LRB-3849/1
JK:cjs:rs
2013 - 2014 LEGISLATURE
February 20, 2014 - Introduced by Senators Harsdorf and Schultz, cosponsored
by Representatives Petryk, T. Larson, Bies, Murphy, Pridemore, Hulsey and
Thiesfeldt. Referred to Committee on Workforce Development, Forestry,
Mining, and Revenue.
SB624,1,3
1An Act to amend 71.05 (6) (a) 15., 71.21 (4) (a) and 71.34 (1k) (g); and
to create
271.07 (9t) and 71.10 (4) (ev) of the statutes;
relating to: an income tax credit
3for the moving expenses paid by a business relocating to this state.
Analysis by the Legislative Reference Bureau
This bill creates an income tax credit equal to 50 percent of the amount the
taxpayer paid as moving expenses to relocate the taxpayer's business to this state
from another state or another country. Only a sole proprietor, partner of a
partnership, member of a limited liability company, or shareholder of a tax-option
corporation may claim the credit. If the amount of the credit exceeds the taxpayer's
tax liability, the taxpayer does not receive a refund, but may claim the amount of any
unused credit in the ten taxable years following the taxable year in which the
taxpayer first filed a claim.
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:
SB624,2,7
171.05
(6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the
2credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds),
3(2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (4k), (4n), (5e),
4(5f), (5h), (5i), (5j), (5k), (5r), (5rm), (6n),
and (8r)
, and (9t) and not passed through
5by a partnership, limited liability company, or tax-option corporation that has added
6that amount to the partnership's, company's, or tax-option corporation's income
7under s. 71.21 (4) or 71.34 (1k) (g).
SB624,2
8Section
2. 71.07 (9t) of the statutes is created to read:
SB624,2,109
71.07
(9t) Relocated business moving expenses credit. (a)
Definitions. In this
10subsection:
SB624,2,1111
1. "Claimant" means an individual who files a claim under this subsection.
SB624,2,1512
2. "Moving expenses" means the reasonable expenses of moving tangible
13personal property from a former business location to a new business location and of
14traveling from the former business location to the new business location, including
15lodging, but not including meals.
SB624,2,1616
3. "Tangible personal property" has the meaning given in s. 77.51 (20).
SB624,2,2417
(b)
Filing claims. Subject to the limitations under this subsection, for taxable
18years beginning after December 31, 2013, a claimant may claim as a credit against
19the tax imposed under s. 71.02, up to the amount of the tax, an amount equal to 50
20percent of the amount the claimant paid in the taxable year as moving expenses to
21relocate the claimant's business to this state from another state or another country,
22if the claimant's business moves to this state either 51 percent of more of its
23workforce payroll or at least $200,000 of wages, as defined in section
3121 of the
24Internal Revenue Code, paid to its workforce.
SB624,3,8
1(c)
Limitations. Partnerships, limited liability companies, and tax-option
2corporations may not claim the credit under this subsection, but the eligibility for,
3and the amount of, the credit are based on their payment of amounts under par. (b).
4A partnership, limited liability company, or tax-option corporation shall compute
5the amount of credit that each of its partners, members, or shareholders may claim
6and shall provide that information to each of them. Partners, members of limited
7liability companies, and shareholders of tax-option corporations may claim the
8credit in proportion to their ownership interests.
SB624,3,109
(d)
Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
10credit under s. 71.28 (4), applies to the credit under this subsection.
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2. If a credit computed under this subsection is not entirely offset against
12Wisconsin income taxes otherwise due, the unused balance may be carried forward
13and credited against Wisconsin income taxes otherwise due for the following 10
14taxable years to the extent not offset by these taxes otherwise due in all intervening
15years between the year in which the expense was incurred and the year in which the
16carry-forward credit is claimed.
SB624,3
17Section
3. 71.10 (4) (ev) of the statutes is created to read:
SB624,3,1818
71.10
(4) (ev) Relocated business moving expenses credit under s. 71.07 (9t).
SB624,3,2521
71.21
(4) (a) The amount of the credits computed by a partnership under s.
2271.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p),
23(3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (4k), (4n), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r),
24(5rm), (6n),
and (8r)
, and (9t) and passed through to partners shall be added to the
25partnership's income.
SB624,4,73
71.34
(1k) (g) An addition shall be made for credits computed by a tax-option
4corporation under
s. ss. 71.07 (9t) and 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm),
5(1ds), (1dx), (1dy), (3), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (4), (5),
6(5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (8r) and passed through to
7shareholders.
