AB40,1299 4Section 1299. 71.05 (6) (b) 19. a. of the statutes is amended to read:
AB40,643,145 71.05 (6) (b) 19. a. One hundred percent of the amount paid by the person for
6medical care insurance, not including any amount that is paid with a premium
7assistance credit amount under 26 USC 36B
. In this subdivision, "medical care
8insurance" means a medical care insurance policy that covers the person, his or her
9spouse and the person's dependents and provides surgical, medical, hospital, major
10medical or other health service coverage, and includes payments made for medical
11care benefits under a self-insured plan, but "medical care insurance" does not
12include hospital indemnity policies or policies with ancillary benefits such as
13accident benefits or benefits for loss of income resulting from a total or partial
14inability to work because of illness, sickness or injury.
AB40,1300 15Section 1300. 71.05 (6) (b) 28. (intro.) of the statutes is amended to read:
AB40,643,2216 71.05 (6) (b) 28. (intro.) An amount paid by a claimant for tuition expenses and
17mandatory student fees for a student who is the claimant or who is the claimant's
18child and the claimant's dependent who is claimed under section 151 (c) of the
19Internal Revenue Code, to attend any university, college, technical college or a school
20approved under s. 38.50 440.55, that is located in Wisconsin or to attend a public
21vocational school or public institution of higher education in Minnesota under the
22Minnesota-Wisconsin reciprocity agreement under s. 39.47, calculated as follows:
AB40,1301 23Section 1301. 71.05 (6) (b) 28. i. of the statutes is created to read:
AB40,644,1224 71.05 (6) (b) 28. i. For taxable years beginning after December 31, 2012, the
25dollar amounts in subd. 28. b., c., d., and g. shall be increased each year by a

1percentage equal to the percentage change between the U.S. consumer price index
2for all urban consumers, U.S. city average, for the month of August of the previous
3year and the U.S. consumer price index for all urban consumers, U.S. city average,
4for the month of August 2011, as determined by the federal department of labor,
5except that the adjustment may occur only if the resulting amount is greater than
6the corresponding amount that was calculated for the previous year. Each amount
7that is revised under this subd. 28. i. shall be rounded to the nearest multiple of $10
8if the revised amount is not a multiple of $10 or, if the revised amount is a multiple
9of $5, such an amount shall be increased to the next higher multiple of $10. The
10department of revenue shall annually adjust the changes in dollar amounts required
11under this subd. 28. i. and incorporate the changes into the income tax forms and
12instructions.
AB40,1302 13Section 1302. 71.05 (6) (b) 35. a. of the statutes is amended to read:
AB40,644,2314 71.05 (6) (b) 35. a. One hundred percent of the amount paid by the individual
15for medical care insurance, not including any amount that is paid with a premium
16assistance credit amount under 26 USC 36B
. In this subdivision, "medical care
17insurance" means a medical care insurance policy that covers the individual, his or
18her spouse, and the individual's dependents and provides surgical, medical, hospital,
19major medical, or other health service coverage, and includes payments made for
20medical care benefits under a self-insured plan, but "medical care insurance" does
21not include hospital indemnity policies or policies with ancillary benefits such as
22accident benefits or benefits for loss of income resulting from a total or partial
23inability to work because of illness, sickness, or injury.
AB40,1303 24Section 1303. 71.05 (6) (b) 38. a. of the statutes is amended to read:
AB40,645,10
171.05 (6) (b) 38. a. One hundred percent of the amount paid by the individual
2for medical care insurance, not including any amount that is paid with a premium
3assistance credit amount under 26 USC 36B
. In this subdivision, "medical care
4insurance" means a medical care insurance policy that covers the individual, his or
5her spouse, and the individual's dependents and provides surgical, medical, hospital,
6major medical, or other health service coverage, and includes payments made for
7medical care benefits under a self-insured plan, but "medical care insurance" does
8not include hospital indemnity policies or policies with ancillary benefits such as
9accident benefits or benefits for loss of income resulting from a total or partial
10inability to work because of illness, sickness, or injury.
AB40,1304 11Section 1304. 71.05 (6) (b) 42. a. of the statutes is amended to read:
AB40,645,2112 71.05 (6) (b) 42. a. One hundred percent of the amount paid by the individual
13for medical care insurance, not including any amount that is paid with a premium
14assistance credit amount under 26 USC 36B
. In this subdivision, "medical care
15insurance" means a medical care insurance policy that covers the individual, his or
16her spouse, and the individual's dependents and provides surgical, medical, hospital,
17major medical, or other health service coverage, and includes payments made for
18medical care benefits under a self-insured plan, but "medical care insurance" does
19not include hospital indemnity policies or policies with ancillary benefits such as
20accident benefits or benefits for loss of income resulting from a total or partial
21inability to work because of illness, sickness, or injury.
AB40,1305 22Section 1305. 71.05 (24) (a) 4. of the statutes is amended to read:
AB40,645,2423 71.05 (24) (a) 4. "Qualified new business venture" means a business certified
24under s. 238.20, 2011 stats., or s. 560.2085, 2009 stats.
AB40,1306 25Section 1306. 71.05 (24) (b) (intro.) of the statutes is amended to read:
AB40,646,4
171.05 (24) (b) (intro.) For taxable years beginning after December 31, 2010, and
2before January 1, 2014,
a claimant may subtract from federal adjusted gross income
3any amount, up to $10,000,000, of a long-term capital gain if the claimant does all
4of the following:
AB40,1307 5Section 1307. 71.05 (25) (title) of the statutes is amended to read:
AB40,646,76 71.05 (25) (title) Capital gains exclusion; Wisconsin-source assets qualified
7Wisconsin business
.
AB40,1308 8Section 1308. 71.05 (25) (a) 2. of the statutes is amended to read:
AB40,646,179 71.05 (25) (a) 2. "Qualifying gain" means the a long-term capital gain under
10the Internal Revenue Code
realized from the sale of any asset which is a Wisconsin
11capital asset in the year it is purchased by the claimant and for at least 2 of the
12subsequent 4 years; that is purchased
an investment made after December 31, 2010;
13that is
, and held for at least 5 uninterrupted years ; and that is treated as a long-term
14gain under the Internal Revenue Code
in a business that for the year of investment
15and at least 2 of the 4 subsequent years was a qualified Wisconsin business
; except
16that a qualifying gain may not include any amount for which the claimant claimed
17a subtraction under sub. (24) (b) or any gain described under sub. (26) (b) 1.
AB40,1309 18Section 1309. 71.05 (25) (a) 3. of the statutes is renumbered 71.05 (25) (a) 1s.
19and amended to read:
AB40,646,2220 71.05 (25) (a) 1s. "Qualified Wisconsin business" means a business certified by
21the Wisconsin Economic Development Corporation under s. 238.145, 2011 stats., or
22registered with the department under s. 73.03 (69)
.
AB40,1310 23Section 1310. 71.05 (25) (a) 4. of the statutes is repealed.
AB40,1311 24Section 1311. 71.05 (25) (b) (intro.) of the statutes is renumbered 71.05 (25)
25(b) and amended to read:
AB40,647,6
171.05 (25) (b) For taxable years beginning after December 31, 2015, for a
2Wisconsin capital asset that is purchased
an investment in a qualified Wisconsin
3business made
after December 31, 2010, and held for at least 5 uninterrupted years,
4a claimant may subtract from federal adjusted gross income the lesser of one of the
5following amounts
amount of the claimant's qualifying gain in the year to which the
6claim relates
, to the extent that it is not subtracted under sub. (6) (b) 9. or 9m.:
AB40,1312 7Section 1312. 71.05 (25) (b) 1. of the statutes is repealed.
AB40,1313 8Section 1313. 71.05 (25) (b) 2. of the statutes is repealed.
AB40,1314 9Section 1314. 71.05 (26) (title) of the statutes is amended to read:
AB40,647,1110 71.05 (26) (title) Income tax deferral; long-term Wisconsin capital assets
11qualified Wisconsin business.
AB40,1315 12Section 1315. 71.05 (26) (a) 4. of the statutes is amended to read:
AB40,647,1513 71.05 (26) (a) 4. "Qualified Wisconsin business" means a business certified by
14the Wisconsin Economic Development Corporation under s. 238.146, 2011 stats., or
15registered with the department under s. 73.03 (69)
.
AB40,1316 16Section 1316. 71.05 (26) (b) (intro.) of the statutes is amended to read:
AB40,647,1917 71.05 (26) (b) (intro.) For taxable years beginning after December 31, 2010, and
18before January 1, 2014,
a claimant may subtract from federal adjusted gross income
19any amount of a long-term capital gain if the claimant does all of the following:
AB40,1317 20Section 1317. 71.05 (26) (bm) of the statutes is created to read:
AB40,647,2321 71.05 (26) (bm) For taxable years beginning after December 31, 2013, a
22claimant may subtract from federal adjusted gross income any amount of a
23long-term capital gain if the claimant does all of the following:
AB40,647,2524 1. Within 180 days after the sale of the asset that generated the gain, invests
25all of the gain in a qualified Wisconsin business.
AB40,648,6
12. After making the investment as described under subd. 1., notifies the
2department, on a form prepared by the department, that the claimant will not
3declare the gain on the claimant's income tax return because the claimant has
4reinvested the capital gain as described under subd. 1. The form shall be sent to the
5department along with the claimant's income tax return for the year to which the
6claim relates.
AB40,1318 7Section 1318. 71.05 (26) (c) of the statutes is amended to read:
AB40,648,128 71.05 (26) (c) The basis of the investment described in par. (b) 2. shall be
9calculated by subtracting the gain described in par. (b) 1. from the amount of the
10investment described in par. (b) 2. The basis of the investment described in par. (bm)
111. shall be calculated by subtracting the gain described in par. (bm) 1. from the
12amount of the investment described in par. (bm) 1.
AB40,1319 13Section 1319. 71.05 (26) (d) of the statutes is amended to read:
AB40,648,1614 71.05 (26) (d) If a claimant defers the payment of income taxes on a capital gain
15under this subsection, the claimant may not use the gain described under par. (b) 1.
16to net capital gains and losses, as described under sub. (10) (c).
AB40,1320 17Section 1320. 71.05 (26) (f) of the statutes is amended to read:
AB40,648,2018 71.05 (26) (f) If a claimant claims the a subtraction for a capital gain under this
19subsection
par. (b) or (bm), the gain described under par. (b) 1. may not be used as
20a qualifying gain under sub. (25).
AB40,1321 21Section 1321. 71.06 (1p) (intro.) of the statutes is amended to read:
AB40,649,222 71.06 (1p) Fiduciaries, single individuals and heads of households; after 2000
232001 to 2012. (intro.) The tax to be assessed, levied and collected upon the taxable
24incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or
25reserve funds, and single individuals and heads of households shall be computed at

1the following rates for taxable years beginning after December 31, 2000, and before
2January 1, 2013
:
AB40,1322 3Section 1322. 71.06 (1q) of the statutes is created to read:
AB40,649,84 71.06 (1q) Fiduciaries, single individuals, and heads of households; after
52012.
(intro.) The tax to be assessed, levied, and collected upon the taxable incomes
6of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve
7funds, and single individuals and heads of households shall be computed at the
8following rates for taxable years beginning after December 31, 2012:
AB40,649,99 (a) On all taxable income from $0 to $7,500, 4.5 percent.
AB40,649,1110 (b) On all taxable income exceeding $7,500 but not exceeding $15,000, 5.94
11percent.
AB40,649,1312 (c) On all taxable income exceeding $15,000 but not exceeding $112,500, 6.36
13percent.
AB40,649,1514 (d) On all taxable income exceeding $112,500 but not exceeding $225,000, 6.75
15percent.
AB40,649,1616 (e) On all taxable income exceeding $225,000, 7.75 percent.
AB40,1323 17Section 1323. 71.06 (2) (g) (intro.) of the statutes is amended to read:
AB40,649,1918 71.06 (2) (g) (intro.) For joint returns, for taxable years beginning after
19December 31, 2000, and before January 1, 2013:
AB40,1324 20Section 1324. 71.06 (2) (h) (intro.) of the statutes is amended to read:
AB40,649,2221 71.06 (2) (h) (intro.) For married persons filing separately, for taxable years
22beginning after December 31, 2000, and before January 1, 2013:
AB40,1325 23Section 1325. 71.06 (2) (i) of the statutes is created to read:
AB40,649,2524 71.06 (2) (i) For joint returns, for taxable years beginning after
25December 31, 2012:
AB40,650,1
11. On all taxable income from $0 to $10,000, 4.5 percent.
AB40,650,32 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 5.94
3percent.
AB40,650,54 3. On all taxable income exceeding $20,000 but not exceeding $150,000, 6.36
5percent.
AB40,650,76 4. On all taxable income exceeding $150,000 but not exceeding $300,000, 6.75
7percent.
AB40,650,88 5. On all taxable income exceeding $300,000, 7.75 percent.
AB40,1326 9Section 1326. 71.06 (2) (j) of the statutes is created to read:
AB40,650,1110 71.06 (2) (j) For married persons filing separately, for taxable years beginning
11after December 31, 2012:
AB40,650,1212 1. On all taxable income from $0 to $5,000, 4.5 percent.
AB40,650,1413 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 5.94
14percent.
AB40,650,1615 3. On all taxable income exceeding $10,000 but not exceeding $75,000, 6.36
16percent.
AB40,650,1817 4. On all taxable income exceeding $75,000 but not exceeding $150,000, 6.75
18percent.
AB40,650,1919 5. On all taxable income exceeding $150,000, 7.75 percent.
AB40,1327 20Section 1327. 71.06 (2e) (a) of the statutes is amended to read:
AB40,651,2121 71.06 (2e) (a) For taxable years beginning after December 31, 1998, and before
22January 1, 2000, the maximum dollar amount in each tax bracket, and the
23corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2)
24(c) and (d), and for taxable years beginning after December 31, 1999, the maximum
25dollar amount in each tax bracket, and the corresponding minimum dollar amount

1in the next bracket, under subs. (1n), (1p) (a) to (c), (1q) (a) to (c), and (2) (e), (f), (g)
21. to 3., and (h) 1. to 3., (i) 1. to 3., and (j) 1. to 3., shall be increased each year by a
3percentage equal to the percentage change between the U.S. consumer price index
4for all urban consumers, U.S. city average, for the month of August of the previous
5year and the U.S. consumer price index for all urban consumers, U.S. city average,
6for the month of August 1997, as determined by the federal department of labor,
7except that for taxable years beginning after December 31, 2000, and before January
81, 2002, the dollar amount in the top bracket under subs. (1p) (c) and (d), (2) (g) 3.
9and 4. and (h) 3. and 4. shall be increased by a percentage equal to the percentage
10change between the U.S. consumer price index for all urban consumers, U.S. city
11average, for the month of August of the previous year and the U.S. consumer price
12index for all urban consumers, U.S. city average, for the month of August 1999, as
13determined by the federal department of labor, except that for taxable years
14beginning after December 31, 2011, the adjustment may occur only if the resulting
15amount is greater than the corresponding amount that was calculated for the
16previous year. Each amount that is revised under this paragraph shall be rounded
17to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the
18revised amount is a multiple of $5, such an amount shall be increased to the next
19higher multiple of $10. The department of revenue shall annually adjust the changes
20in dollar amounts required under this paragraph and incorporate the changes into
21the income tax forms and instructions.
AB40,1328 22Section 1328. 71.06 (2e) (b) of the statutes is amended to read:
AB40,652,1423 71.06 (2e) (b) For taxable years beginning after December 31, 2009, the
24maximum dollar amount in each tax bracket, and the corresponding minimum dollar
25amount in the next bracket, under subs. (1p) (d), (1q) (d), and (2) (g) 4. and, (h) 4., (i)

14., and (j) 4.,
and the dollar amount in the top bracket under subs. (1p) (e), (1q) (e),
2and (2) (g) 5. and, (h) 5., (i) 5., and (j) 5., shall be increased each year by a percentage
3equal to the percentage change between the U.S. consumer price index for all urban
4consumers, U.S. city average, for the month of August of the previous year and the
5U.S. consumer price index for all urban consumers, U.S. city average, for the month
6of August 2008, as determined by the federal department of labor, except that for
7taxable years beginning after December 31, 2011, the adjustment may occur only if
8the resulting amount is greater than the corresponding amount that was calculated
9for the previous year. Each amount that is revised under this paragraph shall be
10rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10
11or, if the revised amount is a multiple of $5, such an amount shall be increased to the
12next higher multiple of $10. The department of revenue shall annually adjust the
13changes in dollar amounts required under this paragraph and incorporate the
14changes into the income tax forms and instructions.
AB40,1329 15Section 1329. 71.06 (2e) (c) of the statutes is created to read:
AB40,652,2116 71.06 (2e) (c) Each amount that is revised under this subsection shall be
17rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10
18or, if the revised amount is a multiple of $5, such an amount shall be increased to the
19next higher multiple of $10. The department of revenue shall annually adjust the
20changes in dollar amounts required under this subsection and incorporate the
21changes into the income tax forms and instructions.
AB40,1330 22Section 1330. 71.06 (2m) of the statutes is amended to read:
AB40,653,223 71.06 (2m) Rate changes. If a rate under sub. (1), (1m), (1n), (1p), (1q), or (2)
24changes during a taxable year, the taxpayer shall compute the tax for that taxable

1year by the methods applicable to the federal income tax under section 15 of the
2internal revenue code Internal Revenue Code.
AB40,1331 3Section 1331. 71.06 (2s) (d) of the statutes is amended to read:
AB40,653,164 71.06 (2s) (d) For taxable years beginning after December 31, 2000, with
5respect to nonresident individuals, including individuals changing their domicile
6into or from this state, the tax brackets under subs. (1p), (1q), and (2) (g) and, (h), (i),
7and (j)
shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted
8gross income and the denominator of which is federal adjusted gross income. In this
9paragraph, for married persons filing separately "adjusted gross income" means the
10separate adjusted gross income of each spouse, and for married persons filing jointly
11"adjusted gross income" means the total adjusted gross income of both spouses. If
12an individual and that individual's spouse are not both domiciled in this state during
13the entire taxable year, the tax brackets under subs. (1p), (1q), and (2) (g) and, (h),
14(i), and (j)
on a joint return shall be multiplied by a fraction, the numerator of which
15is their joint Wisconsin adjusted gross income and the denominator of which is their
16joint federal adjusted gross income.
AB40,1332 17Section 1332. 71.07 (2dj) (am) 4h. of the statutes is amended to read:
AB40,653,2318 71.07 (2dj) (am) 4h. Modify section 51 (a) of the internal revenue code Internal
19Revenue Code
so that the amount of the credit is 25% of the qualified first-year
20wages if the wages are paid to an applicant for a Wisconsin works Works employment
21position for service either in an unsubsidized position or in a trial job under s. 49.147
22(3), 2011 stats., and so that the amount of the credit is 20% of the qualified first-year
23wages if the wages are not paid to such an applicant.
AB40,1333 24Section 1333. 71.07 (2dx) (a) 4. of the statutes is amended to read:
AB40,654,7
171.07 (2dx) (a) 4. "Full-time job" means a regular, nonseasonal full-time
2position in which an individual, as a condition of employment, is required to work at
3least 2,080 hours per year, including paid leave and holidays, and for which the
4individual receives pay that is equal to at least 150% of the federal minimum wage
5and receives benefits that are not required by federal or state law. "Full-time job"
6does not include initial training before an employment position begins
has the
7meaning given in s. 238.30 (2m)
.
AB40,1334 8Section 1334. 71.07 (2dx) (a) 5. of the statutes is amended to read:
AB40,654,229 71.07 (2dx) (a) 5. "Member of a targeted group" means a person who resides
10in an area designated by the federal government as an economic revitalization area,
11a person who is employed in an unsubsidized job but meets the eligibility
12requirements under s. 49.145 (2) and (3) for a Wisconsin Works employment position,
13a person who is employed in a trial job, as defined in s. 49.141 (1) (n), 2011 stats., or
14in a real work, real pay project position under s. 49.147 (3m) trial employment match
15program job, as defined in s. 49.141 (1) (n)
, a person who is eligible for child care
16assistance under s. 49.155, a person who is a vocational rehabilitation referral, an
17economically disadvantaged youth, an economically disadvantaged veteran, a
18supplemental security income recipient, a general assistance recipient, an
19economically disadvantaged ex-convict, a qualified summer youth employee, as
20defined in 26 USC 51 (d) (7), a dislocated worker, as defined in 29 USC 2801 (9), or
21a food stamp recipient, if the person has been certified in the manner under sub. (2dj)
22(am) 3. by a designated local agency, as defined in sub. (2dj) (am) 2.
AB40,1335 23Section 1335. 71.07 (2dx) (b) 2. of the statutes is amended to read:
AB40,655,324 71.07 (2dx) (b) 2. The amount determined by multiplying the amount
25determined under s. 238.385 (1) (b) or s. 560.785 (1) (b), 2009 stats., by the number

1of full-time jobs created in a development zone and filled by a member of a targeted
2group and by then subtracting the subsidies paid under s. 49.147 (3) (a) or the
3subsidies and reimbursements paid under s. 49.147 (3m) (c)
for those jobs.
AB40,1336 4Section 1336. 71.07 (2dx) (b) 3. of the statutes is amended to read:
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