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.
71.07(9)(a)3.
3. "Property taxes" means real and personal property taxes, exclusive of special assessments, delinquent interest and charges for service, paid by a claimant on the claimant's principal dwelling during the taxable year for which credit under this subsection is claimed, less any property taxes paid which are properly includable as a trade or business expense under section
162 of the internal revenue code. If the principal dwelling on which the taxes were paid is owned by 2 or more persons or entities as joint tenants or tenants in common or is owned by spouses as marital property, "property taxes" is that part of property taxes paid that reflects the ownership percentage of the claimant. If the principal dwelling is sold during the taxable year the "property taxes" for the seller and buyer shall be the amount of the tax prorated to each in the closing agreement pertaining to the sale or, if not so provided for in the closing agreement, the tax shall be prorated between the seller and buyer in proportion to months of their respective ownership. "Property taxes" includes monthly parking permit fees in respect to a principal dwelling collected under
s. 66.0435 (3) (c).
71.07(9)(a)4.
4. "Rent constituting property taxes" means 25% of rent if heat is not included, or 20% of rent if heat is included, paid during the taxable year for which credit is claimed under this subsection, at arm's length, for the use of a principal dwelling and contiguous land, excluding any payment for domestic, food, medical or other services which are unrelated to use of the dwelling as housing, less any rent paid that is properly includable as a trade or business expense under the internal revenue code. "Rent" includes space rental paid to a landlord for parking a mobile home. Rent shall be apportioned among the occupants of a principal dwelling according to their respective contribution to the total amount of rent paid. "Rent" does not include rent paid for the use of housing which was exempt from property taxation, except housing for which payments in lieu of taxes were made under
s. 66.1201 (22).
71.07(9)(b)1.1. Subject to the limitations under this subsection and except as provided in
subds. 2.,
4. and
5., a claimant may claim as a credit against, but not to exceed the amount of, taxes under
s. 71.02, 10% of the first $2,000 of property taxes or rent constituting property taxes, or 10% of the first $1,000 of property taxes or rent constituting property taxes of a married person filing separately.
71.07(9)(b)2.
2. Subject to the limitations under this subsection, a claimant may claim as a credit against, but not to exceed the amount of, taxes under
s. 71.02, the amounts specified in the proposal under
1997 Wisconsin Act 237, section 9256 (2c).
71.07(9)(b)4.
4. For taxable years beginning after December 31, 1998, and before January 1, 2000, subject to the limitations under this subsection a claimant may claim as a credit against, but not to exceed the amount of, taxes under
s. 71.02,
8.4% of the first $0 of property taxes or rent constituting property taxes, or 8.4% of the first $0 of property taxes or rent constituting property taxes of a married person filing separately.
71.07(9)(b)5.
5. For taxable years beginning after December 31, 1999, subject to the limitations under this subsection a claimant may claim as a credit against, but not to exceed the amount of, taxes under
s. 71.02, 12% of the first $2,500 of property taxes or rent constituting property taxes, or 12% of the first $1,250 of property taxes or rent constituting property taxes of a married person filing separately.
71.07(9)(c)
(c) For an unmarried person or a married person filing a separate return who is a part-year resident of this state, the credit under this subsection is limited to that fraction of the amount determined under this subsection that Wisconsin adjusted gross income is of federal adjusted gross income. No credit is allowed under this subsection for unmarried persons or married persons filing separate returns who are nonresidents of this state. If one spouse is not domiciled in this state during the entire taxable year, the credit on a joint return is determined by multiplying the school property tax credit that would be available to them if both spouses were 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. No credit is allowed under this subsection on a joint return if both spouses are nonresidents of this state.
71.07(9)(d)
(d) No credit may be allowed under this subsection unless it is claimed within the period specified in
s. 71.75 (2).
71.07(9)(e)
(e) In any case in which a principal dwelling is rented by a person from another person under circumstances deemed by the department of revenue to be not at arm's length, the department may determine rent at arm's length, and, for purposes of this subsection, such determination shall be final.
71.07(9)(f)
(f) The department of revenue, on its forms and instructions, shall refer to the credit under this subsection as the school property tax credit.
71.07(9e)(a)(a) For taxable years beginning before January 1, 1994, any natural person may credit against the tax imposed under
s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the person is eligible for the taxable year under section
32 (b) (1) (A) to (C) of the internal revenue code:
71.07(9e)(a)1.
1. If the person has one qualifying child who has the same principal place of abode as the person, 5%.
71.07(9e)(a)2.
2. If the person has 2 qualifying children who have the same principal place of abode as the person, 25%.
71.07(9e)(a)3.
3. If the person has more than 2 qualifying children who have the same principal place of abode as the person, 75%.
71.07(9e)(ac)
(ac) For taxable years beginning after December 31, 1994, and before January 1, 1996, any natural person may credit against the tax imposed under
s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the person is eligible for the taxable year under section
32 (b) (1) (A) to (C) of the internal revenue code:
71.07(9e)(ac)1.
1. If the person has one qualifying child who has the same principal place of abode as the person, 4%.
71.07(9e)(ac)2.
2. If the person has 2 qualifying children who have the same principal place of abode as the person, 16%.
71.07(9e)(ac)3.
3. If the person has 3 or more qualifying children who have the same principal place of abode as the person, 50%.
71.07(9e)(ad)
(ad) For taxable years beginning after December 31, 1993, and before January 1, 1995, a person who has one qualifying child who has the same principal place of abode as the person may credit against the tax imposed under
s. 71.02 an amount equal to the amount calculated by one of the following methods, based on the person's earned income or federal adjusted gross income:
71.07(9e)(ad)1.
1. If the person's federal adjusted gross income is below the phase-out income threshold under
par. (at) and the person's earned income is the maximum credit income under
par. (at) or less, the credit shall be the person's earned income multiplied by 1.15%.
71.07(9e)(ad)2.
2. If the person's federal adjusted gross income is below the phase-out income threshold under
par. (at) and the person's earned income is more than the maximum credit income under
par. (at) but not more than the phase-out income threshold, the credit shall be the maximum credit income multiplied by 1.15%.
71.07(9e)(ad)3.
3. If the person's federal adjusted gross income is below the phase-out income threshold under
par. (at) and the person's earned income is more than the phase-out income threshold but not more than the maximum income under
par. (at), the credit shall be the amount obtained by subtracting from the maximum credit under
par. (at), the amount obtained by multiplying by 0.82%, the difference between the person's earned income and the phase-out income threshold.
71.07(9e)(ad)4.
4. If the person's federal adjusted gross income is at or above the phase-out income threshold under
par. (at) but not more than the maximum income under
par. (at), the credit shall be the lesser of one of the following:
71.07(9e)(ad)4.a.
a. If the person's earned income is the maximum credit income under
par. (at) or less, the person's earned income multiplied by 1.15%.
71.07(9e)(ad)4.b.
b. If the person's earned income is more than the maximum credit income under
par. (at) but not more than the phase-out income threshold under
par. (at), the maximum credit income multiplied by 1.15%.
71.07(9e)(ad)4.c.
c. If the person's earned income is more than the phase-out income threshold under
par. (at) but not more than the maximum income under
par. (at), the amount obtained by subtracting from the maximum credit under
par. (at), the amount obtained by multiplying by 0.82%, the difference between the person's earned income and the phase-out income threshold.
71.07(9e)(ad)4.d.
d. The amount obtained by subtracting from the maximum credit under
par. (at), the amount obtained by multiplying by 0.82%, the difference between the person's federal adjusted gross income and the phase-out income threshold under
par. (at).
71.07(9e)(af)
(af) For taxable years beginning after December 31, 1995, any natural person may credit against the tax imposed under
s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the person is eligible for the taxable year under section
32 (b) (1) (A) to (C) of the internal revenue code:
71.07(9e)(af)1.
1. If the person has one qualifying child who has the same principal place of abode as the person, 4%.
71.07(9e)(af)2.
2. If the person has 2 qualifying children who have the same principal place of abode as the person, 14%.
71.07(9e)(af)3.
3. If the person has 3 or more qualifying children who have the same principal place of abode as the person, 43%.
71.07(9e)(ah)
(ah) For taxable years beginning after December 31, 1993, and before January 1, 1995, a person who has 2 qualifying children who have the same principal place of abode as the person may credit against the tax imposed under
s. 71.02 an amount equal to the amount calculated by one of the following methods, based on the person's earned income or federal adjusted gross income:
71.07(9e)(ah)1.
1. If the person's federal adjusted gross income is below the phase-out income threshold under
par. (at) and the person's earned income is the maximum credit income under
par. (at) or less, the credit shall be the person's earned income multiplied by 6.25%.
71.07(9e)(ah)2.
2. If the person's federal adjusted gross income is below the phase-out income threshold under
par. (at) and the person's earned income is more than the maximum credit income under
par. (at) but not more than the phase-out income threshold, the credit shall be the maximum credit income multiplied by 6.25%.
71.07(9e)(ah)3.
3. If the person's federal adjusted gross income is below the phase-out income threshold under
par. (at) and the person's earned income is more than the phase-out income threshold but not more than the maximum income under
par. (at), the credit shall be the amount obtained by subtracting from the maximum credit under
par. (at), the amount obtained by multiplying by 4.47%, the difference between the person's earned income and the phase-out income threshold.
71.07(9e)(ah)4.
4. If the person's federal adjusted gross income is at or above the phase-out income threshold under
par. (at) but not more than the maximum income under
par. (at), the credit shall be the lesser of one of the following:
71.07(9e)(ah)4.a.
a. If the person's earned income is the maximum credit income under
par. (at) or less, the person's earned income multiplied by 6.25%.
71.07(9e)(ah)4.b.
b. If the person's earned income is more than the maximum credit income under
par. (at) but not more than the phase-out income threshold under
par. (at), the maximum credit income multiplied by 6.25%.
71.07(9e)(ah)4.c.
c. If the person's earned income is more than the phase-out income threshold under
par. (at) but not more than the maximum income under
par. (at), the amount obtained by subtracting from the maximum credit under
par. (at), the amount obtained by multiplying by 4.47%, the difference between the person's earned income and the phase-out income threshold.
71.07(9e)(ah)4.d.
d. The amount obtained by subtracting from the maximum credit under
par. (at), the amount obtained by multiplying by 4.47%, the difference between the person's federal adjusted gross income and the phase-out income threshold under
par. (at).
71.07(9e)(ap)
(ap) For taxable years beginning after December 31, 1993, and before January 1, 1995, a person who has more than 2 qualifying children who have the same principal place of abode as the person may credit against the tax imposed under
s. 71.02 an amount equal to the amount calculated by one of the following methods, based on the person's earned income or federal adjusted gross income:
71.07(9e)(ap)1.
1. If the person's federal adjusted gross income is below the phase-out income threshold under
par. (at) and the person's earned income is the maximum credit income under
par. (at) or less, the credit shall be the person's earned income multiplied by 18.75%.
71.07(9e)(ap)2.
2. If the person's federal adjusted gross income is below the phase-out income threshold under
par. (at) and the person's earned income is more than the maximum credit income under
par. (at) but not more than the phase-out income threshold, the credit shall be the maximum credit income multiplied by 18.75%.
71.07(9e)(ap)3.
3. If the person's federal adjusted gross income is below the phase-out income threshold under
par. (at) and the person's earned income is more than the phase-out income threshold but not more than the maximum income under
par. (at), the credit shall be the amount obtained by subtracting from the maximum credit under
par. (at), the amount obtained by multiplying by 13.40%, the difference between the person's earned income and the phase-out income threshold.
71.07(9e)(ap)4.
4. If the person's federal adjusted gross income is at or above the phase-out income threshold under
par. (at) but not more than the maximum income under
par. (at), the credit shall be the lesser of one of the following:
71.07(9e)(ap)4.a.
a. If the person's earned income is the maximum credit income under
par. (at) or less, the person's earned income multiplied by 18.75%.
71.07(9e)(ap)4.b.
b. If the person's earned income is more than the maximum credit income under
par. (at) but not more than the phase-out income threshold under
par. (at), the maximum credit income multiplied by 18.75%.
71.07(9e)(ap)4.c.
c. If the person's earned income is more than the phase-out income threshold under
par. (at) but not more than the maximum income under
par. (at), the amount obtained by subtracting from the maximum credit under
par. (at), the amount obtained by multiplying by 13.40%, the difference between the person's earned income and the phase-out income threshold.
71.07(9e)(ap)4.d.
d. The amount obtained by subtracting from the maximum credit under
par. (at), the amount obtained by multiplying by 13.40%, the difference between the person's federal adjusted gross income and the phase-out income threshold under
par. (at).
71.07(9e)(at)1.1. For taxable years beginning after December 31, 1993, and before January 1, 1995:
71.07(9e)(at)3.
3. For taxable years beginning after December 31, 1993, and before January 1, 1995, the maximum credit is one of the following amounts:
71.07(9e)(at)3.a.
a. If the person has one qualifying child who has the same principal place of abode as the person, the maximum credit income under
subd. 1. a. multiplied by 1.15%.
71.07(9e)(at)3.b.
b. If the person has 2 qualifying children who have the same principal place of abode as the person, the maximum credit income under
subd. 1. a. multiplied by 6.25%.
71.07(9e)(at)3.c.
c. If the person has more than 2 qualifying children who have the same principal place of abode as the person, the maximum credit income under
subd. 1. a. multiplied by 18.75%.
71.07(9e)(b)
(b) No credit may be allowed under this subsection to married persons, except married persons living apart who are treated as single under section
7703 (b) of the internal revenue code, if the husband and wife report their income on separate income tax returns for the taxable year.
71.07(9e)(c)
(c) Part-year residents and nonresidents of this state are not eligible for the credit under this subsection.
71.07(9e)(d)
(d) 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(9e)(e)
(e) No credit may be allowed under this subsection unless it is claimed within the time period under
s. 71.75 (2).
71.07(9e)(f)
(f) Except as provided in
s. 71.80 (3) and
(3m), if the allowable amount of the claim under this subsection exceeds the taxes otherwise due under this chapter or no taxes are due under this chapter, the amount of the claim not used to offset taxes 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 under
s. 20.835 (2) (f) or
(kf).
71.07(9m)
(9m) Supplement to federal historic rehabilitation credit. 71.07(9m)(a)(a) Any person may credit against taxes otherwise due under this chapter, up to the amount of those taxes, an amount equal to 5% of the costs of qualified rehabilitation expenditures, as defined in section
47 (c) (2) of the internal revenue code, for certified historic structures on property located in this state if the physical work of construction or destruction in preparation for construction begins after December 31, 1988, and the rehabilitated property is placed in service after June 30, 1989.
71.07(9m)(c)
(c) No person may claim the credit under this subsection unless the claimant includes with the claimant's return evidence that the rehabilitation was approved by the secretary of the interior under
36 CFR 67.6 before the physical work of construction, or destruction in preparation for construction, began.
71.07(9m)(d)
(d) The Wisconsin adjusted basis of the building shall be reduced by the amount of any credit awarded under this subsection. The Wisconsin adjusted basis of a partner's interest in a partnership, of a member's interest in a limited liability company or of stock in a tax-option corporation shall be adjusted to take into account adjustments made under this paragraph.
71.07(9m)(f)
(f) A partnership, limited liability company or tax-option corporation may not claim the credit under this subsection. The individual partners, members in a limited liability company or shareholders in a tax-option corporation may claim the credit under this subsection based on eligible costs incurred by the partnership, company or tax-option corporation, in proportion to the ownership interest of each partner, member or shareholder. The partnership, limited liability company or tax-option corporation shall calculate the amount of the credit which may be claimed by each partner, member or shareholder and shall provide that information to the partner, member or shareholder.
71.07(9r)
(9r) State historic rehabilitation credit. 71.07(9r)(a)(a) For taxable years beginning on or after August 1, 1988, any natural person may credit against taxes otherwise due under
s. 71.02 an amount equal to 25% of the costs of preservation or rehabilitation of historic property located in this state, including architectural fees and costs incurred in preparing nomination forms for listing in the national register of historic places in Wisconsin or the state register of historic places, if the nomination is made within 5 years prior to submission of a preservation or rehabilitation plan under
par. (b) 3. b., and if the physical work of construction or destruction in preparation for construction begins after December 31, 1988, except that the credit may not exceed $10,000, or $5,000 for married persons filing separately, for any preservation or rehabilitation project.
71.07(9r)(b)
(b) The department of revenue shall approve the credit under this subsection if all of the following conditions are met:
