Amendment ASA-AB150

AB150-ASA,1116,23 71.01 (6) (j) For taxable years that begin after December 31, 1994, for natural persons and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, "internal revenue code" means the federal internal revenue code as amended to December 31, 1994, excluding sections 103, 104 and 110 of P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, and as indirectly affected by P.L. 99-514, P.L. 100-203, P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-280, P.L. 101-508, P.L. 102-90, P.L. 102-227, excluding sections 103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486 and P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337 and P.L. 103-465 and "internal revenue code" means amendments to section 162 of the federal internal revenue code made by P.L. 104-7. The internal revenue code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal internal revenue code enacted after December 31, 1994, except amendments to section 162 of the federal internal revenue code made by P.L. 104-7, do not apply to this paragraph with respect to taxable years beginning after December 31, 1994.

AB150-ASA, s. 3373k Section 3373k. 71.01 (7r) of the statutes is amended to read:

AB150-ASA,1117,8 71.01 (7r) Notwithstanding sub. (6), for purposes of computing amortization or depreciation, "internal revenue code" means either the federal internal revenue code as amended to December 31, 1993 1994, or the federal internal revenue code in effect for the taxable year for which the return is filed, except that property that, under s. 71.02 (2) (d) 12., 1985 stats., is required to be depreciated for taxable year 1986 under the internal revenue code as amended to December 31, 1980, shall continue to be depreciated under the internal revenue code as amended to December 31, 1980.

AB150-ASA, s. 3373n Section 3373n. 71.02 (1) of the statutes is amended to read:

AB150-ASA,1118,3 71.02 (1) For the purpose of raising revenue for the state and the counties, cities, villages and towns, there shall be assessed, levied, collected and paid a tax on all net incomes of individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds subject to the tax under s. 71.23 (2), by every natural person residing within the state or by his or her personal representative in case of death, and trusts administered within the state; by every nonresident natural person and trust of this state, upon such income as is derived from property located or business transacted within the state including, but not limited by enumeration, income derived from a limited partner's distributive share of partnership income, income derived from a limited liability company member's distributive share of limited liability company income, the state lottery under ch. 565, any multistate lottery under ch. 565 if the winning lottery ticket or lottery share was purchased from a retailer, as defined in s. 565.01 (6), located in this state or from the gaming commission department and pari-mutuel wager winnings or purses under ch. 562, and also by every nonresident natural person upon such income as is derived from the performance of personal services within the state, except as exempted under s. 71.05 (1) to (3). Every natural person domiciled in the state shall be deemed to be residing within the state for the purposes of determining liability for income taxes and surtaxes.

AB150-ASA, s. 3373r Section 3373r. 71.04 (1) (a) of the statutes is amended to read:

AB150-ASA,1119,6 71.04 (1) (a) All income or loss of resident individuals and resident estates and trusts shall follow the residence of the individual, estate or trust. Income or loss of nonresident individuals and nonresident estates and trusts from business, not requiring apportionment under sub. (4), (10) or (11), shall follow the situs of the business from which derived. All items of income, loss and deductions of nonresident individuals and nonresident estates and trusts derived from a tax-option corporation not requiring apportionment under sub. (9) shall follow the situs of the business of the corporation from which derived. Income or loss of nonresident individuals and nonresident estates and trusts derived from rentals and royalties from real estate or tangible personal property, or from the operation of any farm, mine or quarry, or from the sale of real property or tangible personal property shall follow the situs of the property from which derived. Income from personal services of nonresident individuals, including income from professions, shall follow the situs of the services. A nonresident limited partner's distributive share of partnership income shall follow the situs of the business. A nonresident limited liability company member's distributive share of limited liability company income shall follow the situs of the business. Income of nonresident individuals, estates and trusts from the state lottery under ch. 565 is taxable by this state. Income of nonresident individuals, estates and trusts from any multistate lottery under ch. 565 is taxable by this state, but only if the winning lottery ticket or lottery share was purchased from a retailer, as defined in s. 565.01 (6), located in this state or from the gaming commission department. Income of nonresident individuals, nonresident trusts and nonresident estates from pari-mutuel winnings or purses under ch. 562 is taxable by this state. All other income or loss of nonresident individuals and nonresident estates and trusts, including income or loss derived from land contracts, mortgages, stocks, bonds and securities or from the sale of similar intangible personal property, shall follow the residence of such persons, except as provided in par. (b) and sub. (9).

AB150-ASA, s. 3373s Section 3373s. 71.05 (3) of the statutes is amended to read:

AB150-ASA,1119,24 71.05 (3) Menominee Indian tribe; distribution of assets. No distribution of assets from the United States to the members of the Menominee Indian tribe as defined in s. 49.085 49.385 or their lawful distributees, or to any corporation, or organization, created by the tribe or at its direction pursuant to section 8, P.L. 83-399, as amended, and no issuance of stocks, bonds, certificates of indebtedness, voting trust certificates or other securities by any such corporation or organization, or voting trust, to such members of the tribe or their lawful distributees shall be subject to income taxes under this chapter; provided, that so much of any cash distribution made under said P.L. 83-399 as consists of a share of any interest earned on funds deposited in the treasury of the United States pursuant to the supplemental appropriation act, 1952, (65 Stat. 736, 754) shall not by virtue of this subsection be exempt from the individual income tax of this state in the hands of the recipients for the year in which paid. For the purpose of ascertaining the gain or loss resulting from the sale or other disposition of such assets and stocks, bonds, certificates of indebtedness and other securities under this chapter, the fair market value of such property, on termination date as defined in s. 70.057 (1), 1967 stats., shall be the basis for determining the amount of such gain or loss.

AB150-ASA, s. 3373t Section 3373t. 71.05 (6) (a) 15. of the statutes is amended to read:

AB150-ASA,1120,4 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL) and (2ds) and not passed through by a partnership, limited liability company or tax-option corporation that has added that amount to the partnership's, company's or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).

AB150-ASA, s. 3373w Section 3373w. 71.05 (6) (b) 21. of the statutes is created to read:

AB150-ASA,1120,9 71.05 (6) (b) 21. The difference between the amount of social security benefits included in federal adjusted gross income for the current year and the amount calculated under section 86 of the internal revenue code as that section existed on December 31, 1992.

AB150-ASA, s. 3377m Section 3377m. 71.07 (2dd) of the statutes is created to read:

AB150-ASA,1120,11 71.07 (2dd) Development zones day care credit. (a) In this subsection:

AB150-ASA,1120,14 1. "Day care center benefits" means benefits provided at a day care facility that is licensed under s. 48.65 or 48.69 and that for compensation provides care for at least 6 children.

AB150-ASA,1120,18 2. "Employment-related day care expenses" means amounts paid or incurred by a claimant for providing or making day care center benefits available to a qualifying child in order to enable a member of a targeted group to be employed by the claimant.

AB150-ASA,1120,20 3. "Qualifying child" means a child of a member of a targeted group who is employed by a claimant.

AB150-ASA,1120,21 4. "Member of a targeted group" means a person under sub. (2dj) (am) 1.

AB150-ASA,1121,4 (b) Except as provided in s. 73.03 (35), for any taxable year for which that person is certified under s. 560.765 (3) and begins business operations in a zone under s. 560.71 after the effective date of this paragraph .... [revisor inserts date], entitled under s. 560.795 (3) (a) and begins business operations in a zone under s. 560.795 after the effective date of this paragraph .... [revisor inserts date], or certified under s. 560.797 (4) (a) for each zone for which the person is certified or entitled a person may credit against taxes otherwise due under this subchapter employment-related day care expenses, up to $1,200 for each qualifying child.

AB150-ASA,1121,6 (c) Subsection (2di) (b), (d), (f) and (g), as it applies to the credit under sub. (2di), applies to the credit under this subsection.

AB150-ASA,1121,8 (d) Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB150-ASA,1121,14 (e) The credit under this subsection, as it applies to a person certified under s. 560.765 (3), applies to a person who conducts economic activity in a zone under s. 560.795 (1) and who is entitled to tax benefits under s. 560.795 (3), subject to the limits under s. 560.795 (2). A credit under this subsection may be credited using expenses incurred by a claimant on the effective date of this paragraph .... [revisor inserts date].

AB150-ASA, s. 3377r Section 3377r. 71.07 (2de) of the statutes is created to read:

AB150-ASA,1122,2 71.07 (2de) Development zones environmental remediation credit. (a) Except as provided in s. 73.03 (35), for any taxable year for which a person is certified under s. 560.765 (3) and begins business operations in a zone under s. 560.71 after the effective date of this paragraph .... [revisor inserts date], entitled under s. 560.795 (3) (a) and begins business operations in a zone under s. 560.795 after the effective date of this paragraph .... [revisor inserts date], or certified under s. 560.797 (4) (a), for each zone for which the person is certified or entitled the person may claim as a credit against taxes otherwise due under this subchapter an amount equal to 7.5% of the amount that the person expends to remove or contain environmental pollution, as defined in s. 144.01 (3), in the zone or to restore soil or groundwater that is affected by environmental pollution, as defined in s. 144.01 (3), in the zone if the person fulfills all of the following requirements:

AB150-ASA,1122,6 1. Begins the work, other than planning and investigating, for which the credit is claimed after the area that includes the site where the work is done is designated a development zone under s. 560.71, a development opportunity zone under s. 560.795 or an enterprise development zone under s. 560.797.

AB150-ASA,1122,9 2. Completes the project for which the credit is claimed after the claimant is certified under s. 560.765 (3), entitled under s. 560.795 (3) (a) or certified under s. 560.797 (4) (a).

AB150-ASA,1122,11 (b) Subsection (2di), (b), (d), (f) and (g), as it applies to the credit under sub. (2di), applies to the credit under this subsection.

AB150-ASA,1122,13 (c) Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB150-ASA,1122,19 (d) The credit under this subsection, as it applies to a person certified under s. 560.765 (3), applies to a person who conducts economic activity in a zone under s. 560.795 (1) and who is entitled to tax benefits under s. 560.795 (3), subject to the limits under s. 560.795 (2). A credit under this subsection may be credited using expenses incurred by a claimant on the effective date of this paragraph .... [revisor inserts date].

AB150-ASA, s. 3378g Section 3378g. 71.07 (2dj) (am) 4b. of the statutes is created to read:

AB150-ASA,1122,25 71.07 (2dj) (am) 4b. Modify "qualified wages", as defined in section 51 (b) of the internal revenue code, to include up to $2,500 in day care center benefits, as defined in sub. (2dd) (a) 1., if the claimant begins operations in a zone under s. 560.71 or 560.795 after the effective date of this subdivision .... [revisor inserts date], or if the claimant conducts economic activity in a zone under s. 560.797.

AB150-ASA, s. 3378m Section 3378m. 71.07 (2dj) (d) of the statutes is amended to read:

AB150-ASA,1123,7 71.07 (2dj) (d) If the allowable amount of the credit under par. (am) exceeds the taxes otherwise due under this chapter on or measured by the claimant's income, the amount of the credit not used as an offset against those taxes shall be certified to the department of administration for payment to the claimant by check, share draft or other draft unless the claimant does not fulfill the requirements under sub. (2di) (b) 2. and bases the claim on activity in a zone under s. 560.797.

AB150-ASA, s. 3380g Section 3380g. 71.07 (2dj) (f) of the statutes is amended to read:

AB150-ASA,1123,10 71.07 (2dj) (f) The rules under sub. (2di) (b), (f) and (g) as they apply to the credit under that subsection apply to the credit under this subsection.

AB150-ASA, s. 3380r Section 3380r. 71.07 (2ds) (c) of the statutes is amended to read:

AB150-ASA,1123,17 71.07 (2ds) (c) If the allowable amount of the credit under par. (b) exceeds the taxes otherwise due under this chapter on or measured by the claimant's income, the amount of the credit not used as an offset against those taxes shall be certified to the department of administration for payment to the claimant by check, share draft or other draft unless the claimant does not fulfill the requirements under sub. (2di) (b) 2. and bases the claim on activity in a zone under s. 560.797.

AB150-ASA, s. 3381m Section 3381m. 71.07 (2ds) (e) of the statutes is amended to read:

AB150-ASA,1123,20 71.07 (2ds) (e) The rules under sub. (2di) (b), (f) and (g) as they apply to the credit under that subsection apply to the credit under this subsection.

AB150-ASA, s. 3382 Section 3382. 71.07 (9) (b) of the statutes is amended to read:

AB150-ASA,1124,3 71.07 (9) (b) Subject to the limitations under this subsection, a claimant may claim as a credit against, but not to exceed the amount of, taxes under s. 71.02, 10% of a percentage equal to the top marginal tax rate under s. 71.06 multiplied by the first $2,000 of property taxes or rent constituting property taxes, or 10% of a percentage equal to the top marginal tax rate under s. 71.06 multiplied by the first $1,000 of property taxes or rent constituting property taxes of a married person filing separately.

AB150-ASA, s. 3382m Section 3382m. 71.07 (9e) (ac) of the statutes is created to read:

AB150-ASA,1124,9 71.07 (9e) (ac) For taxable years beginning after December 31, 1994, and before January 1, 1996, any natural person may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the person is eligible for the taxable year under section 32 (b) (1) (A) to (C) of the internal revenue code:

AB150-ASA,1124,11 1. If the person has one qualifying child who has the same principal place of abode as the person, 4%.

AB150-ASA,1124,13 2. If the person has 2 qualifying children who have the same principal place of abode as the person, 16%.

AB150-ASA,1124,15 3. If the person has 3 or more qualifying children who have the same principal place of abode as the person, 50%.

AB150-ASA, s. 3383 Section 3383. 71.07 (9e) (ad) (intro.) of the statutes is amended to read:

AB150-ASA,1124,22 71.07 (9e) (ad) (intro.) For taxable years beginning on or after January 1, 1994 after December 31, 1993, and before January 1, 1995, a person who has one qualifying child who has the same principal place of abode as the person may credit against the tax imposed under s. 71.02 an amount equal to the amount calculated by one of the following methods, based on the person's earned income or federal adjusted gross income:

AB150-ASA, s. 3383m Section 3383m. 71.07 (9e) (af) of the statutes is created to read:

AB150-ASA,1125,3 71.07 (9e) (af) For taxable years beginning after December 31, 1995, any natural person may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the person is eligible for the taxable year under section 32 (b) (1) (A) to (C) of the internal revenue code:

AB150-ASA,1125,5 1. If the person has one qualifying child who has the same principal place of abode as the person, 4%.

AB150-ASA,1125,7 2. If the person has 2 qualifying children who have the same principal place of abode as the person, 14%.

AB150-ASA,1125,9 3. If the person has 3 or more qualifying children who have the same principal place of abode as the person, 43%.

AB150-ASA, s. 3384 Section 3384. 71.07 (9e) (ah) (intro.) of the statutes is amended to read:

AB150-ASA,1125,16 71.07 (9e) (ah) (intro.) For taxable years beginning on or after January 1, 1994 after December 31, 1993, and before January 1, 1995, a person who has 2 qualifying children who have the same principal place of abode as the person may credit against the tax imposed under s. 71.02 an amount equal to the amount calculated by one of the following methods, based on the person's earned income or federal adjusted gross income:

AB150-ASA, s. 3388 Section 3388. 71.07 (9e) (ap) (intro.) of the statutes is amended to read:

AB150-ASA,1125,23 71.07 (9e) (ap) (intro.) For taxable years beginning on or after January 1, 1994 after December 31, 1993, and before January 1, 1995, a person who has more than 2 qualifying children who have the same principal place of abode as the person may credit against the tax imposed under s. 71.02 an amount equal to the amount calculated by one of the following methods, based on the person's earned income or federal adjusted gross income:

AB150-ASA, s. 3391 Section 3391. 71.07 (9e) (at) 1. (intro.) of the statutes is amended to read:

AB150-ASA,1126,2 71.07 (9e) (at) 1. (intro.) For taxable years beginning on or after January 1, 1994, and subject to subd. 2. after December 31, 1993, and before January 1, 1995:

AB150-ASA, s. 3392 Section 3392. 71.07 (9e) (at) 2. of the statutes is repealed.

AB150-ASA, s. 3393 Section 3393. 71.07 (9e) (at) 3. (intro.) of the statutes is amended to read:

AB150-ASA,1126,7 71.07 (9e) (at) 3. (intro.) For taxable years beginning on or after January 1, 1994 after December 31, 1993, and before January 1, 1995, the maximum credit is one of the following amounts:

AB150-ASA, s. 3393m Section 3393m. 71.07 (9m) (a) of the statutes is amended to read:

AB150-ASA,1126,15 71.07 (9m) (a) Any person may credit against taxes otherwise due under this chapter, up to the amount of those taxes, an amount equal to 5% of the costs of qualified rehabilitation expenditures, as defined in section 48 (g) (2) 47 (c) (2) of the internal revenue code, for certified historic structures on property located in this state if the physical work of construction or destruction in preparation for construction begins after December 31, 1988, and the rehabilitated property is placed in service after June 30, 1989.

AB150-ASA, s. 3393r Section 3393r. 71.08 (1) (intro.) of the statutes is amended to read:

AB150-ASA,1126,24 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married couple filing jointly, trust or estate under s. 71.02, not considering the credits under ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2ds), (2fd), (3m), (6) and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1fd) and (2m) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1fd) and (2m) and subchs. VIII and IX and payments to other states under s. 71.07 (7), is less than the tax under this section, there is imposed on that natural person, married couple filing jointly, trust or estate, instead of the tax under s. 71.02, an alternative minimum tax computed as follows:

AB150-ASA, s. 3394 Section 3394. 71.10 (3) (b) of the statutes is amended to read:

AB150-ASA,1127,8 71.10 (3) (b) The secretary of revenue shall provide a place for those designations on the face of the individual income tax return and shall provide next to that place a statement that a designation will not increase tax liability. Annually on August 15, the secretary of revenue shall certify to the elections board, the department secretary of administration and the state treasurer under s. 11.50 the total amount of designations made during the preceding fiscal year. If any individual attempts to place any condition or restriction upon a designation, that individual is deemed not to have made a designation on his or her tax return.

AB150-ASA, s. 3394m Section 3394m. 71.10 (4) (gh) and (gi) of the statutes are created to read:

AB150-ASA,1127,10 71.10 (4) (gh) Development zones day care credit under s. 71.07 (2dd).

AB150-ASA,1127,11 (gi) Development zones environmental remediation credit under s. 71.07 (2de).

AB150-ASA, s. 3395 Section 3395. 71.10 (5) (h) (intro.) of the statutes is amended to read:

AB150-ASA,1127,15 71.10 (5) (h) Certification of amounts. (intro.) Annually, on or before September 15, the secretary of revenue shall certify to the department of natural resources, and the department secretary of administration and the state treasurer:

AB150-ASA, s. 3395e Section 3395e. 71.10 (5m) of the statutes is created to read:

AB150-ASA,1127,19 71.10 (5m) Domestic abuse awareness and prevention. (a) Definitions. In this subsection, "domestic abuse program" means the program described under s. 46.95 (4).

AB150-ASA,1127,22 (b) Voluntary payments. 1. `Designation on return'. Any individual filing an income tax return may designate on the return any amount of additional payment or any amount of a refund due that individual for the domestic abuse program.

AB150-ASA,1127,25 2. `Designation added to tax owed'. If the individual owes any tax, the individual shall remit in full the tax due and the amount designated on the return for the domestic abuse program when the individual files a tax return.

AB150-ASA,1128,4 3. `Designation deducted from refund'. Except as provided under par. (d) if the individual is owed a refund for that year after crediting under ss. 71.75 (9) and 71.80 (3), the department of revenue shall deduct the amount designated on the return for the domestic abuse program from the amount of the refund.

AB150-ASA,1128,8 (c) Errors; failure to remit correct amount. If an individual who owes taxes fails to remit an amount equal to or in excess of the total of the actual tax due, after error corrections, and the amount designated on the return for the domestic abuse program:

AB150-ASA,1128,13 1. The department shall reduce the designation for the domestic abuse program to reflect the amount remitted in excess of the actual tax due, after error corrections, if the individual remitted an amount in excess of the actual tax due, after error corrections, but less than the total of the actual tax due, after error corrections, and the amount originally designated on the return for the domestic abuse program.

AB150-ASA,1128,15 2. The designation for the domestic abuse program is void if the individual remitted an amount equal to or less than the actual tax due, after error corrections.

AB150-ASA,1128,21 (d) Errors; insufficient refund. If an individual who is owed a refund which does not equal or exceed the amount designated on the return for the domestic abuse program, after crediting under ss. 71.75 (9) and 71.80 (3) and after error corrections, the department shall reduce the designation for the domestic abuse program to reflect the actual amount of the refund the individual is otherwise owed, after crediting under ss. 71.75 (9) and 71.80 (3) and after error corrections.

AB150-ASA,1128,23 (e) Conditions. If an individual places any conditions on a designation for the domestic abuse program, the designation is void.

AB150-ASA,1129,3 (f) Void designation. If a designation for the domestic abuse program is void, the department of revenue shall disregard the designation and determine amounts due, owed, refunded and received without regard to the void designation.

AB150-ASA,1129,7 (g) Tax return. The secretary of revenue shall provide a place for the designations under this subsection on the individual income tax return and the secretary shall highlight that place on the return by a symbol chosen by the department of revenue that relates to domestic abuse prevention and awareness.

AB150-ASA,1129,11 (h) Certification of amounts. Annually, on or before September 15, the secretary of revenue shall certify to the department of health and social services and the secretary of administration, and on or before September 15, 1995, the secretary of revenue shall also certify to the state treasurer:

AB150-ASA,1129,14 1. The total amount of the administrative costs, including data processing costs, incurred by the department of revenue in administering this subsection during the previous fiscal year.

AB150-ASA,1129,16 2. The total amount received from all designations for the domestic abuse program made by taxpayers during the previous fiscal year.