SB59,847
2Section
847. 71.04 (7) (dj) 2. of the statutes is repealed.
SB59,848
3Section
848. 71.04 (7) (g) of the statutes is repealed.
SB59,849
4Section
849. 71.05 (1) (c) 14. of the statutes is created to read:
SB59,605,85
71.05
(1) (c) 14. The Wisconsin Health and Educational Facilities Authority
6under s. 231.03 (6), if the bonds or notes are issued in an amount totaling $35,000,000
7or less, and to the extent that the interest income received is not otherwise exempt
8under this subsection.
SB59,850
9Section
850. 71.05 (6) (a) 15. of the statutes is amended to read:
SB59,605,1610
71.05
(6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the
11credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
12(3rm), (3rn), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5e), (5f), (5h), (5i), (5j), (5k), (5r),
13(5rm), (6n),
(8b), (8r), and (10) and not passed through by a partnership, limited
14liability company, or tax-option corporation that has added that amount to the
15partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or
1671.34 (1k) (g).
SB59,851
17Section 851
. 71.05 (6) (a) 29. of the statutes is created to read:
SB59,605,1918
71.05
(6) (a) 29. For an account holder or an account holder's estate, with regard
19to an account described under s. 71.10 (10):
SB59,605,2120
a. Any amount that is distributed to an account holder under s. 71.10 (10) (d)
213. or to an account holder's estate under s. 71.10 (10) (d) 4.
SB59,606,222
b. Any amount that is withdrawn from the account for any reason other than
23payment or reimbursement of eligible costs as defined under s. 71.10 (10) (a) 3.,
24except that this subd. 29. b. does not apply to the transfer of funds to another account
1as described under s. 71.10 (10) (c) 4. or funds that are disbursed pursuant to a filing
2for bankruptcy protection under
11 USC 101 et seq.
SB59,852
3Section
852. 71.05 (6) (a) 30. of the statutes is created to read:
SB59,606,84
71.05
(6) (a) 30. The amount deducted under the Internal Revenue Code as
5moving expenses, as defined in s. 71.01 (8j), paid or incurred during the taxable year
6to move the taxpayer's Wisconsin business operation, in whole or in part, to a location
7outside the state or to move the taxpayer's business operation outside the United
8States.
SB59,853
9Section
853. 71.05 (6) (b) 9. of the statutes is renumbered 71.05 (6) (b) 9.
10(intro.) and amended to read:
SB59,607,211
71.05
(6) (b) 9. (intro.) On assets held more than one year and on all assets
12acquired from a decedent, 30 percent of the capital gain as computed under the
13internal revenue code Internal Revenue Code, not including capital gains for which
14the federal tax treatment is determined under section 406 of P.L.
99-514; not
15including amounts treated as ordinary income for federal income tax purposes
16because of the recapture of depreciation or any other reason; and not including
17amounts treated as capital gain for federal income tax purposes from the sale or
18exchange of a lottery prize. For purposes of this subdivision, the capital gains and
19capital losses for all assets shall be netted before application of the percentage.
For
20taxable years beginning after December 31, 2018, this subdivision does not apply to
21any of the following individuals whose federal adjusted gross income in the year to
22which the subtraction relates exceeds the following threshold amounts, except that
23for a taxpayer whose federal adjusted gross income, less 30 percent of eligible
24long-term capital gains from nonfarm assets, is below the specified threshold
25amount, the taxpayer may claim the subtraction under this subdivision reduced by
1the amount of the taxpayer's federal adjusted gross income that exceeds the
2threshold amount:
SB59,854
3Section
854. 71.05 (6) (b) 9. a. of the statutes is created to read:
SB59,607,54
71.05
(6) (b) 9. a. For an estate, a trust, a single individual, or an individual who
5files as a head of household, $100,000.
SB59,855
6Section
855. 71.05 (6) (b) 9. b. of the statutes is created to read:
SB59,607,77
71.05
(6) (b) 9. b. For a married couple who files a joint return, $150,000.
SB59,856
8Section
856. 71.05 (6) (b) 9. c. of the statutes is created to read:
SB59,607,99
71.05
(6) (b) 9. c. For a married individual who files a separate return, $75,000.
SB59,857
10Section
857. 71.05 (6) (b) 17. of the statutes is repealed.
SB59,858
11Section
858. 71.05 (6) (b) 18. of the statutes is repealed.
SB59,859
12Section
859. 71.05 (6) (b) 19. c. of the statutes is amended to read:
SB59,607,1813
71.05
(6) (b) 19. c. For
taxable years beginning before January 1, 2020, for a
14person who is a nonresident or a part-year resident of this state, modify the amount
15calculated under subd. 19. b. by multiplying the amount by a fraction the numerator
16of which is the person's net earnings from a trade or business that are taxable by this
17state and the denominator of which is the person's total net earnings from a trade
18or business.
SB59,860
19Section
860. 71.05 (6) (b) 19. cm. of the statutes is created to read:
SB59,608,720
71.05
(6) (b) 19. cm. For taxable years beginning after December 31, 2019, for
21a person who is a nonresident or a part-year resident of this state, modify the amount
22calculated under subd. 19. b. by multiplying the amount by a fraction the numerator
23of which is the person's wages, salary, tips, unearned income, and net earnings from
24a trade or business that are taxable by this state and the denominator of which is the
25person's total wages, salary, tips, unearned income, and net earnings from a trade
1or business. In this subdivision, for married persons filing separately “wages, salary,
2tips, unearned income, and net earnings from a trade or business" means the
3separate wages, salary, tips, unearned income, and net earnings from a trade or
4business of each spouse, and for married persons filing jointly “wages, salary, tips,
5unearned income, and net earnings from a trade or business" means the total wages,
6salary, tips, unearned income, and net earnings from a trade or business of both
7spouses.
SB59,861
8Section
861. 71.05 (6) (b) 19. d. of the statutes is amended to read:
SB59,608,119
71.05
(6) (b) 19. d.
Reduce
For taxable years beginning before January 1, 2020,
10reduce the amount calculated under subd. 19. b. or c. to the person's aggregate net
11earnings from a trade or business that are taxable by this state.
SB59,862
12Section
862. 71.05 (6) (b) 19. dm. of the statutes is created to read:
SB59,608,1613
71.05
(6) (b) 19. dm. For taxable years beginning after December 31, 2019,
14reduce the amount calculated under subd. 19. b. or cm. to the person's aggregate
15wages, salary, tips, unearned income, and net earnings from a trade or business that
16are taxable by this state.
SB59,863
17Section
863. 71.05 (6) (b) 20. of the statutes is repealed.
SB59,864
18Section
864. 71.05 (6) (b) 36. of the statutes is repealed.
SB59,865
19Section
865. 71.05 (6) (b) 37. of the statutes is repealed.
SB59,866
20Section
866. 71.05 (6) (b) 39. of the statutes is repealed.
SB59,867
21Section
867. 71.05 (6) (b) 40. of the statutes is repealed.
SB59,868
22Section
868. 71.05 (6) (b) 41. of the statutes is repealed.
SB59,869
23Section 869
. 71.05 (6) (b) 43. d. of the statutes is amended to read:
SB59,609,3
171.05
(6) (b) 43. d. For taxable years beginning after December 31, 2013,
and
2before January 1, 2020, up to $3,000 if the claimant has one qualified individual and
3up to $6,000 if the claimant has more than one qualified individual.
SB59,870
4Section
870. 71.05 (6) (b) 49. a. of the statutes is amended to read:
SB59,609,105
71.05
(6) (b) 49. a. Subject to the definitions provided in subd. 49. b. to g. and
6the limitations specified in subd. 49. h. to j. for taxable years beginning after
7December 31, 2013,
and before January 1, 2019, and subject to the limitation in subd.
849. k. for taxable years beginning after December 31, 2017,
and before January 1,
92019, tuition expenses that are paid by a claimant for tuition for a pupil to attend an
10eligible institution.
SB59,871
11Section
871. 71.05 (6) (b) 49. k. of the statutes is amended to read:
SB59,609,1612
71.05
(6) (b) 49. k. For taxable years beginning after December 31, 2017,
and
13before January 1, 2019, no modification may be claimed under this subdivision for
14an amount paid for tuition expenses, as described under this subdivision, if the
15source of the payment is an amount withdrawn from a college savings account, as
16described in s. 224.50.
SB59,872
17Section
872. 71.05 (6) (b) 49. L. of the statutes is created to read:
SB59,609,1918
71.05
(6) (b) 49. L. No new claim may be filed under this subdivision for a
19taxable year that begins after December 31, 2018.
SB59,873
20Section 873
. 71.05 (6) (b) 54. of the statutes is created to read:
SB59,610,221
71.05
(6) (b) 54. For each account an account holder creates under s. 71.10 (10),
22and subject to s. 71.10 (10) (d), an account holder may subtract an amount of up to
23$5,000, or an amount of up to $10,000 if the account holder files a joint income tax
24return, for each such account that the account holder deposits into such an account
25in the taxable year to which the subtraction relates, and any interest, dividends, or
1other gain that accrues in the account if the interest, dividends, or other gain is
2redeposited into the account.
SB59,874
3Section
874. 71.05 (8) (a) of the statutes is amended to read:
SB59,610,104
71.05
(8) (a)
The carry back of losses to reduce income of prior years may be
5permitted for 2 taxable years. There shall be added any amount deducted as a federal
6net operating loss
carry-back or carry-over and there shall be subtracted for the first
7taxable year for which the subtraction may be made any Wisconsin net operating loss
8carry-back or carry-forward allowable under par. (b) in an amount not in excess of
9the Wisconsin taxable income computed before the deduction of the Wisconsin net
10operating loss
carry-back or carry-forward.
SB59,875
11Section
875. 71.05 (8) (b) 1. of the statutes is renumbered 71.05 (8) (b) and
12amended to read:
SB59,611,213
71.05
(8) (b) Except as provided in s. 71.80 (25), a Wisconsin net operating loss
14may be
carried back against Wisconsin taxable income of the previous 2 years and
15then carried forward against Wisconsin taxable incomes of the next 20 taxable years,
16if the taxpayer was subject to taxation under this chapter in the taxable year in which
17the loss was incurred, to the extent not offset against other income of the year of loss
18and to the extent not offset against Wisconsin modified taxable income
of the 2 years
19preceding the loss and of any year between the loss year and the taxable year for
20which the loss carry-forward is claimed. In this paragraph, “Wisconsin modified
21taxable income" means Wisconsin taxable income with the following exceptions: a
22net operating loss deduction or offset for the loss year or any taxable year
before or 23thereafter is not allowed, the deduction for long-term capital gains under subs. (6)
24(b) 9. and 9m. and (25) is not allowed, the amount deductible for losses from sales or
25exchanges of capital assets may not exceed the amount includable in income for gains
1from sales or exchanges of capital assets and “Wisconsin modified taxable income"
2may not be less than zero.
SB59,876
3Section
876. 71.05 (8) (b) 2. of the statutes is repealed.
SB59,877
4Section
877. 71.05 (8) (c) of the statutes is repealed.
SB59,878
5Section
878. 71.07 (2dx) (a) 5. of the statutes is amended to read:
SB59,611,206
71.07
(2dx) (a) 5. “Member of a targeted group" means a person who resides
7in an area designated by the federal government as an economic revitalization area,
8a person who is employed in an unsubsidized job but meets the eligibility
9requirements under s. 49.145 (2) and (3) for a Wisconsin Works employment position,
10or a person who is
employed in a trial job, as defined in s. 49.141 (1) (n), 2011 stats.,
11or in a
trial employment match program job
subsidized employment placement, as
12defined in s. 49.141 (1)
(n) (Lm), a person who is eligible for child care assistance
13under s. 49.155, a person who is a vocational rehabilitation referral, an economically
14disadvantaged youth, an economically disadvantaged veteran, a supplemental
15security income recipient, a general assistance recipient, an economically
16disadvantaged ex-convict, a qualified summer youth employee, as defined in
26 USC
1751 (d) (7), a dislocated worker, as defined in
29 USC 2801 (9), or a food stamp
18recipient, if the person has been certified in the manner under s. 71.07 (2dj) (am) 3.,
192013 stats., by a designated local agency, as defined in s. 71.07 (2dj) (am) 2., 2013
20stats.
SB59,879
21Section
879. 71.07 (4k) (e) 2. a. of the statutes is amended to read:
SB59,612,422
71.07
(4k) (e) 2. a.
The For taxable years beginning after December 31, 2017,
23and before January 1, 2020, the amount of the claim not used to offset the tax due,
24not to exceed 10 percent of the allowable amount of the claim under par. (b) 4., 5., or
256., shall be certified by the department of revenue to the department of
1administration for payment
by check, share draft, or other draft drawn from the
2appropriation account under s. 20.835 (2) (d).
A person who is certified to claim tax
3benefits under s. 238.396 (3) or (3m) is not eligible to receive the payment under this
4subd. 2. a.
SB59,880
5Section
880. 71.07 (4k) (e) 2. am. of the statutes is created to read:
SB59,612,126
71.07
(4k) (e) 2. am. For taxable years beginning after December 31, 2019, the
7amount of the claim not used to offset the tax due, not to exceed 20 percent of the
8allowable amount of the claim under par. (b) 4., 5., or 6., shall be certified by the
9department of revenue to the department of administration for payment from the
10appropriation account under s. 20.835 (2) (d). A person who is certified to claim tax
11benefits under s. 238.396 (3) or (3m) is not eligible to receive the payment under this
12subd. 2. am.
SB59,881
13Section
881. 71.07 (4k) (e) 2. b. of the statutes is amended to read:
SB59,612,1914
71.07
(4k) (e) 2. b. The amount of the claim not used to offset the tax due and
15not certified for payment under subd. 2. a.
or am. may be carried forward and credited
16against Wisconsin income taxes otherwise due for the following 15 taxable years to
17the extent not offset by these taxes otherwise due in all intervening years between
18the year in which the expense was incurred and the year in which the carry-forward
19credit is claimed.
SB59,882
20Section
882. 71.07 (5) (a) 15. of the statutes is amended to read:
SB59,613,221
71.07
(5) (a) 15. The amount claimed as a deduction for medical care insurance
22under section
213 of the Internal Revenue Code that is exempt from taxation under
23s. 71.05 (6) (b)
17. to 20. 19., 35.,
36., 37., 38.,
39., 40., 41., and 42. and the amount
24claimed as a deduction for a long-term care insurance policy under section
213 (d)
1(1) (D) of the Internal Revenue Code, as defined in section
7702B (b) of the Internal
2Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 26.
SB59,883
3Section
883. 71.07 (5m) (e) of the statutes is created to read:
SB59,613,54
71.07
(5m) (e)
Sunset. No credit may be claimed under this subsection for
5taxable years beginning after December 31, 2018.
SB59,884
6Section
884. 71.07 (5me) of the statutes is created to read:
SB59,613,87
71.07
(5me) Family and individual reinvestment credit. (a)
Definitions. In
8this subsection:
SB59,613,109
1. “Claimant" means an individual who is eligible to claim the credit under this
10subsection.
SB59,613,1211
2. “Household" means a claimant and an individual related to the claimant as
12husband or wife.
SB59,613,1413
3. “Net tax liability" means a claimant's income tax liability after he or she
14completes the computations for nonrefundable credits listed in s. 71.10 (4) (a) to (gy).
SB59,613,1815
(b)
Filing claims. For taxable years beginning after December 31, 2018, and
16subject to the limitations provided in this subsection, a claimant may claim as a
17credit against the tax imposed under s. 71.02, up to the amount of those taxes, one
18of the following amounts:
SB59,613,2119
1. If the claimant is single or files as a head of household and his or her adjusted
20gross income is less than $80,000 in the year to which the claim relates, the greater
21of $100 or an amount equal to 10 percent of his or her net tax liability.
SB59,613,2422
2. If the claimant is single or files as a head of household and his or her adjusted
23gross income is at least $80,000 but less than $100,000 in the year to which the claim
24relates, an amount that is calculated as follows:
SB59,614,3
1a. Calculate the value of a fraction, the denominator of which is $20,000 and
2the numerator of which is the difference between the claimant's adjusted gross
3income and $80,000.
SB59,614,44
b. Subtract from 1.0 the amount that is calculated under subd. 2. a.
SB59,614,55
c. Multiply the amount that is calculated under subd. 2. b. by 10 percent.
SB59,614,76
d. Multiply the amount of the claimant's net income tax liability by the amount
7that is calculated under subd. 2. c.
SB59,614,118
3. If the claimant is married and filing jointly and the sum of the claimant's
9adjusted gross income and his or her spouse's adjusted gross income is less than
10$125,000 in the year to which the claim relates, the greater of $50 or an amount equal
11to 10 percent of the married couple's net tax liability.
SB59,614,1512
4. If the claimant is married and filing jointly and the sum of the claimant's
13adjusted gross income and his or her spouse's adjusted gross income is at least
14$125,000 but less than $150,000 in the year to which the claim relates, an amount
15that is calculated as follows:
SB59,614,1816
a. Calculate the value of a fraction, the denominator of which is $25,000 and
17the numerator of which is the difference between the married couple's adjusted gross
18income and $125,000.
SB59,614,1919
b. Subtract from 1.0 the amount that is calculated under subd. 4. a.
SB59,614,2020
c. Multiply the amount that is calculated under subd. 4. b. by 10 percent.
SB59,614,2221
d. Multiply the amount of the married couple's net income tax liability by the
22amount that is calculated under subd. 4. c.
SB59,614,2523
5. If the claimant is married and filing separately and his or her adjusted gross
24income is less than $62,500 in the year to which the claim relates, the greater of $25
25or an amount equal to 10 percent of his or her net tax liability.
SB59,615,3
16. If the claimant is married and filing separately and his or her adjusted gross
2income is at least $62,500 but less than $75,000 in the year to which the claim relates,
3an amount that is calculated as follows:
SB59,615,64
a. Calculate the value of a fraction, the denominator of which is $12,500 and
5the numerator of which is the difference between the claimant's adjusted gross
6income and $75,000.
SB59,615,77
b. Subtract from 1.0 the amount that is calculated under subd. 6. a.
SB59,615,88
c. Multiply the amount that is calculated under subd. 6. b. by 10 percent.
SB59,615,109
d. Multiply the amount of the claimant's net income tax liability by the amount
10that is calculated under subd. 6. c.