SB21-SSA1,658,619 2. For purposes of this paragraph, "Internal Revenue Code" does not include
20the following provisions of federal public laws for taxable years beginning after
21December 31, 2013: section 13113 of P.L 103-66; sections 1, 3, 4, and 5 of P.L.
22106-519; sections 101, 102, and 422 of P.L 108-357; sections 1310 and 1351 of P.L.
23109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of
24P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L.
25110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; sections

115303 and 15351 of P.L. 110-246; section 302 of division A, section 401 of division B,
2and sections 312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections
31232, 1241, 1251, 1501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213,
4214, and 216 of P.L. 111-226; sections 2011 and 2122 of P.L. 111-240; sections 753,
5754, and 760 of P.L. 111-312; section 1106 of P.L. 112-95; and sections 104, 318, 322,
6323, 324, 326, 327, and 411 of P.L. 112-240.
SB21-SSA1,658,107 3. For purposes of this paragraph, "Internal Revenue Code" does not include
8amendments to the federal Internal Revenue Code enacted after December 31, 2013,
9except that "Internal Revenue Code" includes the provisions of the following federal
10public laws:
SB21-SSA1,658,1414d. Section 302901 of P.L. 113-287.
SB21-SSA1,658,1515e. Sections 171, 172, and 201 to 221 of P.L. 113-295.
SB21-SSA1,658,1616f. Sections 102, 105, and 207 of division B of P.L. 113-295.
SB21-SSA1,658,1917 4. For purposes of this paragraph, the provisions of federal public laws that
18directly or indirectly affect the Internal Revenue Code, as defined in this paragraph,
19apply for Wisconsin purposes at the same time as for federal purposes.
SB21-SSA1,2117e 20Section 2117e. 71.05 (2) of the statutes is amended to read:
SB21-SSA1,659,621 71.05 (2) Nonresident reciprocity. All payments received by natural persons
22domiciled outside Wisconsin who derive income from the performance of personal
23services in Wisconsin shall be excluded from Wisconsin gross income to the extent
24that it is subjected to an income tax imposed by the state of domicile; provided that
25the law of the state of domicile allows a similar exclusion of income from personal

1services earned in such state by natural persons domiciled in Wisconsin, or a credit
2against the tax imposed by such state on such income equal to the Wisconsin tax on
3such income. With regard to any agreement that is entered into under this
4subsection on or after the effective date of this subsection .... [LRB inserts date], such
5an agreement may not take effect unless it is approved by the joint committee on
6finance using the procedures authorized under s. 13.101
.
SB21-SSA1,2118 7Section 2118. 71.05 (6) (a) 15. of the statutes is amended to read:
SB21-SSA1,659,148 71.05 (6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the
9credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds),
10(2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (3y), (4k), (4n),
11(5e), (5f), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (8r) and not passed through by a
12partnership, limited liability company, or tax-option corporation that has added that
13amount to the partnership's, company's, or tax-option corporation's income under s.
1471.21 (4) or 71.34 (1k) (g).
SB21-SSA1,2118d 15Section 2118d. 71.05 (6) (a) 26. a. of the statutes is amended to read:
SB21-SSA1,659,2116 71.05 (6) (a) 26. a. To the extent that the receipt of such amounts by the owner
17or beneficiary of the account results in a penalty as provided in 26 USC 529 (c) (6),
18any amount that was not used for qualified higher education expenses, as that term
19is defined in 26 USC 529 (e) (3), and was contributed to the account after December
2031, 2013., except that this subd. 26. a. applies only to amounts for which a subtraction
21was made under par. (b) 32.
SB21-SSA1,2118dd 22Section 2118dd. 71.05 (6) (a) 26. c. of the statutes is created to read:
SB21-SSA1,660,323 71.05 (6) (a) 26. c. To the extent that an amount is not otherwise added back
24under this subdivision, any amount withdrawn from a college savings account, as
25described in s. 16.641, for any purpose if the withdrawn amount was contributed to

1the account within 365 days of the day on which the amount was withdrawn from
2such an account and if the withdrawn amount was previously subtracted under par.
3(b) 32.
SB21-SSA1,2118e 4Section 2118e. 71.05 (6) (a) 27. of the statutes is created to read:
SB21-SSA1,660,105 71.05 (6) (a) 27. Except as provided in subd. 28., any accumulated interest,
6dividends, or other gain that accrues from an account described under s. 16.643
7during the taxable year in which a withdrawal occurs from such an account if any
8amount of the money or other assets in the account is withdrawn by, or at the
9direction of, an account owner for any reason other than the payment of qualified
10expenses, as defined in s. 16.643 (1) (e), for the account beneficiary.
SB21-SSA1,2118f 11Section 2118f. 71.05 (6) (a) 28. of the statutes is created to read:
SB21-SSA1,660,1412 71.05 (6) (a) 28. Upon the termination of an account under s. 16.643 (3) (d), any
13amount in the account that is returned to an account owner, or an account owner's
14estate.
SB21-SSA1,2119 15Section 2119. 71.05 (6) (b) 11. of the statutes is repealed.
SB21-SSA1,2123g 16Section 2123g. 71.05 (6) (b) 32. (intro.) of the statutes is amended to read:
SB21-SSA1,660,2317 71.05 (6) (b) 32. (intro.) An amount paid into a college savings account, as
18described in s. 16.641, in the taxable year in which the contribution is made or on or
19before the 15th day of the 4th month beginning after the close of a taxpayer's taxable
20year to which this subtraction relates, by the owner of the account or by any other
21individual, for the benefit of any beneficiary of an account, calculated as follows,
22except that each amount that is subtracted under this subdivision may be subtracted
23only once
:
SB21-SSA1,2123gc 24Section 2123gc. 71.05 (6) (b) 32. ae. of the statutes is created to read:
SB21-SSA1,661,4
171.05 (6) (b) 32. ae. No carryover that would otherwise be authorized under this
2subdivision may be allowed if the carryover amount was withdrawn from an account
3for any purpose and the withdrawal occurred within 365 days of the day on which
4the amount was contributed to the account.
SB21-SSA1,2123gd 5Section 2123gd. 71.05 (6) (b) 32. am. of the statutes is created to read:
SB21-SSA1,661,106 71.05 (6) (b) 32. am. Any carryover amount that is otherwise eligible for a
7subtraction under this subdivision shall be reduced by an amount equal to the
8amount of a withdrawal from an account that was not used for qualified higher
9education expenses, as that term is defined in 26 USC 529 (e) (3), to the extent that
10the withdrawn amount exceeds the amount that is added to income under par. (a) 26.
SB21-SSA1,2123gg 11Section 2123gg. 71.05 (6) (b) 32m. of the statutes is created to read:
SB21-SSA1,661,1812 71.05 (6) (b) 32m. Consistent with the limitations specified in subd. 32., for
13rollovers occurring after April 15, 2015, any principal amount rolled over to a college
14savings account, as described in s. 16.641, from another state's qualified tuition
15program, as described in 26 USC 529 (c) (3) (C) (i). Amounts eligible for the
16subtraction under this subdivision that are in excess of the annual limits specified
17under subd. 32. may be carried forward to future taxable years of the taxpayer
18without limitation, other than the limits specified in subd. 32. ae. and am.
SB21-SSA1,2123m 19Section 2123m. 71.05 (6) (b) 44. of the statutes is amended to read:
SB21-SSA1,661,2320 71.05 (6) (b) 44. For taxable years beginning after December 31, 2006, and
21ending before January 1, 2015
, the amount of any incentive payment received by an
22individual under s. 23.33 (5r), 2013 stats., in the taxable year to which the claim
23relates.
SB21-SSA1,2124 24Section 2124. 71.05 (6) (b) 47. b. of the statutes is amended to read:
SB21-SSA1,662,21
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
12702 of the Internal Revenue Code, except items that are not deductible under s.
1371.21; 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.
SB21-SSA1,2124d 22Section 2124d. 71.05 (6) (b) 47m. of the statutes is amended to read:
SB21-SSA1,663,1723 71.05 (6) (b) 47m. An amount equal to the increase in the number of full-time
24equivalent employees employed by the taxpayer in this state during the taxable year,
25multiplied by $4,000 for a business with gross receipts of no greater than $5,000,000

1in the taxable year or $2,000 for a business with gross receipts greater than
2$5,000,000 in the taxable year. For purposes of this subdivision, the increase in the
3number of full-time equivalent employees employed by the taxpayer in this state
4during the taxable year is determined by subtracting from the number of full-time
5equivalent employees employed by the taxpayer in this state during the taxable year,
6as determined by computing the average employee count from the taxpayer's
7quarterly unemployment insurance reports or other information as required by the
8department for the taxable year, the number of full-time equivalent employees
9employed by the taxpayer in this state during the immediately preceding taxable
10year, as determined by computing the average employee count from the taxpayer's
11quarterly unemployment insurance reports or other information as required by the
12department for the immediately preceding taxable year. No person may claim a
13deduction under this subdivision if the person may claim a deduction under this
14subchapter based on the person relocating the person's business from another state
15to this state and in an amount equal to the person's tax liability. No person may claim
16a deduction under this subdivision for taxable years beginning after December 31,
172014.
The department shall promulgate rules to administer this subdivision.
SB21-SSA1,2124e 18Section 2124e. 71.05 (6) (b) 52. of the statutes is created to read:
SB21-SSA1,663,2219 71.05 (6) (b) 52. Subject to the limits under s. 16.643 (3) (c) 1. and 2., any amount
20that is deposited by an account owner or any other person into an account described
21under s. 16.643, and any interest, dividends, or other gain that accrues in the account
22if the interest, dividends, or other gain is redeposited into the account.
SB21-SSA1,2124s 23Section 2124s. 71.05 (22) (dp) of the statutes is renumbered 71.05 (22) (dp) 1.
24and amended to read:
SB21-SSA1,665,5
171.05 (22) (dp) 1. Deduction limits, 2000 and thereafter. Except as provided in
2par. (f), and subject to subd. 2., for taxable years beginning after December 31, 1999,
3the Wisconsin standard deduction is whichever of the following amounts is
4appropriate. For a single individual who has a Wisconsin adjusted gross income of
5less than $10,380, the standard deduction is $7,200. For a single individual who has
6a Wisconsin adjusted gross income of at least $10,380, the standard deduction is the
7amount obtained by subtracting from $7,200 12% of Wisconsin adjusted gross income
8in excess of $10,380 but not less than $0. For a head of household who has a
9Wisconsin adjusted gross income of less than $10,380, the standard deduction is
10$9,300. For a head of household who has a Wisconsin adjusted gross income of at
11least $10,380, the standard deduction is the amount obtained by subtracting from
12$9,300 22.515% of Wisconsin adjusted gross income in excess of $10,380, but not less
13than $0, until the adjusted gross income amount at which the standard deduction is
14equal to the standard deduction for a single individual at the same adjusted gross
15income amount. For a head of household who has a Wisconsin adjusted gross income
16of more than this amount, the standard deduction shall be calculated as if the head
17of household were a single individual. For a married couple filing jointly that has
18an aggregate Wisconsin adjusted gross income of less than $14,570, the standard
19deduction is $12,970. For a married couple filing jointly that has an aggregate
20Wisconsin adjusted gross income of at least $14,570, the standard deduction is the
21amount obtained by subtracting from $12,970 19.778% of aggregate Wisconsin
22adjusted gross income in excess of $14,570 but not less than $0. For a married
23individual filing separately who has a Wisconsin adjusted gross income of less than
24$6,920, the standard deduction is $6,160. For a married individual filing separately
25who has a Wisconsin adjusted gross income of at least $6,920, the standard deduction

1is the amount obtained by subtracting from $6,160 19.778% of Wisconsin adjusted
2gross income in excess of $6,920 but not less than $0. The secretary of revenue shall
3prepare a table under which deductions under this paragraph subdivision shall be
4determined. That table shall be published in the department's instructional
5booklets.
SB21-SSA1,2124sc 6Section 2124sc. 71.05 (22) (dp) 2. of the statutes is created to read:
SB21-SSA1,665,227 71.05 (22) (dp) 2. Except as provided in par. (f), for taxable years beginning
8after December 31, 2015, the Wisconsin standard deduction is whichever of the
9following amounts is appropriate. For a married couple filing jointly that has an
10aggregate Wisconsin adjusted gross income of less than $21,360, the standard
11deduction is $19,010. For a married couple filing jointly that has an aggregate
12Wisconsin adjusted gross income of at least $21,360, the standard deduction is the
13amount obtained by subtracting from $19,010 19.778 percent of aggregate Wisconsin
14adjusted gross income in excess of $21,360 but not less than $0. For a married
15individual filing separately who has a Wisconsin adjusted gross income of less than
16$10,140, the standard deduction is $9,030. For a married individual filing separately
17who has a Wisconsin adjusted gross income of at least $10,140, the standard
18deduction is the amount obtained by subtracting from $9,030 19.778 percent of
19Wisconsin adjusted gross income in excess of $10,140 but not less than $0. The
20secretary of revenue shall prepare a table under which deductions under this
21subdivision shall be determined. That table shall be published in the department's
22instructional booklets.
SB21-SSA1,2124se 23Section 2124se. 71.05 (22) (dt) of the statutes is amended to read:
SB21-SSA1,666,1624 71.05 (22) (dt) Standard deduction indexing, 2001 and thereafter. For taxable
25years beginning after December 31, 2000, the dollar amounts of the standard

1deduction that is allowable under par. (dp) and all of the dollar amounts of Wisconsin
2adjusted gross income under par. (dp) shall be increased each year by a percentage
3equal to the percentage change between the U.S. consumer price index for all urban
4consumers, U.S. city average, for the month of August of the previous year and the
5U.S. consumer price index for all urban consumers, U.S. city average, for the month
6of August 1999, as determined by the federal department of labor, except that for
7taxable years beginning after December 31, 2011, the adjustment may occur only if
8the resulting amount is greater than the corresponding amount that was calculated
9for the previous year, and except that the base year for the adjustments to the dollar
10amounts of the standard deduction and all of the dollar amounts of Wisconsin
11adjusted gross income under par. (dp) 2. shall be 2015
. Each amount that is revised
12under this paragraph shall be rounded to the nearest multiple of $10 if the revised
13amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an
14amount shall be increased to the next higher multiple of $10. The department of
15revenue shall annually adjust the changes in dollar amounts required under this
16paragraph and incorporate the changes into the income tax forms and instructions.
SB21-SSA1,2125 17Section 2125. 71.07 (2dd) of the statutes is repealed.
SB21-SSA1,2126 18Section 2126. 71.07 (2de) of the statutes is repealed.
SB21-SSA1,2127 19Section 2127. 71.07 (2di) of the statutes is repealed.
SB21-SSA1,2128 20Section 2128. 71.07 (2dj) of the statutes is repealed.
SB21-SSA1,2129 21Section 2129. 71.07 (2dL) of the statutes is repealed.
SB21-SSA1,2138 22Section 2138. 71.07 (2dr) of the statutes is repealed.
SB21-SSA1,2139 23Section 2139. 71.07 (2ds) of the statutes is repealed.
SB21-SSA1,2141 24Section 2141. 71.07 (2dx) (a) 3. of the statutes is amended to read:
SB21-SSA1,667,7
171.07 (2dx) (a) 3. "Environmental remediation" means removal or
2containment of environmental pollution, as defined in s. 299.01 (4), and restoration
3of soil or groundwater that is affected by environmental pollution, as defined in s.
4299.01 (4), in a brownfield if that removal, containment or restoration fulfills the
5requirement under sub. (2de) (a) 1., 2013 stats., and investigation unless the
6investigation determines that remediation is required and that remediation is not
7undertaken.
SB21-SSA1,2143 8Section 2143. 71.07 (2dx) (a) 5. of the statutes is amended to read:
SB21-SSA1,667,229 71.07 (2dx) (a) 5. "Member of a targeted group" means a person who resides
10in an area designated by the federal government as an economic revitalization area,
11a person who is employed in an unsubsidized job but meets the eligibility
12requirements under s. 49.145 (2) and (3) for a Wisconsin Works employment position,
13a person who is employed in a trial job, as defined in s. 49.141 (1) (n), 2011 stats., or
14in a trial employment match program job, as defined in s. 49.141 (1) (n), a person who
15is eligible for child care assistance under s. 49.155, a person who is a vocational
16rehabilitation referral, an economically disadvantaged youth, an economically
17disadvantaged veteran, a supplemental security income recipient, a general
18assistance recipient, an economically disadvantaged ex-convict, a qualified summer
19youth employee, as defined in 26 USC 51 (d) (7), a dislocated worker, as defined in
2029 USC 2801 (9), or a food stamp recipient, if the person has been certified in the
21manner under sub. (2dj) (am) 3., 2013 stats, by a designated local agency, as defined
22in sub. (2dj) (am) 2., 2013 stats.
SB21-SSA1,2144b 23Section 2144b. 71.07 (2dx) (b) 4. of the statutes is amended to read:
SB21-SSA1,668,524 71.07 (2dx) (b) 4. The amount determined by multiplying the amount
25determined under s. 238.385 (1) (bm) or s. 560.785 (1) (bm), 2009 stats., by the

1number of full-time jobs retained, as provided in the rules under s. 238.385 or s.
2560.785, 2009 stats., excluding jobs for which a credit has been claimed under sub.
3(2dj),
in an enterprise development zone under s. 238.397 or s. 560.797, 2009 stats.,
4and for which significant capital investment was made and by then subtracting the
5subsidies paid under s. 49.147 (3) (a) for those jobs.
SB21-SSA1,2144c 6Section 2144c. 71.07 (2dx) (b) 5. of the statutes is amended to read:
SB21-SSA1,668,127 71.07 (2dx) (b) 5. The amount determined by multiplying the amount
8determined under s. 238.385 (1) (c) or s. 560.785 (1) (c), 2009 stats., by the number
9of full-time jobs retained, as provided in the rules under s. 238.385 or s. 560.785,
102009 stats., excluding jobs for which a credit has been claimed under sub. (2dj), in
11a development zone and not filled by a member of a targeted group and by then
12subtracting the subsidies paid under s. 49.147 (3) (a) for those jobs.
SB21-SSA1,2149 13Section 2149. 71.07 (2dx) (e) of the statutes is renumbered 71.07 (2dx) (e) 1.
14and amended to read:
SB21-SSA1,668,1915 71.07 (2dx) (e) 1. Section 71.28 (4) (e) to (h), as it applies to the credit under
16s. 71.28 (4), applies to the credit under this subsection. Subsection (2dj) (c), as it
17applies to the credit under sub. (2dj), applies to the credit under this subsection.

18Claimants shall include with their returns a copy of their certification for tax benefits
19and a copy of the department of commerce's verification of their expenses.
SB21-SSA1,2150 20Section 2150. 71.07 (2dx) (e) 2. of the statutes is created to read:
SB21-SSA1,669,421 71.07 (2dx) (e) 2. The credit under this subsection may not be claimed by
22partnerships, limited liability companies and tax-option corporations but the
23eligibility for, and the amount of, that credit shall be determined on the basis of their
24economic activity, not that of their shareholders, partners or members. The
25corporation, partnership or limited liability company shall compute the amount of

1credit that may be claimed by each of its shareholders, partners or members and
2shall provide that information to each of its shareholders, partners or members.
3That credit may be claimed by partners, members of limited liability companies and
4shareholders of tax-option corporations in proportion to their ownership interests.
SB21-SSA1,2183 5Section 2183. 71.07 (3y) of the statutes is created to read:
SB21-SSA1,669,66 71.07 (3y) Business development credit. (a) Definitions. In this subsection:
SB21-SSA1,669,77 1. "Claimant" means a person certified to receive tax benefits under s. 238.308.
SB21-SSA1,669,88 2. "Eligible employee" has the meaning given in s. 238.308 (1) (a).
SB21-SSA1,669,119 (b) Filing claims. Subject to the limitations provided in this subsection and s.
10238.308, for taxable years beginning after December 31, 2015, a claimant may claim
11as a credit against the tax imposed under ss. 71.02 and 71.08 all of the following:
SB21-SSA1,669,1412 1. The amount of wages that the claimant paid to an eligible employee in the
13taxable year, not to exceed 10 percent of such wages, as determined by the Wisconsin
14Economic Development Corporation under s. 238.308.
SB21-SSA1,669,1915 2. In addition to any amount claimed for an eligible employee under subd. 1.,
16the amount of wages that the claimant paid to the eligible employee in the taxable
17year, not to exceed 5 percent of such wages, if the eligible employee is employed in
18an economically distressed area, as determined by the Wisconsin Economic
19Development Corporation.
SB21-SSA1,669,2220 3. The amount of training costs that the claimant incurred under s. 238.308 (4)
21(a) 3., not to exceed 50 percent of such costs, as determined by the Wisconsin
22Economic Development Corporation.
SB21-SSA1,670,223 4. The amount of the personal property investment, not to exceed 3 percent of
24such investment, and the amount of the real property investment, not to exceed 5

1percent of such investment, in a capital investment project that satisfies s. 238.308
2(4) (a) 4., as determined by the Wisconsin Economic Development Corporation.
SB21-SSA1,670,93 5. An amount, as determined by the Wisconsin Economic Development
4Corporation under s. 238.308 (4) (a) 5., equal to a percentage of the amount of wages
5that the claimant paid to an eligible employee in the taxable year if the position in
6which the eligible employee was employed was created or retained in connection with
7the claimant's location or retention of the claimant's corporate headquarters in
8Wisconsin and the job duties associated with the eligible employee's position involve
9the performance of corporate headquarters functions.
SB21-SSA1,670,1710 (c) Limitations. 1. Partnerships, limited liability companies, and tax-option
11corporations may not claim the credit under this subsection, but the eligibility for,
12and the amount of, the credit are based on their payment of amounts under par. (b).
13A partnership, limited liability company, or tax-option corporation shall compute
14the amount of credit that each of its partners, members, or shareholders may claim
15and shall provide that information to each of them. Partners, members of limited
16liability companies, and shareholders of tax-option corporations may claim the
17credit in proportion to their ownership interests.
SB21-SSA1,670,2018 2. No credit may be allowed under this subsection unless the claimant includes
19with the claimant's return a copy of the claimant's certification for tax benefits under
20s. 238.308.
SB21-SSA1,670,2221 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
22credit under s. 71.28 (4), applies to the credit under this subsection.
SB21-SSA1,671,223 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise
24due under ss. 71.02 and 71.08, the amount of the claim not used to offset the tax due
25shall be certified by the department of revenue to the department of administration

1for payment by check, share draft, or other draft drawn from the appropriation
2account under s. 20.835 (2) (bg).
SB21-SSA1,2184 3Section 2184. 71.07 (4k) (b) 1. of the statutes is amended to read:
SB21-SSA1,671,234 71.07 (4k) (b) 1. Subject to the limitations provided in this subsection, and
5except as provided in subds. 2. and 3., for taxable years beginning after December
631, 2012, and before January 1, 2015, an individual, a partner of a partnership, a
7shareholder of a tax-option corporation, or a member of a limited liability company
8may claim a credit against the tax imposed under s. 71.02 or 71.08, as allocated under
9par. (d), an amount equal to 5 percent of the amount obtained by subtracting from
10the individual's, partnership's, tax-option corporation's, or limited liability
11company's qualified research expenses, as defined in section 41 of the Internal
12Revenue Code, except that "qualified research expenses" includes only expenses
13incurred by the individual, partnership, tax-option corporation, or the limited
14liability company, incurred for research conducted in this state for the taxable year,
15except that a taxpayer may elect the alternative computation under section 41 (c) (4)
16of the Internal Revenue Code and that election applies until the department permits
17its revocation, except as provided in par. (c), and except that "qualified research
18expenses" does not include compensation used in computing the credit under subs.
19(2dj) and
sub. (2dx), the entity's base amount, as defined in section 41 (c) of the
20Internal Revenue Code, except that gross receipts used in calculating the base
21amount means gross receipts from sales attributable to Wisconsin under ss. 71.04 (7)
22(b) 1. and 2., (df), (dh), (dj), and (dk). Section 41 (h) of the Internal Revenue Code does
23not apply to the credit under this subdivision.
SB21-SSA1,2185 24Section 2185. 71.07 (4k) (b) 2. of the statutes is amended to read:
SB21-SSA1,672,22
171.07 (4k) (b) 2. For taxable years beginning after December 31, 2012, and
2before January 1, 2015,
an individual, a partner of a partnership, a shareholder of
3a tax-option corporation, or a member of a limited liability company may claim a
4credit against the tax imposed under s. 71.02 or 71.08, as allocated under par. (d), an
5amount equal to 10 percent of the amount obtained by subtracting from the
6individual's, partnership's, tax-option corporation's, or limited liability company's
7qualified research expenses, as defined in section 41 of the Internal Revenue Code,
8except that "qualified research expenses" includes only expenses incurred by the
9individual, partnership, tax-option corporation, or limited liability company for
10research related to designing internal combustion engines for vehicles, including
11expenses related to designing vehicles that are powered by such engines and
12improving production processes for such engines and vehicles, incurred for research
13conducted in this state for the taxable year, except that a taxpayer may elect the
14alternative computation under section 41 (c) (4) of the Internal Revenue Code and
15that election applies until the department permits its revocation, except as provided
16in par. (c), and except that "qualified research expenses" does not include
17compensation used in computing the credit under subs. (2dj) and sub. (2dx), the
18entity's base amount, as defined in section 41 (c) of the Internal Revenue Code, except
19that gross receipts used in calculating the base amount means gross receipts from
20sales attributable to Wisconsin under ss. 71.04 (7) (b) 1. and 2., (df), (dh), (dj), and
21(dk). Section 41 (h) of the Internal Revenue Code does not apply to the credit under
22this subdivision.
SB21-SSA1,2186 23Section 2186. 71.07 (4k) (b) 3. of the statutes is amended to read:
SB21-SSA1,673,2024 71.07 (4k) (b) 3. For taxable years beginning after December 31, 2012, and
25before January 1, 2015,
an individual, a partner of a partnership, a shareholder of

1a tax-option corporation, or a member of a limited liability company may claim a
2credit against the tax imposed under s. 71.02 or 71.08, as allocated under par. (d), an
3amount equal to 10 percent of the amount obtained by subtracting from the
4individual's, partnership's, tax-option corporation's, or limited liability company's
5qualified research expenses, as defined in section 41 of the Internal Revenue Code,
6except that "qualified research expenses" includes only expenses incurred by the
7individual, partnership, tax-option corporation, or limited liability company for
8research related to the design and manufacturing of energy efficient lighting
9systems, building automation and control systems, or automotive batteries for use
10in hybrid-electric vehicles, that reduce the demand for natural gas or electricity or
11improve the efficiency of its use, incurred for research conducted in this state for the
12taxable year, except that a taxpayer may elect the alternative computation under
13section 41 (c) (4) of the Internal Revenue Code and that election applies until the
14department permits its revocation, except as provided in par. (c), and except that
15"qualified research expenses" does not include compensation used in computing the
16credit under subs. (2dj) and sub. (2dx), the entity's base amount, as defined in section
1741 (c) of the Internal Revenue Code, except that gross receipts used in calculating the
18base amount means gross receipts from sales attributable to Wisconsin under ss.
1971.04 (7) (b) 1. and 2., (df), (dh), (dj), and (dk). Section 41 (h) of the Internal Revenue
20Code does not apply to the credit under this subdivision.
SB21-SSA1,2186d 21Section 2186d. 71.07 (4k) (b) 4. of the statutes is created to read:
SB21-SSA1,674,1122 71.07 (4k) (b) 4. a. Except as provided in subds. 5. and 6., for taxable years
23beginning after December 31, 2014, an individual, a partner of a partnership, a
24shareholder of a tax-option corporation, or a member of a limited liability company
25may claim a credit against the tax imposed under s. 71.02 or 71.08, as allocated under

1par. (d), an amount equal to 5.75 percent of the amount by which the individual's,
2partnership's, tax-option corporation's, or limited liability company's qualified
3research expenses for the taxable year exceed 50 percent of the average qualified
4research expenses for the 3 taxable years immediately preceding the taxable year for
5which the claimant claims the credit. If the individual, partnership, tax-option
6corporation, or limited liability company had no qualified research expenses in any
7of the 3 taxable years immediately preceding the taxable year for which the claimant
8claims the credit, the claimant may claim an amount equal to 2.875 percent of the
9individual's, partnership's, tax-option corporation's, or limited liability company's
10qualified research expenses for the taxable year for which the claimant claims the
11credit.
SB21-SSA1,674,1912 b. For purposes of subd. 4. a. "qualified research expenses" means qualified
13research expenses as defined in section 41 of the Internal Revenue Code, except that
14"qualified research expenses" includes only expenses incurred by the individual,
15partnership, tax-option corporation, or the limited liability company, incurred for
16research conducted in this state for the taxable year and does not include
17compensation used in computing the credit under sub. (2dx). Section 41 (f) (1), (2),
18(5), and (6) and (h) of the Internal Revenue Code does not apply to the credit under
19this subdivision.
SB21-SSA1,2186e 20Section 2186e. 71.07 (4k) (b) 5. of the statutes is created to read:
SB21-SSA1,675,921 71.07 (4k) (b) 5. a. For taxable years beginning after December 31, 2014, an
22individual, a partner of a partnership, a shareholder of a tax-option corporation, or
23a member of a limited liability company may claim a credit against the tax imposed
24under s. 71.02 or 71.08, as allocated under par. (d), an amount equal to 11.5 percent
25of the amount by which the individual's, partnership's, tax-option corporation's, or

1limited liability company's qualified research expenses for the taxable year exceed
250 percent of the average qualified research expenses for the 3 taxable years
3immediately preceding the taxable year for which the claimant claims the credit. If
4the individual, partnership, tax-option corporation, or limited liability company had
5no qualified research expenses in any of the 3 taxable years immediately preceding
6the taxable year for which the claimant claims the credit, the claimant may claim an
7amount equal to 5.75 percent of the individual's, partnership's, tax-option
8corporation's, or limited liability company's qualified research expenses for the
9taxable year for which the claimant claims the credit.
SB21-SSA1,675,1910 b. For purposes of subd. 5. a., "qualified research expenses" means qualified
11research expenses as defined in section 41 of the Internal Revenue Code, except that
12"qualified research expenses" includes only expenses incurred by the individual,
13partnership, tax-option corporation, or limited liability company for research
14related to designing internal combustion engines for vehicles, including expenses
15related to designing vehicles that are powered by such engines and improving
16production processes for such engines and vehicles, incurred for research conducted
17in this state for the taxable year and does not include compensation used in
18computing the credit under sub. (2dx). Section 41 (f) (1), (2), (5), and (6) and (h) of
19the Internal Revenue Code does not apply to the credit under this subdivision.
Loading...
Loading...