Wisconsin 2025-2026 Regular Session

Wisconsin Assembly Bill AB231 Compare Versions

Only one version of the bill is available at this time.

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1	1	2025 - 2026 LEGISLATURE
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4	4	2025 ASSEMBLY BILL 231
5	5	May 2, 2025 - Introduced by Representatives ARMSTRONG, CALLAHAN, HURD,
6	6	BROWN, DOYLE, EMERSON, GOODWIN, GREEN, JOHNSON, KITCHENS, KREIBICH,
7	7	MAXEY, MELOTIK, MIRESSE, MOSES, MURSAU, O'CONNOR, PRADO, SNYDER,
8	8	STEFFEN, SWEARINGEN, TITTL, WICHGERS and ZIMMERMAN, cosponsored by
9	9	Senators BRADLEY, TESTIN, DRAKE, FEYEN, LARSON, PFAFF, QUINN and
10	10	SPREITZER. Referred to Committee on Ways and Means.
11	11	AN ACT to amend 71.05 (6) (a) 15., 71.10 (4) (i), 71.21 (4) (a), 71.26 (2) (a) 4.,
12	12	71.30 (3) (f), 71.34 (1k) (g), 71.45 (2) (a) 10. and 71.49 (1) (f); to create 13.94 (1)
13	13	(zm), 15.448, 20.835 (2) (bm), 41.152, 71.07 (5f), 71.07 (5h), 71.10 (4) (fs), 71.10
14	14	(4) (ft), 71.28 (5f), 71.28 (5h), 71.30 (3) (epr), 71.30 (3) (eps), 71.47 (5f), 71.47
15	15	(5h), 71.49 (1) (epr) and 71.49 (1) (eps) of the statutes; relating to: creating a
16	16	tax credit for expenses related to film production services and for capital
17	17	investments made by a film production company, granting rule-making
18	18	authority, and making an appropriation.
19	19	Analysis by the Legislative Reference Bureau
20	20	This bill creates income and franchise tax credits for film production
21	21	companies and creates the State Film Office, attached to the Department of
22	22	Tourism, to implement the tax credit accreditations and allocations. Under the bill,
23	23	a film production company may claim a credit in an amount that is equal to 30
24	24	percent of the salary or wages paid to the company[s employees in the taxable year
25	25	for services rendered in this state to produce a film, video, broadcast advertisement,
26	26	or television production, as approved by the State Film Office, and paid to
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39	39	employees who were residents of this state at the time that they were paid. The
40	40	total amount of the credits that may be claimed by a taxpayer may not exceed an
41	41	amount that is equal to the first $250,000 of salary or wages paid to each of the
42	42	taxpayer[s employees in the taxable year, not including the salary or wages paid to
43	43	the taxpayer[s two highest-paid employees in the taxable year, for a production with
44	44	budgeted expenditures of $1,000,000 or more. If the total amount of the credits
45	45	claimed by a taxpayer exceeds the taxpayer[s tax liability, the state will not issue a
46	46	refund, but the taxpayer may carry forward any remaining credit to subsequent
47	47	taxable years.
48	48	Under the bill, a film production company may claim an income and franchise
49	49	tax credit in an amount that is equal to 30 percent of the production expenditures
50	50	paid by the company in the taxable year to produce a film, video, broadcast
51	51	advertisement, or television production. If the total amount of the credits claimed
52	52	by the company exceeds the company[s tax liability, the state will issue a refund.
53	53	The bill also allows a film production company to claim an income and
54	54	franchise tax credit, for the first three taxable years that the company is doing
55	55	business in this state, in an amount that is equal to 30 percent of the amount that
56	56	the claimant paid in the taxable year to purchase depreciable tangible personal
57	57	property or to acquire, construct, rehabilitate, remodel, or repair real property.
58	58	Under the bill, a film production company may claim an income and franchise
59	59	tax credit in an amount that is equal to the amount of sales and use taxes that the
60	60	claimant paid for tangible personal property and taxable services that are used to
61	61	produce a film, video, broadcast advertisement, or television production in this
62	62	state.
63	63	The bill provides that the State Film Office may not allocate more than
64	64	$10,000,000 in film production and investment tax credits in each fiscal year. The
65	65	bill also requires the State Film Office to annually submit a report to the legislature
66	66	that specifies the number of persons who submitted credit applications in the
67	67	previous year and the amount of the credits allocated to each such applicant and to
68	68	make recommendations on improving the efficiency of the program. Finally, the bill
69	69	requires the Legislative Audit Bureau to biennially prepare a performance
70	70	evaluation audit of the accreditation program implemented by the State Film
71	71	Office.
72	72	For further information see the state fiscal estimate, which will be printed as
73	73	an appendix to this bill.
74	74	The people of the state of Wisconsin, represented in senate and assembly, do
75	75	enact as follows:
76	76	SECTION 1. 13.94 (1) (zm) of the statutes is created to read:
77	77	13.94 (1) (zm) Biennially, beginning in 2027, prepare a performance
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84	84	evaluation audit of the program to accredit productions for purposes of ss. 71.07 (5f)
85	85	and (5h), 71.28 (5f) and (5h), and 71.47 (5f) and (5h) by the state film office.
86	86	SECTION 2. 15.448 of the statutes is created to read:
87	87	15.448 Same; offices. (1) STATE FILM OFFICE. There is created a state film
88	88	office in the department of tourism. The director of the office shall be appointed by
89	89	the secretary of tourism.
90	90	SECTION 3. 20.835 (2) (bm) of the statutes is created to read:
91	91	20.835 (2) (bm) Film production services credit. A sum sufficient to make the
92	92	payments under ss. 71.07 (5f) (d) 2., 71.28 (5f) (d) 2., and 71.47 (5f) (d) 2.
93	93	SECTION 4. 41.152 of the statutes is created to read:
94	94	41.152 Film production tax credits. (1) The state film office shall
95	95	implement a program to accredit productions for purposes of ss. 71.07 (5f) and (5h),
96	96	71.28 (5f) and (5h), and 71.47 (5f) and (5h). Application for accreditation shall be
97	97	made to the office in each taxable year for which accreditation is desired.
98	98	(2) If the state film office accredits a production under sub. (1), the office shall
99	99	determine the amount of the production[s production expenditures, as defined in s.
100	100	71.07 (5f) (a) 4. The state film office shall not issue an accreditation under sub. (1)
101	101	without first receiving written confirmation from the applicant that the applicant
102	102	has retained a certified public accountant located in this state to conduct periodic
103	103	audits to ensure compliance with this section and ss. 71.07 (5f) and (5h), 71.28 (5f)
104	104	and (5h), and 71.47 (5f) and (5h), as prescribed by rule by the office. An entity
105	105	applying for a tax credit under s. 71.07 (5f), 71.28 (5f), or 71.47 (5f) that does not
106	106	have its commercial domicile in this state shall indicate that on its application
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134	134	along with the amount of production expenditures it anticipates spending in this
135	135	state and the amount of expenditures, if any, it anticipates spending in another
136	136	state on the same production.
137	137	(3) The state film office shall notify the department of revenue of every
138	138	production accredited under sub. (1), the amount of the production[s production
139	139	expenditures, as defined in s. 71.07 (5f) (a) 4., and the amount of the tax credits
140	140	under ss. 71.07 (5f) and (5h), 71.28 (5f) and (5h), and 71.47 (5f) and (5h) allocated to
141	141	the applicant for the taxable year for which the applicant[s claim relates.
142	142	(4) The state film office may not allocate more than $10,000,000 in tax credits
143	143	under ss. 71.07 (5f) and (5h), 71.28 (5f) and (5h), and 71.47 (5f) and (5h) in each
144	144	fiscal year and no more than $1,000,000 in tax credits to any single applicant in
145	145	each fiscal year.
146	146	(5) Each applicant who produces an accredited production, as defined in s.
147	147	71.07 (5f) (a) 1., that is eligible for a tax credit under s. 71.07 (5f), 71.28 (5f), or
148	148	71.47 (5f) shall include in the finished production an acknowledgment to the state
149	149	of Wisconsin and the state film office as designed by the state film office, including
150	150	a logo designed by the state film office.
151	151	(6) Annually, beginning in 2027, the state film office shall prepare a report
152	152	specifying the number of persons who submitted tax credit applications in the
153	153	previous year and the amount of the tax credits allocated to each such applicant.
154	154	The report shall also provide recommendations and suggestions on improving the
155	155	efficiency of the program implemented under this section. The office shall submit
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182	182	the report to the legislature, in the manner provided under s. 13.172 (2), no later
183	183	than April 30 each year.
184	184	(7) The department shall promulgate rules to administer this section.
185	185	SECTION 5. 71.05 (6) (a) 15. of the statutes is amended to read:
186	186	71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dm),
187	187	(2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5f), (5h),
188	188	(5i), (5j), (5k), (5r), (5rm), (6n), and (10) and not passed through by a partnership,
189	189	limited liability company, or tax-option corporation that has added that amount to
190	190	the partnership[s, company[s, or tax-option corporation[s income under s. 71.21 (4)
191	191	or 71.34 (1k) (g).
192	192	SECTION 6. 71.07 (5f) of the statutes is created to read:
193	193	71.07 (5f) FILM PRODUCTION SERVICES CREDIT. (a) Definitions. In this
194	194	subsection:
195	195	1. XAccredited productionY means a film, video, broadcast advertisement, or
196	196	television production, as approved by the state film office, for which the aggregate
197	197	salary and wages included in the cost of the production for the period ending 12
198	198	months after the month in which the principal filming or taping of the production
199	199	begins exceeds $100,000 for a production that is 30 minutes or longer or $50,000 for
200	200	a production that is less than 30 minutes. XAccredited productionY includes a
201	201	scripted, unscripted, reality, or competition production, but does not include any of
202	202	the following, regardless of the production costs:
203	203	a. News, current events, or public programming or a program that includes
204	204	weather or market reports.
205	205	b. A talk show.
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234	234	c. A sports event or sports activity.
235	235	d. A gala presentation or awards show.
236	236	e. A finished production that solicits funds.
237	237	f. A production for which the production company is required under 18 USC
238	238	2257 to maintain records with respect to a performer portrayed in a single media or
239	239	multimedia program.
240	240	g. A production produced primarily for industrial, corporate, or institutional
241	241	purposes.
242	242	2. XClaimantY means a film production company, as defined in sub. (5h) (a) 2.,
243	243	that operates an accredited production in this state, if the company owns the
244	244	copyright in the accredited production or has contracted directly with the copyright
245	245	owner or a person acting on the owner[s behalf and if the company has a viable plan,
246	246	as determined by the state film office, for the commercial distribution of the
247	247	finished production.
248	248	3. XCommercial domicileY means the location from which a trade or business
249	249	is principally managed and directed, based on any factors the state film office
250	250	determines are appropriate, including the location where the greatest number of
251	251	employees of the trade or business work, the trade or business has its office or base
252	252	of operations, or from which the employees are directed or controlled.
253	253	4. XProduction expendituresY means any expenditures that are incurred in
254	254	this state and directly used to produce an accredited production, including
255	255	expenditures for writing, budgeting, casting, location scouts, set construction and
256	256	operation, wardrobes, makeup, clothing accessories, photography, sound recording,
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284	284	sound synchronization, sound mixing, lighting, editing, film processing, film
285	285	transferring, special effects, visual effects, renting or leasing facilities or
286	286	equipment, renting or leasing motor vehicles, food, lodging, and any other similar
287	287	pre-production, production, and post-production expenditure as determined by the
288	288	state film office. XProduction expendituresY includes expenditures for music that is
289	289	performed, composed, or recorded by a musician who is a resident of this state or
290	290	published or distributed by an entity that has its commercial domicile in this state;
291	291	air travel that is purchased from a travel agency or company that has its commercial
292	292	domicile in this state; and insurance that is purchased from an insurance agency or
293	293	company that has its commercial domicile in this state. XProduction expendituresY
294	294	does not include salary or wages or expenditures for the marketing and distribution
295	295	of an accredited production.
296	296	(b) Filing claims. Subject to the limitations provided in this subsection, for
297	297	taxable years beginning after December 31, 2025, a claimant may claim as a credit
298	298	against the tax imposed under s. 71.02 any of the following amounts:
299	299	1. An amount equal to 30 percent of the salary or wages paid by the claimant
300	300	to the claimant[s employees in the taxable year for services rendered in this state to
301	301	produce an accredited production and paid to employees who were residents of this
302	302	state at the time that they were paid.
303	303	2. An amount equal to 30 percent of the production expenditures paid by the
304	304	claimant in the taxable year to produce an accredited production.
305	305	3. An amount equal to the taxes imposed under ss. 77.52 and 77.53 that the
306	306	claimant paid in the taxable year on the purchase of tangible personal property and
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334	334	taxable services that are used directly in producing an accredited production in this
335	335	state, including all stages from the final script stage to the distribution of the
336	336	finished production.
337	337	(c) Limitations. 1. No amount of the salary or wages paid under par. (b) 1.
338	338	may be the basis for a credit under this subsection unless the salary or wages are
339	339	paid for services rendered after December 31, 2025, and directly incurred to
340	340	produce the accredited production.
341	341	2. The total amount of the credits that may be claimed by a claimant under
342	342	par. (b) 1. shall not exceed an amount equal to the first $250,000 of salary or wages
343	343	paid to each of the claimant[s employees, as described in par. (b) 1., in the taxable
344	344	year, not including the salary or wages paid to the claimant[s 2 highest-paid
345	345	employees, as described in par. (b) 1., in the taxable year, if the claimant[s budgeted
346	346	production expenditures are $1,000,000 or more.
347	347	3. No credit may be allowed under this subsection unless the claimant files an
348	348	application with the state film office, at the time and in the manner prescribed by
349	349	the office, and the office approves the application. The claimant shall submit a copy
350	350	of the approved application with the claimant[s return.
351	351	4. Partnerships, limited liability companies, and tax-option corporations may
352	352	not claim the credit under this subsection, but the eligibility for, and the amount of,
353	353	the credit are based on their payment of amounts under par. (b). A partnership,
354	354	limited liability company, or tax-option corporation shall compute the amount of
355	355	credit that each of its partners, members, or shareholders may claim and shall
356	356	provide that information to each of them. Partners, members of limited liability
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384	384	companies, and shareholders of tax-option corporations may claim the credit in
385	385	proportion to their ownership interest.
386	386	(d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
387	387	credit under s. 71.28 (4), applies to the credits under this subsection. Section 71.28
388	388	(4) (f), as it applies to the credit under s. 71.28 (4), applies to the credits under par.
389	389	(b) 1. and 3.
390	390	2. If the allowable amount of the claim under par. (b) 2. exceeds the tax
391	391	otherwise due under s. 71.02 or no tax is due under s. 71.02, the amount of the
392	392	claim not used to offset the tax due shall be certified by the department of revenue
393	393	to the department of administration for payment by check, share draft, or other
394	394	draft drawn from the appropriation account under s. 20.835 (2) (bm).
395	395	3. Any person, including a nonprofit entity described in section 501 (c) (3) of
396	396	the Internal Revenue Code, may sell or otherwise transfer a credit under this
397	397	subsection, in whole or in part, to another person who is subject to the taxes
398	398	imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
399	399	transfer, and submits with the notification a copy of the transfer documents, and
400	400	the department certifies ownership of the credit. The transferee may first use the
401	401	credit to offset tax of the transferor in the taxable year in which the transfer occurs
402	402	and may use the credit only to offset tax in taxable years in which the credit is
403	403	otherwise allowed to be claimed and carried forward by the original claimant.
404	404	SECTION 7. 71.07 (5h) of the statutes is created to read:
405	405	71.07 (5h) FILM PRODUCTION COMPANY INVESTMENT CREDIT. (a) Definitions.
406	406	In this subsection:
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434	434	1. XClaimantY means a person who files a claim under this subsection and
435	435	who does business in this state as a film production company.
436	436	2. XFilm production companyY means an entity that creates films, videos,
437	437	broadcast advertisement, or television productions, not including the productions
438	438	described under sub. (5f) (a) 1. a. to g.
439	439	3. XPhysical workY does not include preliminary activities such as planning,
440	440	designing, securing financing, researching, developing specifications, or stabilizing
441	441	property to prevent deterioration.
442	442	4. XPreviously owned propertyY means real property that the claimant or a
443	443	related person owned during the 2 years prior to doing business in this state as a
444	444	film production company and for which the claimant may not deduct a loss from the
445	445	sale of the property to, or an exchange of the property with, the related person
446	446	under section 267 of the Internal Revenue Code.
447	447	5. XUsed exclusivelyY means used to the exclusion of all other uses except for
448	448	other use not exceeding 5 percent of total use.
449	449	(b) Filing claims. Subject to the limitations provided in this subsection, for
450	450	taxable years beginning after December 31, 2025, a claimant may claim as a credit
451	451	against the tax imposed under s. 71.02, up to the amount of the taxes, for the first 3
452	452	taxable years that the claimant is doing business in this state as a film production
453	453	company, an amount that is equal to 30 percent of the following that the claimant
454	454	paid in the taxable year to establish a film production company in this state:
455	455	1. The purchase price of depreciable, tangible personal property.
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482	482	2. The amount expended to acquire, construct, rehabilitate, remodel, or repair
483	483	real property.
484	484	(c) Limitations. 1. A claimant may claim the credit under par. (b) 1., if the
485	485	tangible personal property is purchased after December 31, 2025, and the personal
486	486	property is used exclusively in the claimant[s business as a film production
487	487	company.
488	488	2. A claimant may claim the credit under par. (b) 2. for an amount expended to
489	489	construct, rehabilitate, remodel, or repair real property, if the claimant began the
490	490	physical work of construction, rehabilitation, remodeling, or repair, or any
491	491	demolition or destruction in preparation for the physical work, after December 31,
492	492	2025, or if the completed project is placed in service after December 31, 2025.
493	493	3. A claimant may claim the credit under par. (b) 2. for an amount expended to
494	494	acquire real property, if the property is not previously owned property and if the
495	495	claimant acquires the property after December 31, 2025, or if the completed project
496	496	is placed in service after December 31, 2025.
497	497	4. No claim may be allowed under this subsection unless the state film office
498	498	certifies, in writing, that the credits claimed under this subsection are for expenses
499	499	related to establishing a film production company in this state and the claimant
500	500	submits a copy of the certification with the claimant[s return.
501	501	5. Partnerships, limited liability companies, and tax-option corporations may
502	502	not claim the credit under this subsection, but the eligibility for, and the amount of,
503	503	the credit are based on their payment of amounts under par. (b). A partnership,
504	504	limited liability company, or tax-option corporation shall compute the amount of
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512	512	8
513	513	9
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515	515	11
516	516	12
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527	527	23 2025 - 2026 Legislature
528	528	ASSEMBLY BILL 231
529	529	- 12 - LRB-2456/1
530	530	KP:wlj
531	531	SECTION 7
532	532	credit that each of its partners, members, or shareholders may claim and shall
533	533	provide that information to each of them. Partners, members of limited liability
534	534	companies, and shareholders of tax-option corporations may claim the credit in
535	535	proportion to their ownership interests.
536	536	(d) Administration. 1. Section 71.28 (4) (e) to (h), as it applies to the credit
537	537	under s. 71.28 (4), applies to the credits under this subsection.
538	538	2. Any person, including a nonprofit entity described in section 501 (c) (3) of
539	539	the Internal Revenue Code, may sell or otherwise transfer a credit under this
540	540	subsection, in whole or in part, to another person who is subject to the taxes
541	541	imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
542	542	transfer, and submits with the notification a copy of the transfer documents, and
543	543	the department certifies ownership of the credit. The transferee may first use the
544	544	credit to offset tax of the transferor in the taxable year in which the transfer occurs
545	545	and may use the credit only to offset tax in taxable years in which the credit is
546	546	otherwise allowed to be claimed and carried forward by the original claimant.
547	547	SECTION 8. 71.10 (4) (fs) of the statutes is created to read:
548	548	71.10 (4) (fs) Film production company investment credit under s. 71.07 (5h).
549	549	SECTION 9. 71.10 (4) (ft) of the statutes is created to read:
550	550	71.10 (4) (ft) Film production services credit under s. 71.07 (5f) (b) 1. and 3.
551	551	SECTION 10. 71.10 (4) (i) of the statutes is amended to read:
552	552	71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
553	553	preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
554	554	beyond under s. 71.613, homestead credit under subch. VIII, jobs tax credit under s.
555	555	1
556	556	2
557	557	3
558	558	4
559	559	5
560	560	6
561	561	7
562	562	8
563	563	9
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575	575	21
576	576	22
577	577	23 2025 - 2026 Legislature
578	578	ASSEMBLY BILL 231
579	579	- 13 - LRB-2456/1
580	580	KP:wlj
581	581	SECTION 10
582	582	71.07 (3q), business development credit under s. 71.07 (3y), research credit under s.
583	583	71.07 (4k) (e) 2. a., film production services credit under s. 71.07 (5f) (b) 2., veterans
584	584	and surviving spouses property tax credit under s. 71.07 (6e), enterprise zone jobs
585	585	credit under s. 71.07 (3w), electronics and information technology manufacturing
586	586	zone credit under s. 71.07 (3wm), earned income tax credit under s. 71.07 (9e),
587	587	estimated tax payments under s. 71.09, and taxes withheld under subch. X.
588	588	SECTION 11. 71.21 (4) (a) of the statutes is amended to read:
589	589	71.21 (4) (a) The amount of the credits computed by a partnership under s.
590	590	71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n),
591	591	(5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and passed through to
592	592	partners shall be added to the partnership[s income.
593	593	SECTION 12. 71.26 (2) (a) 4. of the statutes is amended to read:
594	594	71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
595	595	(1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (5f), (5g), (5h), (5i), (5j), (5k),
596	596	(5r), (5rm), (6n), and (10) and not passed through by a partnership, limited liability
597	597	company, or tax-option corporation that has added that amount to the
598	598	partnership[s, limited liability company[s, or tax-option corporation[s income under
599	599	s. 71.21 (4) or 71.34 (1k) (g).
600	600	SECTION 13. 71.28 (5f) of the statutes is created to read:
601	601	71.28 (5f) FILM PRODUCTION SERVICES CREDIT. (a) Definitions. In this
602	602	subsection:
603	603	1. XAccredited productionY means a film, video, broadcast advertisement, or
604	604	television production, as approved by the state film office, for which the aggregate
605	605	salary and wages included in the cost of the production for the period ending 12
606	606	1
607	607	2
608	608	3
609	609	4
610	610	5
611	611	6
612	612	7
613	613	8
614	614	9
615	615	10
616	616	11
617	617	12
618	618	13
619	619	14
620	620	15
621	621	16
622	622	17
623	623	18
624	624	19
625	625	20
626	626	21
627	627	22
628	628	23
629	629	24 2025 - 2026 Legislature
630	630	ASSEMBLY BILL 231
631	631	- 14 - LRB-2456/1
632	632	KP:wlj
633	633	SECTION 13
634	634	months after the month in which the principal filming or taping of the production
635	635	begins exceeds $100,000 for a production that is 30 minutes or longer or $50,000 for
636	636	a production that is less than 30 minutes. XAccredited productionY includes a
637	637	scripted, unscripted, reality, or competition production, but does not include any of
638	638	the following, regardless of the production costs:
639	639	a. News, current events, or public programming or a program that includes
640	640	weather or market reports.
641	641	b. A talk show.
642	642	c. A sports event or sports activity.
643	643	d. A gala presentation or awards show.
644	644	e. A finished production that solicits funds.
645	645	f. A production for which the production company is required under 18 USC
646	646	2257 to maintain records with respect to a performer portrayed in a single media or
647	647	multimedia program.
648	648	g. A production produced primarily for industrial, corporate, or institutional
649	649	purposes.
650	650	2. XClaimantY means a film production company, as defined in sub. (5h) (a) 2.,
651	651	that operates an accredited production in this state, if the company owns the
652	652	copyright in the accredited production or has contracted directly with the copyright
653	653	owner or a person acting on the owner[s behalf and if the company has a viable plan,
654	654	as determined by the state film office, for the commercial distribution of the
655	655	finished production.
656	656	3. XCommercial domicileY means the location from which a trade or business
657	657	1
658	658	2
659	659	3
660	660	4
661	661	5
662	662	6
663	663	7
664	664	8
665	665	9
666	666	10
667	667	11
668	668	12
669	669	13
670	670	14
671	671	15
672	672	16
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675	675	19
676	676	20
677	677	21
678	678	22
679	679	23 2025 - 2026 Legislature
680	680	ASSEMBLY BILL 231
681	681	- 15 - LRB-2456/1
682	682	KP:wlj
683	683	SECTION 13
684	684	is principally managed and directed, based on any factors the state film office
685	685	determines are appropriate, including the location where the greatest number of
686	686	employees of the trade or business work, the trade or business has its office or base
687	687	of operations, or from which the employees are directed or controlled.
688	688	4. XProduction expendituresY means any expenditures that are incurred in
689	689	this state and directly used to produce an accredited production, including
690	690	expenditures for writing, budgeting, casting, location scouts, set construction and
691	691	operation, wardrobes, makeup, clothing accessories, photography, sound recording,
692	692	sound synchronization, sound mixing, lighting, editing, film processing, film
693	693	transferring, special effects, visual effects, renting or leasing facilities or
694	694	equipment, renting or leasing motor vehicles, food, lodging, and any other similar
695	695	pre-production, production, and post-production expenditure as determined by the
696	696	state film office. XProduction expendituresY includes expenditures for music that is
697	697	performed, composed, or recorded by a musician who is a resident of this state or
698	698	published or distributed by an entity that has its commercial domicile in this state;
699	699	air travel that is purchased from a travel agency or company that has its commercial
700	700	domicile in this state; and insurance that is purchased from an insurance agency or
701	701	company that has its commercial domicile in this state. XProduction expendituresY
702	702	does not include salary or wages or expenditures for the marketing and distribution
703	703	of an accredited production.
704	704	(b) Filing claims. Subject to the limitations provided in this subsection, for
705	705	taxable years beginning after December 31, 2025, a claimant may claim as a credit
706	706	against the tax imposed under s. 71.23 any of the following amounts:
707	707	1
708	708	2
709	709	3
710	710	4
711	711	5
712	712	6
713	713	7
714	714	8
715	715	9
716	716	10
717	717	11
718	718	12
719	719	13
720	720	14
721	721	15
722	722	16
723	723	17
724	724	18
725	725	19
726	726	20
727	727	21
728	728	22
729	729	23 2025 - 2026 Legislature
730	730	ASSEMBLY BILL 231
731	731	- 16 - LRB-2456/1
732	732	KP:wlj
733	733	SECTION 13
734	734	1. An amount equal to 30 percent of the salary or wages paid by the claimant
735	735	to the claimant[s employees in the taxable year for services rendered in this state to
736	736	produce an accredited production and paid to employees who were residents of this
737	737	state at the time that they were paid.
738	738	2. An amount equal to 30 percent of the production expenditures paid by the
739	739	claimant in the taxable year to produce an accredited production.
740	740	3. An amount equal to the taxes imposed under ss. 77.52 and 77.53 that the
741	741	claimant paid in the taxable year on the purchase of tangible personal property and
742	742	taxable services that are used directly in producing an accredited production in this
743	743	state, including all stages from the final script stage to the distribution of the
744	744	finished production.
745	745	(c) Limitations. 1. No amount of the salary or wages paid under par. (b) 1.
746	746	may be the basis for a credit under this subsection unless the salary or wages are
747	747	paid for services rendered after December 31, 2025, and directly incurred to
748	748	produce the accredited production.
749	749	2. The total amount of the credits that may be claimed by a claimant under
750	750	par. (b) 1. shall not exceed an amount equal to the first $250,000 of salary or wages
751	751	paid to each of the claimant[s employees, as described in par. (b) 1., in the taxable
752	752	year, not including the salary or wages paid to the claimant[s 2 highest-paid
753	753	employees, as described in par. (b) 1., in the taxable year, if the claimant[s budgeted
754	754	production expenditures are $1,000,000 or more.
755	755	3. No credit may be allowed under this subsection unless the claimant files an
756	756	application with the state film office, at the time and in the manner prescribed by
757	757	1
758	758	2
759	759	3
760	760	4
761	761	5
762	762	6
763	763	7
764	764	8
765	765	9
766	766	10
767	767	11
768	768	12
769	769	13
770	770	14
771	771	15
772	772	16
773	773	17
774	774	18
775	775	19
776	776	20
777	777	21
778	778	22
779	779	23 2025 - 2026 Legislature
780	780	ASSEMBLY BILL 231
781	781	- 17 - LRB-2456/1
782	782	KP:wlj
783	783	SECTION 13
784	784	the office, and the office approves the application. The claimant shall submit a copy
785	785	of the approved application with the claimant[s return.
786	786	4. Partnerships, limited liability companies, and tax-option corporations may
787	787	not claim the credit under this subsection, but the eligibility for, and the amount of,
788	788	the credit are based on their payment of amounts under par. (b). A partnership,
789	789	limited liability company, or tax-option corporation shall compute the amount of
790	790	credit that each of its partners, members, or shareholders may claim and shall
791	791	provide that information to each of them. Partners, members of limited liability
792	792	companies, and shareholders of tax-option corporations may claim the credit in
793	793	proportion to their ownership interest.
794	794	(d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit
795	795	under sub. (4), applies to the credits under this subsection. Subsection (4) (f), as it
796	796	applies to the credit under sub. (4), applies to the credits under par. (b) 1. and 3.
797	797	2. If the allowable amount of the claim under par. (b) 2. exceeds the tax
798	798	otherwise due under s. 71.23 or no tax is due under s. 71.23, the amount of the
799	799	claim not used to offset the tax due shall be certified by the department of revenue
800	800	to the department of administration for payment by check, share draft, or other
801	801	draft drawn from the appropriation account under s. 20.835 (2) (bm).
802	802	3. Any person, including a nonprofit entity described in section 501 (c) (3) of
803	803	the Internal Revenue Code, may sell or otherwise transfer a credit under this
804	804	subsection, in whole or in part, to another person who is subject to the taxes
805	805	imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
806	806	transfer, and submits with the notification a copy of the transfer documents, and
807	807	1
808	808	2
809	809	3
810	810	4
811	811	5
812	812	6
813	813	7
814	814	8
815	815	9
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821	821	15
822	822	16
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827	827	21
828	828	22
829	829	23 2025 - 2026 Legislature
830	830	ASSEMBLY BILL 231
831	831	- 18 - LRB-2456/1
832	832	KP:wlj
833	833	SECTION 13
834	834	the department certifies ownership of the credit. The transferee may first use the
835	835	credit to offset tax of the transferor in the taxable year in which the transfer occurs
836	836	and may use the credit only to offset tax in taxable years in which the credit is
837	837	otherwise allowed to be claimed and carried forward by the original claimant.
838	838	SECTION 14. 71.28 (5h) of the statutes is created to read:
839	839	71.28 (5h) FILM PRODUCTION COMPANY INVESTMENT CREDIT. (a) Definitions.
840	840	In this subsection:
841	841	1. XClaimantY means a person who files a claim under this subsection and
842	842	who does business in this state as a film production company.
843	843	2. XFilm production companyY means an entity that creates films, videos,
844	844	broadcast advertisement, or television productions, not including the productions
845	845	described under sub. (5f) (a) 1. a. to g.
846	846	3. XPhysical workY does not include preliminary activities such as planning,
847	847	designing, securing financing, researching, developing specifications, or stabilizing
848	848	property to prevent deterioration.
849	849	4. XPreviously owned propertyY means real property that the claimant or a
850	850	related person owned during the 2 years prior to doing business in this state as a
851	851	film production company and for which the claimant may not deduct a loss from the
852	852	sale of the property to, or an exchange of the property with, the related person
853	853	under section 267 of the Internal Revenue Code.
854	854	5. XUsed exclusivelyY means used to the exclusion of all other uses except for
855	855	other use not exceeding 5 percent of total use.
856	856	(b) Filing claims. Subject to the limitations provided in this subsection, for
857	857	1
858	858	2
859	859	3
860	860	4
861	861	5
862	862	6
863	863	7
864	864	8
865	865	9
866	866	10
867	867	11
868	868	12
869	869	13
870	870	14
871	871	15
872	872	16
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876	876	20
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878	878	22
879	879	23 2025 - 2026 Legislature
880	880	ASSEMBLY BILL 231
881	881	- 19 - LRB-2456/1
882	882	KP:wlj
883	883	SECTION 14
884	884	taxable years beginning after December 31, 2025, a claimant may claim as a credit
885	885	against the tax imposed under s. 71.23, up to the amount of the taxes, for the first 3
886	886	taxable years that the claimant is doing business in this state as a film production
887	887	company, an amount that is equal to 30 percent of the following that the claimant
888	888	paid in the taxable year to establish a film production company in this state:
889	889	1. The purchase price of depreciable, tangible personal property.
890	890	2. The amount expended to acquire, construct, rehabilitate, remodel, or repair
891	891	real property.
892	892	(c) Limitations. 1. A claimant may claim the credit under par. (b) 1., if the
893	893	tangible personal property is purchased after December 31, 2025, and the personal
894	894	property is used exclusively in the claimant[s business as a film production
895	895	company.
896	896	2. A claimant may claim the credit under par. (b) 2. for an amount expended to
897	897	construct, rehabilitate, remodel, or repair real property, if the claimant began the
898	898	physical work of construction, rehabilitation, remodeling, or repair, or any
899	899	demolition or destruction in preparation for the physical work, after December 31,
900	900	2025, or if the completed project is placed in service after December 31, 2025.
901	901	3. A claimant may claim the credit under par. (b) 2. for an amount expended to
902	902	acquire real property, if the property is not previously owned property and if the
903	903	claimant acquires the property after December 31, 2025, or if the completed project
904	904	is placed in service after December 31, 2025.
905	905	4. No claim may be allowed under this subsection unless the state film office
906	906	certifies, in writing, that the credits claimed under this subsection are for expenses
907	907	1
908	908	2
909	909	3
910	910	4
911	911	5
912	912	6
913	913	7
914	914	8
915	915	9
916	916	10
917	917	11
918	918	12
919	919	13
920	920	14
921	921	15
922	922	16
923	923	17
924	924	18
925	925	19
926	926	20
927	927	21
928	928	22
929	929	23 2025 - 2026 Legislature
930	930	ASSEMBLY BILL 231
931	931	- 20 - LRB-2456/1
932	932	KP:wlj
933	933	SECTION 14
934	934	related to establishing a film production company in this state and the claimant
935	935	submits a copy of the certification with the claimant[s return.
936	936	5. Partnerships, limited liability companies, and tax-option corporations may
937	937	not claim the credit under this subsection, but the eligibility for, and the amount of,
938	938	the credit are based on their payment of amounts under par. (b). A partnership,
939	939	limited liability company, or tax-option corporation shall compute the amount of
940	940	credit that each of its partners, members, or shareholders may claim and shall
941	941	provide that information to each of them. Partners, members of limited liability
942	942	companies, and shareholders of tax-option corporations may claim the credit in
943	943	proportion to their ownership interests.
944	944	(d) Administration. 1. Subsection (4) (e) to (h), as it applies to the credit
945	945	under sub. (4), applies to the credits under this subsection.
946	946	2. Any person, including a nonprofit entity described in section 501 (c) (3) of
947	947	the Internal Revenue Code, may sell or otherwise transfer a credit under this
948	948	subsection, in whole or in part, to another person who is subject to the taxes
949	949	imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
950	950	transfer, and submits with the notification a copy of the transfer documents, and
951	951	the department certifies ownership of the credit. The transferee may first use the
952	952	credit to offset tax of the transferor in the taxable year in which the transfer occurs
953	953	and may use the credit only to offset tax in taxable years in which the credit is
954	954	otherwise allowed to be claimed and carried forward by the original claimant.
955	955	SECTION 15. 71.30 (3) (epr) of the statutes is created to read:
956	956	1
957	957	2
958	958	3
959	959	4
960	960	5
961	961	6
962	962	7
963	963	8
964	964	9
965	965	10
966	966	11
967	967	12
968	968	13
969	969	14
970	970	15
971	971	16
972	972	17
973	973	18
974	974	19
975	975	20
976	976	21
977	977	22 2025 - 2026 Legislature
978	978	ASSEMBLY BILL 231
979	979	- 21 - LRB-2456/1
980	980	KP:wlj
981	981	SECTION 15
982	982	71.30 (3) (epr) Film production company investment credit under s. 71.28
983	983	(5h).
984	984	SECTION 16. 71.30 (3) (eps) of the statutes is created to read:
985	985	71.30 (3) (eps) Film production services credit under s. 71.28 (5f) (b) 1. and 3.
986	986	SECTION 17. 71.30 (3) (f) of the statutes is amended to read:
987	987	71.30 (3) (f) The total of farmland preservation credit under subch. IX, jobs
988	988	credit under s. 71.28 (3q), enterprise zone jobs credit under s. 71.28 (3w), electronics
989	989	and information technology manufacturing zone credit under s. 71.28 (3wm),
990	990	business development credit under s. 71.28 (3y), research credit under s. 71.28 (4)
991	991	(k) 1., film production services credit under s. 71.28 (5f) (b) 2., and estimated tax
992	992	payments under s. 71.29.
993	993	SECTION 18. 71.34 (1k) (g) of the statutes is amended to read:
994	994	71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
995	995	corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w),
996	996	(3wm), (3y), (4), (5), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and
997	997	passed through to shareholders.
998	998	SECTION 19. 71.45 (2) (a) 10. of the statutes is amended to read:
999	999	71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
1000	1000	computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3w), (3y), (5f), (5g),
1001	1001	(5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and not passed through by a
1002	1002	partnership, limited liability company, or tax-option corporation that has added
1003	1003	that amount to the partnership[s, limited liability company[s, or tax-option
1004	1004	corporation[s income under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit
1005	1005	computed under s. 71.47 (3), (3t), (4), (4m), and (5).
1006	1006	1
1007	1007	2
1008	1008	3
1009	1009	4
1010	1010	5
1011	1011	6
1012	1012	7
1013	1013	8
1014	1014	9
1015	1015	10
1016	1016	11
1017	1017	12
1018	1018	13
1019	1019	14
1020	1020	15
1021	1021	16
1022	1022	17
1023	1023	18
1024	1024	19
1025	1025	20
1026	1026	21
1027	1027	22
1028	1028	23
1029	1029	24 2025 - 2026 Legislature
1030	1030	ASSEMBLY BILL 231
1031	1031	- 22 - LRB-2456/1
1032	1032	KP:wlj
1033	1033	SECTION 20
1034	1034	SECTION 20. 71.47 (5f) of the statutes is created to read:
1035	1035	71.47 (5f) FILM PRODUCTION SERVICES CREDIT. (a) Definitions. In this
1036	1036	subsection:
1037	1037	1. XAccredited productionY means a film, video, broadcast advertisement, or
1038	1038	television production, as approved by the state film office, for which the aggregate
1039	1039	salary and wages included in the cost of the production for the period ending 12
1040	1040	months after the month in which the principal filming or taping of the production
1041	1041	begins exceeds $100,000 for a production that is 30 minutes or longer or $50,000 for
1042	1042	a production that is less than 30 minutes. XAccredited productionY includes a
1043	1043	scripted, unscripted, reality, or competition production, but does not include any of
1044	1044	the following, regardless of the production costs:
1045	1045	a. News, current events, or public programming or a program that includes
1046	1046	weather or market reports.
1047	1047	b. A talk show.
1048	1048	c. A sports event or sports activity.
1049	1049	d. A gala presentation or awards show.
1050	1050	e. A finished production that solicits funds.
1051	1051	f. A production for which the production company is required under 18 USC
1052	1052	2257 to maintain records with respect to a performer portrayed in a single media or
1053	1053	multimedia program.
1054	1054	g. A production produced primarily for industrial, corporate, or institutional
1055	1055	purposes.
1056	1056	2. XClaimantY means a film production company, as defined in sub. (5h) (a) 2.,
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1084	1084	that operates an accredited production in this state, if the company owns the
1085	1085	copyright in the accredited production or has contracted directly with the copyright
1086	1086	owner or a person acting on the owner[s behalf and if the company has a viable plan,
1087	1087	as determined by the state film office, for the commercial distribution of the
1088	1088	finished production.
1089	1089	3. XCommercial domicileY means the location from which a trade or business
1090	1090	is principally managed and directed, based on any factors the state film office
1091	1091	determines are appropriate, including the location where the greatest number of
1092	1092	employees of the trade or business work, the trade or business has its office or base
1093	1093	of operations, or from which the employees are directed or controlled.
1094	1094	4. XProduction expendituresY means any expenditures that are incurred in
1095	1095	this state and directly used to produce an accredited production, including
1096	1096	expenditures for writing, budgeting, casting, location scouts, set construction and
1097	1097	operation, wardrobes, makeup, clothing accessories, photography, sound recording,
1098	1098	sound synchronization, sound mixing, lighting, editing, film processing, film
1099	1099	transferring, special effects, visual effects, renting or leasing facilities or
1100	1100	equipment, renting or leasing motor vehicles, food, lodging, and any other similar
1101	1101	pre-production, production, and post-production expenditure as determined by the
1102	1102	state film office. XProduction expendituresY includes expenditures for music that is
1103	1103	performed, composed, or recorded by a musician who is a resident of this state or
1104	1104	published or distributed by an entity that has its commercial domicile in this state;
1105	1105	air travel that is purchased from a travel agency or company that has its commercial
1106	1106	domicile in this state; and insurance that is purchased from an insurance agency or
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1134	1134	company that has its commercial domicile in this state. XProduction expendituresY
1135	1135	does not include salary or wages or expenditures for the marketing and distribution
1136	1136	of an accredited production.
1137	1137	(b) Filing claims. Subject to the limitations provided in this subsection, for
1138	1138	taxable years beginning after December 31, 2025, a claimant may claim as a credit
1139	1139	against the tax imposed under s. 71.43 any of the following amounts:
1140	1140	1. An amount equal to 30 percent of the salary or wages paid by the claimant
1141	1141	to the claimant[s employees in the taxable year for services rendered in this state to
1142	1142	produce an accredited production and paid to employees who were residents of this
1143	1143	state at the time that they were paid.
1144	1144	2. An amount equal to 30 percent of the production expenditures paid by the
1145	1145	claimant in the taxable year to produce an accredited production.
1146	1146	3. An amount equal to the taxes imposed under ss. 77.52 and 77.53 that the
1147	1147	claimant paid in the taxable year on the purchase of tangible personal property and
1148	1148	taxable services that are used directly in producing an accredited production in this
1149	1149	state, including all stages from the final script stage to the distribution of the
1150	1150	finished production.
1151	1151	(c) Limitations. 1. No amount of the salary or wages paid under par. (b) 1.
1152	1152	may be the basis for a credit under this subsection unless the salary or wages are
1153	1153	paid for services rendered after December 31, 2025, and directly incurred to
1154	1154	produce the accredited production.
1155	1155	2. The total amount of the credits that may be claimed by a claimant under
1156	1156	par. (b) 1. shall not exceed an amount equal to the first $250,000 of salary or wages
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1184	1184	paid to each of the claimant[s employees, as described in par. (b) 1., in the taxable
1185	1185	year, not including the salary or wages paid to the claimant[s 2 highest-paid
1186	1186	employees, as described in par. (b) 1., in the taxable year, if the claimant[s budgeted
1187	1187	production expenditures are $1,000,000 or more.
1188	1188	3. No credit may be allowed under this subsection unless the claimant files an
1189	1189	application with the state film office, at the time and in the manner prescribed by
1190	1190	the office, and the office approves the application. The claimant shall submit a copy
1191	1191	of the approved application with the claimant[s return.
1192	1192	4. Partnerships, limited liability companies, and tax-option corporations may
1193	1193	not claim the credit under this subsection, but the eligibility for, and the amount of,
1194	1194	the credit are based on their payment of amounts under par. (b). A partnership,
1195	1195	limited liability company, or tax-option corporation shall compute the amount of
1196	1196	credit that each of its partners, members, or shareholders may claim and shall
1197	1197	provide that information to each of them. Partners, members of limited liability
1198	1198	companies, and shareholders of tax-option corporations may claim the credit in
1199	1199	proportion to their ownership interest.
1200	1200	(d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
1201	1201	credit under s. 71.28 (4), applies to the credits under this subsection. Section 71.28
1202	1202	(4) (f), as it applies to the credit under s. 71.28 (4), applies to the credits under par.
1203	1203	(b) 1. and 3.
1204	1204	2. If the allowable amount of the claim under par. (b) 2. exceeds the tax
1205	1205	otherwise due under s. 71.43 or no tax is due under s. 71.43, the amount of the
1206	1206	claim not used to offset the tax due shall be certified by the department of revenue
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1234	1234	to the department of administration for payment by check, share draft, or other
1235	1235	draft drawn from the appropriation account under s. 20.835 (2) (bm).
1236	1236	3. Any person, including a nonprofit entity described in section 501 (c) (3) of
1237	1237	the Internal Revenue Code, may sell or otherwise transfer a credit under this
1238	1238	subsection, in whole or in part, to another person who is subject to the taxes
1239	1239	imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
1240	1240	transfer, and submits with the notification a copy of the transfer documents, and
1241	1241	the department certifies ownership of the credit. The transferee may first use the
1242	1242	credit to offset tax of the transferor in the taxable year in which the transfer occurs
1243	1243	and may use the credit only to offset tax in taxable years in which the credit is
1244	1244	otherwise allowed to be claimed and carried forward by the original claimant.
1245	1245	SECTION 21. 71.47 (5h) of the statutes is created to read:
1246	1246	71.47 (5h) FILM PRODUCTION COMPANY INVESTMENT CREDIT. (a) Definitions.
1247	1247	In this subsection:
1248	1248	1. XClaimantY means a person who files a claim under this subsection and
1249	1249	who does business in this state as a film production company.
1250	1250	2. XFilm production companyY means an entity that creates films, videos,
1251	1251	broadcast advertisement, or television productions, not including the productions
1252	1252	described under sub. (5f) (a) 1. a. to g.
1253	1253	3. XPhysical workY does not include preliminary activities such as planning,
1254	1254	designing, securing financing, researching, developing specifications, or stabilizing
1255	1255	property to prevent deterioration.
1256	1256	4. XPreviously owned propertyY means real property that the claimant or a
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1283	1283	SECTION 21
1284	1284	related person owned during the 2 years prior to doing business in this state as a
1285	1285	film production company and for which the claimant may not deduct a loss from the
1286	1286	sale of the property to, or an exchange of the property with, the related person
1287	1287	under section 267 of the Internal Revenue Code.
1288	1288	5. XUsed exclusivelyY means used to the exclusion of all other uses except for
1289	1289	other use not exceeding 5 percent of total use.
1290	1290	(b) Filing claims. Subject to the limitations provided in this subsection, for
1291	1291	taxable years beginning after December 31, 2025, a claimant may claim as a credit
1292	1292	against the tax imposed under s. 71.43, up to the amount of the taxes, for the first 3
1293	1293	taxable years that the claimant is doing business in this state as a film production
1294	1294	company, an amount that is equal to 30 percent of the following that the claimant
1295	1295	paid in the taxable year to establish a film production company in this state:
1296	1296	1. The purchase price of depreciable, tangible personal property.
1297	1297	2. The amount expended to acquire, construct, rehabilitate, remodel, or repair
1298	1298	real property.
1299	1299	(c) Limitations. 1. A claimant may claim the credit under par. (b) 1., if the
1300	1300	tangible personal property is purchased after December 31, 2025, and the personal
1301	1301	property is used exclusively in the claimant[s business as a film production
1302	1302	company.
1303	1303	2. A claimant may claim the credit under par. (b) 2. for an amount expended to
1304	1304	construct, rehabilitate, remodel, or repair real property, if the claimant began the
1305	1305	physical work of construction, rehabilitation, remodeling, or repair, or any
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1332	1332	demolition or destruction in preparation for the physical work, after December 31,
1333	1333	2025, or if the completed project is placed in service after December 31, 2025.
1334	1334	3. A claimant may claim the credit under par. (b) 2. for an amount expended to
1335	1335	acquire real property, if the property is not previously owned property and if the
1336	1336	claimant acquires the property after December 31, 2025, or if the completed project
1337	1337	is placed in service after December 31, 2025.
1338	1338	4. No claim may be allowed under this subsection unless the state film office
1339	1339	certifies, in writing, that the credits claimed under this subsection are for expenses
1340	1340	related to establishing a film production company in this state and the claimant
1341	1341	submits a copy of the certification with the claimant[s return.
1342	1342	5. Partnerships, limited liability companies, and tax-option corporations may
1343	1343	not claim the credit under this subsection, but the eligibility for, and the amount of,
1344	1344	the credit are based on their payment of amounts under par. (b). A partnership,
1345	1345	limited liability company, or tax-option corporation shall compute the amount of
1346	1346	credit that each of its partners, members, or shareholders may claim and shall
1347	1347	provide that information to each of them. Partners, members of limited liability
1348	1348	companies, and shareholders of tax-option corporations may claim the credit in
1349	1349	proportion to their ownership interests.
1350	1350	(d) Administration. 1. Section 71.28 (4) (e) to (h), as it applies to the credit
1351	1351	under s. 71.28 (4), applies to the credits under this subsection.
1352	1352	2. Any person, including a nonprofit entity described in section 501 (c) (3) of
1353	1353	the Internal Revenue Code, may sell or otherwise transfer a credit under this
1354	1354	subsection, in whole or in part, to another person who is subject to the taxes
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1382	1382	imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
1383	1383	transfer, and submits with the notification a copy of the transfer documents, and
1384	1384	the department certifies ownership of the credit. The transferee may first use the
1385	1385	credit to offset tax of the transferor in the taxable year in which the transfer occurs
1386	1386	and may use the credit only to offset tax in taxable years in which the credit is
1387	1387	otherwise allowed to be claimed and carried forward by the original claimant.
1388	1388	SECTION 22. 71.49 (1) (epr) of the statutes is created to read:
1389	1389	71.49 (1) (epr) Film production company investment credit under s. 71.47
1390	1390	(5h).
1391	1391	SECTION 23. 71.49 (1) (eps) of the statutes is created to read:
1392	1392	71.49 (1) (eps) Film production services credit under s. 71.47 (5f) (b) 1. and 3.
1393	1393	SECTION 24. 71.49 (1) (f) of the statutes is amended to read:
1394	1394	71.49 (1) (f) The total of farmland preservation credit under subch. IX, jobs
1395	1395	credit under s. 71.47 (3q), enterprise zone jobs credit under s. 71.47 (3w), business
1396	1396	development credit under s. 71.47 (3y), research credit under s. 71.47 (4) (k) 1., film
1397	1397	production services credit under s. 71.47 (5f) (b) 2., and estimated tax payments
1398	1398	under s. 71.48.
1399	1399	SECTION 25. Fiscal changes.
1400	1400	(1) STATE FILM OFFICE. In the schedule under s. 20.005 (3) for the
1401	1401	appropriation to the department of tourism under s. 20.380 (1) (a), the dollar
1402	1402	amount for fiscal year 2025-26 is increased by $199,300 to increase the authorized
1403	1403	FTE positions for the state film office by 3.0 GPR positions for administration of the
1404	1404	film production services credit and the film production company investment credit.
1405	1405	In the schedule under s. 20.005 (3) for the appropriation to the department of
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1434	1434	tourism under s. 20.380 (1) (a), the dollar amount for fiscal year 2026-27 is
1435	1435	increased by $254,000 to provide funding for the position authorized under this
1436	1436	subsection.
1437	1437	SECTION 26. Effective date.
1438	1438	(1) This act takes effect on the day after publication, or on the 2nd day after
1439	1439	publication of the 2025 biennial budget act, whichever is later.
1440	1440	(END)
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