SB77-SSA1,959,194
71.01
(6) (L) For taxable years that begin after December 31, 1996, for natural
5persons and fiduciaries, except fiduciaries of nuclear decommissioning trust or
6reserve funds, "internal revenue code" means the federal internal revenue code as
7amended to December 31, 1996, excluding sections 103, 104 and 110 of P.L.
102-227,
8sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66 and sections
91123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L.
104-188, and as indirectly
10affected by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
11101-179, P.L.
101-239, P.L.
101-280, P.L.
101-508, P.L.
102-90, P.L.
102-227,
12excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
13103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
14103-66, P.L.
103-296, P.L.
103-337, P.L.
103-465, P.L.
104-7, P.L.
104-117, P.L.
15104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L.
16104-188, P.L.
104-191 and P.L.
104-193. The internal revenue code applies for
17Wisconsin purposes at the same time as for federal purposes. Amendments to the
18federal internal revenue code enacted after December 31, 1996, do not apply to this
19paragraph with respect to taxable years beginning after December 31, 1996.
SB77-SSA1,960,321
71.01
(7r) Notwithstanding sub. (6), for purposes of computing amortization
22or depreciation, "internal revenue code" means either the federal internal revenue
23code as amended to December 31,
1995 1996, or the federal internal revenue code in
24effect for the taxable year for which the return is filed, except that property that,
25under s. 71.02 (2) (d) 12., 1985 stats., is required to be depreciated for taxable year
11986 under the internal revenue code as amended to December 31,
1980, shall
2continue to be depreciated under the internal revenue code as amended to
3December 31, 1980.
SB77-SSA1,960,85
71.01
(8r) "Pay", in regard to submissions to or for the department, means mail
6or deliver funds to the department or, if the department prescribes another method
7of submitting or another destination, use that other method or submit to that other
8destination.
SB77-SSA1,960,1110
71.01
(9c) "Sign" means write one's signature or, if the department prescribes
11another method of authenticating, use that other method.
SB77-SSA1,961,914
71.02
(1) For the purpose of raising revenue for the state and the counties,
15cities, villages and towns, there shall be assessed, levied, collected and paid a tax on
16all net incomes of individuals and fiduciaries, except fiduciaries of nuclear
17decommissioning trust or reserve funds subject to the tax under s. 71.23 (2), by every
18natural person residing within the state or by his or her personal representative in
19case of death, and trusts administered within the state; by every nonresident natural
20person and trust of this state, upon such income as is derived from property located
21or business transacted within the state including, but not limited by enumeration,
22income derived from a limited partner's distributive share of partnership income,
23income derived from a limited liability company member's distributive share of
24limited liability company income, the state lottery under ch. 565, any
multistate 25multijurisdictional lottery under ch. 565 if the winning lottery ticket or lottery share
1was purchased from a retailer, as defined in s. 565.01 (6), located in this state or from
2the department and pari-mutuel wager winnings or purses under ch. 562, and also
3by every nonresident natural person upon such income as is derived from the
4performance of personal services within the state, except as exempted under s. 71.05
5(1) to (3). Every natural person domiciled in the state shall be deemed to be residing
6within the state for the purposes of determining liability for income taxes and
7surtaxes.
A single-owner entity that is disregarded as a separate entity under
8section 7701 of the Internal Revenue Code is disregarded as a separate entity under
9this chapter, and its owner is subject to the tax on the entity's income.
SB77-SSA1,962,1211
71.04
(1) (a) All income or loss of resident individuals and resident estates and
12trusts shall follow the residence of the individual, estate or trust. Income or loss of
13nonresident individuals and nonresident estates and trusts from business, not
14requiring apportionment under sub. (4), (10) or (11), shall follow the situs of the
15business from which derived. All items of income, loss and deductions of nonresident
16individuals and nonresident estates and trusts derived from a tax-option
17corporation not requiring apportionment under sub. (9) shall follow the situs of the
18business of the corporation from which derived. Income or loss of nonresident
19individuals and nonresident estates and trusts derived from rentals and royalties
20from real estate or tangible personal property, or from the operation of any farm,
21mine or quarry, or from the sale of real property or tangible personal property shall
22follow the situs of the property from which derived. Income from personal services
23of nonresident individuals, including income from professions, shall follow the situs
24of the services. A nonresident limited partner's distributive share of partnership
25income shall follow the situs of the business. A nonresident limited liability company
1member's distributive share of limited liability company income shall follow the situs
2of the business. Income of nonresident individuals, estates and trusts from the state
3lottery under ch. 565 is taxable by this state. Income of nonresident individuals,
4estates and trusts from any
multistate multijurisdictional lottery under ch. 565 is
5taxable by this state, but only if the winning lottery ticket or lottery share was
6purchased from a retailer, as defined in s. 565.01 (6), located in this state or from the
7department. Income of nonresident individuals, nonresident trusts and nonresident
8estates from pari-mutuel winnings or purses under ch. 562 is taxable by this state.
9All other income or loss of nonresident individuals and nonresident estates and
10trusts, including income or loss derived from land contracts, mortgages, stocks,
11bonds and securities or from the sale of similar intangible personal property, shall
12follow the residence of such persons, except as provided in par. (b) and sub. (9).
SB77-SSA1,962,1514
71.05
(6) Modifications and transitional adjustments. (intro.) Some of the
15modifications referred to in s. 71.01 (13)
, and (14)
and (15) are:
SB77-SSA1,962,2117
71.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
18(2di), (2dj), (2dL), (2dr)
and, (2ds)
, (2dx) and (3s) and not passed through by a
19partnership, limited liability company or tax-option corporation that has added that
20amount to the partnership's, company's or tax-option corporation's income under s.
2171.21 (4) or 71.34 (1) (g).
SB77-SSA1,963,8
171.05
(6) (b) 25. All gains that are not excluded from taxation under subd. 9.,
2on business assets or on assets used in farming, including shares in a corporation or
3trust that meets the standards under s. 182.001 (1), or both, held more than one year,
4that are sold or otherwise disposed of to persons who are related to the seller or
5transferor by blood, marriage or adoption within the 3rd degree of kinship as that
6term is used in s. 852.03 (2), as computed under the Internal Revenue Code, not
7including amounts treated as ordinary income for federal income tax purposes
8because of the recapture of depreciation or any other reason.
SB77-SSA1,963,1210
71.05
(6) (b) 26. For taxable years beginning on or after January 1, 1998, an
11amount paid by a person for a long-term care insurance policy for the person and his
12or her spouse, calculated as follows:
SB77-SSA1,963,2113
a. One hundred percent of the amount paid by the person for a long-term care
14insurance policy. In this subdivision, "long-term care insurance policy" means a
15disability insurance policy or certificate advertised, marketed, offered or designed
16primarily to provide coverage for care that is provided in the insured person's home
17or in institutional and community-based settings and that is convalescent or
18custodial care or care for a chronic condition or terminal illness; the term does not
19include a medicare supplement policy or medicare replacement policy or a continuing
20care contract, as defined in s. 647.01 (2). "Long-term care insurance policy" applies
21to a policy that covers the person and his or her spouse.
SB77-SSA1,963,2422
b. From the amount calculated under subd. 26. a., subtract the amounts
23deducted from gross income for a long-term care insurance policy in the calculation
24of federal adjusted gross income.
SB77-SSA1,964,5
1c. For a person who is a nonresident or a part-year resident of this state, modify
2the amount calculated under subd. 26. b. by multiplying the amount by a fraction the
3numerator of which is the person's wages, unearned income and net earnings from
4a trade or business that are taxable by this state and the denominator of which is the
5person's total wages, unearned income and net earnings from a trade or business.
SB77-SSA1,964,86
d. Reduce the amount calculated under subd. 26. b. or c. to the person's
7aggregate wages, unearned income and net earnings from a trade or business that
8are taxable by this state.
SB77-SSA1,964,2210
71.06
(2s) Nonresidents and part-year residents. For taxable years
11beginning after December 31, 1996, with respect to nonresident individuals,
12including individuals changing their domicile into or from this state, the tax brackets
13under subs. (1) and (2) shall be multiplied by a fraction, the numerator of which is
14Wisconsin adjusted gross income and the denominator of which is federal adjusted
15gross income. In this subsection, for married persons filing separately "adjusted
16gross income" means the separate adjusted gross income of each spouse, and for
17married persons filing jointly "adjusted gross income" means the total adjusted gross
18income of both spouses. If an individual and that individual's spouse are not both
19domiciled in this state during the entire taxable year, the tax brackets under subs.
20(1) and (2) on a joint return shall be multiplied by a fraction, the numerator of which
21is their joint Wisconsin adjusted gross income and the denominator of which is their
22joint federal adjusted gross income.
SB77-SSA1,965,224
71.07
(2dd) (e) No credit may be claimed under this subsection for taxable
25years that begin on January 1, 1998, or thereafter. Credits under this subsection for
1taxable years that begin before January 1, 1998, may be carried forward to taxable
2years that begin on January 1, 1998, or thereafter.
SB77-SSA1,965,74
71.07
(2de) (d) No credit may be claimed under this subsection for taxable
5years that begin on January 1, 1998, or thereafter. Credits under this subsection for
6taxable years that begin before January 1, 1998, may be carried forward to taxable
7years that begin on January 1, 1998, or thereafter.
SB77-SSA1,965,129
71.07
(2di) (i) No credit may be claimed under this subsection for taxable years
10that begin on January 1, 1998, or thereafter. Credits under this subsection for
11taxable years that begin before January 1, 1998, may be carried forward to taxable
12years that begin on January 1, 1998, or thereafter.
SB77-SSA1,965,1714
71.07
(2dj) (i) No credit may be claimed under this subsection for taxable years
15that begin on January 1, 1998, or thereafter. Credits under this subsection for
16taxable years that begin before January 1, 1998, may be carried forward to taxable
17years that begin on January 1, 1998, or thereafter.
SB77-SSA1,965,2219
71.07
(2dL) (h) No credit may be claimed under this subsection for taxable
20years that begin on January 1, 1998, or thereafter. Credits under this subsection for
21taxable years that begin before January 1, 1998, may be carried forward to taxable
22years that begin on January 1, 1998, or thereafter.
SB77-SSA1,966,2124
71.07
(2dr) (a)
Credit. Any person may credit against taxes otherwise due
25under this chapter an amount equal to 5% of the amount obtained by subtracting
1from the person's qualified research expenses, as defined in section
41 of the internal
2revenue code, except that "qualified research expenses" include only expenses
3incurred by the claimant in a development zone under subch. VI of ch. 560
, except
4that a taxpayer may elect the alternative computation under section 41 (c) (4) of the
5Internal Revenue Code and that election applies until the department permits its
6revocation and except that "qualified research expenses" do not include
7compensation used in computing the credit under sub. (2dj) nor research expenses
8incurred before the claimant is certified for tax benefits under s. 560.765 (3), the
9person's base amount, as defined in section
41 (c) of the internal revenue code, in a
10development zone, except that gross receipts used in calculating the base amount
11means gross receipts from sales attributable to Wisconsin under s. 71.04 (7) (b) 1. and
122. and (d) and research expenses used in calculating the base amount include
13research expenses incurred before the claimant is certified for tax benefits under s.
14560.765 (3), in a development zone, if the claimant submits with the claimant's
15return a copy of the claimant's certification for tax benefits under s. 560.765 (3) and
16a statement from the department of commerce verifying the claimant's qualified
17research expenses for research conducted exclusively in a development zone. The
18rules under s. 73.03 (35) apply to the credit under this paragraph. The rules under
19sub. (2di) (f) and (g), as they apply to the credit under that subsection, apply to claims
20under this paragraph. Section
41 (h) of the internal revenue code does not apply to
21the credit under this paragraph.
SB77-SSA1,967,223
71.07
(2dr) (i)
Sunset. No credit may be claimed under this subsection for
24taxable years that begin on January 1, 1998, or thereafter. Credits under this
1subsection for taxable years that begin before January 1, 1998, may be carried
2forward to taxable years that begin on January 1, 1998, or thereafter.
SB77-SSA1,967,74
71.07
(2ds) (i) No credit may be claimed under this subsection for taxable years
5that begin on January 1, 1998, or thereafter. Credits under this subsection for
6taxable years that begin before January 1, 1998, may be carried forward to taxable
7years that begin on January 1, 1998, or thereafter.
SB77-SSA1,967,99
71.07
(2dx) Development zones credit. (a)
Definitions. In this subsection:
SB77-SSA1,967,1110
1. "Brownfield" means an industrial or commercial facility the expansion or
11redevelopment of which is complicated by environmental contamination.
SB77-SSA1,967,1412
2. "Development zone" means a development zone under s. 560.70, a
13development opportunity zone under s. 560.795 or an enterprise development zone
14under s. 560.797.
SB77-SSA1,967,2015
3. "Environmental remediation" means removal or containment of
16environmental pollution, as defined in s. 299.01 (4), and restoration of soil or
17groundwater that is affected by environmental pollution, as defined in s. 299.01 (4),
18in a brownfield if that removal, containment or restoration fulfills the requirement
19under sub. (2de) (a) 1. and investigation unless the investigation determines that
20remediation is required and that remediation is not undertaken.
SB77-SSA1,968,221
4. "Full-time job" means a regular, nonseasonal full-time position in which an
22individual, as a condition of employment, is required to work at least 2,080 hours per
23year, including paid leave and holidays, and for which the individual receives pay
24that is equal to at least 150% of the federal minimum wage and receives benefits that
1are not required by federal or state law. "Full-time job" does not include initial
2training before an employment position begins.
SB77-SSA1,968,113
5. "Member of a targeted group" means a person under sub. (2dj) (am) 1., a
4person who resides in an empowerment zone, or an enterprise community, that the
5U.S. government designates, a person who is employed in an unsubsidized job but
6meets the eligibility requirements under s. 49.145 (2) and (3) for a Wisconsin works
7employment position, a person who is employed in a trial job, as defined in s. 49.141
8(1) (n), a person who is eligible for the Wisconsin works health plan under s. 49.153
9or a person who is eligible for child care assistance under s. 49.155; if the person has
10been certified in the manner under sub. (2dj) (am) 3. by a designated local agency,
11as defined in sub. (2dj) (am) 2.
SB77-SSA1,968,1412
(b)
Credit. Except as provided in s. 73.03 (35) and subject to s. 560.785, for any
13taxable year for which the person is certified under s. 560.765 (3), any person may
14claim as a credit against taxes the following amounts:
SB77-SSA1,968,1615
1. Fifty percent of the amount expended for environmental remediation in a
16development zone.
SB77-SSA1,968,2017
2. The amount determined by multiplying the amount determined under s.
18560.785 (1) (b) by the number of full-time jobs created in a development zone and
19filled by a member of a targeted group and by then subtracting the subsidies paid
20under s. 49.147 (3) (a) for those jobs.
SB77-SSA1,968,2421
3. The amount determined by multiplying the amount determined under s.
22560.785 (1) (c) by the number of full-time jobs created in a development zone and not
23filled by a member of a targeted group and by then subtracting the subsidies paid
24under s. 49.147 (3) (a) for those jobs.
SB77-SSA1,969,5
14. The amount determined by multiplying the amount determined under s.
2560.785 (1) (b) by the number of full-time jobs retained, as provided in the rules
3under s. 560.785, excluding jobs for which a credit has been claimed under sub. (2dj),
4in a development zone and filled by a member of a targeted group and by then
5subtracting the subsidies paid under s. 49.147 (3) (a) for those jobs.
SB77-SSA1,969,106
5. The amount determined by multiplying the amount determined under s.
7560.785 (1) (c) by the number of full-time jobs retained, as provided in the rules
8under s. 560.785, excluding jobs for which a credit has been claimed under sub. (2dj),
9in a development zone and not filled by a member of a targeted group and by then
10subtracting the subsidies paid under s. 49.147 (3) (a) for those jobs.
SB77-SSA1,969,1611
(c)
Credit precluded. If the certification of a person for tax benefits under s.
12560.765 (3) is revoked, that person may not claim credits under this subsection for
13the taxable year that includes the day on which the certification is revoked or
14succeeding taxable years and that person may not carry over unused credits from
15previous years to offset tax under this chapter for the taxable year that includes the
16day on which certification is revoked or succeeding taxable years.
SB77-SSA1,969,2117
(d)
Carry-over precluded. If a person who is certified under s. 560.765 (3) for
18tax benefits ceases business operations in the development zone during any of the
19taxable years that that zone exists, that person may not carry over to any taxable
20year following the year during which operations cease any unused credits from the
21taxable year during which operations cease or from previous taxable years.
SB77-SSA1,970,222
(e)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
23s. 71.28 (4), applies to the credit under this subsection. Subsection (2dj) (c), as it
24applies to the credit under sub. (2dj), applies to the credit under this subsection.
1Claimants shall include with their returns a copy of their certification for tax benefits
2and a copy of the department of commerce's verification of their expenses.
SB77-SSA1,970,44
71.07
(3s) Manufacturing sales tax credit. (a) In this subsection:
SB77-SSA1,970,55
1. "Manufacturing" has the meaning given in s. 77.54 (6m).
SB77-SSA1,970,96
2. "Sales and use tax under ch. 77 paid by the person" includes use taxes paid
7directly by the person and sales and use taxes paid by the person's supplier and
8passed on to the person whether separately stated on the invoice or included in the
9total price.
SB77-SSA1,970,1810
(b) The tax imposed under s. 71.02 shall be reduced by an amount equal to the
11sales and use tax under ch. 77 paid by the person in such taxable year on fuel and
12electricity consumed in manufacturing tangible personal property in this state.
13Shareholders in a tax-option corporation and partners may claim the credit under
14this subsection, based on eligible sales and use taxes paid by the partnership or
15tax-option corporation, in proportion to the ownership interest of each partner or
16shareholder. The partnership or tax-option corporation shall calculate the amount
17of the credit which may be claimed by each partner or shareholder and shall provide
18that information to the partner or shareholder.
SB77-SSA1,971,219
(c) 1. The credit under par. (b), including any credits carried over, may be offset
20only against the amount of the tax imposed upon or measured by the business
21operations of the claimant in which the fuel and electricity are consumed. If the
22credit computed is not entirely offset against taxes otherwise due, the unused
23balance shall be carried forward and credited against taxes otherwise due for the
24following 15 taxable years to the extent not offset by taxes otherwise due in all
1intervening years between the year in which the expense was incurred and the year
2in which the carry-forward credit is claimed.
SB77-SSA1,971,53
2. For shareholders in a tax-option corporation, the credit may be offset only
4against the tax imposed on the shareholder's prorated share of the tax-option
5corporation's income.
SB77-SSA1,971,76
3. For partners, the credit may be offset only against the tax imposed on the
7partner's distributive share of partnership income.
SB77-SSA1,971,108
4. If a tax-option corporation becomes liable for tax, the corporation may offset
9the credit against the tax due, with any remaining credit passing through to the
10shareholders.
SB77-SSA1,971,1411
5. If a corporation that is not a tax-option corporation has a carry-over credit
12and becomes a tax-option corporation before the credit carried over is used, the
13unused portion of the credit may be used by the tax-option corporation's
14shareholders on a prorated basis.
SB77-SSA1,971,1915
6. If the shareholders of a tax-option corporation have carry-over credits and
16the corporation becomes a corporation other than a tax-option corporation after the
17effective date of this subdivision .... [revisor inserts date], and before the credits
18carried over are used, the unused portion of the credits may be used by the
19corporation that is not a tax-option corporation.
SB77-SSA1,972,222
71.07
(5) (a) 15. The amount claimed as a deduction for medical care insurance
23under section
213 of the
internal revenue code Internal Revenue Code that is exempt
24from taxation under s. 71.05 (6) (b) 17. to 20
. and the amount claimed as a deduction
25for a long-term care insurance policy under section 213 (d) (1) (D) of the Internal
1Revenue Code, as defined in section 7702B (b) of the Internal Revenue Code that is
2exempt from taxation under s. 71.05 (6) (b) 26.
SB77-SSA1,972,44
71.07
(5m) Working families tax credit. (a)
Definitions. In this subsection:
SB77-SSA1,972,65
1. "Claimant" means an individual who is eligible to claim the credit under this
6subsection.
SB77-SSA1,972,77
2. "Department" means the department of revenue.
SB77-SSA1,972,98
3. "Household" means a claimant and an individual related to the claimant as
9husband or wife.
SB77-SSA1,972,1110
4. "Net tax liability" means a claimant's income tax liability after he or she
11completes the computations listed in s. 71.10 (4) (a) to (dr).
SB77-SSA1,972,1412
(b)
Filing claims. Subject to the limitations provided in this subsection, a
13claimant may claim as a credit against the tax imposed under s. 71.02, up to the
14amount of those taxes, one of the following amounts:
SB77-SSA1,972,1715
1. If the claimant is single and his or her adjusted gross income is less than
16$9,000 in the year to which the claim relates, an amount equal to his or her net tax
17liability.
SB77-SSA1,972,2018
2. If the claimant is single and his or her adjusted gross income is at least $9,000
19but less than $10,000 in the year to which the claim relates, an amount that is
20calculated as follows:
SB77-SSA1,972,2321
a. Calculate the value of a fraction, the denominator of which is $1,000 and the
22numerator of which is the difference between the claimant's adjusted gross income
23and $9,000.
SB77-SSA1,972,2424
b. Subtract from 1.0 the amount that is calculated under subd. 2. a.
SB77-SSA1,973,2
1c. Multiply the amount of the claimant's net income tax liability by the amount
2that is calculated under subd. 2. b.
SB77-SSA1,973,63
3. If the claimant is married and filing jointly and the sum of the claimant's
4adjusted gross income and his or her spouse's adjusted gross income is less than
5$18,000 in the year to which the claim relates, an amount equal to the married
6couple's net tax liability.
SB77-SSA1,973,107
4. If the claimant is married and filing jointly and the sum of the claimant's
8adjusted gross income and his or her spouse's adjusted gross income is at least
9$18,000 but less than $19,000 in the year to which the claim relates, an amount that
10is calculated as follows:
SB77-SSA1,973,1311
a. Calculate the value of a fraction, the denominator of which is $1,000 and the
12numerator of which is the difference between the married couple's adjusted gross
13income and $18,000.