AB100, s. 1272 18Section 1272. 71.01 (8g) of the statutes is amended to read:
AB100,623,2019 71.01 (8g) "Member" does not include a member of a limited liability company
20treated as a corporation under s. 71.22 (1) (1k).
AB100, s. 1273 21Section 1273. 71.01 (8m) of the statutes is amended to read:
AB100,623,2322 71.01 (8m) "Partner" does not include a partner of a publicly traded
23partnership treated as a corporation under s. 71.22 (1) (1k).
AB100, s. 1274 24Section 1274. 71.01 (10g) of the statutes is created to read:
AB100,624,4
171.01 (10g) For purposes of s. 71.04 (7) (df), (dg), and (dh), "state" means a state
2of the United States, the District of Columbia, the commonwealth of Puerto Rico, or
3any territory or possession of the United States, unless the context requires that
4"state" means only the state of Wisconsin.
AB100, s. 1275 5Section 1275. 71.03 (1) of the statutes is amended to read:
AB100,625,26 71.03 (1) Definition. In this section, "gross income" means all income, from
7whatever source derived and in whatever form realized, whether in money, property
8or services, which is not exempt from Wisconsin income taxes. "Gross income"
9includes, but is not limited to, the following items: compensation for services,
10including salaries, wages and fees, commissions and similar items; gross income
11derived from business; interest; rents; royalties; dividends; alimony and separate
12maintenance payments; annuities; income from life insurance and endowment
13contracts; pensions; income from discharge of indebtedness; distributive shares of
14partnership gross income except distributive shares of the income of publicly traded
15partnerships treated as corporations under s. 71.22 (1) (1k); distributive shares of
16limited liability company gross income except distributive shares of the income of
17limited liability companies treated as corporations under s. 71.22 (1) (1k); income in
18respect of a decedent; and income from an interest in an estate or trust. "Gross
19income" from a business or farm consists of the total gross receipts without reduction
20for cost of goods sold, expenses or any other amounts. The gross rental amounts
21received from rental properties are included in gross income without reduction for
22expenses or any other amounts. "Gross income" from the sale of securities, property
23or other assets consists of the gross selling price without reduction for the cost of the
24assets, expenses of sale or any other amounts. "Gross income" from an annuity,

1retirement plan or profit sharing plan consists of the gross amount received without
2reduction for the employee's contribution to the annuity or plan.
AB100, s. 1276 3Section 1276. 71.04 (7) (d) of the statutes is repealed.
AB100, s. 1277 4Section 1277. 71.04 (7) (db) of the statutes is created to read:
AB100,625,75 71.04 (7) (db) Gross receipts from the lease, rental, or licensing of real property
6owned by the taxpayer and the sublease of real property are in this state if the real
7property is located in this state.
AB100, s. 1278 8Section 1278. 71.04 (7) (dd) of the statutes is created to read:
AB100,625,209 71.04 (7) (dd) 1. Except as provided in subd. 2., gross receipts from the lease,
10rental, or licensing of tangible personal property owned by the taxpayer and the
11sublease of tangible personal property are in this state if the property is located in
12this state during the entire period of lease, rental, licensing, sublease, or other use.
13If the property is used in and outside this state during the period of lease, rental,
14licensing, or sublease, gross receipts are in this state to the extent that the property
15is used in this state. The proportion of use in this state is determined by multiplying
16the gross receipts from the lease, rental, licensing, sublease, or other use of the
17property by a fraction having as a numerator the amount of time the property was
18used in this state in the taxable year and having as a denominator the total time the
19property was used in all states having jurisdiction to impose an income tax on the
20taxpayer in the taxable year.
AB100,625,2521 2. Gross receipts from the lease, rental, or licensing of moving property,
22including motor vehicles, rolling stock, aircraft, vessels, or mobile equipment, owned
23by the taxpayer and the sublease of moving property are in this state to the extent
24that the property is used in this state. The proportion of use of moving property in
25this state is determined as follows:
AB100,626,7
1a. The proportion of use of a motor vehicle or rolling stock in this state is
2determined by multiplying the gross receipts from the lease, rental, licensing, or
3sublease of the motor vehicle or rolling stock by a fraction having as a numerator the
4number of miles traveled within this state by the motor vehicle or rolling stock while
5leased, rented, licensed, or subleased in the taxable year and having as a
6denominator the total number of miles traveled by the motor vehicle or rolling stock
7while leased, rented, licensed, or subleased in the taxable year.
AB100,626,138 b. The proportion of use of an aircraft in this state is determined by multiplying
9the gross receipts from the lease, rental, licensing, or sublease of the aircraft by a
10fraction having as a numerator the number of takeoffs and landings of the aircraft
11in this state while leased, rented, licensed, or subleased in the taxable year and
12having as a denominator the total number of takeoffs and landings of the aircraft
13while leased, rented, licensed, or subleased in the taxable year.
AB100,626,2014 c. The proportion of use of a vessel or mobile equipment in this state is
15determined by multiplying the gross receipts from the lease, rental, licensing, or
16sublease of the vessel or mobile equipment by a fraction having as a numerator the
17number of days that the vessel or mobile equipment is in this state while leased,
18rented, licensed, or subleased in the taxable year and having as a denominator the
19total number of days that the vessel or mobile equipment is leased, rented, licensed,
20or subleased in the taxable year.
AB100,626,2521 d. If the taxpayer is unable to determine the use of moving property under subd.
222. a., b., or c. while the property is leased, rented, licensed, or subleased in the taxable
23year, the moving property is conclusively deemed to be used in the state in which the
24property is located at the time that the lessee, renter, licensee, or sublessee takes
25possession of the property in the taxable year.
AB100, s. 1279
1Section 1279. 71.04 (7) (df) of the statutes is created to read:
AB100,627,42 71.04 (7) (df) 1. Gross receipts from the use of computer software are in this
3state if the purchaser or licensee uses the computer software at a location in this
4state.
AB100,627,155 2. Computer software is used at a location in this state if the purchaser or
6licensee uses the computer software in the regular course of business operations in
7this state, for personal use in this state, or if the purchaser or licensee is an individual
8whose domicile is in this state. If the purchaser or licensee uses the computer
9software in more than one state, the gross receipts shall be divided among those
10states having jurisdiction to impose an income tax on the taxpayer in proportion to
11the use of the computer software in those states. To determine computer software
12use in this state, the department may consider the number of users in each state
13where the computer software is used, the number of site licenses or workstations in
14this state, and any other factors that reflect the use of computer software in this
15state.
AB100,627,1916 3. If the taxpayer is not subject to income tax in the state in which the gross
17receipts are considered received under this paragraph, but the taxpayer's
18commercial domicile is in this state, 50 percent of those gross receipts shall be
19included in the numerator of the sales factor.
AB100, s. 1280 20Section 1280. 71.04 (7) (dg) of the statutes is created to read:
AB100,628,221 71.04 (7) (dg) 1. Gross royalties and other gross receipts received for the sale
22or use of intangible property, including, but not limited to, patents, copyrights,
23trademarks, trade names, service names, franchises, licenses, plans, specifications,
24blueprints, processes, techniques, formulas, designs, layouts, patterns, drawings,

1manuals, technical know-how, contracts, and customer lists, are in this state if the
2user, purchaser, or licensee uses the intangible property at a location in this state.
AB100,628,133 2. Intangible property is used at a location in this state if the user, purchaser,
4or licensee uses the property in the operation of a trade or business at a location in
5this state, for personal use in this state, or if the user, purchaser, or licensee is an
6individual whose domicile is in this state. If the user, purchaser, or licensee uses the
7intangible property in more than one state, the gross royalties and other gross
8receipts from the sale or use of the intangible property shall be divided among those
9states having jurisdiction to impose an income tax on the taxpayer in proportion to
10the use of the intangible property in those states. To determine intangible property
11use in this state, the department may consider the number of licensed sites in each
12state, the volume of property manufactured, produced, or sold at locations in this
13state, or any other factors that reflect the use of the intangible property in this state.
AB100,628,1714 3. If the taxpayer is not subject to income tax in the state in which the gross
15royalties or other gross receipts are considered received under this paragraph, but
16the taxpayer's commercial domicile is in this state, 50 percent of those gross royalties
17or other gross receipts shall be included in the numerator of the sales factor.
AB100, s. 1281 18Section 1281. 71.04 (7) (dh) of the statutes is created to read:
AB100,628,2019 71.04 (7) (dh) 1. Gross receipts from services are in this state if the purchaser
20of the service received the benefit of the service in this state.
AB100,628,2121 2. The benefit of a service is received in this state if any of the following applies:
AB100,628,2222 a. The service relates to real property that is located in this state.
AB100,628,2523 b. The service relates to tangible personal property that is located in this state
24at the time that the service is received or tangible personal property that is delivered
25directly or indirectly to customers in this state.
AB100,629,2
1c. The service is provided to an individual who is physically present in this state
2at the time that the service is received.
AB100,629,43 d. The service is provided to a person engaged in a trade or business in this state
4and relates to that person's business in this state.
AB100,629,85 3. If the purchaser of a service receives the benefit of a service in more than one
6state, the gross receipts from the performance of the service are included in the
7numerator of the sales factor according to the portion of the service received in this
8state.
AB100,629,149 4. If the taxpayer is not subject to income tax in the state in which the benefit
10of the service is received, the benefit of the service is received in this state to the
11extent that the taxpayer's employees or representatives performed services from a
12location in this state. Fifty percent of the taxpayer's receipts that are considered
13received in this state under this paragraph shall be included in the numerator of the
14sales factor.
AB100, s. 1282 15Section 1282. 71.04 (7) (dm) of the statutes is created to read:
AB100,629,1916 71.04 (7) (dm) If the income from sales, other than sales of tangible personal
17property, properly assignable to this state cannot be ascertained with reasonable
18certainty by the methods under pars. (db), (dd), (df), (dg), and (dh), the department
19may promulgate rules that specify how the income shall be apportioned.
AB100, s. 1283 20Section 1283. 71.04 (7) (e) 12. of the statutes is created to read:
AB100,629,2221 71.04 (7) (e) 12. Gross receipts from the sale, licensing, or use of intangible
22property in the ordinary course of the taxpayer's trade or business.
AB100, s. 1284 23Section 1284. 71.04 (7) (f) 5. of the statutes is amended to read:
AB100,629,2524 71.04 (7) (f) 5. Proceeds Notwithstanding any other provision of this
25subsection, proceeds
and gain or loss from the redemption of securities.
AB100, s. 1285
1Section 1285. 71.04 (7) (f) 7. of the statutes is amended to read:
AB100,630,32 71.04 (7) (f) 7. Gross receipts and gain or loss from the sale of intangible assets,
3except those under par. (e) 1. and 12.
AB100, s. 1286 4Section 1286. 71.04 (7) (f) 9. of the statutes is amended to read:
AB100,630,65 71.04 (7) (f) 9. Gross Notwithstanding any other provision of this subsection,
6gross
receipts and gain or loss from the sale or exchange of securities.
AB100, s. 1287 7Section 1287. 71.05 (6) (b) 28. (intro.) of the statutes is amended to read:
AB100,630,148 71.05 (6) (b) 28. (intro.) An amount paid by a claimant for tuition expenses for
9a student who is the claimant or who is the claimant's child and the claimant's
10dependent who is claimed under section 151 (c) of the Internal Revenue Code, to
11attend any university, college, technical college or a school approved under s. 45.54
1238.50, that is located in Wisconsin or to attend a public vocational school or public
13institution of higher education in Minnesota under the Minnesota-Wisconsin
14reciprocity agreement under s. 39.47, calculated as follows:
AB100, s. 1288 15Section 1288. 71.05 (6) (b) 28. a. of the statutes is amended to read:
AB100,630,2016 71.05 (6) (b) 28. a. An amount equal to not more than $3,000 $5,100, or twice
17the average amount charged by the board of regents of the University of Wisconsin
18System at 4-year institutions for resident undergraduate academic fees for the most
19recent fall semester, as determined by the board of regents by September 1 of that
20semester, whichever is greater,
per student for each year to which the claim relates.
AB100, s. 1289 21Section 1289. 71.05 (22) (f) 4. a. of the statutes is amended to read:
AB100,631,222 71.05 (22) (f) 4. a. For taxable years beginning after December 31, 1997, in the
23case of a taxpayer with respect to whom a deduction exemption under s. 71.07 (8) sub.
24(23) (b) 2.
is allowable to another person, the Wisconsin standard deduction shall be

1the lesser of the amount under subd. 4. b. or one of the amounts calculated under
2subd. 4. c., whichever amount under subd. 4. c. is greater.
AB100, s. 1290 3Section 1290. 71.05 (22) (g) of the statutes is amended to read:
AB100,631,134 71.05 (22) (g) Nonresidents. With respect to nonresident natural persons
5deriving income from property located, business transacted or personal or
6professional services performed in this state, including natural persons changing
7their domicile into or from this state, the Wisconsin standard deduction and itemized
8deductions are based on federal adjusted gross income, and as provided in par. (f) 4.,
9and are limited by such fraction of that amount as Wisconsin adjusted gross income
10is of federal adjusted gross income. In this paragraph, for married persons filing
11separately "adjusted gross income" means the separate adjusted gross income of
12each spouse, and for married persons filing jointly "adjusted gross income" means the
13total adjusted gross income of both spouses.
AB100, s. 1291 14Section 1291. 71.05 (22) (h) of the statutes is amended to read:
AB100,631,2415 71.05 (22) (h) Part-year residents. If a person and that person's spouse are not
16both domiciled in this state during the entire taxable year, the Wisconsin standard
17deduction or itemized deduction on a joint return is determined by multiplying the
18Wisconsin standard deduction or itemized deduction, each calculated on the basis of
19federal adjusted gross income, and as provided in par. (f) 4., by a fraction the
20numerator of which is their joint Wisconsin adjusted gross income and the
21denominator of which is their joint federal adjusted gross income. For a married
22person who is not domiciled in this state for the entire taxable year and who files a
23separate return, the Wisconsin standard deduction and itemized deduction are
24determined under par. (g).
AB100, s. 1292 25Section 1292. 71.07 (2dd) (a) 1. of the statutes is amended to read:
AB100,632,4
171.07 (2dd) (a) 1. "Day care center benefits" means benefits provided at a day
2care facility that is licensed under s. 48.65 or 48.69 49.98 or 49.99 and that for
3compensation provides care for at least 6 children or benefits provided at a facility
4for persons who are physically or mentally incapable of caring for themselves.
AB100, s. 1293 5Section 1293. 71.07 (2di) (b) 1. of the statutes is repealed.
AB100, s. 1294 6Section 1294. 71.07 (2dL) (c) 1. of the statutes is repealed.
AB100, s. 1295 7Section 1295. 71.07 (2dL) (c) 2. of the statutes is renumbered 71.07 (2dL) (c).
AB100, s. 1296 8Section 1296. 71.07 (2dL) (d) of the statutes is amended to read:
AB100,632,119 71.07 (2dL) (d) Except as provided in par. (c) 2., the carry-over provisions of
10s. 71.28 (4) (e) and (f) as they relate to the credit under s. 71.28 (4) relate to the credit
11under this subsection and apply as if the development zone continued to exist.
AB100, s. 1297 12Section 1297. 71.07 (2dm) (hm) of the statutes is amended to read:
AB100,632,2013 71.07 (2dm) (hm) Credits claimed A claimant may claim the credit under this
14subsection, including any credits carried over, may be offset only against the amount
15of the tax otherwise due under this subchapter attributable to income from the
16business operations of the claimant in the development zone; except that a claimant
17in a development zone under s. 560.795 (1) (e) may offset credits, including any
18credits carried over, against the amount of the tax otherwise due under this
19subchapter attributable to all of the claimant's income; and against the tax
20attributable to income from directly related business operations of the claimant
.
AB100, s. 1298 21Section 1298. 71.07 (2dr) (a) of the statutes is amended to read:
AB100,633,1922 71.07 (2dr) (a) Credit. Any person may credit against taxes otherwise due
23under this chapter an amount equal to 5% of the amount obtained by subtracting
24from the person's qualified research expenses, as defined in section 41 of the internal
25revenue code, except that "qualified research expenses" include only expenses

1incurred by the claimant in a development zone under subch. VI of ch. 560, except
2that a taxpayer may elect the alternative computation under section 41 (c) (4) of the
3Internal Revenue Code and that election applies until the department permits its
4revocation and except that "qualified research expenses" do not include
5compensation used in computing the credit under sub. (2dj) nor research expenses
6incurred before the claimant is certified for tax benefits under s. 560.765 (3), the
7person's base amount, as defined in section 41 (c) of the internal revenue code, in a
8development zone, except that gross receipts used in calculating the base amount
9means gross receipts from sales attributable to Wisconsin under s. 71.04 (7) (b) 1. and
102. and (d), (db), (dd), (df), (dg), (dh), and (dm) and research expenses used in
11calculating the base amount include research expenses incurred before the claimant
12is certified for tax benefits under s. 560.765 (3), in a development zone, if the claimant
13submits with the claimant's return a copy of the claimant's certification for tax
14benefits under s. 560.765 (3) and a statement from the department of commerce
15verifying the claimant's qualified research expenses for research conducted
16exclusively in a development zone. The rules under s. 73.03 (35) apply to the credit
17under this paragraph. The rules under sub. (2di) (f) and (g), as they apply to the
18credit under that subsection, apply to claims under this paragraph. Section 41 (h)
19of the internal revenue code does not apply to the credit under this paragraph.
AB100, s. 1299 20Section 1299. 71.07 (2dx) (a) 5. of the statutes is amended to read:
AB100,634,921 71.07 (2dx) (a) 5. "Member of a targeted group" means a person who resides
22in an empowerment zone, or an enterprise community, that the U.S. government
23designates
area designated by the federal government as an economic revitalization
24area
, a person who is employed in an unsubsidized job but meets the eligibility
25requirements under s. 49.145 (2) and (3) for a Wisconsin works Works employment

1position, a person who is employed in a trial job, as defined in s. 49.141 (1) (n), a
2person who is eligible for child care assistance under s. 49.155, a person who is a
3vocational rehabilitation referral, an economically disadvantaged youth, an
4economically disadvantaged veteran, a supplemental security income recipient, a
5general assistance recipient, an economically disadvantaged ex-convict, a qualified
6summer youth employee, as defined in 26 USC 51 (d) (7), a dislocated worker, as
7defined in 29 USC 2801 (9), or a food stamp recipient; , if the person has been certified
8in the manner under sub. (2dj) (am) 3. by a designated local agency, as defined in sub.
9(2dj) (am) 2.
AB100, s. 1300 10Section 1300. 71.07 (2dx) (b) (intro.) of the statutes is amended to read:
AB100,634,1611 71.07 (2dx) (b) Credit. (intro.) Except as provided in pars. (be) and (bg) and
12in s. 73.03 (35), and subject to s. 560.785, for any taxable year for which the person
13is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3),
14560.797 (4) or 560.798 (3), any person may claim as a credit against the taxes imposed
15on the person's income from the person's business activities in a development zone
16otherwise due under this chapter the following amounts:
AB100, s. 1301 17Section 1301. 71.07 (2dx) (b) 2. of the statutes is amended to read:
AB100,634,2218 71.07 (2dx) (b) 2. The amount determined by multiplying the amount
19determined under s. 560.785 (1) (b) by the number of full-time jobs created in a
20development zone and filled by a member of a targeted group and by then subtracting
21the subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid
22under s. 49.147 (3) (d) 5.
for those jobs.
AB100, s. 1302 23Section 1302. 71.07 (2dx) (b) 3. of the statutes is amended to read:
AB100,635,324 71.07 (2dx) (b) 3. The amount determined by multiplying the amount
25determined under s. 560.785 (1) (c) by the number of full-time jobs created in a

1development zone and not filled by a member of a targeted group and by then
2subtracting the subsidies paid under s. 49.147 (3) (a) or the subsidies and
3reimbursements paid under s. 49.147 (3) (d) 5.
for those jobs.
AB100, s. 1303 4Section 1303. 71.07 (2dx) (b) 4. of the statutes is amended to read:
AB100,635,115 71.07 (2dx) (b) 4. The amount determined by multiplying the amount
6determined under s. 560.785 (1) (bm) by the number of full-time jobs retained, as
7provided in the rules under s. 560.785, excluding jobs for which a credit has been
8claimed under sub. (2dj), in an enterprise development zone under s. 560.797 and for
9which significant capital investment was made and by then subtracting the
10subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid
11under s. 49.147 (3) (d) 5.
for those jobs.
AB100, s. 1304 12Section 1304. 71.07 (2dx) (b) 5. of the statutes is amended to read:
AB100,635,1813 71.07 (2dx) (b) 5. The amount determined by multiplying the amount
14determined under s. 560.785 (1) (c) by the number of full-time jobs retained, as
15provided in the rules under s. 560.785, excluding jobs for which a credit has been
16claimed under sub. (2dj), in a development zone and not filled by a member of a
17targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) or
18the subsidies and reimbursements paid under s. 49.147 (3) (d) 5.
for those jobs.
AB100, s. 1305 19Section 1305. 71.07 (3m) (a) 1. b. of the statutes is amended to read:
AB100,635,2320 71.07 (3m) (a) 1. b. For partnerships except publicly traded partnerships
21treated as corporations under s. 71.22 (1) (1k), or limited liability companies, except
22limited liability companies treated as corporations under s. 71.22 (1) (1k), "claimant"
23means each individual partner or member.
AB100, s. 1306 24Section 1306. 71.07 (3n) (title) of the statutes is amended to read:
AB100,635,2525 71.07 (3n) (title) Dairy Livestock farm investment credit.
AB100, s. 1307
1Section 1307. 71.07 (3n) (a) 1m. of the statutes is repealed.
AB100, s. 1308 2Section 1308. 71.07 (3n) (a) 1n. of the statutes is created to read:
AB100,636,63 71.07 (3n) (a) 1n. "Livestock" means domestic animals used in this state in the
4production of food, fiber, or other animal products and includes bovine animals,
5swine, poultry, fish, sheep, and goats. "Livestock" does not include equine animals,
6deer, ratites, camelidae, or mink.
AB100, s. 1309 7Section 1309. 71.07 (3n) (a) 1p. of the statutes is repealed.
AB100, s. 1310 8Section 1310. 71.07 (3n) (a) 2. (intro.) of the statutes is amended to read:
AB100,636,139 71.07 (3n) (a) 2. (intro.) "Dairy "Livestock farm modernization or expansion"
10means the construction, the improvement, or the acquisition of buildings or facilities,
11or the acquisition of equipment, for dairy animal livestock housing, livestock
12confinement, animal livestock feeding, milk production, or waste management,
13including the following, if used exclusively related to dairy animals livestock:
AB100, s. 1311 14Section 1311. 71.07 (3n) (b) of the statutes is amended to read:
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