AB171,4,119 a. Qualified production activities income that derives from property assessed
10as manufacturing property under s. 70.995 or property assessed as agricultural
11property under s. 70.32 (2) (a) 4.
AB171,4,1212 b. Income that is apportioned to this state under s. 71.25 (5), (6), and (6m).
AB171,4,1313 c. Income that is determined to be taxable in this state under s. 71.255 (2).
AB171,4,1514 3. "Qualified production activities income" means qualified production
15activities income as defined in 26 USC 199 (c).
AB171,4,1916 (b) Filing claims. Subject to the limitations provided in this subsection, a
17claimant may claim as a credit against the tax imposed under s. 71.23, up to the
18amount of the tax, an amount equal to the claimant's eligible qualified production
19activities income in the taxable year, multiplied by 7.5 percent.
AB171,5,220 (c) Limitations. Partnerships, limited liability companies, and tax-option
21corporations may not claim the credit under this subsection, but the eligibility for,
22and the amount of, the credit are based on their share of the income described under
23par. (b). A partnership, limited liability company, or tax-option corporation shall
24compute the amount of credit that each of its partners, members, or shareholders
25may claim and shall provide that information to each of them. Partners, members

1of limited liability companies, and shareholders of tax-option corporations may
2claim the credit in proportion to their ownership interests.
AB171,5,43 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
4sub. (4), applies to the credit under this subsection.
AB171, s. 7 5Section 7. 71.30 (3) (dn) of the statutes is created to read:
AB171,5,66 71.30 (3) (dn) Qualified production activities credit under s. 71.28 (5n).
AB171, s. 8 7Section 8. 71.34 (1k) (g) of the statutes is amended to read:
AB171,5,118 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
9corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
10(3), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j),
11(5k), (5n), (5r), (5rm), and (8r) and passed through to shareholders.
AB171, s. 9 12Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2011 Wisconsin Act
133
, is amended to read:
AB171,5,2014 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
15computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn),
16(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (8r), and (9s) and not passed
17through by a partnership, limited liability company, or tax-option corporation that
18has added that amount to the partnership's, limited liability company's, or
19tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and the amount
20of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).
AB171, s. 10 21Section 10. 71.47 (5n) of the statutes is created to read:
AB171,5,2322 71.47 (5n) Qualified production activities credit. (a) Definitions. In this
23subsection:
AB171,5,2424 1. "Claimant" means a person who files a claim under this subsection.
AB171,6,2
12. "Eligible qualified production activities income" means the lesser of the
2following:
AB171,6,53 a. Qualified production activities income that derives from property assessed
4as manufacturing property under s. 70.995 or property assessed as agricultural
5property under s. 70.32 (2) (a) 4.
AB171,6,66 b. Income that is apportioned to this state under s. 71.45 (3), (3d), and (3e).
AB171,6,77 c. Income that is determined to be taxable in this state under s. 71.255 (2).
AB171,6,98 3. "Qualified production activities income" means qualified production
9activities income as defined in 26 USC 199 (c).
AB171,6,1310 (b) Filing claims. Subject to the limitations provided in this subsection, a
11claimant may claim as a credit against the tax imposed under s. 71.43, up to the
12amount of the tax, an amount equal to the claimant's eligible qualified production
13activities income in the taxable year, multiplied by 7.5 percent.
AB171,6,2114 (c) Limitations. Partnerships, limited liability companies, and tax-option
15corporations may not claim the credit under this subsection, but the eligibility for,
16and the amount of, the credit are based on their share of the income described under
17par. (b). A partnership, limited liability company, or tax-option corporation shall
18compute the amount of credit that each of its partners, members, or shareholders
19may claim and shall provide that information to each of them. Partners, members
20of limited liability companies, and shareholders of tax-option corporations may
21claim the credit in proportion to their ownership interests.
AB171,6,2322 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
23s. 71.28 (4), applies to the credit under this subsection.
AB171, s. 11 24Section 11. 71.49 (1) (dn) of the statutes is created to read:
AB171,6,2525 71.49 (1) (dn) Qualified production activities credit under s. 71.47 (5n).
AB171, s. 12
1Section 12. 77.92 (4) of the statutes is amended to read:
AB171,7,172 77.92 (4) "Net business income," with respect to a partnership, means taxable
3income as calculated under section 703 of the Internal Revenue Code; plus the items
4of income and gain under section 702 of the Internal Revenue Code, including taxable
5state and municipal bond interest and excluding nontaxable interest income or
6dividend income from federal government obligations; minus the items of loss and
7deduction under section 702 of the Internal Revenue Code, except items that are not
8deductible under s. 71.21; plus guaranteed payments to partners under section 707
9(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
10(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
11(3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), and
12(8r); and plus or minus, as appropriate, transitional adjustments, depreciation
13differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but
14excluding income, gain, loss, and deductions from farming. "Net business income,"
15with respect to a natural person, estate, or trust, means profit from a trade or
16business for federal income tax purposes and includes net income derived as an
17employee as defined in section 3121 (d) (3) of the Internal Revenue Code.
AB171, s. 13 18Section 13. Initial applicability.
AB171,7,2219 (1) This act first applies to taxable years beginning on January 1 of the year
20in which this subsection takes effect, except that if this subsection takes effect after
21July 31 this act first applies to taxable years beginning on January 1 of the year
22following the year in which this subsection takes effect.
AB171,7,2323 (End)
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