Wis. Admin. Code Tour — Department of Tourism

Chapter Tour 1 JOINT EFFORT MARKETING

Wis. Admin. Code § Tour 1.01 Purpose {#sec-tour-1.01 omnilex-key=us-wi-regs-official--agency-tour--Tour 1.01}

The purpose of this chapter is to establish the procedures and guidelines for the distribution of department funding for joint effort marketing.

History

• Cr. Register, October, 1991, No. 430, eff. 11-1-91.

Wis. Admin. Code § Tour 1.02 Definitions {#sec-tour-1.02 omnilex-key=us-wi-regs-official--agency-tour--Tour 1.02}

In this chapter:

(1) “Council” means the council on tourism created under s. 41.12 (1), Stats.

(2) “Department” means the department of tourism.

(2m) “Eligible advertising” means advertising that will appear outside of the local area where the project will occur.

(3) “Eligible applicant” means any Wisconsin public or private organization not organized or incorporated for profit.

(3m) “Event” means an activity or group of activities sponsored by a non-profit organization that occur within an identified period of limited duration and which are likely to attract the interest of visitors from outside of the local area where the activities are conducted.

(4) “Joint effort marketing committee” means the group selected by the council to review joint effort marketing applications.

(6) “Project” means an activity the purpose of which is to increase tourism. “Project” includes the development of publicity, the development and media placement of advertising, or direct mail, which is a part of the advertising plan of the applicant, and which accomplishes any of the following:

(a) The project publicizes an event which has never before been held in the community or area, which the applicant intends to repeat regularly and which is beyond the scope of the daily operations of the applicant.

(b) The project involves the placement of advertising in a geographic area where advertising for the event has not previously been placed or the placement of advertising which reaches a demographic audience not previously reached.

(c) The project involves the placement of advertising in a media where advertising for the event has not previously been placed.

(d) The project involves a sales promotion that offers a significant incentive during a limited period of time intended to persuade the targeted customer to visit the community or area.

(e) The project publicizes a one-time one of a kind event of major significance that has the potential to generate media coverage at least throughout the midwest.

(f) The project involves the placement of advertising in a geographic area identified in the statewide marketing strategy as regional or extended regional, or involves the attraction of meeting and convention or motorcoach business. For a project under this paragraph to receive funding it shall also have the following features:

1. The advertising shall be placed during a time that the applicant evidences has not traditionally received substantial numbers of tourists in the area.

2. The project proposed in the application shall serve an area that includes not less than 3 municipalities.

(7) “Statewide marketing strategy” means the annual tourism marketing plan for Wisconsin recommended by the marketing committee and adopted by the department.

History

• Cr. Register, October, 1991, No. 430, eff. 11-1-91; cr. (2m) and (7), am. (3), r. (5), Register, December, 1995, No. 480, eff. 1-1-96; correction in (1), (2) and (4) made under s. 13.93 (2m) (b) 6. and 7., Stats., Register, February, 1996, No. 482; cr. (3m), am. (6), Register, July, 1996, No. 487, eff. 8-1-96; am. (2m) and (4), cr. (6) (f), Register, June, 1998, No. 510, eff. 7-1-98.

Wis. Admin. Code § Tour 1.03 Use of funds {#sec-tour-1.03 omnilex-key=us-wi-regs-official--agency-tour--Tour 1.03}

(1) Grant funds received by an eligible applicant may only be used for those project costs related to the development of publicity and the production, and media placement of advertising and direct mail campaigns, except that for projects described under s. Tour 1.02 (6) (f), grant funds may also be used for booth space, standard booth equipment, photographs and material shipment expenses related to attendance at sports shows.

(2) The use of grant funds are also subject to the limitations under s. 41.17 (4) (a) to (f), Stats.

(3) The total grant amount that may be awarded to any project during a fiscal year is limited to all of the following:

(a) For projects described in s. Tour 1.02 (6) (a) to (d), no more than 7% of the applicable joint effort marketing fiscal year budget. For a project described in s. Tour 1.02 (6) (f), no more than $10,000 for each municipality served by the project and no more than a total of the lesser of $40,000 or 7% of the applicable joint effort marketing fiscal year budget.

(b) No more than 50% of the related event’s fiscal year budget.

(c) No more than 75% of the eligible advertising expense for the first year a project receives funds under this chapter.

(d) For projects described in s. Tour 1.02 (6) (a) to (d) and (f), no more than 50% of the eligible advertising expenses for the second year a project receives funds under this chapter.

(e) For a project described in s. Tour 1.02 (6) (a) or (f), no more than 25% of the eligible advertising expenses for the third year a project receives funds under this chapter.

(f) For a project described in s. Tour 1.02 (6) (e) no more than one time funding for not more than 5% of the joint effort marketing fiscal year budget.

(g) For projects described in s. Tour 1.02 (6) (f), the department may grant no more than 50% of the funding for joint effort marketing during each fiscal year unless the secretary determines that there is insufficient demand for the funds under the other grant categories contained in this chapter.

(3m) The department may provide funding for one project per event.

(3r) During each fiscal year, the department may grant up to 35% of joint effort marketing funds available for projects described in s. Tour 1.02 (6) (a) to (e) by September 30, up to 70% by December 31 and up to 90% by March 31 except that the secretary may waive the limits contained in this subsection for a project likely to have a substantial impact upon the state’s tourism economy. The department may grant up to 60% of the joint effort marketing funds available for projects described under s. Tour 1.02 (6) (f) in September and the remainder in April of each fiscal year.

(3w) The secretary may waive the requirement contained in s. Tour 1.05 (3) (f) that a project be directed at a local area for a project that will make a substantial impact upon the state’s tourism economy.

(4) A project described in s. Tour 1.02 (6) (a), or (f), may receive up to 3 years of funding, and the 3 years are not required to be consecutive. A project described in s. Tour 1.02 (6) (b), (c) or (d), may receive up to 2 consecutive years of funding. A recipient of funding for a project described in s. Tour 1.02 (6) (d) may apply for another project under s. Tour 1.02 (6) (d) no earlier than the third fiscal year following the fiscal year during which funding was granted. For each year of funding requested, an application shall be submitted and a determination made as provided under this chapter.

(5) An eligible applicant may be awarded no more than 14% of the joint effort marketing budget during any fiscal year.

(6) Funds, other than those provided under this chapter, necessary to undertake the project may not be received from an agency of Wisconsin state government.

History

• Cr. Register, October, 1991, No. 430, eff. 11-1-91; cr. (3), Register, November, 1992, No. 443, eff. 12-1-92; am. (1), renum. (3) to be (3) (intro.) and am., cr. (3) (a) to (e), (4) to (6), Register, December, 1995, No. 480, eff. 1-1-96; correction in (2) made under s. 13.93 (2m) (b) 7., Stats., Register, February, 1996, No. 482; am. (3) (a), (b), (d), (e) and (4), cr. (3) (f) and (3m), Register, July, 1996, No. 487, eff. 8-1-96; am. (1), (3) (a), (d), (e) and (4), cr. (3) (g) and (3r), Register, June, 1998, No. 510, eff. 7-1-98; am. (3) (a), Register, June, 2000, No. 534, eff. 7-1-00; CR 03-113: cr. (3w) Register April 2004 No. 580, eff. 5-1-04; CR 05-070: am. (4) Register November 2005 No. 599, eff. 12-1-05.

Wis. Admin. Code § Tour 1.04 Application procedures {#sec-tour-1.04 omnilex-key=us-wi-regs-official--agency-tour--Tour 1.04}

(1) An eligible applicant may submit an application no less than 90 days prior to the first date advertising supported by funds under this chapter is scheduled to begin.

(2) An application for funding under this chapter shall be in such form as the department may require and shall include all of the following:

(a) The name, address, telephone number and contact person for the applicant, its advertising agency, if any, and its federal employer identification number.

(b) A description of the project including the market to be reached, the media to be used, the date or dates during which the advertising will appear in the media and the size or length of the advertising.

(c) An advertising plan, a budget for the project and an income and expense statement for the year of the project and the previous year, if applicable.

(d) An explanation of how the proposed project coordinates with the marketing plan.

(e) A timetable for the project.

(f) A description of the project goals and methods to measure their attainment.

Note: Application materials can be obtained by writing to the Wisconsin Department of Tourism, P.O. Box 7976, Madison, Wisconsin 53707.

History

• Cr. Register, October, 1991, No. 430, eff. 11-1-91; am. (1) and (2) (a) to (c), (e) and (f), Register, December, 1995, No. 480, eff. 1-1-96.

Wis. Admin. Code § Tour 1.05 Department determination {#sec-tour-1.05 omnilex-key=us-wi-regs-official--agency-tour--Tour 1.05}

(1) The joint effort marketing committee shall review all applications and make funding recommendations to the department.

(3) Before awarding a grant under this chapter, the department shall determine the following:

(a) That the applicant has developed an advertising plan and a budget for the project.

(b) That [the project] is consistent with the statewide marketing plan strategy.

(c) That the project has broad appeal and targets markets beyond the local area.

(d) That the proposed project will generate increased visitors into or within the state, and, if the project relates to an existing event, that the increase is substantial in comparison to the visitors previously generated by the event.

(e) That the applicant has the ability to finance its share of the cost of the project, and all income generated by the event publicized by the project is being used to finance the event.

(f) That the project will make a positive economic impact in the local area, and, if the project relates to an existing event, that the impact is substantial in comparison to the impact previously produced by the event.

(g) That the project, except for a project that is a one time unique event, has the potential to be self-sufficient within 3 years.

History

• Cr. Register, October, 1991, No. 430, eff. 11-1-91; am. (1), (3) (b) to (d), r. (2), cr. (3) (f) and (g), Register, December, 1995, No. 480, eff. 1-1-96; am. (3) (d) to (f), Register, July, 1996, No. 487, eff. 8-1-96; am. (1), Register, June, 1998, No. 510, eff. 7-1-98.

Wis. Admin. Code § Tour 1.06 Contracts {#sec-tour-1.06 omnilex-key=us-wi-regs-official--agency-tour--Tour 1.06}

Each successful applicant shall enter into a contract with the department. The contract shall be signed by the secretary of the department and the chief executive officer of the applicant or by their authorized representatives, shall specify at a minimum the items contained in s. 41.17 (3) (a) to (d), Stats., and incorporate the limitations contained in s. 41.17 (4) (a) to (f), Stats.

History

• Cr. Register, October, 1991, No. 430, eff. 11-1-91; corrections made under s. 13.93 (2m) (b) 7., Stats., Register, February, 1996, No. 482.

Wis. Admin. Code § Tour 1.07 Reporting and record keeping {#sec-tour-1.07 omnilex-key=us-wi-regs-official--agency-tour--Tour 1.07}

(1) Each successful applicant shall submit a written evaluation of the project within 45 days of completion of all project activity in such form as the department may require.

(2) Each successful applicant shall maintain those records necessary for the department to determine that grant funds were expended in accordance with the terms of the contract required under s. Tour 1.06.

History

• Cr. Register, October, 1991, No. 430, eff. 11-1-91; correction in (2) made under s. 13.93 (2m) (b) 7., Stats., Register, February, 1996, No. 482.

Chapter Tour 3 TOURIST INFORMATION CENTER GRANTS

Wis. Admin. Code § Tour 3.01 Authority {#sec-tour-3.01 omnilex-key=us-wi-regs-official--agency-tour--Tour 3.01}

This chapter is promulgated under the authority of s. 41.16 (3) (c), Stats., relating to grants to municipalities and organizations for regional tourist information centers created in 2009 Wisconsin Act 28.

History

• CR 09-111: cr. Register May 2010 No. 653, eff. 6-1-10.

Wis. Admin. Code § Tour 3.02 Purpose {#sec-tour-3.02 omnilex-key=us-wi-regs-official--agency-tour--Tour 3.02}

The purpose of this chapter is to establish the procedures and guidelines for the distribution of department funding for tourist information center grants pursuant to ss. 41.16 (3) (c) and 41.16, Stats.

History

• CR 09-111: cr. Register May 2010 No. 653, eff. 6-1-10.

Wis. Admin. Code § Tour 3.03 Scope {#sec-tour-3.03 omnilex-key=us-wi-regs-official--agency-tour--Tour 3.03}

This chapter establishes the use of funds and defines application procedures, contracts and reporting requirements for the administration of the grant program for regional tourist information centers.

History

• CR 09-111: cr. Register May 2010 No. 653, eff. 6-1-10.

Wis. Admin. Code § Tour 3.04 Definitions {#sec-tour-3.04 omnilex-key=us-wi-regs-official--agency-tour--Tour 3.04}

In this chapter:

(1) “Department” means the Wisconsin department of tourism.

(2) “Eligible applicant” means any of the following and any combination of any of the following:

(a) A nonprofit organization, as defined in s. 106.13 (3m) (a) 1r., Stats., whose purposes include tourism to or within the state or a particular region in the state.

(b) An organization, including an elected governing body, of a federally recognized American Indian tribe or band in this state.

(c) A city, village, town, or county.

(3) “Eligible costs” means any of the following and any combination of any of the following costs:

(a) To staff the regional tourist information center.

(b) To acquire promotional materials.

(c) To acquire standard display equipment.

(4) “Region” means 2 or more counties in this state.

(5) “Regional tourist information center” means a key location for travelers to stop where department publications, statewide tourism association publications, and top destination publications are distributed, visitor counts are tracked, and trained tourist information staff are available during hours of operation that meet the travelers’ needs.

(6) “Tourist information center committee” means the group selected by the department to review tourist information center applications.

History

• CR 09-111: cr. Register May 2010 No. 653, eff. 6-1-10; correction in (2) (a) made under s. 13.92 (4) (b) 7., Stats., Register March 2017 No. 735.

Wis. Admin. Code § Tour 3.05 Use of funds {#sec-tour-3.05 omnilex-key=us-wi-regs-official--agency-tour--Tour 3.05}

Grant funds received by an eligible applicant may only be used for costs to staff the regional tourist information center, standard display equipment and promotional materials such as signage or equipment to promote the region. An eligible applicant may be reimbursed for up to $15,000 per organization per year. Applications will be reviewed twice a year, July and January. The application deadline is July 1 and January 1.

History

• CR 09-111: cr. Register May 2010 No. 653, eff. 6-1-10.

Wis. Admin. Code § Tour 3.06 Application procedures {#sec-tour-3.06 omnilex-key=us-wi-regs-official--agency-tour--Tour 3.06}

Any eligible applicant may submit an application to request that the department reimburse the applicant for up to 50% of eligible costs incurred to operate a regional tourist information center. An application for funding under this chapter shall be in such form as the department may require and shall include all of the following:

(1) The organization name, address, telephone number and contact person for the applicant and its federal employer identification number.

(2) The dates and hours of operation, the previous year’s annual visitor count, a list of publications distributed from outside the local community, a brief description of how the applicant provides information on and promotes Wisconsin businesses including cultural or recreational attractions in the region such as restaurant, lodging, campground and retail establishments, and a brief description of why the center’s location attracts tourists seeking travel information.

(3) A description of the operating cost, copy of the invoice paid and cancelled check. A payroll register is required for tourist information center staff cost. An eligible invoice and check or payroll register must be from the current or prior calendar year.

(4) Any other information the department may require to make a determination under this chapter and s. 41.16, Stats.

Note: Application materials can be obtained by writing to Tourist Information Center Grants, Wisconsin Department of Tourism, P.O. Box 8690, Madison, WI 53708-8690 or by calling telephone number 608.261.6272.

History

• CR 09-111: cr. Register May 2010 No. 653, eff. 6-1-10.

Wis. Admin. Code § Tour 3.07 Department determination {#sec-tour-3.07 omnilex-key=us-wi-regs-official--agency-tour--Tour 3.07}

The tourist information center committee shall review all applications and make funding recommendations to the department. Before awarding a grant under this chapter, the department shall determine all of the following:

(1) That the applicant provides information on and promotes Wisconsin businesses including cultural or recreational attractions in the region such as restaurant, lodging, campground and retail establishments.

(2) That the tourist information center is located in a place at which a tourist would be reasonably assumed to stop while traveling to or from a recreational or cultural destination.

(3) That the tourist information center will generate increased visitors into or within the state and make a positive economic impact in the region.

History

• CR 09-111: cr. Register May 2010 No. 653, eff. 6-1-10.

Wis. Admin. Code § Tour 3.08 Contracts {#sec-tour-3.08 omnilex-key=us-wi-regs-official--agency-tour--Tour 3.08}

Each successful applicant shall enter into a contract with the department which shall be signed by the secretary of the department and the chief executive officer of the applicant or the applicant’s authorized representative.

History

• CR 09-111: cr. Register May 2010 No. 653, eff. 6-1-10.

Wis. Admin. Code § Tour 3.09 Record keeping {#sec-tour-3.09 omnilex-key=us-wi-regs-official--agency-tour--Tour 3.09}

Each successful applicant shall maintain those records necessary for the department to determine that grant funds were expended in accordance with the terms under this chapter. The records shall be maintained for a minimum of 3 years following the award of grant funds under this chapter.

History

• CR 09-111: cr. Register May 2010 No. 653, eff. 6-1-10.

Chapter Tour 4 FILM PRODUCTION ACCREDITATION PROGRAM

Subchapter I Purpose, Scope and Authority

Wis. Admin. Code § Tour 4.10 Purpose, scope and authority {#sec-tour-4.10 omnilex-key=us-wi-regs-official--agency-tour--Tour 4.10}

(1) The purpose and scope of this chapter is to establish the procedures for obtaining any of the following from the department, for use in claiming corresponding tax credits:

(a) Accreditation of a production.

(b) A determination of the amount of expenditures that are directly used to produce an accredited production.

(c) Certification of expenses that are related to establishing or operating a film production company in Wisconsin.

(2) This chapter is promulgated under the authority of s. 41.155 (4), Stats.

History

• CR 07-063: cr. Register December 2007 No. 624, eff. 1-1-08; CR 10-116: am. (1) (c) Register May 2011 No. 665, eff. 6-1-11; correction in (2) made under s. 13.92 (4) (b) 7., Stats., Register December 2011 No. 672.

Subchapter II Accreditation of Production.

Wis. Admin. Code § Tour 4.20 Definitions {#sec-tour-4.20 omnilex-key=us-wi-regs-official--agency-tour--Tour 4.20}

In this subchapter:

(1) The definitions in s. 71.07 (5f) (a) 1. to 3., Stats., shall apply.

Note: Section 71.07 (5f) (a) 1. to 3., Stats., reads as follows:

“1. “Accredited production” means a film, video, broadcast advertisement, or television production, as approved by the department of commerce or the department of tourism, for which the aggregate salary and wages included in the cost of the production for the period ending 12 months after the month in which the principal filming or taping of the production begins exceeds $50,000. “Accredited production” also means an electronic game, as approved by the department of commerce or the department of tourism, for which the aggregate salary and wages included in the cost of the production for the period ending 36 months after the month in which the principal programming, filming, or taping of the production begins exceeds $100,000. “Accredited production” does not include any of the following, regardless of the production costs:

a. News, current events, or public programming or a program that includes weather or market reports.

b. A talk show.

c. A production with respect to a questionnaire or contest.

d. A sports event or sports activity.

e. A gala presentation or awards show.

f. A finished production that solicits funds.

g. A production for which the production company is required under 18 USC 2257 to maintain records with respect to a performer portrayed in a single media or multimedia program.

h. A production produced primarily for industrial, corporate, or institutional purposes.

2. “Claimant” means a person who files a claim under this subsection.

3. “Production expenditures” means any expenditures that are incurred in this state and directly used to produce an accredited production, including expenditures for set construction and operation, wardrobes, make-up, clothing accessories, photography, sound recording, sound synchronization, sound mixing, lighting, editing, film processing, film transferring, special effects, visual effects, renting or leasing facilities or equipment, renting or leasing motor vehicles, food, lodging, and any other similar expenditure as determined by the department of commerce or the department of tourism. “Production expenditures” do not include salary, wages, or labor-related contract payments.”

Note: 18 USC 2257, as referenced above in s. 71.07 (5f) (a) 1. g., relates to sexual exploitation and other abuse of children.

(2) “Department” means the department of tourism.

(3) “Incurred” means funds equal to the total cost have been disbursed by a potential claimant.

(4) “Person” includes natural persons, fiduciaries, and corporations, unless the context requires otherwise.

History

• CR 07-063: cr. Register December 2007 No. 624, eff. 1-1-08; CR 10-116: am. (3) Register May 2011 No. 665, eff. 6-1-11; correction in (2) made under s. 13.92 (4) (b) 6., Stats., Register December 2011 No. 672.

Wis. Admin. Code § Tour 4.30 General eligibility criteria {#sec-tour-4.30 omnilex-key=us-wi-regs-official--agency-tour--Tour 4.30}

The department shall consider whether all of the following are likely, in determining whether to accredit a production:

(1) The production would not occur in Wisconsin without the tax benefits provided under this chapter.

(2) The production would enhance economic development in Wisconsin.

(3) The production would enhance the potential for increasing the film, video or electronic game industry in Wisconsin.

(4) The production would not hurt the reputation of the state of Wisconsin.

History

• CR 07-063: cr. Register December 2007 No. 624, eff. 1-1-08.

Wis. Admin. Code § Tour 4.31 Ineligible public programming {#sec-tour-4.31 omnilex-key=us-wi-regs-official--agency-tour--Tour 4.31}

Public programming of a civic or governmental function is not eligible for becoming an accredited production.

History

• CR 07-063: cr. Register December 2007 No. 624, eff. 1-1-08.

Wis. Admin. Code § Tour 4.34 Obtaining accreditation {#sec-tour-4.34 omnilex-key=us-wi-regs-official--agency-tour--Tour 4.34}

(1) Application.

(a) A potential claimant shall submit a separate accreditation application for each production, to the department, on a valid, department-prescribed form.

Note: The application form that is currently valid can be obtained from the department at P.O. Box 8690, Madison, WI, 53708-8690; and may be available by accessing the department’s Web site at http://industry.travelwisconsin.com, and searching for the film production accreditation program.

Note: Under s. 41.155 (1), Stats., application for accreditation must be made to the department in each taxable year for which accreditation is desired.

(b) An application for accrediting a production shall be submitted at least 21 days prior to the start of filming or taping the production.

(c) Applications shall be reviewed by the department on a first-come, first-served basis.

(2) Approval. A production shall become accredited upon issuance of a written approval from the department, to the claimant, reflecting that the submitted application complies with this chapter and provides any other information which the department deems is necessary to evaluate applications under this subchapter.

(3) Revocation. The department may revoke any approval issued under sub. (2) if the supporting information is found to be inaccurate or significantly misleading.

Note: In accordance with s. 41.155 (3), Stats., the department will notify the department of revenue of every production accredited under this section, and of any such accreditation that is revoked.

History

• CR 07-063: cr. Register December 2007 No. 624, eff. 1-1-08; CR 10-116: renum. (1) to (1) (a), cr. (1) (b) and (c) Register May 2011 No. 665, eff. 6-1-11.

Wis. Admin. Code § Tour 4.35 Ineligible expenditures {#sec-tour-4.35 omnilex-key=us-wi-regs-official--agency-tour--Tour 4.35}

Expenditures for any of the following are not eligible for submittal or acceptance under s. Tour 4.36:

(1) Marketing and distribution of an accredited production.

(2) Alcoholic beverages.

(3) Tobacco.

(4) Gifts to cast and crew members.

(5) Expenses related to cast and crew parties.

(6) Per diems paid to non-Wisconsin residents.

(7) Bank and transaction fees.

(8) Legal fees, such as for development, marketing or business set-up.

(9) Expenditures for forfeitures, fees, expenses and costs associated with violation of federal or state law or local ordinances.

(10) Losses and damages.

History

• CR 10-116: cr. Register May 2011 No. 665, eff. 6-1-11; correction in (intro.) made under s. 13.92 (4) (b) 7., Stats., Register December 2011 No. 672.

Wis. Admin. Code § Tour 4.36 Determination of production expenditures and resident salary, wages, or labor-related contract payments {#sec-tour-4.36 omnilex-key=us-wi-regs-official--agency-tour--Tour 4.36}

(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:

(a) A list and description of the production expenditures incurred during the taxable year.

(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.

(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.

(d) Verification that the $50,000 or $100,000 threshold in s. 71.07 (5f) (a) 1. (intro.), Stats., was exceeded.

(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.”

(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.”

(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.

(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.

(i) Any subsequent clarification requested by the department.

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

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

(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. Rendered services in this state to produce an accredited production.

2. Were residents of this state at the time they were paid.

(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)

(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.

(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.

(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

• 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.

Subchapter III Tax Credits for Establishing or Operating a Film Production Company

Wis. Admin. Code § Tour 4.60 Definitions {#sec-tour-4.60 omnilex-key=us-wi-regs-official--agency-tour--Tour 4.60}

In this subchapter:

(1) The definitions in s. 71.07 (5h) (a) 1. to 4., Stats., shall apply.

Note: Section 71.07 (5h) (a) 1. to 4., Stats., reads as follows:

“1. “Claimant” means a person who files a claim under this subsection and who does business in this state as a film production company.

2. “Film production company” means an entity that exclusively creates accredited productions, as defined in sub. (5f) (a) 1.

3. “Physical work” does not include preliminary activities such as planning, designing, securing financing, researching, developing specifications, or stabilizing property to prevent deterioration.

4. “Previously owned property” means real property that the claimant or a related person owned during the 2 years prior to doing business in this state as a film production company 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 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 of the Internal Revenue Code for purposes of this subsection.”

(2) “Department” means the department of tourism.

(3) “Incurred” means funds equal to the total cost have been disbursed by a potential claimant.

(4) “Person” includes natural persons, fiduciaries, and corporations, unless the context requires otherwise.

History

• CR 07-063: cr. Register December 2007 No. 624, eff. 1-1-08; CR 10-116: am. (3) Register May 2011 No. 665, eff. 6-1-11; correction in (2) made under s. 13.92 (4) (b) 6., Stats., Register December 2011 No. 672.

Wis. Admin. Code § Tour 4.70 Certification of expenses relating to establishing a film production company {#sec-tour-4.70 omnilex-key=us-wi-regs-official--agency-tour--Tour 4.70}

(1)

(a) To obtain the department’s preliminary approval in sub. (3), a potential claimant shall submit all of the following to the department, in writing:

1. A valid, department-prescribed application form.

Note: The application form that is currently valid can be obtained from the department at P.O. Box 8690, Madison, WI, 53708-8690; and may be available by accessing the department’s Web site at http://industry.travelwisconsin.com, and searching for the film production accreditation program.

2. A preliminary, estimated list of the expenses referenced in sub. (5).

3. A description of how the estimated expenses will relate to establishing or operating a film production company in Wisconsin.

4. Documentation showing that the expenses will be within the scope prescribed in s. 71.07 (5h) (b) 1., 71.28 (5h) (b) 1., or 71.47 (5h) (b) 1., Stats.

Note: The expenses prescribed in s. 71.07 (5h) (b) 1., 71.28 (5h) (b) 1., and 71.47 (5h) (b) 1., Stats., consist of “The purchase price of depreciable, tangible personal property and items, property, and goods under s. 77.52 (1) (b), (c), and (d), if the sale of the tangible personal property, items, property, or goods is sourced to this state under s. 77.522.”

5. Documentation showing that the expenses will comply with the limitations in s. 71.07 (5h) (c) 1. to 3., 71.28 (5h) (c) 1. to 3., or 71.47 (5h) (c) 1. to 3., Stats.

Note: Sections 71.07 (5h) (c) 1. to 3., 71.28 (5h) (c) 1. to 3., and 71.47 (5h) (c) 1. to 3., Stats., read as follows:

“Limitations. 1. A claimant may claim the credit under par. (b) 1., if the tangible personal property, or item, property, or good under s. 77.52 (1) (b), (c), or (d), is purchased after December 31, 2008, and the tangible personal property, item, property, or good is used for at least 50 percent of its use in the claimant’s business as a film production company.

2. A claimant may claim the credit under par. (b) 2. for an amount expended to construct, rehabilitate, remodel, or repair real property, if the claimant began the physical work of construction, rehabilitation, remodeling, or repair, or any demolition or destruction in preparation for the physical work, after December 31, 2008, and the completed project is placed in service after December 31, 2008.

3. A claimant may claim the credit under par. (b) 2. for an amount expended to acquire real property, if the property is not previously owned property and if the claimant acquires the property after December 31, 2008, and the completed project is placed in service after December 31, 2008.”

(b) A potential claimant shall provide any subsequent clarification requested by the department.

(2) The department shall consider whether all of the following are likely, in determining whether to issue a preliminary approval for establishing a film production company:

(a) The film production company and its investment would enhance economic development in Wisconsin.

(b) The film production company and its investment would enhance the potential for increasing the film, video or electronic game industry in Wisconsin.

(3) If the department determines that the expenses submitted under sub. (1) are expected to comply with s. 71.07 (5h) (c) 1. to 3., 71.28 (5h) (c) 1. to 3., or 71.47 (5h) (c) 1. to 3., Stats., and that the film production company is expected to meet the conditions in sub. (2) (a) and (b), the department shall issue a preliminary approval to the potential claimant.

(4) To obtain the department’s certification in sub. (5), and prior to filing for tax benefits, a potential claimant shall submit a finalized, incurred list of the expenses referenced in sub. (5), along with an explanation for any of the expenses which differ from the preliminary list under sub. (1).

(5)

(a) In accordance with ss. 71.07 (5h), 71.28 (5h), and 71.47 (5h), Stats., and subject to any reduction under par. (b), the department shall certify, in writing to a potential claimant, expenses that the department determines are related to establishing or operating a film production company in Wisconsin.

(b) The department may award a lesser allocation of tax credits than what the applicant may be eligible for, 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.

(6)

(a) The department may increase the amount specified in a certification issued under sub. (5), after a potential claimant submits adequate written justification for that increase.

(b) The department may decrease the amount specified in a certification issued under sub. (5), after determining that the information on which the amount was based is inaccurate or significantly misleading.

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

(d) The department shall notify the department of revenue, in writing, of any decrease established under this subsection.

History

• CR 07-063: cr. Register December 2007 No. 624, eff. 1-1-08; CR 10-116: am. (1) (a) 3., 5., (3), renum. (1) (a) 4. to 5., (2) (b) and (c) to (2) (a) and (b), renum. (5) to (5) (a) and am., cr. (1) (a) 4., (5) (b), r. (2) (a) Register May 2011 No. 665, eff. 6-1-11.

Subchapter IV Submittal of Claims

Wis. Admin. Code § Tour 4.90 Claims {#sec-tour-4.90 omnilex-key=us-wi-regs-official--agency-tour--Tour 4.90}

(1) A claimant, as defined in subch. II or III, may file for tax benefits under this chapter using forms acceptable to the department of revenue.

(2) Claims for tax credits for film production services or film production company investments shall include at least all of the following:

(a) For film production services — a copy of the determination issued by the department under s. Tour 4.36 (2).

(b) For film production company investments — a copy of the certification issued by the department under s. Tour 4.70 (5).

History

• CR 07-063: cr. Register December 2007 No. 624, eff. 1-1-08; CR 10-116 r. (2) (b) and (c), renum. (2) (a) 1. and 2. to (2) (a) and (b) Register May 2011 No. 665, eff. 6-1-11; correction in (2) (a), (b) made under s. 13.92 (4) (b) 7., Stats., Register December 2011 No. 672.