Wisconsin § 71.07 - Credits.

§ 71.07. Credits.

71.07(1) (1) Claim of right credit. Any natural person may credit against taxes otherwise due under this chapter the decrease in tax under this chapter for the prior taxable year that would be attributable to subtracting income taxed for that year under the claim of right doctrine but repaid, as calculated under section 1341 of the internal revenue code, if the income repaid is greater than $3,000 and the amount is not subtracted in computing Wisconsin adjusted gross income or used in computing the credit under sub. (5) (a) . If the allowable amount of the claim exceeds the claimant’s taxes due under this chapter the amount of the claim not used to offset those taxes shall be certified to the department of administration for payment to the claimant by check, share draft or other draft drawn on the general fund. 71.07(2dm) (2dm) Development zone capital investment credit. 71.07(2dm)(a) (a) In this subsection: 71.07(2dm)(a)1. 1. “Certified” means entitled under s. 238.395 (3) (a) 4. or s. 560.795 (3) (a) 4. , 2009 stats., [s. 560.795 (3) (a) 4. , 2009 stats., or s. 238.395 (3) (a) 4. , 2023 stats.,] to claim tax benefits or certified under s. 238.395 (5) or 238.398 (5) or s. 560.795 (5) , 2009 stats., or s. 560.798 (3) , 2009 stats. [s. 560.795 (5) , 2009 stats., s. 560.798 (3) , 2009 stats., s. 238.395 (5) , 2023 stats., or s. 238.398 (5) , 2023 stats.]. 71.07 Note NOTE: The correct cross-references are shown in brackets. Sections 238.395 and 238.398 were repealed by 2025 Wis. Act 118 . Corrective legislation is pending. 71.07(2dm)(a)2. 2. “Claimant” means a person who files a claim under this subsection. 71.07(2dm)(a)3. 3. “Development zone” means a development opportunity zone under s. 238.395 (1) (e) and (f) or 238.398 or s. 560.795 (1) (e) and (f) , 2009 stats., or s. 560.798 , 2009 stats. [s. 560.795 (1) (e) and (f) , 2009 stats., s. 560.798 , 2009 stats., s. 238.395 (1) (e) and (f) , 2023 stats., or s. 238.398 , 2023 stats.]. 71.07 Note NOTE: The correct cross-references are shown in brackets. Sections 238.395 and 238.398 were repealed by 2025 Wis. Act 118 . Corrective legislation is pending. 71.07(2dm)(a)4. 4. “Previously owned property” means real property that the claimant or a related person owned during the 2 years prior to the department of commerce or the Wisconsin Economic Development Corporation designating the place where the property is located as a development zone and for which the claimant may not deduct a loss from the sale of the property to, or an exchange of the property with, the related person under section 267 of the Internal Revenue Code, except that section 267 (b) of the Internal Revenue Code is modified so that if the claimant owns any part of the property, rather than 50 percent ownership, the claimant is subject to section 267 (a) (1) of the Internal Revenue Code for purposes of this subsection. 71.07(2dm)(b) (b) Subject to the limitations provided in this subsection and in s. 73.03 (35) , for any taxable year for which the claimant is certified, a claimant may claim as a credit against the taxes imposed under s.