SB70: Bill Text

SB70,904,12 71.10 (4) (ha) Universal changing station credit under s. 71.07 (8m).

SB70,1440 Section 1440 . 71.10 (4) (hd) of the statutes is created to read:

SB70,904,14 71.10 (4) (hd) Family caregiver tax credit under s. 71.07 (8p).

SB70,1441 Section 1441 . 71.10 (4) (hg) of the statutes is created to read:

SB70,904,16 71.10 (4) (hg) Flood insurance premiums credit under s. 71.07 (8s).

SB70,1442 Section 1442 . 71.10 (4) (k) of the statutes is created to read:

SB70,904,18 71.10 (4) (k) Any amount computed under s. 71.83 (1) (ch).

SB70,1443 Section 1443 . 71.10 (10) of the statutes is created to read:

SB70,904,21 71.10 (10) First-time home buyer savings accounts. (a) Definitions. In this subsection:

SB70,904,23 1. “Account holder” means an individual who creates, individually or jointly with his or her spouse, an account under par. (b) 1.

SB70,904,25 2. “Allowable closing costs” means disbursements listed in a settlement statement for the purchase of a single-family residence by a beneficiary.

SB70,905,2 3. “Beneficiary" means a first-time home buyer who is designated by an account holder as the beneficiary of an account created under par. (b) 1.

SB70,905,4 4. “Eligible costs” means the down payment and allowable closing costs for the purchase of a single-family residence in this state by a beneficiary.

SB70,905,9 5. “Financial institution" means a bank, trust company, savings institution, savings bank, savings and loan association, industrial loan association, consumer finance company, credit union, benefit association, insurance company, safe deposit company, money market mutual fund, or similar entity authorized to do business in this state.

SB70,905,13 6. “First-time home buyer” means an individual who resides in this state and did not have, either individually or jointly, a present ownership interest in a single-family residence during the 36 months before the month in which the individual purchases a single-family residence in this state.

SB70,905,16 7. “Single-family residence” means a residence intended for occupation by a single family unit that is purchased by a beneficiary for use as his or her principal residence.

SB70,905,25 (b) Creation of account. 1. An individual may create an account and become the account holder by opening an account at a financial institution for the purpose of paying or reimbursing the eligible costs of a first-time home buyer. The account holder shall designate a beneficiary when the account is created and may designate himself or herself as the beneficiary. An account may have only one beneficiary at any one time. An individual may be the beneficiary of more than one account, and an individual may be the account holder of more than one account, but an account holder may not have more than one account that designates the same beneficiary. The account holder may change the beneficiary at any time.

SB70,906,2 2. An individual may jointly own an account created under subd. 1 with his or her spouse.

SB70,906,4 3. Only cash and marketable securities may be contributed to an account created under subd. 1.

SB70,906,7 4. Persons other than an account holder may contribute to an account created under subd. 1, but the subtraction under s. 71.05 (6) (b) 57. may be made only by the account holder.

SB70,906,11 (c) Account holder rights and responsibilities. 1. An account holder may withdraw funds from an account created under par. (b) 1. to pay eligible costs for the benefit of the beneficiary or to reimburse the beneficiary for eligible costs the beneficiary incurs and has paid.

SB70,906,14 2. An account holder may not use funds in an account created under par. (b) 1. to pay any expenses he or she incurs in administering the account, although a financial institution may deduct a service fee from the account.

SB70,906,18 3. Annually, an account holder shall submit to the department with his or her income tax return, on forms prepared by the department, information regarding the account created under par. (b) 1. The information submitted shall include all of the following:

SB70,906,20 a. A list of transactions in the account during the taxable year to which the return relates, including the beginning and ending balances of the account.

SB70,906,21 b. The 1099 form issued by the financial institution that relates to the account.

SB70,906,23 c. A list of eligible costs, and other costs, for which funds from the account were withdrawn during the taxable year to which the return relates.

SB70,907,3 4. An account holder may withdraw funds from an account created under par. (b) 1. with no penalty due under s. 71.83 (1) (ch) and no responsibility to make an addition under s. 71.05 (6) (a) 30. if he or she immediately transfers the funds to a different financial institution and deposits the funds into an account created under par. (b) 1. at that financial institution.

SB70,907,6 (d) Limitations on accounts, dissolution. 1. An account holder may not claim a subtraction under s. 71.05 (6) (b) 57. for more than a total of $50,000 of deposits into any account created under par. (b) 1. for each beneficiary.

SB70,907,9 2. An account holder shall dissolve an account created under par. (b) 1. no later than 120 months after it is created. The financial institution shall distribute any funds in the account at dissolution to the account holder.

SB70,907,12 3. If an account holder dies while funds remain in an account created under par. (b) 1., the account shall be dissolved and the financial institution shall distribute the funds to the account holder's estate.

SB70,907,13 (e) Department responsibilities. The department shall:

SB70,907,16 1. Prepare and distribute any forms that an account holder is required to submit under par. (c) 3. and any other forms necessary to administer this subsection and the adjustments to income under s. 71.05 (6) (a) 30. and (b) 57.

SB70,907,18 2. Prepare and distribute to financial institutions and potential home buyers informational materials about the accounts described in this subsection.

SB70,1444 Section 1444. 71.17 (2) of the statutes is amended to read:

SB70,908,2 71.17 (2) Lien on trust estate; income taxes levied against beneficiary. All income taxes levied against the income of beneficiaries shall be a lien on that portion of the trust estate or interest therein from which the income taxed is derived, and such taxes shall be paid by the fiduciary, if not paid by the distributee, before the same become delinquent. Every person who, as a fiduciary under the provisions of this subchapter, pays an income tax shall have all the rights and remedies of reimbursement for any taxes assessed against him or her or paid by him or her in such capacity, as provided in s. 70.19 (1) and (2), 2021 stats.

SB70,1445 Section 1445. 71.21 (4) (a) of the statutes is amended to read:

SB70,908,7 71.21 (4) (a) The amount of the credits computed by a partnership under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8m), and (10) and passed through to partners shall be added to the partnership's income.

SB70,1446 Section 1446. 71.22 (4) of the statutes is repealed and recreated to read:

SB70,908,9 71.22 (4) “Internal Revenue Code" has the meaning given in s. 71.99.

SB70,1447 Section 1447. 71.22 (4m) of the statutes is repealed and recreated to read:

SB70,908,13 71.22 (4m) For corporations that are subject to a tax on unrelated business income under s. 71.26 (1) (a), “Internal Revenue Code" has the meaning given in s. 71.99.

SB70,1448 Section 1448. 71.22 (5) of the statutes is repealed.

SB70,1449 Section 1449. 71.22 (5g) of the statutes is repealed.

SB70,1450 Section 1450. 71.22 (5m) of the statutes is repealed.

SB70,1451 Section 1451. 71.26 (1) (b) of the statutes is amended to read:

SB70,908,22 71.26 (1) (b) Political units. Income received by the United States, the state and all counties, cities, villages, towns, school districts, technical college districts, joint local water authorities created under s. 66.0823, transit authorities created under s. 66.1039, long-term care districts under s. 46.2895 or other political units of this state.

SB70,1452 Section 1452. 71.26 (2) (a) 4. of the statutes is amended to read:

SB70,909,4 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm), (1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8m), and (10) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, limited liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).

SB70,1453 Section 1453. 71.26 (2) (b) of the statutes is repealed and recreated to read:

SB70,909,15 71.26 (2) (b) Regulated investment companies, real estate mortgage investment conduits, real estate investment trusts, and financial asset securitization investment trusts. For a corporation, conduit, or common law trust that qualifies as a regulated investment company, real estate mortgage investment conduit, real estate investment trust, or financial asset securitization investment trust under the Internal Revenue Code, “net income" means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income, federal real estate investment trust taxable income, or financial asset securitization investment trust taxable income of the corporation, conduit, or trust as determined under the Internal Revenue Code.

SB70,1454 Section 1454. 71.26 (3) (j) of the statutes is amended to read:

SB70,909,25 71.26 (3) (j) Sections 243, 244, 245, 245A, 246 and 246A are excluded and replaced by the rule that corporations may deduct from income dividends received from a corporation with respect to its common stock if the corporation receiving the dividends owns, directly or indirectly, during the entire taxable year at least 70 percent of the total combined voting stock of the payor corporation. In this paragraph, “dividends received" means gross dividends minus taxes on those dividends paid to a foreign nation and claimed as a deduction under this chapter. The same dividends may not be deducted more than once and may not be used in the determination of a net business loss under ss. 71.26 (4) and 71.45 (4).

SB70,1455 Section 1455. 71.26 (4) (a) of the statutes is amended to read:

SB70,910,19 71.26 (4) (a) Except as provided in par. (b) and s. 71.80 (25), a corporation, except a tax-option corporation or an insurer to which s. 71.45 (4) applies, may offset against its Wisconsin net business income any Wisconsin net business loss incurred in any of the 20 immediately preceding taxable years, if the corporation was subject to taxation under this chapter in the taxable year in which the loss was incurred, to the extent not offset by other items of Wisconsin income in the loss year and by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed. For purposes of this subsection, Wisconsin net business income or loss shall consist of all the income attributable to the operation of a trade or business in this state, less the business expenses allowed as deductions in computing net income, except that the dividends received deduction under sub. (3) (j) may not be used in the determination of a net business loss. The Wisconsin net business income or loss of corporations engaged in business within and without the state shall be determined under s. 71.25 (6) and (10) to (12). Nonapportionable losses having a Wisconsin situs under s. 71.25 (5) (b) shall be included in Wisconsin net business loss; and nonapportionable income having a Wisconsin situs under s. 71.25 (5) (b), whether taxable or exempt, shall be included in other items of Wisconsin income and Wisconsin net business income for purposes of this subsection.

SB70,1456 Section 1456. 71.28 (3w) (a) 2m. of the statutes is created to read:

SB70,910,22 71.28 (3w) (a) 2m. “Contract” means a contract between the claimant and the Wisconsin Economic Development Corporation under s. 238.399.

SB70,1457 Section 1457. 71.28 (3w) (a) 6. of the statutes is renumbered 71.28 (3w) (a) 6. a. and amended to read:

SB70,911,4 71.28 (3w) (a) 6. a. “Zone payroll" means the amount of state payroll that is attributable to wages paid to full-time employees for services that are performed in an enterprise zone. “Zone Except as provided in subd. 6. b., “zone payroll" does not include the amount of wages paid to any full-time employees that exceeds $100,000.

SB70,1458 Section 1458. 71.28 (3w) (a) 6. b. of the statutes is created to read:

SB70,911,8 71.28 (3w) (a) 6. b. For a claimant whose contract is executed after December 31, 2023, “zone payroll" does not include the amount of wages paid to any full-time employees that exceeds $141,300.

SB70,1459 Section 1459. 71.28 (3w) (b) (intro.) of the statutes is amended to read:

SB70,911,13 71.28 (3w) (b) Filing claims under pre-2024 contracts; payroll. (intro.) Subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant whose contract is executed prior to January 1, 2024, may claim as a credit against the tax imposed under s. 71.23 an amount calculated as follows:

SB70,1460 Section 1460. 71.28 (3w) (bd) of the statutes is created to read:

SB70,911,18 71.28 (3w) (bd) Filing claims under post-2023 contracts; payroll. Subject to the limitations provided in this subsection and s. 238.399, a claimant whose contract is executed after December 31, 2023, may claim as a credit against the tax imposed under s. 71.23 an amount calculated as follows:

SB70,911,19 1. Determine the amount that is the lesser of:

SB70,912,2 a. The number of full-time employees whose annual wages are greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year, minus the number of full-time employees whose annual wages were greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the area that comprises the enterprise zone in the base year.

SB70,912,8 b. The number of full-time employees whose annual wages are greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the state in the taxable year, minus the number of full-time employees whose annual wages were greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the state in the base year.

SB70,912,15 2. Determine the claimant's average zone payroll by dividing total wages for full-time employees whose annual wages are greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year by the number of full-time employees whose annual wages are greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year.

SB70,912,18 3. For employees in a tier I county or municipality, subtract $32,000 from the amount determined under subd. 2. and for employees in a tier II county or municipality, subtract $42,390 from the amount determined under subd. 2.

SB70,912,20 4. Multiply the amount determined under subd. 3. by the amount determined under subd. 1.

SB70,912,22 5. Multiply the amount determined under subd. 4. by the percentage determined under s. 238.399, not to exceed 7 percent.

SB70,1461 Section 1461. 71.28 (3w) (bm) 1. of the statutes is amended to read:

SB70,913,9 71.28 (3w) (bm) 1. In addition to the credits under par. pars. (b) and (bd) and subds. 2., 3., and 4. to 5., 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. 71.23 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.

SB70,1462 Section 1462. 71.28 (3w) (bm) 2. of the statutes is renumbered 71.28 (3w) (bm) 2. (intro.) and amended to read:

SB70,913,15 71.28 (3w) (bm) 2. (intro.) In addition to the credits under par. pars. (b) and (bd) and subds. 1., 3., and 4., and 5., 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. 71.23 one of the following amounts:

SB70,914,2 a. For a claimant whose contract is executed prior to January 1, 2024, 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.

SB70,1463 Section 1463. 71.28 (3w) (bm) 2. b. of the statutes is created to read:

SB70,914,13 71.28 (3w) (bm) 2. b. For a claimant whose contract is executed after December 31, 2023, an amount equal to the percentage, as determined under s. 238.399, 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 $32,000 in a tier I county or municipality, not including the wages paid to the employees determined under par. (bd) 1., or greater than $42,390 in a tier II county or municipality, not including the wages paid to the employees determined under par. (bd) 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.

SB70,1464 Section 1464. 71.28 (3w) (bm) 3. of the statutes is amended to read:

SB70,914,20 71.28 (3w) (bm) 3. In addition to the credits under par. pars. (b) and (bd) and subds. 1., 2., and 4., and 5., 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. 71.23 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.

SB70,1465 Section 1465. 71.28 (3w) (bm) 4. of the statutes is amended to read:

SB70,915,5 71.28 (3w) (bm) 4. In addition to the credits under par. pars. (b) and (bd) and subds. 1., 2., and 3., and 5., 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. 71.23, 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.

SB70,1466 Section 1466. 71.28 (3w) (bm) 5. of the statutes is renumbered 71.28 (3w) (bm) 5. (intro.) and amended to read:

SB70,915,13 71.28 (3w) (bm) 5. (intro.) In addition to the credits under par. pars. (b) and (bd) and subds. 1. to 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant that has retained the minimum number of full-time employees determined under s. 238.399 (5) (f) and maintained average zone payroll for the taxable year equal to or greater than the base year may claim as a credit against the tax imposed under s. 71.23 one of the following amounts:

SB70,915,23 a. For a claimant whose contract is executed prior to January 1, 2024, an amount equal to the percentage, as determined by the Wisconsin Economic Development Corporation, of the claimant's zone payroll paid in the 12 months prior to the certification date to the claimant's full-time employees in the enterprise zone 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 or greater than $30,000 in a tier II county or municipality. The amount that the claimant may claim as credit under this subdivision for a taxable year shall not exceed $2,000,000. A claimant may claim a credit under this subdivision for no more than 5 consecutive taxable years.

SB70,1467 Section 1467. 71.28 (3w) (bm) 5. b. of the statutes is created to read:

SB70,916,6 71.28 (3w) (bm) 5. b. For a claimant whose contract is executed after December 31, 2023, an amount equal to the percentage, as determined by the Wisconsin Economic Development Corporation, of the claimant's zone payroll paid in the 12 months prior to the certification date to the claimant's full-time employees in the enterprise zone whose annual wages are greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality.

SB70,1468 Section 1468. 71.28 (3w) (c) 5. of the statutes is created to read:

SB70,916,9 71.28 (3w) (c) 5. A claimant may claim a credit under par. (bm) 2. for no more than 5 consecutive taxable years.