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(a) Definitions.
In this subsection: 1. “Claimant” means a person certified to receive tax benefits under s. 238.309 (2) (a). 2. “Qualified new rail infrastructure expenditures” means capital expenditures for rail infrastructure and improvements in this state placed in service after December 31, 2025, including expenditures for the acquisition of right-of-way; engineering; construction of new track such as industrial leads, switches, spurs, and sidings; rehabilitation of existing inactive track to reinstate operation; loading dock improvements; and transloading structures involved with servicing customer locations or expansions.
“Claimant” means a person certified to receive tax benefits under s. 238.309 (2) (a).
“Qualified new rail infrastructure expenditures” means capital expenditures for rail infrastructure and improvements in this state placed in service after December 31, 2025, including expenditures for the acquisition of right-of-way; engineering; construction of new track such as industrial leads, switches, spurs, and sidings; rehabilitation of existing inactive track to reinstate operation; loading dock improvements; and transloading structures involved with servicing customer locations or expansions.
For taxable years beginning after December 31, 2025, and before January 1, 2031, and subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.23, up to the amount of those taxes, an amount equal to 50 percent of the qualified new rail infrastructure expenditures made by the claimant during the taxable year to which the claim relates.
1. No claimant may use an expenditure to claim both a credit under this subsection and a credit under sub. (8v). 2. The total amount of the credits under this subsection and ss. 71.07 (8t) and 71.47 (8t) for a claimant for a taxable year may not exceed $2,000,000 per credit application approved and verified under s. 238.309. 3. No credit may be allowed under this subsection unless the claimant includes with the claimant’s return a copy of the claimant’s verification under s. 238.309. 4. Partnerships, tax-option corporations, and limited liability companies may not claim a credit under this subsection, but the eligibility for, and the amount of, the credit are based on their expenditures made under par. (b). A partnership, tax-option corporation, or limited liability company shall compute the amount of the credit that each of its partners, shareholders, or members may claim and shall provide that information to each of them. Partners of a partnership, shareholders of tax-option corporations, and members of limited liability companies may claim the credit in proportion to their ownership interest.
No claimant may use an expenditure to claim both a credit under this subsection and a credit under sub. (8v).
The total amount of the credits under this subsection and ss. 71.07 (8t) and 71.47 (8t) for a claimant for a taxable year may not exceed $2,000,000 per credit application approved and verified under s. 238.309.
No credit may be allowed under this subsection unless the claimant includes with the claimant’s return a copy of the claimant’s verification under s. 238.309.
Partnerships, tax-option corporations, and limited liability companies may not claim a credit under this subsection, but the eligibility for, and the amount of, the credit are based on their expenditures made under par. (b). A partnership, tax-option corporation, or limited liability company shall compute the amount of the credit that each of its partners, shareholders, or members may claim and shall provide that information to each of them. Partners of a partnership, shareholders of tax-option corporations, and members of limited liability companies may claim the credit in proportion to their ownership interest.
1. Subsection (4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection, including credits transferred under par. (e). 2. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 5 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expenditure was made and the year in which the carry-forward credit is claimed.
Subsection (4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection, including credits transferred under par. (e).
If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 5 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expenditure was made and the year in which the carry-forward credit is claimed.
1. Any person may sell or otherwise transfer a credit claimed under par. (b), in whole or in part, to another person who is subject to the taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and submits with the notification a copy of the transfer documents, and the department approves the transfer. The transferor may file a claim for a credit under par. (b) on a form prescribed by the department at the time of the transfer request. Subject to subd. 2. b., the transferee may first use the credit to offset tax in the taxable year of the transferor in which the transfer occurs, and may use the credit only to offset tax in taxable years otherwise allowed to be claimed and carried forward by the original claimant. 2. a. If a person’s certification under s. 238.309 (2) (a) is revoked by the Wisconsin Economic Development Corporation and the person used the certification to claim a credit under this subsection and transferred the credit under subd. 1., the person shall add to the person’s liability for taxes imposed under s. 71.23 the total amount of the credits that were credited against Wisconsin income or franchise taxes by the person or by any person to whom the credits were transferred. b. If a person’s certification under s. 238.309 (2) (a) is revoked by the Wisconsin Economic Development Corporation and the person used the certification to claim a credit under this subsection and transferred the credit under subd. 1., the transferee may not use the credit to offset Wisconsin income or franchise taxes.
Any person may sell or otherwise transfer a credit claimed under par. (b), in whole or in part, to another person who is subject to the taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and submits with the notification a copy of the transfer documents, and the department approves the transfer. The transferor may file a claim for a credit under par. (b) on a form prescribed by the department at the time of the transfer request. Subject to subd. 2. b., the transferee may first use the credit to offset tax in the taxable year of the transferor in which the transfer occurs, and may use the credit only to offset tax in taxable years otherwise allowed to be claimed and carried forward by the original claimant.
a. If a person’s certification under s. 238.309 (2) (a) is revoked by the Wisconsin Economic Development Corporation and the person used the certification to claim a credit under this subsection and transferred the credit under subd. 1., the person shall add to the person’s liability for taxes imposed under s. 71.23 the total amount of the credits that were credited against Wisconsin income or franchise taxes by the person or by any person to whom the credits were transferred. b. If a person’s certification under s. 238.309 (2) (a) is revoked by the Wisconsin Economic Development Corporation and the person used the certification to claim a credit under this subsection and transferred the credit under subd. 1., the transferee may not use the credit to offset Wisconsin income or franchise taxes.
If a person’s certification under s. 238.309 (2) (a) is revoked by the Wisconsin Economic Development Corporation and the person used the certification to claim a credit under this subsection and transferred the credit under subd. 1., the person shall add to the person’s liability for taxes imposed under s. 71.23 the total amount of the credits that were credited against Wisconsin income or franchise taxes by the person or by any person to whom the credits were transferred.
If a person’s certification under s. 238.309 (2) (a) is revoked by the Wisconsin Economic Development Corporation and the person used the certification to claim a credit under this subsection and transferred the credit under subd. 1., the transferee may not use the credit to offset Wisconsin income or franchise taxes.