AB150: Bill Text Engrossed

AB150-engrossed,1170,10 71.42 (2) (i) For taxable years that begin after December 31, 1994, "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. 101-508, P.L. 102-227, excluding sections 103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, 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 except that "internal revenue code" does not include section 847 of the federal internal revenue code. 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, do not apply to this paragraph with respect to taxable years beginning after December 31, 1994.

AB150-engrossed, s. 3405 Section 3405. 71.45 (1) of the statutes is amended to read:

AB150-engrossed,1171,2 71.45 (1) Exempt and excludable income. There shall be exempt from taxation under this subchapter income of insurers exempt from federal income taxation pursuant to section 501 (c) (15) of the internal revenue code, town mutuals organized under or subject to ch. 612, foreign insurers, and domestic insurers engaged exclusively in life insurance business, domestic insurers insuring against financial loss by reason of nonpayment of principal, interest and other sums agreed to be paid under the terms of any note or bond or other evidence of indebtedness secured by a mortgage, deed of trust or other instrument constituting a lien or charge on real estate and corporations organized under ch. 185, but not including income of cooperative sickness care associations organized under s. 185.981, or of a service insurance corporation organized under ch. 613, that is derived from a health maintenance organization as defined in s. 609.01 (2) or a limited service health organization as defined in s. 609.01 (3), or operating under subch. I of ch. 616 which are bona fide cooperatives operated without pecuniary profit to any shareholder or member, or operated on a cooperative plan pursuant to which they determine and distribute their proceeds in substantial compliance with s. 185.45.

AB150-engrossed, s. 3406 Section 3406. 71.45 (2) (a) (intro.) of the statutes is amended to read:

AB150-engrossed,1171,8 71.45 (2) (a) (intro.) Insurers subject to taxation under this chapter shall pay a tax according to or measured by net income. Such tax is payable under s. 71.44 (1). "Net Except as provided in sub. (5), "net income" of an insurer subject to taxation under this chapter means federal taxable income as determined in accordance with the provisions of the internal revenue code adjusted as follows:

AB150-engrossed, s. 3406r Section 3406r. 71.45 (2) (a) 10. of the statutes is amended to read:

AB150-engrossed,1171,15 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1di) (1dd) to (1ds) and not passed through by a partnership, limited liability company or tax-option corporation that has added that amount to the partnership's, limited liability company's or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under s. 71.47 (1), (3), (4) and (5).

AB150-engrossed, s. 3406v Section 3406v. 71.45 (2) (a) 13. of the statutes is amended to read:

AB150-engrossed,1172,4 71.45 (2) (a) 13. By adding or subtracting, as appropriate, the difference between the depreciation deduction under the federal internal revenue code as amended to December 31, 1993 1994, and the depreciation deduction under the federal internal revenue code in effect for the taxable year for which the return is filed, so as to reflect the fact that the insurer may choose between these 2 deductions, except that property first placed in service by the taxpayer on or after January 1, 1983, but before January 1, 1987, that, under s. 71.04 (15) (b) and (br), 1985 stats., is required to be depreciated under the internal revenue code as amended to December 31, 1980, and property first placed in service in taxable year 1981 or thereafter but before January 1, 1987, that, under s. 71.04 (15) (bm), 1985 stats., is required to be depreciated 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-engrossed, s. 3407 Section 3407. 71.45 (5) of the statutes is created to read:

AB150-engrossed,1172,12 71.45 (5) Exceptions. The net income of a cooperative sickness care association organized under s. 185.981, or of a service insurance corporation organized under ch. 613, that is derived from a health maintenance organization, as defined in s. 609.01 (2), or a limited service health organization, as defined in s. 609.01 (3), is the net income that would be determined if the cooperative sickness care association or service insurance corporation were subject to federal income taxation and as if that income were that of an insurance company.

AB150-engrossed, s. 3407m Section 3407m. 71.47 (1dd) of the statutes is created to read:

AB150-engrossed,1172,14 71.47 (1dd) Development zones day care credit. (a) In this subsection:

AB150-engrossed,1172,17 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-engrossed,1172,21 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 individual in order to enable a member of a targeted group to be employed by the claimant.

AB150-engrossed,1172,22 4. "Member of a targeted group" means a person under sub. (1dj) (am) 1.

AB150-engrossed,1173,5 5. "Qualifying individual" means a dependent of a member of a targeted group who is employed by a claimant and with respect to whom the member is entitled to a deduction under section 151 (c) of the internal revenue code for federal income tax purposes, a dependent of a member of a targeted group who is employed by a claimant if the dependent is physically or mentally incapable of caring for himself or herself or the spouse of a member of a targeted group who is employed by the claimant if the spouse is physically or mentally incapable of caring for himself or herself.".

AB150-engrossed,1173,11 (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], 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 individual.

AB150-engrossed,1173,13 (c) Subsection (1di) (b), (c), (d) 1., (f) and (g), as it applies to the credit under sub. (1di), applies to the credit under this subsection.

AB150-engrossed,1173,15 (d) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB150-engrossed,1173,18 (dm) No credit may be allowed under this subsection unless the claimant includes with the claimant's return a statement from the department of development verifying the amount of qualifying employment-related day care expenses.

AB150-engrossed,1173,24 (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-engrossed, s. 3407r Section 3407r. 71.47 (1de) of the statutes is created to read:

AB150-engrossed,1174,10 71.47 (1de) 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], 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-engrossed,1174,16 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 and 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-engrossed,1174,18 (b) Subsection (1di) (b), (c), (d), (f) and (g), as it applies to the credit under s. 71.07 (2di), applies to the credit under this subsection.

AB150-engrossed,1174,20 (c) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB150-engrossed,1175,2 (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-engrossed, s. 3408g Section 3408g. 71.47 (1dj) (d) of the statutes is amended to read:

AB150-engrossed,1175,9 71.47 (1dj) (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. (1di) (b) 2. and bases the claim on activity in a zone under s. 560.797.

AB150-engrossed, s. 3410mm Section 3410mm. 71.47 (1dj) (h) of the statutes is created to read:

AB150-engrossed,1175,13 71.47 (1dj) (h) For claims based on activity in a zone under s. 560.797, the rules under sub. (1di) (b) and (c) as they apply to the credit under that subsection apply to the credit under this subsection.

AB150-engrossed, s. 3410r Section 3410r. 71.47 (1ds) (c) of the statutes is amended to read:

AB150-engrossed,1175,20 71.47 (1ds) (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. (1di) (b) 2. and bases the claim on activity in a zone under s. 560.797.

AB150-engrossed, s. 3411mm Section 3411mm. 71.47 (1ds) (h) of the statutes is created to read:

AB150-engrossed,1175,24 71.47 (1ds) (h) For claims based on activity in a zone under s. 560.797, the rules under sub. (1di) (b) and (c) as they apply to the credit under that subsection apply to the credit under this subsection.

AB150-engrossed, s. 3412m Section 3412m. 71.47 (6) (a) of the statutes is amended to read:

AB150-engrossed,1176,7 71.47 (6) (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-engrossed, s. 3412rg Section 3412rg. 71.49 (1) (eb), (ec), (en) and (eo) of the statutes are created to read:

AB150-engrossed,1176,11 71.49 (1) (eb) Development zones jobs credit under s. 71.47 (1dj) if the credit is based on activity in a zone under s. 560.797.

AB150-engrossed,1176,13 (ec) Development zones sales tax credit under s. 72.47 (1ds) if the credit is based on activity in a zone under s. 560.797.

AB150-engrossed,1176,14 (en) Development zones day care credit under s. 71.28 (1dd).

AB150-engrossed,1176,15 (eo) Development zones environmental remediation credit under s. 71.28 (1de).

AB150-engrossed, s. 3412rr Section 3412rr. 71.49 (1) (f) of the statutes is amended to read:

AB150-engrossed,1176,22 71.49 (1) (f) The total of farmers' drought property tax credit under s. 71.47 (1fd), farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.47 (2m), development zones sales tax credit under s. 71.47 (1ds) unless the credit is based on activity in a zone under s. 560.797, development zones jobs credit under s. 71.47 (1dj) unless the credit is based on activity in a zone under s. 560.797 and estimated tax payments under s. 71.48.

AB150-engrossed, s. 3413 Section 3413. 71.52 (6) of the statutes is amended to read:

AB150-engrossed,1178,8 71.52 (6) "Income" means the sum of Wisconsin adjusted gross income and the following amounts, to the extent not included in Wisconsin adjusted gross income: maintenance payments (except foster care maintenance and supplementary payments excludable under section 131 of the internal revenue code), support money, cash public assistance and general relief (not including credit granted under this subchapter and amounts under s. 46.27), cash benefits paid by counties under s. 59.07 (154), the gross amount of any pension or annuity (including railroad retirement benefits, all payments received under the federal social security act and veterans disability pensions), nontaxable interest received from the federal government or any of its instrumentalities, nontaxable interest received on state or municipal bonds, worker's compensation, unemployment compensation, the gross amount of "loss of time" insurance, compensation and other cash benefits received from the United States for past or present service in the armed forces, scholarship and fellowship gifts or income, capital gains, gain on the sale of a personal residence excluded under section 121 of the internal revenue code, dividends, income of a nonresident or part-year resident who is married to a full-year resident, housing allowances provided to members of the clergy, the amount by which a resident manager's rent is reduced, nontaxable income of an American Indian, nontaxable income from sources outside this state and nontaxable deferred compensation. Intangible drilling costs, depletion allowances and depreciation, including first-year depreciation allowances under section 179 of the internal revenue code, amortization, contributions to individual retirement accounts under section 219 of the internal revenue code, contributions to Keogh plans, net operating loss carry-forwards and capital loss carry-forwards deducted in determining Wisconsin adjusted gross income shall be added to "income". "Income" does not include gifts from natural persons, cash reimbursement payments made under title XX of the federal social security act, surplus food or other relief in kind supplied by a governmental agency, the gain on the sale of a personal residence deferred under section 1034 of the internal revenue code or nonrecognized gain from involuntary conversions under section 1033 of the internal revenue code. Amounts not included in adjusted gross income but added to "income" under this subsection in a previous year and repaid may be subtracted from income for the year during which they are repaid. A marital property agreement or unilateral statement under ch. 766 has no effect in computing "income" for a person whose homestead is not the same as the homestead of that person's spouse.

AB150-engrossed, s. 3414 Section 3414. 71.54 (2) (a) (intro.) of the statutes is amended to read:

AB150-engrossed,1178,14 71.54 (2) (a) (intro.) Property taxes accrued or rent constituting property taxes accrued shall be reduced by one-twelfth for each month or portion of a month for which the claimant received general relief from any municipality or county under s. 59.07 (154) equal to or in excess of $400, or received assistance under s. 49.19, except assistance received:

AB150-engrossed, s. 3414m Section 3414m. 71.55 (1) of the statutes is amended to read:

AB150-engrossed,1178,19 71.55 (1) Application of credit against any liability. The amount of any claim otherwise payable under this subchapter may be applied by the department of revenue against any amount certified to the department under s. 71.93 or 71.935 or may be credited under s. 71.80 (3) or (3m).

AB150-engrossed, s. 3415r Section 3415r. 71.61 (1) of the statutes is amended to read:

AB150-engrossed,1178,24 71.61 (1) Department may apply credit against any tax liability. The amount of any claim otherwise payable under this subchapter may be applied by the department against any amount certified to the department under s. 71.93 or 71.935 or may be credited under s. 71.80 (3) or (3m).

AB150-engrossed, s. 3417m Section 3417m. 71.67 (4) (a) of the statutes is amended to read:

AB150-engrossed,1179,6 71.67 (4) (a) The administrator of the lottery division in the gaming commission department under ch. 565 shall withhold from any lottery prize of $2,000 or more an amount determined by multiplying the amount of the prize by the highest rate applicable to individuals under s. 71.06 (1). The administrator shall deposit the amounts withheld, on a monthly basis, as would an employer depositing under s. 71.65 (3) (a).

AB150-engrossed, s. 3419 Section 3419. 71.67 (6) of the statutes is created to read:

AB150-engrossed,1179,9 71.67 (6) Withholding registration; fee. Each employer who is required to withhold under this chapter shall obtain a valid certificate under s. 73.03 (50).

AB150-engrossed, s. 3419m Section 3419m. 71.75 (1) of the statutes is amended to read:

AB150-engrossed,1179,15 71.75 (1) Except as provided in ss. 46.255, 71.77 (5) and (7) (b) and 71.93 and 71.935, the provisions for refunds and credits provided in this section shall be the only method for the filing and review of claims for refund of income and surtaxes, and no person may bring any action or proceeding for the recovery of such taxes other than as provided in this section.

AB150-engrossed, s. 3419p Section 3419p. 71.75 (1) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

AB150-engrossed,1179,22 71.75 (1) Except as provided in ss. 46.255, 71.77 (5) and (7) (b) and, 71.935, and 73.255 the provisions for refunds and credits provided in this section shall be the only method for the filing and review of claims for refund of income and surtaxes, and no person may bring any action or proceeding for the recovery of such taxes other than as provided in this section.

AB150-engrossed, s. 3420m Section 3420m. 71.75 (9) of the statutes is amended to read:

AB150-engrossed,1179,25 71.75 (9) All refunds under this chapter are subject to attachment under ss. 46.255 and, 71.93 and 71.935.

AB150-engrossed, s. 3420p Section 3420p. 71.75 (9) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

AB150-engrossed,1180,4 71.75 (9) All refunds under this chapter are subject to attachment under ss. 46.255, 71.93 and, 71.935 and 73.255.

AB150-engrossed, s. 3420v Section 3420v. 71.78 (4) (g) of the statutes is amended to read:

AB150-engrossed,1180,10 71.78 (4) (g) Employes of this state, to the extent that the department of revenue deems the examination necessary for the employes to perform their duties under contracts or agreements between the department and any other department, division, bureau, board or commission of this state relating to the administration of tax laws or child and spousal support enforcement under s. 46.25 73.25.

AB150-engrossed, s. 3420x Section 3420x. 71.78 (4) (L) of the statutes is amended to read:

AB150-engrossed,1180,14 71.78 (4) (L) The administrator of the lottery division in the gaming commission department for the purpose of withholding lottery winnings under s. 565.30 (5).

AB150-engrossed, s. 3422 Section 3422. 71.78 (4) (n) of the statutes is created to read:

AB150-engrossed,1180,17 71.78 (4) (n) The state public defender for the purpose of seeking payment for legal representation by the state public defender.

AB150-engrossed, s. 3422m Section 3422m. 71.78 (4) (o) of the statutes is created to read:

AB150-engrossed,1180,22 71.78 (4) (o) The department of regulation and licensing or an examining board or affiliated credentialing board attached to the department of regulation and licensing for the purpose of determining under s. 440.08 (2r) whether an applicant for renewal of a credential is liable for any delinquent taxes owed to this state.

AB150-engrossed, s. 3423 Section 3423. 71.78 (5) of the statutes is amended to read:

AB150-engrossed,1181,3 71.78 (5) Agreement with department. Copies of returns and claims specified in sub. (1) and related schedules, exhibits, writings or audit reports shall not be furnished to the persons listed under sub. (4), except persons under sub. (4) (e) and, (k) , (n) and (o) or under an agreement between the department of revenue and another agency of government.

AB150-engrossed, s. 3423g Section 3423g. 71.78 (9) of the statutes is amended to read:

AB150-engrossed,1181,8 71.78 (9) (title) Disclosure of debtor address to state agency. The department of revenue may supply the address of a debtor to an agency certifying a debt of that debtor under s. 71.93 or to a municipality or county certifying a debt of a debtor under s. 71.935.

AB150-engrossed, s. 3423mn Section 3423mn. 71.80 (3) of the statutes is amended to read:

AB150-engrossed,1181,23 71.80 (3) Crediting of overpayments on individual or separate returns. In the case of any overpayment, refundable credit or refund on an individual or separate return, the department of revenue, within the applicable period of limitations, may credit the amount of overpayment, refundable credit or refund including any interest allowed, against any liability in respect to any tax collected by the department, a debt under s. 71.93 or 71.935 or a certification under s. 46.255 on the part of the person who made the overpayment or received the refundable credit or the refund and shall refund any balance to the person. The department shall presume that the overpayment, refundable credit or refund is nonmarital property of the filer. Within 2 years after the crediting, the spouse or former spouse of the person filing the return may file a claim for a refund of amounts credited by the department if the spouse or former spouse shows by clear and convincing evidence that all or part of the state tax overpayment, refundable credit or refund was nonmarital property of the nonobligated spouse.

AB150-engrossed, s. 3423mp Section 3423mp. 71.80 (3) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

AB150-engrossed,1182,14 71.80 (3) Crediting of overpayments on individual or separate returns. In the case of any overpayment, refundable credit or refund on an individual or separate return, the department of revenue, within the applicable period of limitations, may credit the amount of overpayment, refundable credit or refund including any interest allowed, against any liability in respect to any tax collected by the department, a debt under s. 71.93 or 71.935 or a certification under s. 46.255 73.255 on the part of the person who made the overpayment or received the refundable credit or the refund and shall refund any balance to the person. The department shall presume that the overpayment, refundable credit or refund is nonmarital property of the filer. Within 2 years after the crediting, the spouse or former spouse of the person filing the return may file a claim for a refund of amounts credited by the department if the spouse or former spouse shows by clear and convincing evidence that all or part of the state tax overpayment, refundable credit or refund was nonmarital property of the nonobligated spouse.

AB150-engrossed, s. 3423s Section 3423s. 71.80 (3m) (a) of the statutes is amended to read:

AB150-engrossed,1182,21 71.80 (3m) (a) Against any liability of either spouse or both spouses in respect to an amount owed the department, a certification under s. 46.255 that is subject to s. 766.55 (2) (b) or a debt under s. 71.93 or 71.935 that is subject to s. 766.55 (2) (b) and that was incurred during marriage by a spouse after December 31, 1985, or after both spouses are domiciled in this state, whichever is later, except as provided in s. 71.10 (6) (a) and (b) and (6m).

AB150-engrossed, s. 3423sc Section 3423sc. 71.80 (3m) (a) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

AB150-engrossed,1183,4 71.80 (3m) (a) Against any liability of either spouse or both spouses in respect to an amount owed the department, a certification under s. 46.255 73.255 that is subject to s. 766.55 (2) (b) or a debt under s. 71.93 or 71.935 that is subject to s. 766.55 (2) (b) and that was incurred during marriage by a spouse after December 31, 1985, or after both spouses are domiciled in this state, whichever is later, except as provided in s. 71.10 (6) (a) and (b) and (6m).

AB150-engrossed, s. 3423t Section 3423t. 71.80 (3m) (b) 2. of the statutes is amended to read:

AB150-engrossed,1183,7 71.80 (3m) (b) 2. In respect to a debt under s. 71.93 or 71.935 or a certification under s. 46.255 if that debt or certification is not subject to s. 766.55 (2) (b).

AB150-engrossed, s. 3423tm Section 3423tm. 71.80 (3m) (b) 2. of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

AB150-engrossed,1183,11 71.80 (3m) (b) 2. In respect to a debt under s. 71.93 or 71.935 or a certification under s. 46.255 73.255 if that debt or certification is not subject to s. 766.55 (2) (b).