71.07(3s)(c)1.1. The credit under
par. (b), including any credits carried over, may be offset only against the amount of the tax imposed upon or measured by the business operations of the claimant in which the fuel and electricity are consumed. If the credit computed is not entirely offset against taxes otherwise due, the unused balance shall be carried forward and credited against taxes otherwise due for the following 15 taxable years to the extent not offset by taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.
71.07(3s)(c)2.
2. For shareholders in a tax-option corporation, the credit may be offset only against the tax imposed on the shareholder's prorated share of the tax-option corporation's income.
71.07(3s)(c)3.
3. For partners, the credit may be offset only against the tax imposed on the partner's distributive share of partnership income.
71.07(3s)(c)4.
4. If a tax-option corporation becomes liable for tax for a taxable year that begins on or after January 1, 1998, the corporation may offset the credit against the tax due, with any remaining credit computed for a taxable year that begins on or after January 1, 1998, passing through to the shareholders.
71.07(3s)(c)5.
5. If a corporation that is not a tax-option corporation has a carry-over credit from a taxable year that begins on or after January 1, 1998, and becomes a tax-option corporation before the credit carried over is used, the unused portion of the credit may be used by the tax-option corporation's shareholders on a prorated basis.
71.07(3s)(c)6.
6. If the shareholders of a tax-option corporation have carry-over credits and the corporation becomes a corporation other than a tax-option corporation after October 14, 1997, and before the credits carried over are used, the unused portion of the credits may be used by the corporation that is not a tax-option corporation.
71.07(4)
(4) Homestead credit. The homestead credit under
subch. VIII may be claimed by individuals against taxes otherwise due.
71.07(5)
(5) Itemized deductions credit. Single persons, married persons filing separately and married persons filing jointly may claim as a credit against, but not to exceed the amount of, Wisconsin net income taxes due an amount calculated as follows:
71.07(5)(a)
(a) Add the amounts allowed as itemized deductions under the internal revenue code except:
71.07(5)(a)1.
1. Interest paid to purchase or hold securities issued by the federal government or by any of its instrumentalities the interest on which is exempt from taxation under
s. 71.05 (6) (b) 1.
71.07(5)(a)3.
3. Casualty and theft deductions under section
165 (c) (3) of the internal revenue code.
71.07(5)(a)4.
4. Expenses to move from this state under section
217 of the internal revenue code.
71.07(5)(a)5.
5. Interest incurred to purchase or refinance a residence that is not a principal residence and is not in this state, and interest incurred to purchase or refinance a residence that is a boat.
71.07(5)(a)6.
6. The amount claimed for repayment of income previously taxed under this chapter if that amount is used in calculating the credit under
sub. (1).
71.07(5)(a)7.
7. Miscellaneous itemized deductions under the Internal Revenue Code, without regard to whether such deductions are subject to the 2% floor as described in section
67 of the Internal Revenue Code.
71.07(5)(a)8.
8. Any employment-related educational expense that is claimed as an itemized deduction under the Internal Revenue Code to the extent that such an amount is also claimed as a subtract modification under
s. 71.05 (6) (b) 28.
71.07(5)(a)15.
15. The amount claimed as a deduction for medical care insurance under section
213 of the Internal Revenue Code that is exempt from taxation under
s. 71.05 (6) (b) 17. to
20. and the amount claimed as a deduction for a long-term care insurance policy under section
213 (d) (1) (D) of the Internal Revenue Code, as defined in section
7702B (b) of the Internal Revenue Code that is exempt from taxation under
s. 71.05 (6) (b) 26.
71.07(5)(d)
(d) With respect to persons who change their domicile into or from this state during the taxable year and nonresident persons, the credit under this subsection shall be limited to the fraction of the amount so determined that Wisconsin adjusted gross income is of 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 a person and that person's spouse are not both domiciled in this state during the entire taxable year, their credit under this subsection on a joint return shall be limited to the fraction of the amount so determined that their joint Wisconsin adjusted gross income is of their joint federal adjusted gross income.
71.07(5m)(a)1.
1. "Claimant" means an individual who is eligible to claim the credit under this subsection.
71.07(5m)(a)3.
3. "Household" means a claimant and an individual related to the claimant as husband or wife.
71.07(5m)(a)4.
4. "Net tax liability" means a claimant's income tax liability after he or she completes the computations listed in
s. 71.10 (4) (a) to
(dr).
71.07(5m)(b)
(b)
Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under
s. 71.02, up to the amount of those taxes, one of the following amounts:
71.07(5m)(b)1.
1. If the claimant is single and his or her adjusted gross income is less than $9,000 in the year to which the claim relates, an amount equal to his or her net tax liability.
71.07(5m)(b)2.
2. If the claimant is single and his or her adjusted gross income is at least $9,000 but less than $10,000 in the year to which the claim relates, an amount that is calculated as follows:
71.07(5m)(b)2.a.
a. Calculate the value of a fraction, the denominator of which is $1,000 and the numerator of which is the difference between the claimant's adjusted gross income and $9,000.
71.07(5m)(b)2.c.
c. Multiply the amount of the claimant's net income tax liability by the amount that is calculated under
subd. 2. b.
71.07(5m)(b)3.
3. If the claimant is married and filing jointly and the sum of the claimant's adjusted gross income and his or her spouse's adjusted gross income is less than $18,000 in the year to which the claim relates, an amount equal to the married couple's net tax liability.
71.07(5m)(b)4.
4. If the claimant is married and filing jointly and the sum of the claimant's adjusted gross income and his or her spouse's adjusted gross income is at least $18,000 but less than $19,000 in the year to which the claim relates, an amount that is calculated as follows:
71.07(5m)(b)4.a.
a. Calculate the value of a fraction, the denominator of which is $1,000 and the numerator of which is the difference between the married couple's adjusted gross income and $18,000.
71.07(5m)(b)4.c.
c. Multiply the amount of the married couple's net income tax liability by the amount that is calculated under
subd. 4. b.
71.07(5m)(b)5.
5. If the claimant is married and filing separately and his or her adjusted gross income is less than $9,000 in the year to which the claim relates, an amount equal to his or her net tax liability.
71.07(5m)(b)6.
6. If the claimant is married and filing separately and his or her adjusted gross income is at least $9,000 but less than $10,000 in the year to which the claim relates, an amount that is calculated as follows:
71.07(5m)(b)6.a.
a. Calculate the value of a fraction, the denominator of which is $1,000 and the numerator of which is the difference between the claimant's adjusted gross income and $9,000.
71.07(5m)(b)6.c.
c. Multiply the amount of the claimant's net income tax liability by the amount that is calculated under
subd. 6. b.
71.07(5m)(c)1.1. No credit may be allowed under this subsection unless it is claimed within the time period under
s. 71.75 (2).
71.07(5m)(c)2.
2. Part-year residents and nonresidents of this state are not eligible for the credit under this subsection.
71.07(5m)(c)3.
3. Except as provided in
subd. 4., only one credit per household is allowed each year.
71.07(5m)(c)4.
4. If a married couple files separately, each spouse may claim the credit calculated under
par. (b) 5. or
6., except a married person living apart from the other spouse and treated as single under section
7703 (b) of the Internal Revenue Code may claim the credit under
par. (b) 1. or
2.
71.07(5m)(c)5.
5. The credit under this subsection may not be claimed by a person who may be claimed as a dependent on the individual income tax return of another taxpayer.
71.07(5m)(d)
(d)
Administration. The department of revenue may enforce the credit under this subsection and may take any action, conduct any proceeding and proceed as it is authorized in respect to taxes under this chapter. The income tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest and penalties apply to the credit under this subsection.
71.07(6)(a)(a) For taxable years beginning before January 1, 1998, married persons filing a joint return, except those who reduce their gross income under section
911 or
931 of the internal revenue code, may claim as a credit against, but not to exceed the amount of, Wisconsin net income taxes otherwise due an amount equal to 2% of the earned income of the spouse with the lower earned income, but not more than $300. In this paragraph, "earned income" means qualified earned income, as defined in section
221 (b) of the internal revenue code as amended to December 31, 1985, plus employee business expenses under section 62 (2) (B) to (D) of that code, allocable to Wisconsin under
s. 71.04, plus amounts received by the individual for services performed in the employ of the individual's spouse minus the amount of disability income excluded under
s. 71.05 (6) (b) 4. and minus any other amount not subject to tax under this chapter. Earned income is computed notwithstanding the fact that each spouse owns an undivided one-half interest in the whole of the marital property. A marital property agreement or unilateral statement under
ch. 766 transferring income between spouses has no effect in computing earned income under this paragraph.
71.07(6)(am)1.1. In this paragraph, "earned income" means qualified earned income, as defined in section
221 (b) of the internal revenue code as amended to December 31, 1985, plus employee business expenses under section 62 (2) (B) to (D) of that code, allocable to Wisconsin under
s. 71.04, plus amounts received by the individual for services performed in the employ of the individual's spouse minus the amount of disability income excluded under
s. 71.05 (6) (b) 4. and minus any other amount not subject to tax under this chapter. Earned income is computed notwithstanding the fact that each spouse owns an undivided one-half interest in the whole of the marital property. A marital property agreement or unilateral statement under
ch. 766 transferring income between spouses has no effect in computing earned income under this paragraph.
71.07(6)(am)2.
2. Married persons filing a joint return, except those who reduce their gross income under section
911 or
931 of the Internal Revenue Code, may claim as a credit against the tax imposed under
s. 71.02, up to the amount of those taxes, an amount equal to one of the following:
71.07(6)(am)2.a.
a. For taxable years beginning after December 31, 1997, and before January 1, 1999, 2.17% of the earned income of the spouse with the lower earned income, but not more than $304.
71.07(6)(am)2.b.
b. For taxable years beginning after December 31, 1998, and before January 1, 2000, 2.5% of the earned income of the spouse with the lower earned income, but not more than $350.
71.07(6)(am)2.c.
c. For taxable years beginning after December 31, 1999, and before January 1, 2001, 2.75% of the earned income of the spouse with the lower earned income, but not more than $440.
71.07(6)(am)2.d.
d. For taxable years beginning after December 31, 2000, 3% of the earned income of the spouse with the lower earned income, but not more than $480.
71.07(6)(b)
(b) A claimant who has filed a timely claim under this subsection may file an amended claim with the department of revenue within 4 years of the last day prescribed by law for filing the original claim.
71.07(6m)
(6m) Armed forces member tax credit. 71.07(6m)(a)2.
2. "Military income" means an amount of basic, special or incentive pay income, as those terms are used in
37 USC chapters 3 and
5, received by a claimant from the federal government.
71.07(6m)(b)
(b)
Filing claims. Subject to the limitations and conditions provided in this subsection, a claimant may claim as a credit against the tax imposed under
s. 71.02, up to the amount of those taxes, an amount up to $200 of military income for services performed by the claimant while he or she is stationed outside of the United States.
71.07(6m)(c)1.1. No credit may be allowed under this subsection unless it is claimed within the time period under
s. 71.75 (2).
71.07(6m)(c)2.
2. Part-year residents and nonresidents of this state are not eligible for the credit under this subsection.
71.07(6m)(c)3.
3. If both spouses of a married couple meet the definition of claimant under
par. (a) 1., each spouse may claim the credit under this subsection.
71.07(6m)(d)
(d)
Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.
71.07(7)(a)(a) In this subsection, "state" includes the District of Columbia, but does not include the commonwealth of Puerto Rico or the several territories organized by Congress.
71.07(7)(b)
(b) If a resident individual, estate or trust pays a net income tax to another state, that resident individual, estate or trust may credit the net tax paid to that other state on that income against the net income tax otherwise payable to the state on income of the same year. The credit may not be allowed unless the income taxed by the other state is also considered income for Wisconsin tax purposes. The credit may not be allowed unless claimed within the time provided in
s. 71.75 (2), but
s. 71.75 (4) does not apply to those credits. For purposes of this paragraph, amounts declared and paid pursuant to the income tax law of another state shall be deemed a net income tax paid to that other state only in the year in which the income tax return for that state was required to be filed. Income and franchise taxes paid to another state by a tax-option corporation or limited liability company that is treated as a partnership may be claimed as a credit under this paragraph by that corporation's shareholders or that limited liability company's members who are residents of this state and who otherwise qualify under this paragraph.
71.07(8)
(8) Personal exemptions credit for natural persons. On income of calendar year 1986 and corresponding fiscal years and thereafter, there may be deducted from the tax after it has been computed according to the rates of this section personal exemptions for natural persons as follows:
71.07(8)(a)
(a) An exemption of one of the following amounts if the taxpayer has reached the age of 65 prior to the close of the calendar or fiscal year and if one of the following applies:
71.07(8)(a)1.
1. If the taxpayer is an individual, the taxpayer files an individual return, and has adjusted gross income of less than $30,000 in the year to which the claim relates, $25.
71.07(8)(a)2.
2. If the taxpayer is an individual, the taxpayer files an individual return, and has adjusted gross income of at least $30,000 but less than $31,000 in the year to which the claim relates, the amount obtained by subtracting from $25 2.5% of the amount by which the taxpayer's adjusted gross income exceeds $30,000.
71.07(8)(a)3.
3. If the taxpayer is married, the taxpayer files a joint return, and has adjusted gross income of less than $40,000 in the year to which the claim relates, $25.
71.07(8)(a)4.
4. If the taxpayer is married, the taxpayer files a joint return, and has adjusted gross income of at least $40,000 but less than $41,000 in the year to which the claim relates, the amount obtained by subtracting from $25 2.5% of the amount by which the taxpayer's adjusted gross income exceeds $40,000.
71.07(8)(a)5.
5. If the taxpayer is married, the taxpayer files a separate return, and has adjusted gross income of less than $20,000 in the year to which the claim relates, $25.
71.07(8)(a)6.
6. If the taxpayer is married, the taxpayer files a separate return and has adjusted gross income of at least $20,000 but less than $21,000 in the year to which the claim relates, the amount obtained by subtracting from $25 2.5% of the amount by which the taxpayer's adjusted gross income exceeds $20,000.
71.07(8)(b)
(b) An exemption of $50 for each person for whom the taxpayer is entitled to an exemption for the taxable year under section 151 (c) of the federal internal revenue code.
71.07(8)(c)
(c) With respect to persons who change their domicile into or from this state during the taxable year and nonresident persons, personal exemptions shall be limited to the fraction of the amount so determined that Wisconsin adjusted gross income is of 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 a person and that person's spouse are not both domiciled in this state during the entire taxable year, their personal exemptions on a joint return are determined by multiplying the personal exemption that would be available to each of them if they were both domiciled in this state during the entire taxable year 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.
71.07(8)(d)
(d) No new claim may be filed under this subsection for a taxable year that begins after December 31, 1999.
71.07(9)
(9) School property tax credit. 71.07(9)(a)1.
1. "Claimant" means a natural person who files a claim or on whose behalf a claim is filed under this subsection but does not include an estate, fiduciary or trust.
71.07(9)(a)2.
2. "Principal dwelling" means any dwelling, whether owned or rented, and the land surrounding it that is reasonably necessary for use of the dwelling as a primary dwelling of the claimant and may include a part of a multidwelling or multipurpose building and a part of the land upon which it is built that is used as the claimant's primary dwelling.
