LRB-1746/1
JK:jld:ph
2011 - 2012 LEGISLATURE
November 3, 2011 - Introduced by Representatives Mursau, Spanbauer, T. Larson,
LeMahieu, Bies, Brooks, Endsley, A. Ott, Ripp and Ballweg, cosponsored by
Senator Holperin. Referred to Committee on Jobs, Economy and Small
Business.
AB360,1,5
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) (ba), 71.07 (8s), 71.28 (8s), 71.47 (8s) and 560.2095 of
4the statutes;
relating to: an income and franchise tax credit for lumber
5manufacturing facility investments and making an appropriation.
Analysis by the Legislative Reference Bureau
This bill creates an income and franchise tax credit in an amount equal to 10
percent of the amount that a taxpayer pays in a taxable year for lumber
manufacturing modernization and expansion. If the credit amount exceeds the
amount of the taxpayer's tax liability, the taxpayer will receive 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:
AB360, s. 1
6Section
1. 20.835 (2) (ba) of the statutes is created to read:
AB360,1,87
20.835
(2) (ba)
Lumber manufacturing facility investment credit. A sum
8sufficient to make the payments under ss. 71.07 (8s), 71.28 (8s), and 71.47 (8s).
AB360, s. 2
1Section
2. 71.05 (6) (a) 15. of the statutes is amended to read:
AB360,2,72
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), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
4(3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k), (5r), (5rm),
and (8r)
, and (8s) 5and not passed through by a partnership, limited liability company, or tax-option
6corporation that has added that amount to the partnership's, company's, or
7tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
AB360, s. 3
8Section
3. 71.07 (8s) of the statutes is created to read:
AB360,2,109
71.07
(8s) Lumber manufacturing facility investment credit. (a)
Definitions. 10In this subsection:
AB360,2,1111
1. "Claimant" means a person who files a claim under this subsection.
AB360,2,1612
2. "Lumber manufacturing modernization or expansion" means constructing,
13improving, or acquiring buildings or facilities, or acquiring equipment for lumber
14manufacturing, if used exclusively for lumber manufacturing and if acquired and
15placed in service in this state during taxable years that begin after December 31,
162010, and before January 1, 2017.
AB360,2,1817
3. "Used exclusively" means used to the exclusion of all other uses except for
18use not exceeding 5 percent of total use.
AB360,2,2419
(b)
Filing claims. Subject to the limitations provided in this subsection and s.
20560.2095, for taxable years beginning after December 31, 2010, and before January
211, 2017, a claimant may claim as a credit against the taxes imposed under s. 71.02
22or 71.08, up to the amount of the tax, an amount equal to 10 percent of the amount
23the claimant paid in the taxable year for lumber manufacturing modernization or
24expansion.
AB360,3,3
1(c)
Limitations. 1. No credit may be allowed under this subsection for any
2amount that the claimant paid for expenses described under par. (b) that the
3claimant also claimed as a deduction under section
162 of the Internal Revenue Code.
AB360,3,54
2. The aggregate amount of credits that a claimant may claim under this
5subsection is $200,000.
AB360,3,86
3. a. The maximum amount of the credits that may be claimed under this
7subsection and ss. 71.28 (8s) and 71.47 (8s) in fiscal year 2011-12 is $700,000, as
8allocated under s. 560.2095.
AB360,3,119
b. The maximum amount of the credits that may be claimed under this
10subsection and ss. 71.28 (8s) and 71.47 (8s) in fiscal year 2012-13, and in each fiscal
11year thereafter, is $800,000, as allocated under s. 560.2095.
AB360,3,2012
4. Partnerships, limited liability companies, and tax-option corporations may
13not claim the credit under this subsection, but the eligibility for, and the amount of,
14the credit are based on their payment of expenses under par. (b), except that the
15aggregate amount of credits that the entity may compute shall not exceed $200,000.
16A partnership, limited liability company, or tax-option corporation shall compute
17the amount of credit that each of its partners, members, or shareholders may claim
18and shall provide that information to each of them. Partners, members of limited
19liability companies, and shareholders of tax-option corporations may claim the
20credit in proportion to their ownership interest.
AB360,3,2421
5. If 2 or more persons own and operate the lumber manufacturing operation,
22each person may claim a credit under par. (b) in proportion to his or her ownership
23interest, except that the aggregate amount of the credits claimed by all persons who
24own and operate the operation shall not exceed $200,000.
AB360,4,2
1(d)
Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
2credit under s. 71.28 (4), applies to the credit under this subsection.
AB360,4,73
2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise
4due under s. 71.02 or 71.08, the amount of the claim not used to offset the tax due
5shall be certified by the department of revenue to the department of administration
6for payment by check, share draft, or other draft drawn from the appropriation
7account under s. 20.835 (2) (ba).
AB360, s. 4
8Section
4. 71.08 (1) (intro.) of the statutes is amended to read:
AB360,4,189
71.08
(1) Imposition. (intro.) If the tax imposed on a natural person, married
10couple filing jointly, trust, or estate under s. 71.02, not considering the credits under
11ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2dy), (3m), (3n), (3p),
12(3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (5b), (5d), (5e), (5f), (5h), (5i), (5j), (6), (6e), (8r),
13(8s), and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (2m), (3), (3n),
14(3t), and (3w), 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (2m), (3), (3n),
15(3t), and (3w), 71.57 to 71.61, and 71.613 and subch. VIII and payments to other
16states under s. 71.07 (7), is less than the tax under this section, there is imposed on
17that natural person, married couple filing jointly, trust or estate, instead of the tax
18under s. 71.02, an alternative minimum tax computed as follows:
AB360, s. 5
19Section
5. 71.10 (4) (i) of the statutes is amended to read:
AB360,5,820
71.10
(4) (i) The total of claim of right credit under s. 71.07 (1), farmland
21preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
22beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief
23credit under s. 71.07 (3m), dairy manufacturing facility investment credit under s.
2471.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment
25credit under s. 71.07 (3r), woody biomass harvesting and processing credit under s.
171.07 (3rm), food processing plant and food warehouse investment credit under s.
271.07 (3rn), film production services credit under s. 71.07 (5f), film production
3company investment credit under s. 71.07 (5h), veterans and surviving spouses
4property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s. 71.07 (3w),
5beginning farmer and farm asset owner tax credit under s. 71.07 (8r),
lumber
6manufacturing facility investment credit under s. 71.07 (8s), earned income tax
7credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld
8under subch. X.
AB360, s. 6
9Section
6. 71.21 (4) of the statutes is amended to read:
AB360,5,1310
71.21
(4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
11(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s),
12(3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm),
and (8r)
, and (8s) and passed
13through to partners shall be added to the partnership's income.
AB360,5,2216
71.26
(2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
17(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r),
18(3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (8r),
(8s), and
19(9s) and not passed through by a partnership, limited liability company, or
20tax-option corporation that has added that amount to the partnership's, limited
21liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k)
22(g).
AB360, s. 8
23Section
8. 71.28 (8s) of the statutes is created to read:
AB360,5,2524
71.28
(8s) Lumber manufacturing facility investment credit. (a)
Definitions. 25In this subsection:
AB360,6,1
11. "Claimant" means a person who files a claim under this subsection.
AB360,6,62
2. "Lumber manufacturing modernization or expansion" means constructing,
3improving, or acquiring buildings or facilities, or acquiring equipment for lumber
4manufacturing, if used exclusively for lumber manufacturing and if acquired and
5placed in service in this state during taxable years that begin after December 31,
62010, and before January 1, 2017.
AB360,6,87
3. "Used exclusively" means used to the exclusion of all other uses except for
8use not exceeding 5 percent of total use.
AB360,6,149
(b)
Filing claims. Subject to the limitations provided in this subsection and s.
10560.2095, for taxable years beginning after December 31, 2010, and before January
111, 2017, a claimant may claim as a credit against the taxes imposed under s. 71.23,
12up to the amount of the tax, an amount equal to 10 percent of the amount the
13claimant paid in the taxable year for lumber manufacturing modernization or
14expansion.
AB360,6,1715
(c)
Limitations. 1. No credit may be allowed under this subsection for any
16amount that the claimant paid for expenses described under par. (b) that the
17claimant also claimed as a deduction under section
162 of the Internal Revenue Code.
AB360,6,1918
2. The aggregate amount of credits that a claimant may claim under this
19subsection is $200,000.
AB360,6,2220
3. a. The maximum amount of the credits that may be claimed under this
21subsection and ss. 71.07 (8s) and 71.47 (8s) in fiscal year 2011-12 is $700,000, as
22allocated under s. 560.2095.
AB360,6,2523
b. The maximum amount of the credits that may be claimed under this
24subsection and ss. 71.07 (8s) and 71.47 (8s) in fiscal year 2012-13, and in each fiscal
25year thereafter, is $800,000, as allocated under s. 560.2095.
AB360,7,9
14. Partnerships, limited liability companies, and tax-option corporations may
2not claim the credit under this subsection, but the eligibility for, and the amount of,
3the credit are based on their payment of expenses under par. (b), except that the
4aggregate amount of credits that the entity may compute shall not exceed $200,000.
5A partnership, limited liability company, or tax-option corporation shall compute
6the amount of credit that each of its partners, members, or shareholders may claim
7and shall provide that information to each of them. Partners, members of limited
8liability companies, and shareholders of tax-option corporations may claim the
9credit in proportion to their ownership interest.
AB360,7,1310
5. If 2 or more persons own and operate the lumber manufacturing operation,
11each person may claim a credit under par. (b) in proportion to his or her ownership
12interest, except that the aggregate amount of the credits claimed by all persons who
13own and operate the operation shall not exceed $200,000.
AB360,7,1514
(d)
Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit
15under sub. (4), applies to the credit under this subsection.
