AB1-engrossed,20 6Section 20. 71.05 (6) (b) 47. dm. of the statutes is created to read:
AB1-engrossed,10,117 71.05 (6) (b) 47. dm. No person may claim a deduction under this subdivision
8for taxable years beginning after December 31, 2013, except that a claimant who is
9first eligible to claim a deduction under this subdivision for a taxable year beginning
10after December 31, 2012, and before January 1, 2014, may claim the deduction the
11following taxable year.
AB1-engrossed,21 12Section 21. 71.05 (8) (b) of the statutes, as affected by 2013 Wisconsin Act 20,
13is renumbered 71.05 (8) (b) 1.
AB1-engrossed,22 14Section 22. 71.05 (8) (b) 2. of the statutes is created to read:
AB1-engrossed,10,1815 71.05 (8) (b) 2. The taxpayer need not make the offset against Wisconsin
16modified taxable income of the 2 years preceding the loss, as provided under subd.
171., if the taxpayer chooses not to carry back the net operating loss to the 2 years
18preceding the loss.
AB1-engrossed,23 19Section 23. 71.05 (8) (c) of the statutes is created to read:
AB1-engrossed,10,2120 71.05 (8) (c) The department shall not pay interest on any overpayment that
21results from the carry-back of a net operating loss.
AB1-engrossed,24 22Section 24. 71.06 (1q) (a) of the statutes, as created by 2013 Wisconsin Act 20,
23is amended to read:
AB1-engrossed,10,2524 71.06 (1q) (a) On all taxable income from $0 to $7,500, 4.40 percent, except that
25for taxable years beginning after December 31, 2013, 4.0 percent
.
AB1-engrossed,25
1Section 25. 71.06 (2) (i) 1. of the statutes, as created by 2013 Wisconsin Act
220
, is amended to read:
AB1-engrossed,11,43 71.06 (2) (i) 1. On all taxable income from $0 to $10,000, 4.40 percent, except
4that for taxable years beginning after December 31, 2013, 4.0 percent
.
AB1-engrossed,26 5Section 26. 71.06 (2) (j) 1. of the statutes, as created by 2013 Wisconsin Act
620
, is amended to read:
AB1-engrossed,11,87 71.06 (2) (j) 1. On all taxable income from $0 to $5,000, 4.40 percent, except that
8for taxable years beginning after December 31, 2013, 4.0 percent
.
AB1-engrossed,27 9Section 27. 71.07 (4k) (b) 1. of the statutes, as created by 2013 Wisconsin Act
1020
, is amended to read:
AB1-engrossed,12,511 71.07 (4k) (b) 1. Subject to the limitations provided in this subsection, and
12except as provided in subds. 2. and 3., for taxable years beginning after December
1331, 2012, an individual, a partner of a partnership, a shareholder of a tax-option
14corporation, or a member of a limited liability company may claim a credit against
15the tax imposed under s. 71.02 or 71.08, as allocated under par. (d), an amount equal
16to 5 percent of the amount obtained by subtracting from the individual's,
17partnership's, tax-option corporation's, or limited liability company's qualified
18research expenses, as defined in section 41 of the Internal Revenue Code, except that
19"qualified research expenses" includes only expenses incurred by the individual,
20partnership, tax-option corporation, or the limited liability company, incurred for
21research conducted in this state for the taxable year, except that a taxpayer may elect
22the alternative computation under section 41 (c) (4) of the Internal Revenue Code
23and that election applies until the department permits its revocation, except as
24provided in par. (c), and except that "qualified research expenses" does not include
25compensation used in computing the credit under subs. (2dj) and (2dx), the entity's

1base amount, as defined in section 41 (c) of the Internal Revenue Code, except that
2gross receipts used in calculating the base amount means gross receipts from sales
3attributable to Wisconsin under ss. 71.04 (7) (b) 1. and 2., (df), (dh), (dj), and (dk).
4Section 41 (h) of the Internal Revenue Code does not apply to the credit under this
5subdivision.
AB1-engrossed,28 6Section 28. 71.07 (5i) (c) 3. of the statutes is created to read:
AB1-engrossed,12,87 71.07 (5i) (c) 3. No credit may be claimed under this subsection based on an
8amount paid under par. (b) after December 31, 2013.
AB1-engrossed,29 9Section 29. 71.07 (5m) (a) 4. of the statutes is amended to read:
AB1-engrossed,12,1110 71.07 (5m) (a) 4. "Net tax liability" means a claimant's income tax liability after
11he or she completes the computations listed in s. 71.10 (4) (a) to (dr) (d).
AB1-engrossed,30 12Section 30. 71.07 (5n) (b) (intro.) of the statutes is amended to read:
AB1-engrossed,12,1713 71.07 (5n) (b) Filing claims. (intro.) Subject to the limitations provided in this
14subsection, a claimant may claim as a credit against the tax imposed under s. ss.
1571.02 and 71.08, up to the amount of the tax, an amount equal to one of the following
16percentages of the claimant's eligible qualified production activities income in the
17taxable year:
AB1-engrossed,31 18Section 31. 71.07 (9r) (a) of the statutes is amended to read:
AB1-engrossed,13,319 71.07 (9r) (a) For taxable years beginning on or after August 1, 1988, any
20natural person may credit against taxes otherwise due under s. 71.02 or 71.08 an
21amount equal to 25% of the costs of preservation or rehabilitation of historic property
22located in this state, including architectural fees and costs incurred in preparing
23nomination forms for listing in the national register of historic places in Wisconsin
24or the state register of historic places, if the nomination is made within 5 years prior
25to submission of a preservation or rehabilitation plan under par. (b) 3. b., and if the

1physical work of construction or destruction in preparation for construction begins
2after December 31, 1988, except that the credit may not exceed $10,000, or $5,000
3for married persons filing separately, for any preservation or rehabilitation project.
AB1-engrossed,32 4Section 32 . 71.08 (1) (intro.) of the statutes, as affected by 2013 Wisconsin Act
562
, is amended to read:
AB1-engrossed,13,156 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married
7couple filing jointly, trust, or estate under s. 71.02, not considering the credits under
8ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2dy), (3m), (3n), (3p),
9(3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (5b), (5d), (5e), (5f), (5h), (5i), (5j), (5n), (6), (6e),
10(8r), (9e), and (9m), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (2m), (3),
11(3n), (3t), and (3w), 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (2m), (3),
12(3n), (3t), and (3w), 71.57 to 71.61, and 71.613 and subch. VIII and payments to other
13states under s. 71.07 (7), is less than the tax under this section, there is imposed on
14that natural person, married couple filing jointly, trust or estate, instead of the tax
15under s. 71.02, an alternative minimum tax computed as follows:
AB1-engrossed,33 16Section 33 . 71.08 (1) (intro.) of the statutes, as affected by 2013 Wisconsin Acts
1762
and .... (this act), is amended to read:
AB1-engrossed,14,218 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married
19couple filing jointly, trust, or estate under s. 71.02, not considering the credits under
20ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2dy), (3m), (3n), (3p),
21(3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (4k), (5b), (5d), (5e), (5f), (5h), (5i), (5j), (5n), (6),
22(6e), (8r), (9e), and (9m), and (9r), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx),
23(1dy), (2m), (3), (3n), (3t), and (3w), 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx),
24(1dy), (2m), (3), (3n), (3t), and (3w), 71.57 to 71.61, and 71.613 and subch. VIII and
25payments to other states under s. 71.07 (7), is less than the tax under this section,

1there is imposed on that natural person, married couple filing jointly, trust or estate,
2instead of the tax under s. 71.02, an alternative minimum tax computed as follows:
AB1-engrossed,34 3Section 34. 71.10 (4) (cr) of the statutes is renumbered 71.10 (4) (fn).
AB1-engrossed,35 4Section 35. 71.10 (4) (dr) of the statutes is renumbered 71.10 (4) (fp).
AB1-engrossed,36 5Section 36. 71.10 (4) (er) of the statutes, as created by 2013 Wisconsin Act 20,
6is renumbered 71.10 (4) (fr).
AB1-engrossed,36d 7Section 36d. 71.26 (4) (a) of the statutes is amended to read:
AB1-engrossed,14,248 71.26 (4) (a) Except as provided in par. (b), a corporation, except a tax-option
9corporation or an insurer to which s. 71.45 (4) applies, may offset against its
10Wisconsin net business income any Wisconsin net business loss sustained in any of
11the next 15 20 preceding taxable years, if the corporation was subject to taxation
12under this chapter in the taxable year in which the loss was sustained, to the extent
13not offset by other items of Wisconsin income in the loss year and by Wisconsin net
14business income of any year between the loss year and the taxable year for which an
15offset is claimed. For purposes of this subsection Wisconsin net business income or
16loss shall consist of all the income attributable to the operation of a trade or business
17in this state, less the business expenses allowed as deductions in computing net
18income. The Wisconsin net business income or loss of corporations engaged in
19business within and without the state shall be determined under s. 71.25 (6) and (10)
20to (12). Nonapportionable losses having a Wisconsin situs under s. 71.25 (5) (b) shall
21be included in Wisconsin net business loss; and nonapportionable income having a
22Wisconsin situs under s. 71.25 (5) (b), whether taxable or exempt, shall be included
23in other items of Wisconsin income and Wisconsin net business income for purposes
24of this subsection.
AB1-engrossed,37 25Section 37. 71.28 (5i) (c) 3. of the statutes is created to read:
AB1-engrossed,15,2
171.28 (5i) (c) 3. No credit may be claimed under this subsection based on an
2amount paid under par. (b) after December 31, 2013.
AB1-engrossed,38 3Section 38. 71.28 (9s) (d) 3. of the statutes, as created by 2013 Wisconsin Act
420
, is amended to read:
AB1-engrossed,15,105 71.28 (9s) (d) 3. No credit may be claimed under this subsection for taxable
6years beginning after December 31, 2013. Credits under this subsection for taxable
7years that begin before January 1, 2014, may be carried forward to taxable years that
8begin after December 31, 2013
, except that a claimant who is first eligible to claim
9a credit under this subsection for taxable years beginning after December 31, 2012,
10and before January 1, 2014, may claim the credit in the following taxable year
.
AB1-engrossed,38d 11Section 38d. 71.45 (4) (a) of the statutes is amended to read:
AB1-engrossed,15,2112 71.45 (4) (a) Except as provided in par. (b), insurers computing tax under this
13subchapter may subtract from Wisconsin net income any Wisconsin net business loss
14sustained in any of the next 15 20 preceding taxable years to the extent not offset by
15Wisconsin net business income of any year between the loss year and the taxable year
16for which an offset is claimed and computed without regard to sub. (2) (a) 8. and 9.
17and this subsection and limited to the amount of net income, but no loss incurred for
18a taxable year before taxable year 1987 by a nonprofit service plan of sickness care
19under ch. 148, or dental care under s. 447.13 may be treated as a net business loss
20of the successor service insurer under ch. 613 operating by virtue of s. 148.03 or
21447.13.
AB1-engrossed,39 22Section 39. 71.47 (5i) (c) 3. of the statutes is created to read:
AB1-engrossed,15,2423 71.47 (5i) (c) 3. No credit may be claimed under this subsection based on an
24amount paid under par. (b) after December 31, 2013.
AB1-engrossed,40
1Section 40. 71.47 (9s) (d) 3. of the statutes, as created by 2013 Wisconsin Act
220
, is amended to read:
AB1-engrossed,16,83 71.47 (9s) (d) 3. No credit may be claimed under this subsection for taxable
4years beginning after December 31, 2013. Credits under this subsection for taxable
5years that begin before January 1, 2014, may be carried forward to taxable years that
6begin after December 31, 2013
, except that a claimant who is first eligible to claim
7a credit under this subsection for taxable years beginning after December 31, 2012,
8and before January 1, 2014, may claim the credit in the following taxable year
.
AB1-engrossed,41 9Section 41. 71.52 (6) of the statutes is amended to read:
AB1-engrossed,17,2310 71.52 (6) "Income" means the sum of Wisconsin adjusted gross income and the
11following amounts, to the extent not included in Wisconsin adjusted gross income:
12maintenance payments (except foster care maintenance and supplementary
13payments excludable under section 131 of the internal revenue code), support money,
14cash public assistance (not including credit granted under this subchapter and
15amounts under s. 46.27), cash benefits paid by counties under s. 59.53 (21), the gross
16amount of any pension or annuity (including railroad retirement benefits, all
17payments received under the federal social security act and veterans disability
18pensions), nontaxable interest received from the federal government or any of its
19instrumentalities, nontaxable interest received on state or municipal bonds,
20worker's compensation, unemployment insurance, the gross amount of "loss of time"
21insurance, compensation and other cash benefits received from the United States for
22past or present service in the armed forces, scholarship and fellowship gifts or
23income, capital gains, gain on the sale of a personal residence excluded under section
24121 of the internal revenue code, dividends, income of a nonresident or part-year
25resident who is married to a full-year resident, housing allowances provided to

1members of the clergy, the amount by which a resident manager's rent is reduced,
2nontaxable income of an American Indian, nontaxable income from sources outside
3this state and nontaxable deferred compensation. Intangible drilling costs,
4depletion allowances and depreciation, including first-year depreciation allowances
5under section 179 of the internal revenue code, amortization, contributions to
6individual retirement accounts under section 219 of the internal revenue code,
7contributions to Keogh plans, net operating loss carry-backs and carry-forwards
8and capital loss carry-forwards deducted in determining Wisconsin adjusted gross
9income shall be added to "income". "Income" does not include gifts from natural
10persons, cash reimbursement payments made under title XX of the federal social
11security act, surplus food or other relief in kind supplied by a governmental agency,
12the gain on the sale of a personal residence deferred under section 1034 of the
13internal revenue code or nonrecognized gain from involuntary conversions under
14section 1033 of the internal revenue code. Amounts not included in adjusted gross
15income but added to "income" under this subsection in a previous year and repaid
16may be subtracted from income for the year during which they are repaid.
17Scholarship and fellowship gifts or income that are included in Wisconsin adjusted
18gross income and that were added to household income for purposes of determining
19the credit under this subchapter in a previous year may be subtracted from income
20for the current year in determining the credit under this subchapter. A marital
21property agreement or unilateral statement under ch. 766 has no effect in computing
22"income" for a person whose homestead is not the same as the homestead of that
23person's spouse.
AB1-engrossed,41d 24Section 41d. 71.98 (3) of the statutes, as created by 2013 Wisconsin Act 20,
25is amended to read:
AB1-engrossed,18,7
171.98 (3) Depreciation, depletion, and amortization. For taxable years
2beginning after December 31, 2013, and for purposes of computing depreciation,
3depletion,
and amortization, the Internal Revenue Code means the federal Internal
4Revenue Code in effect on January 1, 2014. For taxable years beginning after
5December 31, 2013, and for purposes of computing depletion, the Internal Revenue
6code means the federal Internal Revenue code in effect for the year in which the
7property is placed in service.
AB1-engrossed,41e 8Section 41e. 77.54 (9d) of the statutes is created to read:
AB1-engrossed,18,179 77.54 (9d) The sales price from the sales of and the storage, use, or other
10consumption of tangible personal property, or items or property under s. 77.52 (1) (b)
11or (c), sold to a construction contractor who, in fulfillment of a real property
12construction activity, transfers the tangible personal property, or item, or property
13under s. 77.52 (1) (b) or (c), to an entity described under sub. (9a) (b) or (f), if such
14tangible personal property, item, or property becomes a component of a facility in this
15state that is owned by the entity. In this subsection, "facility" means any building,
16shelter, parking lot, parking garage, athletic field, athletic park, storm sewer, or
17water supply system, but does not include a highway, street, or road.
AB1-engrossed,42 18Section 42. 77.54 (61) (intro.), (a) and (b) of the statutes, as created by 2013
19Wisconsin Act 20
, are amended to read:
AB1-engrossed,19,220 77.54 (61) (intro.) The sales price from the sale of and the storage, use, or other
21consumption of the following by a person primarily engaged, as determined by the
22department,
in commercial printing, not including screen printing or book printing,
23without publishing, except for gray goods; printing, or printing and binding, books
24or pamphlets without publishing the books or pamphlets; or performing prepress
25and postpress services in support of printing activities
book printing, or support

1activities for printing described under 323111, 323117, and 323120 of the North
2American Industry Classification System
:
AB1-engrossed,19,53 (a) Computers and servers that are used primarily to store copies of the product
4that are sent to a digital printer, a platemaking machine, or a printing press or used
5primarily in prepress or postpress activities
.
AB1-engrossed,19,86 (b) Tangible personal property purchased from out-of-state sellers that are
7temporarily stored, remain idle, and not used in this state for not more than 180 days
8and that are then delivered and used solely outside of this state.
AB1-engrossed,43 9Section 43. 77.54 (61) (c) of the statutes is created to read:
AB1-engrossed,19,1010 77.54 (61) (c) In this subsection:
AB1-engrossed,19,1211 1. "Postpress activities" include paper bronzing, die-cutting, edging,
12embossing, folding, gilding, gluing, and indexing.
AB1-engrossed,19,1413 2. "Prepress activities" include making print-ready plates, typesetting, trade
14binding, and sample mounting.
AB1-engrossed,19,1515 3. "Temporarily" means not more than 180 days.
AB1-engrossed,44 16Section 44. 238.16 (3) (intro.) of the statutes, as affected by 2013 Wisconsin
17Act 20
, is amended to read:
AB1-engrossed,19,2418 238.16 (3) Eligibility for tax benefits. (intro.) A person certified under sub.
19(2) may receive tax benefits under this section if, in each year for which the person
20claims tax benefits under this section, the person increases net employment in this
21state
in the person's business above the net employment in this state in the person's
22business during the year before the person was certified under sub. (2), as
23determined by the corporation under its policies and procedures, and one of the
24following applies:
AB1-engrossed,9143 25Section 9143. Nonstatutory provisions; Technical College System.
AB1-engrossed,20,4
1(1) Aid notification. By October 15, 2014, the state technical college system
2board shall notify each technical college district board of the amount of aid it will
3receive under section 38.16 (4) of the statutes, as created by this act, on February 20,
42015.
AB1-engrossed,9337 5Section 9337. Initial applicability; Revenue.
AB1-engrossed,20,7 6(1) Commercial printing. The treatment of section 77.54 (61) (intro.), (a), (b),
7and (c) of the statutes first applies retroactively to sales made on October 1, 2013.
AB1-engrossed,20,9 8(1m) Building materials. The treatment of section 77.54 (9d) of the statutes
9first applies to contracts entered into on July 1, 2015.
AB1-engrossed,20,13 10(2) Research and rehabilitation credits. The treatment of sections 71.07 (4k)
11(b) 1., (5m) (a) 4., and (9r) (a), 71.08 (1) (intro.) (as it relates to the state historic
12rehabilitation credit and the research credit), and 71.10 (4) (dr) and (er) of the
13statutes first applies to taxable years beginning on January 1, 2014.
AB1-engrossed,20,14 14(3) Carry-backs.
AB1-engrossed,20,1715 (a) The renumbering of section 71.05 (8) (b) of the statutes and the creation of
16section 71.05 (8) (b) 2. of the statutes first apply to taxable years beginning on
17January 1, 2014.
AB1-engrossed,20,19 18(am) The treatment of section 71.52 (6) of the statutes first applies retroactively
19to taxable years beginning on January 1, 2012.
AB1-engrossed,20,21 20(4) Overpayments. The treatment of section 71.05 (8) (c) of the statutes first
21applies to refunds paid on January 1, 2014.
AB1-engrossed,20,25 22(5) Manufacturing and agriculture credits. The treatment of sections 71.07
23(5n) (b) (intro.), 71.08 (1) (intro.) (as it relates to the manufacturing and agriculture
24credit), and 71.10 (4) (cr) of the statutes first applies retroactively to taxable years
25beginning on January 1, 2013.
AB1-engrossed,21,3
1(5m) Net operating losses; depletion. The treatment of sections 71.26 (4) (a),
271.45 (4) (a), and 71.98 (3) of the statutes first applies to taxable years beginning on
3January 1, 2014.
AB1-engrossed,9400 4Section 9400. Effective dates; general. Except as otherwise provided in
5Sections 9401 to 9452 of this act, this act takes effect on the day after publication.
AB1-engrossed,9437 6Section 9437. Effective dates; Revenue.
AB1-engrossed,21,8 7(1) Commercial printing. The treatment of section 77.54 (61) (intro.), (a), (b),
8and (c) of the statutes takes effect retroactively to October 1, 2013.
AB1-engrossed,21,109 (1m) Building materials. The treatment of section 77.54 (9d) of the statutes
10takes effect on July 1, 2015.
AB1-engrossed,21,13 11(2) Manufacturing and agriculture credits. The treatment of sections 71.07
12(5n) (b) (intro.), 71.08 (1) (intro.) (by Section 32), and 71.10 (4) (cr) of the statutes
13takes effect retroactively on January 1, 2013.
AB1-engrossed,21,16 14(3) Research and rehabilitation credits. The treatment of sections 71.07 (4k)
15(b) 1., (5m) (a) 4., and (9r) (a), 71.08 (1) (intro.) (by Section 33), and 71.10 (4) (dr) and
16(er) of the statutes takes effect on January 1, 2014.
AB1-engrossed,21,18 17(3d) Carry-backs. The treatment of section 71.52 (6) of the statutes takes effect
18retroactively to January 1, 2012.
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