JR4 AB1: Bill Text Engrossed

AB1-engrossed,15,21 71.45 (4) (a) Except as provided in par. (b), insurers computing tax under this subchapter may subtract from Wisconsin net income any Wisconsin net business loss sustained in any of the next 15 20 preceding taxable years to the extent not offset by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed and computed without regard to sub. (2) (a) 8. and 9. and this subsection and limited to the amount of net income, but no loss incurred for a taxable year before taxable year 1987 by a nonprofit service plan of sickness care under ch. 148, or dental care under s. 447.13 may be treated as a net business loss of the successor service insurer under ch. 613 operating by virtue of s. 148.03 or 447.13.

AB1-engrossed,39 Section 39. 71.47 (5i) (c) 3. of the statutes is created to read:

AB1-engrossed,15,24 71.47 (5i) (c) 3. No credit may be claimed under this subsection based on an amount paid under par. (b) after December 31, 2013.

AB1-engrossed,40 Section 40. 71.47 (9s) (d) 3. of the statutes, as created by 2013 Wisconsin Act 20, is amended to read:

AB1-engrossed,16,8 71.47 (9s) (d) 3. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013. Credits under this subsection for taxable years that begin before January 1, 2014, may be carried forward to taxable years that begin after December 31, 2013, except that a claimant who is first eligible to claim a credit under this subsection for taxable years beginning after December 31, 2012, and before January 1, 2014, may claim the credit in the following taxable year.

AB1-engrossed,41 Section 41. 71.52 (6) of the statutes is amended to read:

AB1-engrossed,17,23 71.52 (6) "Income" means the sum of Wisconsin adjusted gross income and the following amounts, to the extent not included in Wisconsin adjusted gross income: maintenance payments (except foster care maintenance and supplementary payments excludable under section 131 of the internal revenue code), support money, cash public assistance (not including credit granted under this subchapter and amounts under s. 46.27), cash benefits paid by counties under s. 59.53 (21), the gross amount of any pension or annuity (including railroad retirement benefits, all payments received under the federal social security act and veterans disability pensions), nontaxable interest received from the federal government or any of its instrumentalities, nontaxable interest received on state or municipal bonds, worker's compensation, unemployment insurance, the gross amount of "loss of time" insurance, compensation and other cash benefits received from the United States for past or present service in the armed forces, scholarship and fellowship gifts or income, capital gains, gain on the sale of a personal residence excluded under section 121 of the internal revenue code, dividends, income of a nonresident or part-year resident who is married to a full-year resident, housing allowances provided to members of the clergy, the amount by which a resident manager's rent is reduced, nontaxable income of an American Indian, nontaxable income from sources outside this state and nontaxable deferred compensation. Intangible drilling costs, depletion allowances and depreciation, including first-year depreciation allowances under section 179 of the internal revenue code, amortization, contributions to individual retirement accounts under section 219 of the internal revenue code, contributions to Keogh plans, net operating loss carry-backs and carry-forwards and capital loss carry-forwards deducted in determining Wisconsin adjusted gross income shall be added to "income". "Income" does not include gifts from natural persons, cash reimbursement payments made under title XX of the federal social security act, surplus food or other relief in kind supplied by a governmental agency, the gain on the sale of a personal residence deferred under section 1034 of the internal revenue code or nonrecognized gain from involuntary conversions under section 1033 of the internal revenue code. Amounts not included in adjusted gross income but added to "income" under this subsection in a previous year and repaid may be subtracted from income for the year during which they are repaid. Scholarship and fellowship gifts or income that are included in Wisconsin adjusted gross income and that were added to household income for purposes of determining the credit under this subchapter in a previous year may be subtracted from income for the current year in determining the credit under this subchapter. A marital property agreement or unilateral statement under ch. 766 has no effect in computing "income" for a person whose homestead is not the same as the homestead of that person's spouse.

AB1-engrossed,41d Section 41d. 71.98 (3) of the statutes, as created by 2013 Wisconsin Act 20, is amended to read:

AB1-engrossed,18,7 71.98 (3) Depreciation, depletion, and amortization. For taxable years beginning after December 31, 2013, and for purposes of computing depreciation, depletion, and amortization, the Internal Revenue Code means the federal Internal Revenue Code in effect on January 1, 2014. For taxable years beginning after December 31, 2013, and for purposes of computing depletion, the Internal Revenue code means the federal Internal Revenue code in effect for the year in which the property is placed in service.

AB1-engrossed,41e Section 41e. 77.54 (9d) of the statutes is created to read:

AB1-engrossed,18,17 77.54 (9d) The sales price from the sales of and the storage, use, or other consumption of tangible personal property, or items or property under s. 77.52 (1) (b) or (c), sold to a construction contractor who, in fulfillment of a real property construction activity, transfers the tangible personal property, or item, or property under s. 77.52 (1) (b) or (c), to an entity described under sub. (9a) (b) or (f), if such tangible personal property, item, or property becomes a component of a facility in this state that is owned by the entity. In this subsection, "facility" means any building, shelter, parking lot, parking garage, athletic field, athletic park, storm sewer, or water supply system, but does not include a highway, street, or road.

AB1-engrossed,42 Section 42. 77.54 (61) (intro.), (a) and (b) of the statutes, as created by 2013 Wisconsin Act 20, are amended to read:

AB1-engrossed,19,2 77.54 (61) (intro.) The sales price from the sale of and the storage, use, or other consumption of the following by a person primarily engaged, as determined by the department, in commercial printing, not including screen printing or book printing, without publishing, except for gray goods; printing, or printing and binding, books or pamphlets without publishing the books or pamphlets; or performing prepress and postpress services in support of printing activities book printing, or support activities for printing described under 323111, 323117, and 323120 of the North American Industry Classification System:

AB1-engrossed,19,5 (a) Computers and servers that are used primarily to store copies of the product that are sent to a digital printer, a platemaking machine, or a printing press or used primarily in prepress or postpress activities.

AB1-engrossed,19,8 (b) Tangible personal property purchased from out-of-state sellers that are temporarily stored, remain idle, and not used in this state for not more than 180 days and that are then delivered and used solely outside of this state.

AB1-engrossed,43 Section 43. 77.54 (61) (c) of the statutes is created to read:

AB1-engrossed,19,10 77.54 (61) (c) In this subsection:

AB1-engrossed,19,12 1. "Postpress activities" include paper bronzing, die-cutting, edging, embossing, folding, gilding, gluing, and indexing.

AB1-engrossed,19,14 2. "Prepress activities" include making print-ready plates, typesetting, trade binding, and sample mounting.

AB1-engrossed,19,15 3. "Temporarily" means not more than 180 days.

AB1-engrossed,44 Section 44. 238.16 (3) (intro.) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB1-engrossed,19,24 238.16 (3) Eligibility for tax benefits. (intro.) A person certified under sub. (2) may receive tax benefits under this section if, in each year for which the person claims tax benefits under this section, the person increases net employment in this state in the person's business above the net employment in this state in the person's business during the year before the person was certified under sub. (2), as determined by the corporation under its policies and procedures, and one of the following applies:

AB1-engrossed,9143 Section 9143. Nonstatutory provisions; Technical College System.

AB1-engrossed,20,4 (1) Aid notification. By October 15, 2014, the state technical college system board shall notify each technical college district board of the amount of aid it will receive under section 38.16 (4) of the statutes, as created by this act, on February 20, 2015.

AB1-engrossed,9337 Section 9337. Initial applicability; Revenue.

AB1-engrossed,20,7 (1) Commercial printing. The treatment of section 77.54 (61) (intro.), (a), (b), and (c) of the statutes first applies retroactively to sales made on October 1, 2013.

AB1-engrossed,20,9 (1m) Building materials. The treatment of section 77.54 (9d) of the statutes first applies to contracts entered into on July 1, 2015.

AB1-engrossed,20,13 (2) Research and rehabilitation credits. The treatment of sections 71.07 (4k) (b) 1., (5m) (a) 4., and (9r) (a), 71.08 (1) (intro.) (as it relates to the state historic rehabilitation credit and the research credit), and 71.10 (4) (dr) and (er) of the statutes first applies to taxable years beginning on January 1, 2014.

AB1-engrossed,20,14 (3) Carry-backs.

AB1-engrossed,20,17 (a) The renumbering of section 71.05 (8) (b) of the statutes and the creation of section 71.05 (8) (b) 2. of the statutes first apply to taxable years beginning on January 1, 2014.

AB1-engrossed,20,19 (am) The treatment of section 71.52 (6) of the statutes first applies retroactively to taxable years beginning on January 1, 2012.

AB1-engrossed,20,21 (4) Overpayments. The treatment of section 71.05 (8) (c) of the statutes first applies to refunds paid on January 1, 2014.

AB1-engrossed,20,25 (5) Manufacturing and agriculture credits. The treatment of sections 71.07 (5n) (b) (intro.), 71.08 (1) (intro.) (as it relates to the manufacturing and agriculture credit), and 71.10 (4) (cr) of the statutes first applies retroactively to taxable years beginning on January 1, 2013.

AB1-engrossed,21,3 (5m) Net operating losses; depletion. The treatment of sections 71.26 (4) (a), 71.45 (4) (a), and 71.98 (3) of the statutes first applies to taxable years beginning on January 1, 2014.

AB1-engrossed,9400 Section 9400. Effective dates; general. Except as otherwise provided in Sections 9401 to 9452 of this act, this act takes effect on the day after publication.

AB1-engrossed,9437 Section 9437. Effective dates; Revenue.

AB1-engrossed,21,8 (1) Commercial printing. The treatment of section 77.54 (61) (intro.), (a), (b), and (c) of the statutes takes effect retroactively to October 1, 2013.

AB1-engrossed,21,10 (1m) Building materials. The treatment of section 77.54 (9d) of the statutes takes effect on July 1, 2015.

AB1-engrossed,21,13 (2) Manufacturing and agriculture credits. The treatment of sections 71.07 (5n) (b) (intro.), 71.08 (1) (intro.) (by Section 32), and 71.10 (4) (cr) of the statutes takes effect retroactively on January 1, 2013.

AB1-engrossed,21,16 (3) Research and rehabilitation credits. The treatment of sections 71.07 (4k) (b) 1., (5m) (a) 4., and (9r) (a), 71.08 (1) (intro.) (by Section 33), and 71.10 (4) (dr) and (er) of the statutes takes effect on January 1, 2014.

AB1-engrossed,21,18 (3d) Carry-backs. The treatment of section 71.52 (6) of the statutes takes effect retroactively to January 1, 2012.

AB1-engrossed,21,19 (End)