Amendment JR4 SSA3-SB1

LRBs0355/2

PG/MES/JK/FFK:all:jm

January 2014 Special Session

2013 - 2014 LEGISLATURE

SENATE SUBSTITUTE AMENDMENT 3, TO 2013 SENATE BILL 1

March 4, 2014 - Offered by Senators C. Larson, Risser, Wirch, Lassa, Hansen, Erpenbach, Harris and T. Cullen.

SB1-SSA3,2,5 An Act to repeal 115.436 (2) (a) and (b); to renumber 38.41 (1) and (2) and 71.05 (8) (b); to renumber and amend 38.41 (3) (a), 38.41 (3) (c), 38.41 (3) (d) and 38.41 (4); to consolidate, renumber and amend 115.436 (2) (intro.) and (c); to amend 20.292 (1) (eh), 20.292 (1) (f), 38.41 (title), 71.05 (6) (b) 47. am., 71.05 (6) (b) 47. b., 71.05 (6) (b) 47. c., 71.06 (1q) (a), 71.06 (2) (i) 1., 71.06 (2) (j) 1., 71.28 (9s) (d) 3., 71.47 (9s) (d) 3., 71.52 (6), 77.54 (61) (intro.), (a) and (b), 79.15 and 115.436 (3) (a); to repeal and recreate 38.41 (1m) (c) 1.; and to create 20.292 (1) (ej), 38.41 (1m) (title), 38.41 (2m), 71.05 (6) (b) 47. dm., 71.05 (8) (b) 2., 71.05 (8) (c), 71.07 (5i) (c) 3., 71.28 (5i) (c) 3., 71.47 (5i) (c) 3., 71.64 (9) (b) 3., 77.54 (61) (c) and 115.436 (3) (am) of the statutes; relating to: reducing the lowest individual income tax rate; providing high-demand profession grants to technical college districts; increasing the amount of the first-dollar credit; the carry-back of net operating losses; reducing the authority of the Department of Revenue to adjust the withholding tables; the sales and use tax exemption for commercial printing; the jobs tax credit; the electronic medical records credit; the relocated business credit; sparsity aid; funding for special education, achievement guarantee contracts, and high cost transportation aid; and making appropriations.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB1-SSA3,1 Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

SB1-SSA3,2 Section 2. 20.292 (1) (eh) of the statutes is amended to read:

SB1-SSA3,2,10 20.292 (1) (eh) Training program Business skills training grants. Biennially, the amounts in the schedule for grants under s. 38.41 (1m).

SB1-SSA3,3 Section 3. 20.292 (1) (ej) of the statutes is created to read:

SB1-SSA3,2,13 20.292 (1) (ej) High-demand profession grants. As a continuing appropriation, the amounts in the schedule for making grants under s. 38.41 (2m).

SB1-SSA3,4 Section 4. 20.292 (1) (f) of the statutes, as created by 2013 Wisconsin Act 20, is amended to read:

SB1-SSA3,3,2 20.292 (1) (f) Grants to district boards. As a continuing appropriation, the amounts in the schedule for aids and grants to technical college districts under ss. 38.04 (13) (a), (20), (28), and (32) (a), 38.26, 38.27, 38.272, 38.28 (4), 38.29, 38.32, 38.33, 38.38, 38.40 (4m), and 38.41 (1m).

SB1-SSA3,5 Section 5. 38.41 (title) of the statutes is amended to read:

SB1-SSA3,3,4 38.41 (title) Training program grants.

SB1-SSA3,6 Section 6. 38.41 (1) and (2) of the statutes are renumbered 38.41 (1m) (a) and (b).

SB1-SSA3,7 Section 7. 38.41 (1m) (title) of the statutes is created to read:

SB1-SSA3,3,8 38.41 (1m) (title) Business skills training.

SB1-SSA3,8 Section 8. 38.41 (1m) (c) 1. of the statutes, as affected by 2013 Wisconsin Acts 20 and .... (this act), is repealed and recreated to read:

SB1-SSA3,3,12 38.41 (1m) (c) 1. Amounts awarded under this subsection shall be paid from the appropriation under s. 20.292 (1) (f).

SB1-SSA3,9 Section 9. 38.41 (2m) of the statutes is created to read:

SB1-SSA3,3,18 38.41 (2m) High-demand professions. From the appropriation under s. 20.292 (1) (ej), the board shall award grants to district boards for training for high-demand professions, as determined by the board. In determining what constitute high-demand professions, the board shall consider the determinations regarding high-demand fields under s. 38.28 (2) (be) 1. b.

SB1-SSA3,10 Section 10. 38.41 (3) (a) of the statutes is renumbered 38.41 (1m) (c) 1. and amended to read:

SB1-SSA3,3,22 38.41 (1m) (c) 1. The board shall award grants under this section subsection from the appropriation under s. 20.292 (1) (eh).

SB1-SSA3,11 Section 11. 38.41 (3) (c) of the statutes is renumbered 38.41 (1m) (c) 2. and amended to read:

SB1-SSA3,4,2 38.41 (1m) (c) 2. The board may award no more than $500,000 in any fiscal year under sub. (2) par. (b).

SB1-SSA3,12 Section 12. 38.41 (3) (d) of the statutes is renumbered 38.41 (1m) (c) 3. and amended to read:

SB1-SSA3,4,8 38.41 (1m) (c) 3. Beginning in the 2008-09 school year, the board shall award at least $1,000,000 annually under sub. (1) par. (a) for training in advanced manufacturing skills, and beginning in the 2010-11 school year, the board shall award at least $2,000,000 annually under sub. (1) par. (a) for such training.

SB1-SSA3,13 Section 13. 38.41 (4) of the statutes is renumbered 38.41 (1m) (d) and amended to read:

SB1-SSA3,4,12 38.41 (1m) (d) The board shall promulgate rules to implement and administer this section subsection.

SB1-SSA3,14 Section 14. 71.05 (6) (b) 47. am. of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

SB1-SSA3,4,23 71.05 (6) (b) 47. am. For taxable years beginning after December 31, 2010, and before January 1, 2014, for 2 consecutive taxable years beginning with the taxable year in which the claimant's business locates to this state from another state or another country and begins doing business in this state, as defined in s. 71.22 (1r), and subject to the limitations provided under subd. 47. d., dm., and e., the profit or loss from a trade or business as reported on federal income tax return schedules C and F or their equivalents, plus ordinary gain or loss on the sale of business assets, as determined under s. 71.01 (6), but not less than zero, multiplied by the apportionment fraction determined in s. 71.04 (4) and subject to s. 71.04 (7).

SB1-SSA3,15 Section 15. 71.05 (6) (b) 47. b. of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

SB1-SSA3,5,21 71.05 (6) (b) 47. b. With respect to partners and members of limited liability companies, for taxable years beginning after December 31, 2010, and before January 1, 2014, for 2 consecutive taxable years beginning with the taxable year in which the partnership's or limited liability company's business locates to this state from another state or another country and begins doing business in this state, as defined in s. 71.22 (1r), and subject to the limitations provided under subd. 47. d., dm., and e., the partner's or member's distributive share of taxable income as calculated under section 703 of the Internal Revenue Code; plus the items of income and gain under section 702 of the Internal Revenue Code, including taxable state and municipal bond interest and excluding nontaxable interest income or dividend income from federal government obligations; minus the items of loss and deduction under section 756702 702 of the Internal Revenue Code, except items that are not deductible under s. 71.21; plus guaranteed payments to partners under section 707 (c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), and (8r); and plus or minus, as appropriate, transitional adjustments, depreciation differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19), multiplied by the apportionment fraction determined in s. 71.04 (4) and subject to s. 71.04 (7) or by separate accounting. No amounts subtracted under this subd. 47. b. may be included in the modification under par. (b) 9. or 9m.

SB1-SSA3,16 Section 16. 71.05 (6) (b) 47. c. of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

SB1-SSA3,6,9 71.05 (6) (b) 47. c. With respect to shareholders of a tax-option corporation, for taxable years beginning after December 31, 2010, and before January 1, 2014, for 2 consecutive taxable years beginning with the taxable year in which the tax-option corporation's business locates to this state from another state or another country and begins doing business in this state, as defined in s. 71.22 (1r), and subject to the limitations provided under subd. 47. d., dm., and e., the shareholder's distributive share of the entity's net income or loss as determined under this chapter, including interest income from federal, state, and municipal government obligations, multiplied by the apportionment fraction determined in s. 71.25 (6m) and subject to s. 71.25 (9) or by separate accounting. No amounts subtracted under this subdivision may be included in the modification under par. (b) 9. or 9m.

SB1-SSA3,17 Section 17. 71.05 (6) (b) 47. dm. of the statutes is created to read:

SB1-SSA3,6,15 71.05 (6) (b) 47. dm. No person may claim a deduction under this subdivision for taxable years beginning after December 31, 2013, except that a claimant who is first eligible to claim a deduction under this subdivision for a taxable year beginning after December 31, 2012, and before January 1, 2014, may claim the deduction the following taxable year.

SB1-SSA3,18 Section 18. 71.05 (8) (b) of the statutes, as affected by 2013 Wisconsin Act 20, is renumbered 71.05 (8) (b) 1.

SB1-SSA3,19 Section 19. 71.05 (8) (b) 2. of the statutes is created to read:

SB1-SSA3,6,22 71.05 (8) (b) 2. The taxpayer need not make the offset against Wisconsin modified taxable income of the 2 years preceding the loss, as provided under subd. 1., if the taxpayer chooses not to carry back the net operating loss to the 2 years preceding the loss.

SB1-SSA3,20 Section 20. 71.05 (8) (c) of the statutes is created to read:

SB1-SSA3,6,25 71.05 (8) (c) The department shall not pay interest on any overpayment that results from the carry-back of a net operating loss.

SB1-SSA3,21 Section 21. 71.06 (1q) (a) of the statutes, as created by 2013 Wisconsin Act 20, is amended to read:

SB1-SSA3,7,4 71.06 (1q) (a) On all taxable income from $0 to $7,500, 4.40 percent, except that for taxable years beginning after December 31, 2013, 4.0 percent.

SB1-SSA3,22 Section 22. 71.06 (2) (i) 1. of the statutes, as created by 2013 Wisconsin Act 20, is amended to read:

SB1-SSA3,7,8 71.06 (2) (i) 1. On all taxable income from $0 to $10,000, 4.40 percent, except that for taxable years beginning after December 31, 2013, 4.0 percent.

SB1-SSA3,23 Section 23. 71.06 (2) (j) 1. of the statutes, as created by 2013 Wisconsin Act 20, is amended to read:

SB1-SSA3,7,12 71.06 (2) (j) 1. On all taxable income from $0 to $5,000, 4.40 percent, except that for taxable years beginning after December 31, 2013, 4.0 percent.

SB1-SSA3,24 Section 24. 71.07 (5i) (c) 3. of the statutes is created to read: