SB 378

Under current law, for income tax purposes, under certain circumstances, a

taxpayer may claim a Wisconsin net operating loss against Wisconsin taxable income

of the two years preceding the year in which the taxpayer sustained the loss. This

bill clarifies that a taxpayer need not make an offset against Wisconsin modified

taxable income of the two years preceding the loss, if the taxpayer chooses not to

carry back the net operating loss to the two years preceding the loss.

Under current law, a person may claim the jobs tax credit if the Wisconsin

Economic Development Corporation certifies the person to receive the tax credit, the

person increases net employment in the person's business, and the person provides

certain wages or job training to its full-time employees. This bill specifies that to be

eligible for the jobs tax credit a person must increase net employment in the person's

business in this state. Therefore, under the bill, a person may qualify for the jobs tax

credit by relocating existing jobs to this state even if the number of individuals the

person's business employs nationwide does not increase. Similarly, under the bill,

a person does not qualify for the jobs tax credit by increasing the number of

individuals the person's business employs nationwide if the number of individuals

the person's business employs in this state does not increase.

Under current law, for income and franchise tax purposes, a taxpayer may not

claim a relocated business deduction or tax credit for taxable years beginning after

December 31, 2013. Under this bill, a taxpayer who is first eligible to claim a

relocated business deduction or tax credit for a taxable year beginning after

December 31, 2012, and before January 1, 2014, may claim the deduction or credit

in the following taxable year.

The bill also provides that the manufacturing and agriculture credit may be

claimed against the alternative minimum tax.

Finally, the bill makes technical changes to the electronic medical records tax

credit and to the sales and use tax exemption for tangible personal property used in

commercial printing.