Relating to: a tax credit for certain sales and use taxes paid on services sold through an amusement device. (FE)

SB 865 creates a new tax credit for businesses that pay sales or use tax on services purchased through amusement devices (like arcade games or video game machines). The credit allows eligible businesses to reduce their Wisconsin income or franchise tax by the amount of county and municipal sales taxes paid on qualifying services sold via these devices, effective for taxable years after December 2024. Partnerships, LLCs, and tax-option corporations cannot claim the credit directly but must allocate it to owners based on their ownership share. Unused credit amounts can be carried forward for up to 20 years to offset future state tax liabilities. This bill directly affects businesses operating amusement devices, such as arcades or game centers, by potentially lowering their state tax burden.