LRBs0325/1
MES/JK/KRP:klm&wlj
2017 - 2018 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 910
February 20, 2018 - Offered by Representative Kooyenga.
AB910-ASA1,2,2 1An Act to amend 71.01 (6) (k) 1., 71.01 (6) (k) 3., 71.05 (6) (b) 28. (intro.), 71.05
2(6) (b) 49. a., 71.05 (6) (b) 49. b., 71.05 (10) (i) 1., 71.05 (23) (b) 2., 71.06 (1q)
3(intro.), 71.06 (2) (i) (intro.), 71.06 (2) (j) (intro.), 71.06 (2e) (a), 71.06 (2e) (b),
471.06 (2m), 71.06 (2s) (d), 71.08 (1) (d), 71.125 (1), 71.125 (2), 71.17 (6), 71.22
5(4) (k) 1., 71.22 (4) (k) 3., 71.22 (4m) (k) 1., 71.22 (4m) (k) 3., 71.26 (2) (b) 11. a.,
671.26 (2) (b) 11. d., 71.26 (3) (j), 71.34 (1g) (k) 1., 71.34 (1g) (k) 3., 71.42 (2) (k)
71., 71.42 (2) (k) 3., 71.64 (9) (b) (intro.), 71.67 (5) (a), 71.67 (5m), 71.98 (3), 77.54
8(9m) and 224.50 (2) (a); and to create 71.01 (6) (L), 71.05 (6) (b) 49. k., 71.06 (1r),
971.06 (2) (k), 71.06 (2) (L), 71.06 (2e) (bg), 71.22 (4) (L), 71.22 (4m) (L), 71.26 (2)
10(b) 12., 71.34 (1g) (L), 71.42 (2) (L), 71.98 (9) and 77.54 (9a) (fc) of the statutes;
11relating to: updating Internal Revenue Code references for state tax purposes,
12clarifying the duties of the College Savings Program Board, decreasing
13individual income tax rates, a sales and use tax exemption for title holding

1entities for certain tax-exempt charitable organizations, and computing
2depletion for income and franchise tax purposes.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB910-ASA1,1 3Section 1 . 71.01 (6) (k) 1. of the statutes, as created by 2017 Wisconsin Act 59,
4is amended to read:
AB910-ASA1,2,95 71.01 (6) (k) 1. For taxable years beginning after December 31, 2016, and before
6January 1, 2018,
for individuals and fiduciaries, except fiduciaries of nuclear
7decommissioning trust or reserve funds, “Internal Revenue Code" means the federal
8Internal Revenue Code as amended to December 31, 2016, except as provided in
9subds. 2. and 3. and s. 71.98 and subject to subd. 4.
AB910-ASA1,2 10Section 2. 71.01 (6) (k) 3. of the statutes, as created by 2017 Wisconsin Act 59,
11is amended to read:
AB910-ASA1,2,1512 71.01 (6) (k) 3. For purposes of this paragraph, “Internal Revenue Code" does
13not include amendments to the federal Internal Revenue Code enacted after
14December 31, 2016, except that “Internal Revenue Code” includes sections 11024,
1511025, and 13543 of P.L. 115-97
.
AB910-ASA1,3 16Section 3 . 71.01 (6) (L) of the statutes is created to read:
AB910-ASA1,2,2117 71.01 (6) (L) 1. For taxable years beginning after December 31, 2017, for
18individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or
19reserve funds, “Internal Revenue Code" means the federal Internal Revenue Code
20as amended to December 31, 2017, except as provided in subds. 2. and 3. and s. 71.98
21and subject to subd. 4.
AB910-ASA1,3,1622 2. For purposes of this paragraph, “Internal Revenue Code" does not include
23the following provisions of federal public laws for taxable years beginning after

1December 31, 2017: section 13113 of P.L. 103-66; sections 1, 3, 4, and 5 of P.L.
2106-519; sections 101, 102, and 422 of P.L. 108-357; sections 1310 and 1351 of P.L.
3109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of
4P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L.
5110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section
615351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections
7312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251,
81501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L.
9111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L.
10111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and
11411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division
12P of P.L. 114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to
13171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113; and sections 11011,
1413201 (a) to (e) and (g), 13206, 13301, 13801, 14101, 14102, 14103, 14201, 14202,
1514211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401
16of P.L. 115-97.
AB910-ASA1,3,1817 3. For purposes of this paragraph, “Internal Revenue Code" does not include
18amendments to the federal Internal Revenue Code enacted after December 31, 2017.
AB910-ASA1,3,2119 4. For purposes of this paragraph, the provisions of federal public laws that
20directly or indirectly affect the Internal Revenue Code, as defined in this paragraph,
21apply for Wisconsin purposes at the same time as for federal purposes.
AB910-ASA1,4 22Section 4. 71.05 (6) (b) 28. (intro.) of the statutes, as affected by 2017
23Wisconsin Act 59
, is amended to read:
AB910-ASA1,4,624 71.05 (6) (b) 28. (intro.) An amount paid by a claimant for tuition expenses and
25mandatory student fees for a student who is the claimant or who is the claimant's

1child and the claimant's dependent who is claimed under section 151 (c), as defined
2under section 152
of the Internal Revenue Code, to attend any university, college,
3technical college or a school approved under s. 440.52, that is located in Wisconsin
4or to attend a public vocational school or public institution of higher education in
5Minnesota under the Minnesota-Wisconsin reciprocity agreement under s. 39.47,
6calculated as follows:
AB910-ASA1,5 7Section 5 . 71.05 (6) (b) 49. a. of the statutes is amended to read:
AB910-ASA1,4,128 71.05 (6) (b) 49. a. Subject to the definitions provided in subd. 49. b. to g. and
9the limitations specified in subd. 49. h. to j. for taxable years beginning after
10December 31, 2013, and subject to the limitation in subd. 49. k. for taxable years
11beginning after December 31, 2017,
tuition expenses that are paid by a claimant for
12tuition for a pupil to attend an eligible institution.
AB910-ASA1,6 13Section 6. 71.05 (6) (b) 49. b. of the statutes is amended to read:
AB910-ASA1,4,1614 71.05 (6) (b) 49. b. In this subdivision, “claimant" means an individual who
15claims a pupil as a dependent under section 151 (c) , as defined under section 152 of
16the Internal Revenue Code, on his or her tax return.
AB910-ASA1,7 17Section 7 . 71.05 (6) (b) 49. k. of the statutes is created to read:
AB910-ASA1,4,2118 71.05 (6) (b) 49. k. For taxable years beginning after December 31, 2017, no
19modification may be claimed under this subdivision for an amount paid for tuition
20expenses, as described under this subdivision, if the source of the payment is an
21amount withdrawn from a college savings account, as described in s. 224.50.
AB910-ASA1,8 22Section 8. 71.05 (10) (i) 1. of the statutes is amended to read:
AB910-ASA1,5,623 71.05 (10) (i) 1. Subject to the conditions in this paragraph, an individual may
24subtract up to $10,000 from federal adjusted gross income if he or she, or his or her
25dependent who is claimed under section 151 (c), as defined under section 152 of the

1Internal Revenue Code, while living, donates one or more of his or her human organs
2to another human being for human organ transplantation, as defined in s. 146.345
3(1), except that in this paragraph, “human organ" means all or part of a liver,
4pancreas, kidney, intestine, lung, or bone marrow. A subtract modification that is
5claimed under this paragraph may be claimed in the taxable year in which the
6human organ transplantation occurs.
AB910-ASA1,9 7Section 9. 71.05 (23) (b) 2. of the statutes is amended to read:
AB910-ASA1,5,118 71.05 (23) (b) 2. An exemption of $700 for each individual for whom the
9taxpayer is entitled to an exemption for the taxable year under section 151 (c)

10dependent, as defined under section 152 of the Internal Revenue Code, of the
11taxpayer
.
AB910-ASA1,10 12Section 10 . 71.06 (1q) (intro.) of the statutes is amended to read:
AB910-ASA1,5,1813 71.06 (1q) Fiduciaries, single individuals, and heads of households; after
142012
to 2017. (intro.) The tax to be assessed, levied, and collected upon the taxable
15incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or
16reserve funds, and single individuals and heads of households shall be computed at
17the following rates for taxable years beginning after December 31, 2012, and before
18January 1, 2018
:
AB910-ASA1,11 19Section 11 . 71.06 (1r) of the statutes is created to read:
AB910-ASA1,5,2420 71.06 (1r) Fiduciaries, single individuals, and heads of households; after
212017.
The tax to be assessed, levied, and collected upon the taxable incomes of all
22fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
23single individuals and heads of households shall be computed at the following rates
24for taxable years beginning after December 31, 2017:
AB910-ASA1,5,2525 (a) On all taxable income from $0 to $7,500, 3.9 percent.
AB910-ASA1,6,2
1(b) On all taxable income exceeding $7,500 but not exceeding $18,750, 5.74
2percent.
AB910-ASA1,6,43 (c) On all taxable income exceeding $18,750 but not exceeding $225,000, 6.27
4percent.
AB910-ASA1,6,55 (d) On all taxable income exceeding $225,000, 7.65 percent.
AB910-ASA1,12 6Section 12 . 71.06 (2) (i) (intro.) of the statutes is amended to read:
AB910-ASA1,6,87 71.06 (2) (i) (intro.) For joint returns, for taxable years beginning after
8December 31, 2012, and before January 1, 2018:
AB910-ASA1,13 9Section 13 . 71.06 (2) (j) (intro.) of the statutes is amended to read:
AB910-ASA1,6,1110 71.06 (2) (j) (intro.) For married persons filing separately, for taxable years
11beginning after December 31, 2012, and before January 1, 2018:
AB910-ASA1,14 12Section 14 . 71.06 (2) (k) of the statutes is created to read:
AB910-ASA1,6,1413 71.06 (2) (k) For joint returns, for taxable years beginning after
14December 31, 2017:
AB910-ASA1,6,1515 1. On all taxable income from $0 to $10,000, 3.9 percent.
AB910-ASA1,6,1716 2. On all taxable income exceeding $10,000 but not exceeding $25,000, 5.74
17percent.
AB910-ASA1,6,1918 3. On all taxable income exceeding $25,000 but not exceeding $300,000, 6.27
19percent.
AB910-ASA1,6,2020 4. On all taxable income exceeding $300,000,7.65 percent.
AB910-ASA1,15 21Section 15 . 71.06 (2) (L) of the statutes is created to read:
AB910-ASA1,6,2322 71.06 (2) (L) For married persons filing separately, for taxable years beginning
23after December 31, 2017:
AB910-ASA1,6,2424 1. On all taxable income from $0 to $5,000, 3.9 percent.
AB910-ASA1,7,2
12. On all taxable income exceeding $5,000 but not exceeding $12,500, 5.74
2percent.
AB910-ASA1,7,43 3. On all taxable income exceeding $12,500 but not exceeding $150,000, 6.27
4percent.
AB910-ASA1,7,55 4. On all taxable income exceeding $150,000, 7.65 percent.
AB910-ASA1,16 6Section 16 . 71.06 (2e) (a) of the statutes is amended to read:
AB910-ASA1,8,27 71.06 (2e) (a) For taxable years beginning after December 31, 1998, and before
8January 1, 2000, the maximum dollar amount in each tax bracket, and the
9corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2)
10(c) and (d), and for taxable years beginning after December 31, 1999, and before
11January 1, 2018,
the maximum dollar amount in each tax bracket, and the
12corresponding minimum dollar amount in the next bracket, under subs. (1n), (1p) (a)
13to (c), (1q) (a) and (b), and (2) (e), (f), (g) 1. to 3., (h) 1. to 3., (i) 1. and 2., and (j) 1. and
142., shall be increased each year by a percentage equal to the percentage change
15between the U.S. consumer price index for all urban consumers, U.S. city average,
16for the month of August of the previous year and the U.S. consumer price index for
17all urban consumers, U.S. city average, for the month of August 1997, as determined
18by the federal department of labor, except that for taxable years beginning after
19December 31, 2000, and before January 1, 2002, the dollar amount in the top bracket
20under subs. (1p) (c) and (d), (2) (g) 3. and 4. and (h) 3. and 4. shall be increased by a
21percentage equal to the percentage change between the U.S. consumer price index
22for all urban consumers, U.S. city average, for the month of August of the previous
23year and the U.S. consumer price index for all urban consumers, U.S. city average,
24for the month of August 1999, as determined by the federal department of labor,
25except that for taxable years beginning after December 31, 2011, the adjustment may

1occur only if the resulting amount is greater than the corresponding amount that was
2calculated for the previous year.
AB910-ASA1,17 3Section 17 . 71.06 (2e) (b) of the statutes is amended to read:
AB910-ASA1,8,154 71.06 (2e) (b) For taxable years beginning after December 31, 2009, and before
5January 1, 2018,
the maximum dollar amount in each tax bracket, and the
6corresponding minimum dollar amount in the next bracket, under subs. (1p) (d), (1q)
7(c), and (2) (g) 4., (h) 4., (i) 3., and (j) 3., and the dollar amount in the top bracket under
8subs. (1p) (e), (1q) (d), and (2) (g) 5., (h) 5., (i) 4., and (j) 4., shall be increased each year
9by a percentage equal to the percentage change between the U.S. consumer price
10index for all urban consumers, U.S. city average, for the month of August of the
11previous year and the U.S. consumer price index for all urban consumers, U.S. city
12average, for the month of August 2008, as determined by the federal department of
13labor, except that for taxable years beginning after December 31, 2011, the
14adjustment may occur only if the resulting amount is greater than the corresponding
15amount that was calculated for the previous year.
AB910-ASA1,18 16Section 18 . 71.06 (2e) (bg) of the statutes is created to read:
AB910-ASA1,9,217 71.06 (2e) (bg) For taxable years beginning after December 31, 2017, the
18maximum dollar amount in each tax bracket, and the corresponding minimum dollar
19amount in the next bracket, under subs. (1r) and (2) (k) and (L) shall be increased
20each year by a percentage equal to the percentage change between the U.S. consumer
21price index for all urban consumers, U.S. city average, for the month of August of the
22previous year and the U.S. consumer price index for all urban consumers, U.S. city
23average, for the month of August 1997, as determined by the federal department of
24labor, except that for taxable years beginning after December 31, 2018, the

1adjustment may occur only if the resulting amount is greater than the corresponding
2amount that was calculated for the previous year.
AB910-ASA1,19 3Section 19 . 71.06 (2m) of the statutes is amended to read:
AB910-ASA1,9,74 71.06 (2m) Rate changes. If a rate under sub. (1), (1m), (1n), (1p), (1q), (1r),
5or (2) changes during a taxable year, the taxpayer shall compute the tax for that
6taxable year by the methods applicable to the federal income tax under section 15 of
7the Internal Revenue Code.
AB910-ASA1,20 8Section 20 . 71.06 (2s) (d) of the statutes is amended to read:
AB910-ASA1,9,229 71.06 (2s) (d) For taxable years beginning after December 31, 2000, with
10respect to nonresident individuals, including individuals changing their domicile
11into or from this state, the tax brackets under subs. (1p), (1q), (1r), and (2) (g), (h),
12(i), and (j), (k), and (L) shall be multiplied by a fraction, the numerator of which is
13Wisconsin adjusted gross income and the denominator of which is federal adjusted
14gross income. In this paragraph, for married persons filing separately “ adjusted
15gross income" means the separate adjusted gross income of each spouse, and for
16married persons filing jointly “adjusted gross income" means the total adjusted gross
17income of both spouses. If an individual and that individual's spouse are not both
18domiciled in this state during the entire taxable year, the tax brackets under subs.
19(1p), (1q), (1r), and (2) (g), (h), (i), and (j), (k), and (L) on a joint return shall be
20multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted
21gross income and the denominator of which is their joint federal adjusted gross
22income.
AB910-ASA1,21 23Section 21. 71.08 (1) (d) of the statutes is amended to read:
AB910-ASA1,9,2524 71.08 (1) (d) Subtract from the amount under par. (c) the appropriate amount
25under section 55 (d) (1), (3), and (4) of the federal Internal Revenue Code in effect for

1the taxable year; except that surviving spouses shall be treated as single individuals;
2except that the amount under par. (c), not the federal alternative minimum taxable
3income, shall be used in calculating the phase-out and except that for nonresidents
4and part-year residents the amount under section 55 (d) (1), (3), and (4) of the federal
5Internal Revenue Code in effect for the taxable year shall be prorated on the basis
6of the ratio of Wisconsin adjusted gross income to federal adjusted gross income.
AB910-ASA1,22 7Section 22 . 71.125 (1) of the statutes is amended to read:
AB910-ASA1,10,118 71.125 (1) Except as provided in sub. (2), the tax imposed by this chapter on
9individuals and the rates under s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2) shall
10apply to the Wisconsin taxable income of estates or trusts, except nuclear
11decommissioning trust or reserve funds, and that tax shall be paid by the fiduciary.
AB910-ASA1,23 12Section 23 . 71.125 (2) of the statutes is amended to read:
AB910-ASA1,10,1713 71.125 (2) Each electing small business trust, as defined in section 1361 (e) (1)
14of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1),
15(1m), (1n), (1p), or (1q), or (1r), whichever taxable year is applicable, on its income
16as computed under section 641 of the Internal Revenue Code, as modified by s. 71.05
17(6) to (12), (19) and (20).
AB910-ASA1,24 18Section 24 . 71.17 (6) of the statutes is amended to read:
AB910-ASA1,10,2219 71.17 (6) Funeral trusts. If a qualified funeral trust makes the election under
20section 685 of the Internal Revenue Code for federal income tax purposes, that
21election applies for purposes of this chapter and each trust shall compute its own tax
22and shall apply the rates under s. 71.06 (1), (1m), (1n), (1p), or (1q), or (1r).
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