SB40, s. 1943
13Section
1943. 71.01 (6) (s) of the statutes is created to read:
SB40,884,1214
71.01
(6) (s) For taxable years that begin after December 31, 2005, and before
15January 1, 2007, for natural persons and fiduciaries, except fiduciaries of nuclear
16decommissioning trust or reserve funds, "Internal Revenue Code" means the federal
17Internal Revenue Code as amended to December 31, 2005, excluding sections 103,
18104, and 110 of P.L.
102-227, sections 13113, 13150 (d), 13171 (d), 13174, and 13203
19(d) of P.L.
103-66, sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of P.L.
20104-188, sections 1, 3, 4, and 5 of P.L.
106-519, sections 162 and 165 of P.L.
106-554,
21P.L.
106-573, section 431 of P.L.
107-16, sections 101 and 301 (a) of P.L.
107-147,
22sections 106, 201, and 202 of P.L.
108-27, section 1201 of P.L.
108-173, sections 306,
23308, 316, 401, and 403 (a) of P.L.
108-311, sections 101, 201, 211, 242, 244, 336, 337,
24422, 847, 909, and 910 of P.L.
108-357, P.L.
109-1, sections 1305, 1308, 1309, 1310,
251323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of P.L.
109-58, section 11146 of
1P.L.
109-59, section 301 of P.L.
109-73, and sections 101, 105, 201 (a) as it relates
2to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of P.L.
109-135, and as
3amended by P.L.
109-222, excluding sections 101, 207, 209, 503, 512, and 513 of P.L.
4109-222, P.L.
109-227, and P.L.
109-280, excluding sections 811 and 844 of P.L.
5109-280, and as indirectly affected by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
6101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-280, P.L.
101-508, P.L.
7102-90, P.L.
102-227, excluding sections 103, 104, and 110 of P.L.
102-227, P.L.
8102-318, P.L.
102-486, P.L.
103-66, excluding sections 13113, 13150 (d), 13171 (d),
913174, and 13203 (d) of P.L.
103-66, P.L.
103-296, P.L.
103-337, P.L.
103-465, P.L.
10104-7, P.L.
104-117, P.L.
104-188, excluding sections 1123 (b), 1202 (c), 1204 (f),
111311, and 1605 (d) of P.L.
104-188, P.L.
104-191, P.L.
104-193, P.L.
105-33, P.L.
12105-34, P.L.
105-178, P.L.
105-206, P.L.
105-277, P.L.
106-36, P.L.
106-170, P.L.
13106-230, P.L.
106-554, excluding sections 162 and 165 of P.L.
106-554, P.L.
107-15,
14P.L.
107-16, excluding section 431 of P.L.
107-16, P.L.
107-22, P.L.
107-116, P.L.
15107-134, P.L.
107-147, excluding sections 101 and 301 (a) of P.L.
107-147, P.L.
16107-181, P.L.
107-210, P.L.
107-276, P.L.
107-358, P.L.
108-27, excluding sections
17106, 201, and 202 of P.L.
108-27, P.L.
108-121, P.L.
108-173, excluding section 1201
18of P.L.
108-173, P.L.
108-203, P.L.
108-218, P.L.
108-311, excluding sections 306,
19308, 316, 401, and 403 (a) of P.L.
108-311, P.L.
108-357, excluding sections 101, 201,
20211, 242, 244, 336, 337, 422, 847, 909, and 910 of P.L.
108-357, P.L.
108-375, P.L.
21108-476, P.L.
109-7, P.L.
109-58, excluding sections 1305, 1308, 1309, 1310, 1323,
221324, 1325, 1326, 1328, 1329, 1348, and 1351 of P.L.
109-58, P.L.
109-59, excluding
23section 11146 of P.L.
109-59, P.L.
109-73, excluding section 301 of P.L.
109-73, P.L.
24109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402
25(e), 403 (e), (j), and (q), and 405 of P.L.
109-135, P.L.
109-151, P.L.
109-222, excluding
1sections 101, 207, 209, 503, 512, and 513 of P.L.
109-222, P.L.
109-227, and P.L.
2109-280, excluding sections 811 and 844 of P.L.
109-280. The Internal Revenue Code
3applies for Wisconsin purposes at the same time as for federal purposes.
4Amendments to the federal Internal Revenue Code enacted after December 31, 2005,
5do not apply to this paragraph with respect to taxable years beginning after
6December 31, 2005, and before January 1, 2007, except that changes to the Internal
7Revenue Code made by P.L.
109-222, excluding sections 101, 207, 209, 503, 512, and
8513 of P.L.
109-222, P.L.
109-227, and P.L.
109-280, excluding sections 811 and 844
9of P.L.
109-280, and changes that indirectly affect the provisions applicable to this
10subchapter made by P.L.
109-222, excluding sections 101, 207, 209, 503, 512, and 513
11of P.L.
109-222, P.L.
109-227, and P.L.
109-280, excluding sections 811 and 844 of
12P.L.
109-280, apply for Wisconsin purposes at the same time as for federal purposes.
SB40, s. 1944
13Section
1944. 71.01 (6) (t) of the statutes is created to read:
SB40,886,414
71.01
(6) (t) For taxable years that begin after December 31, 2006, for natural
15persons and fiduciaries, except fiduciaries of nuclear decommissioning trust or
16reserve funds, "Internal Revenue Code" means the federal Internal Revenue Code
17as amended to December 31, 2006, excluding sections 103, 104, and 110 of P.L.
18102-227, sections 13113, 13150 (d), 13171 (d), 13174, and 13203 (d) of P.L.
103-66,
19sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of P.L.
104-188, sections 1, 3,
204, and 5 of P.L.
106-519, sections 162 and 165 of P.L.
106-554, P.L.
106-573, section
21431 of P.L.
107-16, sections 101 and 301 (a) of P.L.
107-147, sections 106, 201, and
22202 of P.L.
108-27, section 1201 of P.L.
108-173, sections 306, 308, 316, 401, and 403
23(a) of P.L.
108-311, sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910
24of P.L.
108-357, P.L.
109-1, sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326,
251328, 1329, 1348, and 1351 of P.L.
109-58, section 11146 of P.L.
109-59, section 301
1of P.L.
109-73, sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403
2(e), (j), and (q), and 405 of P.L.
109-135, sections 101, 207, 209, 503, 512, and 513 of
3P.L.
109-222, sections 811 and 844 of P.L.
109-280, and P.L.
109-432, and as
4indirectly affected by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
5101-140, P.L.
101-179, P.L.
101-239, P.L.
101-280, P.L.
101-508, P.L.
102-90, P.L.
6102-227, excluding sections 103, 104, and 110 of P.L.
102-227, P.L.
102-318, P.L.
7102-486, P.L.
103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, and
813203 (d) of P.L.
103-66, P.L.
103-296, P.L.
103-337, P.L.
103-465, P.L.
104-7, P.L.
9104-117, P.L.
104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605
10(d) of P.L.
104-188, P.L.
104-191, P.L.
104-193, P.L.
105-33, P.L.
105-34, P.L.
11105-178, P.L.
105-206, P.L.
105-277, P.L.
106-36, P.L.
106-170, P.L.
106-230, P.L.
12106-554, excluding sections 162 and 165 of P.L.
106-554, P.L.
107-15, P.L.
107-16,
13excluding section 431 of P.L.
107-16, P.L.
107-22, P.L.
107-116, P.L.
107-134, P.L.
14107-147, excluding sections 101 and 301 (a) of P.L.
107-147, P.L.
107-181, P.L.
15107-210, P.L.
107-276, P.L.
107-358, P.L.
108-27, excluding sections 106, 201, and
16202 of P.L.
108-27, P.L.
108-121, P.L.
108-173, excluding section 1201 of P.L.
17108-173, P.L.
108-203, P.L.
108-218, P.L.
108-311, excluding sections 306, 308, 316,
18401, and 403 (a) of P.L.
108-311, P.L.
108-357, excluding sections 101, 201, 211, 242,
19244, 336, 337, 422, 847, 909, and 910 of P.L.
108-357, P.L.
108-375, P.L.
108-476, P.L.
20109-7, P.L.
109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325,
211326, 1328, 1329, 1348, and 1351 of P.L.
109-58, P.L.
109-59, excluding section 11146
22of P.L.
109-59, P.L.
109-73, excluding section 301 of P.L.
109-73, P.L.
109-135,
23excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e),
24(j), and (q), and 405 of P.L.
109-135, P.L.
109-151, P.L.
109-222, excluding sections
25101, 207, 209, 503, 512, and 513 of P.L.
109-222, P.L.
109-227, and P.L.
109-280,
1excluding sections 811 and 844 of P.L.
109-280. The Internal Revenue Code applies
2for Wisconsin purposes at the same time as for federal purposes. Amendments to the
3federal Internal Revenue Code enacted after December 31, 2006, do not apply to this
4paragraph with respect to taxable years beginning after December 31, 2006.
SB40, s. 1945
5Section
1945. 71.01 (7r) (c) of the statutes is created to read:
SB40,886,126
71.01
(7r) (c) Notwithstanding sub. (6), section 101 of P.L.
109-222, related to
7extending the increased expense deduction under section
179 of the Internal
8Revenue Code, applies to property used in farming that is acquired and placed in
9service in taxable years beginning on or after January 1, 2008, and used by a person
10who is actively engaged in farming. For purposes of this paragraph, "actively
11engaged in farming" has the meaning given in
7 CFR 1400.201, and "farming" has
12the meaning given in section
464 (e) (1) of the Internal Revenue Code.
SB40, s. 1946
13Section
1946. 71.02 (1) of the statutes is amended to read:
SB40,887,1214
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 resident 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,
income derived from a covenant not to compete to
25the extent that the covenant was based on a Wisconsin-based activity, the state
1lottery under ch. 565, any multijurisdictional lottery under ch. 565 if the winning
2lottery ticket or lottery share was purchased from a retailer, as defined in s. 565.01
3(6), located in this state or from the department, winnings from a casino or bingo hall
4that is located in this state and that is operated by a Native American tribe or band
5and pari-mutuel wager winnings or purses under ch. 562, and also by every
6nonresident natural person upon such income as is derived from the performance of
7personal services within the state, except as exempted under s. 71.05 (1) to (3). Every
8natural person domiciled in the state shall be deemed to be residing within the state
9for the purposes of determining liability for income taxes and surtaxes. A
10single-owner entity that is disregarded as a separate entity under section
7701 of the
11Internal Revenue Code is disregarded as a separate entity under this chapter, and
12its owner is subject to the tax on the entity's income.
SB40, s. 1947
13Section
1947. 71.04 (1) (a) of the statutes is amended to read:
SB40,889,814
71.04
(1) (a) All income or loss of resident individuals and resident estates and
15trusts shall follow the residence of the individual, estate or trust. Income or loss of
16nonresident individuals and nonresident estates and trusts from business, not
17requiring apportionment under sub. (4), (10) or (11), shall follow the situs of the
18business from which derived, except that all income that is realized from the sale of
19or purchase and subsequent sale or redemption of lottery prizes if the winning tickets
20were originally bought in this state shall be allocated to this state. All items of
21income, loss and deductions of nonresident individuals and nonresident estates and
22trusts derived from a tax-option corporation not requiring apportionment under
23sub. (9) shall follow the situs of the business of the corporation from which derived,
24except that all income that is realized from the sale of or purchase and subsequent
25sale or redemption of lottery prizes if the winning tickets were originally bought in
1this state shall be allocated to this state. Income or loss of nonresident individuals
2and nonresident estates and trusts derived from rentals and royalties from real
3estate or tangible personal property, or from the operation of any farm, mine or
4quarry, or from the sale of real property or tangible personal property shall follow the
5situs of the property from which derived. Income from personal services of
6nonresident individuals, including income from professions, shall follow the situs of
7the services. A nonresident limited partner's distributive share of partnership
8income shall follow the situs of the business, except that all income that is realized
9from the sale of or purchase and subsequent sale or redemption of lottery prizes if
10the winning tickets were originally bought in this state shall be allocated to this
11state. A nonresident limited liability company member's distributive share of
12limited liability company income shall follow the situs of the business, except that
13all income that is realized from the sale of or purchase and subsequent sale or
14redemption of lottery prizes if the winning tickets were originally bought in this state
15shall be allocated to this state. Income of nonresident individuals, estates and trusts
16from the state lottery under ch. 565 is taxable by this state. Income of nonresident
17individuals, estates and trusts from any multijurisdictional lottery under ch. 565 is
18taxable by this state, but only if the winning lottery ticket or lottery share was
19purchased from a retailer, as defined in s. 565.01 (6), located in this state or from the
20department. Income of nonresident individuals, nonresident trusts and nonresident
21estates from pari-mutuel winnings or purses under ch. 562 is taxable by this state.
22Income of nonresident individuals, estates and trusts from winnings from a casino
23or bingo hall that is located in this state and that is operated by a Native American
24tribe or band shall follow the situs of the casino or bingo hall.
Income derived by a
25nonresident individual from a covenant not to compete is taxable by this state to the
1extent that the covenant was based on a Wisconsin-based activity. All other income
2or loss of nonresident individuals and nonresident estates and trusts, including
3income or loss derived from land contracts, mortgages, stocks, bonds and securities
4or from the sale of similar intangible personal property, shall follow the residence of
5such persons, except as provided in par. (b) and sub. (9), except that all income that
6is realized from the sale of or purchase and subsequent sale or redemption of lottery
7prizes if the winning tickets were originally bought in this state shall be allocated
8to this state.
SB40, s. 1948
9Section
1948. 71.05 (6) (a) 15. of the statutes is amended to read:
SB40,889,1510
71.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
11(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3n),
(3p), (3s), (3t), (3w),
(5b), (5d),
12and (5e), (5f),
and (5h)
, (5i), and (5j) and not passed through by a partnership, limited
13liability company, or tax-option corporation that has added that amount to the
14partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or
1571.34 (1) (g).
SB40, s. 1949
16Section
1949. 71.05 (6) (a) 21. of the statutes is created to read:
SB40,889,2117
71.05
(6) (a) 21. Any amount deducted as income attributable to domestic
18production activities under section
199 of the Internal Revenue Code if the
19individual claiming the deduction is a nonresident or part-year resident of this state
20and if the domestic production activities income is not attributable to a trade or
21business that is taxable by this state.
SB40, s. 1950
22Section
1950. 71.05 (6) (a) 22. of the statutes is created to read:
SB40,890,623
71.05
(6) (a) 22. If an individual is a nonresident or part-year resident of this
24state and a portion of the amount the individual deducted as income attributable to
25domestic production activities under section
199 of the Internal Revenue Code is
1attributable to a trade or business that is taxable by this state, the amount deducted
2under section 199 for federal income tax purposes and in excess of that amount,
3multiplied by a fraction, the numerator of which is the individual's net earnings from
4the trade or business that is taxable by this state and the denominator of which is
5the individual's total net earnings from the trade or business to which the deduction
6under section
199 of the Internal Revenue Code applies.
SB40, s. 1951
7Section
1951. 71.05 (6) (a) 23. of the statutes is created to read:
SB40,890,128
71.05
(6) (a) 23. Any amount deducted by an individual under section
62 (a) (19)
9of the Internal Revenue Code related to attorney fees or court costs, involving an
10unlawful discrimination claim, if the individual is a nonresident or part-year
11resident of this state and if the judgment or settlement resulting from the claim is
12not taxable by this state.
SB40, s. 1952
13Section
1952. 71.05 (6) (b) 28. (intro.) of the statutes is amended to read:
SB40,890,2014
71.05
(6) (b) 28. (intro.) An amount paid by a claimant for tuition expenses
and
15mandatory student fees for a student who is the claimant or who is the claimant's
16child and the claimant's dependent who is claimed under section
151 (c) of the
17Internal Revenue Code, to attend any university, college, technical college or a school
18approved under s. 38.50, that is located in Wisconsin or to attend a public vocational
19school or public institution of higher education in Minnesota under the
20Minnesota-Wisconsin reciprocity agreement under s. 39.47, calculated as follows:
SB40, s. 1953
21Section
1953. 71.05 (6) (b) 28. a. of the statutes is amended to read:
SB40,891,322
71.05
(6) (b) 28. a. An amount equal to
one of the following per student for each
23year to which the claim relates: for taxable years beginning before January 1, 2007, 24not more than twice the average amount charged by the board of regents of the
25University of Wisconsin System at 4-year institutions for resident undergraduate
1academic fees for the most recent fall semester, as determined by the board of regents
2by September 1 of that semester
, per student for each year to which the claim relates;
3for taxable years beginning after December 31, 2006, $6,000.
SB40, s. 1954
4Section
1954. 71.05 (6) (b) 28. h. of the statutes is amended to read:
SB40,891,105
71.05
(6) (b) 28. h. No modification may be claimed under this subdivision for
6an amount paid for tuition expenses
and mandatory student fees, as described under
7this subdivision, if the source of the payment is an amount withdrawn from a college
8savings account, as described in s. 14.64 or from a college tuition and expenses
9program, as described in s. 14.63, and if the
claimant
owner of the account has
10claimed a deduction under subd. 32. or 33. that relates to such an amount.
SB40, s. 1955
11Section
1955. 71.05 (6) (b) 39. of the statutes is created to read:
SB40,891,1612
71.05
(6) (b) 39. For taxable years beginning after December 31, 2007, and
13before January 1, 2009, an amount paid by an individual who is the employee of
14another person, if the individual's employer pays a portion of the cost of the
15individual's medical care insurance, for medical care insurance for the individual, his
16or her spouse, and the individual's dependents, calculated as follows:
SB40,891,2417
a. Ten percent of the amount paid by the individual for medical care insurance.
18In this subdivision, "medical care insurance" means a medical care insurance policy
19that covers the individual, his or her spouse, and the individual's dependents and
20provides surgical, medical, hospital, major medical, or other health service coverage,
21and includes payments made for medical care benefits under a self-insured plan, but
22"medical care insurance" does not include hospital indemnity policies or policies with
23ancillary benefits such as accident benefits or benefits for loss of income resulting
24from a total or partial inability to work because of illness, sickness, or injury.
SB40,892,3
1b. From the amount calculated under subd. 39. a., subtract the amounts
2deducted from gross income for medical care insurance in the calculation of federal
3adjusted gross income.
SB40,892,154
c. For an individual who is a nonresident or part-year resident of this state,
5multiply the amount calculated under subd. 39. a. or b., by a fraction the numerator
6of which is the individual's wages, salary, tips, unearned income, and net earnings
7from a trade or business that are taxable by this state and the denominator of which
8is the individual's total wages, salary, tips, unearned income, and net earnings from
9a trade or business. In this subd. 39. c., for married persons filing separately "wages,
10salary, tips, unearned income, and net earnings from a trade or business" means the
11separate wages, salary, tips, unearned income, and net earnings from a trade or
12business of each spouse, and for married persons filing jointly "wages, salary, tips,
13unearned income, and net earnings from a trade or business" means the total wages,
14salary, tips, unearned income, and net earnings from a trade or business of both
15spouses.
SB40,892,1816
d. Reduce the amount calculated under subd. 39. a., b., or c. to the individual's
17aggregate wages, salary, tips, unearned income, and net earnings from a trade or
18business that are taxable by this state.
SB40, s. 1956
19Section
1956. 71.05 (6) (b) 40. of the statutes is created to read:
SB40,892,2420
71.05
(6) (b) 40. For taxable years beginning after December 31, 2008, and
21before January 1, 2010, an amount paid by an individual who is the employee of
22another person, if the individual's employer pays a portion of the cost of the
23individual's medical care insurance, for medical care insurance for the individual, his
24or her spouse, and the individual's dependents, calculated as follows:
SB40,893,9
1a. Twenty-five percent of the amount paid by the individual for medical care
2insurance. In this subdivision, "medical care insurance" means a medical care
3insurance policy that covers the individual, his or her spouse, and the individual's
4dependents and provides surgical, medical, hospital, major medical, or other health
5service coverage, and includes payments made for medical care benefits under a
6self-insured plan, but "medical care insurance" does not include hospital indemnity
7policies or policies with ancillary benefits such as accident benefits or benefits for loss
8of income resulting from a total or partial inability to work because of illness,
9sickness, or injury.
SB40,893,1210
b. From the amount calculated under subd. 40. a., subtract the amounts
11deducted from gross income for medical care insurance in the calculation of federal
12adjusted gross income.
SB40,893,2413
c. For an individual who is a nonresident or part-year resident of this state,
14multiply the amount calculated under subd. 40. a. or b., by a fraction the numerator
15of which is the individual's wages, salary, tips, unearned income, and net earnings
16from a trade or business that are taxable by this state and the denominator of which
17is the individual's total wages, salary, tips, unearned income, and net earnings from
18a trade or business. In this subd. 40. c., for married persons filing separately "wages,
19salary, tips, unearned income, and net earnings from a trade or business" means the
20separate wages, salary, tips, unearned income, and net earnings from a trade or
21business of each spouse, and for married persons filing jointly "wages, salary, tips,
22unearned income, and net earnings from a trade or business" means the total wages,
23salary, tips, unearned income, and net earnings from a trade or business of both
24spouses.
SB40,894,3
1d. Reduce the amount calculated under subd. 40. a., b., or c. to the individual's
2aggregate wages, salary, tips, unearned income, and net earnings from a trade or
3business that are taxable by this state.
SB40, s. 1957
4Section
1957. 71.05 (6) (b) 41. of the statutes is created to read:
SB40,894,95
71.05
(6) (b) 41. For taxable years beginning after December 31, 2009, and
6before January 1, 2011, an amount paid by an individual who is the employee of
7another person, if the individual's employer pays a portion of the cost of the
8individual's medical care insurance, for medical care insurance for the individual, his
9or her spouse, and the individual's dependents, calculated as follows:
SB40,894,1810
a. Forty-five percent of the amount paid by the individual for medical care
11insurance. In this subdivision, "medical care insurance" means a medical care
12insurance policy that covers the individual, his or her spouse, and the individual's
13dependents and provides surgical, medical, hospital, major medical, or other health
14service coverage, and includes payments made for medical care benefits under a
15self-insured plan, but "medical care insurance" does not include hospital indemnity
16policies or policies with ancillary benefits such as accident benefits or benefits for loss
17of income resulting from a total or partial inability to work because of illness,
18sickness, or injury.
SB40,894,2119
b. From the amount calculated under subd. 41. a., subtract the amounts
20deducted from gross income for medical care insurance in the calculation of federal
21adjusted gross income.
SB40,895,822
c. For an individual who is a nonresident or part-year resident of this state,
23multiply the amount calculated under subd. 41. a. or b., by a fraction the numerator
24of which is the individual's wages, salary, tips, unearned income, and net earnings
25from a trade or business that are taxable by this state and the denominator of which
1is the individual's total wages, salary, tips, unearned income, and net earnings from
2a trade or business. In this subd. 41. c., for married persons filing separately "wages,
3salary, tips, unearned income, and net earnings from a trade or business" means the
4separate wages, salary, tips, unearned income, and net earnings from a trade or
5business of each spouse, and for married persons filing jointly "wages, salary, tips,
6unearned income, and net earnings from a trade or business" means the total wages,
7salary, tips, unearned income, and net earnings from a trade or business of both
8spouses.
SB40,895,119
d. Reduce the amount calculated under subd. 41. a., b., or c. to the individual's
10aggregate wages, salary, tips, unearned income, and net earnings from a trade or
11business that are taxable by this state.
SB40, s. 1958
12Section
1958. 71.05 (6) (b) 42. of the statutes is created to read:
SB40,895,1713
71.05
(6) (b) 42. For taxable years beginning after December 31, 2010, an
14amount paid by an individual who is the employee of another person, if the
15individual's employer pays a portion of the cost of the individual's medical care
16insurance, for medical care insurance for the individual, his or her spouse, and the
17individual's dependents, calculated as follows:
SB40,896,218
a. One hundred percent of the amount paid by the individual for medical care
19insurance. In this subdivision, "medical care insurance" means a medical care
20insurance policy that covers the individual, his or her spouse, and the individual's
21dependents and provides surgical, medical, hospital, major medical, or other health
22service coverage, and includes payments made for medical care benefits under a
23self-insured plan, but "medical care insurance" does not include hospital indemnity
24policies or policies with ancillary benefits such as accident benefits or benefits for loss
1of income resulting from a total or partial inability to work because of illness,
2sickness, or injury.
SB40,896,53
b. From the amount calculated under subd. 42. a., subtract the amounts
4deducted from gross income for medical care insurance in the calculation of federal
5adjusted gross income.
SB40,896,176
c. For an individual who is a nonresident or part-year resident of this state,
7multiply the amount calculated under subd. 42. a. or b., by a fraction the numerator
8of which is the individual's wages, salary, tips, unearned income, and net earnings
9from a trade or business that are taxable by this state and the denominator of which
10is the individual's total wages, salary, tips, unearned income, and net earnings from
11a trade or business. In this subd. 42. c., for married persons filing separately "wages,
12salary, tips, unearned income, and net earnings from a trade or business" means the
13separate wages, salary, tips, unearned income, and net earnings from a trade or
14business of each spouse, and for married persons filing jointly "wages, salary, tips,
15unearned income, and net earnings from a trade or business" means the total wages,
16salary, tips, unearned income, and net earnings from a trade or business of both
17spouses.
SB40,896,2018
d. Reduce the amount calculated under subd. 42. a., b., or c. to the individual's
19aggregate wages, salary, tips, unearned income, and net earnings from a trade or
20business that are taxable by this state.
SB40, s. 1959
21Section
1959. 71.05 (6) (b) 43. of the statutes is created to read:
SB40,896,2522
71.05
(6) (b) 43. Subject to subd. 43. e. and f., one of the following allowable
23amounts, specified in subd. 43. a. to d., of employment-related expenses claimed by
24the claimant under section
21 of the Internal Revenue Code in the taxable year to
25which that claim relates:
SB40,897,3
1a. For taxable years beginning after December 31, 2007, and before January
21, 2009, up to $750 if the claimant has one qualified individual and up to $1,500 if
3the claimant has more than one qualified individual.
SB40,897,64
b. For taxable years beginning after December 31, 2008, and before January
51, 2010, up to $1,500 if the claimant has one qualified individual and up to $3,000
6if the claimant has more than one qualified individual.
SB40,897,97
c. For taxable years beginning after December 31, 2009, and before January
81, 2011, up to $2,250 if the claimant has one qualified individual and up to $4,500
9if the claimant has more than one qualified individual.
SB40,897,1210
d. For taxable years beginning after December 31, 2010, up to $3,000 if the
11claimant has one qualified individual and up to $6,000 if the claimant has more than
12one qualified individual.
SB40,897,1413
e. A claimant who claims the subtraction under this subdivision is subject to
14the special rules in
26 USC 21 (e) (2) and (4).
SB40,898,215
f. An individual who is a nonresident or part-year resident of this state and who
16claims the subtraction under this subdivision shall multiply the amount calculated
17under subd. 43. a., b., c., or d. by a fraction the numerator of which is the individual's
18wages, salary, tips, unearned income, and net earnings from a trade or business that
19are taxable by this state and the denominator of which is the individual's total wages,
20salary, tips, unearned income, and net earnings from a trade or business. In this
21subd. 43. f., for married persons filing separately "wages, salary, tips, unearned
22income, and net earnings from a trade or business" means the separate wages, salary,
23tips, unearned income, and net earnings from a trade or business of each spouse, and
24for married persons filing jointly "wages, salary, tips, unearned income, and net
1earnings from a trade or business" means the total wages, salary, tips, unearned
2income, and net earnings from a trade or business of both spouses.
SB40, s. 1960
3Section
1960. 71.07 (2dj) (am) 4h. of the statutes is amended to read:
SB40,898,94
71.07
(2dj) (am) 4h. Modify section
51 (a) of the internal revenue code so that
5the amount of the credit is 25% of the qualified first-year wages if the wages are paid
6to an applicant for a Wisconsin
works Works employment position for service
either 7in an unsubsidized position or in a
trial job position under s. 49.147 (3)
or (3m) and
8so that the amount of the credit is 20% of the qualified first-year wages if the wages
9are not paid to such an applicant.
SB40, s. 1961
10Section
1961. 71.07 (2dx) (a) 5. of the statutes is amended to read:
SB40,898,2311
71.07
(2dx) (a) 5. "Member of a targeted group" means a person who resides
12in an area designated by the federal government as an economic revitalization area,
13a person who is employed in an unsubsidized job but meets the eligibility
14requirements under s. 49.145 (2) and (3) for a Wisconsin Works employment position,
15a person who is employed in a trial job, as defined in s. 49.141 (1) (n),
or in a real work,
16real pay project position under s. 49.147 (3m), a person who is eligible for child care
17assistance under s. 49.155, a person who is a vocational rehabilitation referral, an
18economically disadvantaged youth, an economically disadvantaged veteran, a
19supplemental security income recipient, a general assistance recipient, an
20economically disadvantaged ex-convict, a qualified summer youth employee, as
21defined in
26 USC 51 (d) (7), a dislocated worker, as defined in
29 USC 2801 (9), or
22a food stamp recipient, if the person has been certified in the manner under sub. (2dj)
23(am) 3. by a designated local agency, as defined in sub. (2dj) (am) 2.
SB40, s. 1962
24Section
1962. 71.07 (2dx) (b) 2. of the statutes is amended to read:
SB40,899,5
171.07
(2dx) (b) 2. The amount determined by multiplying the amount
2determined under s. 560.785 (1) (b) by the number of full-time jobs created in a
3development zone and filled by a member of a targeted group and by then subtracting
4the subsidies paid under s. 49.147 (3) (a)
or the subsidies and reimbursements paid
5under s. 49.147 (3m) (c) for those jobs.
SB40, s. 1963
6Section
1963. 71.07 (2dx) (b) 3. of the statutes is amended to read:
SB40,899,117
71.07
(2dx) (b) 3. The amount determined by multiplying the amount
8determined under s. 560.785 (1) (c) by the number of full-time jobs created in a
9development zone and not filled by a member of a targeted group and by then
10subtracting the subsidies paid under s. 49.147 (3) (a)
or the subsidies and
11reimbursements paid under s. 49.147 (3m) (c) for those jobs.
SB40, s. 1964
12Section
1964. 71.07 (2dx) (b) 4. of the statutes is amended to read:
SB40,899,1913
71.07
(2dx) (b) 4. The amount determined by multiplying the amount
14determined under s. 560.785 (1) (bm) by the number of full-time jobs retained, as
15provided in the rules under s. 560.785, excluding jobs for which a credit has been
16claimed under sub. (2dj), in an enterprise development zone under s. 560.797 and for
17which significant capital investment was made and by then subtracting the
18subsidies paid under s. 49.147 (3) (a)
or the subsidies and reimbursements paid
19under s. 49.147 (3m) (c) for those jobs.
SB40, s. 1965
20Section
1965. 71.07 (2dx) (b) 5. of the statutes is amended to read:
SB40,900,221
71.07
(2dx) (b) 5. The amount determined by multiplying the amount
22determined under s. 560.785 (1) (c) by the number of full-time jobs retained, as
23provided in the rules under s. 560.785, excluding jobs for which a credit has been
24claimed under sub. (2dj), in a development zone and not filled by a member of a
1targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a)
or
2the subsidies and reimbursements paid under s. 49.147 (3m) (c) for those jobs.
SB40, s. 1966
3Section
1966. 71.07 (3p) of the statutes is created to read:
SB40,900,54
71.07
(3p) Dairy manufacturing facility investment credit. (a)
Definitions.
5In this subsection:
SB40,900,66
1. "Claimant" means a person who files a claim under this subsection.
SB40,900,87
2. "Dairy manufacturing" means processing milk into dairy products or
8processing dairy products for sale commercially.
SB40,900,139
3. "Dairy manufacturing modernization or expansion" means constructing,
10improving, or acquiring buildings or facilities, or acquiring equipment, for dairy
11manufacturing, including the following, if used exclusively for dairy manufacturing
12and if acquired and placed in service in this state during taxable years that begin
13after December 31, 2006, and before January 1, 2015:
SB40,900,1414
a. Building construction, including storage and warehouse facilities.
SB40,900,1515
b. Building additions.
SB40,900,1616
c. Upgrades to utilities, including water, electric, heat, and waste facilities.
SB40,900,1717
d. Milk intake and storage equipment.
SB40,900,2018
e. Processing and manufacturing equipment, including pipes, motors, pumps,
19valves, pasteurizers, homogenizers, vats, evaporators, dryers, concentrators, and
20churns.
SB40,900,2221
f. Packaging and handling equipment, including sealing, bagging, boxing,
22labeling, conveying, and product movement equipment.
SB40,900,2323
g. Warehouse equipment, including storage racks.
SB40,901,3
1h. Waste treatment and waste management equipment, including tanks,
2blowers, separators, dryers, digesters, and equipment that uses waste to produce
3energy, fuel, or industrial products.
SB40,901,64
i. Computer software and hardware used for managing the claimant's dairy
5manufacturing operation, including software and hardware related to logistics,
6inventory management, and production plant controls.
SB40,901,87
4. "Used exclusively" means used to the exclusion of all other uses except for
8use not exceeding 5 percent of total use.
SB40,901,149
(b)
Filing claims. Subject to the limitations provided in this subsection, for
10taxable years beginning after December 31, 2006, and before January 1, 2015, a
11claimant may claim as a credit against the taxes imposed under s. 71.02, up to the
12amount of the tax, an amount equal to 10 percent of the amount the claimant paid
13in the taxable year for dairy manufacturing modernization or expansion related to
14the claimant's dairy manufacturing operation.
SB40,901,1715
(c)
Limitations. 1. No credit may be allowed under this subsection for any
16amount that the claimant paid for expenses described under par. (b) that the
17claimant also claimed as a deduction under section
162 of the Internal Revenue Code.
SB40,901,1918
2. The aggregate amount of credits that a claimant may claim under this
19subsection is $200,000.
SB40,902,320
3. Partnerships, limited liability companies, and tax-option corporations may
21not claim the credit under this subsection, but the eligibility for, and the amount of,
22the credit are based on their payment of expenses under par. (b), except that the
23aggregate amount of credits that the entity may compute shall not exceed $200,000.
24A partnership, limited liability company, or tax-option corporation shall compute
25the amount of credit that each of its partners, members, or shareholders may claim
1and shall provide that information to each of them. Partners, members of limited
2liability companies, and shareholders of tax-option corporations may claim the
3credit in proportion to their ownership interest.
