1. (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:

   1. (a) A list and description of the production expenditures incurred during the taxable year.
   2. (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.
   3. (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.
   4. (d) Verification that the $50,000 or $100,000 threshold in s. 71.07 (5f) (a) 1. (intro.), Stats., was exceeded.

   5. (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.”

   6. (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.”

   7. (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.

   8. (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.
   9. (i) Any subsequent clarification requested by the department.

2. (2) The department shall determine the following amounts, after accrediting a production, and shall notify the claimant of those amounts, in writing:

   1. (a) The production expenditures that were incurred during the taxable year.

   2. (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. 1. Rendered services in this state to produce an accredited production.
      2. 2. Were residents of this state at the time they were paid.
   3. (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. (3)

   1. (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.
   2. (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.

   3. (c) The department shall notify a claimant, in writing, of any increase or decrease established under this subsection.

      Note: 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.

History

History: CR 07-063: cr. Register December 2007 No. 624, eff. 1-1-08; CR 10-116: am.(1) (title), (b), (c), (2) (b) (intro), r. and recr. (1) (e) to (g) and (2) (c), renum. (1) (h) to (i), cr. (1) (h) Register May 2011 No. 665, eff. 6-1-11.