AB872,22 18Section 22. 71.06 (2) (h) (intro.) of the statutes, as affected by 2013 Wisconsin
19Act 20
, is amended to read:
AB872,12,2120 71.06 (2) (h) (intro.) For married persons filing separately, for taxable years
21beginning after December 31, 2000, and before January 1, 2013:
AB872,23 22Section 23. 71.06 (2) (h) 1. of the statutes is amended to read:
AB872,12,2323 71.06 (2) (h) 1. On all taxable income from $0 to $5,000, 4.6% 4.0 percent.
AB872,24 24Section 24. 71.06 (2) (h) 2. of the statutes is amended to read:
AB872,13,2
171.06 (2) (h) 2. On all taxable income exceeding $5,000 but not exceeding
2$10,000, 6.15% 5.84 percent.
AB872,25 3Section 25. 71.06 (2) (h) 3. of the statutes is amended to read:
AB872,13,54 71.06 (2) (h) 3. On all taxable income exceeding $10,000 but not exceeding
5$75,000, 6.5% 6.27 percent.
AB872,26 6Section 26. 71.06 (2) (i) of the statutes, as created by 2013 Wisconsin Act 20,
7is repealed.
AB872,27 8Section 27. 71.06 (2) (j) of the statutes, as created by 2013 Wisconsin Act 20,
9is repealed.
AB872,28 10Section 28. 71.06 (2e) (a) of the statutes, as affected by 2013 Wisconsin Act 20,
11is amended to read:
AB872,14,712 71.06 (2e) (a) For taxable years beginning after December 31, 1998, and before
13January 1, 2000, the maximum dollar amount in each tax bracket, and the
14corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2)
15(c) and (d), and for taxable years beginning after December 31, 1999, the maximum
16dollar amount in each tax bracket, and the corresponding minimum dollar amount
17in the next bracket, under subs. (1n), (1p) (a) to (c), (1q) (a) and (b), and (2) (e), (f), (g)
181. to 3., and (h) 1. to 3., (i) 1. and 2., and (j) 1. and 2., shall be increased each year by
19a percentage equal to the percentage change between the U.S. consumer price index
20for all urban consumers, U.S. city average, for the month of August of the previous
21year and the U.S. consumer price index for all urban consumers, U.S. city average,
22for the month of August 1997, as determined by the federal department of labor,
23except that for taxable years beginning after December 31, 2000, and before January
241, 2002, the dollar amount in the top bracket under subs. (1p) (c) and (d), (2) (g) 3.
25and 4. and (h) 3. and 4. shall be increased by a percentage equal to the percentage

1change between the U.S. consumer price index for all urban consumers, U.S. city
2average, for the month of August of the previous year and the U.S. consumer price
3index for all urban consumers, U.S. city average, for the month of August 1999, as
4determined by the federal department of labor, except that for taxable years
5beginning after December 31, 2011, the adjustment may occur only if the resulting
6amount is greater than the corresponding amount that was calculated for the
7previous year.
AB872,29 8Section 29. 71.06 (2e) (b) of the statutes, as affected by 2013 Wisconsin Act 20,
9is amended to read:
AB872,14,2110 71.06 (2e) (b) For taxable years beginning after December 31, 2009, the
11maximum dollar amount in each tax bracket, and the corresponding minimum dollar
12amount in the next bracket, under subs. (1p) (d), (1q) (c), and (2) (g) 4., and (h) 4., (i)
133., and (j) 3.,
and the dollar amount in the top bracket under subs. (1p) (e), (1q) (d),
14and (2) (g) 5., and (h) 5., (i) 4., and (j) 4. , shall be increased each year by a percentage
15equal to the percentage change between the U.S. consumer price index for all urban
16consumers, U.S. city average, for the month of August of the previous year and the
17U.S. consumer price index for all urban consumers, U.S. city average, for the month
18of August 2008, as determined by the federal department of labor, except that for
19taxable years beginning after December 31, 2011, the adjustment may occur only if
20the resulting amount is greater than the corresponding amount that was calculated
21for the previous year.
AB872,30 22Section 30. 71.06 (2m) of the statutes, as affected by 2013 Wisconsin Act 20,
23is amended to read:
AB872,15,224 71.06 (2m) Rate changes. If a rate under sub. (1), (1m), (1n), (1p), (1q), or (2)
25changes during a taxable year, the taxpayer shall compute the tax for that taxable

1year by the methods applicable to the federal income tax under section 15 of the
2Internal Revenue Code.
AB872,31 3Section 31. 71.06 (2s) (d) of the statutes, as affected by 2013 Wisconsin Act 20,
4is amended to read:
AB872,15,175 71.06 (2s) (d) For taxable years beginning after December 31, 2000, with
6respect to nonresident individuals, including individuals changing their domicile
7into or from this state, the tax brackets under subs. (1p), (1q), and (2) (g), and (h), (i),
8and (j)
shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted
9gross income and the denominator of which is federal adjusted gross income. In this
10paragraph, for married persons filing separately "adjusted gross income" means the
11separate adjusted gross income of each spouse, and for married persons filing jointly
12"adjusted gross income" means the total adjusted gross income of both spouses. If
13an individual and that individual's spouse are not both domiciled in this state during
14the entire taxable year, the tax brackets under subs. (1p), (1q), and (2) (g), and (h),
15(i), and (j)
on a joint return shall be multiplied by a fraction, the numerator of which
16is their joint Wisconsin adjusted gross income and the denominator of which is their
17joint federal adjusted gross income.
AB872,32 18Section 32. 71.07 (5n) of the statutes, as affected by 2013 Wisconsin Act 54,
19is repealed.
AB872,33 20Section 33. 71.07 (9e) (af) (intro.) of the statutes is amended to read:
AB872,15,2521 71.07 (9e) (af) (intro.) For taxable years beginning after December 31, 1995,
22and before January 1, 2011, any natural person may credit against the tax imposed
23under s. 71.02 an amount equal to one of the following percentages of the federal
24basic earned income credit for which the person is eligible for the taxable year under
25section 32 (b) (1) (A) to (C) of the Internal Revenue Code:
AB872,34
1Section 34. 71.07 (9e) (aj) of the statutes is repealed.
AB872,35 2Section 35. 71.10 (4) (cr) of the statutes is repealed.
AB872,36 3Section 36. 71.125 (1) of the statutes, as affected by 2013 Wisconsin Act 20,
4is amended to read:
AB872,16,85 71.125 (1) Except as provided in sub. (2), the tax imposed by this chapter on
6individuals and the rates under s. 71.06 (1), (1m), (1n), (1p), (1q), and (2) shall apply
7to the Wisconsin taxable income of estates or trusts, except nuclear decommissioning
8trust or reserve funds, and that tax shall be paid by the fiduciary.
AB872,37 9Section 37. 71.125 (2) of the statutes, as affected by 2013 Wisconsin Act 20,
10is amended to read:
AB872,16,1511 71.125 (2) Each electing small business trust, as defined in section 1361 (e) (1)
12of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1),
13(1m), (1n), or (1p), or (1q), whichever taxable year is applicable, on its income as
14computed under section 641 of the Internal Revenue Code, as modified by s. 71.05
15(6) to (12), (19) and (20).
AB872,38 16Section 38. 71.17 (6) of the statutes, as affected by 2013 Wisconsin Act 20, is
17amended to read:
AB872,16,2118 71.17 (6) Funeral trusts. If a qualified funeral trust makes the election under
19section 685 of the Internal Revenue Code for federal income tax purposes, that
20election applies for purposes of this chapter and each trust shall compute its own tax
21and shall apply the rates under s. 71.06 (1), (1m), (1n), or (1p), or (1q).
AB872,39 22Section 39. 71.21 (4) (b) of the statutes is repealed.
AB872,40 23Section 40. 71.255 (2m) (d) of the statutes is amended to read:
AB872,17,224 71.255 (2m) (d) The department may not shall disregard the tax effect of an
25election under this subsection, or disallow the election, with respect to any controlled

1group member or members for any year of the election period , if the department
2determines that the election has the effect of tax avoidance
.
AB872,41 3Section 41. 71.255 (6) (a) of the statutes is amended to read:
AB872,17,124 71.255 (6) (a) Except as provided in pars. (b), (bm), and (c) no tax credit,
5Wisconsin net business loss carry-forward, or other post-apportionment deduction
6earned by one member of the combined group, but not fully used by or allowed to that
7member, may be used in whole or in part by another member of the combined group
8or applied in whole or in part against the total income of the combined group. A
9member of a combined group may use a carry-forward of a credit, Wisconsin net
10business loss carry-forward, or other post-apportionment deduction otherwise
11allowable under s. 71.26 or 71.45, that was incurred by that same member in a
12taxable year beginning before January 1, 2009.
AB872,42 13Section 42. 71.255 (6) (bm) of the statutes is repealed.
AB872,43 14Section 43. 71.26 (2) (a) 11. of the statutes is repealed.
AB872,44 15Section 44. 71.26 (4) (a) of the statutes is renumbered 71.26 (4) and amended
16to read:
AB872,18,817 71.26 (4) Except as provided in par. (b), a A corporation, except a tax-option
18corporation or an insurer to which s. 71.45 (4) applies, may offset against its
19Wisconsin net business income any Wisconsin net business loss sustained in any of
20the next 15 preceding taxable years, if the corporation was subject to taxation under
21this chapter in the taxable year in which the loss was sustained, to the extent not
22offset by other items of Wisconsin income in the loss year and by Wisconsin net
23business income of any year between the loss year and the taxable year for which an
24offset is claimed. For purposes of this subsection Wisconsin net business income or
25loss shall consist of all the income attributable to the operation of a trade or business

1in this state, less the business expenses allowed as deductions in computing net
2income. The Wisconsin net business income or loss of corporations engaged in
3business within and without the state shall be determined under s. 71.25 (6) and (10)
4to (12). Nonapportionable losses having a Wisconsin situs under s. 71.25 (5) (b) shall
5be included in Wisconsin net business loss; and nonapportionable income having a
6Wisconsin situs under s. 71.25 (5) (b), whether taxable or exempt, shall be included
7in other items of Wisconsin income and Wisconsin net business income for purposes
8of this subsection.
AB872,45 9Section 45. 71.26 (4) (b) of the statutes is repealed.
AB872,46 10Section 46. 71.28 (5n) of the statutes, as affected by 2013 Wisconsin Act 54,
11is repealed.
AB872,47 12Section 47. 71.30 (3) (dn) of the statutes is repealed.
AB872,48 13Section 48. 71.34 (1k) (m) of the statutes is repealed.
AB872,49 14Section 49. 71.36 (1m) (a) of the statutes is amended to read:
AB872,18,1815 71.36 (1m) (a) A tax-option corporation may deduct from its net income all
16amounts included in the Wisconsin adjusted gross income of its shareholders, the
17capital gain deduction under s. 71.05 (6) (b) 9.
and all amounts not taxable to
18nonresident shareholders under ss. 71.04 (1) and (4) to (9) and 71.362.
AB872,50 19Section 50. 71.45 (4) (a) of the statutes is renumbered 71.45 (4) and amended
20to read:
AB872,19,521 71.45 (4) Except as provided in par. (b), insurers Insurers computing tax under
22this subchapter may subtract from Wisconsin net income any Wisconsin net business
23loss sustained in any of the next 15 preceding taxable years to the extent not offset
24by Wisconsin net business income of any year between the loss year and the taxable
25year for which an offset is claimed and computed without regard to sub. (2) (a) 8. and

19. and this subsection and limited to the amount of net income, but no loss incurred
2for a taxable year before taxable year 1987 by a nonprofit service plan of sickness care
3under ch. 148, or dental care under s. 447.13 may be treated as a net business loss
4of the successor service insurer under ch. 613 operating by virtue of s. 148.03 or
5447.13.
AB872,51 6Section 51. 71.45 (4) (b) of the statutes is repealed.
AB872,52 7Section 52. 71.54 (1) (f) (intro.) of the statutes is amended to read:
AB872,19,118 71.54 (1) (f) 2001 to 2011 and thereafter. (intro.) Subject to sub. (2m), the
9amount of any claim filed in 2001 to 2011 and thereafter and based on property taxes
10accrued or rent constituting property taxes accrued during the previous year is
11limited as follows:
AB872,53 12Section 53. 71.54 (1) (g) of the statutes is repealed.
AB872,54 13Section 54. 71.54 (2) (b) 3. of the statutes is amended to read:
AB872,19,1514 71.54 (2) (b) 3. Subject to sub. (2m), in calendar years 1990 to 2010 year 1990
15or any subsequent calendar year
, $1,450.
AB872,55 16Section 55. 71.54 (2) (b) 4. of the statutes is repealed.
AB872,56 17Section 56. 71.54 (2m) of the statutes is amended to read:
AB872,20,918 71.54 (2m) Indexing for inflation; 2010 and thereafter. (a) For calendar years
19beginning after December 31, 2009, and before January 1, 2011, the dollar amounts
20of the threshold income under sub. (1) (f) 1. and 2., the maximum household income
21under sub. (1) (f) 3. and the maximum property taxes under sub. (2) (b) 3. shall be
22increased each year by a percentage equal to the percentage change between the U.S.
23consumer price index for all urban consumers, U.S. city average, for the 12-month
24average of the U.S. consumer price index for the month of August of the year before
25the previous year through the month of July of the previous year and the U.S.

1consumer price index for all urban consumers, U.S. city average, for the 12-month
2average of the U.S. consumer price index for August 2007 through July 2008, as
3determined by the federal department of labor, except that the adjustment may occur
4only if the percentage is a positive number. Each amount that is revised under this
5paragraph shall be rounded to the nearest multiple of $10 if the revised amount is
6not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount
7shall be increased to the next higher multiple of $10. The department of revenue
8shall annually adjust the changes in dollar amounts required under this paragraph
9and incorporate the changes into the income tax forms and instructions.
AB872,20,1510 (b) The department of revenue shall annually adjust the slope under sub. (1)
11(f) 2. such that, as a claimant's income increases from the threshold income as
12calculated under par. (a), to an amount that exceeds the maximum household income
13as calculated under par. (a), the credit that may be claimed is reduced to $0 and the
14department of revenue shall incorporate the changes into the income tax forms and
15instructions.
AB872,57 16Section 57. 71.64 (9) (b) (intro.) of the statutes, as affected by 2013 Wisconsin
17Act 20
, is amended to read:
AB872,20,2118 71.64 (9) (b) (intro.) The department shall from time to time adjust the
19withholding tables to reflect any changes in income tax rates, any applicable surtax
20or any changes in dollar amounts in s. 71.06 (1), (1m), (1n), (1p), (1q), and (2) resulting
21from statutory changes, except as follows:
AB872,58 22Section 58. 71.67 (5) (a) of the statutes, as affected by 2013 Wisconsin Act 20,
23is amended to read:
AB872,21,424 71.67 (5) (a) Wager winnings. A person holding a license to sponsor and
25manage races under s. 562.05 (1) (b) or (c) shall withhold from the amount of any

1payment of pari-mutuel winnings under s. 562.065 (3) (a) or (3m) (a) an amount
2determined by multiplying the amount of the payment by the highest rate applicable
3to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), or (1p), or (1q) if the amount of
4the payment is more than $1,000.
AB872,59 5Section 59. 71.67 (5m) of the statutes, as affected by 2013 Wisconsin Act 20,
6is amended to read:
AB872,21,137 71.67 (5m) Withholding from payments to purchase assignment of lottery
8prize.
A person that purchases an assignment of a lottery prize shall withhold from
9the amount of any payment made to purchase the assignment the amount that is
10determined by multiplying the amount of the payment by the highest rate applicable
11to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), or (1p), or (1q). Subsection (5)
12(b), (c) and (d), as it applies to the amounts withheld under sub. (5) (a), applies to the
13amount withheld under this subsection.
AB872,60 14Section 60 . Initial applicability.
AB872,21,1615 (1) The treatment of section 71.255 (2m) (d) of the statutes first applies
16retroactively to taxable years beginning on January 1, 2009.
AB872,21,2017 (2) The treatment of sections 71.01 (14), 71.05 (6) (a) 25. and (b) 9m., 25., and
1847. b. and c., (8) (b), and (25) (b) (intro.), 71.07 (5n), 71.10 (4) (cr), 71.21 (4) (b), 71.26
19(2) (a) 11., 71.28 (5n), 71.30 (3) (dn), 71.34 (1k) (m), and 71.36 (1m) (a) of the statutes
20first applies to taxable years beginning on January 1, 2014.
AB872,21,2321 (3) The treatment of section 71.06 (1p) (intro.), (a), (b), and (c), (1q), (2) (g)
22(intro.), 1., 2., and 3., (h) (intro.), 1., 2., and 3., (i), and (j), and (2e) (a) and (b) of the
23statutes first applies retroactively to taxable years beginning on January 1, 2013.
AB872,61 24Section 61 . Effective dates. This act takes effect on the day after publication,
25except as follows:
AB872,22,2
1(1) The treatment of section 71.255 (2m) (d) of the statutes and Section 60 (1)
2of this act take effect retroactively to January 1, 2009.
AB872,22,33 (End)
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