SB30: Bill Text

SB30,528,18 71.07 (5m) (c) 6. If a married couple files jointly, both spouses must be full-year residents of this state to be eligible to claim the credit under this subsection.

SB30,1042 Section 1042 . 71.07 (5n) (d) 3. of the statutes is created to read:

SB30,528,23 71.07 (5n) (d) 3. The amount of the eligible qualified production activities income that a claimant may claim in computing the credit under par. (b) shall be reduced by the amount of the qualified production activities income taxed by another state upon which the credit under sub. (7) may be claimed.

SB30,1043 Section 1043 . 71.07 (5r) (a) 2. of the statutes is amended to read:

SB30,529,2 71.07 (5r) (a) 2. “Course of instruction" has the meaning given in s. 38.50 440.52 (1) (c).

SB30,1044 Section 1044 . 71.07 (5r) (a) 6. b. of the statutes is amended to read:

SB30,529,5 71.07 (5r) (a) 6. b. A school approved under s. 38.50 440.52, if the delivery of education occurs in this state.

SB30,1045 Section 1045 . 71.07 (8m) of the statutes is created to read:

SB30,529,8 71.07 (8m) Young adult employment assistance credit. (a) Definitions. In this subsection:

SB30,529,16 1. “Aged out” means, except as provided in ss. 48.368 and 938.368, an individual is discharged from out-of-home care due to termination of an order under s. 48.355, 48.357, 48.365, 48.427, 938.355, 938.357, or 938.365, made before the individual attains 18 years of age, that places or continues the placement of the individual in out-of-home care; termination of a voluntary transition-to-independent-living agreement under s. 48.366 (3) or 938.366 (3); or termination of a voluntary placement agreement under s. 48.63; any of which occur on the date of any of the following:

SB30,529,17 a. The date that the individual attains 18 years of age.

SB30,529,22 b. The date that the individual is granted a high school or high school equivalency diploma, or the date on which the individual attains 19 years of age, whichever occurs first, if the individual is a full-time student at a secondary school or its vocational or technical equivalent and is reasonably expected to complete the program before attaining 19 years of age.

SB30,530,2 c. The date on which the individual is granted a high school or high school equivalency diploma or the date on which the individual attains 21 years of age, whichever occurs first, if the individual is a full-time student at a secondary school or its vocational or technical equivalent and if an individualized education program under s. 115.787 is in effect for the individual.

SB30,530,6 d. The date that an individual who is 18 years of age or over makes a decision to leave out-of-home care and the order is dismissed, the voluntary transition-to-independent-living-agreement is terminated, or the voluntary placement agreement is terminated.

SB30,530,9 e. The date of termination of an order under s. 48.355, 48.357, 48.365, 48.427, 938.355, 938.357, or 938.365, that provides for the termination one year or less after the date on which the order was entered.

SB30,530,10 2. “Claimant" means a young adult who files a claim under this subsection.

SB30,530,13 3. “Earned income tax credit” means the federal basic earned income credit under section 32 (b) (1) (A) to (C) of the Internal Revenue Code for a claimant with no dependent children, and without regard to the age limits under federal law.

SB30,530,14 4. “Young adult” means an individual who meets one of the following criteria:

SB30,530,17 a. The individual aged out of out-of-home care without achieving permanency in either of the 2 taxable years prior to the taxable year to which the claim relates, or who did so in the taxable year to which the claim relates.

SB30,530,22 b. The individual was previously designated as disabled under the supplemental security income program as a minor, but who, in either of the 2 taxable years prior to the year to which the claim relates, or in the taxable year to which the claim relates, lost his or her disability status due to a disability redetermination using the adult disability rules when he or she reaches 18 years of age.

SB30,531,5 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount equal to 125 percent of the earned income tax credit in the year to which the claim relates, and if the allowable amount of the claim exceeds the income taxes otherwise due on the claimant's income, the amount of the claim not used as an offset against those taxes shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (cb).

SB30,531,7 (c) Limitations. 1. No credit may be claimed under this subsection by a part-year resident or a nonresident of this state.

SB30,531,9 2. No credit may be allowed under this subsection unless it is claimed within the period specified in s. 71.75 (2).

SB30,531,12 3. No credit may be allowed under this subsection for a taxable year covering a period of less than 12 months, except for a taxable year closed by reason of the death of the taxpayer.

SB30,531,14 (d) Administration. 1. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

SB30,531,16 2. The department of revenue and the department of children and families shall work together to verify the claims of individuals described in par. (a) 4. a.

SB30,531,18 3. The department of revenue and the department of health services shall work together to verify the claims of individuals described in par. (a) 4. b.

SB30,1046 Section 1046 . 71.07 (9e) (aj) (intro.) of the statutes is amended to read:

SB30,531,24 71.07 (9e) (aj) (intro.) For taxable years beginning after December 31, 2010, and before January 1, 2018, an individual may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the person is eligible for the taxable year under section 32 (b) (1) (A) to (C) of the Internal Revenue Code:

SB30,1047 Section 1047 . 71.07 (9e) (ak) of the statutes is created to read:

SB30,532,5 71.07 (9e) (ak) For taxable years beginning after December 31, 2017, an individual may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the person is eligible for the taxable year under section 32 (b) (1) (A) to (C) of the Internal Revenue Code:

SB30,532,7 1. If the person has one qualifying child who has, or 2 qualifying children who have, the same principal place of abode as the person, 11 percent.

SB30,532,9 2. If the person has 3 or more qualifying children who have the same principal place of abode as the person, 34 percent.

SB30,1048 Section 1048 . 71.07 (9e) (aL) of the statutes is created to read:

SB30,532,17 71.07 (9e) (aL) 1. For taxable years beginning after December 31, 2017, and notwithstanding par. (b), for an individual who claims the credit under par. (ak), if the claimant becomes married in the taxable year to which the claim relates, the claimant may claim the greater of either the credit calculated under par. (ak) based on his or filing status as a married individual, or the credit that he or she claimed in the immediately preceding taxable year under par. (aj) or (ak) when the claimant was not married, which shall be considered the base year.

SB30,532,21 2. For the next 2 successive taxable years after an individual calculates the credit under subd. 1., he or she may continue to claim the greater of either the credit calculated under par. (ak) based on his or filing status as a married individual in the current taxable year, or the credit that he or she claimed in the base year.

SB30,1049 Section 1049 . 71.07 (9e) (aq) of the statutes is created to read:

SB30,533,3 71.07 (9e) (aq) For taxable years beginning after December 31, 2017, an individual may credit against the tax imposed under s. 71.02 an amount equal to 7.5 percent of the federal basic earned income credit for which the person would have been eligible for the taxable year under section 32 (b) (1) (A) to (C) of the Internal Revenue Code if the individual's noncustodial child met the definition of qualifying child, and if all of the following apply for the taxable year to which the claim relates:

SB30,533,4 1. The individual did not claim the credit under par. (aj).

SB30,533,5 2. The individual is a full-year resident of this state.

SB30,533,6 3. At any point in the taxable year, the individual is at least 18 years old.

SB30,533,8 4. The individual is the parent of at least one child who did not have the same principal place of abode as the claimant.

SB30,533,11 5. For at least one-half of the taxable year, a court order was in effect requiring the claimant to make child support payments for the child with regard to whom the claimant is claiming the credit under this paragraph.

SB30,533,14 6. The claimant has paid in full all amounts of court-ordered child support payments described under subd. 5., and the department of revenue has verified that such payments have in fact been made by the claimant.

SB30,1050 Section 1050 . 71.07 (9e) (h) of the statutes is created to read:

SB30,533,20 71.07 (9e) (h) 1. Subject to subd. 2., for taxable years beginning after December 31, 2017, no credit may be allowed under this subsection to an individual with a disqualified loss of greater than $15,000 deducted in determining Wisconsin adjusted gross income. In this subdivision, “disqualified loss" has the meaning given in s. 71.52 (1e).

SB30,533,25 2. Subdivision 1. does not apply to a claimant who is a farmer whose primary income is from farming and whose farming generates less than $250,000 in gross receipts from the operation of farm premises in the year to which the claim relates. In this subdivision, “farmer,” “farming,” and “farm premises” have the meanings given in s. 102.04 (3).

SB30,1051 Section 1051. 71.07 (9m) (i) of the statutes is created to read:

SB30,534,7 71.07 (9m) (i) 1. a. Except as provided in subd. 1. b., if the activity for which a person claims a credit under this subsection creates fewer full-time jobs than projected under s. 238.17 (3) (a), as reported to the department under s. 238.17 (4), the person who claimed the credit shall repay to the department any amount of the credit claimed, as determined by the department, in proportion to the number of full-time jobs created compared to the number of full-time jobs projected.

SB30,534,9 b. For purposes of subd. 1. a., the person who initially sells or transfers a credit under par. (h) is responsible for repaying the credit.

SB30,534,14 2. If a person who claims a credit under this subsection and a credit under section 47 of the Internal Revenue Code for the same qualified rehabilitation expenditures is required to repay any amount of the credit claimed under section 47 of the Internal Revenue Code, the person shall repay to the department a proportionate amount of the credit claimed under this subsection.

SB30,1052 Section 1052 . 71.08 (1) (intro.) of the statutes is amended to read:

SB30,534,24 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), (2dx), (2dy), (3m), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (3y), (4k), (5b), (5d), (5e), (5f), (5h), (5i), (5j), (5n), (6), (6e), (8m), (8r), (9e), (9m), and (9r), 71.28 (1dx), (1dy), (2m), (3), (3n), (3t), (3w), and (3y), 71.47 (1dx), (1dy), (2m), (3), (3n), (3t), (3w), and (3y), 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:

SB30,1053 Section 1053 . 71.10 (4) (i) of the statutes is amended to read:

SB30,535,14 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief credit under s. 71.07 (3m), dairy manufacturing facility investment credit under s. 71.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment credit under s. 71.07 (3r), woody biomass harvesting and processing credit under s. 71.07 (3rm), food processing plant and food warehouse investment credit under s. 71.07 (3rn), business development credit under s. 71.07 (3y), film production services credit under s. 71.07 (5f), film production company investment credit under s. 71.07 (5h), young adult employment credit under s. 71.07 (8m), veterans and surviving spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s. 71.07 (3w), beginning farmer and farm asset owner tax credit under s. 71.07 (8r), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

SB30,1054 Section 1054 . 71.125 (1) of the statutes is amended to read:

SB30,535,19 71.125 (1) Except as provided in sub. (2), the tax imposed by this chapter on individuals and the rates under s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2) shall apply to the Wisconsin taxable income of estates or trusts, except nuclear decommissioning trust or reserve funds, and that tax shall be paid by the fiduciary.

SB30,1055 Section 1055 . 71.125 (2) of the statutes is amended to read:

SB30,535,25 71.125 (2) Each electing small business trust, as defined in section 1361 (e) (1) of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1), (1m), (1n), (1p), or (1q), or (1r), whichever taxable year is applicable, on its income as computed under section 641 of the Internal Revenue Code, as modified by s. 71.05 (6) to (12), (19) and (20).

SB30,1056 Section 1056. 71.17 (6) of the statutes is amended to read:

SB30,536,5 71.17 (6) Funeral trusts. If a qualified funeral trust makes the election under section 685 of the Internal Revenue Code for federal income tax purposes, that election applies for purposes of this chapter and each trust shall compute its own tax and shall apply the rates under s. 71.06 (1), (1m), (1n), (1p), or (1q), or (1r).

SB30,1057 Section 1057 . 71.20 (1) of the statutes is amended to read:

SB30,536,17 71.20 (1) Every partnership shall furnish to the department a true and accurate statement, on or before April 15 of each year, except that returns for fiscal years ending on some other date than December 31 shall be furnished on or before the 15th day of the 4th month following the close of such fiscal year the date on which the partnership is required to file for federal income tax purposes, not including any extension, under the Internal Revenue Code, in such the manner and form and setting forth such the facts as the department deems necessary to enforce this chapter. A partnership that is the owner of a single-owner entity that is disregarded as a separate entity under section 7701 of the Internal Revenue Code shall include that entity's information on the owner's return under this subchapter. The statement shall be subscribed by one of the members partners of the partnership.

SB30,1058 Section 1058 . 71.22 (4) (b) of the statutes is repealed.

SB30,1059 Section 1059 . 71.22 (4) (j) 1. of the statutes is amended to read:

SB30,536,24 71.22 (4) (j) 1. For taxable years beginning after December 31, 2013, and before January 1, 2017, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2013, except as provided in subds. 2. and 3. and subject to subd. 4., and except as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34 (1g), and 71.42 (2).

SB30,1060 Section 1060 . 71.22 (4) (j) 3. i. of the statutes is created to read:

SB30,537,1 71.22 (4) (j) 3. i. Section 2004 of P.L. 114-41.

SB30,1061 Section 1061 . 71.22 (4) (j) 3. j. of the statutes is created to read:

SB30,537,3 71.22 (4) (j) 3. j. Sections 503 and 504 of P.L. 114-74.

SB30,1062 Section 1062 . 71.22 (4) (j) 3. k. of the statutes is created to read:

SB30,537,6 71.22 (4) (j) 3. k. Sections 103, 104, 124, 168, 184, 185, 190, 204, 303, 306, 336, and 341 of division Q of P.L. 114-113.

SB30,1063 Section 1063 . 71.22 (4) (j) 3. L. of the statutes is created to read:

SB30,537,8 71.22 (4) (j) 3. L. P.L. 114-239.

SB30,1064 Section 1064 . 71.22 (4) (k) of the statutes is created to read:

SB30,537,13 71.22 (4) (k) 1. For taxable years beginning after December 31, 2016, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2016, except as provided in subds. 2. and 3. and subject to subd. 4., and except as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34 (1g), and 71.42 (2).

SB30,538,3 2. For purposes of this paragraph, “Internal Revenue Code" does not include the following provisions of federal public laws for taxable years beginning after December 31, 2016: section 13113 of P.L 103-66; sections 1, 3, 4, and 5 of P.L. 106-519; sections 101, 102, and 422 of P.L 108-357; sections 1310 and 1351 of P.L. 109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L. 110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section 15351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251, 1501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L. 111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L. 111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and 411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division P of P.L. 114-113; and sections 112, 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113.

SB30,538,5 3. For purposes of this paragraph, “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2016.

SB30,538,12 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.

SB30,1065 Section 1065 . 71.22 (4m) (b) of the statutes is repealed.

SB30,1066 Section 1066 . 71.22 (4m) (j) 1. of the statutes is amended to read:

SB30,538,19 71.22 (4m) (j) 1. For taxable years beginning after December 31, 2013, and before January 1, 2017, “Internal Revenue Code", for corporations that are subject to a tax on unrelated business income under s. 71.26 (1) (a), means the federal Internal Revenue Code as amended to December 31, 2013, except as provided in subds. 2. and 3. and subject to subd. 4.

SB30,1067 Section 1067 . 71.22 (4m) (j) 3. i. of the statutes is created to read:

SB30,538,21 71.22 (4m) (j) 3. i. Section 2004 of P.L. 114-41.

SB30,1068 Section 1068 . 71.22 (4m) (j) 3. j. of the statutes is created to read:

SB30,538,23 71.22 (4m) (j) 3. j. Sections 503 and 504 of P.L. 114-74.

SB30,1069 Section 1069 . 71.22 (4m) (j) 3. k. of the statutes is created to read:

SB30,539,2 71.22 (4m) (j) 3. k. Sections 103, 104, 124, 168, 184, 185, 190, 204, 303, 306, 336, and 341 of division Q of P.L. 114-113.