Senate Bill 880 proposes significant amendments to tax provisions concerning qualified retirement plans and film production services credits in Wisconsin. The bill establishes a new prohibition that prevents individuals or couples from claiming both an income tax subtraction for payments from qualified retirement plans and any state income tax credits for the same taxable year, including any unused credits in subsequent years. It also modifies the income tax subtraction limits for individuals aged 67 and older, increasing the maximum to $24,000 for individuals and $48,000 for joint filers. Additionally, the bill introduces technical changes to the subtraction process.

In relation to film production tax credits, the bill clarifies that salaries or wages paid to the two highest-paid employees cannot be included in the credit calculation if production expenditures exceed $1,000,000. It broadens the definition of production expenditures to encompass a wider array of costs associated with producing accredited productions, while explicitly excluding marketing and distribution expenses. The bill also allows transferees to utilize tax credits to offset their tax liabilities in the taxable year of the transferor, rather than the previous stipulation regarding the transferor's tax. Furthermore, it maintains provisions for the sale or transfer of tax credits by any person, including nonprofit entities, ensuring that the transferee can use the credit in the same taxable year as the transfer occurs.

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