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 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 percent. 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 percent. 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 percent. 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 percent. 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 percent. 71.07 Cross-referenceCross-reference: See also ch. HS 3, Wis. adm. code. 71.07(10)(10) Employee college savings account contribution credit. 71.07(10)(a)1.1. “Claimant” means an individual who files a claim under this subsection and who is a sole proprietor and an employer and contributes to an employee’s college savings account under par. (b). or who is a partner of a partnership, member of a limited liability company, or shareholder of a tax-option corporation that is an employer and that contributes to an employee’s college savings account under par. (b). 71.07(10)(a)3.3. “Employer” means a person for whom an individual performs or performed any service as an employee of that person and who is required to furnish a W-2 form to the employee for federal income tax purposes. 71.07(10)(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, for each employee of an employer, an amount equal to the amount the employer paid into a college savings account owned by the employee in the taxable year in which the contribution is made. 71.07(10)(c)1.1. 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 the 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(10)(c)2.2. The maximum amount of the credit per employee that a claimant may claim under this subsection is an amount equal to 50 percent of the amount the employee’s employer contributed to the employee’s college savings account, not to exceed a maximum credit of $800. For taxable years beginning after December 31, 2024, the dollar amount in this subdivision shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2023, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year. The amount that is revised under this subdivision shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the change in the dollar amount required under this subdivision and incorporate the change into the income tax forms and instructions. 71.07(10)(c)3.3. A credit may be claimed under par. (b) only if, for federal income tax purposes, the compensation of the employee described in par. (b) is reported, or required to be reported, on a W-2 form issued by the claimant. 71.07(11)(11) Qualifying transportation services credit. 71.07(11)(a)1.1. “Claimant” means a person who is considered blind under section 63 (f) (4) of the Internal Revenue Code and who files a claim under this subsection. 71.07(11)(a)2.2. “Qualifying transportation services” means transportation services provided between a person’s place of residence and place of employment by means of mass transit, paratransit, taxicab, or transportation network company, as defined in s. 440.40 (6). 71.07(11)(b)(b) Filing claims. For taxable years beginning after December 31, 2023, and 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, an amount equal to 50 percent of the amount paid by the claimant during the taxable year for qualifying transportation services. 71.07(11)(c)1.1. No credit may be allowed under this subsection for an amount paid for qualifying transportation services if the source of the payment is an amount withdrawn from an ABLE account described under section 529A (b) (1) of the Internal Revenue Code and if the owner of the account or other person who deposited into the account has claimed a subtraction under s. 71.05 (6) (b) 52. that relates to such an amount. 71.07(11)(c)2.2. No credit may be allowed under this subsection for an amount paid for qualifying transportation services if the claimant is reimbursed for the amount paid. 71.07(11)(c)3.3. The maximum amount of the credit that a claimant may claim under this subsection in a taxable year is $1,500. 71.07(11)(c)4.4. No credit may be allowed under this subsection unless it is claimed within the period specified in s. 71.75 (2). 71.07(11)(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 HistoryHistory: 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; 2005 a. 25, 49, 72, 74, 97, 177, 254, 361, 387, 479, 483, 487; 2007 a. 11, 20, 96, 97, 100; 2009 a. 2, 11, 28, 180, 185, 265, 267, 269, 276, 294, 295, 332, 401; 2011 a. 15, 32, 67, 212, 213, 232, 237; 2011 a. 260 s. 80; 2013 a. 20, 54, 62, 116, 145; 2013 a. 166 s. 77; 2015 a. 55, 186; 2015 a. 197 s. 51; 2015 a. 237, 312; 2017 a. 58, 59, 176, 197; 2017 a. 364 ss. 11 to 13, 48; 2017 a. 365 s. 111; 2017 a. 366, 368; 2019 a. 54, 167; 2021 a. 1, 58, 127; 2021 a. 238 ss. 44, 45; 2023 a. 12, 19, 101, 138, 142, 143, 148. 71.07 AnnotationWisconsin’s Qualified New Business Venture Program: Building on the Foundation to Maximize Entrepreneurial Growth. Herdrich. 2014 WLR 1031.
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), (2dx), (2dy), (3m), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (5b), (5d), (5i), (5j), (5n), (6), (6e), (8b), (9e), (9m), and (9r), 71.28 (1dx), (1dy), (2m), (3), (3n), (3t), (3w), (3wm), and (3y), 71.47 (1dx), (1dy), (2m), (3), (3n), (3t), (3w), and (3y), 71.57 to 71.61, and 71.613 and subch. VIII 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 NoteNOTE: Sections 71.07 (3m), 71.28 (2m), and 71.47 (2m) were repealed by 2021 Wis. Act 127. Corrective legislation is pending. 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 percent 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 percent 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) of the federal Internal Revenue Code in effect for the taxable year; 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) of the federal Internal Revenue Code in effect for the taxable year 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. 71.08(5)(5) Sunset. This section does not apply to taxable years beginning after December 31. 71.08 HistoryHistory: 1987 a. 312, 411; 1989 a. 31; 1991 a. 39; 1995 a. 27, 209; 1997 a. 27, 237; 1999 a. 9; 2001 a. 109; 2003 a. 99, 135, 255, 326; 2005 a. 25, 177, 361, 479, 483; 2007 a. 20, 97; 2009 a. 2, 28, 269, 295; 2011 a. 260 ss. 24, 80; 2013 a. 62, 145; 2015 a. 55; 2017 a. 58, 59, 176, 231; 2019 a. 54; 2023 a. 138. 71.0971.09 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 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 and the surcharge under s. 77.93. 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 Cross-referenceCross-reference: See also s. Tax 2.89, Wis. adm. code. 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 $500. 71.09(11)(b)(b) The preceding taxable year was 12 months, the taxpayer had no liability under s. 71.02 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 except that this paragraph does not apply upon a showing by the department under s. 73.16 (4). 71.09(11)(e)(e) For taxable years beginning after December 31, 2008, the taxpayer qualifies for a federal extension of time to file under 26 USC 7508A due to a presidentially declared disaster or terroristic or military action. 71.09(11)(f)(f) The taxpayer has underpaid the taxpayer’s estimated taxes due to the change in brackets under s. 71.06 (1p) (e) and (2) (g) 5. and (h) 5. This paragraph applies only in the first taxable year to which these bracket changes apply. 71.09(11)(g)(g) The taxpayer has underpaid the taxpayer’s estimated taxes due to the change in the percentage under s. 71.07 (5n) (b) 3. This paragraph applies only to taxable years beginning after December 31, 2014, and before January 1, 2016. 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 percent 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 percent of the tax for the taxable year. 71.09(13)(a)2.2. The tax shown on the return for the preceding year. If a husband and wife who filed separate returns for the preceding taxable year file a joint return, the tax shown on the return for the preceding year is the sum of the taxes shown on the separate returns of the husband and wife. If a husband and wife who filed a joint return for the preceding taxable year file separate returns, the tax shown on the return for the preceding year is the husband’s or wife’s proportion of that tax based on what their respective tax liabilities for that year would have been had they filed separately. 71.09(13)(b)(b) Paragraph (a) 2. does not apply if the preceding taxable year was less than 12 months or if the taxpayer did not file a return for the preceding taxable year.
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