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 1An Act to repeal 115.436 (2) (a) and (b); to renumber 38.41 (1) and (2) and 71.05
2(8) (b); to renumber and amend 38.41 (3) (a), 38.41 (3) (c), 38.41 (3) (d) and
338.41 (4); to consolidate, renumber and amend 115.436 (2) (intro.) and (c);
4to amend 20.292 (1) (eh), 20.292 (1) (f), 38.41 (title), 71.05 (6) (b) 47. am., 71.05
5(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
6(9s) (d) 3., 71.47 (9s) (d) 3., 71.52 (6), 77.54 (61) (intro.), (a) and (b), 79.15 and
7115.436 (3) (a); to repeal and recreate 38.41 (1m) (c) 1.; and to create 20.292
8(1) (ej), 38.41 (1m) (title), 38.41 (2m), 71.05 (6) (b) 47. dm., 71.05 (8) (b) 2., 71.05
9(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)
10(c) and 115.436 (3) (am) of the statutes; relating to: reducing the lowest
11individual income tax rate; providing high-demand profession grants to
12technical college districts; increasing the amount of the first-dollar credit; the
13carry-back of net operating losses; reducing the authority of the Department

1of Revenue to adjust the withholding tables; the sales and use tax exemption
2for commercial printing; the jobs tax credit; the electronic medical records
3credit; the relocated business credit; sparsity aid; funding for special education,
4achievement guarantee contracts, and high cost transportation aid; and
5making appropriations.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB1-SSA3,1 6Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
7the following amounts for the purposes indicated: - See PDF for table PDF
SB1-SSA3,2 8Section 2. 20.292 (1) (eh) of the statutes is amended to read:
SB1-SSA3,2,109 20.292 (1) (eh) Training program Business skills training grants. Biennially,
10the amounts in the schedule for grants under s. 38.41 (1m).
SB1-SSA3,3 11Section 3. 20.292 (1) (ej) of the statutes is created to read:
SB1-SSA3,2,1312 20.292 (1) (ej) High-demand profession grants. As a continuing appropriation,
13the amounts in the schedule for making grants under s. 38.41 (2m).
SB1-SSA3,4 14Section 4. 20.292 (1) (f) of the statutes, as created by 2013 Wisconsin Act 20,
15is amended to read:
SB1-SSA3,3,216 20.292 (1) (f) Grants to district boards. As a continuing appropriation, the
17amounts in the schedule for aids and grants to technical college districts under ss.

138.04 (13) (a), (20), (28), and (32) (a), 38.26, 38.27, 38.272, 38.28 (4), 38.29, 38.32,
238.33, 38.38, 38.40 (4m), and 38.41 (1m).
SB1-SSA3,5 3Section 5. 38.41 (title) of the statutes is amended to read:
SB1-SSA3,3,4 438.41 (title) Training program grants.
SB1-SSA3,6 5Section 6. 38.41 (1) and (2) of the statutes are renumbered 38.41 (1m) (a) and
6(b).
SB1-SSA3,7 7Section 7. 38.41 (1m) (title) of the statutes is created to read:
SB1-SSA3,3,88 38.41 (1m) (title) Business skills training.
SB1-SSA3,8 9Section 8. 38.41 (1m) (c) 1. of the statutes, as affected by 2013 Wisconsin Acts
1020
and .... (this act), is repealed and recreated to read:
SB1-SSA3,3,1211 38.41 (1m) (c) 1. Amounts awarded under this subsection shall be paid from
12the appropriation under s. 20.292 (1) (f).
SB1-SSA3,9 13Section 9. 38.41 (2m) of the statutes is created to read:
SB1-SSA3,3,1814 38.41 (2m) High-demand professions. From the appropriation under s. 20.292
15(1) (ej), the board shall award grants to district boards for training for high-demand
16professions, as determined by the board. In determining what constitute
17high-demand professions, the board shall consider the determinations regarding
18high-demand fields under s. 38.28 (2) (be) 1. b.
SB1-SSA3,10 19Section 10. 38.41 (3) (a) of the statutes is renumbered 38.41 (1m) (c) 1. and
20amended to read:
SB1-SSA3,3,2221 38.41 (1m) (c) 1. The board shall award grants under this section subsection
22from the appropriation under s. 20.292 (1) (eh).
SB1-SSA3,11 23Section 11. 38.41 (3) (c) of the statutes is renumbered 38.41 (1m) (c) 2. and
24amended to read:
SB1-SSA3,4,2
138.41 (1m) (c) 2. The board may award no more than $500,000 in any fiscal year
2under sub. (2) par. (b).
SB1-SSA3,12 3Section 12. 38.41 (3) (d) of the statutes is renumbered 38.41 (1m) (c) 3. and
4amended to read:
SB1-SSA3,4,85 38.41 (1m) (c) 3. Beginning in the 2008-09 school year, the board shall award
6at least $1,000,000 annually under sub. (1) par. (a) for training in advanced
7manufacturing skills, and beginning in the 2010-11 school year, the board shall
8award at least $2,000,000 annually under sub. (1) par. (a) for such training.
SB1-SSA3,13 9Section 13. 38.41 (4) of the statutes is renumbered 38.41 (1m) (d) and amended
10to read:
SB1-SSA3,4,1211 38.41 (1m) (d) The board shall promulgate rules to implement and administer
12this section subsection.
SB1-SSA3,14 13Section 14. 71.05 (6) (b) 47. am. of the statutes, as affected by 2013 Wisconsin
14Act 20
, is amended to read:
SB1-SSA3,4,2315 71.05 (6) (b) 47. am. For taxable years beginning after December 31, 2010, and
16before January 1, 2014, for 2 consecutive taxable years beginning with the taxable
17year in which the claimant's business locates to this state from another state or
18another country and begins doing business in this state, as defined in s. 71.22 (1r),
19and subject to the limitations provided under subd. 47. d., dm., and e., the profit or
20loss from a trade or business as reported on federal income tax return schedules C
21and F or their equivalents, plus ordinary gain or loss on the sale of business assets,
22as determined under s. 71.01 (6), but not less than zero, multiplied by the
23apportionment fraction determined in s. 71.04 (4) and subject to s. 71.04 (7).
SB1-SSA3,15 24Section 15. 71.05 (6) (b) 47. b. of the statutes, as affected by 2013 Wisconsin
25Act 20
, is amended to read:
SB1-SSA3,5,21
171.05 (6) (b) 47. b. With respect to partners and members of limited liability
2companies, for taxable years beginning after December 31, 2010, and before January
31, 2014, for 2 consecutive taxable years beginning with the taxable year in which the
4partnership's or limited liability company's business locates to this state from
5another state or another country and begins doing business in this state, as defined
6in s. 71.22 (1r), and subject to the limitations provided under subd. 47. d., dm., and
7e., the partner's or member's distributive share of taxable income as calculated under
8section 703 of the Internal Revenue Code; plus the items of income and gain under
9section 702 of the Internal Revenue Code, including taxable state and municipal
10bond interest and excluding nontaxable interest income or dividend income from
11federal government obligations; minus the items of loss and deduction under section
12756702 702 of the Internal Revenue Code, except items that are not deductible under
13s. 71.21; plus guaranteed payments to partners under section 707 (c) of the Internal
14Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL),
15(2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t),
16(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), and (8r); and plus or minus, as
17appropriate, transitional adjustments, depreciation differences, and basis
18differences under s. 71.05 (13), (15), (16), (17), and (19), multiplied by the
19apportionment fraction determined in s. 71.04 (4) and subject to s. 71.04 (7) or by
20separate accounting. No amounts subtracted under this subd. 47. b. may be included
21in the modification under par. (b) 9. or 9m.
SB1-SSA3,16 22Section 16. 71.05 (6) (b) 47. c. of the statutes, as affected by 2013 Wisconsin
23Act 20
, is amended to read:
SB1-SSA3,6,924 71.05 (6) (b) 47. c. With respect to shareholders of a tax-option corporation, for
25taxable years beginning after December 31, 2010, and before January 1, 2014, for 2

1consecutive taxable years beginning with the taxable year in which the tax-option
2corporation's business locates to this state from another state or another country and
3begins doing business in this state, as defined in s. 71.22 (1r), and subject to the
4limitations provided under subd. 47. d., dm., and e., the shareholder's distributive
5share of the entity's net income or loss as determined under this chapter, including
6interest income from federal, state, and municipal government obligations,
7multiplied by the apportionment fraction determined in s. 71.25 (6m) and subject to
8s. 71.25 (9) or by separate accounting. No amounts subtracted under this subdivision
9may be included in the modification under par. (b) 9. or 9m.
SB1-SSA3,17 10Section 17. 71.05 (6) (b) 47. dm. of the statutes is created to read:
SB1-SSA3,6,1511 71.05 (6) (b) 47. dm. No person may claim a deduction under this subdivision
12for taxable years beginning after December 31, 2013, except that a claimant who is
13first eligible to claim a deduction under this subdivision for a taxable year beginning
14after December 31, 2012, and before January 1, 2014, may claim the deduction the
15following taxable year.
SB1-SSA3,18 16Section 18. 71.05 (8) (b) of the statutes, as affected by 2013 Wisconsin Act 20,
17is renumbered 71.05 (8) (b) 1.
SB1-SSA3,19 18Section 19. 71.05 (8) (b) 2. of the statutes is created to read:
SB1-SSA3,6,2219 71.05 (8) (b) 2. The taxpayer need not make the offset against Wisconsin
20modified taxable income of the 2 years preceding the loss, as provided under subd.
211., if the taxpayer chooses not to carry back the net operating loss to the 2 years
22preceding the loss.
SB1-SSA3,20 23Section 20. 71.05 (8) (c) of the statutes is created to read:
SB1-SSA3,6,2524 71.05 (8) (c) The department shall not pay interest on any overpayment that
25results from the carry-back of a net operating loss.
SB1-SSA3,21
1Section 21. 71.06 (1q) (a) of the statutes, as created by 2013 Wisconsin Act 20,
2is amended to read:
SB1-SSA3,7,43 71.06 (1q) (a) On all taxable income from $0 to $7,500, 4.40 percent, except that
4for taxable years beginning after December 31, 2013, 4.0 percent
.
SB1-SSA3,22 5Section 22. 71.06 (2) (i) 1. of the statutes, as created by 2013 Wisconsin Act
620
, is amended to read:
SB1-SSA3,7,87 71.06 (2) (i) 1. On all taxable income from $0 to $10,000, 4.40 percent, except
8that for taxable years beginning after December 31, 2013, 4.0 percent
.
SB1-SSA3,23 9Section 23. 71.06 (2) (j) 1. of the statutes, as created by 2013 Wisconsin Act
1020
, is amended to read:
SB1-SSA3,7,1211 71.06 (2) (j) 1. On all taxable income from $0 to $5,000, 4.40 percent, except that
12for taxable years beginning after December 31, 2013, 4.0 percent
.
SB1-SSA3,24 13Section 24. 71.07 (5i) (c) 3. of the statutes is created to read:
SB1-SSA3,7,1514 71.07 (5i) (c) 3. No credit may be claimed under this subsection based on an
15amount paid under par. (b) after December 31, 2013.
SB1-SSA3,25 16Section 25. 71.28 (5i) (c) 3. of the statutes is created to read:
SB1-SSA3,7,1817 71.28 (5i) (c) 3. No credit may be claimed under this subsection based on an
18amount paid under par. (b) after December 31, 2013.
SB1-SSA3,26 19Section 26. 71.28 (9s) (d) 3. of the statutes, as created by 2013 Wisconsin Act
2020
, is amended to read:
SB1-SSA3,8,221 71.28 (9s) (d) 3. No credit may be claimed under this subsection for taxable
22years beginning after December 31, 2013. Credits under this subsection for taxable
23years that begin before January 1, 2014, may be carried forward to taxable years that
24begin after December 31, 2013
, except that a claimant who is first eligible to claim

1a credit under this subsection for taxable years beginning after December 31, 2012,
2and before January 1, 2014, may claim the credit in the following taxable year
.
SB1-SSA3,27 3Section 27. 71.47 (5i) (c) 3. of the statutes is created to read:
SB1-SSA3,8,54 71.47 (5i) (c) 3. No credit may be claimed under this subsection based on an
5amount paid under par. (b) after December 31, 2013.
SB1-SSA3,28 6Section 28. 71.47 (9s) (d) 3. of the statutes, as created by 2013 Wisconsin Act
720
, is amended to read:
SB1-SSA3,8,138 71.47 (9s) (d) 3. No credit may be claimed under this subsection for taxable
9years beginning after December 31, 2013. Credits under this subsection for taxable
10years that begin before January 1, 2014, may be carried forward to taxable years that
11begin after December 31, 2013
, except that a claimant who is first eligible to claim
12a credit under this subsection for taxable years beginning after December 31, 2012,
13and before January 1, 2014, may claim the credit in the following taxable year
.
SB1-SSA3,29 14Section 29. 71.52 (6) of the statutes is amended to read:
SB1-SSA3,9,2515 71.52 (6) "Income" means the sum of Wisconsin adjusted gross income and the
16following amounts, to the extent not included in Wisconsin adjusted gross income:
17maintenance payments (except foster care maintenance and supplementary
18payments excludable under section 131 of the internal revenue code), support money,
19cash public assistance (not including credit granted under this subchapter and
20amounts under s. 46.27), cash benefits paid by counties under s. 59.53 (21), the gross
21amount of any pension or annuity (including railroad retirement benefits, all
22payments received under the federal social security act and veterans disability
23pensions), nontaxable interest received from the federal government or any of its
24instrumentalities, nontaxable interest received on state or municipal bonds,
25worker's compensation, unemployment insurance, the gross amount of "loss of time"

1insurance, compensation and other cash benefits received from the United States for
2past or present service in the armed forces, scholarship and fellowship gifts or
3income, capital gains, gain on the sale of a personal residence excluded under section
4121 of the internal revenue code, dividends, income of a nonresident or part-year
5resident who is married to a full-year resident, housing allowances provided to
6members of the clergy, the amount by which a resident manager's rent is reduced,
7nontaxable income of an American Indian, nontaxable income from sources outside
8this state and nontaxable deferred compensation. Intangible drilling costs,
9depletion allowances and depreciation, including first-year depreciation allowances
10under section 179 of the internal revenue code, amortization, contributions to
11individual retirement accounts under section 219 of the internal revenue code,
12contributions to Keogh plans, net operating loss carry-backs and carry-forwards
13and capital loss carry-forwards deducted in determining Wisconsin adjusted gross
14income shall be added to "income". "Income" does not include gifts from natural
15persons, cash reimbursement payments made under title XX of the federal social
16security act, surplus food or other relief in kind supplied by a governmental agency,
17the gain on the sale of a personal residence deferred under section 1034 of the
18internal revenue code or nonrecognized gain from involuntary conversions under
19section 1033 of the internal revenue code. Amounts not included in adjusted gross
20income but added to "income" under this subsection in a previous year and repaid
21may be subtracted from income for the year during which they are repaid.
22Scholarship and fellowship gifts or income that are included in Wisconsin adjusted
23gross income and that were added to household income for purposes of determining
24the credit under this subchapter in a previous year may be subtracted from income
25for the current year in determining the credit under this subchapter. A marital

1property agreement or unilateral statement under ch. 766 has no effect in computing
2"income" for a person whose homestead is not the same as the homestead of that
3person's spouse.
SB1-SSA3,30 4Section 30. 71.64 (9) (b) 3. of the statutes is created to read:
SB1-SSA3,10,65 71.64 (9) (b) 3. The department may not adjust the withholding tables
6established in 2009 without the approval of the legislature.
SB1-SSA3,31 7Section 31. 77.54 (61) (intro.), (a) and (b) of the statutes, as created by 2013
8Wisconsin Act 20
, are amended to read:
SB1-SSA3,10,169 77.54 (61) (intro.) The sales price from the sale of and the storage, use, or other
10consumption of the following by a person primarily engaged, as determined by the
11department,
in commercial printing, not including screen printing or book printing,
12without publishing, except for gray goods; printing, or printing and binding, books
13or pamphlets without publishing the books or pamphlets; or performing prepress
14and postpress services in support of printing activities
book printing, or support
15activities for printing described under 323111, 323117, and 323120 of the North
16American Industry Classification System
:
SB1-SSA3,10,1917 (a) Computers and servers that are used primarily to store copies of the product
18that are sent to a digital printer, a platemaking machine, or a printing press or used
19primarily in prepress or postpress activities
.
SB1-SSA3,10,2220 (b) Tangible personal property purchased from out-of-state sellers that are
21temporarily stored, remain idle, and not used in this state for not more than 180 days
22and that are then delivered and used solely outside of this state.
SB1-SSA3,32 23Section 32. 77.54 (61) (c) of the statutes is created to read:
SB1-SSA3,10,2424 77.54 (61) (c) In this subsection:
SB1-SSA3,11,2
11. "Postpress activities" include paper bronzing, die-cutting, edging,
2embossing, folding, gilding, gluing, and indexing.
SB1-SSA3,11,43 2. "Prepress activities" include making print-ready plates, typesetting, trade
4binding, and sample mounting.
SB1-SSA3,11,55 3. "Temporarily" means not more than 180 days.
SB1-SSA3,33 6Section 33. 79.15 of the statutes is amended to read:
SB1-SSA3,11,11 779.15 Improvements credit. The total amount paid each year to
8municipalities from the appropriation account under s. 20.835 (3) (b) for the
9payments under s. 79.10 (5m) is $75,000,000 in 2009, $145,000,000 in 2010, and
10$150,000,000 in each year beginning in 2011 and ending in 2014, $650,000,000 in
112015, and $150,000,000 in 2016
and in each year thereafter.
SB1-SSA3,34 12Section 34. 115.436 (2) (intro.) and (c) of the statutes are consolidated,
13renumbered 115.436 (2) and amended to read:
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