JR4 AB1: Bill Text Engrossed

AB1-engrossed,20 Section 20. 71.05 (6) (b) 47. dm. of the statutes is created to read:

AB1-engrossed,10,11 71.05 (6) (b) 47. dm. No person may claim a deduction under this subdivision for taxable years beginning after December 31, 2013, except that a claimant who is first eligible to claim a deduction under this subdivision for a taxable year beginning after December 31, 2012, and before January 1, 2014, may claim the deduction the following taxable year.

AB1-engrossed,21 Section 21. 71.05 (8) (b) of the statutes, as affected by 2013 Wisconsin Act 20, is renumbered 71.05 (8) (b) 1.

AB1-engrossed,22 Section 22. 71.05 (8) (b) 2. of the statutes is created to read:

AB1-engrossed,10,18 71.05 (8) (b) 2. The taxpayer need not make the offset against Wisconsin modified taxable income of the 2 years preceding the loss, as provided under subd. 1., if the taxpayer chooses not to carry back the net operating loss to the 2 years preceding the loss.

AB1-engrossed,23 Section 23. 71.05 (8) (c) of the statutes is created to read:

AB1-engrossed,10,21 71.05 (8) (c) The department shall not pay interest on any overpayment that results from the carry-back of a net operating loss.

AB1-engrossed,24 Section 24. 71.06 (1q) (a) of the statutes, as created by 2013 Wisconsin Act 20, is amended to read:

AB1-engrossed,10,25 71.06 (1q) (a) On all taxable income from $0 to $7,500, 4.40 percent, except that for taxable years beginning after December 31, 2013, 4.0 percent.

AB1-engrossed,25 Section 25. 71.06 (2) (i) 1. of the statutes, as created by 2013 Wisconsin Act 20, is amended to read:

AB1-engrossed,11,4 71.06 (2) (i) 1. On all taxable income from $0 to $10,000, 4.40 percent, except that for taxable years beginning after December 31, 2013, 4.0 percent.

AB1-engrossed,26 Section 26. 71.06 (2) (j) 1. of the statutes, as created by 2013 Wisconsin Act 20, is amended to read:

AB1-engrossed,11,8 71.06 (2) (j) 1. On all taxable income from $0 to $5,000, 4.40 percent, except that for taxable years beginning after December 31, 2013, 4.0 percent.

AB1-engrossed,27 Section 27. 71.07 (4k) (b) 1. of the statutes, as created by 2013 Wisconsin Act 20, is amended to read:

AB1-engrossed,12,5 71.07 (4k) (b) 1. Subject to the limitations provided in this subsection, and except as provided in subds. 2. and 3., for taxable years beginning after December 31, 2012, an individual, a partner of a partnership, a shareholder of a tax-option corporation, or a member of a limited liability company may claim a credit against the tax imposed under s. 71.02 or 71.08, as allocated under par. (d), an amount equal to 5 percent of the amount obtained by subtracting from the individual's, partnership's, tax-option corporation's, or limited liability company's qualified research expenses, as defined in section 41 of the Internal Revenue Code, except that "qualified research expenses" includes only expenses incurred by the individual, partnership, tax-option corporation, or the limited liability company, incurred for research conducted in this state for the taxable year, except that a taxpayer may elect the alternative computation under section 41 (c) (4) of the Internal Revenue Code and that election applies until the department permits its revocation, except as provided in par. (c), and except that "qualified research expenses" does not include compensation used in computing the credit under subs. (2dj) and (2dx), the entity's base amount, as defined in section 41 (c) of the Internal Revenue Code, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under ss. 71.04 (7) (b) 1. and 2., (df), (dh), (dj), and (dk). Section 41 (h) of the Internal Revenue Code does not apply to the credit under this subdivision.

AB1-engrossed,28 Section 28. 71.07 (5i) (c) 3. of the statutes is created to read:

AB1-engrossed,12,8 71.07 (5i) (c) 3. No credit may be claimed under this subsection based on an amount paid under par. (b) after December 31, 2013.

AB1-engrossed,29 Section 29. 71.07 (5m) (a) 4. of the statutes is amended to read:

AB1-engrossed,12,11 71.07 (5m) (a) 4. "Net tax liability" means a claimant's income tax liability after he or she completes the computations listed in s. 71.10 (4) (a) to (dr) (d).

AB1-engrossed,30 Section 30. 71.07 (5n) (b) (intro.) of the statutes is amended to read:

AB1-engrossed,12,17 71.07 (5n) (b) Filing claims. (intro.) Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. ss. 71.02 and 71.08, up to the amount of the tax, an amount equal to one of the following percentages of the claimant's eligible qualified production activities income in the taxable year:

AB1-engrossed,31 Section 31. 71.07 (9r) (a) of the statutes is amended to read:

AB1-engrossed,13,3 71.07 (9r) (a) For taxable years beginning on or after August 1, 1988, any natural person may credit against taxes otherwise due under s. 71.02 or 71.08 an amount equal to 25% of the costs of preservation or rehabilitation of historic property located in this state, including architectural fees and costs incurred in preparing nomination forms for listing in the national register of historic places in Wisconsin or the state register of historic places, if the nomination is made within 5 years prior to submission of a preservation or rehabilitation plan under par. (b) 3. b., and if the physical work of construction or destruction in preparation for construction begins after December 31, 1988, except that the credit may not exceed $10,000, or $5,000 for married persons filing separately, for any preservation or rehabilitation project.

AB1-engrossed,32 Section 32 . 71.08 (1) (intro.) of the statutes, as affected by 2013 Wisconsin Act 62, is amended to read:

AB1-engrossed,13,15 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married couple filing jointly, trust, or estate under s. 71.02, not considering the credits under ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2dy), (3m), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (5b), (5d), (5e), (5f), (5h), (5i), (5j), (5n), (6), (6e), (8r), (9e), and (9m), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (2m), (3), (3n), (3t), and (3w), 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (2m), (3), (3n), (3t), and (3w), 71.57 to 71.61, and 71.613 and subch. VIII and payments to other states under s. 71.07 (7), is less than the tax under this section, there is imposed on that natural person, married couple filing jointly, trust or estate, instead of the tax under s. 71.02, an alternative minimum tax computed as follows:

AB1-engrossed,33 Section 33 . 71.08 (1) (intro.) of the statutes, as affected by 2013 Wisconsin Acts 62 and .... (this act), is amended to read:

AB1-engrossed,14,2 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married couple filing jointly, trust, or estate under s. 71.02, not considering the credits under ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2dy), (3m), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (4k), (5b), (5d), (5e), (5f), (5h), (5i), (5j), (5n), (6), (6e), (8r), (9e), and (9m), and (9r), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (2m), (3), (3n), (3t), and (3w), 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (2m), (3), (3n), (3t), and (3w), 71.57 to 71.61, and 71.613 and subch. VIII and payments to other states under s. 71.07 (7), is less than the tax under this section, there is imposed on that natural person, married couple filing jointly, trust or estate, instead of the tax under s. 71.02, an alternative minimum tax computed as follows:

AB1-engrossed,34 Section 34. 71.10 (4) (cr) of the statutes is renumbered 71.10 (4) (fn).

AB1-engrossed,35 Section 35. 71.10 (4) (dr) of the statutes is renumbered 71.10 (4) (fp).

AB1-engrossed,36 Section 36. 71.10 (4) (er) of the statutes, as created by 2013 Wisconsin Act 20, is renumbered 71.10 (4) (fr).

AB1-engrossed,36d Section 36d. 71.26 (4) (a) of the statutes is amended to read:

AB1-engrossed,14,24 71.26 (4) (a) Except as provided in par. (b), a corporation, except a tax-option corporation or an insurer to which s. 71.45 (4) applies, may offset against its Wisconsin net business income any Wisconsin net business loss sustained in any of the next 15 20 preceding taxable years, if the corporation was subject to taxation under this chapter in the taxable year in which the loss was sustained, to the extent not offset by other items of Wisconsin income in the loss year and by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed. For purposes of this subsection Wisconsin net business income or loss shall consist of all the income attributable to the operation of a trade or business in this state, less the business expenses allowed as deductions in computing net income. The Wisconsin net business income or loss of corporations engaged in business within and without the state shall be determined under s. 71.25 (6) and (10) to (12). Nonapportionable losses having a Wisconsin situs under s. 71.25 (5) (b) shall be included in Wisconsin net business loss; and nonapportionable income having a Wisconsin situs under s. 71.25 (5) (b), whether taxable or exempt, shall be included in other items of Wisconsin income and Wisconsin net business income for purposes of this subsection.

AB1-engrossed,37 Section 37. 71.28 (5i) (c) 3. of the statutes is created to read:

AB1-engrossed,15,2 71.28 (5i) (c) 3. No credit may be claimed under this subsection based on an amount paid under par. (b) after December 31, 2013.

AB1-engrossed,38 Section 38. 71.28 (9s) (d) 3. of the statutes, as created by 2013 Wisconsin Act 20, is amended to read:

AB1-engrossed,15,10 71.28 (9s) (d) 3. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013. Credits under this subsection for taxable years that begin before January 1, 2014, may be carried forward to taxable years that begin after December 31, 2013, except that a claimant who is first eligible to claim a credit under this subsection for taxable years beginning after December 31, 2012, and before January 1, 2014, may claim the credit in the following taxable year.

AB1-engrossed,38d Section 38d. 71.45 (4) (a) of the statutes is amended to read:

AB1-engrossed,15,21 71.45 (4) (a) Except as provided in par. (b), insurers computing tax under this subchapter may subtract from Wisconsin net income any Wisconsin net business loss sustained in any of the next 15 20 preceding taxable years to the extent not offset by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed and computed without regard to sub. (2) (a) 8. and 9. and this subsection and limited to the amount of net income, but no loss incurred for a taxable year before taxable year 1987 by a nonprofit service plan of sickness care under ch. 148, or dental care under s. 447.13 may be treated as a net business loss of the successor service insurer under ch. 613 operating by virtue of s. 148.03 or 447.13.

AB1-engrossed,39 Section 39. 71.47 (5i) (c) 3. of the statutes is created to read:

AB1-engrossed,15,24 71.47 (5i) (c) 3. No credit may be claimed under this subsection based on an amount paid under par. (b) after December 31, 2013.

AB1-engrossed,40 Section 40. 71.47 (9s) (d) 3. of the statutes, as created by 2013 Wisconsin Act 20, is amended to read:

AB1-engrossed,16,8 71.47 (9s) (d) 3. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013. Credits under this subsection for taxable years that begin before January 1, 2014, may be carried forward to taxable years that begin after December 31, 2013, except that a claimant who is first eligible to claim a credit under this subsection for taxable years beginning after December 31, 2012, and before January 1, 2014, may claim the credit in the following taxable year.

AB1-engrossed,41 Section 41. 71.52 (6) of the statutes is amended to read:

AB1-engrossed,17,23 71.52 (6) "Income" means the sum of Wisconsin adjusted gross income and the following amounts, to the extent not included in Wisconsin adjusted gross income: maintenance payments (except foster care maintenance and supplementary payments excludable under section 131 of the internal revenue code), support money, cash public assistance (not including credit granted under this subchapter and amounts under s. 46.27), cash benefits paid by counties under s. 59.53 (21), the gross amount of any pension or annuity (including railroad retirement benefits, all payments received under the federal social security act and veterans disability pensions), nontaxable interest received from the federal government or any of its instrumentalities, nontaxable interest received on state or municipal bonds, worker's compensation, unemployment insurance, the gross amount of "loss of time" insurance, compensation and other cash benefits received from the United States for past or present service in the armed forces, scholarship and fellowship gifts or income, capital gains, gain on the sale of a personal residence excluded under section 121 of the internal revenue code, dividends, income of a nonresident or part-year resident who is married to a full-year resident, housing allowances provided to members of the clergy, the amount by which a resident manager's rent is reduced, nontaxable income of an American Indian, nontaxable income from sources outside this state and nontaxable deferred compensation. Intangible drilling costs, depletion allowances and depreciation, including first-year depreciation allowances under section 179 of the internal revenue code, amortization, contributions to individual retirement accounts under section 219 of the internal revenue code, contributions to Keogh plans, net operating loss carry-backs and carry-forwards and capital loss carry-forwards deducted in determining Wisconsin adjusted gross income shall be added to "income". "Income" does not include gifts from natural persons, cash reimbursement payments made under title XX of the federal social security act, surplus food or other relief in kind supplied by a governmental agency, the gain on the sale of a personal residence deferred under section 1034 of the internal revenue code or nonrecognized gain from involuntary conversions under section 1033 of the internal revenue code. Amounts not included in adjusted gross income but added to "income" under this subsection in a previous year and repaid may be subtracted from income for the year during which they are repaid. Scholarship and fellowship gifts or income that are included in Wisconsin adjusted gross income and that were added to household income for purposes of determining the credit under this subchapter in a previous year may be subtracted from income for the current year in determining the credit under this subchapter. A marital property agreement or unilateral statement under ch. 766 has no effect in computing "income" for a person whose homestead is not the same as the homestead of that person's spouse.

AB1-engrossed,41d Section 41d. 71.98 (3) of the statutes, as created by 2013 Wisconsin Act 20, is amended to read:

AB1-engrossed,18,7 71.98 (3) Depreciation, depletion, and amortization. For taxable years beginning after December 31, 2013, and for purposes of computing depreciation, depletion, and amortization, the Internal Revenue Code means the federal Internal Revenue Code in effect on January 1, 2014. For taxable years beginning after December 31, 2013, and for purposes of computing depletion, the Internal Revenue code means the federal Internal Revenue code in effect for the year in which the property is placed in service.

AB1-engrossed,41e Section 41e. 77.54 (9d) of the statutes is created to read:

AB1-engrossed,18,17 77.54 (9d) The sales price from the sales of and the storage, use, or other consumption of tangible personal property, or items or property under s. 77.52 (1) (b) or (c), sold to a construction contractor who, in fulfillment of a real property construction activity, transfers the tangible personal property, or item, or property under s. 77.52 (1) (b) or (c), to an entity described under sub. (9a) (b) or (f), if such tangible personal property, item, or property becomes a component of a facility in this state that is owned by the entity. In this subsection, "facility" means any building, shelter, parking lot, parking garage, athletic field, athletic park, storm sewer, or water supply system, but does not include a highway, street, or road.

AB1-engrossed,42 Section 42. 77.54 (61) (intro.), (a) and (b) of the statutes, as created by 2013 Wisconsin Act 20, are amended to read:

AB1-engrossed,19,2 77.54 (61) (intro.) The sales price from the sale of and the storage, use, or other consumption of the following by a person primarily engaged, as determined by the department, in commercial printing, not including screen printing or book printing, without publishing, except for gray goods; printing, or printing and binding, books or pamphlets without publishing the books or pamphlets; or performing prepress and postpress services in support of printing activities book printing, or support activities for printing described under 323111, 323117, and 323120 of the North American Industry Classification System:

AB1-engrossed,19,5 (a) Computers and servers that are used primarily to store copies of the product that are sent to a digital printer, a platemaking machine, or a printing press or used primarily in prepress or postpress activities.

AB1-engrossed,19,8 (b) Tangible personal property purchased from out-of-state sellers that are temporarily stored, remain idle, and not used in this state for not more than 180 days and that are then delivered and used solely outside of this state.

AB1-engrossed,43 Section 43. 77.54 (61) (c) of the statutes is created to read:

AB1-engrossed,19,10 77.54 (61) (c) In this subsection:

AB1-engrossed,19,12 1. "Postpress activities" include paper bronzing, die-cutting, edging, embossing, folding, gilding, gluing, and indexing.

AB1-engrossed,19,14 2. "Prepress activities" include making print-ready plates, typesetting, trade binding, and sample mounting.

AB1-engrossed,19,15 3. "Temporarily" means not more than 180 days.

AB1-engrossed,44 Section 44. 238.16 (3) (intro.) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB1-engrossed,19,24 238.16 (3) Eligibility for tax benefits. (intro.) A person certified under sub. (2) may receive tax benefits under this section if, in each year for which the person claims tax benefits under this section, the person increases net employment in this state in the person's business above the net employment in this state in the person's business during the year before the person was certified under sub. (2), as determined by the corporation under its policies and procedures, and one of the following applies:

AB1-engrossed,9143 Section 9143. Nonstatutory provisions; Technical College System.

AB1-engrossed,20,4 (1) Aid notification. By October 15, 2014, the state technical college system board shall notify each technical college district board of the amount of aid it will receive under section 38.16 (4) of the statutes, as created by this act, on February 20, 2015.

AB1-engrossed,9337 Section 9337. Initial applicability; Revenue.

AB1-engrossed,20,7 (1) Commercial printing. The treatment of section 77.54 (61) (intro.), (a), (b), and (c) of the statutes first applies retroactively to sales made on October 1, 2013.

AB1-engrossed,20,9 (1m) Building materials. The treatment of section 77.54 (9d) of the statutes first applies to contracts entered into on July 1, 2015.

AB1-engrossed,20,13 (2) Research and rehabilitation credits. The treatment of sections 71.07 (4k) (b) 1., (5m) (a) 4., and (9r) (a), 71.08 (1) (intro.) (as it relates to the state historic rehabilitation credit and the research credit), and 71.10 (4) (dr) and (er) of the statutes first applies to taxable years beginning on January 1, 2014.

AB1-engrossed,20,14 (3) Carry-backs.

AB1-engrossed,20,17 (a) The renumbering of section 71.05 (8) (b) of the statutes and the creation of section 71.05 (8) (b) 2. of the statutes first apply to taxable years beginning on January 1, 2014.

AB1-engrossed,20,19 (am) The treatment of section 71.52 (6) of the statutes first applies retroactively to taxable years beginning on January 1, 2012.

AB1-engrossed,20,21 (4) Overpayments. The treatment of section 71.05 (8) (c) of the statutes first applies to refunds paid on January 1, 2014.

AB1-engrossed,20,25 (5) Manufacturing and agriculture credits. The treatment of sections 71.07 (5n) (b) (intro.), 71.08 (1) (intro.) (as it relates to the manufacturing and agriculture credit), and 71.10 (4) (cr) of the statutes first applies retroactively to taxable years beginning on January 1, 2013.

AB1-engrossed,21,3 (5m) Net operating losses; depletion. The treatment of sections 71.26 (4) (a), 71.45 (4) (a), and 71.98 (3) of the statutes first applies to taxable years beginning on January 1, 2014.

AB1-engrossed,9400 Section 9400. Effective dates; general. Except as otherwise provided in Sections 9401 to 9452 of this act, this act takes effect on the day after publication.

AB1-engrossed,9437 Section 9437. Effective dates; Revenue.

AB1-engrossed,21,8 (1) Commercial printing. The treatment of section 77.54 (61) (intro.), (a), (b), and (c) of the statutes takes effect retroactively to October 1, 2013.

AB1-engrossed,21,10 (1m) Building materials. The treatment of section 77.54 (9d) of the statutes takes effect on July 1, 2015.

AB1-engrossed,21,13 (2) Manufacturing and agriculture credits. The treatment of sections 71.07 (5n) (b) (intro.), 71.08 (1) (intro.) (by Section 32), and 71.10 (4) (cr) of the statutes takes effect retroactively on January 1, 2013.

AB1-engrossed,21,16 (3) Research and rehabilitation credits. The treatment of sections 71.07 (4k) (b) 1., (5m) (a) 4., and (9r) (a), 71.08 (1) (intro.) (by Section 33), and 71.10 (4) (dr) and (er) of the statutes takes effect on January 1, 2014.

AB1-engrossed,21,18 (3d) Carry-backs. The treatment of section 71.52 (6) of the statutes takes effect retroactively to January 1, 2012.

AB1-engrossed,21,19 (End)