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:
71.07(9r)(b)1.
1. The costs are incurred and the claim is submitted by the owner of the historic property.
71.07(9r)(b)1m.
1m. The costs included in the claim relate only to preservation or rehabilitation work done to any of the following:
71.07(9r)(b)1m.b.
b. The interior of a window sash if work is done to the exterior of the window sash.
71.07(9r)(b)1m.e.
e. Electrical or plumbing systems, but not electrical or plumbing fixtures.
71.07(9r)(b)2.
2. The historic property, including outbuildings that contribute to the significance of the historic property, is an owner-occupied personal residence if the residence is not actively used in a trade or business, held for the production of income or held for sale or other disposition in the ordinary course of the claimant's trade or business.
71.07(9r)(b)3.a.
a. The property is listed on the national register of historic places in Wisconsin or the state register of historic places, or is determined by the state historical society to be eligible for listing on the national register of historic places in Wisconsin or the state register of historic places, or is located in a historic district which is listed in the national register of historic places in Wisconsin or the state register of historic places and is certified by the state historic preservation officer as being of historic significance to the district, or is an outbuilding of an otherwise eligible property certified by the state historic preservation officer as contributing to the historic significance of the property.
71.07(9r)(b)3.b.
b. The proposed preservation or rehabilitation plan complies with standards promulgated under
s. 44.02 (24) and the completed preservation or rehabilitation substantially complies with the proposed plan.
71.07(9r)(b)4.
4. The preservation or rehabilitation work is completed within 2 years after the date that the physical work of construction or destruction in preparation for construction begins, except in the case of any preservation or rehabilitation which is initially planned for completion in phases, in which case the work shall be completed within 5 years after the date that the physical work of construction or destruction in preparation for construction begins.
71.07(9r)(b)5.
5. The expenditures for preservation or rehabilitation of the historic property exceed $10,000.
71.07(9r)(b)6.
6. The costs are not incurred to acquire any building or interest in a building or to enlarge existing building.
71.07(9r)(b)7.
7. The costs were not incurred before the state historical society approved the proposed preservation or rehabilitation plan under
subd. 3. b.
71.07(9r)(c)
(c) The Wisconsin adjusted basis of the historic property shall be reduced by the amount of any credit awarded under this subsection.
71.07(9r)(f)
(f) No natural person may claim a credit under this subsection and under
sub. (9m) for the same expenses.
71.07(9r)(i)
(i) If the historic property is owned by 2 or more natural persons that hold legal title or equitable title as a land contract vendee and are not joint tenants, tenants in common or spouses owning marital property, the credit under this subsection may be claimed as follows:
71.07(9r)(i)1.
1. For projects benefiting one owner, a natural person may claim the credit based on eligible costs incurred individually.
71.07(9r)(i)2.
2. For projects benefiting 2 or more owners, a natural person may claim the credit based on eligible costs incurred by the benefiting owners in proportion to the natural person's ownership interest.
71.07(9r)(j)
(j) No natural person may claim the credit under this subsection for any of the following:
71.07(9r)(j)2.
2. Rehabilitation of historic property if the historic property was acquired by the claimant under an agreement requiring the claimant to sell or otherwise dispose of the historic property back to the previous owner within 5 years after the date that the historic property was acquired.
71.07(9r)(k)
(k) A natural person who receives a credit under this subsection shall add to his or her liability for taxes imposed under
s. 71.02 one of the following percentages of the amount of the credits received under this subsection for rehabilitating or preserving the property if, within 5 years after the date on which the preservation or rehabilitation work that was the basis of the credit is completed, the person either sells or conveys the property by deed or land contract or the state historical society certifies to the department of revenue that the historic property has been altered to the extent that it does not comply with the standards promulgated under
s. 44.02 (24):
71.07(9r)(k)1.
1. If the sale, conveyance or noncompliance occurs during the first year after the date on which the preservation or rehabilitation is completed, 100%.
71.07(9r)(k)2.
2. If the sale, conveyance or noncompliance occurs during the 2nd year after the date on which the preservation or rehabilitation is completed, 80%.
71.07(9r)(k)3.
3. If the sale, conveyance or noncompliance occurs during the 3rd year after the date on which the preservation or rehabilitation is completed, 60%.
71.07(9r)(k)4.
4. If the sale, conveyance or noncompliance occurs during the 4th year after the date on which the preservation or rehabilitation is completed, 40%.
71.07(9r)(k)5.
5. If the sale, conveyance or noncompliance occurs during the 5th year after the date on which the preservation or rehabilitation is completed, 20%.
71.07 Cross-reference
Cross Reference: See also ch.
HS 3, Wis. adm. code.
71.07(10)
(10) Credits not allowed. The credits under
s. 71.28 (4) and
(5) may not be claimed by partners, including partners of a publicly traded partnership treated as a corporation under
s. 71.22 (1), members of a limited liability company, including members of a limited liability company treated as a corporation under
s. 77.22 (1), or shareholders of a tax-option corporation.
71.07 History
History: 1987 a. 312;
1987 a. 411 ss.
63,
79 to
82,
85,
86;
1987 a. 419,
422;
1989 a. 31,
44,
56,
100,
359;
1991 a. 39,
269,
292;
1993 a. 16,
112,
204,
471,
491;
1995 a. 27 ss.
3377m to
3393m,
9116 (5);
1995 a. 209,
227,
400,
453;
1997 a. 27,
41,
237,
299;
1999 a. 5,
9,
10,
32;
1999 a. 150 s.
672;
1999 a. 198;
2001 a. 16,
109;
2003 a. 72,
99,
135,
183,
255,
267,
326.
71.08(1)(1)
Imposition. If the tax imposed on a natural person, married couple filing jointly, trust, or estate under
s. 71.02, not considering the credits under
ss. 71.07 (1),
(2dd),
(2de),
(2di),
(2dj),
(2dL),
(2dr),
(2ds),
(2dx),
(2fd),
(3m),
(3n),
(3s),
(3t),
(5b),
(5d),
(6), and
(9e),
71.28 (1dd),
(1de),
(1di),
(1dj),
(1dL),
(1ds),
(1dx),
(1fd),
(2m),
(3),
(3n), and
(3t) and
71.47 (1dd),
(1de),
(1di),
(1dj),
(1dL),
(1ds),
(1dx),
(1fd),
(2m),
(3),
(3n), and
(3t) and
subchs. VIII and
IX and payments to other states under
s. 71.07 (7), is less than the tax under this section, there is imposed on that natural person, married couple filing jointly, trust, or estate, instead of the tax under
s. 71.02, an alternative minimum tax computed as follows:
71.08(1)(a)
(a) Adjust the alternative minimum taxable income, as defined in section
55 (b) (2) of the internal revenue code, by the amounts under
s. 71.05 (6) to
(21), except
s. 71.05 (6) (a) 13. and
(b) 5. and
(8), by the amounts needed to modify federal alternative tax net operating loss deductions to reflect differences between Wisconsin net operating loss deductions and federal net operating loss deductions for minimum tax purposes. The department of revenue shall by rule define Wisconsin net operating loss deductions for minimum tax purposes.
71.08(1)(b)
(b) Subtract the amount under section
57 (a) (5) of the internal revenue code from the amount under
par. (a).
71.08(1)(bm)
(bm) For stocks acquired after December 31, 1987, under incentive stock options, as defined in section
422A (b) of the internal revenue code:
71.08(1)(bm)1.
1. At the time that the incentive stock option is included in alternative minimum taxable income under section
56 (b) (3) of the internal revenue code, subtract from the amount in
par. (b) 20% of the amount included in federal alternative minimum taxable income under section
56 (b) (3) of the internal revenue code.
71.08(1)(bm)2.
2. At the time that the stock that was subject to
subd. 1. is disposed of, add 20% of the gain or loss adjustment resulting from the basis adjustment made under section
56 (b) (3) of the internal revenue code to the amount in
par. (b).
71.08(1)(c)
(c) For nonresidents and part-year residents, adjust the amount under
par. (bm) so that itemized deductions and personal exemptions are prorated on the basis of the ratio of Wisconsin adjusted gross income to federal adjusted gross income.
71.08(1)(d)
(d) Subtract from the amount under
par. (c) the appropriate amount under section
55 (d) (1) and (3) of the internal revenue code; except that surviving spouses shall be treated as single individuals; except that the amount under
par. (c), not the federal alternative minimum taxable income, shall be used in calculating the phase-out and except that for nonresidents and part-year residents the amount under section
55 (d) (1) and (3) of the internal revenue code shall be prorated on the basis of the ratio of Wisconsin adjusted gross income to federal adjusted gross income.
71.08(2)
(2) Joint liability. If the requirements under
sub. (1) are applicable and the spouses file a joint income tax return, they shall file a joint minimum tax return and are jointly and severally liable for the tax imposed under
sub. (1) and for the interest, penalties, fees, additions to tax and additional assessments with respect to the tax.
71.08(3)
(3) Administration. The department of revenue shall have full power to impose, enforce and collect the minimum tax provided in this section and may take any action, conduct any proceeding and in all respects proceed as it is authorized in respect to income taxes imposed in this chapter. The income tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest and penalties shall apply to the minimum tax.
71.08(4)
(4) Tax benefit rule. The department of revenue shall promulgate rules to provide that the amount under
sub. (1) may be reduced to prevent the inclusion of any amounts, except the federal standard deductions, itemized deductions and personal exemptions, that do not reflect a benefit in respect to the tax imposed under
s. 71.02.
71.09
71.09
Payment of estimated taxes. 71.09(1)
(1)
Definitions. In this section:
71.09(1)(a)
(a) "Farmers or fishers" are individuals, estates or trusts whose estimated gross income from farming or fishing for the taxable year is at least two-thirds of the total estimated gross income from all sources for the taxable year or individuals, estates or trusts whose gross income from farming or fishing for the preceding taxable year was at least two-thirds of the total gross income from all sources shown on that return. If a person files a joint return, the income of both that person and that person's spouse shall be considered in determining whether the person is a farmer or fisher.
71.09(1)(am)
(am) "Return" means a return that would show the tax properly due.
71.09(1)(b)
(b) "Tax shown on the return" and "tax for the taxable year" mean the net tax imposed under
s. 71.02 after reduction for exemptions to, and credits against, that tax but before reduction by amounts withheld under
subch. X and before reduction for amounts paid as estimated tax under this section for that tax plus the tax imposed under
s. 71.08 before reduction for amounts paid as estimated tax under this section for that tax plus the surcharge imposed under
s. 77.93 before reduction for amounts paid as estimated tax under this section for that surcharge.
71.09(2)
(2) Who shall pay. Every individual, estate and trust deriving income subject to taxation under this chapter, other than wages as defined in
s. 71.63 (6) upon which taxes are withheld by the individual's employer under
subch. X, shall pay estimated income tax, the surcharge under
s. 77.93 and alternative minimum tax. This section does not apply to any person on active duty with the U.S. armed forces while stationed outside the continental United States. This section does not apply to any taxable year ending before the date 2 years after the date of a decedent's death with respect to the estate of such decedent or any trust all of which is treated under subpart E of part I of subchapter J of
chapter 1 of the internal revenue code as owned by the decedent and to which the residue of the decedent's estate will pass under his or her will. This section does not apply to any trust that is subject to tax under this chapter on unrelated business taxable income as defined under section
512 of the internal revenue code. Those trusts are subject to estimated tax payments under
s. 71.29.
71.09(3)
(3) Farmers or fishers. Payments of estimated income tax required by
sub. (2) from farmers or fishers may be made at any time on or before the 15th day of the first month of the succeeding taxable year.
71.09(4)
(4) Farmers or fishers exception. Except as provided in
sub. (1) (am), if on or before the first day of the 3rd month of the succeeding taxable year a farmer or a fisher files a return for the taxable year, for which estimated taxes were required on or before the 15th day of the first month of the succeeding taxable year under
sub. (3), and pays in full the amount computed on the return as payable, then that payment satisfies any required estimated tax installments.
71.09(5)
(5) Amount. The amount of the estimated income tax shall be the total estimated tax, including surtaxes, if any, reduced by the amount, if any, the individual, estate or trust determines will be withheld from wages pursuant to
subch. X.
71.09(7)
(7) Refund carry-forward. If the taxpayer claims a refund on any tax return and, concurrent with or subsequent to the filing of the return upon which such refund is claimed, is required to pay an estimated tax, and at the time of paying that tax the refund has not been paid, he or she may deduct the amount of such refund from the first installment of estimated taxes, and any excess from the succeeding installments. If a refund is paid after the due date of the last installment, its receipt shall be reflected on the income tax return covering the year. If the refund is disallowed in whole or in part after the due date of the last installment, that disallowance must be reflected on the income tax return covering the year.
71.09(8)
(8) Prepayments. Any installment of the estimated tax under this section may be paid prior to the date prescribed for its payment.
71.09(9)
(9) Short year. Application of this section to taxable years of less than 12 full months shall be made pursuant to rules of the department.
71.09(10)
(10) Overpayment. When the amount of an installment payment of estimated tax exceeds the amount determined to be the correct amount of such installment payment, the overpayment shall be credited against the unpaid installment, if any.
71.09(11)
(11) Exceptions to interest. No interest is required under
s. 71.84 (1) if any of the following conditions apply:
71.09(11)(a)
(a) The tax shown on the return or, if no return is filed, the tax, minus amounts withheld under
subch. X, is less than $200.
71.09(11)(b)
(b) The preceding taxable year was 12 months, the taxpayer had no liability under
s. 71.02 or
71.08 for that year and the taxpayer was a resident of this state for all of that year.
71.09(11)(c)
(c) The secretary of revenue determines that because of casualty, disaster or other unusual circumstances it is not equitable to impose interest.
71.09(11)(d)
(d) The secretary of revenue determines that the taxpayer retired during the taxable year or during the preceding taxable year after having attained age 62 or becoming disabled and that the underpayment was due to reasonable cause and not due to willful neglect.
71.09(12)
(12) Installment due dates. Taxpayers shall make estimated payments in 4 installments, on or before the 15th day of each of the following months:
71.09(13)(a)(a) Except as provided in
pars. (b),
(c) and
(d), the amount of each installment required under
sub. (12) is 25% of the lower of the following amounts:
71.09(13)(a)1.
1. Ninety percent of the tax shown on the return for the taxable year or, if no return is filed, 90% of the tax for the taxable year.
