but the eligibility for,
19and the amount of, the credit are based on their payment of amounts under par. (b).
20A partnership, limited liability company, or tax-option corporation shall compute
21the amount of credit that each of its partners, members, or shareholders may claim
22and shall provide that information to each of them. Partners, members of limited
23liability companies, and shareholders of tax-option corporations may claim the
24credit in proportion to their ownership interests.
AB15,6,2
1(d)
Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit
2under sub. (4), applies to the credit under this subsection.
AB15,6,73
2. If the allowable amount of the claim under this subsection exceeds the taxes
4otherwise due on the claimant's income under s. 71.23, the amount of the claim that
5is not used to offset those taxes shall be certified by the department of revenue to the
6department of administration for payment by check, share draft, or other draft
7drawn from the appropriation under s. 20.835 (2) (cp).
AB15, s. 9
8Section
9. 71.30 (3) (f) of the statutes is amended to read:
AB15,6,189
71.30
(3) (f) The total of farmland preservation credit under subch. IX,
10farmland tax relief credit under s. 71.28 (2m), dairy manufacturing facility
11investment credit under s. 71.28 (3p), jobs credit under s. 71.28 (3q), meat processing
12facility investment credit under s. 71.28 (3r), woody biomass harvesting and
13processing credit under s. 71.28 (3rm), food processing plant and food warehouse
14investment credit under s. 71.28 (3rn), enterprise zone jobs credit under s. 71.28
15(3w), film production services credit under s. 71.28 (5f), film production company
16investment credit under s. 71.28 (5h),
supply chain credit under s. 71.28 (6g), 17beginning farmer and farm asset owner tax credit under s. 71.28 (8r), and estimated
18tax payments under s. 71.29.
AB15, s. 10
19Section
10. 71.34 (1k) (g) of the statutes is amended to read:
AB15,6,2320
71.34
(1k) (g) An addition shall be made for credits computed by a tax-option
21corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
22(3), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j),
23(5k), (5r), (5rm),
(6g), and (8r) and passed through to shareholders.
AB15, s. 11
24Section
11. 71.45 (2) (a) 10. of the statutes is amended to read:
AB15,7,7
171.45
(2) (a) 10. By adding to federal taxable income the amount of credit
2computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn),
3(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm),
(6g), and (8r) and not passed
4through by a partnership, limited liability company, or tax-option corporation that
5has added that amount to the partnership's, limited liability company's, or
6tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and the amount
7of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).
AB15, s. 12
8Section
12. 71.47 (6g) of the statutes is created to read:
AB15,7,99
71.47
(6g) Supply chain credit. (a)
Definitions. In this subsection:
AB15,7,1010
1. "Claimant" means a person who files a claim under this subsection.
AB15,7,1211
2. "Wisconsin vendor" means a business located in this state that sells tangible
12personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d).
