(1) To obtain the department's determinations
in sub. (2), and prior to filing for tax benefits, a claimant shall submit all
of the following to the department, in writing:
(a) A list and description of the production
expenditures incurred during the taxable year.
(b) A list of the salary, wages, or
labor-related contract payments that were paid as specified in sub. (2) (b),
and a description of the corresponding services.
(c) Attestation that the employees who
received the salary, wages, or labor-related contract payments as specified
sub. (2) (b) were residents of this state under s.
71.02, Stats., at the time of
being paid.
(d) Verification that
the $50,000 or $100,000 threshold in s.
71.07(5f) (a) 1
(intro.), Stats., was exceeded.
(e)
Verification that the 35 percent threshold in s.
71.07(5f) (c)1, 71.28(5f) (c) 1, or 71.47(5f) (c) 1, Stats., was met.
Note: Sections
71.07(5f) (c) 1, 71.28(5f) (c) 1, and 71.47(5f) (c) 1, Stats., read as follows: "A claimant
may not claim a credit under this subsection if less than 35 percent of the
total budget for the accredited production is spent in this state."
(f) Verification of compliance
with the sourcing requirement in s.
71.07(5f) (c)3, 71.28(5f) (c) 3, or 71.47(5f) (c) 3, Stats.
Note: Sections
71.07(5f) (c) 3, 71.28(5f) (c) 3, and 71.47(5f) (c) 3, Stats., read as follows: "No credit
may be claimed under par. (b) 3. for the purchase of tangible personal property
or items, property, or goods under s.
77.52(1) (b), (c), or (d) the sale of which is not sourced to this
state, as provided under s.
77.522."
(g) A fee in the amount of 2 percent of the
production expenditures listed in the application, or $5,000, whichever is
less.
Note: See s.
Tour 4.20(1) Note for a reprint of s.
71.07(5f) (a) 1
(intro.), Stats.
(h)
Documentation evidencing that receipt of the credit is a major factor in the
applicant's decision to operate the accredited production in this state. The
documentation shall include details showing that the applicant has multistate
or international location options and either could reasonably operate the
production outside the state or is considering operating the production in at
least one other state or nation.
(i) Any subsequent clarification requested by
the department.
(2) The
department shall determine the following amounts, after accrediting a
production, and shall notify the claimant of those amounts, in writing:
(a) The production expenditures that were
incurred during the taxable year.
(b) The salary, wages, or labor-related
contract payments that were paid during the taxable year by the claimant to
those employees of the claimant who met both of the following criteria:
1. Rendered services in this state to produce
an accredited production.
2. Were
residents of this state at the time they were paid.
(c) Any reduction in allocation of tax
credits that is needed to either broaden the potential for promoting economic
development or to avoid exceeding the annual aggregated cap of $500,000
specified in ss. 71.07(5f) (c) 5. and (5h) (c) 4m, 71.28(5f) (c) 5. and (5h) (c) 4m, and
71.47(5f) (c) 5. and (5h) (c) 4m, Stats.
(3)
(a) The
department may increase the amount specified in a notification issued under
sub. (2), after a claimant submits adequate written justification for that
increase.
(b) The department may
decrease the amount specified in a notification issued under sub. (2), after
determining that the information on which the amount was based is inaccurate or
significantly misleading.
(c) The
department shall notify a claimant, in writing, of any increase or decrease
established under this subsection.
In accordance with s.
41.155(3),
Stats., the department will notify the department of revenue of the production
expenditures that are verified under this section.
