AB40-ASA1,1304h 17Section 1304h. 71.05 (8) (a) of the statutes is amended to read:
AB40-ASA1,709,2418 71.05 (8) (a) The carry back of losses to reduce income of prior years shall not
19may be permitted for 2 taxable years. There shall be added any amount deducted
20as a federal net operating loss carry-back or carry-over and there shall be subtracted
21for the first taxable year for which the subtraction may be made any Wisconsin net
22operating loss carry-back or carry-forward allowable under par. (b) in an amount not
23in excess of the Wisconsin taxable income computed before the deduction of the
24Wisconsin net operating loss carry-back or carry-forward.
AB40-ASA1,1304he 25Section 1304he. 71.05 (8) (b) of the statutes is amended to read:
AB40-ASA1,710,15
171.05 (8) (b) A Wisconsin net operating loss may be carried back against
2Wisconsin taxable income of the previous 2 years and then
carried forward against
3Wisconsin taxable incomes of the next 15 20 taxable years, if the taxpayer was
4subject to taxation under this chapter in the taxable year in which the loss was
5sustained, to the extent not offset against other income of the year of loss and to the
6extent not offset against Wisconsin modified taxable income of the 2 years preceding
7the loss and
of any year between the loss year and the taxable year for which the loss
8carry-forward is claimed. In this paragraph, "Wisconsin modified taxable income"
9means Wisconsin taxable income with the following exceptions: a net operating loss
10deduction or offset for the loss year or any taxable year before or thereafter is not
11allowed, the deduction for long-term capital gains under subs. (6) (b) 9. and 9m. and
12(25) is not allowed, the amount deductible for losses from sales or exchanges of
13capital assets may not exceed the amount includable in income for gains from sales
14or exchanges of capital assets and "Wisconsin modified taxable income" may not be
15less than zero.
AB40-ASA1,1304i 16Section 1304i. 71.05 (16) of the statutes is amended to read:
AB40-ASA1,710,2117 71.05 (16) Depreciation continuation. Property For taxable years beginning
18before January 1, 2014, property
that, under s. 71.02 (2) (d) 12., 1985 stats., is
19required to be depreciated for taxable year 1986 under the internal revenue code as
20amended to December 31, 1980, shall continue to be depreciated under the internal
21revenue code as amended to December 31, 1980.
AB40-ASA1,1304j 22Section 1304j. 71.05 (17) of the statutes is amended to read:
AB40-ASA1,711,523 71.05 (17) Difference in basis. With For taxable years beginning before
24January 1, 2014, with
respect to depreciable property that, under s. 71.02 (2) (d) 12.,
251985 stats., is required to be depreciated for taxable year 1986 under the internal

1revenue code as amended to December 31, 1980, and that was disposed of in taxable
2year 1986 and thereafter, any difference between the adjusted basis for federal
3income tax purposes and the adjusted basis under this chapter shall be taken into
4account in determining net income or loss in the year or years that the gain or loss
5is reportable under this chapter.
AB40-ASA1,1304m 6Section 1304m. 71.05 (18) of the statutes is amended to read:
AB40-ASA1,711,167 71.05 (18) Carry-over basis precluded. With For taxable years beginning
8before January 1, 2014, with
respect to property that, under s. 71.02 (2) (d) 12., 1985
9stats., is required to be depreciated for taxable year 1986 under the internal revenue
10code as amended to December 31, 1980, and that was acquired in a transaction
11occurring in taxable year 1986 and thereafter in which the adjusted basis of the
12property in the hands of the transferee is the same as the adjusted basis of the
13property in the hands of the transferor, the Wisconsin adjusted basis of that property
14on the date of transfer is the adjusted basis allowable under the depreciation
15provisions of the internal revenue code as defined for Wisconsin purposes for the
16property in the hands of the transferor.
AB40-ASA1,1305 17Section 1305. 71.05 (24) (a) 4. of the statutes is amended to read:
AB40-ASA1,711,1918 71.05 (24) (a) 4. "Qualified new business venture" means a business certified
19under s. 238.20, 2011 stats., or s. 560.2085, 2009 stats.
AB40-ASA1,1306 20Section 1306. 71.05 (24) (b) (intro.) of the statutes is amended to read:
AB40-ASA1,711,2421 71.05 (24) (b) (intro.) For taxable years beginning after December 31, 2010, and
22before January 1, 2014,
a claimant may subtract from federal adjusted gross income
23any amount, up to $10,000,000, of a long-term capital gain if the claimant does all
24of the following:
AB40-ASA1,1307 25Section 1307. 71.05 (25) (title) of the statutes is amended to read:
AB40-ASA1,712,2
171.05 (25) (title) Capital gains exclusion; Wisconsin-source assets qualified
2Wisconsin business
.
AB40-ASA1,1308 3Section 1308. 71.05 (25) (a) 2. of the statutes is amended to read:
AB40-ASA1,712,124 71.05 (25) (a) 2. "Qualifying gain" means the a long-term capital gain under
5the Internal Revenue Code
realized from the sale of any asset which is a Wisconsin
6capital asset in the year it is purchased by the claimant and for at least 2 of the
7subsequent 4 years; that is purchased
an investment made after December 31, 2010;
8that is
, and held for at least 5 uninterrupted years ; and that is treated as a long-term
9gain under the Internal Revenue Code
in a business that for the year of investment
10and at least 2 of the 4 subsequent years was a qualified Wisconsin business
; except
11that a qualifying gain may not include any amount for which the claimant claimed
12a subtraction under sub. (24) (b) or any gain described under sub. (26) (b) 1.
AB40-ASA1,1309 13Section 1309. 71.05 (25) (a) 3. of the statutes is renumbered 71.05 (25) (a) 1s.
14and amended to read:
AB40-ASA1,712,1715 71.05 (25) (a) 1s. "Qualified Wisconsin business" means a business certified by
16the Wisconsin Economic Development Corporation under s. 238.145, 2011 stats., or
17registered with the department under s. 73.03 (69)
.
AB40-ASA1,1310 18Section 1310. 71.05 (25) (a) 4. of the statutes is repealed.
AB40-ASA1,1311 19Section 1311. 71.05 (25) (b) (intro.) of the statutes is renumbered 71.05 (25)
20(b) and amended to read:
AB40-ASA1,713,221 71.05 (25) (b) For taxable years beginning after December 31, 2015, for a
22Wisconsin capital asset that is purchased
an investment in a qualified Wisconsin
23business made
after December 31, 2010, and held for at least 5 uninterrupted years,
24a claimant may subtract from federal adjusted gross income the lesser of one of the

1following amounts
amount of the claimant's qualifying gain in the year to which the
2claim relates
, to the extent that it is not subtracted under sub. (6) (b) 9. or 9m.:
AB40-ASA1,1312 3Section 1312. 71.05 (25) (b) 1. of the statutes is repealed.
AB40-ASA1,1313 4Section 1313. 71.05 (25) (b) 2. of the statutes is repealed.
AB40-ASA1,1314 5Section 1314. 71.05 (26) (title) of the statutes is amended to read:
AB40-ASA1,713,76 71.05 (26) (title) Income tax deferral; long-term Wisconsin capital assets
7qualified Wisconsin business.
AB40-ASA1,1315 8Section 1315. 71.05 (26) (a) 4. of the statutes is amended to read:
AB40-ASA1,713,119 71.05 (26) (a) 4. "Qualified Wisconsin business" means a business certified by
10the Wisconsin Economic Development Corporation under s. 238.146, 2011 stats., or
11registered with the department under s. 73.03 (69)
.
AB40-ASA1,1316 12Section 1316. 71.05 (26) (b) (intro.) of the statutes is amended to read:
AB40-ASA1,713,1513 71.05 (26) (b) (intro.) For taxable years beginning after December 31, 2010, and
14before January 1, 2014,
a claimant may subtract from federal adjusted gross income
15any amount of a long-term capital gain if the claimant does all of the following:
AB40-ASA1,1317 16Section 1317. 71.05 (26) (bm) of the statutes is created to read:
AB40-ASA1,713,1917 71.05 (26) (bm) For taxable years beginning after December 31, 2013, a
18claimant may subtract from federal adjusted gross income any amount of a
19long-term capital gain if the claimant does all of the following:
AB40-ASA1,713,2120 1. Within 180 days after the sale of the asset that generated the gain, invests
21all of the gain in a qualified Wisconsin business.
AB40-ASA1,714,222 2. After making the investment as described under subd. 1., notifies the
23department, on a form prepared by the department, that the claimant will not
24declare the gain on the claimant's income tax return because the claimant has
25reinvested the capital gain as described under subd. 1. The form shall be sent to the

1department along with the claimant's income tax return for the year to which the
2claim relates.
AB40-ASA1,1318 3Section 1318. 71.05 (26) (c) of the statutes is amended to read:
AB40-ASA1,714,84 71.05 (26) (c) The basis of the investment described in par. (b) 2. shall be
5calculated by subtracting the gain described in par. (b) 1. from the amount of the
6investment described in par. (b) 2. The basis of the investment described in par. (bm)
71. shall be calculated by subtracting the gain described in par. (bm) 1. from the
8amount of the investment described in par. (bm) 1.
AB40-ASA1,1319 9Section 1319. 71.05 (26) (d) of the statutes is amended to read:
AB40-ASA1,714,1210 71.05 (26) (d) If a claimant defers the payment of income taxes on a capital gain
11under this subsection, the claimant may not use the gain described under par. (b) 1.
12to net capital gains and losses, as described under sub. (10) (c).
AB40-ASA1,1320 13Section 1320. 71.05 (26) (f) of the statutes is amended to read:
AB40-ASA1,714,1614 71.05 (26) (f) If a claimant claims the a subtraction for a capital gain under this
15subsection
par. (b) or (bm), the gain described under par. (b) 1. may not be used as
16a qualifying gain under sub. (25).
AB40-ASA1,1321 17Section 1321. 71.06 (1p) (intro.) of the statutes is amended to read:
AB40-ASA1,714,2318 71.06 (1p) Fiduciaries, single individuals and heads of households; after 2000
192001 to 2012. (intro.) The tax to be assessed, levied and collected upon the taxable
20incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or
21reserve funds, and single individuals and heads of households shall be computed at
22the following rates for taxable years beginning after December 31, 2000, and before
23January 1, 2013
:
AB40-ASA1,1322 24Section 1322. 71.06 (1q) of the statutes is created to read:
AB40-ASA1,715,5
171.06 (1q) Fiduciaries, single individuals, and heads of households; after
22012.
(intro.) The tax to be assessed, levied, and collected upon the taxable incomes
3of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve
4funds, and single individuals and heads of households shall be computed at the
5following rates for taxable years beginning after December 31, 2012:
AB40-ASA1,715,66 (a) On all taxable income from $0 to $7,500, 4.40 percent.
AB40-ASA1,715,87 (b) On all taxable income exceeding $7,500 but not exceeding $15,000, 5.84
8percent.
AB40-ASA1,715,109 (c) On all taxable income exceeding $15,000 but not exceeding $225,000, 6.27
10percent.
AB40-ASA1,715,1111 (d) On all taxable income exceeding $225,000, 7.65 percent.
AB40-ASA1,1323 12Section 1323. 71.06 (2) (g) (intro.) of the statutes is amended to read:
AB40-ASA1,715,1413 71.06 (2) (g) (intro.) For joint returns, for taxable years beginning after
14December 31, 2000, and before January 1, 2013:
AB40-ASA1,1324 15Section 1324. 71.06 (2) (h) (intro.) of the statutes is amended to read:
AB40-ASA1,715,1716 71.06 (2) (h) (intro.) For married persons filing separately, for taxable years
17beginning after December 31, 2000, and before January 1, 2013:
AB40-ASA1,1325 18Section 1325. 71.06 (2) (i) of the statutes is created to read:
AB40-ASA1,715,2019 71.06 (2) (i) For joint returns, for taxable years beginning after
20December 31, 2012:
AB40-ASA1,715,2121 1. On all taxable income from $0 to $10,000, 4.40 percent.
AB40-ASA1,715,2322 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 5.84
23percent.
AB40-ASA1,715,2524 3. On all taxable income exceeding $20,000 but not exceeding $300,000, 6.27
25percent.
AB40-ASA1,716,1
14. On all taxable income exceeding $300,000, 7.65 percent.
AB40-ASA1,1326 2Section 1326. 71.06 (2) (j) of the statutes is created to read:
AB40-ASA1,716,43 71.06 (2) (j) For married persons filing separately, for taxable years beginning
4after December 31, 2012:
AB40-ASA1,716,55 1. On all taxable income from $0 to $5,000, 4.40 percent.
AB40-ASA1,716,76 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 5.84
7percent.
AB40-ASA1,716,98 3. On all taxable income exceeding $10,000 but not exceeding $150,000, 6.27
9percent.
AB40-ASA1,716,1010 4. On all taxable income exceeding $150,000, 7.65 percent.
AB40-ASA1,1327 11Section 1327. 71.06 (2e) (a) of the statutes is amended to read:
AB40-ASA1,717,1212 71.06 (2e) (a) For taxable years beginning after December 31, 1998, and before
13January 1, 2000, the maximum dollar amount in each tax bracket, and the
14corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2)
15(c) and (d), and for taxable years beginning after December 31, 1999, the maximum
16dollar amount in each tax bracket, and the corresponding minimum dollar amount
17in the next bracket, under subs. (1n), (1p) (a) to (c), (1q) (a) and (b), and (2) (e), (f), (g)
181. to 3., and (h) 1. to 3., (i) 1. and 2., and (j) 1. and 2., shall be increased each year by
19a percentage equal to the percentage change between the U.S. consumer price index
20for all urban consumers, U.S. city average, for the month of August of the previous
21year and the U.S. consumer price index for all urban consumers, U.S. city average,
22for the month of August 1997, as determined by the federal department of labor,
23except that for taxable years beginning after December 31, 2000, and before January
241, 2002, the dollar amount in the top bracket under subs. (1p) (c) and (d), (2) (g) 3.
25and 4. and (h) 3. and 4. shall be increased by a percentage equal to the percentage

1change between the U.S. consumer price index for all urban consumers, U.S. city
2average, for the month of August of the previous year and the U.S. consumer price
3index for all urban consumers, U.S. city average, for the month of August 1999, as
4determined by the federal department of labor, except that for taxable years
5beginning after December 31, 2011, the adjustment may occur only if the resulting
6amount is greater than the corresponding amount that was calculated for the
7previous year. Each amount that is revised under this paragraph shall be rounded
8to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the
9revised amount is a multiple of $5, such an amount shall be increased to the next
10higher multiple of $10. The department of revenue shall annually adjust the changes
11in dollar amounts required under this paragraph and incorporate the changes into
12the income tax forms and instructions.
AB40-ASA1,1328 13Section 1328. 71.06 (2e) (b) of the statutes is amended to read:
AB40-ASA1,718,514 71.06 (2e) (b) For taxable years beginning after December 31, 2009, the
15maximum dollar amount in each tax bracket, and the corresponding minimum dollar
16amount in the next bracket, under subs. (1p) (d), (1q) (c), and (2) (g) 4. and, (h) 4., (i)
173., and (j) 3.,
and the dollar amount in the top bracket under subs. (1p) (e), (1q) (d),
18and (2) (g) 5. and, (h) 5., (i) 4., and (j) 4., shall be increased each year by a percentage
19equal to the percentage change between the U.S. consumer price index for all urban
20consumers, U.S. city average, for the month of August of the previous year and the
21U.S. consumer price index for all urban consumers, U.S. city average, for the month
22of August 2008, as determined by the federal department of labor, except that for
23taxable years beginning after December 31, 2011, the adjustment may occur only if
24the resulting amount is greater than the corresponding amount that was calculated
25for the previous year. Each amount that is revised under this paragraph shall be

1rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10
2or, if the revised amount is a multiple of $5, such an amount shall be increased to the
3next higher multiple of $10. The department of revenue shall annually adjust the
4changes in dollar amounts required under this paragraph and incorporate the
5changes into the income tax forms and instructions.
AB40-ASA1,1329 6Section 1329. 71.06 (2e) (c) of the statutes is created to read:
AB40-ASA1,718,127 71.06 (2e) (c) Each amount that is revised under this subsection shall be
8rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10
9or, if the revised amount is a multiple of $5, such an amount shall be increased to the
10next higher multiple of $10. The department of revenue shall annually adjust the
11changes in dollar amounts required under this subsection and incorporate the
12changes into the income tax forms and instructions.
AB40-ASA1,1330 13Section 1330. 71.06 (2m) of the statutes is amended to read:
AB40-ASA1,718,1714 71.06 (2m) Rate changes. If a rate under sub. (1), (1m), (1n), (1p), (1q), or (2)
15changes during a taxable year, the taxpayer shall compute the tax for that taxable
16year by the methods applicable to the federal income tax under section 15 of the
17internal revenue code Internal Revenue Code.
AB40-ASA1,1331 18Section 1331. 71.06 (2s) (d) of the statutes is amended to read:
AB40-ASA1,719,619 71.06 (2s) (d) For taxable years beginning after December 31, 2000, with
20respect to nonresident individuals, including individuals changing their domicile
21into or from this state, the tax brackets under subs. (1p), (1q), and (2) (g) and, (h), (i),
22and (j)
shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted
23gross income and the denominator of which is federal adjusted gross income. In this
24paragraph, for married persons filing separately "adjusted gross income" means the
25separate adjusted gross income of each spouse, and for married persons filing jointly

1"adjusted gross income" means the total adjusted gross income of both spouses. If
2an individual and that individual's spouse are not both domiciled in this state during
3the entire taxable year, the tax brackets under subs. (1p), (1q), and (2) (g) and, (h),
4(i), and (j)
on a joint return shall be multiplied by a fraction, the numerator of which
5is their joint Wisconsin adjusted gross income and the denominator of which is their
6joint federal adjusted gross income.
AB40-ASA1,1331d 7Section 1331d. 71.07 (2) of the statutes is amended to read:
AB40-ASA1,719,158 71.07 (2) Community development finance authority credit. Any individual
9receiving a credit under s. 71.09 (12m), 1985 stats., may carry forward to the next
10succeeding 15 taxable years the amount of the credit not offset against taxes for the
11year of purchase to the extent not offset by those taxes otherwise due in all
12intervening years between the year for which the credit was computed and the year
13for which the carry-forward is claimed. No unused credits may be carried forward
14and claimed under this subsection for taxable years beginning after December 31,
152013.
AB40-ASA1,1332 16Section 1332. 71.07 (2dj) (am) 4h. of the statutes is amended to read:
AB40-ASA1,719,2217 71.07 (2dj) (am) 4h. Modify section 51 (a) of the internal revenue code Internal
18Revenue Code
so that the amount of the credit is 25% of the qualified first-year
19wages if the wages are paid to an applicant for a Wisconsin works Works employment
20position for service either in an unsubsidized position or in a trial job under s. 49.147
21(3), 2011 stats., and so that the amount of the credit is 20% of the qualified first-year
22wages if the wages are not paid to such an applicant.
AB40-ASA1,1333 23Section 1333. 71.07 (2dx) (a) 4. of the statutes is amended to read:
AB40-ASA1,720,524 71.07 (2dx) (a) 4. "Full-time job" means a regular, nonseasonal full-time
25position in which an individual, as a condition of employment, is required to work at

1least 2,080 hours per year, including paid leave and holidays, and for which the
2individual receives pay that is equal to at least 150% of the federal minimum wage
3and receives benefits that are not required by federal or state law. "Full-time job"
4does not include initial training before an employment position begins
has the
5meaning given in s. 238.30 (2m)
.
AB40-ASA1,1334 6Section 1334. 71.07 (2dx) (a) 5. of the statutes is amended to read:
AB40-ASA1,720,207 71.07 (2dx) (a) 5. "Member of a targeted group" means a person who resides
8in an area designated by the federal government as an economic revitalization area,
9a person who is employed in an unsubsidized job but meets the eligibility
10requirements under s. 49.145 (2) and (3) for a Wisconsin Works employment position,
11a person who is employed in a trial job, as defined in s. 49.141 (1) (n), 2011 stats., or
12in a real work, real pay project position under s. 49.147 (3m) trial employment match
13program job, as defined in s. 49.141 (1) (n)
, a person who is eligible for child care
14assistance under s. 49.155, a person who is a vocational rehabilitation referral, an
15economically disadvantaged youth, an economically disadvantaged veteran, a
16supplemental security income recipient, a general assistance recipient, an
17economically disadvantaged ex-convict, a qualified summer youth employee, as
18defined in 26 USC 51 (d) (7), a dislocated worker, as defined in 29 USC 2801 (9), or
19a food stamp recipient, if the person has been certified in the manner under sub. (2dj)
20(am) 3. by a designated local agency, as defined in sub. (2dj) (am) 2.
AB40-ASA1,1335 21Section 1335. 71.07 (2dx) (b) 2. of the statutes is amended to read:
AB40-ASA1,721,222 71.07 (2dx) (b) 2. The amount determined by multiplying the amount
23determined under s. 238.385 (1) (b) or s. 560.785 (1) (b), 2009 stats., by the number
24of full-time jobs created in a development zone and filled by a member of a targeted

1group and by then subtracting the subsidies paid under s. 49.147 (3) (a) or the
2subsidies and reimbursements paid under s. 49.147 (3m) (c)
for those jobs.
AB40-ASA1,1336 3Section 1336. 71.07 (2dx) (b) 3. of the statutes is amended to read:
AB40-ASA1,721,84 71.07 (2dx) (b) 3. The amount determined by multiplying the amount
5determined under s. 238.385 (1) (c) or s. 560.785 (1) (c), 2009 stats., by the number
6of full-time jobs created in a development zone and not filled by a member of a
7targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) or
8the subsidies and reimbursements paid under s. 49.147 (3m) (c)
for those jobs.
AB40-ASA1,1337 9Section 1337. 71.07 (2dx) (b) 4. of the statutes is amended to read:
AB40-ASA1,721,1710 71.07 (2dx) (b) 4. The amount determined by multiplying the amount
11determined under s. 238.385 (1) (bm) or s. 560.785 (1) (bm), 2009 stats., by the
12number of full-time jobs retained, as provided in the rules under s. 238.385 or s.
13560.785, 2009 stats., excluding jobs for which a credit has been claimed under sub.
14(2dj), in an enterprise development zone under s. 238.397 or s. 560.797, 2009 stats.,
15and for which significant capital investment was made and by then subtracting the
16subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid
17under s. 49.147 (3m) (c)
for those jobs.
Loading...
Loading...