SECTION 1698. 71.06 (2) (d) (intro.) of the statutes is amended to read:
71.06 (2) (d) (intro.) For married persons filing separately, for taxable years beginning after December 31, 1997, and before January 1, 2000:
SECTION 1699. 71.06 (2) (e) of the statutes is created to read:
71.06 (2) (e) For joint returns, for taxable years beginning after December 31, 1999, and before January 1, 2001:
1. On all taxable income from $0 to $10,000, 4.73%.
2. On all taxable income exceeding $10,000 but not exceeding $20,000, 6.33%.
3. On all taxable income exceeding $20,000 but not exceeding $150,000, 6.55%.
4. On all taxable income exceeding $150,000, 6.75%.
SECTION 1700. 71.06 (2) (f) of the statutes is created to read:
71.06 (2) (f) For married persons filing separately, for taxable years beginning after December 31, 1999, and before January 1, 2001:
1. On all taxable income from $0 to $5,000, 4.73%.
2. On all taxable income exceeding $5,000 but not exceeding $10,000, 6.33%.
3. On all taxable income exceeding $10,000 but not exceeding $75,000, 6.55%.
4. On all taxable income exceeding $75,000, 6.75%.
SECTION 1701. 71.06 (2) (g) of the statutes is created to read:
71.06 (2) (g) For joint returns, for taxable years beginning after December 31, 2000:
1. On all taxable income from $0 to $10,000, 4.6%.
2. On all taxable income exceeding $10,000 but not exceeding $20,000, 6.15%.
3. On all taxable income exceeding $20,000 but not exceeding $150,000, 6.5%.
4. On all taxable income exceeding $150,000, 6.75%.
SECTION 1702. 71.06 (2) (h) of the statutes is created to read:
71.06 (2) (h) For married persons filing separately, for taxable years beginning after December 31, 2000:
1. On all taxable income from $0 to $5,000, 4.6%.
2. On all taxable income exceeding $5,000 but not exceeding $10,000, 6.15%.
3. On all taxable income exceeding $10,000 but not exceeding $75,000, 6.5%.
4. On all taxable income exceeding $75,000, 6.75%.
SECTION 1703. 71.06 (2e) of the statutes is amended to read:
71.06 (2e) BRACKET INDEXING. For taxable years beginning after December 31, 1998, and before January 1, 2000, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2) (c) and (d), and for taxable years beginning after December 31, 1999, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1n), (1p) and (2) (e), (f), (g) and (h), shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the year before the previous year 1997, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2000, the dollar amount in the top bracket under subs. (1p) (c) and (d), (2) (g) 3. and 4. and (h) 3. and 4. shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1999, as determined by the federal department of labor. Each amount that is revised under this subsection shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this subsection and incorporate the changes into the income tax forms and instructions.
SECTION 1704. 71.06 (2m) of the statutes is amended to read:
71.06 (2m) RATE CHANGES. If a rate under sub. (1), (1m), (1n), (1p) or (2) changes during a taxable year, the taxpayer shall compute the tax for that taxable year by the methods applicable to the federal income tax under section 15 of the internal revenue code.
SECTION 1705. 71.06 (2s) (b) of the statutes is amended to read:
71.06 (2s) (b) For taxable years beginning after December 31, 1997, and before January 1, 2000, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1m) and (2) (c) and (d) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately "adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly "adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1m) and (2) (c) and (d) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.
SECTION 1706. 71.06 (2s) (c) of the statutes is created to read:
71.06 (2s) (c) For taxable years beginning after December 31, 1999, and before January 1, 2001, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1n) and (2) (e) and (f) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately "adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly "adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1n) and (2) (e) and (f) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.
SECTION 1707. 71.06 (2s) (d) of the statutes is created to read:
71.06 (2s) (d) For taxable years beginning after December 31, 2000, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1p) and (2) (g) and (h) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately "adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly "adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1p) and (2) (g) and (h) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.
SECTION 1707t. 71.07 (2dj) (am) 1. of the statutes is amended to read:
71.07 (2dj) (am) 1. Modify "member of a targeted group", as defined in section 51 (d) of the internal revenue code as amended to December 31, 1995, to include persons unemployed as a result of a business action subject to s. 109.07 (1m) and persons specified under 29 USC 1651 (a) dislocated workers, as defined in 29 USC 2801 (9), and to require a member of a targeted group to be a resident of this state.
SECTION 1707v. 71.07 (2dj) (am) 2. of the statutes is amended to read:
71.07 (2dj) (am) 2. Modify "designated local agency", as defined in section 51 (d) (15) of the internal revenue code, to include the job training partnership act organization local workforce development board established under 29 USC 2832 for the area that includes the development zone in which the employe in respect to whom the credit under this subsection is claimed works, if the department of commerce approves the criteria used for certification, and the department of commerce.
SECTION 1708. 71.07 (2dj) (am) 3. of the statutes is amended to read:
71.07 (2dj) (am) 3. Modify the rule for certification under section 51 (d) (16) (A) of the internal revenue code to allow certification within the 90-day period beginning with the first day of employment of the employe by the claimant.
SECTION 1708g. 71.07 (2dx) (b) (intro.) of the statutes is amended to read:
71.07 (2dx) (b) Credit. (intro.) Except as provided in s. 73.03 (35) and subject to s. 560.785, for any taxable year for which the person is certified under s. 560.765 (3), any person may claim as a credit against taxes imposed on the person's income from the person's business activities in a development zone the following amounts:
SECTION 1709. 71.07 (2dx) (b) 4. of the statutes is amended to read:
71.07 (2dx) (b) 4. The amount determined by multiplying the amount determined under s. 560.785 (1) (b) (bm) by the number of full-time jobs retained, as provided in the rules under s. 560.785, excluding jobs for which a credit has been claimed under sub. (2dj), in a an enterprise development zone under s. 560.797 and filled by a member of a targeted group for which significant capital investment was made and by then subtracting the subsidies paid under s. 49.147 (3) (a) for those jobs.
SECTION 1709c. 71.07 (2dy) of the statutes is created to read:
71.07 (2dy) SUSTAINABLE URBAN DEVELOPMENT ZONE CREDIT. (a) Definitions. In this subsection:
1. "Brownfield" has the meaning given in sub. (2dx) (a) 1.
2. "Environmental remediation" means removal or containment of environmental pollution, as defined in s. 299.01 (4), and restoration of soil or groundwater that is affected by environmental pollution, as defined in s. 299.01 (4), in a brownfield and investigation unless the investigation determines that remediation is required but remediation is not undertaken.
(b) Credit. For any taxable year for which the person is certified under s. 292.77 (5), a person may claim as a credit against taxes imposed under this subchapter 50% of the amount expended for environmental remediation under the program under s. 292.77.
(c) Administration. Subsection (2dx) (c), (d) and (e), as it applies to the credit under sub. (2dx), applies to the credit under this subsection.
SECTION 1710d. 71.07 (3m) (a) 1. b. of the statutes is amended to read:
71.07 (3m) (a) 1. b. For partnerships except publicly traded partnerships treated as corporations under s. 71.22 (1) (1g), or limited liability companies, except limited liability companies treated as corporations under s. 71.22 (1) (1g), "claimant" means each individual partner or member.
SECTION 1711. 71.07 (5) (a) 7. of the statutes is created to read:
71.07 (5) (a) 7. Miscellaneous itemized deductions under the Internal Revenue Code, without regard to whether such deductions are subject to the 2% floor as described in section 67 of the Internal Revenue Code, except that the general prohibition in this subdivision does not apply to dues paid to a professional society or a labor union.
SECTION 1712. 71.07 (5) (a) 8. of the statutes is created to read:
71.07 (5) (a) 8. Any employment-related educational expense that is claimed as an itemized deduction under the Internal Revenue Code to the extent that such an amount is also claimed as a subtract modification under s. 71.05 (6) (b) 28.
SECTION 1713. 71.07 (5m) (e) of the statutes is created to read:
71.07 (5m) (e) Sunset. No new claim may be filed under this subsection for a taxable year that begins after December 31, 1999.
SECTION 1714. 71.07 (6) (am) 2. c. of the statutes is amended to read:
71.07 (6) (am) 2. c. For taxable years beginning after December 31, 1999, and before January 1, 2001, 2.75% of the earned income of the spouse with the lower earned income, but not more than $385 $440.
SECTION 1715. 71.07 (6) (am) 2. d. of the statutes is amended to read:
71.07 (6) (am) 2. d. For taxable years beginning after December 31, 2000, 3% of the earned income of the spouse with the lower earned income, but not more than $420 $480.
SECTION 1716. 71.07 (8) (d) of the statutes is created to read:
71.07 (8) (d) No new claim may be filed under this subsection for a taxable year that begins after December 31, 1999.
SECTION 1717. 71.07 (9) (g) of the statutes is created to read:
71.07 (9) (g) No new claim may be filed under this subsection for a taxable year that begins after December 31, 1999.
SECTION 1719b. 71.07 (9e) (f) of the statutes is amended to read:
71.07 (9e) (f) Except as provided in s. 71.80 (3) and (3m), if the allowable amount of the claim under this subsection exceeds the taxes otherwise due under this chapter or no taxes are due under this chapter, the amount of the claim not used to offset taxes due shall be certified by the department of revenue to the department of administration for payment by check, share draft or other draft drawn from the appropriation under s. 20.835 (2) (f) or (kf).
SECTION 1719d. 71.07 (10) of the statutes is amended to read:
71.07 (10) CREDITS NOT ALLOWED. The credits under s. 71.28 (4) and (5) may not be claimed by partners, including partners of a publicly traded partnership treated as a corporation under s. 71.22 (1) (1g), members of a limited liability company, including members of a limited liability company treated as a corporation under s. 77.22 (1) (1g), or shareholders of a tax-option corporation.
SECTION 1719g. 71.08 (1) (intro.) of the statutes is amended to read:
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), (2dr), (2ds), (2dx), (2dy), (2fd), (3m), (3s), (6) and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (1fd), (2m) and (3) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (1fd), (2m) and (3) 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:
SECTION 1719m. 71.10 (4) (gv) of the statutes is created to read:
71.10 (4) (gv) Sustainable urban development zone credit under s. 71.07 (2dy).
SECTION 1720m. 71.10 (5) (am) of the statutes is created to read:
71.10 (5) (am) Gray wolf as endangered or threatened species. For purposes of the part of the endangered resources program that provides for wildlife damage control and the payments of claims for damage associated with endangered or threatened species, the gray wolf shall be considered an endangered or threatened species regardless of whether it is listed as endangered or threatened under s. 29.604 (3).
SECTION 1721. 71.125 of the statutes is amended to read:
71.125 Imposition of tax. (1) Except as provided in sub. (2), the tax imposed by this chapter on individuals and the rates under s. 71.06 (1), (1m), (1n), (1p) and (2) shall apply to the Wisconsin taxable income of estates or trusts, except nuclear decommissioning trust or reserve funds, and that tax shall be paid by the fiduciary.
(2) Each electing small business trust, as defined in section 1361 (e) (1) of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1) or under s. 71.06, (1m), (1n) or (1p), whichever taxable year is applicable, on its income as computed under section 641 of the Internal Revenue Code, as modified by s. 71.05 (6) to (12), (19) and (20).
SECTION 1721et. 71.14 (3) (intro.) of the statutes is amended to read:
71.14 (3) (intro.) Except as provided in sub. (2) and s. 71.04 (1) (b) 2., trusts created by contract, declaration of trust or implication of law shall be considered resident at the place where the trust is being administered. The following trusts shall be considered to be administered in the state of domicile of the corporate trustee of the trust at any time that the grantor of the trust is not a resident of this state and subject to sub. (3m), only the following trusts, or portions of trusts, shall be considered resident of this state:
SECTION 1721ft. 71.14 (3) (a) of the statutes is amended to read:
71.14 (3) (a) Trusts that have any assets invested in a common trust fund, as defined in section 584 of the internal revenue code, maintained by a bank or trust company domiciled in this state that is a member of the same affiliated group, as defined in section 1504 of the internal revenue code, as the corporate trustee the assets of which consist of property placed in the trust by a person who is a resident of this state at the time the property was placed in the trust if, at the time the assets were placed in the trust, the trust was irrevocable.
SECTION 1721gt. 71.14 (3) (b) of the statutes is amended to read:
71.14 (3) (b) Trusts Irrevocable trusts, the assets of which in whole or in part are managed, or about which investment decisions are made, by a corporation domiciled in this state if that corporation and the corporate trustee are members of the same affiliated group, as defined in section 1504 of the internal revenue code consist of property placed in the trust by a person who is a resident of this state at the time that the trust became irrevocable if, at the time the property was placed in the trust, the trust was revocable.
SECTION 1721ht. 71.14 (3m) of the statutes is created to read:
71.14 (3m) A trust described under sub. (3):
