71.07(5n)(c)3.
3. For shareholders of 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(5n)(c)4.
4. For partners of a partnership, the credit may be offset only against the tax imposed on the partner's distributive share of partnership income.
71.07(5n)(c)5.
5. For members of a limited liability company, the credit may be offset only against the tax imposed on the member's distributive share of the limited liability company's income.
71.07(5n)(d)2.
2. For purposes of determining a claimant's eligible qualified production activities income under this subsection, the claimant shall multiply the claimant's qualified production activities income from property manufactured by the claimant by the manufacturing property factor and qualified production activities income from property produced, grown, or extracted by the claimant by the agriculture property factor.
71.07(5n)(d)3.
3. The amount of the eligible qualified production activities income that a claimant may claim in computing the credit under par.
(b) shall be reduced by the amount of the qualified production activities income taxed by another state upon which the credit under sub.
(7) is claimed.
71.07(5r)
(5r) Postsecondary education credit. 71.07(5r)(a)1.
1. “Claimant" means a sole proprietor, a partner, a member of a limited liability company, or a shareholder of a tax-option corporation who files a claim under this subsection.
71.07(5r)(a)3.
3. “Family member" means a spouse or an individual related by blood, marriage, or adoption within the 3rd degree of kinship as computed under s.
990.001 (16).
71.07(5r)(a)4.
4. “Managing employee" means an individual who wholly or partially exercises operational or managerial control over, or who directly or indirectly conducts, the operation of the claimant's business.
71.07(5r)(a)5.
5. “Paid or incurred" includes any amount paid by the claimant to reimburse an individual for the tuition that the individual paid or incurred.
71.07(5r)(a)6.
6. “Qualified postsecondary institution" means all of the following:
71.07(5r)(a)6.a.
a. A University of Wisconsin System institution, a technical college system institution, or a regionally accredited 4-year nonprofit college or university having its regional headquarters and principal place of business in this state.
71.07(5r)(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 an amount equal to the following:
71.07(5r)(b)1.
1. Twenty-five percent of the tuition that the claimant paid or incurred for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a course of instruction and eligible for a grant from the Federal Pell Grant Program.
71.07(5r)(b)2.
2. Thirty percent of the tuition that the claimant paid or incurred for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a course of instruction that relates to a projected worker shortage in this state, as determined by the local workforce development boards established under
29 USC 2832, and if the individual was eligible for a grant from the Federal Pell Grant Program.
71.07(5r)(c)1.1. No credit may be allowed under par.
(b) unless the claimant certifies to the department of revenue that the claimant will not be reimbursed for any amount of tuition for which the claimant claims a credit under par.
(b).
71.07(5r)(c)2.
2. A claimant may not claim the credit under par.
(b) for any tuition amounts that the individual described under par.
(b) excluded under s.
71.05 (6) (b) 28. or under section
127 of the Internal Revenue Code.
71.07(5r)(c)3.
3. A claimant may not claim the credit under par.
(b) for any tuition amounts that the claimant paid or incurred for a family member of the claimant or for a family member of a managing employee unless all of the following apply:
71.07(5r)(c)3.a.
a. The family member was employed an average of at least 20 hours per week as an employee of the claimant, or the claimant's business, during the one-year period prior to commencing participation in the education program in connection with which the claimant claims a credit under par.
(b).
71.07(5r)(c)3.b.
b. The family member is enrolled in a course of instruction that is substantially related to the claimant's business.
71.07(5r)(c)3m.
3m. A claimant may not claim the credit under par.
(b) for any tuition amounts that the claimant paid or incurred for an individual who is not a resident of this state.
71.07(5r)(c)4.
4. The claimant shall claim the credit for the taxable year in which the individual graduates from a course of instruction in an amount equal to the total amount the claimant paid or incurred under par.
(b) for all taxable years in which the claimant paid or incurred such amounts related to that individual.
71.07(5r)(c)5.
5. 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 tuition 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 interest.
71.07(5r)(d)2.
2. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013. Credits under this subsection for taxable years that begin before January 1, 2014, may be carried forward to taxable years that begin after December 31, 2013.
71.07(5rm)(a)2.
2. “Claimant" means a person who files a claim under this subsection, who is an industrial customer of a municipal water utility that is located in a federal renewal community zone in this state, and whose average annual water consumption from that utility for a 24-month period exceeds 1,000,000 Ccf.
71.07(5rm)(b)
(b)
Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2009, and before January 1, 2014, a claimant may claim as a credit against the tax imposed under s.
71.02, up to the amount of the tax, the amount determined as follows, except that the maximum amount that a claimant may claim in a taxable year under this subsection is $300,000:
71.07(5rm)(b)1.
1. Subtract the claimant's 2009 water usage costs from the claimant's water usage costs for the taxable year.
71.07(5rm)(b)2.
2. If the amount determined under subd.
1. is a positive number, multiply that amount by 0.50.
71.07(5rm)(c)
(c)
Limitations. 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.
71.07(5rm)(d)2.
2. No credit may be claimed under this subsection for taxable years beginning after December 31, 2013. Credits under this subsection for taxable years that begin before January 1, 2014, may be carried forward to taxable years that begin after December 31, 2013.
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 percent 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 percent 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 percent 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 percent 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 percent 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(6e)
(6e) Veterans and surviving spouses property tax credit. 71.07(6e)(a)1.
1. “Claimant" means an eligible unremarried surviving spouse, an eligible veteran, or an eligible spouse who files a claim under this subsection.
71.07(6e)(a)1m.
1m. “Eligible spouse" means the spouse of an eligible veteran who files a separate return.
71.07(6e)(a)2.
2. “Eligible unremarried surviving spouse" means an unremarried surviving spouse of one of the following, as verified by the department of veterans affairs:
71.07(6e)(a)2.a.
a. An individual who had served on active duty in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces; who was a resident of this state at the time of entry into that active service or who had been a resident of this state for any consecutive 5-year period after entry into that active duty service; and who, while a resident of this state, died while on active duty.
71.07(6e)(a)2.b.
b. An individual who had served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces; who was a resident of this state at the time of entry into that active service or who had been a resident of this state for any consecutive 5-year period after entry into that active duty service; who was a resident of this state at the time of his or her death; and who had either a service-connected disability rating of 100 percent under
38 USC 1114 or
1134 or a 100 percent disability rating based on individual unemployability.
71.07(6e)(a)2.c.
c. An individual who had served in the national guard or a reserve component of the U.S. armed forces; who was a resident of this state at the time of entry into that service or who had been a resident of this state for any consecutive 5-year period after entry into that service; and who, while a resident of this state, died in the line of duty while on active or inactive duty for training purposes.
71.07(6e)(a)2.d.
d. An individual who had served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces; who was a resident of this state at the time of entry into that active service or who had been a resident of this state for any consecutive 5-year period after entry into that active duty service; who was a resident of this state at the time of his or her death; and following the individual's death, his or her spouse began to receive, and continues to receive, dependency and indemnity compensation, as defined in
38 USC 101 (14).
71.07(6e)(a)3.
3. “Eligible veteran" means an individual who is verified by the department of veterans affairs as meeting all of the following conditions:
71.07(6e)(a)3.a.
a. Served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated in the U.S. armed forces.
71.07(6e)(a)3.b.
b. Was a resident of this state at the time of entry into that active service or had been a resident of this state for any consecutive 5-year period after entry into that service.
71.07(6e)(a)3.c.
c. Is currently a resident of this state for purposes of receiving veterans benefits under ch.
45.
71.07(6e)(a)3.d.
d. Has either a service-connected disability rating of 100 percent under
38 USC 1114 or
1134 or a 100 percent disability rating based on individual unemployability.
71.07(6e)(a)3e.
3e. “Individual unemployability" means a condition under which a veteran has a service-connected disability rating of either 60 percent under
38 USC 1114 or
1134 or two or more service-connected disability conditions where one condition has at least a 40 percent scheduler rating and the combined scheduler rating for all conditions is at least 70 percent, and has an administrative adjustment added to his or her service-connected disability, due to individual unemployability, such that the federal Department of Veterans Affairs rates the veteran 100 percent disabled.
71.07(6e)(a)5.
5. “Property taxes" means real and personal property taxes, exclusive of special assessments, delinquent interest, and charges for service, paid by a claimant, and the claimant's spouse if filing a joint return, on the eligible veteran's or unremarried surviving spouse's principal dwelling in this state 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, except that this limitation does not apply to spouses who file a joint return. 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(6e)(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 the amount of the claimant's property taxes. If the allowable amount of the claim exceeds the income taxes otherwise due on the claimant's income, the amount of the claim not used as an offset against those taxes shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft, or other draft from the appropriation under s.
20.835 (2) (em).
71.07(6e)(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(6e)(c)2.
2. No credit may be allowed under this subsection if the individual, or the individual's spouse, files a claim under sub.
(3m) or
(9) or subch.
VIII or
IX that relates to the same taxable year for which a claim is made under this subsection.
71.07(6e)(c)3.
3. If an eligible veteran and an eligible spouse file separate returns, each spouse may claim a credit under this subsection based on their respective ownership interest in the eligible veteran's principal dwelling.
71.07(6e)(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(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, one of the following amounts:
71.07(6m)(b)1.
1. For taxable years beginning before January 1, 2006, 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)(b)2.
2. For taxable years beginning after December 31, 2005, an amount up to $300 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.
