71.01
(7r) (c) Notwithstanding sub. (6), section 101 of P.L.
109-222, related to extending the increased expense deduction under section
179 of the Internal Revenue Code, applies to property used in farming that is acquired and placed in service in taxable years beginning
on or after
December 31, 2007, and before January 1,
2008 2010, and used by a person who is actively engaged in farming. For purposes of this paragraph, "actively engaged in farming" has the meaning given in
7 CFR 1400.201, and "farming" has the meaning given in section
464 (e) (1) of the Internal Revenue Code.
20,1297h
Section 1297h. 71.01 (10) (intro.) of the statutes is amended to read:
71.01 (10) (intro.) "Small business stock" means an equity security, sold before January 1, 2014, that the taxpayer has held for at least 5 years and that is issued by a corporation that, on the December 31 before acquisition by the taxpayer, or, for a corporation which was incorporated during the calendar year in which the stock is issued, as of the date of the acquisition of the stock, fulfills all of the following requirements and so certifies to the taxpayer upon acquisitions:
20,1298
Section
1298. 71.05 (1) (c) 11. of the statutes is created to read:
71.05 (1) (c) 11. The Wisconsin Health and Educational Facilities Authority under s. 231.03 (6), if the bonds or notes are issued for the benefit of a person who is eligible to receive the proceeds of bonds or notes from another entity for the same purpose for which the bonds or notes are issued under s. 231.03 (6) and the interest income received from the other bonds or notes is exempt from taxation under this subchapter.
20,1298n
Section 1298n. 71.05 (6) (a) 10. of the statutes is amended to read:
71.05
(6) (a) 10. For
the taxable
year years beginning before January 1, 2014, for a person who is not "actively engaged in farming," as that term is used in
7 CFR 1400.201, combined net losses, exclusive of net gains from the sale or exchange of capital or business assets and exclusive of net profits, from businesses, from rents, from partnerships, from limited liability companies, from S corporations, from estates, or from trusts, under section
165 of the Internal Revenue Code, except losses allowable under sections
1211 and
1231 of the Internal Revenue Code, otherwise includable in calculating Wisconsin income if those losses are incurred in the operation of a farming business, as defined in section
464 (e)
1. of the Internal Revenue Code to the extent that those combined net losses exceed $20,000 if nonfarm Wisconsin adjusted gross income exceeds $55,000 but does not exceed $75,000, exceed $17,500 if nonfarm Wisconsin adjusted gross income exceeds $75,000 but does not exceed $100,000, exceed $15,000 if nonfarm Wisconsin adjusted gross income exceeds $100,000 but does not exceed $150,000, exceed $12,500 if nonfarm Wisconsin adjusted gross income exceeds $150,000 but does not exceed $200,000, exceed $10,000 if nonfarm Wisconsin adjusted gross income exceeds $200,000 but does not exceed $250,000, exceed $7,500 if nonfarm Wisconsin adjusted gross income exceeds $250,000 but does not exceed $300,000, exceed $5,000 if nonfarm Wisconsin adjusted gross income exceeds $300,000 but does not exceed $600,000, and exceed $0 if nonfarm adjusted gross income exceeds $600,000, except that the amounts applicable to married persons filing separately are 50% of the amounts specified in this subdivision.
20,1298p
Section 1298p. 71.05 (6) (a) 15. of the statutes is amended to read:
71.05 (6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (4k), (4n), (5e), (5f), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (8r) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
20,1298s
Section 1298s. 71.05 (6) (b) 6. of the statutes is amended to read:
71.05 (6) (b) 6. For the original purchaser of small business stock that is purchased at the time that the business is incorporated and before January 1, 2014, and that is sold before January 1, 2014, the amount of net capital gains on small business stock otherwise subject to the tax under s. 71.02 if the taxpayer has not acquired the stock by gift, has not acquired the stock in a stock-for-stock exchange and submits with the taxpayer's return a copy of the certification under s. 71.01 (10).
20,1299
Section
1299. 71.05 (6) (b) 19. a. of the statutes is amended to read:
71.05
(6) (b) 19. a. One hundred percent of the amount paid by the person for medical care insurance
, not including any amount that is paid with a premium assistance credit amount under 26 USC 36B. In this subdivision, "medical care insurance" means a medical care insurance policy that covers the person, his or her spouse and the person's dependents and provides surgical, medical, hospital, major medical or other health service coverage, and includes payments made for medical care benefits under a self-insured plan, but "medical care insurance" does not include hospital indemnity policies or policies with ancillary benefits such as accident benefits or benefits for loss of income resulting from a total or partial inability to work because of illness, sickness or injury.
20,1301
Section
1301. 71.05 (6) (b) 28. i. of the statutes is created to read:
71.05 (6) (b) 28. i. For taxable years beginning after December 31, 2012, the dollar amounts in subd. 28. b., c., d., and g. 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 2011, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year. Each amount that is revised under this subd. 28. i. 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 subd. 28. i. and incorporate the changes into the income tax forms and instructions.
20,1302
Section
1302. 71.05 (6) (b) 35. a. of the statutes is amended to read:
71.05
(6) (b) 35. a. One hundred percent of the amount paid by the individual for medical care insurance
, not including any amount that is paid with a premium assistance credit amount under 26 USC 36B. In this subdivision, "medical care insurance" means a medical care insurance policy that covers the individual, his or her spouse, and the individual's dependents and provides surgical, medical, hospital, major medical, or other health service coverage, and includes payments made for medical care benefits under a self-insured plan, but "medical care insurance" does not include hospital indemnity policies or policies with ancillary benefits such as accident benefits or benefits for loss of income resulting from a total or partial inability to work because of illness, sickness, or injury.
20,1303
Section
1303. 71.05 (6) (b) 38. a. of the statutes is amended to read:
71.05
(6) (b) 38. a. One hundred percent of the amount paid by the individual for medical care insurance
, not including any amount that is paid with a premium assistance credit amount under 26 USC 36B. In this subdivision, "medical care insurance" means a medical care insurance policy that covers the individual, his or her spouse, and the individual's dependents and provides surgical, medical, hospital, major medical, or other health service coverage, and includes payments made for medical care benefits under a self-insured plan, but "medical care insurance" does not include hospital indemnity policies or policies with ancillary benefits such as accident benefits or benefits for loss of income resulting from a total or partial inability to work because of illness, sickness, or injury.
20,1304
Section
1304. 71.05 (6) (b) 42. a. of the statutes is amended to read:
71.05
(6) (b) 42. a. One hundred percent of the amount paid by the individual for medical care insurance
, not including any amount that is paid with a premium assistance credit amount under 26 USC 36B. In this subdivision, "medical care insurance" means a medical care insurance policy that covers the individual, his or her spouse, and the individual's dependents and provides surgical, medical, hospital, major medical, or other health service coverage, and includes payments made for medical care benefits under a self-insured plan, but "medical care insurance" does not include hospital indemnity policies or policies with ancillary benefits such as accident benefits or benefits for loss of income resulting from a total or partial inability to work because of illness, sickness, or injury.
20,1304d
Section 1304d. 71.05 (6) (b) 47. am. of the statutes is amended to read:
71.05 (6) (b) 47. am. For taxable years beginning after December 31, 2010, and before January 1, 2014, for 2 consecutive taxable years beginning with the taxable year in which the claimant's business locates to this state from another state or another country and begins doing business in this state, as defined in s. 71.22 (1r), and subject to the limitations provided under subd. 47. d. and e., the profit or loss from a trade or business as reported on federal income tax return schedules C and F or their equivalents, plus ordinary gain or loss on the sale of business assets, as determined under s. 71.01 (6), but not less than zero, multiplied by the apportionment fraction determined in s. 71.04 (4) and subject to s. 71.04 (7).
20,1304e
Section 1304e. 71.05 (6) (b) 47. b. of the statutes is amended to read:
71.05
(6) (b) 47. b. With respect to partners and members of limited liability companies, for taxable years beginning after December 31, 2010,
and before January 1, 2014, for 2 consecutive taxable years beginning with the taxable year in which the partnership's or limited liability company's business locates to this state from another state or another country and begins doing business in this state, as defined in s. 71.22 (1r), and subject to the limitations provided under subd. 47. d. and e., the partner's or member's distributive share of taxable income as calculated under section
703 of the Internal Revenue Code; plus the items of income and gain under section
702 of the Internal Revenue Code, including taxable state and municipal bond interest and excluding nontaxable interest income or dividend income from federal government obligations; minus the items of loss and deduction under section
756702 of the Internal Revenue Code, except items that are not deductible under s. 71.21; plus guaranteed payments to partners under section
707 (c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), and (8r); and plus or minus, as appropriate, transitional adjustments, depreciation differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19), multiplied by the apportionment fraction determined in s. 71.04 (4) and subject to s. 71.04 (7) or by separate accounting. No amounts subtracted under this subd. 47. b. may be included in the modification under par. (b) 9. or 9m.
20,1304f
Section 1304f. 71.05 (6) (b) 47. c. of the statutes is amended to read:
71.05 (6) (b) 47. c. With respect to shareholders of a tax-option corporation, for taxable years beginning after December 31, 2010, and before January 1, 2014, for 2 consecutive taxable years beginning with the taxable year in which the tax-option corporation's business locates to this state from another state or another country and begins doing business in this state, as defined in s. 71.22 (1r), and subject to the limitations provided under subd. 47. d. and e., the shareholder's distributive share of the entity's net income or loss as determined under this chapter, including interest income from federal, state, and municipal government obligations, multiplied by the apportionment fraction determined in s. 71.25 (6m) and subject to s. 71.25 (9) or by separate accounting. No amounts subtracted under this subdivision may be included in the modification under par. (b) 9. or 9m.
20,1304fm
Section 1304fm. 71.05 (6) (b) 48m. of the statutes is created to read:
71.05
(6) (b) 48m. For taxable years that begin after December 31, 2012, any amount of income received by an individual who is on active duty in the U.S. armed forces, as defined in
26 USC 7701 (a) (15), and who dies while on active duty if the individual's death occurred while he or she was serving in a combat zone or as a result of wounds, disease, or injury incurred while serving in a combat zone. The subtraction in this subdivision applies to the income that is received by the individual in the year in which he or she dies, and in the year immediately preceding that year if the individual has not filed a return for the year before the year in which he or she dies.
20,1304g
Section 1304g. 71.05 (6) (b) 49. of the statutes is created to read:
71.05 (6) (b) 49. a. Subject to the definitions provided in subd. 49. b. to g. and the limitations specified in subd. 49. h. to j. for taxable years beginning after December 31, 2013, tuition expenses that are paid by a claimant for tuition for a pupil to attend an eligible institution.
b. In this subdivision, "claimant" means an individual who claims a pupil as a dependent under section
151 (c) of the Internal Revenue Code on his or her tax return.
c. In this subdivision, "elementary pupil" means an individual who is enrolled in grades kindergarten to 8 at an eligible institution.
d. In this subdivision, "eligible institution" means a private school, as defined in s. 115.001 (3r), that meets all of the criteria under s. 118.165 (1).
e. In this subdivision, "pupil" means an elementary pupil or secondary pupil.
f. In this subdivision, "secondary pupil" means an individual who is enrolled in grades 9 to 12 at an eligible institution.
g. In this subdivision, "tuition" means any amount paid by a claimant, in the year to which the claim relates, for a pupil's tuition to attend an eligible institution.
h. For each elementary pupil, in each year to which the claim relates, the maximum amount of tuition expenses which a claimant may subtract under this subdivision in a taxable year is $4,000.
i. For each secondary pupil, in each year to which the claim relates, the maximum amount of tuition expenses which a claimant may subtract under this subdivision in a taxable year is $10,000.
j. If an individual is an elementary pupil and a secondary pupil in the same taxable year, the claimant may claim the subtraction under this subdivision for only one grade for that pupil for that taxable year.
20,1304gm
Section 1304gm. 71.05 (6) (b) 50. of the statutes is created to read:
71.05 (6) (b) 50. Starting with the first taxable year beginning after December 31, 2013, and for each of the next 4 taxable years, 20 percent of the amount determined by subtracting the combined federal adjusted basis of all depreciated or amortized assets as of the last day of the taxable year beginning in 2013 that are also being depreciated or amortized for Wisconsin from the combined Wisconsin adjusted basis of those assets on the same day.
20,1304h
Section 1304h. 71.05 (8) (a) of the statutes is amended to read:
71.05 (8) (a) The carry back of losses to reduce income of prior years shall not may be permitted for 2 taxable years. There shall be added any amount deducted as a federal net operating loss carry-back or carry-over and there shall be subtracted for the first taxable year for which the subtraction may be made any Wisconsin net operating loss carry-back or carry-forward allowable under par. (b) in an amount not in excess of the Wisconsin taxable income computed before the deduction of the Wisconsin net operating loss carry-back or carry-forward.
20,1304he
Section 1304he. 71.05 (8) (b) of the statutes is amended to read:
71.05 (8) (b) A Wisconsin net operating loss may be carried back against Wisconsin taxable income of the previous 2 years and then carried forward against Wisconsin taxable incomes of the next 15 20 taxable years, if the taxpayer was subject to taxation under this chapter in the taxable year in which the loss was sustained, to the extent not offset against other income of the year of loss and to the extent not offset against Wisconsin modified taxable income of the 2 years preceding the loss and of any year between the loss year and the taxable year for which the loss carry-forward is claimed. In this paragraph, "Wisconsin modified taxable income" means Wisconsin taxable income with the following exceptions: a net operating loss deduction or offset for the loss year or any taxable year before or thereafter is not allowed, the deduction for long-term capital gains under subs. (6) (b) 9. and 9m. and (25) is not allowed, the amount deductible for losses from sales or exchanges of capital assets may not exceed the amount includable in income for gains from sales or exchanges of capital assets and "Wisconsin modified taxable income" may not be less than zero.
20,1304i
Section 1304i. 71.05 (16) of the statutes is amended to read:
71.05 (16) Depreciation continuation.
Property For taxable years beginning before January 1, 2014, property that, under s. 71.02 (2) (d) 12., 1985 stats., is required to be depreciated for taxable year 1986 under the internal revenue code as amended to December 31, 1980, shall continue to be depreciated under the internal revenue code as amended to December 31, 1980.
20,1304j
Section 1304j. 71.05 (17) of the statutes is amended to read:
71.05 (17) Difference in basis.
With For taxable years beginning before January 1, 2014, with respect to depreciable property that, under s. 71.02 (2) (d) 12., 1985 stats., is required to be depreciated for taxable year 1986 under the internal revenue code as amended to December 31, 1980, and that was disposed of in taxable year 1986 and thereafter, any difference between the adjusted basis for federal income tax purposes and the adjusted basis under this chapter shall be taken into account in determining net income or loss in the year or years that the gain or loss is reportable under this chapter.
20,1304m
Section 1304m. 71.05 (18) of the statutes is amended to read:
71.05 (18) Carry-over basis precluded. With For taxable years beginning before January 1, 2014, with respect to property that, under s. 71.02 (2) (d) 12., 1985 stats., is required to be depreciated for taxable year 1986 under the internal revenue code as amended to December 31, 1980, and that was acquired in a transaction occurring in taxable year 1986 and thereafter in which the adjusted basis of the property in the hands of the transferee is the same as the adjusted basis of the property in the hands of the transferor, the Wisconsin adjusted basis of that property on the date of transfer is the adjusted basis allowable under the depreciation provisions of the internal revenue code as defined for Wisconsin purposes for the property in the hands of the transferor.
20,1305
Section
1305. 71.05 (24) (a) 4. of the statutes is amended to read:
71.05 (24) (a) 4. "Qualified new business venture" means a business certified under s. 238.20, 2011 stats., or s. 560.2085, 2009 stats.
20,1306
Section
1306. 71.05 (24) (b) (intro.) of the statutes is amended to read:
71.05 (24) (b) (intro.) For taxable years beginning after December 31, 2010, and before January 1, 2014, a claimant may subtract from federal adjusted gross income any amount, up to $10,000,000, of a long-term capital gain if the claimant does all of the following:
20,1307
Section
1307. 71.05 (25) (title) of the statutes is amended to read:
71.05 (25) (title) Capital gains exclusion; Wisconsin-source assets qualified Wisconsin business.
20,1308
Section
1308. 71.05 (25) (a) 2. of the statutes is amended to read:
71.05 (25) (a) 2. "Qualifying gain" means the a long-term capital gain under the Internal Revenue Code realized from the sale of any asset which is a Wisconsin capital asset in the year it is purchased by the claimant and for at least 2 of the subsequent 4 years; that is purchased an investment made after December 31, 2010; that is, and held for at least 5 uninterrupted years; and that is treated as a long-term gain under the Internal Revenue Code in a business that for the year of investment and at least 2 of the 4 subsequent years was a qualified Wisconsin business; except that a qualifying gain may not include any amount for which the claimant claimed a subtraction under sub. (24) (b) or any gain described under sub. (26) (b) 1.
20,1309
Section
1309. 71.05 (25) (a) 3. of the statutes is renumbered 71.05 (25) (a) 1s. and amended to read:
71.05 (25) (a) 1s. "Qualified Wisconsin business" means a business certified by the Wisconsin Economic Development Corporation under s. 238.145, 2011 stats., or registered with the department under s. 73.03 (69).
20,1310
Section
1310. 71.05 (25) (a) 4. of the statutes is repealed.
20,1311
Section
1311. 71.05 (25) (b) (intro.) of the statutes is renumbered 71.05 (25) (b) and amended to read:
71.05 (25) (b) For taxable years beginning after December 31, 2015, for a Wisconsin capital asset that is purchased an investment in a qualified Wisconsin business made after December 31, 2010, and held for at least 5 uninterrupted years, a claimant may subtract from federal adjusted gross income the lesser of one of the following amounts amount of the claimant's qualifying gain in the year to which the claim relates, to the extent that it is not subtracted under sub. (6) (b) 9. or 9m.:
20,1312
Section
1312. 71.05 (25) (b) 1. of the statutes is repealed.
20,1313
Section
1313. 71.05 (25) (b) 2. of the statutes is repealed.
20,1314
Section
1314. 71.05 (26) (title) of the statutes is amended to read:
71.05 (26) (title) Income tax deferral;
long-term Wisconsin capital assets qualified Wisconsin business.
20,1315
Section
1315. 71.05 (26) (a) 4. of the statutes is amended to read:
71.05 (26) (a) 4. "Qualified Wisconsin business" means a business certified by the Wisconsin Economic Development Corporation under s. 238.146, 2011 stats., or registered with the department under s. 73.03 (69).
20,1316
Section
1316. 71.05 (26) (b) (intro.) of the statutes is amended to read:
71.05 (26) (b) (intro.) For taxable years beginning after December 31, 2010, and before January 1, 2014, a claimant may subtract from federal adjusted gross income any amount of a long-term capital gain if the claimant does all of the following:
20,1317
Section
1317. 71.05 (26) (bm) of the statutes is created to read:
71.05 (26) (bm) For taxable years beginning after December 31, 2013, a claimant may subtract from federal adjusted gross income any amount of a long-term capital gain if the claimant does all of the following:
1. Within 180 days after the sale of the asset that generated the gain, invests all of the gain in a qualified Wisconsin business.
2. After making the investment as described under subd. 1., notifies the department, on a form prepared by the department, that the claimant will not declare the gain on the claimant's income tax return because the claimant has reinvested the capital gain as described under subd. 1. The form shall be sent to the department along with the claimant's income tax return for the year to which the claim relates.
20,1318
Section
1318. 71.05 (26) (c) of the statutes is amended to read:
71.05 (26) (c) The basis of the investment described in par. (b) 2. shall be calculated by subtracting the gain described in par. (b) 1. from the amount of the investment described in par. (b) 2. The basis of the investment described in par. (bm) 1. shall be calculated by subtracting the gain described in par. (bm) 1. from the amount of the investment described in par. (bm) 1.
20,1319
Section
1319. 71.05 (26) (d) of the statutes is amended to read:
71.05 (26) (d) If a claimant defers the payment of income taxes on a capital gain under this subsection, the claimant may not use the gain described under par. (b) 1. to net capital gains and losses, as described under sub. (10) (c).
20,1320
Section
1320. 71.05 (26) (f) of the statutes is amended to read:
71.05 (26) (f) If a claimant claims the a subtraction for a capital gain under this subsection par. (b) or (bm), the gain described under par. (b) 1. may not be used as a qualifying gain under sub. (25).
20,1321
Section
1321. 71.06 (1p) (intro.) of the statutes is amended to read:
71.06 (1p) Fiduciaries, single individuals and heads of households; after 2000 2001 to 2012. (intro.) The tax to be assessed, levied and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households shall be computed at the following rates for taxable years beginning after December 31, 2000, and before January 1, 2013:
20,1322
Section
1322. 71.06 (1q) of the statutes is created to read:
71.06 (1q) Fiduciaries, single individuals, and heads of households; after 2012. (intro.) The tax to be assessed, levied, and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households shall be computed at the following rates for taxable years beginning after December 31, 2012:
(a) On all taxable income from $0 to $7,500, 4.40 percent.
(b) On all taxable income exceeding $7,500 but not exceeding $15,000, 5.84 percent.
