For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB378,1 1Section 1. 71.05 (6) (b) 47. am. of the statutes, as affected by 2013 Wisconsin
2Act 20
, is amended to read:
SB378,3,23 71.05 (6) (b) 47. am. For taxable years beginning after December 31, 2010, and
4before January 1, 2014, for 2 consecutive taxable years beginning with the taxable
5year in which the claimant's business locates to this state from another state or
6another country and begins doing business in this state, as defined in s. 71.22 (1r),
7and subject to the limitations provided under subd. 47. d., dm., and e., the profit or
8loss from a trade or business as reported on federal income tax return schedules C
9and F or their equivalents, plus ordinary gain or loss on the sale of business assets,

1as determined under s. 71.01 (6), but not less than zero, multiplied by the
2apportionment fraction determined in s. 71.04 (4) and subject to s. 71.04 (7).
SB378,2 3Section 2. 71.05 (6) (b) 47. b. of the statutes, as affected by 2013 Wisconsin Act
420
, is amended to read:
SB378,3,255 71.05 (6) (b) 47. b. With respect to partners and members of limited liability
6companies, for taxable years beginning after December 31, 2010, and before January
71, 2014, for 2 consecutive taxable years beginning with the taxable year in which the
8partnership's or limited liability company's business locates to this state from
9another state or another country and begins doing business in this state, as defined
10in s. 71.22 (1r), and subject to the limitations provided under subd. 47. d., dm., and
11e., the partner's or member's distributive share of taxable income as calculated under
12section 703 of the Internal Revenue Code; plus the items of income and gain under
13section 702 of the Internal Revenue Code, including taxable state and municipal
14bond interest and excluding nontaxable interest income or dividend income from
15federal government obligations; minus the items of loss and deduction under section
16756702 702 of the Internal Revenue Code, except items that are not deductible under
17s. 71.21; plus guaranteed payments to partners under section 707 (c) of the Internal
18Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL),
19(2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t),
20(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), and (8r); and plus or minus, as
21appropriate, transitional adjustments, depreciation differences, and basis
22differences under s. 71.05 (13), (15), (16), (17), and (19), multiplied by the
23apportionment fraction determined in s. 71.04 (4) and subject to s. 71.04 (7) or by
24separate accounting. No amounts subtracted under this subd. 47. b. may be included
25in the modification under par. (b) 9. or 9m.
SB378,3
1Section 3. 71.05 (6) (b) 47. c. of the statutes, as affected by 2013 Wisconsin Act
220
, is amended to read:
SB378,4,133 71.05 (6) (b) 47. c. With respect to shareholders of a tax-option corporation, for
4taxable years beginning after December 31, 2010, and before January 1, 2014, for 2
5consecutive taxable years beginning with the taxable year in which the tax-option
6corporation's business locates to this state from another state or another country and
7begins doing business in this state, as defined in s. 71.22 (1r), and subject to the
8limitations provided under subd. 47. d., dm., and e., the shareholder's distributive
9share of the entity's net income or loss as determined under this chapter, including
10interest income from federal, state, and municipal government obligations,
11multiplied by the apportionment fraction determined in s. 71.25 (6m) and subject to
12s. 71.25 (9) or by separate accounting. No amounts subtracted under this subdivision
13may be included in the modification under par. (b) 9. or 9m.
SB378,4 14Section 4. 71.05 (6) (b) 47. dm. of the statutes is created to read:
SB378,4,1915 71.05 (6) (b) 47. dm. No person may claim a deduction under this subdivision
16for taxable years beginning after December 31, 2013, except that a claimant who is
17first eligible to claim a deduction under this subdivision for a taxable year beginning
18after December 31, 2012, and before January 1, 2014, may claim the deduction the
19following taxable year.
SB378,5 20Section 5. 71.05 (8) (b) of the statutes, as affected by 2013 Wisconsin Act 20,
21is renumbered 71.05 (8) (b) 1.
SB378,6 22Section 6. 71.05 (8) (b) 2. of the statutes is created to read:
SB378,5,223 71.05 (8) (b) 2. The taxpayer need not make the offset against Wisconsin
24modified taxable income of the 2 years preceding the loss, as provided under subd.

11., if the taxpayer chooses not to carry back the net operating loss to the 2 years
2preceding the loss.
SB378,7 3Section 7. 71.05 (8) (c) of the statutes is created to read:
SB378,5,54 71.05 (8) (c) The department shall not pay interest on any overpayment that
5results from the carry-back of a net operating loss.
SB378,8 6Section 8. 71.07 (5i) (c) 3. of the statutes is created to read:
SB378,5,87 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.
SB378,9 9Section 9. 71.07 (5n) (b) (intro.) of the statutes is amended to read:
SB378,5,1410 71.07 (5n) (b) Filing claims. (intro.) Subject to the limitations provided in this
11subsection, a claimant may claim as a credit against the tax imposed under s. ss.
1271.02 and 71.08, up to the amount of the tax, an amount equal to one of the following
13percentages of the claimant's eligible qualified production activities income in the
14taxable year:
SB378,10 15Section 10. 71.08 (1) (intro.) of the statutes is amended to read:
SB378,5,2516 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married
17couple filing jointly, trust, or estate under s. 71.02, not considering the credits under
18ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2dy), (3m), (3n), (3p),
19(3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (5b), (5d), (5e), (5f), (5h), (5i), (5j), (5n), (6), (6e),
20(8r), and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (2m), (3), (3n),
21(3t), and (3w), 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (2m), (3), (3n),
22(3t), and (3w), 71.57 to 71.61, and 71.613 and subch. VIII and payments to other
23states under s. 71.07 (7), is less than the tax under this section, there is imposed on
24that natural person, married couple filing jointly, trust or estate, instead of the tax
25under s. 71.02, an alternative minimum tax computed as follows:
SB378,11
1Section 11. 71.10 (4) (cr) of the statutes is renumbered 71.10 (4) (fm).
SB378,12 2Section 12. 71.28 (5i) (c) 3. of the statutes is created to read:
SB378,6,43 71.28 (5i) (c) 3. No credit may be claimed under this subsection based on an
4amount paid under par. (b) after December 31, 2013.
SB378,13 5Section 13. 71.28 (9s) (d) 3. of the statutes, as created by 2013 Wisconsin Act
620
, is amended to read:
SB378,6,127 71.28 (9s) (d) 3. No credit may be claimed under this subsection for taxable
8years beginning after December 31, 2013. Credits under this subsection for taxable
9years that begin before January 1, 2014, may be carried forward to taxable years that
10begin after December 31, 2013
, except that a claimant who is first eligible to claim
11a credit under this subsection for taxable years beginning after December 31, 2012,
12and before January 1, 2014, may claim the credit in the following taxable year
.
SB378,14 13Section 14. 71.47 (5i) (c) 3. of the statutes is created to read:
SB378,6,1514 71.47 (5i) (c) 3. No credit may be claimed under this subsection based on an
15amount paid under par. (b) after December 31, 2013.
SB378,15 16Section 15. 71.47 (9s) (d) 3. of the statutes, as created by 2013 Wisconsin Act
1720
, is amended to read:
SB378,6,2318 71.47 (9s) (d) 3. No credit may be claimed under this subsection for taxable
19years beginning after December 31, 2013. Credits under this subsection for taxable
20years that begin before January 1, 2014, may be carried forward to taxable years that
21begin after December 31, 2013
, except that a claimant who is first eligible to claim
22a credit under this subsection for taxable years beginning after December 31, 2012,
23and before January 1, 2014, may claim the credit in the following taxable year
.
SB378,16 24Section 16. 71.52 (6) of the statutes is amended to read:
SB378,8,14
171.52 (6) "Income" means the sum of Wisconsin adjusted gross income and the
2following amounts, to the extent not included in Wisconsin adjusted gross income:
3maintenance payments (except foster care maintenance and supplementary
4payments excludable under section 131 of the internal revenue code), support money,
5cash public assistance (not including credit granted under this subchapter and
6amounts under s. 46.27), cash benefits paid by counties under s. 59.53 (21), the gross
7amount of any pension or annuity (including railroad retirement benefits, all
8payments received under the federal social security act and veterans disability
9pensions), nontaxable interest received from the federal government or any of its
10instrumentalities, nontaxable interest received on state or municipal bonds,
11worker's compensation, unemployment insurance, the gross amount of "loss of time"
12insurance, compensation and other cash benefits received from the United States for
13past or present service in the armed forces, scholarship and fellowship gifts or
14income, capital gains, gain on the sale of a personal residence excluded under section
15121 of the internal revenue code, dividends, income of a nonresident or part-year
16resident who is married to a full-year resident, housing allowances provided to
17members of the clergy, the amount by which a resident manager's rent is reduced,
18nontaxable income of an American Indian, nontaxable income from sources outside
19this state and nontaxable deferred compensation. Intangible drilling costs,
20depletion allowances and depreciation, including first-year depreciation allowances
21under section 179 of the internal revenue code, amortization, contributions to
22individual retirement accounts under section 219 of the internal revenue code,
23contributions to Keogh plans, net operating loss carry-backs and carry-forwards
24and capital loss carry-forwards deducted in determining Wisconsin adjusted gross
25income shall be added to "income". "Income" does not include gifts from natural

1persons, cash reimbursement payments made under title XX of the federal social
2security act, surplus food or other relief in kind supplied by a governmental agency,
3the gain on the sale of a personal residence deferred under section 1034 of the
4internal revenue code or nonrecognized gain from involuntary conversions under
5section 1033 of the internal revenue code. Amounts not included in adjusted gross
6income but added to "income" under this subsection in a previous year and repaid
7may be subtracted from income for the year during which they are repaid.
8Scholarship and fellowship gifts or income that are included in Wisconsin adjusted
9gross income and that were added to household income for purposes of determining
10the credit under this subchapter in a previous year may be subtracted from income
11for the current year in determining the credit under this subchapter. A marital
12property agreement or unilateral statement under ch. 766 has no effect in computing
13"income" for a person whose homestead is not the same as the homestead of that
14person's spouse.
SB378,17 15Section 17. 77.54 (61) (intro.), (a) and (b) of the statutes, as created by 2013
16Wisconsin Act 20
, are amended to read:
SB378,8,2417 77.54 (61) (intro.) The sales price from the sale of and the storage, use, or other
18consumption of the following by a person primarily engaged, as determined by the
19department,
in commercial printing, not including screen printing or book printing,
20without publishing, except for gray goods; printing, or printing and binding, books
21or pamphlets without publishing the books or pamphlets; or performing prepress
22and postpress services in support of printing activities
book printing, or support
23activities for printing described under 323111, 323117, and 323120 of the North
24American Industry Classification System
:
SB378,9,3
1(a) Computers and servers that are used primarily to store copies of the product
2that are sent to a digital printer, a platemaking machine, or a printing press or used
3primarily in prepress or postpress activities
.
SB378,9,64 (b) Tangible personal property purchased from out-of-state sellers that are
5temporarily stored, remain idle, and not used in this state for not more than 180 days
6and that are then delivered and used solely outside of this state.
SB378,18 7Section 18. 77.54 (61) (c) of the statutes is created to read:
SB378,9,88 77.54 (61) (c) In this subsection:
SB378,9,109 1. "Postpress activities" include paper bronzing, die-cutting, edging,
10embossing, folding, gilding, gluing, and indexing.
SB378,9,1211 2. "Prepress activities" include making print-ready plates, typesetting, trade
12binding, and sample mounting.
SB378,9,1313 3. "Temporarily" means not more than 180 days.
SB378,19 14Section 19. 238.16 (3) (intro.) of the statutes, as affected by 2013 Wisconsin
15Act 20
, is amended to read:
SB378,9,2216 238.16 (3) Eligibility for tax benefits. (intro.) A person certified under sub.
17(2) may receive tax benefits under this section if, in each year for which the person
18claims tax benefits under this section, the person increases net employment in this
19state
in the person's business above the net employment in this state in the person's
20business during the year before the person was certified under sub. (2), as
21determined by the corporation under its policies and procedures, and one of the
22following applies:
SB378,20 23Section 20. Initial applicability.
SB378,9,2524 (1) The treatment of section 77.54 (61) (intro.), (a), (b), and (c) of the statutes
25first applies retroactively to sales made on October 1, 2013.
SB378,21
1Section 21. Effective dates. This act takes effect on the day after publication,
2except as follows:
SB378,10,43 (1) The treatment of sections 77.54 (61) (intro.), (a), (b), and (c) of the statutes
4takes effect retroactively to October 1, 2013.
SB378,10,55 (End)
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