Senate Bill 204 proposes the establishment of a refundable video game production tax credit in Wisconsin. This credit is designed to incentivize the development, production, or creation of video games by allowing claimants to receive a credit equal to 30% of eligible wages and eligible expenditures directly related to these activities. The bill outlines specific definitions for "video game product," which excludes social media, gambling products, and obscene content, as well as details on what constitutes eligible expenditures, such as excluding payments for royalties and capital expenditures. To claim the credit, applicants must file with the Department of Revenue and provide an audit of their eligible expenditures.

The bill also includes several amendments to existing statutes, notably adding the video game production credit to the list of credits under various sections, including 71.05 and 71.10. It creates new sections in the statutes to define the credit and its administration, ensuring that the process for claiming the credit is clearly outlined. Additionally, it specifies that the credit is refundable, meaning that if the credit exceeds the claimant's tax liability, they will receive the difference as a refund. Overall, this legislation aims to support the video game industry in Wisconsin by providing financial incentives for production activities.

Statutes affected:
Bill Text: 71.05(6)(a)15, 71.05, 71.10(4)(i), 71.10, 71.21(4)(a), 71.21, 71.21(6)(d)3