Under current law, municipalities, school districts, and certain nonprofit
organizations are exempt from paying the sales tax and the use tax on purchases of
tangible personal property. To receive the sales tax or use tax exemption, the
municipality, school district, or nonprofit organization must purchase the tangible
personal property. A construction contractor hired by the municipality, school
district, or nonprofit organization may not receive the exemption for property
purchased by the contractor to be used for a municipality, school district, or nonprofit
organization construction project.
Under this bill, the sale of tangible personal property that becomes a component
of a facility in this state that is owned by a municipality or nonprofit organization is
exempt from the sales tax and the use tax. The exemption applies to tangible
personal property purchased by a construction contractor who transfers the property
to the municipality or nonprofit organization as part of constructing the facility.
tax credits
Under current law, a person may claim the jobs tax credit if the Wisconsin
Economic Development Corporation certifies the person to receive the tax credit, the
person increases net employment in the person's business, and the person provides
certain wages or job training to its full-time employees. This bill specifies that to be
eligible for the jobs tax credit a person must increase net employment in the person's
business in this state. Therefore, under the bill, a person may qualify for the jobs tax

credit by relocating existing jobs to this state even if the number of individuals the
person's business employs nationwide does not increase. Similarly, under the bill,
a person does not qualify for the jobs tax credit by increasing the number of
individuals the person's business employs nationwide if the number of individuals
the person's business employs in this state does not increase.
Under current law, for income and franchise tax purposes, a taxpayer may not
claim a relocated business deduction or tax credit for taxable years beginning after
December 31, 2013. Under this bill, a taxpayer who is first eligible to claim a
relocated business deduction or tax credit for a taxable year beginning after
December 31, 2012, and before January 1, 2014, may claim the deduction or credit
in the following taxable year.
The bill also provides that the manufacturing and agriculture credit, the
research credit, and the state historic rehabilitation credit may be claimed against
the alternative minimum tax.
Finally, the bill makes technical changes to the electronic medical records tax
credit and to the sales and use tax exemption for tangible personal property used in
commercial printing.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB1-engrossed,1 1Section 1. 20.292 (1) (dp) of the statutes is created to read:
AB1-engrossed,4,42 20.292 (1) (dp) Property tax relief aid. A sum sufficient equal to the amount
3necessary to distribute the property tax relief aid to technical college districts under
4s. 38.16 (4).
AB1-engrossed,2 5Section 2. 38.16 (title) of the statutes is amended to read:
AB1-engrossed,4,6 638.16 (title) District tax levy; revenue limit; property tax relief aid.
AB1-engrossed,3 7Section 3. 38.16 (3) (a) 1m. of the statutes is created to read:
AB1-engrossed,4,98 38.16 (3) (a) 1m. "Equalized value" excludes the value of tax incremental
9districts.
AB1-engrossed,4 10Section 4. 38.16 (3) (a) 2. of the statutes, as affected by 2013 Wisconsin Act 20,
11is amended to read:
AB1-engrossed,4,1312 38.16 (3) (a) 2. "Excess levy revenue" means the amount by which a district
13board's tax levy revenue exceeds the limit under this subsection.
AB1-engrossed,5
1Section 5. 38.16 (3) (a) 2w. of the statutes is created to read:
AB1-engrossed,5,32 38.16 (3) (a) 2w. "Revenue" means the sum of the tax levy and property tax
3relief aid under sub. (4).
AB1-engrossed,6 4Section 6. 38.16 (3) (b) of the statutes is repealed.
AB1-engrossed,7 5Section 7. 38.16 (3) (be) of the statutes, as created by 2013 Wisconsin Act 20,
6is amended to read:
AB1-engrossed,5,107 38.16 (3) (be) Notwithstanding sub. (1), no district board may increase its tax
8levy
revenue in 2013 the 2014-15 school year or in any school year thereafter by a
9percentage that exceeds the district's valuation factor, except as provided in pars.
10(bg) and (br).
AB1-engrossed,8 11Section 8. 38.16 (3) (bg) 2. of the statutes, as created by 2013 Wisconsin Act
1220
, is amended to read:
AB1-engrossed,5,2013 38.16 (3) (bg) 2. If a district board's allowable levy revenue under this
14subsection in 2013 the 2014-15 school year, or any school year thereafter, is greater
15than its actual levy revenue in that school year, the limit otherwise applicable to the
16district board under this subsection in the succeeding school year is increased by the
17difference between the prior school year's allowable levy revenue and the prior school
18year's actual levy revenue, as determined by the department of revenue, up to a
19maximum increase of 0.5 percent of the actual levy revenue in that prior school year,
20if the district board approves the increase by a three-fourths vote.
AB1-engrossed,9 21Section 9. 38.16 (3) (br) 1. of the statutes, as affected by 2013 Wisconsin Act
2220
, is amended to read:
AB1-engrossed,6,1023 38.16 (3) (br) 1. If a district board wishes to exceed the limit otherwise
24applicable to the district under this subsection, it shall adopt a resolution supporting
25inclusion in the final district budget of an amount equal to the proposed excess levy

1revenue. The resolution shall be filed as provided in s. 8.37. Within 10 days after
2adopting the resolution, the district board shall notify the board of the scheduled date
3of the referendum and submit a copy of the resolution to the board. The district board
4shall call a special referendum for the purpose of submitting the resolution to the
5electors of the district for approval or rejection. In lieu of a special referendum, the
6district board may specify that the referendum be held at the next succeeding spring
7primary or election or partisan primary or general election, if such election is to be
8held not sooner than 70 days after the filing of the resolution of the district board.
9The district board shall certify the results of the referendum to the board within 10
10days after the referendum is held.
AB1-engrossed,10 11Section 10. 38.16 (3) (br) 2. of the statutes is amended to read:
AB1-engrossed,6,1612 38.16 (3) (br) 2. The district board shall publish type A, B, C, D, and E notices
13of the referendum under s. 10.01 (2). Notwithstanding s. 10.01 (2) (a), the type A
14notice shall include a statement of the amount of the excess levy revenue specified
15in subd. 1. and a copy of the resolution under subd. 1. Section 5.01 (1) applies in the
16event of failure to comply with the notice requirements of this subdivision.
AB1-engrossed,11 17Section 11. 38.16 (3) (c) (intro.) of the statutes, as affected by 2013 Wisconsin
18Act 20
, is amended to read:
AB1-engrossed,6,2119 38.16 (3) (c) (intro.) Except as provided in par. (d), if the board determines that
20a district board imposed an excess levy exceeded its limit under this subsection, the
21board shall do all of the following:
AB1-engrossed,12 22Section 12. 38.16 (3) (c) 1. of the statutes is amended to read:
AB1-engrossed,6,2523 38.16 (3) (c) 1. Reduce the amount of state aid payments to the district board
24in the school year in which the district board imposed the excess levy exceeded its
25limit
by an amount equal to the amount of the excess levy revenue.
AB1-engrossed,13
1Section 13. 38.16 (3) (c) 3. of the statutes, as affected by 2013 Wisconsin Act
220
, is amended to read:
AB1-engrossed,7,53 38.16 (3) (c) 3. Ensure that the amount of the excess levy revenue is not
4included in determining the limit under this subsection for the district board for the
5following year.
AB1-engrossed,14 6Section 14. 38.16 (3) (c) 4. of the statutes is amended to read:
AB1-engrossed,7,107 38.16 (3) (c) 4. Ensure that, if a district board's excess levy revenue exceeds the
8amount of state aid that may be reduced under subd. 1., the excess amount is
9subtracted from state aid payments in the following years until the total amount of
10the excess levy revenue is subtracted from the state aid payments.
AB1-engrossed,15 11Section 15. 38.16 (3) (d) of the statutes is amended to read:
AB1-engrossed,7,1512 38.16 (3) (d) The department may issue a finding that a district board is not
13liable for a penalty that would otherwise be imposed under par. (c) if the department
14determines that the district board's excess levy revenue is caused by one of the
15following clerical errors:
AB1-engrossed,7,1916 1. The department, through mistake or inadvertence, has assessed to any
17county or taxation district, in the current year or in the previous year, a greater or
18lesser valuation for any year than should have been assessed, causing the district
19board's levy to be erroneous in a way that directly causes an excess levy revenue.
AB1-engrossed,7,2220 2. A taxation district clerk or a county clerk, through mistake or inadvertence
21in preparing or delivering the tax roll, causes a district board's levy to be erroneous
22in a way that directly causes an excess levy revenue.
AB1-engrossed,16 23Section 16. 38.16 (4) of the statutes is created to read:
AB1-engrossed,8,3
138.16 (4) On February 20, 2015, and annually thereafter on the 3rd Friday in
2February, the board shall distribute to each district board, from the appropriation
3under s. 20.292 (1) (dp), the amount determined as follows:
AB1-engrossed,8,64 (a) For the payment in 2015, divide the district's equalized value as of January
51, 2014, by the total equalized value of all districts as of January 1, 2014, and
6multiply the quotient by $406,000,000.
AB1-engrossed,8,87 (b) For the payment in 2016 and annually thereafter, the amount determined
8under par. (a).
AB1-engrossed,17 9Section 17. 71.05 (6) (b) 47. am. of the statutes, as affected by 2013 Wisconsin
10Act 20
, is amended to read:
AB1-engrossed,8,1911 71.05 (6) (b) 47. am. For taxable years beginning after December 31, 2010, and
12before January 1, 2014, for 2 consecutive taxable years beginning with the taxable
13year in which the claimant's business locates to this state from another state or
14another country and begins doing business in this state, as defined in s. 71.22 (1r),
15and subject to the limitations provided under subd. 47. d., dm., and e., the profit or
16loss from a trade or business as reported on federal income tax return schedules C
17and F or their equivalents, plus ordinary gain or loss on the sale of business assets,
18as determined under s. 71.01 (6), but not less than zero, multiplied by the
19apportionment fraction determined in s. 71.04 (4) and subject to s. 71.04 (7).
AB1-engrossed,18 20Section 18. 71.05 (6) (b) 47. b. of the statutes, as affected by 2013 Wisconsin
21Act 20
, is amended to read:
AB1-engrossed,9,1722 71.05 (6) (b) 47. b. With respect to partners and members of limited liability
23companies, for taxable years beginning after December 31, 2010, and before January
241, 2014, for 2 consecutive taxable years beginning with the taxable year in which the
25partnership's or limited liability company's business locates to this state from

1another state or another country and begins doing business in this state, as defined
2in s. 71.22 (1r), and subject to the limitations provided under subd. 47. d., dm., and
3e., the partner's or member's distributive share of taxable income as calculated under
4section 703 of the Internal Revenue Code; plus the items of income and gain under
5section 702 of the Internal Revenue Code, including taxable state and municipal
6bond interest and excluding nontaxable interest income or dividend income from
7federal government obligations; minus the items of loss and deduction under section
8756702 702 of the Internal Revenue Code, except items that are not deductible under
9s. 71.21; plus guaranteed payments to partners under section 707 (c) of the Internal
10Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL),
11(2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t),
12(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), and (8r); and plus or minus, as
13appropriate, transitional adjustments, depreciation differences, and basis
14differences under s. 71.05 (13), (15), (16), (17), and (19), multiplied by the
15apportionment fraction determined in s. 71.04 (4) and subject to s. 71.04 (7) or by
16separate accounting. No amounts subtracted under this subd. 47. b. may be included
17in the modification under par. (b) 9. or 9m.
AB1-engrossed,19 18Section 19. 71.05 (6) (b) 47. c. of the statutes, as affected by 2013 Wisconsin
19Act 20
, is amended to read:
AB1-engrossed,9,2520 71.05 (6) (b) 47. c. With respect to shareholders of a tax-option corporation, for
21taxable years beginning after December 31, 2010, and before January 1, 2014, for 2
22consecutive taxable years beginning with the taxable year in which the tax-option
23corporation's business locates to this state from another state or another country and
24begins doing business in this state, as defined in s. 71.22 (1r), and subject to the
25limitations provided under subd. 47. d., dm., and e., the shareholder's distributive

1share of the entity's net income or loss as determined under this chapter, including
2interest income from federal, state, and municipal government obligations,
3multiplied by the apportionment fraction determined in s. 71.25 (6m) and subject to
4s. 71.25 (9) or by separate accounting. No amounts subtracted under this subdivision
5may be included in the modification under par. (b) 9. or 9m.
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:
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