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(a) Definitions.
In this subsection: 1. “Claimant” means a person certified to receive tax benefits under s. 238.309 (2) (b). 2. “Qualified short line railroad maintenance expenditures” means all of the following: a. Gross expenditures for railroad infrastructure rehabilitation or maintenance improvements located in this state, including rail, tie plates, joint bars, fasteners, switches, ballast, subgrade, roadbed, industrial leads, sidings, signs, safety barriers, crossing signals and gates, and related track structures. b. Gross expenditures for 3rd-party labor related to expenditures described in subd. 2. a. c. Gross expenditures for wages paid to employees in positions directly related to maintenance activities for expenditures described in subd. 2. a.
“Claimant” means a person certified to receive tax benefits under s. 238.309 (2) (b).
“Qualified short line railroad maintenance expenditures” means all of the following: a. Gross expenditures for railroad infrastructure rehabilitation or maintenance improvements located in this state, including rail, tie plates, joint bars, fasteners, switches, ballast, subgrade, roadbed, industrial leads, sidings, signs, safety barriers, crossing signals and gates, and related track structures. b. Gross expenditures for 3rd-party labor related to expenditures described in subd. 2. a. c. Gross expenditures for wages paid to employees in positions directly related to maintenance activities for expenditures described in subd. 2. a.
Gross expenditures for railroad infrastructure rehabilitation or maintenance improvements located in this state, including rail, tie plates, joint bars, fasteners, switches, ballast, subgrade, roadbed, industrial leads, sidings, signs, safety barriers, crossing signals and gates, and related track structures.
Gross expenditures for 3rd-party labor related to expenditures described in subd. 2. a.
Gross expenditures for wages paid to employees in positions directly related to maintenance activities for expenditures described in subd. 2. a.
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 short line railroad maintenance expenditures made by the claimant during the taxable year to which the claim relates.
1. No credit may be claimed under this subsection for any qualified short line railroad maintenance expenditures that are used to claim a tax credit under federal law or that are funded by a federal or state grant. 2. No claimant may use an expenditure to claim both a credit under this subsection and a credit under sub. (8t). 3. The total amount of the credits under this subsection and ss. 71.07 (8v) and 71.47 (8v) for a claimant for a taxable year may not exceed an amount equal to $5,000 multiplied by the number of miles of railroad track owned or leased by the claimant in this state on December 31 of the taxable year to which the claim applies. 4. No credit may be allowed under this subsection unless the claimant submits an application under s. 238.309 and includes with the claimant’s return a copy of the claimant’s verification under s. 238.309. 5. 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 credit may be claimed under this subsection for any qualified short line railroad maintenance expenditures that are used to claim a tax credit under federal law or that are funded by a federal or state grant.
No claimant may use an expenditure to claim both a credit under this subsection and a credit under sub. (8t).
The total amount of the credits under this subsection and ss. 71.07 (8v) and 71.47 (8v) for a claimant for a taxable year may not exceed an amount equal to $5,000 multiplied by the number of miles of railroad track owned or leased by the claimant in this state on December 31 of the taxable year to which the claim applies.
No credit may be allowed under this subsection unless the claimant submits an application under s. 238.309 and 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) (b) 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) (b) 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) (b) 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) (b) 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) (b) 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) (b) 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.