AB64: Bill Text

AB64,517,13 71.01 (6) (j) 3. k. Sections 103, 104, 124, 168, 184, 185, 190, 204, 303, 306, 336, and 341 of division Q of P.L. 114-113.

AB64,1008 Section 1008 . 71.01 (6) (j) 3. L. of the statutes is created to read:

AB64,517,15 71.01 (6) (j) 3. L. P.L. 114-239.

AB64,1009 Section 1009. 71.01 (6) (k) of the statutes is created to read:

AB64,517,21 71.01 (6) (k) 1. For taxable years beginning after December 31, 2016, for individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2016, except as provided in subds. 2. and 3. and subject to subd. 4.

AB64,518,11 2. For purposes of this paragraph, “Internal Revenue Code" does not include the following provisions of federal public laws for taxable years beginning after December 31, 2016: section 13113 of P.L 103-66; sections 1, 3, 4, and 5 of P.L. 106-519; sections 101, 102, and 422 of P.L 108-357; sections 1310 and 1351 of P.L. 109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L. 110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section 15351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251, 1501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L. 111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L. 111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and 411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division P of P.L. 114-113; and sections 112, 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113.

AB64,518,13 3. For purposes of this paragraph, “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2016.

AB64,518,20 4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by section 4007 (b) of P.L. 114-41, section 1102 of P.L. 114-74, sections 105, 111, 113 to 115, 133, 301, 302, 304, 305, 308, 311, 313 to 323, 325, 331, and 343 to 345 of division Q of P.L. 114-113 first apply for taxable years beginning after December 31, 2016.

AB64,1010 Section 1010. 71.03 (2) (i) 3. of the statutes is amended to read:

AB64,519,2 71.03 (2) (i) 3. There has been mailed sent to either spouse, with respect to that taxable year, a notice of adjustment under ss. 71.74 to 71.77 and the spouse, as to that notice, files a petition for redetermination under subch. XIV, except that, if both spouses request and the department consents, the election under par. (g) may be made.

AB64,1011 Section 1011. 71.03 (4) (b) of the statutes is amended to read:

AB64,519,7 71.03 (4) (b) The tax on income reported by persons making the election under par. (a) shall be computed by the department of revenue. After applying all known applicable credits, the department shall notify the taxpayer by mail of the amount of taxes due or the amount of taxes to be refunded.

AB64,1012 Section 1012. 71.04 (7) (dh) 2. b. of the statutes is amended to read:

AB64,519,11 71.04 (7) (dh) 2. b. The service relates to tangible personal property that is located in this state at the time that the service is received or tangible personal property that is delivered directly or indirectly to customers in this state.

AB64,1013 Section 1013. 71.04 (7) (dh) 2. c. of the statutes is amended to read:

AB64,519,14 71.04 (7) (dh) 2. c. The service is provided to purchased by an individual who is physically present in this state at the time that the service is received.

AB64,1014 Section 1014 . 71.05 (1) (c) 13. of the statutes is created to read:

AB64,519,17 71.05 (1) (c) 13. An entity described under, or an entity whose bonds are issued under, s. 66.1201, 66.1333, or 66.1335.

AB64,1015 Section 1015. 71.05 (6) (a) 26. (intro.) of the statutes is amended to read:

AB64,519,21 71.05 (6) (a) 26. (intro.) For the taxable year in which a distribution is received, all of the following amounts distributed from a college savings account, as described in s. 16.641 224.50:

AB64,1016 Section 1016. 71.05 (6) (a) 26. c. of the statutes is amended to read:

AB64,520,3 71.05 (6) (a) 26. c. To the extent that an amount is not otherwise added back under this subdivision, any amount withdrawn from a college savings account, as described in s. 16.641 224.50, for any purpose if the withdrawn amount was contributed to the account within 365 days of the day on which the amount was withdrawn from such an account and if the withdrawn amount was previously subtracted under par. (b) 32.

AB64,1017 Section 1017. 71.05 (6) (b) 23. of the statutes is amended to read:

AB64,520,8 71.05 (6) (b) 23. Any increase in value of a tuition unit that is purchased under a tuition contract under s. 16.64 224.48, except that the subtraction under this subdivision may not be claimed by any individual who received a refund under s. 16.64 224.48 (7) (a) 2., 3. or 4.

AB64,1018 Section 1018 . 71.05 (6) (b) 28. (intro.) of the statutes is amended to read:

AB64,520,16 71.05 (6) (b) 28. (intro.) An amount paid by a claimant for tuition expenses and mandatory student fees for a student who is the claimant or who is the claimant's child and the claimant's dependent who is claimed under section 151 (c) of the Internal Revenue Code, to attend any university, college, technical college or a school approved under s. 38.50 440.52, that is located in Wisconsin or to attend a public vocational school or public institution of higher education in Minnesota under the Minnesota-Wisconsin reciprocity agreement under s. 39.47, calculated as follows:

AB64,1019 Section 1019. 71.05 (6) (b) 28. h. of the statutes is amended to read:

AB64,520,25 71.05 (6) (b) 28. h. No modification may be claimed under this subdivision for an amount paid for tuition expenses and mandatory student fees, as described under this subdivision, if the source of the payment is an amount withdrawn from a college savings account, as described in s. 16.641 224.50 or from a college tuition and expenses program, as described in s. 16.64 224.48, and if the owner of the account or a parent, grandparent, great-grandparent, aunt, or uncle of the beneficiary, who contributed to the account, has claimed a deduction under subd. 32. or 33. that relates to such an amount.

AB64,1020 Section 1020. 71.05 (6) (b) 31. of the statutes is amended to read:

AB64,521,5 71.05 (6) (b) 31. Any increase in value of a college savings account, as described in s. 16.641 224.50, except that the subtraction under this subdivision may not be claimed by any individual who has made a nonqualified withdrawal, as described in s. 16.641 224.50 (2) (e).

AB64,1021 Section 1021. 71.05 (6) (b) 32. (intro.) of the statutes is amended to read:

AB64,521,13 71.05 (6) (b) 32. (intro.) An amount paid into a college savings account, as described in s. 16.641 224.50, in the taxable year in which the contribution is made or on or before the 15th day of the 4th month beginning after the close of a taxpayer's taxable year to which this subtraction relates, by the owner of the account or by any other individual, for the benefit of any beneficiary of an account, calculated as follows, except that each amount that is subtracted under this subdivision may be subtracted only once:

AB64,1022 Section 1022. 71.05 (6) (b) 32m. of the statutes is amended to read:

AB64,521,21 71.05 (6) (b) 32m. Consistent with the limitations specified in subd. 32., for rollovers occurring after April 15, 2015, any principal amount rolled over to a college savings account, as described in s. 16.641 224.50, from another state's qualified tuition program, as described in 26 USC 529 (c) (3) (C) (i). Amounts eligible for the subtraction under this subdivision that are in excess of the annual limits specified under subd. 32. may be carried forward to future taxable years of the taxpayer without limitation, other than the limits specified in subd. 32. ae. and am.

AB64,1023 Section 1023. 71.05 (6) (b) 33. (intro.) of the statutes is amended to read:

AB64,522,3 71.05 (6) (b) 33. (intro.) An amount paid into a college tuition and expenses program, as described in s. 16.64 224.48, by the owner of the account or by a parent, grandparent, great-grandparent, aunt, or uncle of the beneficiary, if the beneficiary of the account is one of the following: the claimant; the claimant's child; the claimant's grandchild; the claimant's great-grandchild; or the claimant's niece or nephew; calculated as follows:

AB64,1024 Section 1024 . 71.05 (8) (b) 1. of the statutes is amended to read:

AB64,522,19 71.05 (8) (b) 1. A Except as provided in s. 71.80 (25), a Wisconsin net operating loss may be carried back against Wisconsin taxable income of the previous 2 years and then carried forward against Wisconsin taxable incomes of the next 20 taxable years, if the taxpayer was subject to taxation under this chapter in the taxable year in which the loss was sustained incurred, to the extent not offset against other income of the year of loss and to the extent not offset against Wisconsin modified taxable income of the 2 years preceding the loss and of any year between the loss year and the taxable year for which the loss carry-forward is claimed. In this paragraph, “Wisconsin modified taxable income" means Wisconsin taxable income with the following exceptions: a net operating loss deduction or offset for the loss year or any taxable year before or thereafter is not allowed, the deduction for long-term capital gains under subs. (6) (b) 9. and 9m. and (25) is not allowed, the amount deductible for losses from sales or exchanges of capital assets may not exceed the amount includable in income for gains from sales or exchanges of capital assets and “Wisconsin modified taxable income" may not be less than zero.

AB64,1025 Section 1025 . 71.06 (1q) (intro.) of the statutes is amended to read:

AB64,523,2 71.06 (1q) Fiduciaries, single individuals, and heads of households; after 2012 to 2016. (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, and before January 1, 2017:

AB64,1026 Section 1026 . 71.06 (1r) of the statutes is created to read:

AB64,523,8 71.06 (1r) Fiduciaries, single individuals, and heads of households; after 2016. 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, 2016:

AB64,523,9 (a) On all taxable income from $0 to $7,500, 3.9 percent.

AB64,523,11 (b) On all taxable income exceeding $7,500 but not exceeding $18,750, 5.74 percent.

AB64,523,13 (c) On all taxable income exceeding $18,750 but not exceeding $225,000, 6.27 percent.

AB64,523,14 (d) On all taxable income exceeding $225,000, 7.65 percent.

AB64,1027 Section 1027 . 71.06 (2) (i) (intro.) of the statutes is amended to read:

AB64,523,17 71.06 (2) (i) (intro.) For joint returns, for taxable years beginning after December 31, 2012, and before January 1, 2017:

AB64,1028 Section 1028 . 71.06 (2) (j) (intro.) of the statutes is amended to read:

AB64,523,20 71.06 (2) (j) (intro.) For married persons filing separately, for taxable years beginning after December 31, 2012, and before January 1, 2017:

AB64,1029 Section 1029 . 71.06 (2) (k) of the statutes is created to read:

AB64,523,23 71.06 (2) (k) For joint returns, for taxable years beginning after December 31, 2016:

AB64,523,24 1. On all taxable income from $0 to $10,000, 3.9 percent.

AB64,524,2 2. On all taxable income exceeding $10,000 but not exceeding $25,000, 5.74 percent.

AB64,524,4 3. On all taxable income exceeding $25,000 but not exceeding $300,000, 6.27 percent.

AB64,524,5 4. On all taxable income exceeding $300,000,7.65 percent.

AB64,1030 Section 1030 . 71.06 (2) (L) of the statutes is created to read:

AB64,524,8 71.06 (2) (L) For married persons filing separately, for taxable years beginning after December 31, 2016:

AB64,524,9 1. On all taxable income from $0 to $5,000, 3.9 percent.

AB64,524,11 2. On all taxable income exceeding $5,000 but not exceeding $12,500, 5.74 percent.

AB64,524,13 3. On all taxable income exceeding $12,500 but not exceeding $150,000, 6.27 percent.

AB64,524,14 4. On all taxable income exceeding $150,000, 7.65 percent.

AB64,1031 Section 1031 . 71.06 (2e) (a) of the statutes is amended to read:

AB64,525,11 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, and before January 1, 2017, 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) and (b), and (2) (e), (f), (g) 1. to 3., (h) 1. to 3., (i) 1. and 2., and (j) 1. and 2., 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.

AB64,1032 Section 1032 . 71.06 (2e) (b) of the statutes is amended to read:

AB64,525,24 71.06 (2e) (b) For taxable years beginning after December 31, 2009, and before January 1, 2017, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1p) (d), (1q) (c), and (2) (g) 4., (h) 4., (i) 3., and (j) 3., and the dollar amount in the top bracket under subs. (1p) (e), (1q) (d), and (2) (g) 5., (h) 5., (i) 4., and (j) 4., 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.

AB64,1033 Section 1033 . 71.06 (2e) (bg) of the statutes is created to read:

AB64,526,10 71.06 (2e) (bg) For taxable years beginning after December 31, 2016, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1r) and (2) (k) and (L) 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, 2017, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB64,1034 Section 1034 . 71.06 (2m) of the statutes is amended to read:

AB64,526,15 71.06 (2m) Rate changes. If a rate under sub. (1), (1m), (1n), (1p), (1q), (1r), 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.

AB64,1035 Section 1035 . 71.06 (2s) (d) of the statutes is amended to read:

AB64,527,5 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), (1r), and (2) (g), (h), (i), and (j), (k), and (L) 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), (1r), and (2) (g), (h), (i), and (j), (k), and (L) 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.

AB64,1036 Section 1036. 71.07 (3q) (d) 2. of the statutes is amended to read:

AB64,527,15 71.07 (3q) (d) 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under ss. 71.02 and 71.08, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (bb), except that the amounts certified under this subdivision for taxable years beginning after December 31, 2009, and before January 1, 2012, shall be paid in taxable years beginning after December 31, 2011. Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subdivision.

AB64,1037 Section 1037. 71.07 (3w) (c) 1. of the statutes is amended to read:

AB64,527,23 71.07 (3w) (c) 1. If the allowable amount of the claim under this subsection exceeds the taxes otherwise due on the claimant's income under s. 71.02, the amount of the claim that is not used to offset those taxes shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation under s. 20.835 (2) (co). Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subdivision.

AB64,1038 Section 1038. 71.07 (3y) (d) 2. of the statutes is amended to read:

AB64,528,6 71.07 (3y) (d) 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under ss. 71.02 and 71.08, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (bg). Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subdivision.

AB64,1039 Section 1039. 71.07 (5) (b) of the statutes is amended to read:

AB64,528,11 71.07 (5) (b) Subtract the standard deduction under s. 71.05 (22), notwithstanding the limitation by such fraction of that amount as Wisconsin adjusted gross income is of federal adjusted gross income described in s. 71.05 (22) (g) and (h), from the amount under par. (a).

AB64,1040 Section 1040. 71.07 (5) (e) of the statutes is created to read:

AB64,528,15 71.07 (5) (e) For purposes of this subsection, “Internal Revenue Code” does not include any adjustment made under provisions related to the federal alternative minimum tax.

AB64,1041 Section 1041. 71.07 (5m) (c) 6. of the statutes is created to read:

AB64,528,18 71.07 (5m) (c) 6. If a married couple files jointly, both spouses must be full-year residents of this state to be eligible to claim the credit under this subsection.

AB64,1042 Section 1042. 71.07 (5n) (d) 3. of the statutes is created to read:

AB64,528,23 71.07 (5n) (d) 3. The amount of the eligible qualified production activities income that a claimant may claim in computing the credit under par. (b) shall be reduced by the amount of the qualified production activities income taxed by another state upon which the credit under sub. (7) may be claimed.

AB64,1043 Section 1043 . 71.07 (5r) (a) 2. of the statutes is amended to read:

AB64,529,2 71.07 (5r) (a) 2. “Course of instruction" has the meaning given in s. 38.50 440.52 (1) (c).

AB64,1044 Section 1044 . 71.07 (5r) (a) 6. b. of the statutes is amended to read: