SB111,1232 5Section 1232 . 71.03 (2) (d) 1. of the statutes is amended to read:
SB111,837,86 71.03 (2) (d) 1. Except as provided in subds. 2. and 3. and par. (e), a husband
7and a wife
spouses may file a joint return for income tax purposes even though one
8of the spouses has no gross income or no deductions.
SB111,1233 9Section 1233 . 71.03 (2) (d) 2. of the statutes is amended to read:
SB111,837,1310 71.03 (2) (d) 2. No joint return may be filed if either the husband or wife spouse
11at any time during the taxable year is a nonresident alien, unless an election is in
12effect for the taxable year under section 6013 (g) or (h) of the internal revenue code
13Internal Revenue Code.
SB111,1234 14Section 1234 . 71.03 (2) (d) 3. of the statutes is amended to read:
SB111,837,2115 71.03 (2) (d) 3. No joint return may be filed if the husband and wife spouses
16have different taxable years, except that if their taxable years begin on the same day
17and end on different days because of the death of either or both the joint return may
18be filed with respect to the taxable year of each unless the surviving spouse remarries
19before the close of his or her taxable year or unless the taxable year of either spouse
20is a fractional part of a year under section 443 (a) (1) of the internal revenue code
21Internal Revenue Code.
SB111,1235 22Section 1235 . 71.03 (2) (g) of the statutes is amended to read:
SB111,838,1223 71.03 (2) (g) Joint return following separate return. Except as provided in par.
24(i), if an individual has filed a separate return for a taxable year for which a joint
25return could have been filed by the individual and the individual's spouse under par.

1(d) or (e) and the time prescribed by law for timely filing the return for that taxable
2year has expired, the individual and the individual's spouse may file a joint return
3for that taxable year. A joint return filed by the husband and wife spouses under this
4paragraph is their return for that taxable year, and all payments, credits, refunds
5or other repayments made or allowed with respect to the separate return of each
6spouse for that taxable year shall be taken into account in determining the extent
7to which the tax based upon the joint return has been paid. If a joint return is filed
8under this paragraph, any election, other than the election to file a separate return,
9made by either spouse in that spouse's separate return for that taxable year with
10respect to the treatment of any income, deduction or credit of that spouse may not
11be changed in the filing of the joint return if that election would have been irrevocable
12if the joint return had not been filed.
SB111,1236 13Section 1236 . 71.03 (2) (m) 2. of the statutes is amended to read:
SB111,838,1714 71.03 (2) (m) 2. If a husband and wife spouses change from a joint return to
15separate returns within the time prescribed in subd. 1., the tax paid on the joint
16return shall be allocated between them in proportion to the tax liability shown on
17each separate return.
SB111,1237 18Section 1237 . 71.03 (4) (a) of the statutes is amended to read:
SB111,839,319 71.03 (4) (a) Natural persons whose total income is not in excess of $10,000 and
20consists entirely of wages subject to withholding for Wisconsin tax purposes and not
21more than $200 total of dividends, interest and other wages not subject to Wisconsin
22withholding, and who have elected the Wisconsin standard deduction and have not
23claimed either the credit for homestead property tax relief or deductions for expenses
24incurred in earning such income, shall, at their election, not be required to record on
25their income tax returns the amount of the tax imposed on their Wisconsin taxable

1income. Married persons shall be permitted this election only if the joint income of
2the husband and wife spouses does not exceed $10,000, if both report their incomes
3on the same joint income tax return form, and if both make this election.
SB111,1238 4Section 1238. 71.05 (6) (a) 26. a. of the statutes is amended to read:
SB111,839,105 71.05 (6) (a) 26. a. To the extent that the receipt of such amounts by the owner
6or beneficiary of the account results in a penalty as provided in 26 USC 529 (c) (6),
7any amount that was not used for qualified higher education expenses, as that term
8is defined in 26 USC 529 (e) (3), and was contributed to the account after December
931, 2013,
except that this subd. 26. a. applies only to amounts for which a subtraction
10was made under par. (b) 32.
SB111,1239 11Section 1239 . 71.05 (6) (a) 28. of the statutes is amended to read:
SB111,839,1412 71.05 (6) (a) 28. Upon the termination of an account as described under s.
1316.643 or 224.55, any amount in the account that is returned to an account owner's
14estate.
SB111,1240 15Section 1240 . 71.05 (6) (a) 30. of the statutes is created to read:
SB111,839,1716 71.05 (6) (a) 30. For an account holder, as defined in s. 71.10 (10) (a) 1., or an
17account holder's estate:
SB111,839,1818 a. Any amount distributed under s. 71.10 (10) (d) 2. or 3.
SB111,839,2319 b. Any amount withdrawn from the account created under s. 71.10 (10) (b) 1.
20for any reason other than payment or reimbursement of eligible costs, as defined in
21s. 71.10 (10) (a) 4., except that this subd. 30. b. does not apply to the transfer of funds
22to another account as described in s. 71.10 (10) (c) 4. or to the disbursement of funds
23pursuant to a filing for bankruptcy protection under 11 USC 101 et seq.
SB111,1241 24Section 1241. 71.05 (6) (b) 9. of the statutes is renumbered 71.05 (6) (b) 9.
25(intro.) and amended to read:
SB111,840,17
171.05 (6) (b) 9. (intro.) On assets held more than one year and on all assets
2acquired from a decedent, 30 percent of the capital gain as computed under the
3internal revenue code Internal Revenue Code, not including capital gains for which
4the federal tax treatment is determined under section 406 of P.L. 99-514; not
5including amounts treated as ordinary income for federal income tax purposes
6because of the recapture of depreciation or any other reason; and not including
7amounts treated as capital gain for federal income tax purposes from the sale or
8exchange of a lottery prize. For purposes of this subdivision, the capital gains and
9capital losses for all assets shall be netted before application of the percentage. For
10taxable years beginning after December 31, 2020, no subtraction may be made under
11this subdivision by an individual whose federal adjusted gross income in the taxable
12year exceeds the applicable threshold amount, except that an individual whose
13federal adjusted gross income, less 30 percent of the capital gains otherwise eligible
14for subtraction under this subdivision, is below the applicable threshold amount may
15make the subtraction reduced by the amount that the individual's federal adjusted
16gross income exceeds the applicable threshold amount. In this subdivision,
17“applicable threshold amount” means:
SB111,1242 18Section 1242. 71.05 (6) (b) 9. a. of the statutes is created to read:
SB111,840,2019 71.05 (6) (b) 9. a. For an estate, a trust, a single individual, or an individual who
20files as a head of household, $400,000.
SB111,1243 21Section 1243. 71.05 (6) (b) 9. b. of the statutes is created to read:
SB111,840,2222 71.05 (6) (b) 9. b. For a married couple who files a joint return, $533,000.
SB111,1244 23Section 1244. 71.05 (6) (b) 9. c. of the statutes is created to read:
SB111,840,2524 71.05 (6) (b) 9. c. For a married individual who files a separate return,
25$266,500.
SB111,1245
1Section 1245. 71.05 (6) (b) 17. of the statutes is repealed.
SB111,1246 2Section 1246. 71.05 (6) (b) 18. of the statutes is repealed.
SB111,1247 3Section 1247 . 71.05 (6) (b) 19. c. of the statutes is amended to read:
SB111,841,94 71.05 (6) (b) 19. c. For taxable years beginning before January 1, 2021, for a
5person who is a nonresident or a part-year resident of this state, modify the amount
6calculated under subd. 19. b. by multiplying the amount by a fraction the numerator
7of which is the person's net earnings from a trade or business that are taxable by this
8state and the denominator of which is the person's total net earnings from a trade
9or business.
SB111,1248 10Section 1248 . 71.05 (6) (b) 19. cm. of the statutes is created to read:
SB111,841,2311 71.05 (6) (b) 19. cm. For taxable years beginning after December 31, 2020, for
12a person who is a nonresident or a part-year resident of this state, modify the amount
13calculated under subd. 19. b. by multiplying the amount by a fraction the numerator
14of which is the person's wages, salary, tips, unearned income, and net earnings from
15a trade or business that are taxable by this state and the denominator of which is the
16person's total wages, salary, tips, unearned income, and net earnings from a trade
17or business. In this subd. 19. cm., for married persons filing separately, “ wages,
18salary, tips, unearned income, and net earnings from a trade or business" means the
19separate wages, salary, tips, unearned income, and net earnings from a trade or
20business of each spouse, and for married persons filing jointly, “wages, salary, tips,
21unearned income, and net earnings from a trade or business" means the total wages,
22salary, tips, unearned income, and net earnings from a trade or business of both
23spouses.
SB111,1249 24Section 1249 . 71.05 (6) (b) 19. d. of the statutes is amended to read:
SB111,842,3
171.05 (6) (b) 19. d. Reduce For taxable years beginning before January 1, 2021,
2reduce
the amount calculated under subd. 19. b. or c. to the person's aggregate net
3earnings from a trade or business that are taxable by this state.
SB111,1250 4Section 1250 . 71.05 (6) (b) 19. dm. of the statutes is created to read:
SB111,842,85 71.05 (6) (b) 19. dm. For taxable years beginning after December 31, 2020,
6reduce the amount calculated under subd. 19.b. or cm. to the person's aggregate
7wages, salary, tips, unearned income, and net earnings from a trade or business that
8are taxable by this state.
SB111,1251 9Section 1251 . 71.05 (6) (b) 20. of the statutes is repealed.
SB111,1252 10Section 1252. 71.05 (6) (b) 28. (intro.) of the statutes is amended to read:
SB111,842,1811 71.05 (6) (b) 28. (intro.) An amount paid by a claimant for tuition expenses and
12mandatory student fees for a student who is the claimant or who is the claimant's
13child and the claimant's dependent, as defined under section 152 of the Internal
14Revenue Code, to attend any university, college, technical college or a school
15approved under s. 440.52, that is located in Wisconsin or to attend a public vocational
16school or public institution of higher education in Minnesota under the
17Minnesota-Wisconsin
a reciprocity agreement under s. 36.27 (2r) or 39.47,
18calculated as follows:
SB111,1253 19Section 1253. 71.05 (6) (b) 34. of the statutes is amended to read:
SB111,843,220 71.05 (6) (b) 34. Any amount of basic, special, and incentive pay income or
21compensation, as those terms are used in 37 USC chapters 3 and 5, received from the
22federal government by a person who is a member of a reserve component of the U.S.
23armed forces, after being called into active federal service under the provisions of 10
24USC 12302
(a) or, 10 USC 12304, or 10 USC 12304b, or into special state service

1authorized by the federal department of defense under 32 USC 502 (f), that is paid
2to the person for a period of time during which the person is on active duty.
SB111,1254 3Section 1254. 71.05 (6) (b) 34m. of the statutes is created to read:
SB111,843,94 71.05 (6) (b) 34m. For taxable years beginning after December 31, 2020, any
5amount of pay, as described in s. 321.35, received from this state by a person who is
6a member of the Wisconsin national guard after being called into state active duty
7under s. 321.39 that is paid to the person for the period of time during which the
8person is on state active duty, to the extent that the income is not subtracted under
9subd. 34.
SB111,1255 10Section 1255 . 71.05 (6) (b) 36. of the statutes is repealed.
SB111,1256 11Section 1256 . 71.05 (6) (b) 37. of the statutes is repealed.
SB111,1257 12Section 1257 . 71.05 (6) (b) 39. of the statutes is repealed.
SB111,1258 13Section 1258 . 71.05 (6) (b) 40. of the statutes is repealed.
SB111,1259 14Section 1259 . 71.05 (6) (b) 41. of the statutes is repealed.
SB111,1260 15Section 1260. 71.05 (6) (b) 43. d. of the statutes is amended to read:
SB111,843,1816 71.05 (6) (b) 43. d. For taxable years beginning after December 31, 2013, and
17before January 1, 2021,
up to $3,000 if the claimant has one qualified individual and
18up to $6,000 if the claimant has more than one qualified individual.
SB111,1261 19Section 1261. 71.05 (6) (b) 49. a. of the statutes is amended to read:
SB111,843,2520 71.05 (6) (b) 49. a. Subject to the definitions provided in subd. 49. b. to g. and
21the limitations specified in subd. 49. h. to j. for taxable years beginning after
22December 31, 2013, and subject to the limitation in subd. 49. k. for taxable years
23beginning after December 31, 2017, and subject to the limitation in subd. 49. m. for
24taxable years beginning after December 31, 2020,
tuition expenses that are paid by
25a claimant for tuition for a pupil to attend an eligible institution.
SB111,1262
1Section 1262. 71.05 (6) (b) 49. m. of the statutes is created to read:
SB111,844,62 71.05 (6) (b) 49. m. For taxable years beginning after December 31, 2020, no
3modification may be made under this subdivision unless the adjusted gross income
4of the claimant is less than $100,000 if the claimant is filing as single or head of
5household, $150,000 if the claimant is married and filing jointly, or $75,000 if the
6claimant is married and filing separately.
SB111,1263 7Section 1263 . 71.05 (6) (b) 54. of the statutes is created to read:
SB111,844,128 71.05 (6) (b) 54. For taxable years beginning after December 31, 2020, the
9amount of a national service educational award disbursed under 42 USC 12604
10during the taxable year for the benefit of an individual. No modification may be
11claimed under this subdivision for an amount that is subtracted under subd. 28. or
12deducted under 26 USC 221.
SB111,1264 13Section 1264 . 71.05 (6) (b) 55. of the statutes is created to read:
SB111,844,2114 71.05 (6) (b) 55. For each account an account holder, as defined in s. 71.10 (10)
15(a) 1., creates under s. 71.10 (10) (b) 1. and, subject to s. 71.10 (10) (d), the amount
16deposited, limited to $5,000, by the account holder into the account during the
17taxable year and any interest, dividends, and other gains that accrue in the account
18and are redeposited into it. If the account holder is married and files a joint return,
19the $5,000 limitation shall be increased to $10,000. The subtraction under this
20subdivision does not apply to the transfer of funds from another account as described
21in s. 71.10 (10) (c) 4.
SB111,1265 22Section 1265. 71.05 (8) (a) of the statutes is amended to read:
SB111,845,423 71.05 (8) (a) The carry back of losses to reduce income of prior years may be
24permitted for 2 taxable years.
There shall be added any amount deducted as a federal
25net operating loss carry-back or carry-over and there shall be subtracted for the first

1taxable year for which the subtraction may be made any Wisconsin net operating loss
2carry-back or carry-forward allowable under par. (b) in an amount not in excess of
3the Wisconsin taxable income computed before the deduction of the Wisconsin net
4operating loss carry-back or carry-forward.
SB111,1266 5Section 1266. 71.05 (8) (b) 1. of the statutes is renumbered 71.05 (8) (b) and
6amended to read:
SB111,845,217 71.05 (8) (b) Except as provided in s. 71.80 (25), a Wisconsin net operating loss
8may be carried back against Wisconsin taxable income of the previous 2 years and
9then
carried forward against Wisconsin taxable incomes of the next 20 taxable years,
10if the taxpayer was subject to taxation under this chapter in the taxable year in which
11the loss was incurred, to the extent not offset against other income of the year of loss
12and to the extent not offset against Wisconsin modified taxable income of the 2 years
13preceding the loss and
of any year between the loss year and the taxable year for
14which the loss carry-forward is claimed. In this paragraph, “Wisconsin modified
15taxable income" means Wisconsin taxable income with the following exceptions: a
16net operating loss deduction or offset for the loss year or any taxable year before or
17thereafter is not allowed, the deduction for long-term capital gains under subs. (6)
18(b) 9. and 9m., (25), and (25m) is not allowed, the amount deductible for losses from
19sales or exchanges of capital assets may not exceed the amount includable in income
20for gains from sales or exchanges of capital assets and “Wisconsin modified taxable
21income" may not be less than zero.
SB111,1267 22Section 1267. 71.05 (8) (b) 2. of the statutes is repealed.
SB111,1268 23Section 1268. 71.05 (8) (c) of the statutes is repealed.
SB111,1269 24Section 1269 . 71.05 (22) (a) (title) of the statutes is amended to read:
SB111,846,2
171.05 (22) (a) (title) Election of deductions; husband and wife spousal
2deductions.
SB111,1270 3Section 1270. 71.07 (3q) (c) 1. of the statutes is renumbered 71.07 (3q) (c) 1.
4a. and amended to read:
SB111,846,135 71.07 (3q) (c) 1. a. Partnerships Except as provided in subd. 1. b., partnerships,
6limited liability companies, and tax-option corporations may not claim the credit
7under this subsection, but the eligibility for, and the amount of, the credit are based
8on their payment of amounts under par. (b). A partnership, limited liability company,
9or tax-option corporation shall compute the amount of credit that each of its
10partners, members, or shareholders may claim and shall provide that information
11to each of them. Partners, members of limited liability companies, and shareholders
12of tax-option corporations may claim the credit in proportion to their ownership
13interests.
SB111,1271 14Section 1271. 71.07 (3q) (c) 1. b. of the statutes is created to read:
SB111,847,215 71.07 (3q) (c) 1. b. For taxable years beginning after December 31, 2021,
16partnerships, limited liability companies, and tax-option corporations may elect to
17claim the credit under this subsection, if the credit results from a contract entered
18into with the Wisconsin Economic Development Corporation before December 22,
192017. A partnership, limited liability company, or tax-option corporation that
20wishes to make the election under this subd. 1. b. shall make the election for each
21taxable year on its original return and may not subsequently make or revoke the
22election. If a partnership, limited liability company, or tax-option corporation elects
23to claim the credit under this subsection, the partners, members, and shareholders
24may not claim the credit under this subsection. The credit may not be claimed under
25this subd. 1. b. if one or more partners, members, or shareholders have claimed the

1credit under this subsection for the same taxable year for which the credit is claimed
2under this subd. 1. b.
SB111,1272 3Section 1272. 71.07 (3w) (a) 1. of the statutes is renumbered 71.07 (3w) (a) 1.
4a. and amended to read:
SB111,847,75 71.07 (3w) (a) 1. a. “Base Except as provided in subd. 1. b., “base year" means
6the taxable year beginning during the calendar year prior to the calendar year in
7which the enterprise zone in which the claimant is located takes effect.
SB111,1273 8Section 1273. 71.07 (3w) (a) 1. b. of the statutes is created to read:
SB111,847,129 71.07 (3w) (a) 1. b. For a claimant whose contract with the Wisconsin Economic
10Development Corporation under s. 238.399 is executed after December 31, 2021,
11“base year” means the 12-month period prior to the date on which the claimant was
12certified under s. 238.399 (5).
SB111,1274 13Section 1274. 71.07 (3w) (a) 2m. of the statutes is created to read:
SB111,847,1514 71.07 (3w) (a) 2m. “Contract” means the contract between the claimant and
15Wisconsin Economic Development Corporation under s. 238.399.
SB111,1275 16Section 1275. 71.07 (3w) (a) 6. of the statutes is renumbered 71.07 (3w) (a) 6.
17a. and amended to read:
SB111,847,2118 71.07 (3w) (a) 6. a. “Zone payroll" means the amount of state payroll that is
19attributable to wages paid to full-time employees for services that are performed in
20an enterprise zone. “Zone Except as provided in subd. 6. b., “zone payroll" does not
21include the amount of wages paid to any full-time employees that exceeds $100,000.
SB111,1276 22Section 1276. 71.07 (3w) (a) 6. b. of the statutes is created to read:
SB111,847,2523 71.07 (3w) (a) 6. b. For a claimant whose contract is executed after December
2431, 2021, “zone payroll" does not include the amount of wages paid to any full-time
25employees that exceeds $123,000.
SB111,1277
1Section 1277. 71.07 (3w) (b) (intro.) of the statutes is amended to read:
SB111,848,52 71.07 (3w) (b) Filing claims under pre-2022 contracts; payroll. (intro.) Subject
3to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats.,
4a claimant whose contract is executed prior to January 1, 2022, may claim as a credit
5against the tax imposed under s. 71.02 or 71.08 an amount calculated as follows:
SB111,1278 6Section 1278. 71.07 (3w) (bd) of the statutes is created to read:
SB111,848,107 71.07 (3w) (bd) Filing claims under post-2021 contracts; payroll. Subject to the
8limitations provided in this subsection and s. 238.399, a claimant whose contract is
9executed after December 31, 2021, may claim as a credit against the tax imposed
10under s. 71.02 an amount calculated as follows:
SB111,848,1111 1. Determine the amount that is the lesser of:
SB111,848,1812 a. The number of full-time employees whose annual wages are greater than
13$27,900 in a tier I county or municipality or greater than $37,000 in a tier II county
14or municipality and who the claimant employed in the enterprise zone in the taxable
15year, minus the number of full-time employees whose annual wages were greater
16than $27,900 in a tier I county or municipality or greater than $37,000 in a tier II
17county or municipality and who the claimant employed in the area that comprises
18the enterprise zone in the base year.
SB111,848,2419 b. The number of full-time employees whose annual wages are greater than
20$27,900 in a tier I county or municipality or greater than $37,000 in a tier II county
21or municipality and who the claimant employed in the state in the taxable year,
22minus the number of full-time employees whose annual wages were greater than
23$27,900 in a tier I county or municipality or greater than $37,000 in a tier II county
24or municipality and who the claimant employed in the state in the base year.
Loading...
Loading...