SB111: Bill Text

SB111,1232 Section 1232 . 71.03 (2) (d) 1. of the statutes is amended to read:

SB111,837,8 71.03 (2) (d) 1. Except as provided in subds. 2. and 3. and par. (e), a husband and a wife spouses may file a joint return for income tax purposes even though one of the spouses has no gross income or no deductions.

SB111,1233 Section 1233 . 71.03 (2) (d) 2. of the statutes is amended to read:

SB111,837,13 71.03 (2) (d) 2. No joint return may be filed if either the husband or wife spouse at any time during the taxable year is a nonresident alien, unless an election is in effect for the taxable year under section 6013 (g) or (h) of the internal revenue code Internal Revenue Code.

SB111,1234 Section 1234 . 71.03 (2) (d) 3. of the statutes is amended to read:

SB111,837,21 71.03 (2) (d) 3. No joint return may be filed if the husband and wife spouses have different taxable years, except that if their taxable years begin on the same day and end on different days because of the death of either or both the joint return may be filed with respect to the taxable year of each unless the surviving spouse remarries before the close of his or her taxable year or unless the taxable year of either spouse is a fractional part of a year under section 443 (a) (1) of the internal revenue code Internal Revenue Code.

SB111,1235 Section 1235 . 71.03 (2) (g) of the statutes is amended to read:

SB111,838,12 71.03 (2) (g) Joint return following separate return. Except as provided in par. (i), if an individual has filed a separate return for a taxable year for which a joint return could have been filed by the individual and the individual's spouse under par. (d) or (e) and the time prescribed by law for timely filing the return for that taxable year has expired, the individual and the individual's spouse may file a joint return for that taxable year. A joint return filed by the husband and wife spouses under this paragraph is their return for that taxable year, and all payments, credits, refunds or other repayments made or allowed with respect to the separate return of each spouse for that taxable year shall be taken into account in determining the extent to which the tax based upon the joint return has been paid. If a joint return is filed under this paragraph, any election, other than the election to file a separate return, made by either spouse in that spouse's separate return for that taxable year with respect to the treatment of any income, deduction or credit of that spouse may not be changed in the filing of the joint return if that election would have been irrevocable if the joint return had not been filed.

SB111,1236 Section 1236 . 71.03 (2) (m) 2. of the statutes is amended to read:

SB111,838,17 71.03 (2) (m) 2. If a husband and wife spouses change from a joint return to separate returns within the time prescribed in subd. 1., the tax paid on the joint return shall be allocated between them in proportion to the tax liability shown on each separate return.

SB111,1237 Section 1237 . 71.03 (4) (a) of the statutes is amended to read:

SB111,839,3 71.03 (4) (a) Natural persons whose total income is not in excess of $10,000 and consists entirely of wages subject to withholding for Wisconsin tax purposes and not more than $200 total of dividends, interest and other wages not subject to Wisconsin withholding, and who have elected the Wisconsin standard deduction and have not claimed either the credit for homestead property tax relief or deductions for expenses incurred in earning such income, shall, at their election, not be required to record on their income tax returns the amount of the tax imposed on their Wisconsin taxable income. Married persons shall be permitted this election only if the joint income of the husband and wife spouses does not exceed $10,000, if both report their incomes on the same joint income tax return form, and if both make this election.

SB111,1238 Section 1238. 71.05 (6) (a) 26. a. of the statutes is amended to read:

SB111,839,10 71.05 (6) (a) 26. a. To the extent that the receipt of such amounts by the owner or beneficiary of the account results in a penalty as provided in 26 USC 529 (c) (6), any amount that was not used for qualified higher education expenses, as that term is defined in 26 USC 529 (e) (3), and was contributed to the account after December 31, 2013, except that this subd. 26. a. applies only to amounts for which a subtraction was made under par. (b) 32.

SB111,1239 Section 1239 . 71.05 (6) (a) 28. of the statutes is amended to read:

SB111,839,14 71.05 (6) (a) 28. Upon the termination of an account as described under s. 16.643 or 224.55, any amount in the account that is returned to an account owner's estate.

SB111,1240 Section 1240 . 71.05 (6) (a) 30. of the statutes is created to read:

SB111,839,17 71.05 (6) (a) 30. For an account holder, as defined in s. 71.10 (10) (a) 1., or an account holder's estate:

SB111,839,18 a. Any amount distributed under s. 71.10 (10) (d) 2. or 3.

SB111,839,23 b. Any amount withdrawn from the account created under s. 71.10 (10) (b) 1. for any reason other than payment or reimbursement of eligible costs, as defined in s. 71.10 (10) (a) 4., except that this subd. 30. b. does not apply to the transfer of funds to another account as described in s. 71.10 (10) (c) 4. or to the disbursement of funds pursuant to a filing for bankruptcy protection under 11 USC 101 et seq.

SB111,1241 Section 1241. 71.05 (6) (b) 9. of the statutes is renumbered 71.05 (6) (b) 9. (intro.) and amended to read:

SB111,840,17 71.05 (6) (b) 9. (intro.) On assets held more than one year and on all assets acquired from a decedent, 30 percent of the capital gain as computed under the internal revenue code Internal Revenue Code, not including capital gains for which the federal tax treatment is determined under section 406 of P.L. 99-514; not including amounts treated as ordinary income for federal income tax purposes because of the recapture of depreciation or any other reason; and not including amounts treated as capital gain for federal income tax purposes from the sale or exchange of a lottery prize. For purposes of this subdivision, the capital gains and capital losses for all assets shall be netted before application of the percentage. For taxable years beginning after December 31, 2020, no subtraction may be made under this subdivision by an individual whose federal adjusted gross income in the taxable year exceeds the applicable threshold amount, except that an individual whose federal adjusted gross income, less 30 percent of the capital gains otherwise eligible for subtraction under this subdivision, is below the applicable threshold amount may make the subtraction reduced by the amount that the individual's federal adjusted gross income exceeds the applicable threshold amount. In this subdivision, “applicable threshold amount” means:

SB111,1242 Section 1242. 71.05 (6) (b) 9. a. of the statutes is created to read:

SB111,840,20 71.05 (6) (b) 9. a. For an estate, a trust, a single individual, or an individual who files as a head of household, $400,000.

SB111,1243 Section 1243. 71.05 (6) (b) 9. b. of the statutes is created to read:

SB111,840,22 71.05 (6) (b) 9. b. For a married couple who files a joint return, $533,000.

SB111,1244 Section 1244. 71.05 (6) (b) 9. c. of the statutes is created to read:

SB111,840,25 71.05 (6) (b) 9. c. For a married individual who files a separate return, $266,500.

SB111,1245 Section 1245. 71.05 (6) (b) 17. of the statutes is repealed.

SB111,1246 Section 1246. 71.05 (6) (b) 18. of the statutes is repealed.

SB111,1247 Section 1247 . 71.05 (6) (b) 19. c. of the statutes is amended to read:

SB111,841,9 71.05 (6) (b) 19. c. For taxable years beginning before January 1, 2021, for a person who is a nonresident or a part-year resident of this state, modify the amount calculated under subd. 19. b. by multiplying the amount by a fraction the numerator of which is the person's net earnings from a trade or business that are taxable by this state and the denominator of which is the person's total net earnings from a trade or business.

SB111,1248 Section 1248 . 71.05 (6) (b) 19. cm. of the statutes is created to read:

SB111,841,23 71.05 (6) (b) 19. cm. For taxable years beginning after December 31, 2020, for a person who is a nonresident or a part-year resident of this state, modify the amount calculated under subd. 19. b. by multiplying the amount by a fraction the numerator of which is the person's wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the person's total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 19. cm., for married persons filing separately, “ wages, salary, tips, unearned income, and net earnings from a trade or business" means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly, “wages, salary, tips, unearned income, and net earnings from a trade or business" means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.

SB111,1249 Section 1249 . 71.05 (6) (b) 19. d. of the statutes is amended to read:

SB111,842,3 71.05 (6) (b) 19. d. Reduce For taxable years beginning before January 1, 2021, reduce the amount calculated under subd. 19. b. or c. to the person's aggregate net earnings from a trade or business that are taxable by this state.

SB111,1250 Section 1250 . 71.05 (6) (b) 19. dm. of the statutes is created to read:

SB111,842,8 71.05 (6) (b) 19. dm. For taxable years beginning after December 31, 2020, reduce the amount calculated under subd. 19.b. or cm. to the person's aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.

SB111,1251 Section 1251 . 71.05 (6) (b) 20. of the statutes is repealed.

SB111,1252 Section 1252. 71.05 (6) (b) 28. (intro.) of the statutes is amended to read:

SB111,842,18 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, as defined under section 152 of the Internal Revenue Code, to attend any university, college, technical college or a school approved under s. 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 a reciprocity agreement under s. 36.27 (2r) or 39.47, calculated as follows:

SB111,1253 Section 1253. 71.05 (6) (b) 34. of the statutes is amended to read:

SB111,843,2 71.05 (6) (b) 34. Any amount of basic, special, and incentive pay income or compensation, as those terms are used in 37 USC chapters 3 and 5, received from the federal government by a person who is a member of a reserve component of the U.S. armed forces, after being called into active federal service under the provisions of 10 USC 12302 (a) or, 10 USC 12304, or 10 USC 12304b, or into special state service authorized by the federal department of defense under 32 USC 502 (f), that is paid to the person for a period of time during which the person is on active duty.

SB111,1254 Section 1254. 71.05 (6) (b) 34m. of the statutes is created to read:

SB111,843,9 71.05 (6) (b) 34m. For taxable years beginning after December 31, 2020, any amount of pay, as described in s. 321.35, received from this state by a person who is a member of the Wisconsin national guard after being called into state active duty under s. 321.39 that is paid to the person for the period of time during which the person is on state active duty, to the extent that the income is not subtracted under subd. 34.

SB111,1255 Section 1255 . 71.05 (6) (b) 36. of the statutes is repealed.

SB111,1256 Section 1256 . 71.05 (6) (b) 37. of the statutes is repealed.

SB111,1257 Section 1257 . 71.05 (6) (b) 39. of the statutes is repealed.

SB111,1258 Section 1258 . 71.05 (6) (b) 40. of the statutes is repealed.

SB111,1259 Section 1259 . 71.05 (6) (b) 41. of the statutes is repealed.

SB111,1260 Section 1260. 71.05 (6) (b) 43. d. of the statutes is amended to read:

SB111,843,18 71.05 (6) (b) 43. d. For taxable years beginning after December 31, 2013, and before January 1, 2021, up to $3,000 if the claimant has one qualified individual and up to $6,000 if the claimant has more than one qualified individual.

SB111,1261 Section 1261. 71.05 (6) (b) 49. a. of the statutes is amended to read:

SB111,843,25 71.05 (6) (b) 49. a. Subject to the definitions provided in subd. 49. b. to g. and the limitations specified in subd. 49. h. to j. for taxable years beginning after December 31, 2013, and subject to the limitation in subd. 49. k. for taxable years beginning after December 31, 2017, and subject to the limitation in subd. 49. m. for taxable years beginning after December 31, 2020, tuition expenses that are paid by a claimant for tuition for a pupil to attend an eligible institution.

SB111,1262 Section 1262. 71.05 (6) (b) 49. m. of the statutes is created to read:

SB111,844,6 71.05 (6) (b) 49. m. For taxable years beginning after December 31, 2020, no modification may be made under this subdivision unless the adjusted gross income of the claimant is less than $100,000 if the claimant is filing as single or head of household, $150,000 if the claimant is married and filing jointly, or $75,000 if the claimant is married and filing separately.

SB111,1263 Section 1263 . 71.05 (6) (b) 54. of the statutes is created to read:

SB111,844,12 71.05 (6) (b) 54. For taxable years beginning after December 31, 2020, the amount of a national service educational award disbursed under 42 USC 12604 during the taxable year for the benefit of an individual. No modification may be claimed under this subdivision for an amount that is subtracted under subd. 28. or deducted under 26 USC 221.

SB111,1264 Section 1264 . 71.05 (6) (b) 55. of the statutes is created to read:

SB111,844,21 71.05 (6) (b) 55. For each account an account holder, as defined in s. 71.10 (10) (a) 1., creates under s. 71.10 (10) (b) 1. and, subject to s. 71.10 (10) (d), the amount deposited, limited to $5,000, by the account holder into the account during the taxable year and any interest, dividends, and other gains that accrue in the account and are redeposited into it. If the account holder is married and files a joint return, the $5,000 limitation shall be increased to $10,000. The subtraction under this subdivision does not apply to the transfer of funds from another account as described in s. 71.10 (10) (c) 4.

SB111,1265 Section 1265. 71.05 (8) (a) of the statutes is amended to read:

SB111,845,4 71.05 (8) (a) The carry back of losses to reduce income of prior years may be permitted for 2 taxable years. There shall be added any amount deducted as a federal net operating loss carry-back or carry-over and there shall be subtracted for the first taxable year for which the subtraction may be made any Wisconsin net operating loss carry-back or carry-forward allowable under par. (b) in an amount not in excess of the Wisconsin taxable income computed before the deduction of the Wisconsin net operating loss carry-back or carry-forward.

SB111,1266 Section 1266. 71.05 (8) (b) 1. of the statutes is renumbered 71.05 (8) (b) and amended to read:

SB111,845,21 71.05 (8) (b) 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 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., (25), and (25m) 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.

SB111,1267 Section 1267. 71.05 (8) (b) 2. of the statutes is repealed.

SB111,1268 Section 1268. 71.05 (8) (c) of the statutes is repealed.

SB111,1269 Section 1269 . 71.05 (22) (a) (title) of the statutes is amended to read:

SB111,846,2 71.05 (22) (a) (title) Election of deductions; husband and wife spousal deductions.

SB111,1270 Section 1270. 71.07 (3q) (c) 1. of the statutes is renumbered 71.07 (3q) (c) 1. a. and amended to read:

SB111,846,13 71.07 (3q) (c) 1. a. Partnerships Except as provided in subd. 1. b., partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

SB111,1271 Section 1271. 71.07 (3q) (c) 1. b. of the statutes is created to read:

SB111,847,2 71.07 (3q) (c) 1. b. For taxable years beginning after December 31, 2021, partnerships, limited liability companies, and tax-option corporations may elect to claim the credit under this subsection, if the credit results from a contract entered into with the Wisconsin Economic Development Corporation before December 22, 2017. A partnership, limited liability company, or tax-option corporation that wishes to make the election under this subd. 1. b. shall make the election for each taxable year on its original return and may not subsequently make or revoke the election. If a partnership, limited liability company, or tax-option corporation elects to claim the credit under this subsection, the partners, members, and shareholders may not claim the credit under this subsection. The credit may not be claimed under this subd. 1. b. if one or more partners, members, or shareholders have claimed the credit under this subsection for the same taxable year for which the credit is claimed under this subd. 1. b.

SB111,1272 Section 1272. 71.07 (3w) (a) 1. of the statutes is renumbered 71.07 (3w) (a) 1. a. and amended to read:

SB111,847,7 71.07 (3w) (a) 1. a. “Base Except as provided in subd. 1. b., “base year" means the taxable year beginning during the calendar year prior to the calendar year in which the enterprise zone in which the claimant is located takes effect.

SB111,1273 Section 1273. 71.07 (3w) (a) 1. b. of the statutes is created to read:

SB111,847,12 71.07 (3w) (a) 1. b. For a claimant whose contract with the Wisconsin Economic Development Corporation under s. 238.399 is executed after December 31, 2021, “base year” means the 12-month period prior to the date on which the claimant was certified under s. 238.399 (5).

SB111,1274 Section 1274. 71.07 (3w) (a) 2m. of the statutes is created to read:

SB111,847,15 71.07 (3w) (a) 2m. “Contract” means the contract between the claimant and Wisconsin Economic Development Corporation under s. 238.399.

SB111,1275 Section 1275. 71.07 (3w) (a) 6. of the statutes is renumbered 71.07 (3w) (a) 6. a. and amended to read:

SB111,847,21 71.07 (3w) (a) 6. a. “Zone payroll" means the amount of state payroll that is attributable to wages paid to full-time employees for services that are performed in an enterprise zone. “Zone Except as provided in subd. 6. b., “zone payroll" does not include the amount of wages paid to any full-time employees that exceeds $100,000.

SB111,1276 Section 1276. 71.07 (3w) (a) 6. b. of the statutes is created to read:

SB111,847,25 71.07 (3w) (a) 6. b. For a claimant whose contract is executed after December 31, 2021, “zone payroll" does not include the amount of wages paid to any full-time employees that exceeds $123,000.

SB111,1277 Section 1277. 71.07 (3w) (b) (intro.) of the statutes is amended to read:

SB111,848,5 71.07 (3w) (b) Filing claims under pre-2022 contracts; payroll. (intro.) Subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant whose contract is executed prior to January 1, 2022, may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount calculated as follows:

SB111,1278 Section 1278. 71.07 (3w) (bd) of the statutes is created to read:

SB111,848,10 71.07 (3w) (bd) Filing claims under post-2021 contracts; payroll. Subject to the limitations provided in this subsection and s. 238.399, a claimant whose contract is executed after December 31, 2021, may claim as a credit against the tax imposed under s. 71.02 an amount calculated as follows:

SB111,848,11 1. Determine the amount that is the lesser of:

SB111,848,18 a. The number of full-time employees whose annual wages are greater than $27,900 in a tier I county or municipality or greater than $37,000 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 $27,900 in a tier I county or municipality or greater than $37,000 in a tier II county or municipality and who the claimant employed in the area that comprises the enterprise zone in the base year.

SB111,848,24 b. The number of full-time employees whose annual wages are greater than $27,900 in a tier I county or municipality or greater than $37,000 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 $27,900 in a tier I county or municipality or greater than $37,000 in a tier II county or municipality and who the claimant employed in the state in the base year.