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 municipal 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 percent of rent if heat is not included, or 20 percent 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 or manufactured 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 percent of the first $2,000 of property taxes or rent constituting property taxes, or 10 percent 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 percent of the first $0 of property taxes or rent constituting property taxes, or 8.4 percent 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 percent of the first $2,500 of property taxes or rent constituting property taxes, or 12 percent 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 percent.
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 percent.
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 percent.
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 percent.
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 percent.
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 percent.
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 percent.
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 percent.
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 percent, 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 percent.
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 percent.
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 percent, 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 percent, 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, and before January 1, 2011, 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 percent.
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 percent.
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 percent.
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 percent.
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 percent.
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 percent, 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 percent.
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 percent.
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 percent, 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 percent, the difference between the person's federal adjusted gross income and the phase-out income threshold under
par. (at).
71.07(9e)(aj)
(aj) For taxable years beginning after December 31, 2010, an individual 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)(aj)1.
1. If the person has one qualifying child who has the same principal place of abode as the person, 4 percent.
71.07(9e)(aj)2.
2. If the person has 2 qualifying children who have the same principal place of abode as the person, 11 percent.
71.07(9e)(aj)3.
3. If the person has 3 or more qualifying children who have the same principal place of abode as the person, 34 percent.
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 percent.
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 percent.
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 percent, 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 percent.
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 percent.
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 percent, 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 percent, 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 percent.
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 percent.
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 percent.
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(9e)(g)1.1. If an individual claims the credit under this subsection and claims the federal advance earned income tax credit, the individual may request that his or her employer add to his or her paycheck an advance payment amount calculated under
subd. 2.
71.07(9e)(g)2.
2. The advance payment amount that an individual's employer shall add to the individual's paycheck, as described in
subd. 1., shall be equal to a percentage of the amount that the individual's employer adds to the individual's paycheck as an advance earned income tax credit payment under federal law. The percentage shall be the same percentage as is specified in
par. (af), based on the number of qualifying children that the individual has.
71.07(9e)(g)3.
3. An employer may deduct from the aggregate amount that the employer would otherwise be required to withhold from employee wages and forward to the department, under
ss. 71.64 and
71.65, the total amount of any advance payments the employer makes under
subd. 2.
71.07(9e)(g)4.
4. The department shall prepare any forms and instructions that may be necessary to facilitate the addition of the advance payment amount calculated under
subd. 2. to an individual's paycheck and any changes to the withholding procedures as described under
subd. 3.
71.07 Cross-reference
Cross-reference: See also ss.
Tax 2.07, Wis. adm. code.
71.07(9m)
(9m) Supplement to federal historic rehabilitation credit. 71.07(9m)(a)1m.1m. For taxable years beginning before January 1, 2014, any person may credit against taxes otherwise due under this chapter, up to the amount of those taxes, an amount equal to 5 percent, for taxable years beginning before January 1, 2013, or 10 percent, for taxable years beginning after December 31, 2012, and before January 1, 2014, 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, and before January 1, 2014.
71.07(9m)(a)2m.
2m. For taxable years beginning after December 31, 2013, any person may claim as a credit against taxes otherwise due under
s. 71.02 or
71.08, up to the amount of those taxes, an amount equal to 20 percent 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 cost of the person's qualified rehabilitation expenditures is at least $50,000 and the rehabilitated property is placed in service after December 31, 2013.
71.07(9m)(a)3.
3. For taxable years beginning after December 31, 2013, any person may claim as a credit against taxes otherwise due under
s. 71.02 or
71.08, up to the amount of those taxes, an amount equal to 20 percent of the costs of qualified rehabilitation expenditures, as defined in section
47 (c) (2) of the Internal Revenue Code, for qualified rehabilitated buildings, as defined in section
47 (c) (1) of the Internal Revenue Code, on property located in this state, if the cost of the person's qualified rehabilitation expenditures is at least $50,000 and the rehabilitated property is placed in service after December 31, 2013, and regardless of whether the rehabilitated property is used for multiple or revenue-producing purposes. No credit may be claimed under this subdivision for property listed as a contributing building in the state register of historic places or in the national register of historic places and no credit may be claimed under this subdivision for nonhistoric, nonresidential property converted into housing if the property has been previously used for housing.
71.07(9m)(c)
(c) No person may claim the credit under
par. (a) 2m. unless the claimant includes with the claimant's return a copy of the claimant's certification under
s. 238.17. For certification purposes under
s. 238.17, the claimant shall provide to the Wisconsin Economic Development Corporation all of the following:
71.07(9m)(c)1.
1. Evidence that the rehabilitation was recommended by the state historic preservation officer for approval by the secretary of the interior under
36 CFR 67.6 before the physical work of construction, or destruction in preparation for construction, began and that the rehabilitation was approved by the state historic preservation officer.
71.07(9m)(c)2.
2. Evidence that the taxpayer obtained written certification from the state historic preservation officer that:
71.07(9m)(c)2.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 that 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(9m)(c)2.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(9m)(c)2.c.
c. The costs are not incurred to acquire any building or interest in a building or to enlarge an existing building.
71.07(9m)(c)2.d.
d. The costs were not incurred before the state historical society approved the proposed preservation or rehabilitation plan.
71.07(9m)(cm)
(cm) Any credit claimed under this subsection for Wisconsin purposes shall be claimed at the same time as for federal purposes.
71.07(9m)(cn)
(cn) For taxable years beginning after December 31, 2014, the Wisconsin Economic Development Corporation shall certify a person to claim a credit under
par. (a) 3. if all of the following apply:
