AB40-ASA1, s. 1758 18Section 1758. 71.05 (6) (b) 31. of the statutes is amended to read:
AB40-ASA1,692,2219 71.05 (6) (b) 31. Any increase in value of a college savings account, as described
20in s. 14.64 16.641, except that the subtraction under this subdivision may not be
21claimed by any individual who has made a nonqualified withdrawal, as described in
22s. 14.64 16.641 (2) (e).
AB40-ASA1, s. 1759 23Section 1759. 71.05 (6) (b) 32. (intro.) of the statutes is amended to read:
AB40-ASA1,693,424 71.05 (6) (b) 32. (intro.) An amount paid into a college savings account, as
25described in s. 14.64 16.641, by the owner of the account or by a parent, grandparent,

1great-grandparent, aunt, or uncle of the beneficiary
, if the beneficiary of the account
2is one of the following: the claimant; the claimant's child; the claimant's grandchild;
3the claimant's great-grandchild; or the claimant's niece or nephew; calculated as
4follows:
AB40-ASA1, s. 1760 5Section 1760. 71.05 (6) (b) 33. (intro.) of the statutes is amended to read:
AB40-ASA1,693,116 71.05 (6) (b) 33. (intro.) An amount paid into a college tuition and expenses
7program, as described in s. 14.63 16.64, by the owner of the account or by a parent,
8grandparent, great-grandparent, aunt, or uncle of the beneficiary
, if the beneficiary
9of the account is one of the following: the claimant; the claimant's child; the
10claimant's grandchild; the claimant's great-grandchild; or the claimant's niece or
11nephew; calculated as follows:
AB40-ASA1, s. 1761 12Section 1761. 71.05 (8) (b) of the statutes is amended to read:
AB40-ASA1,693,2513 71.05 (8) (b) A Wisconsin net operating loss may be carried forward against
14Wisconsin taxable incomes of the next 15 taxable years, if the taxpayer was subject
15to taxation under this chapter in the taxable year in which the loss was sustained,
16to the extent not offset against other income of the year of loss and to the extent not
17offset against Wisconsin modified taxable income of any year between the loss year
18and the taxable year for which the loss carry-forward is claimed. In this paragraph,
19"Wisconsin modified taxable income" means Wisconsin taxable income with the
20following exceptions: a net operating loss deduction or offset for the loss year or any
21taxable year thereafter is not allowed, the deduction for long-term capital gains
22under sub. subs. (6) (b) 9. and 9m. and (25) is not allowed, the amount deductible for
23losses from sales or exchanges of capital assets may not exceed the amount
24includable in income for gains from sales or exchanges of capital assets and
25"Wisconsin modified taxable income" may not be less than zero.
AB40-ASA1, s. 1762
1Section 1762. 71.05 (24) (a) 4. of the statutes is amended to read:
AB40-ASA1,694,32 71.05 (24) (a) 4. "Qualified new business venture" means a business certified
3by the department of commerce under s. 238.20 or s. 560.2085, 2009 stats.
AB40-ASA1, s. 1763 4Section 1763. 71.05 (25) of the statutes is created to read:
AB40-ASA1,694,65 71.05 (25) Capital gains exclusion; Wisconsin-source assets. (a) In this
6subsection:
AB40-ASA1,694,97 1. "Claimant" means an individual; an individual partner or member of a
8partnership, limited liability company, or limited liability partnership; or an
9individual shareholder of a tax-option corporation.
AB40-ASA1,694,1610 2. "Qualifying gain" means the gain realized from the sale of any asset which
11is a Wisconsin capital asset in the year it is purchased by the claimant and for at least
122 of the subsequent 4 years; that is purchased after December 31, 2010; that is held
13for at least 5 uninterrupted years; and that is treated as a long-term gain under the
14Internal Revenue Code; except that a qualifying gain may not include any amount
15for which the claimant claimed a subtraction under sub. (24) (b) or any gain described
16under sub. (26) (b) 1.
AB40-ASA1,694,1817 3. "Wisconsin business" means a business certified by the Wisconsin Economic
18Development Corporation under s. 238.145.
AB40-ASA1,694,1919 4. "Wisconsin capital asset" means any of the following:
AB40-ASA1,694,2120 a. Real or tangible personal property that is located in this state and used in
21a Wisconsin business.
AB40-ASA1,694,2222 b. Stock or other ownership interest in a Wisconsin business.
AB40-ASA1,695,223 (b) For taxable years beginning after December 31, 2015, for a Wisconsin
24capital asset that is purchased after December 31, 2010, and held for at least 5 years,

1a claimant may subtract from federal adjusted gross income the lesser of one of the
2following amounts, to the extent that it is not subtracted under sub. (6) (b) 9. or 9m.:
AB40-ASA1,695,63 1. The amount of the claimant's federal net capital gain as reported on Schedule
4D of the claimant's federal income tax return for the taxable year to which the claim
5relates, but this subdivision applies only if, in that taxable year, the claimant has a
6qualifying gain.
AB40-ASA1,695,87 2. The amount of the claimant's qualifying gain in the year to which the claim
8relates.
AB40-ASA1, s. 1764 9Section 1764. 71.05 (26) of the statutes is created to read:
AB40-ASA1,695,1110 71.05 (26) Income tax deferral; long-term Wisconsin capital assets. (a) In
11this subsection:
AB40-ASA1,695,1412 1. "Claimant" means an individual; an individual partner or member of a
13partnership, limited liability company, or limited liability partnership; or an
14individual shareholder of a tax-option corporation.
AB40-ASA1,695,1515 2. "Financial institution" has the meaning given in s. 69.30 (1) (b).
AB40-ASA1,695,1816 3. "Long-term capital gain" means the gain realized from the sale of any capital
17asset held more than one year that is treated as a long-term gain under the Internal
18Revenue Code.
AB40-ASA1,695,2019 4. "Qualified Wisconsin business" means a business certified by the Wisconsin
20Economic Development Corporation under s. 238.146.
AB40-ASA1,695,2321 (b) For taxable years beginning after December 31, 2010, a claimant may
22subtract from federal adjusted gross income any amount of a long-term capital gain
23if the claimant does all of the following:
AB40-ASA1,695,2424 1. Deposits the gain into a segregated account in a financial institution.
AB40-ASA1,696,3
12. Within 180 days after the sale of the asset that generated the gain, invests
2all of the proceeds in the account described under subd. 1. in a qualified Wisconsin
3business.
AB40-ASA1,696,94 3. After making the investment as described under subd. 2., notifies the
5department, on a form prepared by the department, that the claimant will not
6declare on the claimant's income tax return the gain described under subd. 1. because
7the claimant has reinvested the capital gain as described under subd. 2. The form
8shall be sent to the department along with the claimant's income tax return for the
9year to which the claim relates.
AB40-ASA1,696,1210 (c) The basis of the investment described in par. (b) 2. shall be calculated by
11subtracting the gain described in par. (b) 1. from the amount of the investment
12described in par. (b) 2.
AB40-ASA1,696,1513 (d) If a claimant defers the payment of income taxes on a capital gain under this
14subsection, the claimant may not use the gain described under par. (b) 1. to net
15capital gains and losses, as described under sub. (10) (c).
AB40-ASA1,696,1716 (e) If a claimant claims the subtraction under this subsection, the claimant may
17not use the gain described under par. (b) 1. to claim a subtraction under sub. (24).
AB40-ASA1,696,1918 (f) If a claimant claims the subtraction under this subsection, the gain
19described under par. (b) 1. may not be used as a qualifying gain under sub. (25).
AB40-ASA1, s. 1765 20Section 1765. 71.07 (2dd) (b) of the statutes is amended to read:
AB40-ASA1,697,221 71.07 (2dd) (b) Except as provided in s. 73.03 (35), for any taxable year for
22which that person is certified under s. 560.765 (3), 2009 stats., and begins business
23operations in a zone under s. 560.71, 2009 stats., after July 29, 1995, or certified
24under s. 560.797 (4) (a), 2009 stats., for each zone for which the person is certified

1or entitled a person may credit against taxes otherwise due under this subchapter
2employment-related day care expenses, up to $1,200 for each qualifying individual.
AB40-ASA1, s. 1766 3Section 1766. 71.07 (2de) (a) (intro.) of the statutes is amended to read:
AB40-ASA1,697,124 71.07 (2de) (a) (intro.) Except as provided in s. 73.03 (35), for any taxable year
5for which a person is certified under s. 560.765 (3), 2009 stats., and begins business
6operations in a zone under s. 560.71, 2009 stats., after July 29, 1995, or certified
7under s. 560.797 (4) (a), 2009 stats., for each zone for which the person is certified
8or entitled the person may claim as a credit against taxes otherwise due under this
9subchapter an amount equal to 7.5% of the amount that the person expends to
10remove or contain environmental pollution, as defined in s. 299.01 (4), in the zone or
11to restore soil or groundwater that is affected by environmental pollution, as defined
12in s. 299.01 (4), in the zone if the person fulfills all of the following requirements:
AB40-ASA1, s. 1767 13Section 1767. 71.07 (2de) (a) 1. of the statutes is amended to read:
AB40-ASA1,697,1814 71.07 (2de) (a) 1. Begins the work, other than planning and investigating, for
15which the credit is claimed after the area that includes the site where the work is
16done is designated a development zone under s. 560.71, 2009 stats., or an enterprise
17development zone under s. 560.797, 2009 stats., and after the claimant is certified
18under s. 560.765 (3), 2009 stats., or certified under s. 560.797 (4) (a), 2009 stats.
AB40-ASA1, s. 1768 19Section 1768. 71.07 (2di) (a) (intro.) of the statutes is amended to read:
AB40-ASA1,698,220 71.07 (2di) (a) (intro.) Except as provided in pars. (dm) and (f) and s. 73.03 (35),
21for any taxable year for which the person is entitled under s. 560.795 (3), 2009 stats.,
22to claim tax benefits, any person may claim as a credit against taxes otherwise due
23under this chapter 2.5% of the purchase price of depreciable, tangible personal
24property, or 1.75% of the purchase price of depreciable, tangible personal property

1that is expensed under section 179 of the internal revenue code for purposes of the
2taxes under this chapter, except that:
AB40-ASA1, s. 1769 3Section 1769. 71.07 (2di) (a) 1. of the statutes is amended to read:
AB40-ASA1,698,94 71.07 (2di) (a) 1. The investment must be in property that is purchased after
5the person is entitled under s. 560.795 (3), 2009 stats., to claim tax benefits and that
6is used for at least 50% of its use in the conduct of the person's business operations
7at a location in a development zone under subch. VI of ch. 560, 2009 stats., or, if the
8property is mobile, the base of operations of the property for at least 50% of its use
9must be a location in a development zone.
AB40-ASA1, s. 1770 10Section 1770. 71.07 (2di) (b) 2. of the statutes is amended to read:
AB40-ASA1,698,2211 71.07 (2di) (b) 2. If the claimant is located on an Indian reservation, as defined
12in s. 560.86 (5), 2009 stats., and is an American Indian, as defined in s. 560.86 (1),
132009 stats., an Indian business, as defined in s. 560.86 (4), 2009 stats., or a tribal
14enterprise, and if the allowable amount of the credit under this subsection exceeds
15the taxes otherwise due under this chapter on or measured by the claimant's income,
16the amount of the credit not used as an offset against those taxes shall be certified
17to the department of administration for payment to the claimant by check, share
18draft or other draft. In this subdivision, "tribal enterprise" means a business that
19is at least 51% owned and controlled by the governing body of one or more Indian
20tribes, is actively managed by the governing body, or by the designee of the governing
21body, of one or more Indian tribes and is currently performing a useful business
22function.
AB40-ASA1, s. 1771 23Section 1771. 71.07 (2di) (b) 3. of the statutes is amended to read:
AB40-ASA1,699,1524 71.07 (2di) (b) 3. Partnerships, limited liability companies and tax-option
25corporations may not claim the credit under this subsection, but the eligibility for,

1and amount of, that credit shall be determined on the basis of their economic activity,
2not that of their shareholders, partners or members. The corporation, partnership
3or company shall compute the amount of the credit that may be claimed by each of
4its shareholders, partners or members and shall provide that information to each of
5its shareholders, partners or members. Partners, members of limited liability
6companies and shareholders of tax-option corporations may claim the credit based
7on the partnership's, company's or corporation's activities in proportion to their
8ownership interest and may offset it against the tax attributable to their income from
9the partnership's, company's or corporation's business operations in the
10development zone; except that partners, members, and shareholders in a
11development zone under s. 560.795 (1) (e), 2009 stats., may offset the credit against
12the amount of the tax attributable to their income from all of the partnership's,
13company's, or corporation's business operations; and against the tax attributable to
14their income from the partnership's, company's or corporation's directly related
15business operations.
AB40-ASA1, s. 1772 16Section 1772. 71.07 (2di) (d) 1. of the statutes is amended to read:
AB40-ASA1,699,1817 71.07 (2di) (d) 1. A copy of a verification from the department of commerce that
18the claimant may claim tax benefits under s. 560.795 (3), 2009 stats.
AB40-ASA1, s. 1773 19Section 1773. 71.07 (2di) (f) of the statutes is amended to read:
AB40-ASA1,700,220 71.07 (2di) (f) If a person who is entitled under s. 560.795 (3), 2009 stats., to
21claim tax benefits becomes ineligible for such tax benefits, that person may claim no
22credits under this subsection for the taxable year that includes the day on which the
23person becomes ineligible for tax benefits or succeeding taxable years and that
24person may carry over no unused credits from previous years to offset tax under this

1chapter for the taxable year that includes the day on which the person becomes
2ineligible for tax benefits or succeeding taxable years.
AB40-ASA1, s. 1774 3Section 1774. 71.07 (2di) (g) of the statutes is amended to read:
AB40-ASA1,700,84 71.07 (2di) (g) If a person who is entitled under s. 560.795 (3), 2009 stats., to
5claim tax benefits ceases business operations in the development zone during any of
6the taxable years that that zone exists, that person may not carry over to any taxable
7year following the year during which operations cease any unused credits from the
8taxable year during which operations cease or from previous taxable years.
AB40-ASA1, s. 1775 9Section 1775. 71.07 (2dj) (am) (intro.) of the statutes is amended to read:
AB40-ASA1,700,1310 71.07 (2dj) (am) (intro.) Except as provided under par. (f) or s. 73.03 (35), for
11any taxable year for which the person is certified under s. 560.765 (3), 2009 stats.,
12for tax benefits, any person may claim as a credit against taxes otherwise due under
13this chapter an amount calculated as follows:
AB40-ASA1, s. 1776 14Section 1776. 71.07 (2dj) (am) 4. a. of the statutes is amended to read:
AB40-ASA1,700,2115 71.07 (2dj) (am) 4. a. If certified under s. 560.765 (3), 2009 stats., for tax
16benefits before January 1, 1992, modify "qualified wages" as defined in section 51 (b)
17of the internal revenue code to exclude wages paid before the claimant is certified for
18tax benefits and to exclude wages that are paid to employees for work at any location
19that is not in a development zone under subch. VI of ch. 560, 2009 stats. For purposes
20of this subd. 4. a., mobile employees work at their base of operations and leased or
21rented employees work at the location where they perform services.
AB40-ASA1, s. 1777 22Section 1777. 71.07 (2dj) (am) 4. b. of the statutes is amended to read:
AB40-ASA1,701,423 71.07 (2dj) (am) 4. b. If certified under s. 560.765 (3), 2009 stats., for tax
24benefits after December 31, 1991, modify "qualified wages" as defined in section 51
25(b) of the internal revenue code to exclude wages paid before the claimant is certified

1for tax benefits and to exclude wages that are paid to employees for work at any
2location that is not in a development zone under subch. VI of ch. 560, 2009 stats. For
3purposes of this subd. 4. b., mobile employees and leased or rented employees work
4at their base of operations.
AB40-ASA1, s. 1778 5Section 1778. 71.07 (2dj) (am) 4c. of the statutes is amended to read:
AB40-ASA1,701,106 71.07 (2dj) (am) 4c. Modify the rule for ineligible individuals under section 51
7(i) (1) of the internal revenue code to allow credit for the wages of related individuals
8paid by an Indian business, as defined in s. 560.86 (4), 2009 stats., or a tribal
9enterprise, as defined in sub. (2di) (b) 2., if the Indian business or tribal enterprise
10is located in a development zone designated under s. 560.71 (3) (c) 2., 2009 stats.
AB40-ASA1, s. 1779 11Section 1779. 71.07 (2dj) (am) 4t. of the statutes is amended to read:
AB40-ASA1,701,1812 71.07 (2dj) (am) 4t. If certified under s. 560.765 (3), 2009 stats., for tax benefits
13before January 1, 1992, modify section 51 (i) (3) of the internal revenue code so that
14for leased or rented employees, except employees of a leasing agency certified for tax
15benefits who perform services directly for the agency in a development zone, the
16minimum employment periods apply to the time that they perform services in a
17development zone for a single lessee or renter, not to their employment by the leasing
18agency.
AB40-ASA1, s. 1780 19Section 1780. 71.07 (2dj) (e) 1. of the statutes is amended to read:
AB40-ASA1,701,2120 71.07 (2dj) (e) 1. A copy of the claimant's certification for tax benefits under s.
21560.765 (3), 2009 stats.
AB40-ASA1, s. 1781 22Section 1781. 71.07 (2dj) (e) 3. a. of the statutes is amended to read:
AB40-ASA1,702,223 71.07 (2dj) (e) 3. a. If certified under s. 560.765 (3), 2009 stats., for tax benefits
24before January 1, 1992, a statement from the department of commerce verifying the
25amount of qualifying wages and verifying that the employees were hired for work

1only in a development zone or are mobile employees whose base of operations is in
2a development zone.
AB40-ASA1, s. 1782 3Section 1782. 71.07 (2dj) (e) 3. b. of the statutes is amended to read:
AB40-ASA1,702,84 71.07 (2dj) (e) 3. b. If certified under s. 560.765 (3), 2009 stats., for tax benefits
5after December 31, 1991, a statement from the department of commerce verifying the
6amount of qualifying wages and verifying that the employees were hired for work
7only in a development zone or are mobile employees or leased or rented employees
8whose base of operations is in a development zone.
AB40-ASA1, s. 1783 9Section 1783. 71.07 (2dL) (a) of the statutes is amended to read:
AB40-ASA1,702,1510 71.07 (2dL) (a) Except as provided in pars. (ag), (ar), (bm) and (f) and s. 73.03
11(35), for any taxable year for which the person is certified under s. 560.765 (3), 2009
12stats.,
for tax benefits, any person may claim as a credit against taxes otherwise due
13under this subchapter an amount equal to 2.5% of the amount expended by that
14person to acquire, construct, rehabilitate or repair real property in a development
15zone under subch. VI of ch. 560, 2009 stats.
AB40-ASA1, s. 1784 16Section 1784. 71.07 (2dL) (ag) of the statutes is amended to read:
AB40-ASA1,703,217 71.07 (2dL) (ag) If the credit under par. (a) is claimed for an amount expended
18to construct, rehabilitate, remodel or repair property, the claimant must have begun
19the physical work of construction, rehabilitation, remodeling or repair, or any
20demolition or destruction in preparation for the physical work, after the place where
21the property is located was designated a development zone under s. 560.71, 2009
22stats.,
and the completed project must be placed in service after the claimant is
23certified for tax benefits under s. 560.765 (3), 2009 stats. In this paragraph, "physical
24work" does not include preliminary activities such as planning, designing, securing

1financing, researching, developing specifications or stabilizing the property to
2prevent deterioration.
AB40-ASA1, s. 1785 3Section 1785. 71.07 (2dL) (ar) of the statutes is amended to read:
AB40-ASA1,703,134 71.07 (2dL) (ar) If the credit under par. (a) is claimed for an amount expended
5to acquire property, the property must have been acquired by the claimant after the
6place where the property is located was designated a development zone under s.
7560.71, 2009 stats., and the completed project must be placed in service after the
8claimant is certified for tax benefits under s. 560.765 (3), 2009 stats., and the
9property must not have been previously owned by the claimant or a related person
10during the 2 years prior to the designation of the development zone under s. 560.71,
112009 stats
. No credit is allowed for an amount expended to acquire property until
12the property, either in its original state as acquired by the claimant or as
13subsequently constructed, rehabilitated, remodeled or repaired, is placed in service.
AB40-ASA1, s. 1786 14Section 1786. 71.07 (2dL) (bm) of the statutes is amended to read:
AB40-ASA1,703,2115 71.07 (2dL) (bm) In calculating the credit under par. (a) a claimant shall reduce
16the amount expended to acquire property by a percentage equal to the percentage of
17the area of the real property not used for the purposes for which the claimant is
18certified to claim tax benefits under s. 560.765 (3), 2009 stats., and shall reduce the
19amount expended for other purposes by the amount expended on the part of the
20property not used for the purposes for which the claimant is certified to claim tax
21benefits under s. 560.765 (3), 2009 stats.
AB40-ASA1, s. 1787 22Section 1787. 71.07 (2dL) (c) of the statutes is amended to read:
AB40-ASA1,704,523 71.07 (2dL) (c) If the claimant is located on an Indian reservation, as defined
24in s. 560.86 (5), 2009 stats., and is an American Indian, as defined in s. 560.86 (1),
252009 stats., an Indian business, as defined in s. 560.86 (4), 2009 stats., or a tribal

1enterprise, as defined in sub. (2di) (b) 2., and if the allowable amount of the credit
2under par. (a) exceeds the taxes otherwise due under this chapter on or measured by
3the claimant's income, the amount of the credit not used as an offset against those
4taxes shall be certified to the department of administration for payment to the
5claimant by check, share draft or other draft.
AB40-ASA1, s. 1788 6Section 1788. 71.07 (2dm) (a) 1. of the statutes is amended to read:
AB40-ASA1,704,107 71.07 (2dm) (a) 1. "Certified" means entitled under s. 238.395 (3) (a) 4. or s.
8560.795 (3) (a) 4., 2009 stats., to claim tax benefits or certified under s. 238.395 (5),
9238.398 (5), or 238.3995 (4) or s.
560.795 (5), 2009 stats., s. 560.798 (3), 2009 stats.,
10or s. 560.7995 (4), 2009 stats.
AB40-ASA1, s. 1789 11Section 1789. 71.07 (2dm) (a) 3. of the statutes is amended to read:
AB40-ASA1,704,1512 71.07 (2dm) (a) 3. "Development zone" means a development opportunity zone
13under s. 238.395 (1) (e) and (f) or 238.398 or s. 560.795 (1) (e) and (f), 2009 stats., or
14s. 560.798, 2009 stats., or an airport development zone under s. 238.3995 or s.
15560.7995, 2009 stats.
AB40-ASA1, s. 1790 16Section 1790. 71.07 (2dm) (a) 4. of the statutes is amended to read:
AB40-ASA1,704,2517 71.07 (2dm) (a) 4. "Previously owned property" means real property that the
18claimant or a related person owned during the 2 years prior to the department of
19commerce or the Wisconsin Economic Development Corporation designating the
20place where the property is located as a development zone and for which the claimant
21may not deduct a loss from the sale of the property to, or an exchange of the property
22with, the related person under section 267 of the Internal Revenue Code, except that
23section 267 (b) of the Internal Revenue Code is modified so that if the claimant owns
24any part of the property, rather than 50% ownership, the claimant is subject to
25section 267 (a) (1) of the Internal Revenue Code for purposes of this subsection.
AB40-ASA1, s. 1791
1Section 1791. 71.07 (2dm) (f) 1. of the statutes is amended to read:
AB40-ASA1,705,52 71.07 (2dm) (f) 1. A copy of a the verification from the department of commerce
3that the claimant may claim tax benefits under s. 238.395 (3) (a) 4. or s. 560.795 (3)
4(a) 4., 2009 stats., or is certified under s. 238.395 (5), 238.398 (3), or 238.3995 (4) or
5s.
560.795 (5), 2009 stats., s. 560.798 (3), 2009 stats., or s. 560.7995 (4), 2009 stats.
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