LRB-4270/1
MES:ahe
2015 - 2016 LEGISLATURE
January 15, 2016 - Introduced by Representative Macco, cosponsored by Senator
Marklein. Referred to Committee on Ways and Means. Referred to Joint
Survey Committee on Tax Exemptions.
AB731,1,4 1An Act to amend 71.05 (6) (a) 27., 71.05 (6) (a) 28., 71.05 (6) (b) 52. and 71.07
2(5) (a) 9.; and to repeal and recreate 16.643 of the statutes; relating to:
3repealing the authority to create ABLE accounts in this state and creating tax
4benefits for contributions to ABLE accounts in other states.
Analysis by the Legislative Reference Bureau
This bill makes changes to the laws in this state related to the federal Achieving
a Better Life Experience Act of 2014. Under federal law, an eligible resident of this
state may participate in a qualified ABLE program of another state and establish an
ABLE account. The proceeds of an ABLE account may be used to pay for qualified
expenses, such as education, housing, and transportation costs, for a beneficiary who
is an individual with disabilities, as defined under federal law.
2015 Wisconsin Act 55, the state budget bill, authorized the creation of ABLE
accounts in this state. Generally, contributions to such an account could be
subtracted from the contributor's federal adjusted gross income in the calculation of
the taxpayer's Wisconsin taxes. This bill repeals the provisions which authorized the
creation of ABLE accounts in this state, although contributions to another state's
ABLE account continue to be tax-advantaged.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.

For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB731,1 1Section 1. 16.643 of the statutes, as created by 2015 Wisconsin Act 55, is
2repealed and recreated to read:
AB731,2,12 316.643 Support accounts for persons with disabilities. Upon the death
4of an account owner whose account is part of a qualified ABLE program under section
5529A of the Internal Revenue Code, the account shall terminate, and upon such
6termination any amount remaining in the account shall be recoverable by the state
7under s. 49.849 as property of a decedent that is recoverable under that statute. Any
8amount that remains in the account following such recovery under s. 49.849 shall be
9paid to the account owner's estate. Recovery authorized under this subsection may
10relate only to public assistance received by a beneficiary on and after the date on
11which an account is established under the terms of a contract between this state and
12another state as described under sub. (1).
AB731,2 13Section 2. 71.05 (6) (a) 27. of the statutes, as created by 2015 Wisconsin Act
1455
, is amended to read:
AB731,3,215 71.05 (6) (a) 27. Except as provided in subd. 28., any accumulated interest,
16dividends, or other gain that accrues from an account described under s. 16.643
17established under a qualified ABLE program, as described under section 529A (b) (1)
18of the Internal Revenue Code,
during the taxable year in which a withdrawal occurs
19from such an account if any amount of the money or other assets in the account is
20withdrawn by, or at the direction of, an account owner for any reason other than the

1payment of qualified disability expenses, as defined in s. 16.643 (1) (e) section 529A
2(e) (5) of the Internal Revenue Code
, for the account beneficiary.
AB731,3 3Section 3. 71.05 (6) (a) 28. of the statutes, as created by 2015 Wisconsin Act
455
, is amended to read:
AB731,3,75 71.05 (6) (a) 28. Upon the termination of an account as described under s.
616.643 (3) (d), any amount in the account that is returned to an account owner, or an
7account owner's estate.
AB731,4 8Section 4. 71.05 (6) (b) 52. of the statutes, as created by 2015 Wisconsin Act
955
, is amended to read:
AB731,3,1510 71.05 (6) (b) 52. Subject to the limits under s. 16.643 (3) (c) 1. and 2. section
11529A (b) (2) of the Internal Revenue Code
, any amount that is deposited by an
12account owner or any other person into an ABLE account described under s. 16.643
13section 529A (b) (1) of the Internal Revenue Code, and any interest, dividends, or
14other gain that accrues in the account if the interest, dividends, or other gain is
15redeposited into the account.
AB731,5 16Section 5. 71.07 (5) (a) 9. of the statutes, as created by 2015 Wisconsin Act 55,
17is amended to read:
AB731,3,2218 71.07 (5) (a) 9. The amount claimed as a deduction for unreimbursed medical
19expenses under section 213 (a) of the Internal Revenue Code to the extent that the
20funds used to pay for the unreimbursed expenses for which the deduction was
21claimed were withdrawn from an ABLE account described under s. 16.643 section
22529A (b) (1) of the Internal Revenue Code
.
AB731,6 23Section 6. Initial applicability.
AB731,4,424 (1) The treatment of sections 71.05 (6) (a) 27. and 28. and (b) 52. and 71.07 (5)
25(a) 9. of the statutes first applies to taxable years beginning on January 1 of the year

1in which this subsection takes effect, except that if this subsection takes effect after
2July 31, the treatment of sections 71.05 (6) (a) 27. and 28. and (b) 52. and 71.07 (5)
3(a) 9. of the statutes first applies to taxable years beginning on January 1 of the year
4following the year in which this subsection takes effect.
AB731,4,55 (End)
Loading...
Loading...