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.
SB59,615,1211
(c)
Limitations. 1. No credit may be allowed under this subsection unless it
12is claimed within the period under s. 71.75 (2).
SB59,615,1413
2. Part-year residents and nonresidents of this state are not eligible for the
14credit under this subsection.
SB59,615,1615
3. Except as provided in subd. 4., only one credit per household is allowed each
16year.
SB59,615,2017
4. If a married couple files separately, each spouse may claim the credit
18calculated under par. (b) 5. or 6., except a married person living apart from the other
19spouse and treated as single under section
7703 (b) of the Internal Revenue Code may
20claim the credit under par. (b) 1. or 2.
SB59,615,2221
5. The credit under this subsection may not be claimed by a person who may
22be claimed as a dependent on the individual income tax return of another taxpayer.
SB59,616,223
(d)
Administration. The department of revenue may enforce the credit under
24this subsection and may take any action, conduct any proceeding, and proceed as it
25is authorized in respect to taxes under this chapter. The income tax provisions in this
1chapter relating to assessments, refunds, appeals, collection, interest, and penalties
2apply to the credit under this subsection.
SB59,885
3Section
885. 71.07 (5n) (d) 2. of the statutes is amended to read:
SB59,616,94
71.07
(5n) (d) 2.
For Except as provided in subd. 2m., for purposes of
5determining a claimant's eligible qualified production activities income under this
6subsection, the claimant shall multiply the claimant's qualified production activities
7income from property manufactured by the claimant by the manufacturing property
8factor and qualified production activities income from property produced, grown, or
9extracted by the claimant by the agriculture property factor.
SB59,886
10Section
886. 71.07 (5n) (d) 2m. of the statutes is created to read:
SB59,616,1611
71.07
(5n) (d) 2m. For taxable years beginning after December 31, 2018, for
12purposes of determining a claimant's eligible qualified production activities income
13from manufacturing under this subsection, the claimant, including a beneficiary or
14fiduciary, shall multiply the claimant's qualified production activities income, not
15exceeding $300,000, from property manufactured by the claimant by the
16manufacturing property factor.
SB59,887
17Section 887
. 71.07 (8m) of the statutes is created to read:
SB59,616,1918
71.07
(8m) Additional household and dependent care expenses tax credit. 19(a)
Definitions. In this subsection:
SB59,616,2220
1. “Claimant" means an individual who is eligible for and claims the household
21and dependent care expenses tax credit for the taxable year to which the claim under
22this subsection relates.
SB59,616,2423
2. “Household and dependent care expenses tax credit" means the tax credit
24under section
21 of the Internal Revenue Code.
SB59,617,6
1(b)
Filing claims. Subject to the limitations provided in this subsection, a
2claimant may claim as a credit against the tax imposed under s. 71.02, up to the
3amount of those taxes, an amount equal to 50 percent of the amount of the household
4and dependent care expenses tax credit that the claimant claimed on his or her
5federal income tax return for the taxable year to which the claim under this
6subsection relates.
SB59,617,87
(c)
Limitations. 1. No credit may be allowed under this subsection unless it
8is claimed within the time period under s. 71.75 (2).
SB59,617,119
2. No credit may be allowed under this subsection for a taxable year covering
10a period of less than 12 months, except for a taxable year closed by reason of the death
11of the taxpayer.
SB59,617,1312
3. The credit under this subsection may not be claimed by either a part-year
13resident or a nonresident of this state.
SB59,617,1514
4. The credit under this subsection may be claimed for taxable years beginning
15after December 31, 2019.
SB59,617,1716
5. A claimant who claims the credit under this subsection is subject to the
17special rules in
26 USC 21 (e) (2) and (4).
SB59,617,1918
(d)
Administration. Subsection (9e) (d), to the extent that it applies to the credit
19under that subsection, applies to the credit under this subsection.
SB59,888
20Section 888
. 71.07 (9e) (aj) (intro.) of the statutes is amended to read:
SB59,617,2521
71.07
(9e) (aj) (intro.) For taxable years beginning after December 31, 2010,
22and before January 1, 2019, an individual may credit against the tax imposed under
23s. 71.02 an amount equal to one of the following percentages of the federal basic
24earned income credit for which the person is eligible for the taxable year under
25section
32 (b) (1) (A) to (C) of the Internal Revenue Code:
SB59,889
1Section
889. 71.07 (9e) (ak) of the statutes is created to read:
SB59,618,62
71.07
(9e) (ak) For taxable years beginning after December 31, 2018, an
3individual may credit against the tax imposed under s. 71.02 an amount equal to one
4of the following percentages of the federal basic earned income credit for which the
5individual is eligible for the taxable year under section
32 (b) (1) of the Internal
6Revenue Code:
SB59,618,87
1. If the individual has one qualifying child who has the same principal place
8of abode as the individual, 11 percent.
SB59,618,109
2. If the individual has 2 qualifying children who have the same principal place
10of abode as the individual, 14 percent.
SB59,618,1211
3. If the individual has 3 or more qualifying children who have the same
12principal place of abode as the individual, 34 percent.
SB59,890
13Section
890. 71.07 (9m) (a) 3. of the statutes is amended to read:
SB59,619,214
71.07
(9m) (a) 3. For taxable years beginning after December 31, 2013,
and
15before January 1, 2019, any person may claim as a credit against taxes otherwise due
16under s. 71.02, up to the amount of those taxes, an amount equal to 20 percent of the
17costs of qualified rehabilitation expenditures, as defined in section
47 (c) (2) of the
18Internal Revenue Code, for qualified rehabilitated buildings, as defined in section
47 19(c) (1) of the Internal Revenue Code, on property located in this state, if the cost of
20the person's qualified rehabilitation expenditures is at least $50,000 and the
21rehabilitated property is placed in service after December 31, 2013, and regardless
22of whether the rehabilitated property is used for multiple or revenue-producing
23purposes. No credit may be claimed under this subdivision for property listed as a
24contributing building in the state register of historic places or in the national register
25of historic places and no credit may be claimed under this subdivision for nonhistoric,
1nonresidential property converted into housing if the property has been previously
2used for housing.
SB59,891
3Section
891. 71.07 (9m) (cn) (intro.) of the statutes is amended to read:
SB59,619,64
71.07
(9m) (cn) (intro.) For taxable years beginning after December 31, 2014,
5and before January 1, 2019, the Wisconsin Economic Development Corporation shall
6certify a person to claim a credit under par. (a) 3. if all of the following apply:
SB59,892
7Section
892. 71.07 (9m) (e) of the statutes is renumbered 71.07 (9m) (e) 1.
SB59,893
8Section
893. 71.07 (9m) (e) 2. of the statutes is created to read:
SB59,619,129
71.07
(9m) (e) 2. No credit may be claimed under par. (a) 3. for taxable years
10beginning after December 31, 2018. Credits under par. (a) 3. for taxable years that
11begin before January 1, 2019, may be carried forward to taxable years that begin
12after December 31, 2018.
SB59,894
13Section 894
. 71.10 (4) (cs) of the statutes is created to read:
SB59,619,1514
71.10
(4) (cs) Additional household and dependent care expenses tax credit
15under s. 71.07 (8m).
SB59,895
16Section
895. 71.10 (4) (gye) of the statutes is created to read:
SB59,619,1717
71.10
(4) (gye) Family and individual reinvestment credit under s. 71.07 (5me).
SB59,896
18Section 896
. 71.10 (4) (i) of the statutes is amended to read:
SB59,620,819
71.10
(4) (i) The total of claim of right credit under s. 71.07 (1), farmland
20preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
21beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief
22credit under s. 71.07 (3m), dairy manufacturing facility investment credit under s.
2371.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment
24credit under s. 71.07 (3r), woody biomass harvesting and processing credit under s.
2571.07 (3rm), food processing plant and food warehouse investment credit under s.
171.07 (3rn), business development credit under s. 71.07 (3y), research credit under
2s. 71.07 (4k) (e) 2. a.
and am., film production services credit under s. 71.07 (5f), film
3production company investment credit under s. 71.07 (5h), veterans and surviving
4spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s.
571.07 (3w), electronics and information technology manufacturing zone credit under
6s. 71.07 (3wm), beginning farmer and farm asset owner tax credit under s. 71.07 (8r),
7earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09,
8and taxes withheld under subch. X.
SB59,897
9Section 897
. 71.10 (4) (k) of the statutes is created to read:
SB59,620,1010
71.10
(4) (k) Any amount computed under s. 71.83 (1) (ch).
SB59,898
11Section 898
. 71.10 (10) of the statutes is created to read: