AB68,868,18 3. Only cash and marketable securities may be contributed to an account created under subd. 1.

AB68,868,21 4. Persons other than an account holder may contribute to an account created under subd. 1, but the subtraction under s. 71.05 (6) (b) 55. may be made only by the account holder.

AB68,868,25 (c) Account holder rights and responsibilities. 1. An account holder may withdraw funds from an account created under par. (b) 1. to pay eligible costs for the benefit of the beneficiary or to reimburse the beneficiary for eligible costs the beneficiary incurs and has paid.

AB68,869,3 2. An account holder may not use funds in an account created under par. (b) 1. to pay any expenses he or she incurs in administering the account, although a financial institution may deduct a service fee from the account.

AB68,869,7 3. Annually, an account holder shall submit to the department with his or her income tax return, on forms prepared by the department, information regarding the account created under par. (b) 1. The information submitted shall include all of the following:

AB68,869,9 a. A list of transactions in the account during the taxable year to which the return relates, including the beginning and ending balances of the account.

AB68,869,10 b. The 1099 form issued by the financial institution that relates to the account.

AB68,869,12 c. A list of eligible costs, and other costs, for which funds from the account were withdrawn during the taxable year to which the return relates.

AB68,869,17 4. An account holder may withdraw funds from an account created under par. (b) 1. with no penalty due under s. 71.83 (1) (ch) and no responsibility to make an addition under s. 71.05 (6) (a) 30. if he or she immediately transfers the funds to a different financial institution and deposits the funds into an account created under par. (b) 1. at that financial institution.

AB68,869,20 (d) Limitations on accounts, dissolution. 1. An account holder may not claim a subtraction under s. 71.05 (6) (b) 55. for more than a total of $50,000 of deposits into any account created under par. (b) 1. for each beneficiary.

AB68,869,23 2. An account holder shall dissolve an account created under par. (b) 1. no later than 120 months after it is created. The financial institution shall distribute any funds in the account at dissolution to the account holder.

AB68,870,3 3. If an account holder dies while funds remain in an account created under par. (b) 1., the account shall be dissolved and the financial institution shall distribute the funds to the account holder's estate.

AB68,870,4 (e) Department responsibilities. The department shall:

AB68,870,7 1. Prepare and distribute any forms that an account holder is required to submit under par. (c) 3. and any other forms necessary to administer this subsection and the adjustments to income under s. 71.05 (6) (a) 30. and (b) 55.

AB68,870,9 2. Prepare and distribute to financial institutions and potential homebuyers informational materials about the accounts described in this subsection.

AB68,1319 Section 1319. 71.26 (3) (j) of the statutes is amended to read:

AB68,870,19 71.26 (3) (j) Sections 243, 244, 245, 245A, 246 and 246A are excluded and replaced by the rule that corporations may deduct from income dividends received from a corporation with respect to its common stock if the corporation receiving the dividends owns, directly or indirectly, during the entire taxable year at least 70 percent of the total combined voting stock of the payor corporation. In this paragraph, “dividends received" means gross dividends minus taxes on those dividends paid to a foreign nation and claimed as a deduction under this chapter. The same dividends may not be deducted more than once and may not be used in the determination of a net business loss under ss. 71.26 (4) and 71.45 (4).

AB68,1320 Section 1320. 71.26 (4) (a) of the statutes is amended to read:

AB68,871,13 71.26 (4) (a) Except as provided in par. (b) and s. 71.80 (25), a corporation, except a tax-option corporation or an insurer to which s. 71.45 (4) applies, may offset against its Wisconsin net business income any Wisconsin net business loss incurred in any of the 20 immediately preceding taxable years, if the corporation was subject to taxation under this chapter in the taxable year in which the loss was incurred, to the extent not offset by other items of Wisconsin income in the loss year and by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed. For purposes of this subsection, Wisconsin net business income or loss shall consist of all the income attributable to the operation of a trade or business in this state, less the business expenses allowed as deductions in computing net income, except that the dividends received deduction under sub. (3) (j) may not be used in the determination of a net business loss. The Wisconsin net business income or loss of corporations engaged in business within and without the state shall be determined under s. 71.25 (6) and (10) to (12). Nonapportionable losses having a Wisconsin situs under s. 71.25 (5) (b) shall be included in Wisconsin net business loss; and nonapportionable income having a Wisconsin situs under s. 71.25 (5) (b), whether taxable or exempt, shall be included in other items of Wisconsin income and Wisconsin net business income for purposes of this subsection.

AB68,1321 Section 1321. 71.28 (3q) (c) 1. of the statutes is renumbered 71.28 (3q) (c) 1. a. and amended to read:

AB68,871,24 71.28 (3q) (c) 1. a. Partnerships Except as provided in subd. 1. b., 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.

AB68,1322 Section 1322. 71.28 (3q) (c) 1. b. of the statutes is created to read:

AB68,872,13 71.28 (3q) (c) 1. b. For taxable years beginning after December 31, 2021, partnerships, limited liability companies, and tax-option corporations may elect to claim the credit under this subsection, if the credit results from a contract entered into with the Wisconsin Economic Development Corporation before December 22, 2017. A partnership, limited liability company, or tax-option corporation that wishes to make the election under this subd. 1. b. shall make the election for each taxable year on its original return and may not subsequently make or revoke the election. If a partnership, limited liability company, or tax-option corporation elects to claim the credit under this subsection, the partners, members, and shareholders may not claim the credit under this subsection. The credit may not be claimed under this subd. 1. b. if one or more partners, members, or shareholders have claimed the credit under this subsection for the same taxable year for which the credit is claimed under this subd. 1. b.

AB68,1323 Section 1323. 71.28 (3w) (a) 1. of the statutes is renumbered 71.28 (3w) (a) 1. a. and amended to read:

AB68,872,18 71.28 (3w) (a) 1. a. “Base Except as provided in subd. 1. b., “base year" means the taxable year beginning during the calendar year prior to the calendar year in which the enterprise zone in which the claimant is located takes effect.

AB68,1324 Section 1324. 71.28 (3w) (a) 1. b. of the statutes is created to read:

AB68,872,23 71.28 (3w) (a) 1. b. For a claimant whose contract with the Wisconsin Economic Development Corporation under s. 238.399 is executed after December 31, 2021, “base year” means the 12-month period prior to the date on which the claimant was certified under s. 238.399 (5).

AB68,1325 Section 1325. 71.28 (3w) (a) 2m. of the statutes is created to read:

AB68,873,2 71.28 (3w) (a) 2m. “Contract” means a contract between the claimant and Wisconsin Economic Development Corporation under s. 238.399.