2017 Wisconsin Act 59

71.47 (3y) (c) 1. Partnerships For claims filed before January 1, 2018, partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests. For claims filed after December 31, 2017, partnerships, limited liability companies, and tax-option corporations may claim the credit under this subsection as provided under par. (d) 2. b.

59,1111e Section 1111e. 71.47 (3y) (c) 2. of the statutes is amended to read:

71.47 (3y) (c) 2. No For claims filed before January 1, 2018, no credit may be allowed under this subsection unless the claimant includes with the claimant's return a copy of the claimant's certification for tax benefits under s. 238.308.

59,1111f Section 1111f. 71.47 (3y) (d) 1. of the statutes is amended to read:

71.47 (3y) (d) 1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection. This subdivision does not apply to claims filed after December 31, 2017.

59,1111g Section 1111g. 71.47 (3y) (d) 2. of the statutes is renumbered 71.47 (3y) (d) 2. a. and amended to read:

71.47 (3y) (d) 2. a. If For claims filed before January 1, 2018, if the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.43, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (bg). Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subd. 2. a.

59,1111h Section 1111h. 71.47 (3y) (d) 2. b. of the statutes is created to read:

71.47 (3y) (d) 2. b. For claims filed after December 31, 2017, claims under this subsection shall be made to the Wisconsin Economic Development Corporation using policies and procedures established by the corporation board. The corporation shall certify valid claims to the department of administration for payment by check, share draft, or other draft drawn from the appropriation under s. 20.835 (2) (bg). Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subd. 2. b.

59,1111k Section 1111k. 71.47 (4) (k) of the statutes is created to read:

71.47 (4) (k) Refunds. Notwithstanding par. (f), for taxable years beginning after December 31, 2017, if the allowable amount of the claim under par. (ad) 4., 5., or 6. exceeds the tax otherwise due under s. 71.43, all of the following apply:

1. The amount of the claim not used to offset the tax due, not to exceed 10 percent of the allowable amount of the claim under par. (ad) 4., 5., or 6., shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (d).

2. The amount of the claim not used to offset the tax due and not certified for payment under subd. 1. may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 15 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.

59,1111m Section 1111m. 71.47 (5b) (d) 3. of the statutes is amended to read:

71.47 (5b) (d) 3. Except as provided under s. 238.15 (3) (d) (intro.), for investments made after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

59,1112 Section 1112 . 71.47 (5r) (a) 2. of the statutes is amended to read:

71.47 (5r) (a) 2. “Course of instruction" has the meaning given in s. 38.50 440.52 (1) (c).

59,1113 Section 1113 . 71.47 (5r) (a) 6. b. of the statutes is amended to read:

71.47 (5r) (a) 6. b. A school approved under s. 38.50 440.52, if the delivery of education occurs in this state.

59,1113u Section 1113u. 71.47 (6) (h) of the statutes is amended to read:

71.47 (6) (h) Any person, including a nonprofit entity described in section 501 (c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under par. (a) 2m. or 3., in whole or in part, to another person who is subject to the taxes imposed under s. 71.02, 71.08, 71.23, or 71.43, if the person notifies the department of the transfer, and submits with the notification a copy of the transfer documents, and the department certifies ownership of the credit with each transfer.

59,1114 Section 1114 . 71.47 (6) (i) of the statutes is created to read:

71.47 (6) (i) 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.

59,1114j Section 1114j. 71.49 (1) (c) of the statutes is amended to read:

71.49 (1) (c) Research credit under s. 71.47 (4) , except as provided under par. (f).

59,1114k Section 1114k. 71.49 (1) (f) of the statutes is amended to read:

71.49 (1) (f) The total of farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.47 (2m), dairy manufacturing facility investment credit under s. 71.47 (3p), jobs credit under s. 71.47 (3q), meat processing facility investment credit under s. 71.47 (3r), woody biomass harvesting and processing credit under s. 71.47 (3rm), food processing plant and food warehouse investment credit under s. 71.47 (3rn), enterprise zone jobs credit under s. 71.47 (3w), business development credit under s. 71.47 (3y), research credit under s. 71.47 (4) (k) 1., film production services credit under s. 71.47 (5f), film production company investment credit under s. 71.47 (5h), beginning farmer and farm asset owner tax credit under s. 71.47 (8r), and estimated tax payments under s. 71.48.

59,1115 Section 1115 . 71.52 (1d) of the statutes is created to read:

71.52 (1d) “Disabled” means an individual who is unable to engage in any substantial gainful employment by reason of a medically determinable physical or mental impairment which has lasted or is reasonably expected to last for a continuous period of not less than 12 months.

59,1116 Section 1116 . 71.52 (1e) of the statutes is created to read:

71.52 (1e) “Disqualified loss" means the sum of the following amounts, exclusive of net gains from the sale or exchange of capital or business assets and exclusive of net profits:

(a) Net loss from sole proprietorships.

(b) Net capital loss.

(c) Net loss from sales of business property, excluding loss from involuntary conversions.

(d) Net loss from rental real estate, royalties, partnerships, tax-option S corporations, trusts, estates, and real estate mortgage investment conduits.

(e) Net farm loss.

59,1117 Section 1117 . 71.52 (1m) of the statutes is created to read:

71.52 (1m) “Farmer,” “farming,” and “farm premises” have the meanings given in s. 102.04 (3).

59,1118 Section 1118 . 71.52 (6) of the statutes is amended to read:

71.52 (6) “Income" means the sum of Wisconsin adjusted gross income and the following amounts, to the extent not included in Wisconsin adjusted gross income: maintenance payments (except foster care maintenance and supplementary payments excludable under section 131 of the internal revenue code), support money, cash public assistance (not including credit granted under this subchapter and amounts under s. 46.27), cash benefits paid by counties under s. 59.53 (21), the gross amount of any pension or annuity (including railroad retirement benefits, all payments received under the federal social security act and veterans disability pensions), nontaxable interest received from the federal government or any of its instrumentalities, nontaxable interest received on state or municipal bonds, worker's compensation, unemployment insurance, the gross amount of “loss of time" insurance, compensation and other cash benefits received from the United States for past or present service in the armed forces, scholarship and fellowship gifts or income, capital gains, gain on the sale of a personal residence excluded under section 121 of the internal revenue code, dividends, income of a nonresident or part-year resident who is married to a full-year resident, housing allowances provided to members of the clergy, the amount by which a resident manager's rent is reduced, nontaxable income of an American Indian, nontaxable income from sources outside this state and nontaxable deferred compensation. Intangible drilling costs, depletion allowances and depreciation, including first-year depreciation allowances under section 179 of the internal revenue code, amortization, contributions to individual retirement accounts under section 219 of the internal revenue code, contributions to Keogh plans, net operating loss carry-backs and carry-forwards and, capital loss carry-forwards, and disqualified losses deducted in determining Wisconsin adjusted gross income shall be added to “income". “Income" does not include gifts from natural persons, cash reimbursement payments made under title XX of the federal social security act, surplus food or other relief in kind supplied by a governmental agency, the gain on the sale of a personal residence deferred under section 1034 of the internal revenue code or nonrecognized gain from involuntary conversions under section 1033 of the internal revenue code. Amounts not included in adjusted gross income but added to “income" under this subsection in a previous year and repaid may be subtracted from income for the year during which they are repaid. Scholarship and fellowship gifts or income that are included in Wisconsin adjusted gross income and that were added to household income for purposes of determining the credit under this subchapter in a previous year may be subtracted from income for the current year in determining the credit under this subchapter. A marital property agreement or unilateral statement under ch. 766 has no effect in computing “income" for a person whose homestead is not the same as the homestead of that person's spouse.

59,1120 Section 1120 . 71.54 (1) (g) 4. of the statutes is created to read:

71.54 (1) (g) 4. Except as provided in subds. 5. and 7., for claims filed in 2018 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year, no credit may be allowed under this paragraph unless the claimant or the claimant's spouse is over the age of 61 at the close of the year to which the claim relates.

59,1121 Section 1121 . 71.54 (1) (g) 5., 6. and 7. of the statutes are created to read:

71.54 (1) (g) 5. For claims filed in 2018 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year, no credit may be allowed under this paragraph unless the claimant is disabled.

6. With regard to a claimant who is disabled, the claimant shall provide with his or her return proof that his or her disability is in effect for the taxable year to which the claim relates. Proof of disability may be demonstrated by any of the following:

a. A statement from the Veteran's Administration certifying that the claimant is receiving a disability benefit due to 100 percent disability.

b. A document, or copy of a document, from the Social Security Administration stating the date the disability began.

c. A statement from a physician, as defined in s. 448.01 (5), stating the beginning date of the disability and whether the disability is permanent or temporary.

7. For claims filed in 2018 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year, with regard to a claimant who is not disabled or who is under the age of 62 at the close of the year to which the claim relates, no credit may be allowed under this paragraph if the claimant had no earned income in the taxable year to which the claim relates.

59,1125 Section 1125 . 71.55 (10) of the statutes is created to read:

71.55 (10) Farmers. Notwithstanding the provision in s. 71.52 (6) that requires the addition of certain disqualified losses to income, such an addition may not be made by 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.

59,1125s Section 1125s. 71.613 (2) (intro.) of the statutes is amended to read:

71.613 (2) Filing claims. (intro.) Subject to the limitations and conditions provided in sub. (3), a claimant may claim as a credit against the tax imposed under s. 71.02, 71.08, 71.23, or 71.43, an amount calculated by multiplying the claimant's qualifying acres by one of the following amounts, and if the allowable amount of the claim exceeds the income taxes otherwise due on the claimant's income or if there are no Wisconsin income taxes due on the claimant's income, the amount of the claim not used as an offset against income 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 from the appropriation under s. 20.835 (2) (do):

59,1127 Section 1127 . 71.65 (2) (b) of the statutes is amended to read:

71.65 (2) (b) Every resident of this state and every nonresident carrying on activities within this state, whether taxable or not under this chapter, who pays in any calendar year for services performed within this state by an individual remuneration which that is excluded from the definition of wages, in the amount of $600 or more, shall, on or before February 28 January 31 of the year following the year in which the payments are made, furnish a statement, in such form as required by the department, disclosing the name of the payor, the name and address of the recipient of the payment, and the total amount paid in such the calendar year to such the recipient. The person who pays for the services shall, on or before January 31 of the year in which the statement is required to be furnished to the department that deadline, furnish the recipient of the payment with a copy of that the statement. In any case in which an individual receives wages and also remuneration for services which remuneration is excluded from such definition, both from the same payor, the wages and the excluded remuneration shall both be reported in the report required under this subsection in a manner satisfactory to the department, regardless of the amount of the excluded remuneration.

59,1128 Section 1128 . 71.65 (5) (a) (intro.), 1. and 2. of the statutes are consolidated, renumbered 71.65 (5) (a) and amended to read:

71.65 (5) (a) If an employer applies for an extension and shows good cause why an extension should be granted, the department may grant the following extensions for the following statements: 1. Thirty days a 30-day extension for filing a wage statement under sub. (1) or, an annual reconciliation report under sub. (3) (a) or (d). 2. Sixty days for filing, or a statement of nonwage payments under sub. (2) (b).

59,1131 Section 1131 . 71.70 (1) of the statutes is amended to read:

71.70 (1) Persons other than corporations. Persons other than corporations deducting rent or royalties in determining taxable income shall file a report that shows the amounts and the name and address of all natural persons each individual who are residents is a resident of this state and to whom royalties of $600 or more were are paid during the taxable year; and the amounts and the name and address of all natural persons each individual to whom rent of $600 or more is paid during the taxable year for property having a situs in this state. Such information shall be filed The person who deducts rent or royalties shall file the report on or before February 28 January 31 of the year following the year in which the payments were are made. The person who deducts rent or royalties shall, on or before January 31 of the year in which the report is required to be furnished that deadline, furnish the recipient of the payment with a copy of that the report.

59,1132 Section 1132 . 71.70 (2) of the statutes is amended to read:

71.70 (2) Corporations. All corporations doing business in this state shall file, on or before March 15 January 31, any information relative to payments made within the preceding calendar year of rents and royalties to all natural persons individuals taxable thereon under this chapter. A The corporation that makes the payment shall, on or before January 31 of the year in which the statement is required to be furnished to the department that deadline, furnish the recipient of the payment with a copy of that the statement.

59,1133 Section 1133 . 71.71 (title) of the statutes is amended to read:

71.71 (title) Wages subject to withholding.

59,1134 Section 1134 . 71.715 of the statutes is created to read:

71.715 Wages not subject to withholding. (1) Statement employer must furnish to employee. (a) Every employer, as defined in s. 71.63 (3), that pays in any calendar year wages, as defined in s. 71.63 (6), to an employee, as defined in s. 71.63 (2), from which the employer was not required to deduct and withhold from the employee under the general withholding provisions of subch. X., shall furnish to the employee, with respect to the wages paid by the employer to the employee during a calendar year, on or before January 31 of the year following the year in which the wages are paid, or, if the employee's employment is terminated before the close of a calendar year, on the day on which the last payment of wages is made, 2 legible copies of a written statement showing all of the following:

1. The name of the employer and the employer's Wisconsin income tax identification number, if any.

2. The name of the employee and the employee's social security number, if any.

3. The total amount of wages the employer paid in the calendar year to the employee.

(b) An employee that receives a statement under par. (a) shall furnish the department one copy of the statement along with the employee's return for the year.

(2) Statement employer must file. Every employer required to furnish a statement under sub. (1) (a) shall file, with respect to the wages paid by the employer to an employee as described in sub. (1) during the calendar year, on or before January 31 of the year following the year in which the wages are paid, one copy of the statement.

59,1135 Section 1135 . 71.72 of the statutes is amended to read:

71.72 Statement of nonwage payments. Every resident of this state and every nonresident carrying on activities within this state, whether taxable or not under this chapter, who pays in any calendar year for services performed within this state by an individual remuneration which that is excluded from the definition of wages in s. 71.63 (6), in the amount of $600 or more, shall, on or before February 28 January 31 of the year following the year in which the payments were are made, file a statement disclosing the name of the payor, the name and address of the recipient of the payment, and the total amount paid in such the calendar year to such the recipient. The person who pays for the services shall, on or before January 31 of the year in which the statement is required to be furnished to the department that deadline, furnish the recipient of the payment with a copy of that the statement. In any case in which an individual receives wages, as defined in s. 71.63 (6), and also remuneration for services which remuneration is excluded from such definition, both from the same payor, the wages and the excluded remuneration shall both be reported in the statement required by s. 71.71 (2) in a manner satisfactory to the department, regardless of the amount of the excluded remuneration.

59,1136 Section 1136 . 71.73 (2) (intro.), (a), (b) and (c) of the statutes are consolidated, renumbered 71.73 (2) and amended to read:

71.73 (2) Extensions. If an employer a person applies for an extension and shows good cause why an extension should be granted, the department of revenue may grant the following extensions for the following statements: (a) Sixty days a 30-day extension for filing a rent and royalty statement under s. 71.70. (b) Thirty days for filing, a wage statement under s. 71.71 . (c) Sixty days for filing, a wage statement under s. 71.715, or a statement of nonwage payments under s. 71.72.

59,1139 Section 1139 . 71.75 (7m) of the statutes is created to read:

71.75 (7m) The department shall not issue a refund to an employed individual before March 1 unless both the individual and the individual's employer have filed all required returns and forms with the department for the taxable year for which the individual claims a refund.

59,1140 Section 1140 . 71.77 (2n) of the statutes is created to read:

71.77 (2n) Notwithstanding sub. (2), the department may make an assessment within one year of receiving notice of revocation from the Wisconsin Economic Development Corporation to recover all or a part of any tax credit claimed by a taxpayer, but revoked by the corporation.

59,1151 Section 1151. 71.80 (20) of the statutes is amended to read:

71.80 (20) Electronic filing. If a person is required to file 50 10 or more wage statements or 50 10 or more of any one type of information return with the department, the person shall file the statements or the returns electronically, by means prescribed by the department.

59,1152 Section 1152 . 71.80 (25) of the statutes is created to read:

71.80 (25) Net operating and business loss carry-forward and carry-back. (a) No offset of Wisconsin income may be made under s. 71.05 (8) (b) 1., 71.26 (4) (a), or 71.45 (4) (a) unless the incurred loss was computed on a return that was filed within 4 years of the unextended due date for filing the original return for the taxable year in which the loss was incurred.

(b) No carry-back of a loss may be allowed under s. 71.05 (8) (b) 1. unless claimed within 4 years of the unextended due date for filing the original return for the taxable year to which the loss is carried back.

59,1153 Section 1153 . 71.83 (1) (cf) of the statutes is created to read:

71.83 (1) (cf) Inconsistent estate basis reporting. If any portion of an underpayment of tax required to be shown on a Wisconsin return is the result of an inconsistent estate basis reporting, there shall be added to the tax an amount equal to 20 percent of that portion of the underpayment. For purposes of this paragraph, an inconsistent estate basis reporting occurs if the property basis claimed on a Wisconsin return exceeds the property basis determined under section 1014 (f) of the Internal Revenue Code. The department shall assess, levy, and collect the penalty under this paragraph in the same manner as it assesses, levies, and collects taxes under this chapter.

59,1160d Section 1160d. 71.98 (8) of the statutes is created to read:

71.98 (8) Charitable distributions from an individual retirement account. For taxable years beginning after December 31, 2017, section 408 (d) (8) of the Internal Revenue Code, relating to a tax-free qualified charitable distribution from an individual retirement account directly to a charitable organization.

59,1162 Section 1162 . 73.03 (69) (b) 1. of the statutes is amended to read:

73.03 (69) (b) 1. The business has at least 2 full-time employees and the amount of payroll compensation paid by the business in this state is equal to at least 50 percent of the amount of all payroll compensation paid by the business. An employee of a professional employer organization, as defined in s. 202.21 (5), or a professional employer group, as defined in s. 202.21 (4), who is performing services for a client is considered an employee solely of the client for purposes of this subdivision.