AB100: Bill Text Engrossed

AB100-engrossed,1097,13 (b) The tax imposed under s. 71.02 shall be reduced by an amount equal to the sales and use tax under ch. 77 paid by the person in such taxable year on fuel and electricity consumed in manufacturing tangible personal property in this state. Shareholders in a tax-option corporation and partners may claim the credit under this subsection, based on eligible sales and use taxes paid by the partnership or tax-option corporation, in proportion to the ownership interest of each partner or shareholder. The partnership or tax-option corporation shall calculate the amount of the credit which may be claimed by each partner or shareholder and shall provide that information to the partner or shareholder.

AB100-engrossed,1097,21 (c) 1. The credit under par. (b), including any credits carried over, may be offset only against the amount of the tax imposed upon or measured by the business operations of the claimant in which the fuel and electricity are consumed. If the credit computed is not entirely offset against taxes otherwise due, the unused balance shall be carried forward and credited against taxes otherwise due for the following 15 taxable years to the extent not offset by taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.

AB100-engrossed,1097,24 2. For shareholders in a tax-option corporation, the credit may be offset only against the tax imposed on the shareholder's prorated share of the tax-option corporation's income.

AB100-engrossed,1098,2 3. For partners, the credit may be offset only against the tax imposed on the partner's distributive share of partnership income.

AB100-engrossed,1098,5 4. If a tax-option corporation becomes liable for tax, the corporation may offset the credit against the tax due, with any remaining credit passing through to the shareholders.

AB100-engrossed,1098,9 5. If a corporation that is not a tax-option corporation has a carry-over credit and becomes a tax-option corporation before the credit carried over is used, the unused portion of the credit may be used by the tax-option corporation's shareholders on a prorated basis.

AB100-engrossed,1098,14 6. If the shareholders of a tax-option corporation have carry-over credits and the corporation becomes a corporation other than a tax-option corporation after the effective date of this subdivision .... [revisor inserts date], and before the credits carried over are used, the unused portion of the credits may be used by the corporation that is not a tax-option corporation.

AB100-engrossed, s. 2262n Section 2262n. 71.07 (5) (a) 7. of the statutes is repealed.

AB100-engrossed, s. 2262nm Section 2262nm. 71.07 (5) (a) 15. of the statutes is amended to read:

AB100-engrossed,1098,22 71.07 (5) (a) 15. The amount claimed as a deduction for medical care insurance under section 213 of the internal revenue code Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 17. to 20. and the amount claimed as a deduction for a long-term care insurance policy under section 213 (d) (1) (D) of the Internal Revenue Code, as defined in section 7702B (b) of the Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 26.

AB100-engrossed, s. 2262np Section 2262np. 71.07 (5m) of the statutes is created to read:

AB100-engrossed,1098,24 71.07 (5m) Working families tax credit. (a) Definitions. In this subsection:

AB100-engrossed,1099,2 1. "Claimant" means an individual who is eligible to claim the credit under this subsection.

AB100-engrossed,1099,3 2. "Department" means the department of revenue.

AB100-engrossed,1099,5 3. "Household" means a claimant and an individual related to the claimant as husband or wife.

AB100-engrossed,1099,7 4. "Net tax liability" means a claimant's income tax liability after he or she completes the computations listed in s. 71.10 (4) (a) to (dr).

AB100-engrossed,1099,10 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, one of the following amounts:

AB100-engrossed,1099,13 1. If the claimant is single and his or her adjusted gross income is less than $9,000 in the year to which the claim relates, an amount equal to his or her net tax liability.

AB100-engrossed,1099,16 2. If the claimant is single and his or her adjusted gross income is at least $9,000 but less than $10,000 in the year to which the claim relates, an amount that is calculated as follows:

AB100-engrossed,1099,19 a. Calculate the value of a fraction, the denominator of which is $1,000 and the numerator of which is the difference between the claimant's adjusted gross income and $9,000.

AB100-engrossed,1099,20 b. Subtract from 1.0 the amount that is calculated under subd. 2. a.

AB100-engrossed,1099,22 c. Multiply the amount of the claimant's net income tax liability by the amount that is calculated under subd. 2. b.

AB100-engrossed,1100,2 3. If the claimant is married and filing jointly and the sum of the claimant's adjusted gross income and his or her spouse's adjusted gross income is less than $18,000 in the year to which the claim relates, an amount equal to the married couple's net tax liability.

AB100-engrossed,1100,6 4. If the claimant is married and filing jointly and the sum of the claimant's adjusted gross income and his or her spouse's adjusted gross income is at least $18,000 but less than $19,000 in the year to which the claim relates, an amount that is calculated as follows:

AB100-engrossed,1100,9 a. Calculate the value of a fraction, the denominator of which is $1,000 and the numerator of which is the difference between the married couple's adjusted gross income and $18,000.

AB100-engrossed,1100,10 b. Subtract from 1.0 the amount that is calculated under subd. 4. a.

AB100-engrossed,1100,12 c. Multiply the amount of the married couple's net income tax liability by the amount that is calculated under subd. 4. b.

AB100-engrossed,1100,15 5. If the claimant is married and filing separately and his or her adjusted gross income is less than $9,000 in the year to which the claim relates, an amount equal to his or her net tax liability.

AB100-engrossed,1100,18 6. If the claimant is married and filing separately and his or her adjusted gross income is at least $9,000 but less than $10,000 in the year to which the claim relates, an amount that is calculated as follows:

AB100-engrossed,1100,21 a. Calculate the value of a fraction, the denominator of which is $1,000 and the numerator of which is the difference between the claimant's adjusted gross income and $9,000.

AB100-engrossed,1100,22 b. Subtract from 1.0 the amount that is calculated under subd. 6. a.

AB100-engrossed,1100,24 c. Multiply the amount of the claimant's net income tax liability by the amount that is calculated under subd. 6. b.

AB100-engrossed,1101,2 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

AB100-engrossed,1101,4 2. Part-year residents and nonresidents of this state are not eligible for the credit under this subsection.

AB100-engrossed,1101,6 3. Except as provided in subd. 4., only one credit per household is allowed each year.

AB100-engrossed,1101,10 4. If a married couple files separately, each spouse may claim the credit calculated under par. (b) 5. or 6., except a married person living apart from the other spouse and treated as single under section 7703 (b) of the Internal Revenue Code may claim the credit under par. (b) 1. or 2.

AB100-engrossed,1101,12 5. The credit under this subsection may not be claimed by a person who may be claimed as a dependent on the individual income tax return of another taxpayer.

AB100-engrossed,1101,17 (d) Administration. The department of revenue may enforce the credit under this subsection and may take any action, conduct any proceeding and proceed as it is authorized in respect to taxes under this chapter. The income tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest and penalties apply to the credit under this subsection.

AB100-engrossed, s. 2262ns Section 2262ns. 71.07 (6) (a) of the statutes is amended to read:

AB100-engrossed,1102,9 71.07 (6) (a) Married For taxable years beginning before January 1, 1998, married persons filing a joint return, except those who reduce their gross income under section 911 or 931 of the internal revenue code, may claim as a credit against, but not to exceed the amount of, Wisconsin net income taxes otherwise due an amount equal to 2% of the earned income of the spouse with the lower earned income, but not more than $300. In this paragraph, "earned income" means qualified earned income, as defined in section 221 (b) of the internal revenue code as amended to December 31, 1985, plus employe business expenses under section 62 (2) (B) to (D) of that code, allocable to Wisconsin under s. 71.04, plus amounts received by the individual for services performed in the employ of the individual's spouse minus the amount of disability income excluded under s. 71.05 (6) (b) 4. and minus any other amount not subject to tax under this chapter. Earned income is computed notwithstanding the fact that each spouse owns an undivided one-half interest in the whole of the marital property. A marital property agreement or unilateral statement under ch. 766 transferring income between spouses has no effect in computing earned income under this paragraph.

AB100-engrossed, s. 2262nt Section 2262nt. 71.07 (6) (am) of the statutes is created to read:

AB100-engrossed,1102,21 71.07 (6) (am) 1. In this paragraph, "earned income" means qualified earned income, as defined in section 221 (b) of the internal revenue code as amended to December 31, 1985, plus employe business expenses under section 62 (2) (B) to (D) of that code, allocable to Wisconsin under s. 71.04, plus amounts received by the individual for services performed in the employ of the individual's spouse minus the amount of disability income excluded under s. 71.05 (6) (b) 4. and minus any other amount not subject to tax under this chapter. Earned income is computed notwithstanding the fact that each spouse owns an undivided one-half interest in the whole of the marital property. A marital property agreement or unilateral statement under ch. 766 transferring income between spouses has no effect in computing earned income under this paragraph.

AB100-engrossed,1102,25 2. Married persons filing a joint return, except those who reduce their gross income under section 911 or 931 of the Internal Revenue Code, may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, an amount equal to one of the following:

AB100-engrossed,1103,3 a. For taxable years beginning after December 31, 1997, and before January 1, 1999, 2.17% of the earned income of the spouse with the lower earned income, but not more than $304.

AB100-engrossed,1103,6 b. For taxable years beginning after December 31, 1998, and before January 1, 2000, 2.5% of the earned income of the spouse with the lower earned income, but not more than $350.

AB100-engrossed,1103,9 c. For taxable years beginning after December 31, 1999, and before January 1, 2001, 2.75% of the earned income of the spouse with the lower earned income, but not more than $385.

AB100-engrossed,1103,11 d. For taxable years beginning after December 31, 2000, 3% of the earned income of the spouse with the lower earned income, but not more than $420.

AB100-engrossed, s. 2262nu Section 2262nu. 71.07 (6) (b) of the statutes is amended to read:

AB100-engrossed,1103,15 71.07 (6) (b) A claimant who has filed a timely claim under par. (a) this subsection may file an amended claim with the department of revenue within 4 years of the last day prescribed by law for filing the original claim.

AB100-engrossed, s. 2262p Section 2262p. 71.07 (8) (a) of the statutes is renumbered 71.07 (8) (a) (intro.) and amended to read:

AB100-engrossed,1103,20 71.07 (8) (a) (intro.) An exemption of $25 one of the following amounts if the taxpayer has reached the age of 65 prior to the close of the calendar or fiscal year. and if one of the following applies:

AB100-engrossed, s. 2262q Section 2262q. 71.07 (8) (a) 1. to 6. of the statutes are created to read:

AB100-engrossed,1103,24 71.07 (8) (a) 1. If the taxpayer is an individual, the taxpayer files an individual return, and has adjusted gross income of less than $30,000 in the year to which the claim relates, $25.

AB100-engrossed,1104,4 2. If the taxpayer is an individual, the taxpayer files an individual return, and has adjusted gross income of at least $30,000 but less than $31,000 in the year to which the claim relates, the amount obtained by subtracting from $25 2.5% of the amount by which the taxpayer's adjusted gross income exceeds $30,000.

AB100-engrossed,1104,6 3. If the taxpayer is married, the taxpayer files a joint return, and has adjusted gross income of less than $40,000 in the year to which the claim relates, $25.

AB100-engrossed,1104,10 4. If the taxpayer is married, the taxpayer files a joint return, and has adjusted gross income of at least $40,000 but less than $41,000 in the year to which the claim relates, the amount obtained by subtracting from $25 2.5% of the amount by which the taxpayer's adjusted gross income exceeds $40,000.

AB100-engrossed,1104,12 5. If the taxpayer is married, the taxpayer files a separate return, and has adjusted gross income of less than $20,000 in the year to which the claim relates, $25.

AB100-engrossed,1104,16 6. If the taxpayer is married, the taxpayer files a separate return and has adjusted gross income of at least $20,000 but less than $21,000 in the year to which the claim relates, the amount obtained by subtracting from $25 2.5% of the amount by which the taxpayer's adjusted gross income exceeds $20,000.

AB100-engrossed, s. 2262r Section 2262r. 71.07 (9m) (a) of the statutes is amended to read:

AB100-engrossed,1104,24 71.07 (9m) (a) Any person may credit against taxes otherwise due under this chapter, up to the amount of those taxes, an amount equal to 5% of the costs of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the internal revenue code, for certified historic structures on property located in this state if the physical work of construction or destruction in preparation for construction begins after December 31, 1988, and the rehabilitated property is placed in service after June 30, 1989.

AB100-engrossed, s. 2262s Section 2262s. 71.07 (10) (a) of the statutes is repealed.

AB100-engrossed, s. 2262t Section 2262t. 71.07 (10) (b) of the statutes is renumbered 71.07 (10).

AB100-engrossed, s. 2263 Section 2263. 71.08 (1) (intro.) of the statutes is amended to read:

AB100-engrossed,1105,10 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married couple filing jointly, trust or estate under s. 71.02, not considering the credits under ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3m), (6) and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd) and (2m) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd) and (2m) and subchs. VIII and IX and payments to other states under s. 71.07 (7), is less than the tax under this section, there is imposed on that natural person, married couple filing jointly, trust or estate, instead of the tax under s. 71.02, an alternative minimum tax computed as follows:

AB100-engrossed, s. 2264 Section 2264. 71.09 (6) of the statutes is repealed.

AB100-engrossed, s. 2264m Section 2264m. 71.10 (4) (de) of the statutes is created to read:

AB100-engrossed,1105,13 71.10 (4) (de) The manufacturing sales tax credit under s. 71.07 (3s).

AB100-engrossed, s. 2264s Section 2264s. 71.10 (4) (du) of the statutes is created to read:

AB100-engrossed,1105,15 71.10 (4) (du) Working families tax credit under s. 71.07 (5m).

AB100-engrossed, s. 2265 Section 2265. 71.10 (4) (gu) of the statutes is created to read:

AB100-engrossed,1105,17 71.10 (4) (gu) Development zones credit under s. 71.07 (2dx).

AB100-engrossed, s. 2265m Section 2265m. 71.10 (4) (j) of the statutes is amended to read:

AB100-engrossed,1105,20 71.10 (4) (j) Any amount of money or other assets computed under s. 71.83 (1) (c).

AB100-engrossed, s. 2266 Section 2266. 71.10 (5) (a) 2. of the statutes is amended to read:

AB100-engrossed,1106,5 71.10 (5) (a) 2. "Endangered resources program" means purchasing or improving land or habitats for any native Wisconsin endangered or threatened species as defined in s. 29.415 (2) (a) or (b) or for any nongame species as defined in s. 29.01 (10), conducting the natural heritage inventory program under s. 23.27 (3), conducting wildlife and resource research and surveys and providing wildlife management services, providing for wildlife damage control or the payment of claims for damage associated with endangered or threatened species, repaying the general fund for amounts expended under s. 20.370 (1) (fb) in fiscal year 1983-84 and the payment of administrative expenses related to the administration of this subsection.

AB100-engrossed, s. 2266c Section 2266c. 71.122 of the statutes is created to read:

AB100-engrossed,1106,9 71.122 Definition. In this subchapter, "Wisconsin taxable income" means federal taxable income, as defined in s. 71.01 (4), as modified under s. 71.05 (6) to (12), (19) and (20).

AB100-engrossed, s. 2266g Section 2266g. 71.125 of the statutes is renumbered 71.125 (1) and amended to read:

AB100-engrossed,1106,15 71.125 (1) The Except as provided in sub. (2), the tax imposed by this chapter on individuals and the rates under s. 71.06 (1), (1m) and (2) shall apply to the Wisconsin taxable income of estates or trusts, except nuclear decommissioning trust or reserve funds, and that tax shall be paid by the fiduciary.

AB100-engrossed, s. 2266h Section 2266h. 71.125 (2) of the statutes is created to read:

AB100-engrossed,1106,20 71.125 (2) Each electing small business trust, as defined in section 1361 (e) (1) of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1) or under s. 71.06 (1m), whichever taxable year is applicable, on its Wisconsin taxable income.

AB100-engrossed, s. 2266k Section 2266k. 71.195 of the statutes is created to read:

AB100-engrossed,1106,25 71.195 Definition. In this subchapter, "partnership" includes limited liability companies and other entities that are treated as partnerships under the Internal Revenue Code, and "partnership" does not include publicly traded partnerships treated as corporations under s. 71.22 (1).

AB100-engrossed, s. 2266m Section 2266m. 71.20 (1) of the statutes is amended to read:

AB100-engrossed,1107,13 71.20 (1) Every partnership, except publicly traded partnerships treated as corporations under s. 71.22 (1), and every limited liability company, except limited liability companies treated as corporations under s. 71.22 (1), shall furnish to the department a true and accurate statement, on or before April 15 of each year, except that returns for fiscal years ending on some other date than December 31 shall be furnished on or before the 15th day of the 4th month following the close of such fiscal year, in such manner and form and setting forth such facts as the department deems necessary to enforce this chapter. A partnership that is the owner of a single-owner entity that is disregarded as a separate entity under section 7701 of the Internal Revenue Code shall include that entity's information on the owner's return under this subchapter. The statement shall be subscribed by one of the members of the partnership or limited liability company.

AB100-engrossed, s. 2266r Section 2266r. 71.21 (1) of the statutes is amended to read:

AB100-engrossed,1107,19 71.21 (1) The net income of a partnership, except publicly traded partnerships treated as corporations under s. 71.22 (1), and of a limited liability company, except limited liability companies treated as corporations under s. 71.22 (1), shall be computed in the same manner and on the same basis as provided for computation of the income of persons other than corporations.

AB100-engrossed, s. 2266t Section 2266t. 71.21 (2) of the statutes is amended to read:

AB100-engrossed,1107,22 71.21 (2) The standard deduction shall not be allowed in computing the taxable income of a partnership or of a limited liability company.