AB40: Bill Text

AB40,647,15 71.05 (26) (a) 4. "Qualified Wisconsin business" means a business certified by the Wisconsin Economic Development Corporation under s. 238.146, 2011 stats., or registered with the department under s. 73.03 (69).

AB40,1316 Section 1316. 71.05 (26) (b) (intro.) of the statutes is amended to read:

AB40,647,19 71.05 (26) (b) (intro.) For taxable years beginning after December 31, 2010, and before January 1, 2014, a claimant may subtract from federal adjusted gross income any amount of a long-term capital gain if the claimant does all of the following:

AB40,1317 Section 1317. 71.05 (26) (bm) of the statutes is created to read:

AB40,647,23 71.05 (26) (bm) For taxable years beginning after December 31, 2013, a claimant may subtract from federal adjusted gross income any amount of a long-term capital gain if the claimant does all of the following:

AB40,647,25 1. Within 180 days after the sale of the asset that generated the gain, invests all of the gain in a qualified Wisconsin business.

AB40,648,6 2. After making the investment as described under subd. 1., notifies the department, on a form prepared by the department, that the claimant will not declare the gain on the claimant's income tax return because the claimant has reinvested the capital gain as described under subd. 1. The form shall be sent to the department along with the claimant's income tax return for the year to which the claim relates.

AB40,1318 Section 1318. 71.05 (26) (c) of the statutes is amended to read:

AB40,648,12 71.05 (26) (c) The basis of the investment described in par. (b) 2. shall be calculated by subtracting the gain described in par. (b) 1. from the amount of the investment described in par. (b) 2. The basis of the investment described in par. (bm) 1. shall be calculated by subtracting the gain described in par. (bm) 1. from the amount of the investment described in par. (bm) 1.

AB40,1319 Section 1319. 71.05 (26) (d) of the statutes is amended to read:

AB40,648,16 71.05 (26) (d) If a claimant defers the payment of income taxes on a capital gain under this subsection, the claimant may not use the gain described under par. (b) 1. to net capital gains and losses, as described under sub. (10) (c).

AB40,1320 Section 1320. 71.05 (26) (f) of the statutes is amended to read:

AB40,648,20 71.05 (26) (f) If a claimant claims the a subtraction for a capital gain under this subsection par. (b) or (bm), the gain described under par. (b) 1. may not be used as a qualifying gain under sub. (25).

AB40,1321 Section 1321. 71.06 (1p) (intro.) of the statutes is amended to read:

AB40,649,2 71.06 (1p) Fiduciaries, single individuals and heads of households; after 2000 2001 to 2012. (intro.) The tax to be assessed, levied and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households shall be computed at the following rates for taxable years beginning after December 31, 2000, and before January 1, 2013:

AB40,1322 Section 1322. 71.06 (1q) of the statutes is created to read:

AB40,649,8 71.06 (1q) Fiduciaries, single individuals, and heads of households; after 2012. (intro.) The tax to be assessed, levied, and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households shall be computed at the following rates for taxable years beginning after December 31, 2012:

AB40,649,9 (a) On all taxable income from $0 to $7,500, 4.5 percent.

AB40,649,11 (b) On all taxable income exceeding $7,500 but not exceeding $15,000, 5.94 percent.

AB40,649,13 (c) On all taxable income exceeding $15,000 but not exceeding $112,500, 6.36 percent.

AB40,649,15 (d) On all taxable income exceeding $112,500 but not exceeding $225,000, 6.75 percent.

AB40,649,16 (e) On all taxable income exceeding $225,000, 7.75 percent.

AB40,1323 Section 1323. 71.06 (2) (g) (intro.) of the statutes is amended to read:

AB40,649,19 71.06 (2) (g) (intro.) For joint returns, for taxable years beginning after December 31, 2000, and before January 1, 2013:

AB40,1324 Section 1324. 71.06 (2) (h) (intro.) of the statutes is amended to read:

AB40,649,22 71.06 (2) (h) (intro.) For married persons filing separately, for taxable years beginning after December 31, 2000, and before January 1, 2013:

AB40,1325 Section 1325. 71.06 (2) (i) of the statutes is created to read:

AB40,649,25 71.06 (2) (i) For joint returns, for taxable years beginning after December 31, 2012:

AB40,650,1 1. On all taxable income from $0 to $10,000, 4.5 percent.

AB40,650,3 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 5.94 percent.

AB40,650,5 3. On all taxable income exceeding $20,000 but not exceeding $150,000, 6.36 percent.

AB40,650,7 4. On all taxable income exceeding $150,000 but not exceeding $300,000, 6.75 percent.

AB40,650,8 5. On all taxable income exceeding $300,000, 7.75 percent.

AB40,1326 Section 1326. 71.06 (2) (j) of the statutes is created to read:

AB40,650,11 71.06 (2) (j) For married persons filing separately, for taxable years beginning after December 31, 2012:

AB40,650,12 1. On all taxable income from $0 to $5,000, 4.5 percent.

AB40,650,14 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 5.94 percent.

AB40,650,16 3. On all taxable income exceeding $10,000 but not exceeding $75,000, 6.36 percent.

AB40,650,18 4. On all taxable income exceeding $75,000 but not exceeding $150,000, 6.75 percent.

AB40,650,19 5. On all taxable income exceeding $150,000, 7.75 percent.

AB40,1327 Section 1327. 71.06 (2e) (a) of the statutes is amended to read:

AB40,651,21 71.06 (2e) (a) For taxable years beginning after December 31, 1998, and before January 1, 2000, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2) (c) and (d), and for taxable years beginning after December 31, 1999, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1n), (1p) (a) to (c), (1q) (a) to (c), and (2) (e), (f), (g) 1. to 3., and (h) 1. to 3., (i) 1. to 3., and (j) 1. to 3., shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1997, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2000, and before January 1, 2002, the dollar amount in the top bracket under subs. (1p) (c) and (d), (2) (g) 3. and 4. and (h) 3. and 4. shall be increased by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1999, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2011, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year. Each amount that is revised under this paragraph shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this paragraph and incorporate the changes into the income tax forms and instructions.

AB40,1328 Section 1328. 71.06 (2e) (b) of the statutes is amended to read:

AB40,652,14 71.06 (2e) (b) For taxable years beginning after December 31, 2009, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1p) (d), (1q) (d), and (2) (g) 4. and, (h) 4., (i) 4., and (j) 4., and the dollar amount in the top bracket under subs. (1p) (e), (1q) (e), and (2) (g) 5. and, (h) 5., (i) 5., and (j) 5., shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2008, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2011, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year. Each amount that is revised under this paragraph shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this paragraph and incorporate the changes into the income tax forms and instructions.

AB40,1329 Section 1329. 71.06 (2e) (c) of the statutes is created to read:

AB40,652,21 71.06 (2e) (c) Each amount that is revised under this subsection shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this subsection and incorporate the changes into the income tax forms and instructions.

AB40,1330 Section 1330. 71.06 (2m) of the statutes is amended to read:

AB40,653,2 71.06 (2m) Rate changes. If a rate under sub. (1), (1m), (1n), (1p), (1q), or (2) changes during a taxable year, the taxpayer shall compute the tax for that taxable year by the methods applicable to the federal income tax under section 15 of the internal revenue code Internal Revenue Code.

AB40,1331 Section 1331. 71.06 (2s) (d) of the statutes is amended to read:

AB40,653,16 71.06 (2s) (d) For taxable years beginning after December 31, 2000, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1p), (1q), and (2) (g) and, (h), (i), and (j) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately "adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly "adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1p), (1q), and (2) (g) and, (h), (i), and (j) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

AB40,1332 Section 1332. 71.07 (2dj) (am) 4h. of the statutes is amended to read:

AB40,653,23 71.07 (2dj) (am) 4h. Modify section 51 (a) of the internal revenue code Internal Revenue Code so that the amount of the credit is 25% of the qualified first-year wages if the wages are paid to an applicant for a Wisconsin works Works employment position for service either in an unsubsidized position or in a trial job under s. 49.147 (3), 2011 stats., and so that the amount of the credit is 20% of the qualified first-year wages if the wages are not paid to such an applicant.

AB40,1333 Section 1333. 71.07 (2dx) (a) 4. of the statutes is amended to read:

AB40,654,7 71.07 (2dx) (a) 4. "Full-time job" means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay that is equal to at least 150% of the federal minimum wage and receives benefits that are not required by federal or state law. "Full-time job" does not include initial training before an employment position begins has the meaning given in s. 238.30 (2m).

AB40,1334 Section 1334. 71.07 (2dx) (a) 5. of the statutes is amended to read:

AB40,654,22 71.07 (2dx) (a) 5. "Member of a targeted group" means a person who resides in an area designated by the federal government as an economic revitalization area, a person who is employed in an unsubsidized job but meets the eligibility requirements under s. 49.145 (2) and (3) for a Wisconsin Works employment position, a person who is employed in a trial job, as defined in s. 49.141 (1) (n), 2011 stats., or in a real work, real pay project position under s. 49.147 (3m) trial employment match program job, as defined in s. 49.141 (1) (n), a person who is eligible for child care assistance under s. 49.155, a person who is a vocational rehabilitation referral, an economically disadvantaged youth, an economically disadvantaged veteran, a supplemental security income recipient, a general assistance recipient, an economically disadvantaged ex-convict, a qualified summer youth employee, as defined in 26 USC 51 (d) (7), a dislocated worker, as defined in 29 USC 2801 (9), or a food stamp recipient, if the person has been certified in the manner under sub. (2dj) (am) 3. by a designated local agency, as defined in sub. (2dj) (am) 2.

AB40,1335 Section 1335. 71.07 (2dx) (b) 2. of the statutes is amended to read:

AB40,655,3 71.07 (2dx) (b) 2. The amount determined by multiplying the amount determined under s. 238.385 (1) (b) or s. 560.785 (1) (b), 2009 stats., by the number of full-time jobs created in a development zone and filled by a member of a targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid under s. 49.147 (3m) (c) for those jobs.

AB40,1336 Section 1336. 71.07 (2dx) (b) 3. of the statutes is amended to read:

AB40,655,9 71.07 (2dx) (b) 3. The amount determined by multiplying the amount determined under s. 238.385 (1) (c) or s. 560.785 (1) (c), 2009 stats., by the number of full-time jobs created in a development zone and not filled by a member of a targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid under s. 49.147 (3m) (c) for those jobs.

AB40,1337 Section 1337. 71.07 (2dx) (b) 4. of the statutes is amended to read:

AB40,655,18 71.07 (2dx) (b) 4. The amount determined by multiplying the amount determined under s. 238.385 (1) (bm) or s. 560.785 (1) (bm), 2009 stats., by the number of full-time jobs retained, as provided in the rules under s. 238.385 or s. 560.785, 2009 stats., excluding jobs for which a credit has been claimed under sub. (2dj), in an enterprise development zone under s. 238.397 or s. 560.797, 2009 stats., and for which significant capital investment was made and by then subtracting the subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid under s. 49.147 (3m) (c) for those jobs.

AB40,1338 Section 1338. 71.07 (2dx) (b) 5. of the statutes is amended to read:

AB40,656,2 71.07 (2dx) (b) 5. The amount determined by multiplying the amount determined under s. 238.385 (1) (c) or s. 560.785 (1) (c), 2009 stats., by the number of full-time jobs retained, as provided in the rules under s. 238.385 or s. 560.785, 2009 stats., excluding jobs for which a credit has been claimed under sub. (2dj), in a development zone and not filled by a member of a targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a) or the subsidies and reimbursements paid under s. 49.147 (3m) (c) for those jobs.

AB40,1339 Section 1339. 71.07 (3w) (b) 1. a. of the statutes is amended to read:

AB40,656,12 71.07 (3w) (b) 1. a. The number of full-time employees whose annual wages are greater than $20,000 the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year, minus the number of full-time employees whose annual wages were greater than $20,000 the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the area that comprises the enterprise zone in the base year.

AB40,1340 Section 1340. 71.07 (3w) (b) 1. b. of the statutes is amended to read:

AB40,656,22 71.07 (3w) (b) 1. b. The number of full-time employees whose annual wages are greater than $20,000 the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the state in the taxable year, minus the number of full-time employees whose annual wages were greater than $20,000 the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the state in the base year.

AB40,1341 Section 1341. 71.07 (3w) (b) 2. of the statutes is amended to read:

AB40,657,8 71.07 (3w) (b) 2. Determine the claimant's average zone payroll by dividing total wages for full-time employees whose annual wages are greater than $20,000 the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year by the number of full-time employees whose annual wages are greater than $20,000 the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality or greater than $30,000 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year.

AB40,1342 Section 1342. 71.07 (3w) (b) 3. of the statutes is amended to read:

AB40,657,14 71.07 (3w) (b) 3. For employees in a tier I county or municipality, subtract $20,000 the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage from the amount determined under subd. 2. and for employees in a tier II county or municipality, subtract $30,000 from the amount determined under subd. 2.

AB40,1343 Section 1343. 71.07 (3w) (bm) 2. of the statutes is amended to read:

AB40,658,4 71.07 (3w) (bm) 2. In addition to the credits under par. (b) and subds. 1., 3., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount equal to the percentage, as determined under s. 238.399 or s. 560.799, 2009 stats., not to exceed 7 percent, of the claimant's zone payroll paid in the taxable year to all of the claimant's full-time employees whose annual wages are greater than $20,000 the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality, not including the wages paid to the employees determined under par. (b) 1., or greater than $30,000 in a tier II county or municipality, not including the wages paid to the employees determined under par. (b) 1., and who the claimant employed in the enterprise zone in the taxable year, if the total number of such employees is equal to or greater than the total number of such employees in the base year. A claimant may claim a credit under this subdivision for no more than 5 consecutive taxable years.

AB40,1344 Section 1344. 71.07 (5d) (c) 1. of the statutes is repealed.

AB40,1345 Section 1345. 71.07 (5i) (b) of the statutes is amended to read:

AB40,658,13 71.07 (5i) (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2011, and before January 1, 2014, a claimant may claim as a credit against the taxes imposed under ss. 71.02 and 71.08, up to the amount of those taxes, an amount equal to 50 percent of the amount the claimant paid in the taxable year for information technology hardware or software that is used to maintain medical records in electronic form, if the claimant is a health care provider, as defined in s. 146.81 (1) (a) to (p).

AB40,1346 Section 1346. 71.07 (5r) (a) 2. of the statutes is amended to read:

AB40,658,16 71.07 (5r) (a) 2. "Course of instruction" has the meaning given in s. 38.50 440.55 (1) (c).

AB40,1347 Section 1347. 71.07 (5r) (a) 6. b. of the statutes is amended to read:

AB40,658,19 71.07 (5r) (a) 6. b. A school approved under s. 38.50 440.55, if the delivery of education occurs in this state.

AB40,1348 Section 1348. 71.07 (6e) (a) 2. d. of the statutes is created to read:

AB40,659,3 71.07 (6e) (a) 2. d. An individual who had served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces; who was a resident of this state at the time of entry into that active service or who had been a resident of this state for any consecutive 5-year period after entry into that active duty service; who was a resident of this state at the time of his or her death; and following the individual's death, his or her spouse began to receive, and continues to receive, dependency and indemnity compensation, as defined in 38 USC 101 (14).

AB40,1349 Section 1349. 71.10 (5k) (i) of the statutes is amended to read:

AB40,659,12 71.10 (5k) (i) Appropriations. From the moneys received from designations for the Badger Chapter, an amount equal to the sum of administrative expenses, including data processing costs, certified under par. (h) 1. shall be deposited in the general fund and credited to the appropriation account under s. 20.566 (1) (hp), and the net amount remaining that is certified under par. (h) 3. shall be credited to the appropriation under s. 20.435 (1) 20.855 (4) (gd) and the department shall annually pay that certified net amount to the Badger Chapter for its Wisconsin Disaster Relief Fund.

AB40,1350 Section 1350. 71.125 (1) of the statutes is amended to read:

AB40,659,17 71.125 (1) Except as provided in sub. (2), the tax imposed by this chapter on individuals and the rates under s. 71.06 (1), (1m), (1n), (1p), (1q   ), and (2) shall apply to the Wisconsin taxable income of estates or trusts, except nuclear decommissioning trust or reserve funds, and that tax shall be paid by the fiduciary.

AB40,1351 Section 1351. 71.125 (2) of the statutes is amended to read:

AB40,659,23 71.125 (2) Each electing small business trust, as defined in section 1361 (e) (1) of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1), (1m), (1n) or, (1p), or (1q), whichever taxable year is applicable, on its income as computed under section 641 of the Internal Revenue Code, as modified by s. 71.05 (6) to (12), (19) and (20).