AB768: Bill Text

AB768,145,15 d. From the amount calculated under subd. 27. a., if the claimant is married and filing separately and the claimant's federal adjusted gross income is more than $40,000 but not more than $50,000, subtract the product of the amount calculated under subd. 27. a. and the value of a fraction, the denominator of which is $10,000 and the numerator of which is the difference between the claimant's federal adjusted gross income and $40,000.

AB768,146,2 e. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 27. b., c. or d. by a fraction the numerator of which is the individual's wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual's total wages, salary, tips, unearned income and net earnings from a trade or business. In this subd. 27. e., for married persons filing separately "wages, salary, tips, unearned income and net earnings from a trade or business" means the separate wages, salary, tips, unearned income and net earnings from a trade or business of each spouse, and for married persons filing jointly "wages, salary, tips, unearned income and net earnings from a trade or business" means the total wages, salary, tips, unearned income and net earnings from a trade or business of both spouses.

AB768,146,5 f. Reduce the amount calculated under subd. 27. e. to the individual's aggregate wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state.

AB768,146,11 g. No modification may be claimed under this subdivision by a claimant who is single or married and filing as head of household if the claimant's federal adjusted gross income is more than $60,000, by a claimant who is married and filing jointly if the claimant's and his or her spouse's federal adjusted gross income is more than $100,000 or by a claimant who is married and filing separately if the claimant's federal adjusted gross income is more than $50,000.

AB768, s. 284 Section 284. 71.05 (6) (b) 28. of the statutes is created to read:

AB768,146,19 71.05 (6) (b) 28. An amount paid by a claimant for tuition expenses for a student who is the claimant or who is the claimant's child and the claimant's dependent who is claimed under section 151 (c) of the Internal Revenue Code, to attend any university, college, technical college or a school approved under s. 39.51, that is located in Wisconsin or to attend a public vocational school or public institution of higher education in Minnesota under the Minnesota-Wisconsin reciprocity agreement under s. 39.47, calculated as follows:

AB768,146,21 a. An amount equal to not more than $3,000 per student for each year to which the claim relates.

AB768,147,2 b. From the amount calculated under subd. 28. a., if the claimant is single or married and filing as head of household and his or her federal adjusted gross income is more than $50,000 but not more than $60,000, subtract the product of the amount calculated under subd. 28. a. and the value of a fraction, the denominator of which is $10,000 and the numerator of which is the difference between the claimant's federal adjusted gross income and $50,000.

AB768,147,8 c. From the amount calculated under subd. 28. a., if the claimant is married and filing jointly and the claimant's and his or her spouse's federal adjusted gross income is more than $80,000 but not more than $100,000, subtract the product of the amount calculated under subd. 28. a. and the value of a fraction, the denominator of which is $20,000 and the numerator of which is the difference between the claimant's and his or her spouse's federal adjusted gross income and $80,000.

AB768,147,14 d. From the amount calculated under subd. 28. a., if the claimant is married and filing separately and the claimant's federal adjusted gross income is more than $40,000 but not more than $50,000, subtract the product of the amount calculated under subd. 28. a. and the value of a fraction, the denominator of which is $10,000 and the numerator of which is the difference between the claimant's federal adjusted gross income and $40,000.

AB768,148,2 e. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 28. b., c. or d. by a fraction the numerator of which is the individual's wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual's total wages, salary, tips, unearned income and net earnings from a trade or business. In this subd. 28. e., for married persons filing separately "wages, salary, tips, unearned income and net earnings from a trade or business" means the separate wages, salary, tips, unearned income and net earnings from a trade or business of each spouse, and for married persons filing jointly "wages, salary, tips, unearned income and net earnings from a trade or business" means the total wages, salary, tips, unearned income and net earnings from a trade or business of both spouses.

AB768,148,5 f. Reduce the amount calculated under subd. 28. e. to the individual's aggregate wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state.

AB768,148,11 g. No modification may be claimed under this subdivision by a claimant who is single or married and filing as head of household if the claimant's federal adjusted gross income is more than $60,000, by a claimant who is married and filing jointly if the claimant's and his or her spouse's federal adjusted gross income is more than $100,000 or by a claimant who is married and filing separately if the claimant's federal adjusted gross income is more than $50,000.

AB768, s. 285 Section 285. 71.07 (8m) of the statutes is created to read:

AB768,148,13 71.07 (8m) Educational expenses credit. (a) Definitions. In this subsection:

AB768,148,15 1. "Claimant" means an individual who claims a pupil as a dependent under section 151 (c) of the Internal Revenue Code, on his or her tax return.

AB768,148,18 2. "Computers" means computer hardware, educational software and related educational materials for use in the claimant's home by a pupil and not used in a trade or business.

AB768,148,19 3. "Department" means the department of revenue.

AB768,149,5 4. "Educational expenses" means amounts paid for tutoring for a pupil; for tuition costs at a technical college or institution of higher education, the credit for which satisfies high school graduation requirements; for a pupil's fees at summer courses; for computers, rental fees for musical instruments, school uniforms required by an eligible institution, instructional materials and school supplies related to the pupil's curricular activities and attendance at an eligible institution, but not including supplies and instructional materials that are used in the teaching of religious tenets, doctrines or worship; for fees paid on behalf of a pupil to an eligible institution, but not including fees for food; and for transportation costs paid to others related to the pupil's attendance at an eligible institution. "Educational expenses" does not include costs for out-of-state class trips or student exchange programs.

AB768,149,12 5. "Eligible institution" means a public school, as specified in s. 115.01 (1); a private school, as defined in s. 115.001 (3r), that is accredited by the North Central Association of Colleges and Schools, the Independent Schools Association of the Central States or the Wisconsin Nonpublic School Accrediting Association and that fulfills the requirements under subch. II of ch. 111 and 42 USC 2000d; or a home-based private educational program, as defined in s. 115.001 (3g), that meets all of the criteria under s. 118.165 (1).

AB768,149,13 6. "Income" means federal adjusted gross income.

AB768,149,15 7. "Licensed teacher" means a person who holds a license or permit to teach issued by the department of public instruction.

AB768,149,18 8. "Pupil" means an individual who is enrolled in kindergarten or grades 1 to 12 at an eligible institution and who is a dependent of the claimant under section 151 (c) of the Internal Revenue Code.

AB768,149,22 9. "Summer courses" means courses conducted outside of the school term, as defined in s. 115.001 (12), that are provided by a licensed teacher, in subjects that are part of the regular school curriculum or are in the fine arts, dramatic arts or foreign languages or are academic in nature.

AB768,150,3 10. "Tutoring" means supplemental instruction, special needs classes or after-school enrichment, conducted outside of the regular school day and provided by a licensed teacher, in subjects that are part of the regular school curriculum, but not including supplemental instruction, special needs classes or after-school enrichment in subjects involving the teaching of religious tenets, doctrines or worship.

AB768,150,11 (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 an amount equal to any amounts paid for educational expenses in the year to which the claim relates. If the allowable amount of the claim exceeds the income taxes otherwise due on the claimant's income, the amount of the claim not used as an offset against those taxes shall be certified by the department to the department of administration for payment to the claimant by check, share draft or other draft from the appropriation under s. 20.835 (2) (e).

AB768,150,14 (c) Limitations. 1. Except as provided in subd. 3., the maximum credit that may be claimed under this subsection by a claimant, per pupil, is $1,000 in each year to which the claim relates.

AB768,150,17 2. Except as provided in subd. 3., the maximum credit that may be claimed under this subsection by a claimant for all pupils is $2,000 in each year to which the claim relates.

AB768,150,20 3. If a married couple files separately, except for a spouse who files as head of household, each spouse may claim up to 50% of the amounts specified in subds. 1. and 2.

AB768,151,3 4. If a part-year resident or a nonresident of this state files a claim under this subsection, the maximum credit amounts in subds. 1. and 2. shall be multiplied by a fraction, the numerator of which is the individual's and his or her spouse's Wisconsin adjusted gross income and the denominator of which is the individual's and his or her spouse's federal adjusted gross income. In this subd. 4., for married persons filing separately "adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly "adjusted gross income means the total adjusted gross income of both spouses.

AB768,151,5 5. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

AB768,151,8 6. No credit may be allowed under this subsection for a taxable year covering a period of less than 12 months, except for a taxable year closed by reason of the death of the taxpayer.

AB768,151,11 7. Of the amount that is paid for computers, the maximum annual amount that may be used in calculating educational expenses in the year to which the claim relates is $500 per claimant.

AB768,151,13 8. No credit may be claimed under this subsection if the claimant's income exceeds one of the following:

AB768,151,17 a. If the claimant is married and files jointly, $30,000 in the year to which the claim relates if he or she has one pupil. The income specified in this subd. 8. a. shall increase by $5,000 for each additional pupil of the claimant, up to a maximum of $60,000 in the year to which the claim relates.

AB768,151,21 b. If the claimant is married and files separately, $15,000 in the year to which the claim relates if he or she has one pupil. The income specified in this subd. 8. b. shall increase by $2,500 for each additional pupil of the claimant, up to a maximum of $30,000 in the year to which the claim relates.

AB768,151,25 c. If the claimant is single or married and filing as head of household, $25,000 in the year to which the claim relates if he or she has one pupil. The income specified in this subd. 8. c. shall increase by $5,000 for each additional pupil of the claimant, up to a maximum of $55,000 in the year to which the claim relates.

AB768,152,2 9. No credit may be claimed under this subsection for educational expenses related to an eligible institution that is not located in Wisconsin.

AB768,152,7 (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.

AB768, s. 286 Section 286. 71.08 (1) (intro.) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

AB768,152,18 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), (8m) 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:

AB768, s. 287 Section 287. 71.10 (4) (i) of the statutes is amended to read:

AB768,152,25 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under subch. IX, homestead credit under subch. VIII, farmland tax relief credit under s. 71.07 (3m), farmers' drought property tax credit under s. 71.07 (2fd), educational expenses credit under s. 71.07 (8m), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

AB768, s. 288 Section 288. 71.125 (2) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

AB768,153,7 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 as computed under section 641 of the Internal Revenue Code, as modified by s. 71.05 (6) to (12), (19) and (20).

AB768, s. 289 Section 289. 71.17 (6) of the statutes is created to read:

AB768,153,12 71.17 (6) Funeral trusts. If a qualified funeral trust makes the election under section 685 of the Internal Revenue Code for federal income tax purposes, that election applies for purposes of this chapter and each trust shall compute its own tax and shall apply the rates under s. 71.06 (1m).

AB768, s. 290 Section 290. 71.22 (4) (m) of the statutes, as created by 1997 Wisconsin Act 37, is amended to read:

AB768,154,14 71.22 (4) (m) Except as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34 (1g) and 71.42 (2), "Internal Revenue Code", for taxable years that begin after December 31, 1997, means the federal Internal Revenue Code as amended to December 31, 1996 1997, excluding sections 103, 104 and 110 of P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66 and sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, and as amended by the provisions of P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and as indirectly affected in the provisions applicable to this subchapter by P.L. 99-514, P.L. 100-203, P.L. 100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823 (c) (2) of P.L. 99-514 and section 1008 (g) (5) of P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508, P.L. 102-227, excluding sections 103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L. 104-7, P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, P.L. 104-191 , P.L. 104-193 and the provisions of, P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 1996 1997, do not apply to this paragraph with respect to taxable years beginning after December 31, 1997, except that changes to the Internal Revenue Code made by P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and changes that indirectly affect the provisions applicable to this subchapter made by P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, apply for Wisconsin purposes at the same time as for federal purposes.

AB768, s. 291 Section 291. 71.22 (4m) (k) of the statutes, as created by 1997 Wisconsin Act 37, is amended to read:

AB768,155,14 71.22 (4m) (k) For taxable years that begin after December 31, 1997, "Internal Revenue Code", for corporations that are subject to a tax on unrelated business income under s. 71.26 (1) (a), means the federal Internal Revenue Code as amended to December 31, 1996 1997, excluding sections 103, 104 and 110 of P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, and sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, and as amended by the provisions of P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and as indirectly affected in the provisions applicable to this subchapter by P.L. 99-514, P.L. 100-203, P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508, P.L. 102-227, excluding sections 103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L. 104-7, P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, P.L. 104-191 , P.L. 104-193 and the provisions of, P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the Internal Revenue Code enacted after December 31, 1996 1997, do not apply to this paragraph with respect to taxable years beginning after December 31, 1997, except that changes to the Internal Revenue Code made by P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and changes that indirectly affect the provisions applicable to this subchapter made by P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, apply for Wisconsin purposes at the same time as for federal purposes.

AB768, s. 292 Section 292. 71.26 (2) (b) 13. of the statutes, as created by 1997 Wisconsin Act 37, is amended to read:

AB768,157,25 71.26 (2) (b) 13. For taxable years that begin after December 31, 1997, for a corporation, conduit or common law trust which qualifies as a regulated investment company, real estate mortgage investment conduit, real estate investment trust or financial asset securitization investment trust under the Internal Revenue Code as amended to December 31, 1996 1997, excluding sections 103, 104 and 110 of P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66 and sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188 , and as amended by the provisions of P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and as indirectly affected in the provisions applicable to this subchapter by P.L. 99-514, P.L. 100-203, P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508, P.L. 102-227, excluding sections 103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L. 104-7, P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, P.L. 104-191 , P.L. 104-193 and the provisions of, P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, "net income" means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income, federal real estate investment trust or financial asset securitization investment trust taxable income of the corporation, conduit or trust as determined under the Internal Revenue Code as amended to December 31, 1996 1997, excluding sections 103, 104 and 110 of P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66 and sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188 , and as amended by the provisions of P.L. 105-33 and P.L. 105-34 that take effect before January 1,1998, and as indirectly affected in the provisions applicable to this subchapter by P.L. 99-514, P.L. 100-203, P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508, P.L. 102-227, excluding sections 103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L. 104-7, P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, P.L. 104-191 , P.L. 104-193 and the provisions of, P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, except that property that, under s. 71.02 (1) (c) 8. to 11., 1985 stats., is required to be depreciated for taxable years 1983 to 1986 under the Internal Revenue Code as amended to December 31, 1980, shall continue to be depreciated under the Internal Revenue Code as amended to December 31, 1980, and except that the appropriate amount shall be added or subtracted to reflect differences between the depreciation or adjusted basis for federal income tax purposes and the depreciation or adjusted basis under this chapter of any property disposed of during the taxable year. The Internal Revenue Code as amended to December 31, 1996 1997, excluding sections 103, 104 and 110 of P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, and sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, and as amended by the provisions of P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and as indirectly affected in the provisions applicable to this subchapter by P.L. 99-514, P.L. 100-203, P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508, P.L. 102-227, excluding sections 103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L. 104-7, P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, P.L. 104-191 , P.L. 104-193 and the provisions of, P.L.105-33 and P.L. 105-34 that take effect before January 1, 1998, applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the Internal Revenue Code enacted after December 31, 1996 1997, do not apply to this subdivision with respect to taxable years that begin after December 31, 1997, except that changes to the Internal Revenue Code made by P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and changes that indirectly affect the provisions applicable to this subchapter made by P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, apply for Wisconsin purposes at the same time as for federal purposes.

AB768, s. 293 Section 293. 71.26 (3) (y) of the statutes, as affected by 1997 Wisconsin Act 37, is amended to read:

AB768,158,15 71.26 (3) (y) A corporation may compute amortization and depreciation under either the federal internal revenue code as amended to December 31, 1996, for property placed in service before August 6, 1997, or as amended to August 5, 1997, for property placed in service on August 6, 1997, or thereafter 1997, or the federal internal revenue code in effect for the taxable year for which the return is filed, except that property first placed in service by the taxpayer on or after January 1, 1983, but before January 1, 1987, that, under s. 71.04 (15) (b) and (br), 1985 stats., is required to be depreciated under the internal revenue code as amended to December 31, 1980, and property first placed in service in taxable year 1981 or thereafter but before January 1, 1987, that, under s. 71.04 (15) (bm), 1985 stats., is required to be depreciated under the internal revenue code as amended to December 31, 1980, shall continue to be depreciated under the internal revenue code as amended to December 31, 1980.

AB768, s. 294 Section 294. 71.34 (1g) (m) of the statutes, as created by 1997 Wisconsin Act 37, is amended to read:

AB768,159,18 71.34 (1g) (m) "Internal Revenue Code" for tax-option corporations, for taxable years that begin after December 31, 1997, means the federal Internal Revenue Code as amended to December 31, 1996 1997, excluding sections 103, 104 and 110 of P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66 and sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188 , and as amended by the provisions of P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and as indirectly affected in the provisions applicable to this subchapter by P.L. 99-514, P.L. 100-203, P.L. 100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823 (c) (2) of P.L. 99-514 and section 1008 (g) (5) of P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508, P.L. 102-227, excluding sections 103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L. 104-7, P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, P.L. 104-191 , P.L. 104-193 and the provisions of, P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, except that section 1366 (f) (relating to pass-through of items to shareholders) is modified by substituting the tax under s. 71.35 for the taxes under sections 1374 and 1375. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 1996 1997, do not apply to this paragraph with respect to taxable years beginning after December 31, 1997, except that changes to the Internal Revenue Code made by P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and changes that indirectly affect the provisions applicable to this subchapter made by P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, apply for Wisconsin purposes at the same time as for federal purposes.

AB768, s. 295 Section 295. 71.365 (1m) of the statutes, as affected by 1997 Wisconsin Act 37, is amended to read:

AB768,160,23 71.365 (1m) Tax-option corporations; depreciation. A tax-option corporation may compute amortization and depreciation under either the federal internal revenue code as amended to December 31, 1996, for property placed in service before August 6, 1997, or as amended to August 5, 1997, for property placed in service on August 6, 1997, or thereafter 1997, or the federal internal revenue code in effect for the taxable year for which the return is filed, except that property first placed in service by the taxpayer on or after January 1, 1983, but before January 1, 1987, that, under s. 71.04 (15) (b) and (br), 1985 stats., is required to be depreciated under the internal revenue code as amended to December 31, 1980, and property first placed in service in taxable year 1981 or thereafter but before January 1, 1987, that, under s. 71.04 (15) (bm), 1985 stats., is required to be depreciated under the internal revenue code as amended to December 31, 1980, shall continue to be depreciated under the internal revenue code as amended to December 31, 1980. Any difference between the adjusted basis for federal income tax purposes and the adjusted basis under this chapter shall be taken into account in determining net income or loss in the year or years for which the gain or loss is reportable under this chapter. If that property was placed in service by the taxpayer during taxable year 1986 and thereafter but before the property is used in the production of income subject to taxation under this chapter, the property's adjusted basis and the depreciation or other deduction schedule are not required to be changed from the amount allowable on the owner's federal income tax returns for any year because the property is used in the production of income subject to taxation under this chapter. If that property was acquired in a transaction in taxable year 1986 or thereafter in which the adjusted basis of the property in the hands of the transferee is the same as the adjusted basis of the property in the hands of the transferor, the Wisconsin adjusted basis of that property on the date of transfer is the adjusted basis allowable under the internal revenue code as defined for Wisconsin purposes for the property in the hands of the transferor.

AB768, s. 296 Section 296. 71.42 (2) (L) of the statutes, as created by 1997 Wisconsin Act 37, is amended to read:

AB768,161,23 71.42 (2) (L) For taxable years that begin after December 31, 1997, "Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 1996 1997, excluding sections 103, 104 and 110 of P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66 and sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, and as amended by the provisions of P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and as indirectly affected by P.L. 99-514, P.L. 100-203, P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508, P.L. 102-227, excluding sections 103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L. 104-7, P.L. 104-188, excluding sections 1123 (b), 1202 (c) 1204 (f), 1311 and 1605 (d) of P.L. 104-188, P.L. 104-191 , P.L. 104-193 and the provisions of, P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, except that "Internal Revenue Code" does not include section 847 of the federal Internal Revenue Code. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 1996 1997, do not apply to this paragraph with respect to taxable years beginning after December 31, 1997, except that changes to the Internal Revenue Code made by P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and changes that indirectly affect the provisions applicable to this subchapter made by P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, apply for Wisconsin purposes at the same time as for federal purposes.

AB768, s. 297 Section 297. 71.45 (2) (a) 13. of the statutes, as affected by 1997 Wisconsin Act 37, is amended to read:

AB768,162,14 71.45 (2) (a) 13. By adding or subtracting, as appropriate, the difference between the depreciation deduction under the federal internal revenue code as amended to December 31, 1996, for property placed in service before August 6, 1997, or as amended to August 5, 1997, for property placed in service on August 6, 1997, or thereafter 1997 and the depreciation deduction under the federal internal revenue code in effect for the taxable year for which the return is filed, so as to reflect the fact that the insurer may choose between these 2 deductions, except that property first placed in service by the taxpayer on or after January 1, 1983, but before January 1, 1987, that, under s. 71.04 (15) (b) and (br), 1985 stats., is required to be depreciated under the internal revenue code as amended to December 31, 1980, and property first placed in service in taxable year 1981 or thereafter but before January 1, 1987, that, under s. 71.04 (15) (bm), 1985 stats., is required to be depreciated under the internal revenue code as amended to December 31, 1980, shall continue to be depreciated under the internal revenue code as amended to December 31, 1980.

AB768, s. 298 Section 298. 71.78 (4) (o) of the statutes is repealed and recreated to read:

AB768,162,18 71.78 (4) (o) A licensing department or the supreme court, if the supreme court agrees, for the purpose of denial, nonrenewal, discontinuation and revocation of a license based on tax delinquency under s. 73.0301.

AB768, s. 299 Section 299. 71.83 (3) of the statutes is amended to read:

AB768,163,8 71.83 (3) Late filing fees. If any person required under this chapter to file an income or franchise tax return fails to file a return within the time prescribed by law, or as extended under s. 71.03 (7), 71.24 (7) or 71.44 (3), unless the return is filed under such an extension but the person fails to file a copy of the extension that is granted by or requested of the internal revenue service, the department shall add to the tax of the person $30 in the case of corporations and in the case of persons other than corporations $2 when the total normal income tax of the person is less than $10, $3 when the tax is $10 or more but less than $20, $5 when the tax is $20 or more, except that $30 shall be added to the tax if the return is 60 or more days late. If no tax is assessed against any such person the amount of this fee shall be collected as income or franchise taxes are collected. If any person who is required under s. 71.65 (3) to file a withholding report and deposit withheld taxes fails timely to do so; unless the person so required dies or the failure is due to a reasonable cause and not due to neglect; the department of revenue shall add $30 to the amount due.

AB768, s. 300 Section 300. 71.91 (8) (title) of the statutes is repealed.

AB768, s. 301 Section 301. 71.91 (8) of the statutes is renumbered 73.0301 (5) (a) and amended to read:

AB768,164,4 73.0301 (5) (a) The department of revenue shall conduct a hearing requested by a credential holder under s. 440.08 (4) (b) 2. license holder or applicant for a license or license renewal or continuation under sub. (2) (b) 1. b. or by an applicant for certification or recertification or a certificate holder under s. 73.09 (7m) (b) to review a certification or determination of tax delinquency that is the basis of a denial by the department of regulation and licensing under s. 440.08 (4) (b) 1. of an application for the renewal of a credential or revocation of a license in accordance with this section or of a certificate, certification or recertification under s. 73.09 (7m). A hearing under this subsection paragraph is limited to questions of mistaken identity of the credential license or certificate holder or applicant and of prior payment of the delinquent taxes for which the department of revenue certified or determined the credential license or certificate holder or applicant is liable. At a hearing under this subsection paragraph, any statement filed by the department of revenue or, the licensing department of regulation and licensing or the supreme court, if the supreme court agrees, may be admitted into evidence and is prima facie evidence of the facts that it contains. Notwithstanding ch. 227, a person entitled to a hearing under this paragraph is not entitled to any other notice, hearing or review, except as provided in sub. (2) (b) 2.

AB768, s. 302 Section 302. 71.92 (2) of the statutes is amended to read:

AB768,164,18 71.92 (2) Any taxpayer who is unable to pay the full amount of his or her delinquent income or franchise taxes, costs, penalties and interest may apply to the department of revenue to pay such taxes, costs, penalties and interest in instalments. Such application shall contain a statement of the reasons such taxes, costs, penalties and interest cannot be paid in full and shall set forth the plan of instalment payments proposed by the taxpayer. Upon approval of such plan by the department and the payment of instalments in accordance therewith collection proceedings with respect to such taxes, costs, penalties and interest shall be withheld; but on failure of the taxpayer to make any instalment payment, the department shall proceed to collect the unpaid portion of such taxes, costs, penalties and interest in the manner provided by law. The department of revenue may require taxpayers who make instalment payments under this subsection to do so by electronic funds transfer.

AB768, s. 303 Section 303. 73.03 (27) (intro.) of the statutes is renumbered 73.03 (27) and amended to read:

AB768,164,25 73.03 (27) To write off from the records of the department income, franchise, sales, use, withholding, motor fuel, gift, beverage and cigarette tax and recycling surcharge liabilities, following a determination by the secretary of revenue that they are not collectible, as hereinafter provided:. Taxes written off under this subsection remain legal obligations.

AB768, s. 304 Section 304. 73.03 (27) (a) to (e) of the statutes are repealed.

AB768, s. 305 Section 305. 73.03 (28g) of the statutes is repealed.

AB768, s. 306 Section 306. 73.03 (52) of the statutes is created to read:

AB768,165,7 73.03 (52) To enter into agreements with the internal revenue service that provide for offsetting state tax refunds against federal tax obligations and offsetting federal tax refunds against state tax obligations, if the agreements provide that setoffs under ss. 71.93 and 71.935 occur before the setoffs under those agreements.

AB768, s. 307 Section 307. 73.0301 of the statutes is created to read:

AB768,165,10 73.0301 License denial, nonrenewal, discontinuation and revocation based on tax delinquency. (1) Definitions. In this section:

AB768,165,12 (a) "Credential" has the meaning given in s. 440.01 (2) (a), but does not include a registration as an inactive licensee under s. 452.12 (6) (b).

AB768,165,15 (b) "Credentialing board" means a board, examining board or affiliated credentialing board in the department of regulation and licensing that grants a credential.

AB768,165,16 (d) "License" means any of the following:

AB768,165,17 1. An approval specified in s. 29.09 (11m).

AB768,165,19 2. A license issued by the department of health and family services under s. 48.66 (1) to a day care center, as required by s. 48.65.

AB768,165,23 3. A license, certificate of approval, provisional license, conditional license, certification, certification card, registration or approval specified in s. 49.45 (2) (a) 11., 50.35, 50.49 (6) (a) or (10), 51.038, 51.04, 51.42 (7) (b) 11., 51.421 (3) (a), 51.45 (8), 146.40 (3) or (3m), 250.05 (5), 254.176, 254.20 (3) or 343.305 (6) (a).

AB768,165,24 4. A license, registration or registration certificate specified in s. 93.13 (1).

AB768,165,25 5. A license, as defined in s. 101.02 (20) (a).

AB768,166,3 6. A license or certificate of registration issued by the department of financial institutions, or a division of it, under s. 138.09, 138.12, 217.06, 218.01, 218.02, 218.04, 218.05 or 224.72 or under subch. III of ch. 551.