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:
AB100,636,2015 71.07 (3n) (b) Subject to the limitations provided in this subsection, for taxable
16years that begin after December 31, 2003, and before January 1, 2010, a claimant
17may claim as a credit against the tax imposed under ss. 71.02 and 71.08 an amount
18equal to 10% of the amount the claimant paid in the taxable year for dairy livestock
19farm modernization or expansion related to the operation of the claimant's dairy
20livestock farm.
AB100, s. 1312 21Section 1312. 71.07 (10) of the statutes is amended to read:
AB100,637,222 71.07 (10) Credits not allowed. The credits under s. 71.28 (4) and (5) may not
23be claimed by partners, including partners of a publicly traded partnership treated
24as a corporation under s. 71.22 (1) (1k), members of a limited liability company,

1including members of a limited liability company treated as a corporation under s.
277.22 (1) (1k), or shareholders of a tax-option corporation.
AB100, s. 1313 3Section 1313. 71.10 (5g) of the statutes is created to read:
AB100,637,44 71.10 (5g) Veterans trust fund donations. (a) Definitions. In this subsection:
AB100,637,55 1. "Department" means the department of revenue.
AB100,637,66 2. "Veterans trust fund" means the fund under s. 25.36.
AB100,637,107 (b) Voluntary payments. 1. `Designation on return.' Every individual filing an
8income tax return who has a tax liability or is entitled to a tax refund may designate
9on the return any amount of additional payment or any amount of a refund due that
10individual as a veterans trust fund donation.
AB100,637,1311 2. `Designation added to tax owed.' If the individual owes any tax, the
12individual shall remit in full the tax due and the amount designated on the return
13as a veterans trust fund donation when the individual files a tax return.
AB100,637,1714 3. `Designation deducted from refund.' Except as provided in par. (d), if the
15individual is owed a refund for that year after crediting under ss. 71.75 (9) and 71.80
16(3) and (3m), the department of revenue shall deduct the amount designated on the
17return as a veterans trust fund donation from the amount of the refund.
AB100,637,2118 (c) Errors; failure to remit correct amount. If an individual who owes taxes fails
19to remit an amount equal to or in excess of the total of the actual tax due, after error
20corrections, and the amount designated on the return as a veterans trust fund
21donation:
AB100,638,222 1. The department shall reduce the designation for the veterans trust fund to
23reflect the amount remitted in excess of the actual tax due, after error corrections,
24if the individual remitted an amount in excess of the actual tax due, after error

1corrections, but less than the total of the actual tax due, after error corrections, and
2the amount originally designated on the return as a veterans trust fund donation.
AB100,638,43 2. The designation for the veterans trust fund donation is void if the individual
4remitted an amount equal to or less than the actual tax due, after error corrections.
AB100,638,115 (d) Errors; insufficient refund. If an individual is owed a refund which does not
6equal or exceed the amount designated on the return as a veterans trust fund
7donation, after crediting under ss. 71.75 (9) and 71.80 (3) and (3m) and after error
8corrections, the department shall reduce the designation for the veterans trust fund
9donation to reflect the actual amount of the refund that the individual is otherwise
10owed, after crediting under ss. 71.75 (9) and 71.80 (3) and (3m) and after error
11corrections.
AB100,638,1312 (e) Conditions. If an individual places any conditions on a designation for the
13veterans trust fund donation, the designation is void.
AB100,638,1614 (f) Void designation. If a designation for the veterans trust fund donation is
15void, the department shall disregard the designation and determine amounts due,
16owed, refunded, and received without regard to the void designation.
AB100,638,1817 (g) Tax return. The secretary of revenue shall provide a place for the
18designations under this subsection on the individual income tax return.
AB100,638,2119 (h) Certification of amounts. Annually, on or before September 15, the
20secretary of revenue shall certify to the department of veterans affairs, the
21department of administration, and the state treasurer:
AB100,638,2422 1. The total amount of the administrative costs, including data processing
23costs, incurred by the department in administering this subsection during the
24previous fiscal year.
AB100,639,2
12. The total amount received from all designations for veterans trust fund
2donations made by taxpayers during the previous fiscal year.
AB100,639,53 3. The net amount remaining after the administrative costs, including data
4processing costs, under subd. 1. are subtracted from the total received under subd.
52.
AB100,639,116 (i) Appropriations. From the moneys received from designations for veterans
7trust fund donations, an amount equal to the sum of administrative expenses,
8including data processing costs, certified under par. (h) 1. shall be deposited into the
9general fund and credited to the appropriation account under s. 20.566 (1) (hp), and
10the net amount remaining that is certified under par. (h) 3. shall be deposited into
11the veterans trust fund and used for veterans programs under s. 25.36 (1).
AB100,639,1812 (j) Amounts subject to refund. Amounts designated as veterans trust fund
13donations under this subsection are not subject to refund to the taxpayer unless the
14taxpayer submits information to the satisfaction of the department, within 18
15months after the date on which the taxes are due or the date on which the return is
16filed, whichever is later, that the amount designated is clearly in error. Any refund
17granted by the department under this paragraph shall be deducted from the moneys
18received under this subsection in the fiscal year for which the refund is certified.
AB100, s. 1314 19Section 1314. 71.10 (6) (a) of the statutes is amended to read:
AB100,640,220 71.10 (6) (a) Joint returns. Persons filing a joint return are jointly and severally
21liable for the tax, interest, penalties, fees, additions to tax and additional
22assessments under this chapter applicable to the return. A Except as provided in
23par. (e), a
person shall be relieved of liability in regard to a joint return in the manner
24specified in section 6013 (e) 6015 (a) to (d) and (f) of the internal revenue code,

1notwithstanding the amount or percentage of the understatement
Internal Revenue
2Code
.
AB100, s. 1315 3Section 1315. 71.10 (6) (b) of the statutes is amended to read:
AB100,640,154 71.10 (6) (b) Separate returns. A Except as provided in par. (e), a spouse filing
5a separate return may be relieved of liability for the tax, interest, penalties, fees,
6additions to tax and additional assessments under this chapter with regard to
7unreported marital property income
in the manner specified in section 66 (c) of the
8internal revenue code Internal Revenue Code. The department may not apply ch.
9766 in assessing a taxpayer with respect to marital property income the taxpayer did
10not report if that taxpayer failed to notify the taxpayer's spouse about the amount
11and nature of the income before the due date, including extensions, for filing the
12return for the taxable year in which the income was derived. The department shall
13include all of that marital property income in the gross income of the taxpayer and
14exclude all of that marital property income from the gross income of the taxpayer's
15spouse.
AB100, s. 1316 16Section 1316. 71.10 (6) (e) of the statutes is created to read:
AB100,640,2117 71.10 (6) (e) Application for relief. A person who seeks relief from liability
18under par. (a) or (b) shall apply for relief with the department, on a form prescribed
19by the department, within 2 years after the date on which the department first
20begins collection activities after the effective date of this paragraph .... [revisor
21inserts date].
AB100, s. 1317 22Section 1317. 71.10 (6m) (a) of the statutes is amended to read:
AB100,641,1023 71.10 (6m) (a) A Except as provided in par. (c), a formerly married or remarried
24person filing a return for a period during which the person was married may be
25relieved of liability for the tax, interest, penalties, fees, additions to tax and

1additional assessments under this chapter for unreported marital property income
2from that period as if the person were a spouse under section 66 (c) of the internal
3revenue code
Internal Revenue Code. The department may not apply ch. 766 in
4assessing the former spouse of the person with respect to marital property income
5that the former spouse did not report if that former spouse failed to notify the person
6about the amount and nature of the income before the due date, including extensions,
7for filing the return for the taxable year during which the income was derived. The
8department shall include all of that marital property income in the gross income of
9the former spouse and exclude all of that marital property income from the gross
10income of the person.
AB100, s. 1318 11Section 1318. 71.10 (6m) (c) of the statutes is created to read:
AB100,641,1312 71.10 (6m) (c) A person who seeks relief from liability under par. (a) shall apply
13for relief with the department as provided under sub. (6) (e).
AB100, s. 1319 14Section 1319. 71.195 of the statutes is amended to read:
AB100,641,18 1571.195 Definition. In this subchapter, "partnership" includes limited liability
16companies and other entities that are treated as partnerships under the Internal
17Revenue Code, and "partnership" does not include publicly traded partnerships
18treated as corporations under s. 71.22 (1) (1k).
AB100, s. 1320 19Section 1320. 71.22 (1) of the statutes is renumbered 71.22 (1k).
AB100, s. 1321 20Section 1321. 71.22 (1g) of the statutes is created to read:
AB100,642,221 71.22 (1g) For purposes of s. 71.25 (9) (df), (dg), and (dh), "commercial domicile"
22means the location from which a trade or business is principally managed and
23directed, based on any factors the department determines are appropriate, including
24the location where the greatest number of employees of the trade or business work,

1have their office or base of operations, or from which the employees are directed or
2controlled.
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