Assembly Bill 884 proposes significant amendments to Wisconsin's tax provisions concerning qualified retirement plans and film production services credits. The bill introduces a prohibition that prevents individuals or couples who claim an income tax subtraction for payments from qualified retirement plans from also claiming any state income tax credits for the same taxable year, including any unused credits in subsequent years. It also makes technical adjustments to the existing tax subtraction limits, allowing individuals to claim up to $24,000 or couples up to $48,000 based on their age and filing status.

In relation to film production tax credits, the bill clarifies that salaries or wages paid to the two highest-paid employees of a film production company cannot be used to claim the credit if the company's actual production expenditures exceed $1,000,000. It expands the definition of "production expenditures" to encompass a wider range of costs directly related to producing accredited productions, while excluding marketing and distribution expenses. Additionally, the bill sets a cap on the amount of salary or wages eligible for tax credits at $250,000 per employee and allows nonprofit entities to transfer these credits with proper notification and documentation. Overall, the bill aims to streamline tax provisions and bolster the film production industry in Wisconsin.

Statutes affected:
Bill Text: 16.705(1s), 16.705, 71.05(6)(b)54m.b, 71.05, 71.05(6)(b)54m.c