Amendment ASA1-AB64

AB64-ASA1,603,11 4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by section 4007 (b) of P.L. 114-41, section 1102 of P.L. 114-74, sections 105, 111, 113 to 115, 133, 301, 302, 304, 305, 308, 311, 313 to 323, 325, 331, and 343 to 345 of division Q of P.L. 114-113 first apply for taxable years beginning after December 31, 2016.

AB64-ASA1,1012 Section 1012 . 71.04 (7) (dh) 2. b. of the statutes is amended to read:

AB64-ASA1,603,15 71.04 (7) (dh) 2. b. The service relates to tangible personal property that is located in this state at the time that the service is received or tangible personal property that is delivered directly or indirectly to customers in this state.

AB64-ASA1,1013 Section 1013 . 71.04 (7) (dh) 2. c. of the statutes is amended to read:

AB64-ASA1,603,18 71.04 (7) (dh) 2. c. The service is provided to purchased by an individual who is physically present in this state at the time that the service is received.

AB64-ASA1,1013d Section 1013d. 71.04 (7) (dh) 3. of the statutes is amended to read:

AB64-ASA1,603,23 71.04 (7) (dh) 3. If Except as provided in subd. 4., if the purchaser of a service receives the benefit of a service in more than one state, the gross receipts from the performance of the service are included in the numerator of the sales factor according to the portion of the service received in this state.

AB64-ASA1,1013e Section 1013e. 71.04 (7) (dh) 4. of the statutes is created to read:

AB64-ASA1,604,5 71.04 (7) (dh) 4. For taxable years beginning after December 31, 2018, a broadcaster's gross receipts from advertising are in this state only if the advertiser's commercial domicile is in this state. With regard to a broadcaster who is a member of a combined group, as defined in s. 71.255 (1) (a), this subdivision does not apply to the gross receipts of the members who are not broadcasters.

AB64-ASA1,1013f Section 1013f. 71.04 (7) (dj) 1. (intro.) of the statutes is amended to read:

AB64-ASA1,604,12 71.04 (7) (dj) 1. (intro.) Except as provided in subd. 2. and par. (df), gross royalties and other gross receipts received for the use or license of intangible property, including patents, copyrights, trademarks, trade names, service names, franchises, licenses, plans, specifications, blueprints, processes, techniques, formulas, designs, layouts, patterns, drawings, manuals, technical know-how, contracts, and customer lists, are sales in this state if any of the following applies:

AB64-ASA1,1013g Section 1013g. 71.04 (7) (dj) 1. a. of the statutes is amended to read:

AB64-ASA1,604,20 71.04 (7) (dj) 1. a. The purchaser or licensee uses the intangible property in the operation of a trade or business at a location in this state. If Except as provided in subd. 2., if the purchaser or licensee uses the intangible property in the operation of a trade or business in more than one state, the gross royalties and other gross receipts from the use of the intangible property shall be divided between those states having jurisdiction to impose an income tax on the taxpayer in proportion to the use of the intangible property in those states.

AB64-ASA1,1013h Section 1013h. 71.04 (7) (dj) 2. of the statutes is created to read:

AB64-ASA1,605,4 71.04 (7) (dj) 2. For taxable years beginning after December 31, 2018, a broadcaster's gross royalties and other gross receipts received for the use or license of intangible property are sales in this state only if the commercial domicile of the purchaser or licensee is in this state and the purchaser or licensee has a direct connection or relationship with the broadcaster pursuant to a contract under which the royalties or receipts are derived. With regard to a broadcaster who is a member of a combined group, as defined in s. 71.255 (1) (a), this subdivision does not apply to the gross royalties and receipts of the members who are not broadcasters.

AB64-ASA1,1013i Section 1013i. 71.04 (7) (g) of the statutes is created to read:

AB64-ASA1,605,9 71.04 (7) (g) 1. For taxable years beginning after December 31, 2018, the amount of a broadcaster's gross receipts from advertising and the use or license of intangible property, as determined under pars. (dh) 4. and (dj) 2., shall be adjusted as follows:

AB64-ASA1,605,11 a. Determine the amount of the numerator of the sales factor for a broadcaster as provided in this subsection.

AB64-ASA1,605,14 b. Multiply .01 by the total amount of the domestic gross receipts of the broadcaster from advertising and royalties and other gross receipts for the use or license of intangible property.

AB64-ASA1,605,17 c. Determine the numerator of the sales for a broadcaster by substituting the amount determined under subd. 1. b. for the total amount determined under subd. 1. a.

AB64-ASA1,605,23 d. Except as provided in subd. 1. e., if the amount of the numerator determined under subd. 1. c. is more than the amount determined under subd. 1. a., substitute the amount of total gross receipts determined under subd. 1. b. for the total amount of the gross receipts determined under subd. 1. a. For purposes of this subd. 1. d., the amount of the numerator for a broadcaster is the amount determined under subd. 1. c.

AB64-ASA1,606,2 e. If the amount of the numerator computed under subd. 1. c. is more than 140 percent of the amount determined under subd. 1. a., adjust the total amount of the gross receipts under subd. 1. a. so that the amount of the numerator for a broadcaster is 140 percent of the numerator otherwise determined under subd. 1. a.

AB64-ASA1,606,3 2. The department may promulgate rules to administer this paragraph.

AB64-ASA1,1014 Section 1014 . 71.05 (1) (c) 13. of the statutes is created to read:

AB64-ASA1,606,6 71.05 (1) (c) 13. An entity described under, or an entity whose bonds are issued under, s. 66.1201, 66.1333, or 66.1335.

AB64-ASA1,1015 Section 1015 . 71.05 (6) (a) 26. (intro.) of the statutes is amended to read:

AB64-ASA1,606,10 71.05 (6) (a) 26. (intro.) For the taxable year in which a distribution is received, all of the following amounts distributed from a college savings account, as described in s. 16.641 224.50:

AB64-ASA1,1016 Section 1016 . 71.05 (6) (a) 26. c. of the statutes is amended to read:

AB64-ASA1,606,17 71.05 (6) (a) 26. c. To the extent that an amount is not otherwise added back under this subdivision, any amount withdrawn from a college savings account, as described in s. 16.641 224.50, for any purpose if the withdrawn amount was contributed to the account within 365 days of the day on which the amount was withdrawn from such an account and if the withdrawn amount was previously subtracted under par. (b) 32.

AB64-ASA1,1016v Section 1016v. 71.05 (6) (b) 22. of the statutes is amended to read:

AB64-ASA1,606,25 71.05 (6) (b) 22. For taxable years beginning after December 31, 1995, an amount up to $5,000 that is expended during the period that consists of the year to which the claim relates and the prior 2 taxable years, by a full-year resident of this state who is an adoptive parent, for adoption fees, court costs or legal fees relating to the adoption of a child, for whom a final order of adoption has been entered under s. 48.91 (3) or by an order of a court of any other state, or upon registration of a foreign adoption under s. 48.97 (2), during the taxable year.

AB64-ASA1,1017 Section 1017. 71.05 (6) (b) 23. of the statutes is amended to read:

AB64-ASA1,607,5 71.05 (6) (b) 23. Any increase in value of a tuition unit that is purchased under a tuition contract under s. 16.64 224.48, except that the subtraction under this subdivision may not be claimed by any individual who received a refund under s. 16.64 224.48 (7) (a) 2., 3. or 4.

AB64-ASA1,1018 Section 1018 . 71.05 (6) (b) 28. (intro.) of the statutes is amended to read:

AB64-ASA1,607,13 71.05 (6) (b) 28. (intro.) An amount paid by a claimant for tuition expenses and mandatory student fees for a student who is the claimant or who is the claimant's child and the claimant's dependent who is claimed under section 151 (c) of the Internal Revenue Code, to attend any university, college, technical college or a school approved under s. 38.50 440.52, that is located in Wisconsin or to attend a public vocational school or public institution of higher education in Minnesota under the Minnesota-Wisconsin reciprocity agreement under s. 39.47, calculated as follows:

AB64-ASA1,1019 Section 1019 . 71.05 (6) (b) 28. h. of the statutes is amended to read:

AB64-ASA1,607,22 71.05 (6) (b) 28. h. No modification may be claimed under this subdivision for an amount paid for tuition expenses and mandatory student fees, as described under this subdivision, if the source of the payment is an amount withdrawn from a college savings account, as described in s. 16.641 224.50 or from a college tuition and expenses program, as described in s. 16.64 224.48, and if the owner of the account or a parent, grandparent, great-grandparent, aunt, or uncle of the beneficiary, who contributed to the account, has claimed a deduction under subd. 32. or 33. that relates to such an amount.

AB64-ASA1,1020 Section 1020 . 71.05 (6) (b) 31. of the statutes is amended to read:

AB64-ASA1,608,2 71.05 (6) (b) 31. Any increase in value of a college savings account, as described in s. 16.641 224.50, except that the subtraction under this subdivision may not be claimed by any individual who has made a nonqualified withdrawal, as described in s. 16.641 224.50 (2) (e).

AB64-ASA1,1021 Section 1021 . 71.05 (6) (b) 32. (intro.) of the statutes is amended to read:

AB64-ASA1,608,10 71.05 (6) (b) 32. (intro.) An amount paid into a college savings account, as described in s. 16.641 224.50, in the taxable year in which the contribution is made or on or before the 15th day of the 4th month beginning after the close of a taxpayer's taxable year to which this subtraction relates, by the owner of the account or by any other individual, for the benefit of any beneficiary of an account, calculated as follows, except that each amount that is subtracted under this subdivision may be subtracted only once:

AB64-ASA1,1022 Section 1022 . 71.05 (6) (b) 32m. of the statutes is amended to read:

AB64-ASA1,608,18 71.05 (6) (b) 32m. Consistent with the limitations specified in subd. 32., for rollovers occurring after April 15, 2015, any principal amount rolled over to a college savings account, as described in s. 16.641 224.50, from another state's qualified tuition program, as described in 26 USC 529 (c) (3) (C) (i). Amounts eligible for the subtraction under this subdivision that are in excess of the annual limits specified under subd. 32. may be carried forward to future taxable years of the taxpayer without limitation, other than the limits specified in subd. 32. ae. and am.

AB64-ASA1,1023 Section 1023 . 71.05 (6) (b) 33. (intro.) of the statutes is amended to read:

AB64-ASA1,608,25 71.05 (6) (b) 33. (intro.) An amount paid into a college tuition and expenses program, as described in s. 16.64 224.48, by the owner of the account or by a parent, grandparent, great-grandparent, aunt, or uncle of the beneficiary, if the beneficiary of the account is one of the following: the claimant; the claimant's child; the claimant's grandchild; the claimant's great-grandchild; or the claimant's niece or nephew; calculated as follows:

AB64-ASA1,1023s Section 1023s. 71.05 (6) (b) 53. of the statutes is created to read:

AB64-ASA1,609,7 71.05 (6) (b) 53. The value of any Olympic, Paralympic, or Special Olympics medal won by an individual in an Olympic, Paralympic, or Special Olympics competition, and the amount of any payment such an individual receives from the U.S. Olympic Committee or from the Special Olympics Board of Directors, but only to the extent that the committee made the payment because the individual won an Olympic, Paralympic, or Special Olympics medal.

AB64-ASA1,1024 Section 1024 . 71.05 (8) (b) 1. of the statutes is amended to read:

AB64-ASA1,609,23 71.05 (8) (b) 1. A Except as provided in s. 71.80 (25), 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 20 taxable years, if the taxpayer was subject to taxation under this chapter in the taxable year in which the loss was sustained incurred, 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.

AB64-ASA1,1035m Section 1035m. 71.07 (2dy) (b) of the statutes is amended to read:

AB64-ASA1,610,5 71.07 (2dy) (b) Filing claims. Subject to the limitations under this subsection and ss. 238.301 to 238.306 or ss. 560.701 to 560.706, 2009 stats., for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08, up to the amount of the tax, the amount authorized for the claimant under s. 238.303 or s. 560.703, 2009 stats.

AB64-ASA1,1035n Section 1035n. 71.07 (2dy) (d) 2. of the statutes is amended to read:

AB64-ASA1,610,16 71.07 (2dy) (d) 2. If a claimant's certification is revoked under s. 238.305 or s. 560.705, 2009 stats., or if a claimant becomes ineligible for tax benefits under s. 238.302 or s. 560.702, 2009 stats., the claimant may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the claimant becomes ineligible for tax benefits; or succeeding taxable years and the claimant may not carry over unused credits from previous years to offset the tax imposed under s. 71.02 or 71.08 for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the claimant becomes ineligible for tax benefits; or succeeding taxable years.

AB64-ASA1,1035p Section 1035p. 71.07 (3q) (b) (intro.) of the statutes is amended to read:

AB64-ASA1,610,21 71.07 (3q) (b) Filing claims. (intro.) Subject to the limitations provided in this subsection and s. 238.16 or s. 560.2055, 2009 stats., for taxable years beginning after December 31, 2009, a claimant may claim as a credit against the taxes imposed under ss. s. 71.02 and 71.08 any of the following:

AB64-ASA1,1035x Section 1035x. 71.07 (3q) (c) 3. of the statutes is amended to read:

AB64-ASA1,611,2 71.07 (3q) (c) 3. The maximum amount of credits that may be awarded under this subsection and ss. 71.28 (3q) and 71.47 (3q) for the period beginning on January 1, 2010, and ending on June 30, 2013, is $14,500,000, not including the amount of any credits reallocated under s. 238.15 (3) (d), 2015 stats., or s. 560.205 (3) (d), 2009 stats.

AB64-ASA1,1036 Section 1036 . 71.07 (3q) (d) 2. of the statutes is amended to read:

AB64-ASA1,611,12 71.07 (3q) (d) 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under ss. s. 71.02 and 71.08, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (bb), except that the amounts certified under this subdivision for taxable years beginning after December 31, 2009, and before January 1, 2012, shall be paid in taxable years beginning after December 31, 2011. Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subdivision.

AB64-ASA1,1036e Section 1036e. 71.07 (3s) (b) of the statutes is amended to read:

AB64-ASA1,611,22 71.07 (3s) (b) The tax imposed under s. 71.02 or 71.08 shall be reduced by an amount equal to the sales and use tax under ch. 77 paid by the person in such taxable year on fuel and electricity consumed in manufacturing tangible personal property in this state. Shareholders in a tax-option corporation and partners may claim the credit under this subsection, based on eligible sales and use taxes paid by the partnership or tax-option corporation, in proportion to the ownership interest of each partner or shareholder. The partnership or tax-option corporation shall calculate the amount of the credit which may be claimed by each partner or shareholder and shall provide that information to the partner or shareholder.

AB64-ASA1,1036f Section 1036f. 71.07 (3t) (b) of the statutes is amended to read:

AB64-ASA1,612,4 71.07 (3t) (b) Credit. Subject to the limitations provided in this subsection and in s. 560.28, 2009 stats., for taxable years beginning after December 31, 2007, a claimant may claim as a credit, amortized over 15 taxable years starting with the taxable year beginning after December 31, 2007, against the tax imposed under s. 71.02 and 71.08, up to the amount of the tax, an amount equal to the claimant's unused credits under s. 71.07 (3s).

AB64-ASA1,1036h Section 1036h. 71.07 (3w) (b) (intro.) of the statutes is amended to read:

AB64-ASA1,612,9 71.07 (3w) (b) Filing claims; payroll. (intro.) Subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount calculated as follows:

AB64-ASA1,1036Lm Section 1036Lm. 71.07 (3w) (bm) 1. of the statutes is amended to read:

AB64-ASA1,612,21 71.07 (3w) (bm) 1. In addition to the credits under par. (b) and subds. 2., 3., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount equal to a percentage, as determined under s. 238.399 or s. 560.799, 2009 stats., not to exceed 100 percent, of the amount the claimant paid in the taxable year to upgrade or improve the job-related skills of any of the claimant's full-time employees, to train any of the claimant's full-time employees on the use of job-related new technologies, or to provide job-related training to any full-time employee whose employment with the claimant represents the employee's first full-time job. This subdivision does not apply to employees who do not work in an enterprise zone.

AB64-ASA1,1037bc Section 1037bc. 71.07 (3w) (bm) 2. of the statutes is amended to read:

AB64-ASA1,613,11 71.07 (3w) (bm) 2. In addition to the credits under par. (b) and subds. 1., 3., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount equal to the percentage, as determined under s. 238.399 or s. 560.799, 2009 stats., not to exceed 7 percent, of the claimant's zone payroll paid in the taxable year to all of the claimant's full-time employees whose annual wages are greater than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality, not including the wages paid to the employees determined under par. (b) 1., or greater than $30,000 in a tier II county or municipality, not including the wages paid to the employees determined under par. (b) 1., and who the claimant employed in the enterprise zone in the taxable year, if the total number of such employees is equal to or greater than the total number of such employees in the base year. A claimant may claim a credit under this subdivision for no more than 5 consecutive taxable years.

AB64-ASA1,1037bd Section 1037bd. 71.07 (3w) (bm) 3. of the statutes is amended to read:

AB64-ASA1,613,18 71.07 (3w) (bm) 3. In addition to the credits under par. (b) and subds. 1., 2., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 up to 10 percent of the claimant's significant capital expenditures, as determined under s. 238.399 (5m) or s. 560.799 (5m), 2009 stats.

AB64-ASA1,1037be Section 1037be. 71.07 (3w) (bm) 4. of the statutes is amended to read:

AB64-ASA1,614,3 71.07 (3w) (bm) 4. In addition to the credits under par. (b) and subds. 1., 2., and 3., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., for taxable years beginning after December 31, 2009, a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08, up to 1 percent of the amount that the claimant paid in the taxable year to purchase tangible personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services from Wisconsin vendors, as determined under s. 238.399 (5) (e) or s. 560.799 (5) (e), 2009 stats., except that the claimant may not claim the credit under this subdivision and subd. 3. for the same expenditures.

AB64-ASA1,1037d Section 1037d. 71.07 (3w) (c) 1. of the statutes is renumbered 71.07 (3w) (c) 1. a. and amended to read:

AB64-ASA1,614,12 71.07 (3w) (c) 1. a. If For claims filed before January 1, 2018, if the allowable amount of the claim under this subsection exceeds the taxes otherwise due on the claimant's income under s. 71.02, the amount of the claim that is not used to offset those taxes shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation under s. 20.835 (2) (co). Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subd. 1. a.

AB64-ASA1,1037e Section 1037e. 71.07 (3w) (c) 1. b. of the statutes is created to read:

AB64-ASA1,614,20 71.07 (3w) (c) 1. b. For claims filed after December 31, 2017, claims under this subsection shall be made to the Wisconsin Economic Development Corporation using policies and procedures established by the corporation board. The corporation shall certify valid claims to the department of administration for payment by check, share draft, or other draft drawn from the appropriation under s. 20.835 (2) (co). Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subd. 1. b.

AB64-ASA1,1037f Section 1037f. 71.07 (3w) (c) 2. of the statutes is amended to read:

AB64-ASA1,615,7 71.07 (3w) (c) 2. Partnerships For claims filed before January 1, 2018, partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts described under pars. (b) and (bm). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests. For claims filed after December 31, 2017, partnerships, limited liability companies, and tax-option corporations may claim the credit under this subsection as provided under subd. 1. b.

AB64-ASA1,1037g Section 1037g. 71.07 (3w) (c) 3. of the statutes is amended to read:

AB64-ASA1,615,12 71.07 (3w) (c) 3. No For claims filed before January 1, 2018, no credit may be allowed under this subsection unless the claimant includes with the claimant's return a copy of the claimant's certification for tax benefits under s. 238.399 (5) or (5m) or s. 560.799 (5) or (5m), 2009 stats.

AB64-ASA1,1037h Section 1037h. 71.07 (3w) (d) of the statutes is amended to read:

AB64-ASA1,615,19 71.07 (3w) (d) Administration. Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection. Claimants shall include with their returns a copy of their certification for tax benefits, and a copy of the verification of their expenses, from the department of commerce or the Wisconsin Economic Development Corporation. This paragraph does not apply to claims filed after December 31, 2017.

AB64-ASA1,1037i Section 1037i. 71.07 (3wm) of the statutes is created to read:

AB64-ASA1,615,22 71.07 (3wm) Electronics and information technology manufacturing zone credit. (a) Definitions. In this subsection:

AB64-ASA1,615,24 1. “Claimant" means a person who is certified to claim tax benefits under s. 238.396 (3) and who files a claim under this subsection.

AB64-ASA1,616,4 2. “Full-time employee” means an individual who is employed in a job for which the annual pay is at least $30,000 and who is offered retirement, health, and other benefits that are equivalent to the retirement, health, and other benefits offered to an individual who is required to work at least 2,080 hours per year.

AB64-ASA1,616,6 3. “State payroll" means the amount of payroll apportioned to this state, as determined under s. 71.25 (8).

AB64-ASA1,616,8 4. “Wages" means wages under section 3306 (b) of the Internal Revenue Code, determined without regard to any dollar limitations.