AB100-engrossed,1097,135 (b) The tax imposed under s. 71.02 shall be reduced by an amount equal to the
6sales and use tax under ch. 77 paid by the person in such taxable year on fuel and
7electricity consumed in manufacturing tangible personal property in this state.
8Shareholders in a tax-option corporation and partners may claim the credit under
9this subsection, based on eligible sales and use taxes paid by the partnership or
10tax-option corporation, in proportion to the ownership interest of each partner or
11shareholder. The partnership or tax-option corporation shall calculate the amount
12of the credit which may be claimed by each partner or shareholder and shall provide
13that information to the partner or shareholder.
AB100-engrossed,1097,2114 (c) 1. The credit under par. (b), including any credits carried over, may be offset
15only against the amount of the tax imposed upon or measured by the business
16operations of the claimant in which the fuel and electricity are consumed. If the
17credit computed is not entirely offset against taxes otherwise due, the unused
18balance shall be carried forward and credited against taxes otherwise due for the
19following 15 taxable years to the extent not offset by taxes otherwise due in all
20intervening years between the year in which the expense was incurred and the year
21in which the carry-forward credit is claimed.
AB100-engrossed,1097,2422 2. For shareholders in a tax-option corporation, the credit may be offset only
23against the tax imposed on the shareholder's prorated share of the tax-option
24corporation's income.
AB100-engrossed,1098,2
13. For partners, the credit may be offset only against the tax imposed on the
2partner's distributive share of partnership income.
AB100-engrossed,1098,53 4. If a tax-option corporation becomes liable for tax, the corporation may offset
4the credit against the tax due, with any remaining credit passing through to the
5shareholders.
AB100-engrossed,1098,96 5. If a corporation that is not a tax-option corporation has a carry-over credit
7and becomes a tax-option corporation before the credit carried over is used, the
8unused portion of the credit may be used by the tax-option corporation's
9shareholders on a prorated basis.
AB100-engrossed,1098,1410 6. If the shareholders of a tax-option corporation have carry-over credits and
11the corporation becomes a corporation other than a tax-option corporation after the
12effective date of this subdivision .... [revisor inserts date], and before the credits
13carried over are used, the unused portion of the credits may be used by the
14corporation that is not a tax-option corporation.
AB100-engrossed, s. 2262n 15Section 2262n. 71.07 (5) (a) 7. of the statutes is repealed.
AB100-engrossed, s. 2262nm 16Section 2262nm. 71.07 (5) (a) 15. of the statutes is amended to read:
AB100-engrossed,1098,2217 71.07 (5) (a) 15. The amount claimed as a deduction for medical care insurance
18under section 213 of the internal revenue code Internal Revenue Code that is exempt
19from taxation under s. 71.05 (6) (b) 17. to 20. and the amount claimed as a deduction
20for a long-term care insurance policy under section 213 (d) (1) (D) of the Internal
21Revenue Code, as defined in section 7702B (b) of the Internal Revenue Code that is
22exempt from taxation under s. 71.05 (6) (b) 26
.
AB100-engrossed, s. 2262np 23Section 2262np. 71.07 (5m) of the statutes is created to read:
AB100-engrossed,1098,2424 71.07 (5m) Working families tax credit. (a) Definitions. In this subsection:
AB100-engrossed,1099,2
11. "Claimant" means an individual who is eligible to claim the credit under this
2subsection.
AB100-engrossed,1099,33 2. "Department" means the department of revenue.
AB100-engrossed,1099,54 3. "Household" means a claimant and an individual related to the claimant as
5husband or wife.
AB100-engrossed,1099,76 4. "Net tax liability" means a claimant's income tax liability after he or she
7completes the computations listed in s. 71.10 (4) (a) to (dr).
AB100-engrossed,1099,108 (b) Filing claims. Subject to the limitations provided in this subsection, a
9claimant may claim as a credit against the tax imposed under s. 71.02, up to the
10amount of those taxes, one of the following amounts:
AB100-engrossed,1099,1311 1. If the claimant is single and his or her adjusted gross income is less than
12$9,000 in the year to which the claim relates, an amount equal to his or her net tax
13liability.
AB100-engrossed,1099,1614 2. If the claimant is single and his or her adjusted gross income is at least $9,000
15but less than $10,000 in the year to which the claim relates, an amount that is
16calculated as follows:
AB100-engrossed,1099,1917 a. Calculate the value of a fraction, the denominator of which is $1,000 and the
18numerator of which is the difference between the claimant's adjusted gross income
19and $9,000.
AB100-engrossed,1099,2020 b. Subtract from 1.0 the amount that is calculated under subd. 2. a.
AB100-engrossed,1099,2221 c. Multiply the amount of the claimant's net income tax liability by the amount
22that is calculated under subd. 2. b.
AB100-engrossed,1100,223 3. If the claimant is married and filing jointly and the sum of the claimant's
24adjusted gross income and his or her spouse's adjusted gross income is less than

1$18,000 in the year to which the claim relates, an amount equal to the married
2couple's net tax liability.
AB100-engrossed,1100,63 4. If the claimant is married and filing jointly and the sum of the claimant's
4adjusted gross income and his or her spouse's adjusted gross income is at least
5$18,000 but less than $19,000 in the year to which the claim relates, an amount that
6is calculated as follows:
AB100-engrossed,1100,97 a. Calculate the value of a fraction, the denominator of which is $1,000 and the
8numerator of which is the difference between the married couple's adjusted gross
9income and $18,000.
AB100-engrossed,1100,1010 b. Subtract from 1.0 the amount that is calculated under subd. 4. a.
AB100-engrossed,1100,1211 c. Multiply the amount of the married couple's net income tax liability by the
12amount that is calculated under subd. 4. b.
AB100-engrossed,1100,1513 5. If the claimant is married and filing separately and his or her adjusted gross
14income is less than $9,000 in the year to which the claim relates, an amount equal
15to his or her net tax liability.
AB100-engrossed,1100,1816 6. If the claimant is married and filing separately and his or her adjusted gross
17income is at least $9,000 but less than $10,000 in the year to which the claim relates,
18an amount that is calculated as follows:
AB100-engrossed,1100,2119 a. Calculate the value of a fraction, the denominator of which is $1,000 and the
20numerator of which is the difference between the claimant's adjusted gross income
21and $9,000.
AB100-engrossed,1100,2222 b. Subtract from 1.0 the amount that is calculated under subd. 6. a.
AB100-engrossed,1100,2423 c. Multiply the amount of the claimant's net income tax liability by the amount
24that is calculated under subd. 6. b.
AB100-engrossed,1101,2
1(c) Limitations. 1. No credit may be allowed under this subsection unless it
2is claimed within the time period under s. 71.75 (2).
AB100-engrossed,1101,43 2. Part-year residents and nonresidents of this state are not eligible for the
4credit under this subsection.
AB100-engrossed,1101,65 3. Except as provided in subd. 4., only one credit per household is allowed each
6year.
AB100-engrossed,1101,107 4. If a married couple files separately, each spouse may claim the credit
8calculated under par. (b) 5. or 6., except a married person living apart from the other
9spouse and treated as single under section 7703 (b) of the Internal Revenue Code may
10claim the credit under par. (b) 1. or 2.
AB100-engrossed,1101,1211 5. The credit under this subsection may not be claimed by a person who may
12be claimed as a dependent on the individual income tax return of another taxpayer.
AB100-engrossed,1101,1713 (d) Administration. The department of revenue may enforce the credit under
14this subsection and may take any action, conduct any proceeding and proceed as it
15is authorized in respect to taxes under this chapter. The income tax provisions in this
16chapter relating to assessments, refunds, appeals, collection, interest and penalties
17apply to the credit under this subsection.
AB100-engrossed, s. 2262ns 18Section 2262ns. 71.07 (6) (a) of the statutes is amended to read:
AB100-engrossed,1102,919 71.07 (6) (a) Married For taxable years beginning before January 1, 1998,
20married
persons filing a joint return, except those who reduce their gross income
21under section 911 or 931 of the internal revenue code, may claim as a credit against,
22but not to exceed the amount of, Wisconsin net income taxes otherwise due an
23amount equal to 2% of the earned income of the spouse with the lower earned income,
24but not more than $300. In this paragraph, "earned income" means qualified earned
25income, as defined in section 221 (b) of the internal revenue code as amended to

1December 31, 1985, plus employe business expenses under section 62 (2) (B) to (D)
2of that code, allocable to Wisconsin under s. 71.04, plus amounts received by the
3individual for services performed in the employ of the individual's spouse minus the
4amount of disability income excluded under s. 71.05 (6) (b) 4. and minus any other
5amount not subject to tax under this chapter. Earned income is computed
6notwithstanding the fact that each spouse owns an undivided one-half interest in
7the whole of the marital property. A marital property agreement or unilateral
8statement under ch. 766 transferring income between spouses has no effect in
9computing earned income under this paragraph.
AB100-engrossed, s. 2262nt 10Section 2262nt. 71.07 (6) (am) of the statutes is created to read:
AB100-engrossed,1102,2111 71.07 (6) (am) 1. In this paragraph, "earned income" means qualified earned
12income, as defined in section 221 (b) of the internal revenue code as amended to
13December 31, 1985, plus employe business expenses under section 62 (2) (B) to (D)
14of that code, allocable to Wisconsin under s. 71.04, plus amounts received by the
15individual for services performed in the employ of the individual's spouse minus the
16amount of disability income excluded under s. 71.05 (6) (b) 4. and minus any other
17amount not subject to tax under this chapter. Earned income is computed
18notwithstanding the fact that each spouse owns an undivided one-half interest in
19the whole of the marital property. A marital property agreement or unilateral
20statement under ch. 766 transferring income between spouses has no effect in
21computing earned income under this paragraph.
AB100-engrossed,1102,2522 2. Married persons filing a joint return, except those who reduce their gross
23income under section 911 or 931 of the Internal Revenue Code, may claim as a credit
24against the tax imposed under s. 71.02, up to the amount of those taxes, an amount
25equal to one of the following:
AB100-engrossed,1103,3
1a. For taxable years beginning after December 31, 1997, and before January
21, 1999, 2.17% of the earned income of the spouse with the lower earned income, but
3not more than $304.
AB100-engrossed,1103,64 b. For taxable years beginning after December 31, 1998, and before January
51, 2000, 2.5% of the earned income of the spouse with the lower earned income, but
6not more than $350.
AB100-engrossed,1103,97 c. For taxable years beginning after December 31, 1999, and before January
81, 2001, 2.75% of the earned income of the spouse with the lower earned income, but
9not more than $385.
AB100-engrossed,1103,1110 d. For taxable years beginning after December 31, 2000, 3% of the earned
11income of the spouse with the lower earned income, but not more than $420.
AB100-engrossed, s. 2262nu 12Section 2262nu. 71.07 (6) (b) of the statutes is amended to read:
AB100-engrossed,1103,1513 71.07 (6) (b) A claimant who has filed a timely claim under par. (a) this
14subsection
may file an amended claim with the department of revenue within 4 years
15of the last day prescribed by law for filing the original claim.
AB100-engrossed, s. 2262p 16Section 2262p. 71.07 (8) (a) of the statutes is renumbered 71.07 (8) (a) (intro.)
17and amended to read:
AB100-engrossed,1103,2018 71.07 (8) (a) (intro.) An exemption of $25 one of the following amounts if the
19taxpayer has reached the age of 65 prior to the close of the calendar or fiscal year. and
20if one of the following applies:
AB100-engrossed, s. 2262q 21Section 2262q. 71.07 (8) (a) 1. to 6. of the statutes are created to read:
AB100-engrossed,1103,2422 71.07 (8) (a) 1. If the taxpayer is an individual, the taxpayer files an individual
23return, and has adjusted gross income of less than $30,000 in the year to which the
24claim relates, $25.
AB100-engrossed,1104,4
12. If the taxpayer is an individual, the taxpayer files an individual return, and
2has adjusted gross income of at least $30,000 but less than $31,000 in the year to
3which the claim relates, the amount obtained by subtracting from $25 2.5% of the
4amount by which the taxpayer's adjusted gross income exceeds $30,000.
AB100-engrossed,1104,65 3. If the taxpayer is married, the taxpayer files a joint return, and has adjusted
6gross income of less than $40,000 in the year to which the claim relates, $25.
AB100-engrossed,1104,107 4. If the taxpayer is married, the taxpayer files a joint return, and has adjusted
8gross income of at least $40,000 but less than $41,000 in the year to which the claim
9relates, the amount obtained by subtracting from $25 2.5% of the amount by which
10the taxpayer's adjusted gross income exceeds $40,000.
AB100-engrossed,1104,1211 5. If the taxpayer is married, the taxpayer files a separate return, and has
12adjusted gross income of less than $20,000 in the year to which the claim relates, $25.
AB100-engrossed,1104,1613 6. If the taxpayer is married, the taxpayer files a separate return and has
14adjusted gross income of at least $20,000 but less than $21,000 in the year to which
15the claim relates, the amount obtained by subtracting from $25 2.5% of the amount
16by which the taxpayer's adjusted gross income exceeds $20,000.
AB100-engrossed, s. 2262r 17Section 2262r. 71.07 (9m) (a) of the statutes is amended to read:
AB100-engrossed,1104,2418 71.07 (9m) (a) Any person may credit against taxes otherwise due under this
19chapter, up to the amount of those taxes, an amount equal to 5% of the costs of
20qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the internal
21revenue code, for certified historic structures on property located in this state if the
22physical work of construction or destruction in preparation for construction begins
23after December 31, 1988, and the rehabilitated property is placed in service after
24June 30, 1989
.
AB100-engrossed, s. 2262s 25Section 2262s. 71.07 (10) (a) of the statutes is repealed.
AB100-engrossed, s. 2262t
1Section 2262t. 71.07 (10) (b) of the statutes is renumbered 71.07 (10).
AB100-engrossed, s. 2263 2Section 2263. 71.08 (1) (intro.) of the statutes is amended to read:
AB100-engrossed,1105,103 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married
4couple filing jointly, trust or estate under s. 71.02, not considering the credits under
5ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3m), (6) and (9e),
671.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd) and (2m) and 71.47 (1dd),
7(1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd) and (2m) and subchs. VIII and IX and
8payments to other states under s. 71.07 (7), is less than the tax under this section,
9there is imposed on that natural person, married couple filing jointly, trust or estate,
10instead of the tax under s. 71.02, an alternative minimum tax computed as follows:
AB100-engrossed, s. 2264 11Section 2264. 71.09 (6) of the statutes is repealed.
AB100-engrossed, s. 2264m 12Section 2264m. 71.10 (4) (de) of the statutes is created to read:
AB100-engrossed,1105,1313 71.10 (4) (de) The manufacturing sales tax credit under s. 71.07 (3s).
AB100-engrossed, s. 2264s 14Section 2264s. 71.10 (4) (du) of the statutes is created to read:
AB100-engrossed,1105,1515 71.10 (4) (du) Working families tax credit under s. 71.07 (5m).
AB100-engrossed, s. 2265 16Section 2265. 71.10 (4) (gu) of the statutes is created to read:
AB100-engrossed,1105,1717 71.10 (4) (gu) Development zones credit under s. 71.07 (2dx).
AB100-engrossed, s. 2265m 18Section 2265m. 71.10 (4) (j) of the statutes is amended to read:
AB100-engrossed,1105,2019 71.10 (4) (j) Any amount of money or other assets computed under s. 71.83 (1)
20(c).
AB100-engrossed, s. 2266 21Section 2266. 71.10 (5) (a) 2. of the statutes is amended to read:
AB100-engrossed,1106,522 71.10 (5) (a) 2. "Endangered resources program" means purchasing or
23improving land or habitats for any native Wisconsin endangered or threatened
24species as defined in s. 29.415 (2) (a) or (b) or for any nongame species as defined in
25s. 29.01 (10), conducting the natural heritage inventory program under s. 23.27 (3),

1conducting wildlife and resource research and surveys and providing wildlife
2management services, providing for wildlife damage control or the payment of claims
3for damage associated with endangered or threatened species, repaying the general
4fund for amounts expended under s. 20.370 (1) (fb) in fiscal year 1983-84 and the
5payment of administrative expenses related to the administration of this subsection.
AB100-engrossed, s. 2266c 6Section 2266c. 71.122 of the statutes is created to read:
AB100-engrossed,1106,9 771.122 Definition. In this subchapter, "Wisconsin taxable income" means
8federal taxable income, as defined in s. 71.01 (4), as modified under s. 71.05 (6) to (12),
9(19) and (20).
AB100-engrossed, s. 2266g 10Section 2266g. 71.125 of the statutes is renumbered 71.125 (1) and amended
11to read:
AB100-engrossed,1106,1512 71.125 (1) The Except as provided in sub. (2), the tax imposed by this chapter
13on individuals and the rates under s. 71.06 (1), (1m) and (2) shall apply to the
14Wisconsin taxable income of estates or trusts, except nuclear decommissioning trust
15or reserve funds, and that tax shall be paid by the fiduciary.
AB100-engrossed, s. 2266h 16Section 2266h. 71.125 (2) of the statutes is created to read:
AB100-engrossed,1106,2017 71.125 (2) Each electing small business trust, as defined in section 1361 (e) (1)
18of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1)
19or under s. 71.06 (1m), whichever taxable year is applicable, on its Wisconsin taxable
20income.
AB100-engrossed, s. 2266k 21Section 2266k. 71.195 of the statutes is created to read:
AB100-engrossed,1106,25 2271.195 Definition. In this subchapter, "partnership" includes limited liability
23companies and other entities that are treated as partnerships under the Internal
24Revenue Code, and "partnership" does not include publicly traded partnerships
25treated as corporations under s. 71.22 (1).
AB100-engrossed, s. 2266m
1Section 2266m. 71.20 (1) of the statutes is amended to read:
AB100-engrossed,1107,132 71.20 (1) Every partnership, except publicly traded partnerships treated as
3corporations under s. 71.22 (1), and every limited liability company, except limited
4liability companies treated as corporations under s. 71.22 (1),
shall furnish to the
5department a true and accurate statement, on or before April 15 of each year, except
6that returns for fiscal years ending on some other date than December 31 shall be
7furnished on or before the 15th day of the 4th month following the close of such fiscal
8year, in such manner and form and setting forth such facts as the department deems
9necessary to enforce this chapter. A partnership that is the owner of a single-owner
10entity that is disregarded as a separate entity under section 7701 of the Internal
11Revenue Code shall include that entity's information on the owner's return under
12this subchapter.
The statement shall be subscribed by one of the members of the
13partnership or limited liability company.
AB100-engrossed, s. 2266r 14Section 2266r. 71.21 (1) of the statutes is amended to read:
AB100-engrossed,1107,1915 71.21 (1) The net income of a partnership, except publicly traded partnerships
16treated as corporations under s. 71.22 (1), and of a limited liability company, except
17limited liability companies treated as corporations under s. 71.22 (1),
shall be
18computed in the same manner and on the same basis as provided for computation
19of the income of persons other than corporations.
AB100-engrossed, s. 2266t 20Section 2266t. 71.21 (2) of the statutes is amended to read:
AB100-engrossed,1107,2221 71.21 (2) The standard deduction shall not be allowed in computing the taxable
22income of a partnership or of a limited liability company.
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