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:

SB1-SSA3,7,15 71.07 (5i) (c) 3. No credit may be claimed under this subsection based on an amount paid under par. (b) after December 31, 2013.

SB1-SSA3,25 Section 25. 71.28 (5i) (c) 3. of the statutes is created to read:

SB1-SSA3,7,18 71.28 (5i) (c) 3. No credit may be claimed under this subsection based on an amount paid under par. (b) after December 31, 2013.

SB1-SSA3,26 Section 26. 71.28 (9s) (d) 3. of the statutes, as created by 2013 Wisconsin Act 20, is amended to read:

SB1-SSA3,8,2 71.28 (9s) (d) 3. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013. Credits under this subsection for taxable years that begin before January 1, 2014, may be carried forward to taxable years that begin after December 31, 2013, except that a claimant who is first eligible to claim a credit under this subsection for taxable years beginning after December 31, 2012, and before January 1, 2014, may claim the credit in the following taxable year.

SB1-SSA3,27 Section 27. 71.47 (5i) (c) 3. of the statutes is created to read:

SB1-SSA3,8,5 71.47 (5i) (c) 3. No credit may be claimed under this subsection based on an amount paid under par. (b) after December 31, 2013.

SB1-SSA3,28 Section 28. 71.47 (9s) (d) 3. of the statutes, as created by 2013 Wisconsin Act 20, is amended to read:

SB1-SSA3,8,13 71.47 (9s) (d) 3. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013. Credits under this subsection for taxable years that begin before January 1, 2014, may be carried forward to taxable years that begin after December 31, 2013, except that a claimant who is first eligible to claim a credit under this subsection for taxable years beginning after December 31, 2012, and before January 1, 2014, may claim the credit in the following taxable year.

SB1-SSA3,29 Section 29. 71.52 (6) of the statutes is amended to read:

SB1-SSA3,9,25 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 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.

SB1-SSA3,30 Section 30. 71.64 (9) (b) 3. of the statutes is created to read:

SB1-SSA3,10,6 71.64 (9) (b) 3. The department may not adjust the withholding tables established in 2009 without the approval of the legislature.

SB1-SSA3,31 Section 31. 77.54 (61) (intro.), (a) and (b) of the statutes, as created by 2013 Wisconsin Act 20, are amended to read:

SB1-SSA3,10,16 77.54 (61) (intro.) The sales price from the sale of and the storage, use, or other consumption of the following by a person primarily engaged, as determined by the department, in commercial printing, not including screen printing or book printing, without publishing, except for gray goods; printing, or printing and binding, books or pamphlets without publishing the books or pamphlets; or performing prepress and postpress services in support of printing activities book printing, or support activities for printing described under 323111, 323117, and 323120 of the North American Industry Classification System:

SB1-SSA3,10,19 (a) Computers and servers that are used primarily to store copies of the product that are sent to a digital printer, a platemaking machine, or a printing press or used primarily in prepress or postpress activities.

SB1-SSA3,10,22 (b) Tangible personal property purchased from out-of-state sellers that are temporarily stored, remain idle, and not used in this state for not more than 180 days and that are then delivered and used solely outside of this state.

SB1-SSA3,32 Section 32. 77.54 (61) (c) of the statutes is created to read:

SB1-SSA3,10,24 77.54 (61) (c) In this subsection:

SB1-SSA3,11,2 1. "Postpress activities" include paper bronzing, die-cutting, edging, embossing, folding, gilding, gluing, and indexing.

SB1-SSA3,11,4 2. "Prepress activities" include making print-ready plates, typesetting, trade binding, and sample mounting.

SB1-SSA3,11,5 3. "Temporarily" means not more than 180 days.

SB1-SSA3,33 Section 33. 79.15 of the statutes is amended to read:

SB1-SSA3,11,11 79.15 Improvements credit. The total amount paid each year to municipalities from the appropriation account under s. 20.835 (3) (b) for the payments under s. 79.10 (5m) is $75,000,000 in 2009, $145,000,000 in 2010, and $150,000,000 in each year beginning in 2011 and ending in 2014, $650,000,000 in 2015, and $150,000,000 in 2016 and in each year thereafter.

SB1-SSA3,34 Section 34. 115.436 (2) (intro.) and (c) of the statutes are consolidated, renumbered 115.436 (2) and amended to read: