AB64-ASA1,619,206 71.07 (4k) (b) 4. a. Except as provided in subds. 5. and 6., for taxable years
7beginning after December 31, 2014, an individual, a partner of a partnership, a
8shareholder of a tax-option corporation, or a member of a limited liability company
9may claim a credit against the tax imposed under s. 71.02 or 71.08, as allocated under
10par. (d), an amount equal to 5.75 percent of the amount by which the individual's,
11partnership's, tax-option corporation's, or limited liability company's qualified
12research expenses for the taxable year exceed 50 percent of the average qualified
13research expenses for the 3 taxable years immediately preceding the taxable year for
14which the claimant claims the credit. If the individual, partnership, tax-option
15corporation, or limited liability company had no qualified research expenses in any
16of the 3 taxable years immediately preceding the taxable year for which the claimant
17claims the credit, the claimant may claim an amount equal to 2.875 percent of the
18individual's, partnership's, tax-option corporation's, or limited liability company's
19qualified research expenses for the taxable year for which the claimant claims the
20credit.
AB64-ASA1,1038p 21Section 1038p. 71.07 (4k) (b) 5. a. of the statutes is amended to read:
AB64-ASA1,620,1022 71.07 (4k) (b) 5. a. For taxable years beginning after December 31, 2014, an
23individual, a partner of a partnership, a shareholder of a tax-option corporation, or
24a member of a limited liability company may claim a credit against the tax imposed
25under s. 71.02 or 71.08, as allocated under par. (d), an amount equal to 11.5 percent

1of the amount by which the individual's, partnership's, tax-option corporation's, or
2limited liability company's qualified research expenses for the taxable year exceed
350 percent of the average qualified research expenses for the 3 taxable years
4immediately preceding the taxable year for which the claimant claims the credit. If
5the individual, partnership, tax-option corporation, or limited liability company had
6no qualified research expenses in any of the 3 taxable years immediately preceding
7the taxable year for which the claimant claims the credit, the claimant may claim an
8amount equal to 5.75 percent of the individual's, partnership's, tax-option
9corporation's, or limited liability company's qualified research expenses for the
10taxable year for which the claimant claims the credit.
AB64-ASA1,1038r 11Section 1038r. 71.07 (4k) (b) 6. a. of the statutes is amended to read:
AB64-ASA1,620,2512 71.07 (4k) (b) 6. a. For taxable years beginning after December 31, 2014, an
13individual, a partner of a partnership, a shareholder of a tax-option corporation, or
14a member of a limited liability company may claim a credit against the tax imposed
15under s. 71.02 or 71.08, as allocated under par. (d), an amount equal to 11.5 percent
16of the amount by which the individual's, partnership's, tax-option corporation's, or
17limited liability company's qualified research expenses for the taxable year exceed
1850 percent of the average qualified research expenses for the 3 taxable years
19immediately preceding the taxable year for which the claimant claims the credit. If
20the individual, partnership, tax-option corporation, or limited liability company had
21no qualified research expenses in any of the 3 taxable years immediately preceding
22the taxable year for which the claimant claims the credit, the claimant may claim an
23amount equal to 5.75 percent of the individual's, partnership's, tax-option
24corporation's, or limited liability company's qualified research expenses for the
25taxable year for which the claimant claims the credit.
AB64-ASA1,1038s
1Section 1038s. 71.07 (4k) (e) of the statutes is renumbered 71.07 (4k) (e) 1. and
2amended to read:
AB64-ASA1,621,53 71.07 (4k) (e) 1. Section For taxable years beginning before January 1, 2018,
4s.
71.28 (4) (b) to (h), as it applies to the credit under s. 71.28 (4), applies to the credits
5under this subsection.
AB64-ASA1,1038t 6Section 1038t. 71.07 (4k) (e) 2. of the statutes is created to read:
AB64-ASA1,621,117 71.07 (4k) (e) 2. For taxable years beginning after December 31, 2017, s. 71.28
8(4) (b) to (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the
9credits under this subsection. For taxable years beginning after December 31, 2017,
10if the allowable amount of the claim under par. (b) 4., 5., or 6. exceeds the tax
11otherwise due under s. 71.02 or 71.08, all of the following apply:
AB64-ASA1,621,1612 a. The amount of the claim not used to offset the tax due, not to exceed 10
13percent of the allowable amount of the claim under par. (b) 4., 5., or 6., shall be
14certified by the department of revenue to the department of administration for
15payment by check, share draft, or other draft drawn from the appropriation account
16under s. 20.835 (2) (d).
AB64-ASA1,621,2117 b. The amount of the claim not used to offset the tax due and not certified for
18payment under subd. 2. a. may be carried forward and credited against Wisconsin
19income taxes otherwise due for the following 15 taxable years to the extent not offset
20by these taxes otherwise due in all intervening years between the year in which the
21expense was incurred and the year in which the carry-forward credit is claimed.
AB64-ASA1,1039 22Section 1039 . 71.07 (5) (b) of the statutes is amended to read:
AB64-ASA1,622,223 71.07 (5) (b) Subtract the standard deduction under s. 71.05 (22),
24notwithstanding the limitation by such fraction of that amount as Wisconsin

1adjusted gross income is of federal adjusted gross income described in s. 71.05 (22)
2(g) and (h),
from the amount under par. (a).
AB64-ASA1,1040e 3Section 1040e. 71.07 (5b) (b) 1. of the statutes is amended to read:
AB64-ASA1,622,94 71.07 (5b) (b) 1. For taxable years beginning after December 31, 2004, subject
5to the limitations provided under this subsection and s. 238.15 or s. 560.205, 2009
6stats., and except as provided in subd. 2., a claimant may claim as a credit against
7the tax imposed under ss. s. 71.02 and 71.08, up to the amount of those taxes, 25
8percent of the claimant's investment paid to a fund manager that the fund manager
9invests in a business certified under s. 238.15 (1) or s. 560.205 (1), 2009 stats.
AB64-ASA1,1040g 10Section 1040g. 71.07 (5b) (d) 3. of the statutes is amended to read:
AB64-ASA1,622,1511 71.07 (5b) (d) 3. Except as provided under s. 238.15 (3) (d) (intro.), for
12investments made after December 31, 2007, if an investment for which a claimant
13claims a credit under par. (b) is held by the claimant for less than 3 years, the
14claimant shall pay to the department, in the manner prescribed by the department,
15the amount of the credit that the claimant received related to the investment.
AB64-ASA1,1040h 16Section 1040h. 71.07 (5d) (b) (intro.) of the statutes is amended to read:
AB64-ASA1,622,2017 71.07 (5d) (b) Filing claims. (intro.) Subject to the limitations provided in this
18subsection and in s. 238.15 or s. 560.205, 2009 stats., a claimant may claim as a credit
19against the tax imposed under s. 71.02 or 71.08, up to the amount of those taxes, the
20following:
AB64-ASA1,1040p 21Section 1040p. 71.07 (5d) (d) 1. of the statutes is amended to read:
AB64-ASA1,623,222 71.07 (5d) (d) 1. Except as provided under s. 238.15 (3) (d) (intro.), for
23investments made after December 31, 2007, if an investment for which a claimant
24claims a credit under par. (b) is held by the claimant for less than 3 years, the

1claimant shall pay to the department, in the manner prescribed by the department,
2the amount of the credit that the claimant received related to the investment.
AB64-ASA1,1041e 3Section 1041e. 71.07 (5m) (e) of the statutes is created to read:
AB64-ASA1,623,54 71.07 (5m) (e) Sunset. No credit may be claimed under this subsection for
5taxable years beginning after December 31, 2016.
AB64-ASA1,1041s 6Section 1041s. 71.07 (5n) (b) (intro.) of the statutes is amended to read:
AB64-ASA1,623,117 71.07 (5n) (b) Filing claims. (intro.) Subject to the limitations provided in this
8subsection, a claimant may claim as a credit against the tax imposed under ss. s.
971.02 and 71.08, up to the amount of the tax, an amount equal to one of the following
10percentages of the claimant's eligible qualified production activities income in the
11taxable year:
AB64-ASA1,1042 12Section 1042 . 71.07 (5n) (d) 3. of the statutes is created to read:
AB64-ASA1,623,1613 71.07 (5n) (d) 3. The amount of the eligible qualified production activities
14income that a claimant may claim in computing the credit under par. (b) shall be
15reduced by the amount of the qualified production activities income taxed by another
16state upon which the credit under sub. (7) is claimed.
AB64-ASA1,1043 17Section 1043 . 71.07 (5r) (a) 2. of the statutes is amended to read:
AB64-ASA1,623,1918 71.07 (5r) (a) 2. “Course of instruction" has the meaning given in s. 38.50 440.52
19(1) (c).
AB64-ASA1,1044 20Section 1044 . 71.07 (5r) (a) 6. b. of the statutes is amended to read:
AB64-ASA1,623,2221 71.07 (5r) (a) 6. b. A school approved under s. 38.50 440.52, if the delivery of
22education occurs in this state.
AB64-ASA1,1044p 23Section 1044p. 71.07 (7) (a) of the statutes is renumbered 71.07 (7) (a) (intro.)
24and amended to read:
AB64-ASA1,623,2525 71.07 (7) (a) (intro.) In this subsection, “ state":
AB64-ASA1,624,2
12. “State” includes the District of Columbia, but does not include the
2commonwealth of Puerto Rico or the several territories organized by Congress.
AB64-ASA1,1044r 3Section 1044r. 71.07 (7) (a) 1. of the statutes is created to read:
AB64-ASA1,624,64 71.07 (7) (a) 1. “Net Wisconsin income tax” means the gross Wisconsin income
5tax less all nonrefundable credits that may be claimed by that taxpayer, except the
6credit for taxes paid to other states.
AB64-ASA1,1044t 7Section 1044t. 71.07 (7) (b) of the statutes is amended to read:
AB64-ASA1,624,238 71.07 (7) (b) If Subject to conditions and limitations in pars. (c) and (d), if a
9resident individual, estate or trust pays a net income tax to another state, that
10resident individual, estate or trust may credit the net tax paid to that other state on
11that income against the net income tax otherwise payable to the state on income of
12the same year. The credit may not be allowed unless the income taxed by the other
13state is also considered income for Wisconsin tax purposes. The credit may not be
14allowed unless claimed within the time provided in s. 71.75 (2), but s. 71.75 (4) does
15not apply to those credits. For purposes of this paragraph, amounts declared and
16paid under the income tax law of another state are considered a net income tax paid
17to that other state only in the year in which the income tax return for that state was
18required to be filed. Income and franchise taxes paid to another state by a tax-option
19corporation, partnership, or limited liability company that is treated as a
20partnership may be claimed as a credit under this paragraph by that corporation's
21shareholders, that partnership's partners, or that limited liability company's
22members who are residents of this state and who otherwise qualify under this
23paragraph.
AB64-ASA1,1044u 24Section 1044u. 71.07 (7) (c) and (d) of the statutes are created to read:
AB64-ASA1,625,5
171.07 (7) (c) The credit may not exceed an amount determined by multiplying
2the taxpayer's net Wisconsin income tax by a ratio derived by dividing the income
3subject to tax in the other state that is also subject to tax in Wisconsin while the
4taxpayer is a resident of Wisconsin, by the taxpayer's Wisconsin adjusted gross
5income.
AB64-ASA1,625,76 (d) The limitation in par. (c) does not apply to income that is taxed by one of the
74 states that border this state.
AB64-ASA1,1050p 8Section 1050p. 71.07 (9m) (a) 2m. of the statutes is amended to read:
AB64-ASA1,625,159 71.07 (9m) (a) 2m. For taxable years beginning after December 31, 2013, any
10person may claim as a credit against taxes otherwise due under s. 71.02 or 71.08, up
11to the amount of those taxes, an amount equal to 20 percent of the costs of qualified
12rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue
13Code, for certified historic structures on property located in this state, if the cost of
14the person's qualified rehabilitation expenditures is at least $50,000 and the
15rehabilitated property is placed in service after December 31, 2013.
AB64-ASA1,1050r 16Section 1050r. 71.07 (9m) (a) 3. of the statutes is amended to read:
AB64-ASA1,626,517 71.07 (9m) (a) 3. For taxable years beginning after December 31, 2013, any
18person may claim as a credit against taxes otherwise due under s. 71.02 or 71.08, up
19to the amount of those taxes, an amount equal to 20 percent of the costs of qualified
20rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue
21Code, for qualified rehabilitated buildings, as defined in section 47 (c) (1) of the
22Internal Revenue Code, on property located in this state, if the cost of the person's
23qualified rehabilitation expenditures is at least $50,000 and the rehabilitated
24property is placed in service after December 31, 2013, and regardless of whether the
25rehabilitated property is used for multiple or revenue-producing purposes. No

1credit may be claimed under this subdivision for property listed as a contributing
2building in the state register of historic places or in the national register of historic
3places and no credit may be claimed under this subdivision for nonhistoric,
4nonresidential property converted into housing if the property has been previously
5used for housing.
AB64-ASA1,1050u 6Section 1050u. 71.07 (9m) (h) of the statutes is amended to read:
AB64-ASA1,626,127 71.07 (9m) (h) Any person, including a nonprofit entity described in section 501
8(c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under
9par. (a) 2m. or 3., in whole or in part, to another person who is subject to the taxes
10imposed under s. 71.02, 71.08, 71.23, or 71.43, if the person notifies the department
11of the transfer, and submits with the notification a copy of the transfer documents,
12and the department certifies ownership of the credit with each transfer.
AB64-ASA1,1051 13Section 1051 . 71.07 (9m) (i) of the statutes is created to read:
AB64-ASA1,626,1814 71.07 (9m) (i) If a person who claims a credit under this subsection and a credit
15under section 47 of the Internal Revenue Code for the same qualified rehabilitation
16expenditures is required to repay any amount of the credit claimed under section 47
17of the Internal Revenue Code, the person shall repay to the department a
18proportionate amount of the credit claimed under this subsection.
AB64-ASA1,1051g 19Section 1051g. 71.07 (9r) (a) of the statutes is amended to read:
AB64-ASA1,627,520 71.07 (9r) (a) For taxable years beginning on or after August 1, 1988, any
21natural person may credit against taxes otherwise due under s. 71.02 or 71.08 an
22amount equal to 25 percent of the costs of preservation or rehabilitation of historic
23property located in this state, including architectural fees and costs incurred in
24preparing nomination forms for listing in the national register of historic places in
25Wisconsin or the state register of historic places, if the nomination is made within

15 years prior to submission of a preservation or rehabilitation plan under par. (b) 3.
2b., and if the physical work of construction or destruction in preparation for
3construction begins after December 31, 1988, except that the credit may not exceed
4$10,000, or $5,000 for married persons filing separately, for any preservation or
5rehabilitation project.
AB64-ASA1,1052e 6Section 1052e. 71.08 (5) of the statutes is created to read:
AB64-ASA1,627,87 71.08 (5) Sunset. This section does not apply to taxable years beginning after
8December 31, 2016.
AB64-ASA1,1052k 9Section 1052k. 71.09 (1) (b) of the statutes is amended to read:
AB64-ASA1,627,1610 71.09 (1) (b) “Tax shown on the return" and “tax for the taxable year" mean the
11net tax imposed under s. 71.02 after reduction for exemptions to, and credits against,
12that tax but before reduction by amounts withheld under subch. X and before
13reduction for amounts paid as estimated tax under this section for that tax plus the
14tax imposed under s. 71.08 before reduction for amounts paid as estimated tax under
15this section for that tax
plus the surcharge imposed under s. 77.93 before reduction
16for amounts paid as estimated tax under this section for that surcharge.
AB64-ASA1,1052L 17Section 1052L. 71.09 (2) of the statutes is amended to read:
AB64-ASA1,628,618 71.09 (2) Who shall pay. Every individual, estate and trust deriving income
19subject to taxation under this chapter, other than wages as defined in s. 71.63 (6)
20upon which taxes are withheld by the individual's employer under subch. X, shall pay
21estimated income tax, and the surcharge under s. 77.93 and alternative minimum
22tax
. This section does not apply to any person on active duty with the U.S. armed
23forces while stationed outside the continental United States. This section does not
24apply to any taxable year ending before the date 2 years after the date of a decedent's
25death with respect to the estate of such decedent or any trust all of which is treated

1under subpart E of part I of subchapter J of chapter 1 of the internal revenue code
2as owned by the decedent and to which the residue of the decedent's estate will pass
3under his or her will. This section does not apply to any trust that is subject to tax
4under this chapter on unrelated business taxable income as defined under section
5512 of the internal revenue code. Those trusts are subject to estimated tax payments
6under s. 71.29.
AB64-ASA1,1052p 7Section 1052p. 71.09 (11) (b) of the statutes is amended to read:
AB64-ASA1,628,108 71.09 (11) (b) The preceding taxable year was 12 months, the taxpayer had no
9liability under s. 71.02 or 71.08 for that year and the taxpayer was a resident of this
10state for all of that year.
AB64-ASA1,1052u 11Section 1052u. 71.10 (4) (f) of the statutes is amended to read:
AB64-ASA1,628,1412 71.10 (4) (f) Alternative For taxable years beginning before January 1, 2017,
13alternative
minimum tax under s. 71.08, including any surtax on alternative
14minimum tax.
AB64-ASA1,1052w 15Section 1052w. 71.10 (4) (fr) of the statutes is amended to read:
AB64-ASA1,628,1716 71.10 (4) (fr) Research credit under s. 71.07 (4k) , except as provided under par.
17(i)
.
AB64-ASA1,1052y 18Section 1052y. 71.10 (4) (i) of the statutes is amended to read:
AB64-ASA1,629,719 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
20preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
21beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief
22credit under s. 71.07 (3m), dairy manufacturing facility investment credit under s.
2371.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment
24credit under s. 71.07 (3r), woody biomass harvesting and processing credit under s.
2571.07 (3rm), food processing plant and food warehouse investment credit under s.

171.07 (3rn), business development credit under s. 71.07 (3y), research credit under
2s. 71.07 (4k) (e) 2. a.,
film production services credit under s. 71.07 (5f), film
3production company investment credit under s. 71.07 (5h), veterans and surviving
4spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s.
571.07 (3w), beginning farmer and farm asset owner tax credit under s. 71.07 (8r),
6earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09,
7and taxes withheld under subch. X.
AB64-ASA1,1057d 8Section 1057d. 71.22 (1e) of the statutes is created to read:
AB64-ASA1,629,139 71.22 (1e) “Broadcaster" means a television or radio station licensed by the
10federal communications commission, a television or radio broadcast network, a cable
11television network, or a television distribution company. “Broadcaster" does not
12include a cable service provider, a direct broadcast satellite system, or an Internet
13content distributor.
AB64-ASA1,1058 14Section 1058 . 71.22 (4) (b) of the statutes is repealed.
AB64-ASA1,1059 15Section 1059 . 71.22 (4) (j) 1. of the statutes is amended to read:
AB64-ASA1,629,2016 71.22 (4) (j) 1. For taxable years beginning after December 31, 2013, and before
17January 1, 2017,
“Internal Revenue Code" means the federal Internal Revenue Code
18as amended to December 31, 2013, except as provided in subds. 2. and 3. and subject
19to subd. 4., and except as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34 (1g),
20and 71.42 (2).
AB64-ASA1,1060 21Section 1060 . 71.22 (4) (j) 3. i. of the statutes is created to read:
AB64-ASA1,629,2222 71.22 (4) (j) 3. i. Section 2004 of P.L. 114-41.
AB64-ASA1,1061 23Section 1061 . 71.22 (4) (j) 3. j. of the statutes is created to read:
AB64-ASA1,629,2424 71.22 (4) (j) 3. j. Sections 503 and 504 of P.L. 114-74.
AB64-ASA1,1062 25Section 1062 . 71.22 (4) (j) 3. k. of the statutes is created to read:
AB64-ASA1,630,2
171.22 (4) (j) 3. k. Sections 103, 104, 124, 168, 184, 185, 190, 204, 303, 306, 336,
2and 341 of division Q of P.L. 114-113.
AB64-ASA1,1063 3Section 1063 . 71.22 (4) (j) 3. L. of the statutes is created to read:
AB64-ASA1,630,44 71.22 (4) (j) 3. L. P.L. 114-239.
AB64-ASA1,1064 5Section 1064 . 71.22 (4) (k) of the statutes is created to read:
AB64-ASA1,630,96 71.22 (4) (k) 1. For taxable years beginning after December 31, 2016, “Internal
7Revenue Code" means the federal Internal Revenue Code as amended to December
831, 2016, except as provided in subds. 2. and 3. and subject to subd. 4., and except
9as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34 (1g), 71.42 (2), and 71.98.
AB64-ASA1,630,2410 2. For purposes of this paragraph, “Internal Revenue Code" does not include
11the following provisions of federal public laws for taxable years beginning after
12December 31, 2016: section 13113 of P.L 103-66; sections 1, 3, 4, and 5 of P.L.
13106-519; sections 101, 102, and 422 of P.L 108-357; sections 1310 and 1351 of P.L.
14109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of
15P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L.
16110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section
1715351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections
18312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251,
191501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L.
20111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L.
21111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and
22411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division
23P of P.L. 114-113; and sections 112, 123, 125 to 128, 143, 144, 151 to 153, 165 to 167,
24169 to 171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113.
AB64-ASA1,631,2
13. For purposes of this paragraph, “Internal Revenue Code" does not include
2amendments to the federal Internal Revenue Code enacted after December 31, 2016.
AB64-ASA1,631,93 4. For purposes of this paragraph, the provisions of federal public laws that
4directly or indirectly affect the Internal Revenue Code, as defined in this paragraph,
5apply for Wisconsin purposes at the same time as for federal purposes, except that
6changes made by section 4007 (b) of P.L. 114-41, section 1102 of P.L. 114-74, sections
7105, 111, 113 to 115, 133, 301, 302, 304, 305, 308, 311, 313 to 323, 325, 331, and 343
8to 345 of division Q of P.L. 114-113 first apply for taxable years beginning after
9December 31, 2016.
AB64-ASA1,1065 10Section 1065 . 71.22 (4m) (b) of the statutes is repealed.
AB64-ASA1,1066 11Section 1066 . 71.22 (4m) (j) 1. of the statutes is amended to read:
AB64-ASA1,631,1612 71.22 (4m) (j) 1. For taxable years beginning after December 31, 2013, and
13before January 1, 2017,
“Internal Revenue Code", for corporations that are subject
14to a tax on unrelated business income under s. 71.26 (1) (a), means the federal
15Internal Revenue Code as amended to December 31, 2013, except as provided in
16subds. 2. and 3. and subject to subd. 4.
AB64-ASA1,1067 17Section 1067 . 71.22 (4m) (j) 3. i. of the statutes is created to read:
AB64-ASA1,631,1818 71.22 (4m) (j) 3. i. Section 2004 of P.L. 114-41.
AB64-ASA1,1068 19Section 1068 . 71.22 (4m) (j) 3. j. of the statutes is created to read:
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