LRBs0355/2
PG/MES/JK/FFK:all:jm
January 2014 Special Session
2013 - 2014 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 3,
TO 2013 SENATE BILL 1
March 4, 2014 - Offered by Senators
C. Larson, Risser, Wirch, Lassa, Hansen,
Erpenbach, Harris and T. Cullen.
SB1-SSA3,2,5
1An Act to repeal 115.436 (2) (a) and (b);
to renumber 38.41 (1) and (2) and 71.05
2(8) (b);
to renumber and amend 38.41 (3) (a), 38.41 (3) (c), 38.41 (3) (d) and
338.41 (4);
to consolidate, renumber and amend 115.436 (2) (intro.) and (c);
4to amend 20.292 (1) (eh), 20.292 (1) (f), 38.41 (title), 71.05 (6) (b) 47. am., 71.05
5(6) (b) 47. b., 71.05 (6) (b) 47. c., 71.06 (1q) (a), 71.06 (2) (i) 1., 71.06 (2) (j) 1., 71.28
6(9s) (d) 3., 71.47 (9s) (d) 3., 71.52 (6), 77.54 (61) (intro.), (a) and (b), 79.15 and
7115.436 (3) (a);
to repeal and recreate 38.41 (1m) (c) 1.; and
to create 20.292
8(1) (ej), 38.41 (1m) (title), 38.41 (2m), 71.05 (6) (b) 47. dm., 71.05 (8) (b) 2., 71.05
9(8) (c), 71.07 (5i) (c) 3., 71.28 (5i) (c) 3., 71.47 (5i) (c) 3., 71.64 (9) (b) 3., 77.54 (61)
10(c) and 115.436 (3) (am) of the statutes;
relating to: reducing the lowest
11individual income tax rate; providing high-demand profession grants to
12technical college districts; increasing the amount of the first-dollar credit; the
13carry-back of net operating losses; reducing the authority of the Department
1of Revenue to adjust the withholding tables; the sales and use tax exemption
2for commercial printing; the jobs tax credit; the electronic medical records
3credit; the relocated business credit; sparsity aid; funding for special education,
4achievement guarantee contracts, and high cost transportation aid; and
5making appropriations.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB1-SSA3,1
6Section
1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
7the following amounts for the purposes indicated:
-
See PDF for table ![PDF](http://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
SB1-SSA3,2
8Section
2. 20.292 (1) (eh) of the statutes is amended to read:
SB1-SSA3,2,109
20.292
(1) (eh)
Training program Business skills training grants. Biennially,
10the amounts in the schedule for grants under s. 38.41
(1m).
SB1-SSA3,3
11Section
3. 20.292 (1) (ej) of the statutes is created to read:
SB1-SSA3,2,1312
20.292
(1) (ej)
High-demand profession grants. As a continuing appropriation,
13the amounts in the schedule for making grants under s. 38.41 (2m).
SB1-SSA3,3,216
20.292
(1) (f)
Grants to district boards. As a continuing appropriation, the
17amounts in the schedule for aids and grants to technical college districts under ss.
138.04 (13) (a), (20), (28), and (32) (a), 38.26, 38.27, 38.272, 38.28 (4), 38.29, 38.32,
238.33, 38.38, 38.40 (4m), and 38.41
(1m).
SB1-SSA3,5
3Section
5. 38.41 (title) of the statutes is amended to read:
SB1-SSA3,3,4
438.41 (title)
Training program grants.
SB1-SSA3,6
5Section
6. 38.41 (1) and (2) of the statutes are renumbered 38.41 (1m) (a) and
6(b).
SB1-SSA3,7
7Section
7. 38.41 (1m) (title) of the statutes is created to read:
SB1-SSA3,3,88
38.41
(1m) (title)
Business skills training.
SB1-SSA3,3,1211
38.41
(1m) (c) 1. Amounts awarded under this subsection shall be paid from
12the appropriation under s. 20.292 (1) (f).
SB1-SSA3,9
13Section
9. 38.41 (2m) of the statutes is created to read:
SB1-SSA3,3,1814
38.41
(2m) High-demand professions. From the appropriation under s. 20.292
15(1) (ej), the board shall award grants to district boards for training for high-demand
16professions, as determined by the board. In determining what constitute
17high-demand professions, the board shall consider the determinations regarding
18high-demand fields under s. 38.28 (2) (be) 1. b.
SB1-SSA3,10
19Section
10. 38.41 (3) (a) of the statutes is renumbered 38.41 (1m) (c) 1. and
20amended to read:
SB1-SSA3,3,2221
38.41
(1m) (c) 1. The board shall award grants under this
section subsection 22from the appropriation under s. 20.292 (1) (eh).
SB1-SSA3,11
23Section
11. 38.41 (3) (c) of the statutes is renumbered 38.41 (1m) (c) 2. and
24amended to read:
SB1-SSA3,4,2
138.41
(1m) (c) 2. The board may award no more than $500,000 in any fiscal year
2under
sub. (2) par. (b).
SB1-SSA3,12
3Section
12. 38.41 (3) (d) of the statutes is renumbered 38.41 (1m) (c) 3. and
4amended to read:
SB1-SSA3,4,85
38.41
(1m) (c) 3. Beginning in the 2008-09 school year, the board shall award
6at least $1,000,000 annually under
sub. (1) par. (a) for training in advanced
7manufacturing skills, and beginning in the 2010-11 school year, the board shall
8award at least $2,000,000 annually under
sub. (1)
par. (a) for such training.
SB1-SSA3,13
9Section
13. 38.41 (4) of the statutes is renumbered 38.41 (1m) (d) and amended
10to read:
SB1-SSA3,4,1211
38.41
(1m) (d) The board shall promulgate rules to implement and administer
12this
section subsection.
SB1-SSA3,4,2315
71.05
(6) (b) 47. am. For taxable years beginning after December 31, 2010, and
16before January 1, 2014, for 2 consecutive taxable years beginning with the taxable
17year in which the claimant's business locates to this state from another state or
18another country and begins doing business in this state, as defined in s. 71.22 (1r),
19and subject to the limitations provided under subd. 47. d.
, dm., and e., the profit or
20loss from a trade or business as reported on federal income tax return schedules C
21and F or their equivalents, plus ordinary gain or loss on the sale of business assets,
22as determined under s. 71.01 (6), but not less than zero, multiplied by the
23apportionment fraction determined in s. 71.04 (4) and subject to s. 71.04 (7).
SB1-SSA3,5,21
171.05
(6) (b) 47. b. With respect to partners and members of limited liability
2companies, for taxable years beginning after December 31, 2010, and before January
31, 2014, for 2 consecutive taxable years beginning with the taxable year in which the
4partnership's or limited liability company's business locates to this state from
5another state or another country and begins doing business in this state, as defined
6in s. 71.22 (1r), and subject to the limitations provided under subd. 47. d.
, dm., and
7e., the partner's or member's distributive share of taxable income as calculated under
8section
703 of the Internal Revenue Code; plus the items of income and gain under
9section
702 of the Internal Revenue Code, including taxable state and municipal
10bond interest and excluding nontaxable interest income or dividend income from
11federal government obligations; minus the items of loss and deduction under section
12756702 702 of the Internal Revenue Code, except items that are not deductible under
13s. 71.21; plus guaranteed payments to partners under section
707 (c) of the Internal
14Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL),
15(2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t),
16(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), and (8r); and plus or minus, as
17appropriate, transitional adjustments, depreciation differences, and basis
18differences under s. 71.05 (13), (15), (16), (17), and (19), multiplied by the
19apportionment fraction determined in s. 71.04 (4) and subject to s. 71.04 (7) or by
20separate accounting. No amounts subtracted under this subd. 47. b. may be included
21in the modification under par. (b) 9. or 9m.
SB1-SSA3,6,924
71.05
(6) (b) 47. c. With respect to shareholders of a tax-option corporation, for
25taxable years beginning after December 31, 2010, and before January 1, 2014, for 2
1consecutive taxable years beginning with the taxable year in which the tax-option
2corporation's business locates to this state from another state or another country and
3begins doing business in this state, as defined in s. 71.22 (1r), and subject to the
4limitations provided under subd. 47. d.
, dm., and e., the shareholder's distributive
5share of the entity's net income or loss as determined under this chapter, including
6interest income from federal, state, and municipal government obligations,
7multiplied by the apportionment fraction determined in s. 71.25 (6m) and subject to
8s. 71.25 (9) or by separate accounting. No amounts subtracted under this subdivision
9may be included in the modification under par. (b) 9. or 9m.
SB1-SSA3,17
10Section
17. 71.05 (6) (b) 47. dm. of the statutes is created to read:
SB1-SSA3,6,1511
71.05
(6) (b) 47. dm. No person may claim a deduction under this subdivision
12for taxable years beginning after December 31, 2013, except that a claimant who is
13first eligible to claim a deduction under this subdivision for a taxable year beginning
14after December 31, 2012, and before January 1, 2014, may claim the deduction the
15following taxable year.
SB1-SSA3,19
18Section
19. 71.05 (8) (b) 2. of the statutes is created to read:
SB1-SSA3,6,2219
71.05
(8) (b) 2. The taxpayer need not make the offset against Wisconsin
20modified taxable income of the 2 years preceding the loss, as provided under subd.
211., if the taxpayer chooses not to carry back the net operating loss to the 2 years
22preceding the loss.
SB1-SSA3,20
23Section
20. 71.05 (8) (c) of the statutes is created to read:
SB1-SSA3,6,2524
71.05
(8) (c) The department shall not pay interest on any overpayment that
25results from the carry-back of a net operating loss.
SB1-SSA3,7,43
71.06
(1q) (a) On all taxable income from $0 to $7,500, 4.40 percent
, except that
4for taxable years beginning after December 31, 2013, 4.0 percent.
SB1-SSA3,7,87
71.06
(2) (i) 1. On all taxable income from $0 to $10,000, 4.40 percent
, except
8that for taxable years beginning after December 31, 2013, 4.0 percent.
SB1-SSA3,7,1211
71.06
(2) (j) 1. On all taxable income from $0 to $5,000, 4.40 percent
, except that
12for taxable years beginning after December 31, 2013, 4.0 percent.
SB1-SSA3,24
13Section
24. 71.07 (5i) (c) 3. of the statutes is created to read:
SB1-SSA3,7,1514
71.07
(5i) (c) 3. No credit may be claimed under this subsection based on an
15amount paid under par. (b) after December 31, 2013.
SB1-SSA3,25
16Section
25. 71.28 (5i) (c) 3. of the statutes is created to read:
SB1-SSA3,7,1817
71.28
(5i) (c) 3. No credit may be claimed under this subsection based on an
18amount paid under par. (b) after December 31, 2013.
SB1-SSA3,8,221
71.28
(9s) (d) 3. No credit may be claimed under this subsection for taxable
22years beginning after December 31, 2013
. Credits under this subsection for taxable
23years that begin before January 1, 2014, may be carried forward to taxable years that
24begin after December 31, 2013, except that a claimant who is first eligible to claim
1a credit under this subsection for taxable years beginning after December 31, 2012,
2and before January 1, 2014, may claim the credit in the following taxable year.
SB1-SSA3,27
3Section
27. 71.47 (5i) (c) 3. of the statutes is created to read:
SB1-SSA3,8,54
71.47
(5i) (c) 3. No credit may be claimed under this subsection based on an
5amount paid under par. (b) after December 31, 2013.
SB1-SSA3,8,138
71.47
(9s) (d) 3. No credit may be claimed under this subsection for taxable
9years beginning after December 31, 2013
. Credits under this subsection for taxable
10years that begin before January 1, 2014, may be carried forward to taxable years that
11begin after December 31, 2013, except that a claimant who is first eligible to claim
12a credit under this subsection for taxable years beginning after December 31, 2012,
13and before January 1, 2014, may claim the credit in the following taxable year.
SB1-SSA3,29
14Section
29. 71.52 (6) of the statutes is amended to read:
SB1-SSA3,9,2515
71.52
(6) "Income" means the sum of Wisconsin adjusted gross income and the
16following amounts, to the extent not included in Wisconsin adjusted gross income:
17maintenance payments (except foster care maintenance and supplementary
18payments excludable under section
131 of the internal revenue code), support money,
19cash public assistance (not including credit granted under this subchapter and
20amounts under s. 46.27), cash benefits paid by counties under s. 59.53 (21), the gross
21amount of any pension or annuity (including railroad retirement benefits, all
22payments received under the federal social security act and veterans disability
23pensions), nontaxable interest received from the federal government or any of its
24instrumentalities, nontaxable interest received on state or municipal bonds,
25worker's compensation, unemployment insurance, the gross amount of "loss of time"
1insurance, compensation and other cash benefits received from the United States for
2past or present service in the armed forces, scholarship and fellowship gifts or
3income, capital gains, gain on the sale of a personal residence excluded under section
4121 of the internal revenue code, dividends, income of a nonresident or part-year
5resident who is married to a full-year resident, housing allowances provided to
6members of the clergy, the amount by which a resident manager's rent is reduced,
7nontaxable income of an American Indian, nontaxable income from sources outside
8this state and nontaxable deferred compensation. Intangible drilling costs,
9depletion allowances and depreciation, including first-year depreciation allowances
10under section
179 of the internal revenue code, amortization, contributions to
11individual retirement accounts under section
219 of the internal revenue code,
12contributions to Keogh plans, net operating loss
carry-backs and carry-forwards
13and capital loss carry-forwards deducted in determining Wisconsin adjusted gross
14income shall be added to "income". "Income" does not include gifts from natural
15persons, cash reimbursement payments made under title XX of the federal social
16security act, surplus food or other relief in kind supplied by a governmental agency,
17the gain on the sale of a personal residence deferred under section
1034 of the
18internal revenue code or nonrecognized gain from involuntary conversions under
19section
1033 of the internal revenue code. Amounts not included in adjusted gross
20income but added to "income" under this subsection in a previous year and repaid
21may be subtracted from income for the year during which they are repaid.
22Scholarship and fellowship gifts or income that are included in Wisconsin adjusted
23gross income and that were added to household income for purposes of determining
24the credit under this subchapter in a previous year may be subtracted from income
25for the current year in determining the credit under this subchapter. A marital
1property agreement or unilateral statement under ch. 766 has no effect in computing
2"income" for a person whose homestead is not the same as the homestead of that
3person's spouse.
SB1-SSA3,30
4Section
30. 71.64 (9) (b) 3. of the statutes is created to read:
SB1-SSA3,10,65
71.64
(9) (b) 3. The department may not adjust the withholding tables
6established in 2009 without the approval of the legislature.
SB1-SSA3,10,169
77.54
(61) (intro.)
The sales price from the sale of and the storage, use, or other
10consumption of the following by a person primarily engaged
, as determined by the
11department, in commercial printing,
not including screen printing or book printing,
12without publishing, except for gray goods; printing, or printing and binding, books
13or pamphlets without publishing the books or pamphlets; or performing prepress
14and postpress services in support of printing activities book printing, or support
15activities for printing described under 323111, 323117, and 323120 of the North
16American Industry Classification System:
SB1-SSA3,10,1917
(a) Computers and servers
that are used
primarily to store copies of the product
18that are sent to
a digital printer, a platemaking machine, or a printing press
or used
19primarily in prepress or postpress activities.
SB1-SSA3,10,2220
(b) Tangible personal property purchased from out-of-state sellers that are
21temporarily stored, remain idle, and not used in this state
for not more than 180 days 22and that are then delivered and used
solely outside of this state.
SB1-SSA3,32
23Section
32. 77.54 (61) (c) of the statutes is created to read:
SB1-SSA3,10,2424
77.54
(61) (c) In this subsection:
SB1-SSA3,11,2
11. "Postpress activities" include paper bronzing, die-cutting, edging,
2embossing, folding, gilding, gluing, and indexing.
SB1-SSA3,11,43
2. "Prepress activities" include making print-ready plates, typesetting, trade
4binding, and sample mounting.
SB1-SSA3,11,55
3. "Temporarily" means not more than 180 days.