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Wis. Stat. § 71.07

Credits

Redline — January 1, 2011 → current.View current text →
Current — January 1, 2021
As of January 1, 2011
(1) Claim of right credit. Any natural person may credit against taxes otherwise due under this chapter the decrease in tax under this chapter for the prior taxable year that would be attributable to subtracting income taxed for that year under the claim of right doctrine but repaid, as calculated under section 1341 of the internal revenue code, if the income repaid is greater than $3,000 and the amount is not subtracted in computing Wisconsin adjusted gross income or used in computing the credit under sub. (5) (a) . If the allowable amount of the claim exceeds the claimant's taxes due under this chapter the amount of the claim not used to offset those taxes shall be certified to the department of administration for payment to the claimant by check, share draft or other draft drawn on the general fund.
(1) Claim of right credit. Any natural person may credit against taxes otherwise due under this chapter the decrease in tax under this chapter for the prior taxable year that would be attributable to subtracting income taxed for that year under the claim of right doctrine but repaid, as calculated under section 1341 of the internal revenue code, if the income repaid is greater than $3,000 and the amount is not subtracted in computing Wisconsin adjusted gross income or used in computing the credit under sub. (5) (a) . If the allowable amount of the claim exceeds the claimant's taxes due under this chapter the amount of the claim not used to offset those taxes shall be certified to the department of administration for payment to the claimant by check, share draft or other draft drawn on the general fund.
(2) Community development finance authority credit. Any individual receiving a credit under s. 71.09 (12m) , 1985 stats., may carry forward to the next succeeding 15 taxable years the amount of the credit not offset against taxes for the year of purchase to the extent not offset by those taxes otherwise due in all intervening years between the year for which the credit was computed and the year for which the carry-forward is claimed.
(2dd) Development zones day care credit. (a) In this subsection: 1. "Day care center benefits" means benefits provided at a child care facility that is licensed under s. 48.65 or 48.69 and that for compensation provides care for at least 6 children or benefits provided at a facility for persons who are physically or mentally incapable of caring for themselves. 2. "Employment-related day care expenses" means amounts paid or incurred by a claimant, during the 2-year period beginning with the day that the member of the targeted group begins work for the claimant, for providing or making day care center benefits available to a qualifying individual in order to enable a member of a targeted group to be employed by the claimant. 4. "Member of a targeted group" means a person under sub. (2dj) (am) 1. 5. "Qualifying individual" means a dependent of a member of a targeted group who is employed by a claimant and with respect to whom the member is entitled to a deduction under section 151 (c) of the internal revenue code for federal income tax purposes, a dependent of a member of a targeted group who is employed by a claimant if the dependent is physically or mentally incapable of caring for himself or herself or the spouse of a member of a targeted group who is employed by the claimant if the spouse is physically or mentally incapable of caring for himself or herself. (b) Except as provided in s. 73.03 (35) , for any taxable year for which that person is certified under s. 560.765 (3) , 2009 stats., and begins business operations in a zone under s. 560.71 , 2009 stats., after July 29, 1995, or certified under s. 560.797 (4) (a) , 2009 stats., for each zone for which the person is certified or entitled a person may credit against taxes otherwise due under this subchapter employment-related day care expenses, up to $1,200 for each qualifying individual. (c) Subsection (2di) (b) , (c) , (d) 1. , (f) and (g) , as it applies to the credit under sub. (2di) , applies to the credit under this subsection. (d) Section 71.28 (4) (g) and (h) , as it applies to the credit under s. 71.28 (4) , applies to the credit under this subsection. (dm) No credit may be allowed under this subsection unless the claimant includes with the claimant's return a statement from the department of commerce verifying the amount of qualifying employment-related day care expenses. (e) No credit may be claimed under this subsection for taxable years that begin on January 1, 1998, or thereafter. Credits under this subsection for taxable years that begin before January 1, 1998, may be carried forward to taxable years that begin on January 1, 1998, or thereafter. (2de) Development zones environmental remediation credit. (a) Except as provided in s. 73.03 (35) , for any taxable year for which a person is certified under s. 560.765 (3) , 2009 stats., and begins business operations in a zone under s. 560.71 , 2009 stats., after July 29, 1995, or certified under s. 560.797 (4) (a) , 2009 stats., for each zone for which the person is certified or entitled the person may claim as a credit against taxes otherwise due under this subchapter an amount equal to 7.5% of the amount that the person expends to remove or contain environmental pollution, as defined in s. 299.01 (4) , in the zone or to restore soil or groundwater that is affected by environmental pollution, as defined in s. 299.01 (4) , in the zone if the person fulfills all of the following requirements: 1. Begins the work, other than planning and investigating, for which the credit is claimed after the area that includes the site where the work is done is designated a development zone under s. 560.71 , 2009 stats., or an enterprise development zone under s. 560.797 , 2009 stats., and after the claimant is certified under s. 560.765 (3) , 2009 stats., or certified under s. 560.797 (4) (a) , 2009 stats. (b) Subsection (2di) (b) , (c) , (d) , (f) and (g) , as it applies to the credit under sub. (2di) , applies to the credit under this subsection. (c) Section 71.28 (4) (g) and (h) , as it applies to the credit under s. 71.28 (4) , applies to the credit under this subsection. (d) No credit may be claimed under this subsection for taxable years that begin on January 1, 1998, or thereafter. Credits under this subsection for taxable years that begin before January 1, 1998, may be carried forward to taxable years that begin on January 1, 1998, or thereafter. (2di) Development zones investment credit. (a) Except as provided in pars. (dm) and (f) and s. 73.03 (35) , for any taxable year for which the person is entitled under s. 560.795 (3) , 2009 stats., to claim tax benefits, any person may claim as a credit against taxes otherwise due under this chapter 2.5% of the purchase price of depreciable, tangible personal property, or 1.75% of the purchase price of depreciable, tangible personal property that is expensed under section 179 of the internal revenue code for purposes of the taxes under this chapter, except that: 1. The investment must be in property that is purchased after the person is entitled under s. 560.795 (3) , 2009 stats., to claim tax benefits and that is used for at least 50% of its use in the conduct of the person's business operations at a location in a development zone under subch. VI of ch. 560 , 2009 stats., or, if the property is mobile, the base of operations of the property for at least 50% of its use must be a location in a development zone. 2. The credit under this subsection may be claimed only by the person who purchased the property the investment in which is the basis for the credit, except that only partners may claim the credit based on purchases by a partnership, only members may claim the credit based on purchases by a limited liability company and except that only shareholders may claim the credit based on purchases by a tax-option corporation. 3. If the credit is claimed for used property, the claimant may not have used the property for business purposes at a location outside the development zone. If the credit is attributable to a partnership, limited liability company or tax-option corporation, that entity may not have used the property for business purposes at a location outside the development zone. 4. No credit is allowed under this subsection for property which is the basis for a credit under sub. (2dL) . (b) 2. If the claimant is located on an Indian reservation, as defined in s. 560.86 (5) , 2009 stats., and is an American Indian, as defined in s. 560.86 (1) , 2009 stats., an Indian business, as defined in s. 560.86 (4) , 2009 stats., or a tribal enterprise, and if the allowable amount of the credit under this subsection exceeds the taxes otherwise due under this chapter on or measured by the claimant's income, the amount of the credit not used as an offset against those taxes shall be certified to the department of administration for payment to the claimant by check, share draft or other draft. In this subdivision, "tribal enterprise" means a business that is at least 51% owned and controlled by the governing body of one or more Indian tribes, is actively managed by the governing body, or by the designee of the governing body, of one or more Indian tribes and is currently performing a useful business function. 3. Partnerships, limited liability companies and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and amount of, that credit shall be determined on the basis of their economic activity, not that of their shareholders, partners or members. The corporation, partnership or company shall compute the amount of the credit that may be claimed by each of its shareholders, partners or members and shall provide that information to each of its shareholders, partners or members. Partners, members of limited liability companies and shareholders of tax-option corporations may claim the credit based on the partnership's, company's or corporation's activities in proportion to their ownership interest and may offset it against the tax attributable to their income from the partnership's, company's or corporation's business operations in the development zone; except that partners, members, and shareholders in a development zone under s. 560.795 (1) (e) , 2009 stats., may offset the credit against the amount of the tax attributable to their income from all of the partnership's, company's, or corporation's business operations; and against the tax attributable to their income from the partnership's, company's or corporation's directly related business operations. (c) Except as provided in par. (b) 2. , the carry-over provisions of s. 71.28 (4) (e) and (f) as they relate to the credit under s. 71.28 (4) relate to the credit under this subsection and apply as if the development zone continued to exist. (d) No credit may be allowed under this subsection unless the claimant includes with the claimant's return: 1. A copy of a verification from the department of commerce that the claimant may claim tax benefits under s. 560.795 (3) , 2009 stats. 2. A statement from the department of commerce verifying the purchase price of the investment and verifying that the investment fulfills the requirements under par. (a) . (dm) In calculating the credit under par. (a) , a claimant shall reduce the purchase price of the property by a percentage equal to the percentage of use of the property during the taxable year the property is first placed into service that is for a purpose not specified under par. (a) 1. (e) The recapture provisions under section 47 (a) (5) of the internal revenue code as amended to December 31, 1985, as they apply to the credit under section 46 of the internal revenue code, apply to the credit under this subsection, except that those provisions also apply if the property for which the credit is claimed is moved out of the development zone or, for mobile property, if the base of operations is moved out of the zone and except that the determination of whether or not property is 3-year property shall be made under section 168 of the internal revenue code. (f) If a person who is entitled under s. 560.795 (3) , 2009 stats., to claim tax benefits becomes ineligible for such tax benefits, that person may claim no credits under this subsection for the taxable year that includes the day on which the person becomes ineligible for tax benefits or succeeding taxable years and that person may carry over no unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which the person becomes ineligible for tax benefits or succeeding taxable years. (g) If a person who is entitled under s. 560.795 (3) , 2009 stats., to claim tax benefits ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years. (h) Section 71.28 (4) (g) and (h) as it applies to the credit under s. 71.28 (4) applies to the credit under this subsection. (i) No credit may be claimed under this subsection for taxable years that begin after December 31, 1997, and end before January 1, 2000. Credits under this subsection for taxable years that begin before January 1, 1998, may be carried forward to taxable years that begin on January 1, 1998, or thereafter. (2dj) Development zones jobs credit. (am) Except as provided under par. (f) or s. 73.03 (35) , for any taxable year for which the person is certified under s. 560.765 (3) , 2009 stats., for tax benefits, any person may claim as a credit against taxes otherwise due under this chapter an amount calculated as follows: 1. Modify "member of a targeted group", as defined in section 51 (d) of the internal revenue code as amended to December 31, 1995, to include persons unemployed as a result of a business action subject to s. 109.07 (1m) and dislocated workers, as defined in 29 USC 2801 (9), and to require a member of a targeted group to be a resident of this state. 2. Modify "designated local agency", as defined in section 51 (d) (15) of the internal revenue code, to include the local workforce development board established under 29 USC 2832 for the area that includes the development zone in which the employee in respect to whom the credit under this subsection is claimed works, if the department of commerce approves the criteria used for certification, and the department of commerce. 3. Modify the rule for certification under section 51 (d) (16) (A) of the internal revenue code to allow certification within the period beginning with the first day of employment of the employee. 4. a. If certified under s. 560.765 (3) , 2009 stats., for tax benefits before January 1, 1992, modify "qualified wages" as defined in section 51 (b) of the internal revenue code to exclude wages paid before the claimant is certified for tax benefits and to exclude wages that are paid to employees for work at any location that is not in a development zone under subch. VI of ch. 560 , 2009 stats. For purposes of this subd. 4. a. , mobile employees work at their base of operations and leased or rented employees work at the location where they perform services. b. If certified under s. 560.765 (3) , 2009 stats., for tax benefits after December 31, 1991, modify "qualified wages" as defined in section 51 (b) of the internal revenue code to exclude wages paid before the claimant is certified for tax benefits and to exclude wages that are paid to employees for work at any location that is not in a development zone under subch. VI of ch. 560 , 2009 stats. For purposes of this subd. 4. b. , mobile employees and leased or rented employees work at their base of operations. 4c. Modify the rule for ineligible individuals under section 51 (i) (1) of the internal revenue code to allow credit for the wages of related individuals paid by an Indian business, as defined in s. 560.86 (4) , 2009 stats., or a tribal enterprise, as defined in sub. (2di) (b) 2. , if the Indian business or tribal enterprise is located in a development zone designated under s. 560.71 (3) (c) 2. , 2009 stats. 4e. Modify section 51 (c) (2) of the internal revenue code to specify that the rules for on-the-job training and work supplementation payments also apply to those kinds of payments funded by this state. 4g. Delete section 51 (c) (4) of the internal revenue code. 4h. Modify section 51 (a) of the internal revenue code so that the amount of the credit is 25% of the qualified first-year wages if the wages are paid to an applicant for a Wisconsin works employment position for service either in an unsubsidized position or in a trial job under s. 49.147 (3) and so that the amount of the credit is 20% of the qualified first-year wages if the wages are not paid to such an applicant. 4i. Modify section 51 (b) (3) of the internal revenue code so that the amount of the qualified first-year wages that may be taken into account is $13,000. 4m. Modify the rule on remuneration under section 51 (f) of the internal revenue code so that it does not apply to persons who are exempt from tax under this chapter. 4t. If certified under s. 560.765 (3) , 2009 stats., for tax benefits before January 1, 1992, modify section 51 (i) (3) of the internal revenue code so that for leased or rented employees, except employees of a leasing agency certified for tax benefits who perform services directly for the agency in a development zone, the minimum employment periods apply to the time that they perform services in a development zone for a single lessee or renter, not to their employment by the leasing agency. 5. Calculate the credit under section 51 of the internal revenue code. 6. For persons for whom a credit may be claimed under subd. 5. , modify "qualified wages" under section 51 (b) of the internal revenue code so that those wages are based on the wages attributable to service rendered during the one-year period beginning with the date one year after the date on which the individual begins work for the employer. 7. Modify section 51 of the internal revenue code as under subds. 1. to 4t. 8. Calculate the credit under section 51 of the internal revenue code based on qualified wages for the 2nd year as determined under subds. 6. and 7. 8m. For each person, whether or not he or she is a member of a targeted group, who is determined by the department of commerce to be a resident of the development zone in which he or she is employed, calculate a credit equal to 10% of the wages earned by such person during the 1st and 2nd years of the person's employment in the development zone, up to a maximum credit of $600 per year. 9. Add the amounts under subds. 5. , 8. and 8m.
(2dm) Development zone capital investment credit. (a) In this subsection: 1. “Certified" means entitled under s. 238.395 (3) (a) 4. or s. 560.795 (3) (a) 4. , 2009 stats., to claim tax benefits or certified under s. 238.395 (5) or 238.398 (5) or s. 560.795 (5) , 2009 stats., or s. 560.798 (3) , 2009 stats. 2. “Claimant" means a person who files a claim under this subsection. 3. “Development zone" means a development opportunity zone under s. 238.395 (1) (e) and (f) or 238.398 or s. 560.795 (1) (e) and (f) , 2009 stats., or s. 560.798 , 2009 stats. 4. “Previously owned property" means real property that the claimant or a related person owned during the 2 years prior to the department of commerce or the Wisconsin Economic Development Corporation designating the place where the property is located as a development zone and for which the claimant may not deduct a loss from the sale of the property to, or an exchange of the property with, the related person under section 267 of the Internal Revenue Code, except that section 267 (b) of the Internal Revenue Code is modified so that if the claimant owns any part of the property, rather than 50 percent ownership, the claimant is subject to section 267 (a) (1) of the Internal Revenue Code for purposes of this subsection. (b) Subject to the limitations provided in this subsection and in s. 73.03 (35) , for any taxable year for which the claimant is certified, a claimant may claim as a credit against the taxes imposed under s. 71.02 an amount that is equal to 3 percent of the following: 1. The purchase price of depreciable, tangible personal property. 2. The amount expended to acquire, construct, rehabilitate, remodel, or repair real property in a development zone. (c) A claimant may claim the credit under par. (b) 1. , if the tangible personal property is purchased after the claimant is certified and the personal property is used for at least 50 percent of its use in the claimant's business at a location in a development zone or, if the property is mobile, the property's base of operations for at least 50 percent of its use is at a location in a development zone. (d) A claimant may claim the credit under par. (b) 2. for an amount expended to construct, rehabilitate, remodel, or repair real property, if the claimant began the physical work of construction, rehabilitation, remodeling, or repair, or any demolition or destruction in preparation for the physical work, after the place where the property is located was designated a development zone, or if the completed project is placed in service after the claimant is certified. In this paragraph, “physical work" does not include preliminary activities such as planning, designing, securing financing, researching, developing specifications, or stabilizing the property to prevent deterioration. (e) A claimant may claim the credit under par. (b) 2. for an amount expended to acquire real property, if the property is not previously owned property and if the claimant acquires the property after the place where the property is located was designated a development zone, or if the completed project is placed in service after the claimant is certified. (f) No credit may be allowed under this subsection unless the claimant includes with the claimant's return: 1. A copy of the verification that the claimant may claim tax benefits under s. 238.395 (3) (a) 4. or s. 560.795 (3) (a) 4. , 2009 stats., or is certified under s. 238.395 (5) or 238.398 (3) or s. 560.795 (5) , 2009 stats., or s. 560.798 (3) , 2009 stats. 2. A statement from the department of commerce or the Wisconsin Economic Development Corporation verifying the purchase price of the investment and verifying that the investment fulfills the requirements under par. (b) . (g) In calculating the credit under par. (b) a claimant shall reduce the amount expended to acquire property by a percentage equal to the percentage of the area of the real property not used for the purposes for which the claimant is certified and shall reduce the amount expended for other purposes by the amount expended on the part of the property not used for the purposes for which the claimant is certified. (h) The carry-over provisions of s. 71.28 (4) (e) and (f) as they relate to the credit under s. 71.28 (4) relate to the credit under this subsection. (hm) A claimant may claim the credit under this subsection, including any credits carried over, against the amount of the tax otherwise due under this subchapter. (i) Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, that credit shall be determined on the basis of their economic activity, not that of their shareholders, partners, or members. The corporation, partnership, or limited liability company shall compute the amount of credit that may be claimed by each of its shareholders, partners, or members and provide that information to its shareholders, partners, or members. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit based on the partnership's, company's, or corporation's activities in proportion to their ownership interest and may offset it against the tax attributable to their income from the partnership's, company's, or corporation's business operations in the development zone; except that partners, members, and shareholders in a development zone under s. 238.395 (1) (e) or s. 560.795 (1) (e) , 2009 stats., may offset the credit against the amount of the tax attributable to their income. (j) If a person who is entitled under s. 238.395 (3) (a) 4. or s. 560.795 (3) (a) 4. , 2009 stats., to claim tax benefits becomes ineligible for such tax benefits, or if a person's certification under s. 238.395 (5) or 238.398 (3) or s. 560.795 (5) , 2009 stats., or s. 560.798 (3) , 2009 stats., is revoked, that person may claim no credits under this subsection for the taxable year that includes the day on which the person becomes ineligible for tax benefits, the taxable year that includes the day on which the certification is revoked, or succeeding taxable years, and that person may carry over no unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which the person becomes ineligible for tax benefits, the taxable year that includes the day on which the certification is revoked, or succeeding taxable years. (k) If a person who is entitled under s. 238.395 (3) (a) 4. or s. 560.795 (3) (a) 4. , 2009 stats., to claim tax benefits or certified under s. 238.395 (5) or 238.398 (3) or s. 560.795 (5) , 2009 stats., or s. 560.798 (3) , 2009 stats., ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years. (L) Section 71.28 (4) (g) and (h) as it applies to the credit under s. 71.28 (4) applies to the credit under this subsection. (2dx) Development zones credit. (a) Definitions. In this subsection: 1. “Brownfield" means an industrial or commercial facility the expansion or redevelopment of which is complicated by environmental contamination. 2. “Development zone" means a development zone under s. 238.30 or s. 560.70 , 2009 stats., a development opportunity zone under s. 238.395 or s. 560.795 , 2009 stats., an enterprise development zone under s. 238.397 or s. 560.797 , 2009 stats., or an agricultural development zone under s. 238.398 or s. 560.798 , 2009 stats. 3. “Environmental remediation" means removal or containment of environmental pollution, as defined in s. 299.01 (4) , and restoration of soil or groundwater that is affected by environmental pollution, as defined in s. 299.01 (4) , in a brownfield if that removal, containment or restoration fulfills the requirement under s. 71.07 (2de) (a) 1. , 2013 stats., and investigation unless the investigation determines that remediation is required and that remediation is not undertaken. 4. “Full-time job" has the meaning given in s. 238.30 (2m) . 5. “Member of a targeted group" means a person who resides in an area designated by the federal government as an economic revitalization area, a person who is employed in an unsubsidized job but meets the eligibility requirements under s. 49.145 (2) and (3) for a Wisconsin Works employment position, a person who is employed in a trial job, as defined in s. 49.141 (1) (n) , 2011 stats., or in a trial employment match program job, as defined in s. 49.141 (1) (n) , a person who is eligible for child care assistance under s. 49.155 , a person who is a vocational rehabilitation referral, an economically disadvantaged youth, an economically disadvantaged veteran, a supplemental security income recipient, a general assistance recipient, an economically disadvantaged ex-convict, a qualified summer youth employee, as defined in 26 USC 51 (d) (7), a dislocated worker, as defined in 29 USC 2801 (9), or a food stamp recipient, if the person has been certified in the manner under s. 71.07 (2dj) (am) 3. , 2013 stats., by a designated local agency, as defined in s. 71.07 (2dj) (am) 2. , 2013 stats. (b) Credit. Except as provided in pars. (be) and (bg) and in s. 73.03 (35) , and subject to s. 238.385 or s. 560.785 , 2009 stats., for any taxable year for which the person is entitled under s. 238.395 (3) or s. 560.795 (3) , 2009 stats., to claim tax benefits or certified under s. 238.365 (3) , 238.397 (4) , or 238.398 (3) or s. 560.765 (3) , 2009 stats., s. 560.797 (4) , 2009 stats., or s. 560.798 (3) , 2009 stats., any person may claim as a credit against the taxes otherwise due under this chapter the following amounts: 1. Fifty percent of the amount expended for environmental remediation in a development zone. 2. The amount determined by multiplying the amount determined under s. 238.385 (1) (b) or s. 560.785 (1) (b) , 2009 stats., by the number of full-time jobs created in a development zone and filled by a member of a targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) for those jobs. 3. The amount determined by multiplying the amount determined under s. 238.385 (1) (c) or s. 560.785 (1) (c) , 2009 stats., by the number of full-time jobs created in a development zone and not filled by a member of a targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) for those jobs. 4. The amount determined by multiplying the amount determined under s. 238.385 (1) (bm) or s. 560.785 (1) (bm) , 2009 stats., by the number of full-time jobs retained, as provided in the rules under s. 238.385 or s. 560.785 , 2009 stats., in an enterprise development zone under s. 238.397 or s. 560.797 , 2009 stats., and for which significant capital investment was made and by then subtracting the subsidies paid under s. 49.147 (3) (a) for those jobs. 5. The amount determined by multiplying the amount determined under s. 238.385 (1) (c) or s. 560.785 (1) (c) , 2009 stats., by the number of full-time jobs retained, as provided in the rules under s. 238.385 or s. 560.785 , 2009 stats., in a development zone and not filled by a member of a targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) for those jobs. (be) Offset. A claimant in a development zone under s. 238.395 (1) (e) or s. 560.795 (1) (e) , 2009 stats., may offset any credits claimed under this subsection, including any credits carried over, against the amount of the tax otherwise due under this subchapter attributable to all of the claimant's income and against the tax attributable to income from directly related business operations of the claimant. (bg) Other entities. For claimants in a development zone under s. 238.395 (1) (e) or s. 560.795 (1) (e) , 2009 stats., partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and amount of, that credit shall be determined on the basis of their economic activity, not that of their shareholders, partners, or members. The corporation, partnership, or company shall compute the amount of the credit that may be claimed by each of its shareholders, partners, or members and shall provide that information to each of its shareholders, partners, or members. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit based on the partnership's, company's, or corporation's activities in proportion to their ownership interest and may offset it against the tax attributable to their income. (c) Credit precluded. If the certification of a person for tax benefits under s. 238.365 (3) , 238.397 (4) , or 238.398 (3) or s. 560.765 (3) , 2009 stats., s. 560.797 (4) , 2009 stats., or s. 560.798 (3) , 2009 stats., is revoked, or if the person becomes ineligible for tax benefits under s. 238.395 (3) or s. 560.795 (3) , 2009 stats., that person may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years and that person may not carry over unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years. (d) Carry-over precluded. If a person who is entitled under s. 238.395 (3) or s. 560.795 (3) , 2009 stats., to claim tax benefits or certified under s. 238.365 (3) , 238.397 (4) , or 238.398 (3) or s. 560.765 (3) , 2009 stats., s. 560.797 (4) , 2009 stats., or s. 560.798 (3) , 2009 stats., for tax benefits ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years. (e) Administration. 1. Section 71.28 (4) (e) to (h) , as it applies to the credit under s. 71.28 (4) , applies to the credit under this subsection. Claimants shall include with their returns a copy of their certification for tax benefits and a copy of the department of commerce's verification of their expenses. 2. The credit under this subsection may not be claimed by partnerships, limited liability companies, and tax-option corporations but the eligibility for, and the amount of, that credit shall be determined on the basis of their economic activity, not that of their shareholders, partners, or members. The corporation, partnership, or limited liability company shall compute the amount of credit that may be claimed by each of its shareholders, partners, or members and shall provide that information to each of its shareholders, partners, or members. That credit may be claimed by partners, members of limited liability companies, and shareholders of tax-option corporations in proportion to their ownership interests. (2dy) Economic development tax credit. (a) Definition. In this subsection, “claimant" means a person who files a claim under this subsection and is certified under s. 238.301 (2) or s. 560.701 (2) , 2009 stats., and authorized to claim tax benefits under s. 238.303 or s. 560.703 , 2009 stats. (b) Filing claims. Subject to the limitations under this subsection and ss. 238.301 to 238.306 or ss. 560.701 to 560.706 , 2009 stats., for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s. 71.02 , up to the amount of the tax, the amount authorized for the claimant under s. 238.303 or s. 560.703 , 2009 stats. (c) Limitations. 1. No credit may be allowed under this subsection unless the claimant includes with the claimant's return a copy of the claimant's certification under s. 238.301 (2) or s. 560.701 (2) , 2009 stats., and a copy of the claimant's notice of eligibility to receive tax benefits under s. 238.303 (3) or s. 560.703 (3) , 2009 stats. 2. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their authorization to claim tax benefits under s. 238.303 or s. 560.703 , 2009 stats. A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests. (d) Administration. 1. Except as provided in subd. 2. , s. 71.28 (4) (e) and (f) , as it applies to the credit under s. 71.28 (4) , applies to the credit under this subsection. 2. If a claimant's certification is revoked under s. 238.305 or s. 560.705 , 2009 stats., or if a claimant becomes ineligible for tax benefits under s. 238.302 or s. 560.702 , 2009 stats., the claimant may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the claimant becomes ineligible for tax benefits; or succeeding taxable years and the claimant may not carry over unused credits from previous years to offset the tax imposed under s. 71.02 for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the claimant becomes ineligible for tax benefits; or succeeding taxable years. 3. Section 71.28 (4) (g) and (h) , as it applies to the credit under s. 71.28 (4) , applies to the credit under this subsection. (3) Farmland preservation credit. The farmland preservation credit under subch. IX may be claimed against taxes otherwise due. (3g) Technology zones credit. (a) Subject to the limitations under this subsection and ss. 73.03 (35m) and 238.23 and s. 560.96 , 2009 stats., a business that is certified under s. 238.23 (3) or s. 560.96 (3) , 2009 stats., may claim as a credit against the taxes imposed under s. 71.02 an amount equal to the sum of the following, as established under s. 238.23 (3) (c) or s. 560.96 (3) (c) , 2009 stats.: 1. The amount of real and personal property taxes imposed under s. 70.01 that the business paid in the taxable year. 2. Ten percent of the following amounts of capital investments that are made by the business in the technology zone in the year to which the claim relates: a. The purchase price of depreciable, tangible personal property.

Official source: Wisconsin State Legislature. Reproduced from public-domain Wisconsin statutes; confirm against the official source for the current text. Not legal advice.