Chapter 71

71.07(6n)(b)1. 1. For each disabled veteran the claimant hires in the taxable year to work a full-time job at the claimant’s business in this state, $4,000 in the taxable year in which the disabled veteran is hired and $2,000 in each of the 3 taxable years following the taxable year in which the disabled veteran is hired.

71.07(6n)(b)2. 2. Subject to par. (c) 4., for each disabled veteran the claimant hires in the taxable year to work a part-time job at the claimant’s business in this state, $2,000 in the taxable year in which the disabled veteran is hired and $1,000 in each of the 3 taxable years following the taxable year in which the disabled veteran is hired.

71.07(6n)(c) (c) Limitations.

71.07(6n)(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 hiring of disabled veterans, as described 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(6n)(c)2. 2. No credit may be claimed under this subsection in any taxable year in which the disabled veteran voluntarily or involuntarily leaves his or her employment with the claimant.

71.07(6n)(c)3. 3. A claimant may claim a credit under this subsection only for hiring a disabled veteran who has received unemployment compensation benefits for at least one week prior to being hired by the claimant, who was receiving such benefits at the time that he or she was hired by the claimant, and who was eligible to receive such benefits at the time the benefits were paid.

71.07(6n)(c)4. 4. With regard to a credit claimed under par. (b) 2., the amount that the claimant may claim is determined as follows:

71.07(6n)(c)4.a. a. Divide the number of hours that the disabled veteran worked for the claimant during the taxable year by 2,080.

71.07(6n)(c)4.b. b. Multiply the amount of the credit under par. (b) 2., as appropriate, by the number determined under subd. 4. a.

71.07(6n)(d) (d) Administration.

71.07(6n)(d)1. 1. Section 71.28 (5b) (e) to (h), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.

71.07(6n)(d)2. 2. No credit may be claimed under this subsection for taxable years beginning after December 31, 2012. Credits under this subsection for taxable years that begin before January 1, 2013, may be carried forward to taxable years that begin after December 31, 2012.

Effective date note NOTE: Sub. (6n) is repealed eff. 1-1-34 by 2025 Wis. Act 118.

71.07(7) (7) Other state tax credit.

71.07(7)(a) (a) In this subsection:

71.07(7)(a)1. 1. “Net Wisconsin income tax” means the gross Wisconsin income tax less all nonrefundable credits that may be claimed by that taxpayer, except the credit for taxes paid to other states.

71.07(7)(a)2. 2. “State” includes the District of Columbia, but does not include the commonwealth of Puerto Rico or the several territories organized by Congress.

71.07(7)(b) (b)

71.07(7)(b)1. 1. Subject to conditions and limitations in pars. (c) and (d), if a resident individual, estate or trust pays a net income tax to another state, that resident individual, estate or trust may credit the net tax paid to that other state on that income against the net income tax otherwise payable to this state on income of the same year. The credit may not be allowed unless the income taxed by the other state is also considered income for Wisconsin tax purposes. The credit may not be allowed unless claimed within the time provided in s. 71.75 (2), but s. 71.75 (4) does not apply to those credits. For purposes of this subdivision, amounts declared and paid under the income tax law of another state are considered a net income tax paid to that other state only in the year in which the income tax return for that state was required to be filed.

71.07(7)(b)2. 2. Income and franchise taxes paid to another state by a tax-option corporation, partnership, or limited liability company that is treated as a partnership may be claimed as a credit under this paragraph by that corporation’s shareholders, that partnership’s partners, or that limited liability company’s members who are residents of this state and who otherwise qualify under this paragraph, unless the tax-option corporation, partnership, or limited liability company has made an election under s. 71.21 (6) (a) or 71.365 (4m) (a).

71.07(7)(b)3. 3. Subject to the conditions and limitations in pars. (c) and (d), if a tax-option corporation, partnership, or limited liability company makes an election under s. 71.21 (6) (a) or 71.365 (4m) (a), that tax-option corporation, partnership, or limited liability company may credit the net income or franchise tax paid by the entity to another state on that income and the net income tax on that income paid by the entity on behalf of its shareholders, partners, and members that are residents of this state on a composite return filed with the other state against the net income or franchise tax otherwise payable to this state on income of the same year. The credit may not be allowed unless the income taxed by the other state is also considered income for Wisconsin tax purposes and is otherwise attributable to amounts that would be reportable to this state by shareholders, partners, or members of the tax-option corporation, partnership, or limited liability company that are residents of this state if the election under s. 71.21 (6) (a) or 71.365 (4m) (a) was not made. The credit may not be allowed unless claimed within the time provided in s. 71.75 (2), but s. 71.75 (4) does not apply to those credits. For purposes of this subdivision, amounts declared and paid under the income tax law of another state are considered a net income tax paid to that other state only in the year in which the income tax return for that state was required to be filed.

71.07(7)(c) (c) The total credits under par. (b) 1. and 2. may not exceed an amount determined by multiplying the taxpayer’s net Wisconsin income tax by a ratio derived by dividing the income subject to tax in the other state that is also subject to tax in Wisconsin while the taxpayer is a resident of Wisconsin, by the taxpayer’s Wisconsin adjusted gross income. The credit under par. (b) 3. may not exceed an amount determined by multiplying the income subject to tax in the other state that is also subject to tax in Wisconsin by 7.9 percent.

71.07(7)(d) (d) The limitation in par. (c) does not apply to income that is taxed by one of the 4 states that border this state.

71.07 Cross-reference Cross-reference: See also s. Tax 2.955, Wis. adm. code.

71.07(8b) (8b) Low-income housing credit.

71.07(8b)(a) (a) Definitions. In this subsection:

71.07(8b)(a)1. 1. “Allocation certificate” means a statement issued by the authority certifying that a qualified development is eligible for a credit under this subsection and specifying the amount of the credit that the owners of the qualified development may claim.

71.07(8b)(a)2. 2. “Authority” means the Wisconsin Housing and Economic Development Authority.

71.07(8b)(a)3. 3. “Claimant” means a person who has an ownership interest in a qualified development and who files a claim under this subsection.

71.07(8b)(a)4. 4. “Compliance period” means the 15-year period beginning with the first taxable year of the credit period.

71.07(8b)(a)5. 5. “Credit period” means the period of 6 taxable years beginning with the taxable year in which a qualified development is placed in service. For purposes of this subdivision, if a qualified development consists of more than one building, the qualified development is placed in service in the taxable year in which the last building of the qualified development is placed in service.

71.07(8b)(a)6. 6. “Qualified basis” means the qualified basis determined under section 42 (c) (1) of the Internal Revenue Code.

71.07(8b)(a)7. 7. “Qualified development” means a qualified low-income housing project under section 42 (g) of the Internal Revenue Code that is located in this state.

71.07(8b)(b) (b) Filing claims. Subject to the limitations provided in this subsection and in s. 234.45, for taxable years beginning after December 31, 2017, a claimant may claim as a credit against the taxes imposed under s. 71.02, up to the amount of the tax, the amount allocated to the claimant by the authority under s. 234.45 for each taxable year within the credit period.

71.07(8b)(c) (c) Limitations.

71.07(8b)(c)1. 1. No person may claim the credit under par. (b) unless the claimant includes with the claimant’s return a copy of the allocation certificate issued to the qualified development.

71.07(8b)(c)2. 2. A partnership, limited liability company, or tax-option corporation may not claim the credit under this subsection. The partners of a partnership, members of 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, limited liability company, or tax-option corporation. The partnership, limited liability company, or tax-option corporation shall calculate the amount of the credit that may be claimed by each partner, member, or shareholder and shall provide that information to the partner, member, or shareholder. For shareholders of a tax-option corporation, the credit may be allocated in proportion to the ownership interest of each shareholder. Credits computed by a partnership or limited liability company may be claimed in proportion to the ownership interests of the partners or members or allocated to partners or members as provided in a written agreement among the partners or members that is entered into no later than the last day of the taxable year of the partnership or limited liability company, for which the credit is claimed. Any partner or member who claims the credit as allocated by a written agreement shall provide a copy of the agreement with the tax return on which the credit is claimed. Except as provided in s. 71.745, a person claiming the credit as provided under this subdivision is solely responsible for any tax liability arising from a dispute with the department of revenue related to claiming the credit.

71.07(8b)(d) (d) Recapture.

71.07(8b)(d)1. 1. As of the last day of any taxable year during the compliance period, if the amount of the qualified basis of a qualified development with respect to a claimant is less than the amount of the qualified basis as of the last day of the immediately preceding taxable year, the amount of the claimant’s tax liability under this subchapter shall be increased by the recapture amount determined by using the method under section 42 (j) of the Internal Revenue Code.

71.07(8b)(d)2. 2. In the event that the recapture of any credit is required in any taxable year, the taxpayer shall include the recaptured proportion of the credit on the return submitted for the taxable year in which the recapture event is identified.

71.07(8b)(e) (e) Administration. Section 71.28 (5b) (e) to (h), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.

71.07(8n) (8n) Stillbirth tax credit.

71.07(8n)(a) (a) Definitions. In this subsection:

71.07(8n)(a)1. 1. “Claimant” means the parent of a stillbirth who files a claim under this subsection.

71.07(8n)(a)2. 2. “Stillbirth” means a birth that occurs in this state that results in a stillbirth for which a fetal death report is required under s. 69.18 (1) (e) 1.

71.07(8n)(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 the tax, $2,000 for the taxable year in which the stillbirth occurs.

71.07(8n)(c) (c) Limitations and conditions.

71.07(8n)(c)1. 1. No credit may be claimed under this subsection by a part-year resident or a nonresident of this state.

71.07(8n)(c)2. 2. No credit may be allowed under this subsection for a taxable year covering a period of less than 12 months, except for a taxable year closed by reason of the death of the taxpayer.

71.07(8n)(c)3. 3. No credit may be allowed under this subsection unless it is claimed within the period specified in s. 71.75 (2).

71.07(8n)(c)4. 4. If a married couple files a joint return, the maximum amount that may be claimed by the couple under this subsection is $2,000 for each stillbirth.

71.07(8n)(c)5. 5. If a married couple files separate returns, the maximum amount that may be claimed by each spouse under this subsection is $1,000 for each stillbirth.

71.07(8n)(c)6. 6. If the parents of a stillbirth are unmarried, the maximum amount that may be claimed by each parent under this subsection is $1,000 for each stillbirth.

71.07(8n)(c)7. 7. To claim the credit under this subsection, a claimant shall submit, with his or her return for the taxable year to which the claim relates, a copy of the fetal death report relating to the stillbirth for which the credit is claimed.

71.07(8n)(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(8s) (8s) Additional employer-provided child care credit.

71.07(8s)(a) (a) Definitions. In this subsection:

71.07(8s)(a)1. 1. “Claimant” means a person who is eligible for and claims the federal employer-provided child care credit for the taxable year to which the claim under this subsection relates.

71.07(8s)(a)2. 2. “Federal employer-provided child care credit” means the tax credit under section 45F of the Internal Revenue Code in effect for federal purposes on April 5, 2026.

71.07(8s)(b) (b) Filing claims. For taxable years beginning after December 31, 2025, 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 the amount of the federal employer-provided child care credit claimed by the claimant on his or her federal income tax return for the taxable year to which the claim under this subsection relates.

71.07(8s)(c) (c) Limitations.

71.07(8s)(c)1. 1. The credit under this subsection may not be claimed for any amount of the federal employer-provided child care credit claimed for any expenditure paid or incurred for a child care facility located outside this state or for services provided outside this state.

71.07(8s)(c)2. 2. A claimant who claims a credit under this subsection and whose federal income tax is increased under section 45F (d) of the Internal Revenue Code shall add to the claimant’s liability for taxes imposed under s. 71.02 an amount equal to the amount that the claimant’s federal income tax is increased under section 45F (d) of the Internal Revenue Code.

71.07(8s)(c)3. 3. 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 the amounts of the federal employer-provided child care credit claimed 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(8s)(d) (d) Administration. Section 71.28 (4) (e) to (h) [Section 71.28 (5b) (e) to (h)], as it applies to the credit under s. 71.28 (4) [s. 71.28 (5b)], applies to the credit under this subsection.

71.07 Note NOTE: The correct cross-references are shown in brackets. Cross-references to the 15-year carryover provisions were changed to s. 71.28 (5b) by 2025 Wis. Act 220. Corrective legislation is pending.

71.07(8t) (8t) Rail infrastructure modernization credit.

71.07(8t)(a) (a) Definitions. In this subsection:

71.07(8t)(a)1. 1. “Claimant” means a person certified to receive tax benefits under s. 238.309 (2) (a).

71.07(8t)(a)2. 2. “Qualified new rail infrastructure expenditures” means capital expenditures for rail infrastructure and improvements in this state placed in service after December 31, 2025, including expenditures for the acquisition of right-of-way; engineering; construction of new track such as industrial leads, switches, spurs, and sidings; rehabilitation of existing inactive track to reinstate operation; loading dock improvements; and transloading structures involved with servicing customer locations or expansions.

71.07(8t)(b) (b) Filing claims. For taxable years beginning after December 31, 2025, and before January 1, 2031, 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 qualified new rail infrastructure expenditures made by the claimant during the taxable year to which the claim relates.

71.07(8t)(c) (c) Limitations.

71.07(8t)(c)1. 1. No claimant may use an expenditure to claim both a credit under this subsection and a credit under sub. (8v).

71.07(8t)(c)2. 2. The total amount of the credits under this subsection and ss. 71.28 (8t) and 71.47 (8t) for a claimant for a taxable year may not exceed $2,000,000 per credit application approved and verified under s. 238.309.

71.07(8t)(c)3. 3. No credit may be allowed under this subsection unless the claimant includes with the claimant’s return a copy of the claimant’s verification under s. 238.309.

71.07(8t)(c)4. 4. Partnerships, tax-option corporations, and limited liability companies may not claim a credit under this subsection, but the eligibility for, and the amount of, the credit are based on their expenditures made under par. (b). A partnership, tax-option corporation, or limited liability company shall compute the amount of the credit that each of its partners, shareholders, or members may claim and shall provide that information to each of them. Partners of a partnership, shareholders of tax-option corporations, and members of limited liability companies may claim the credit in proportion to their ownership interest.

71.07(8t)(d) (d) Administration.

71.07(8t)(d)1. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection, including credits transferred under par. (e).

71.07(8t)(d)2. 2. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 5 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expenditure was made and the year in which the carry-forward credit is claimed.

71.07(8t)(e) (e) Transfer.

71.07(8t)(e)1. 1. Any person may sell or otherwise transfer a credit claimed under par. (b), in whole or in part, to another person who is subject to the taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and submits with the notification a copy of the transfer documents, and the department approves the transfer. The transferor may file a claim for a credit under par. (b) on a form prescribed by the department at the time of the transfer request. Subject to subd. 2. b., the transferee may first use the credit to offset tax in the taxable year of the transferor in which the transfer occurs, and may use the credit only to offset tax in taxable years otherwise allowed to be claimed and carried forward by the original claimant.

71.07(8t)(e)2. 2.

71.07(8t)(e)2.a. a. If a person’s certification under s. 238.309 (2) (a) is revoked by the Wisconsin Economic Development Corporation and the person used the certification to claim a credit under this subsection and transferred the credit under subd. 1., the person shall add to the person’s liability for taxes imposed under s. 71.02 the total amount of the credits that were credited against Wisconsin income or franchise taxes by the person or by any person to whom the credits were transferred.

71.07(8t)(e)2.b. b. If a person’s certification under s. 238.309 (2) (a) is revoked by the Wisconsin Economic Development Corporation and the person used the certification to claim a credit under this subsection and transferred the credit under subd. 1., the transferee may not use the credit to offset Wisconsin income or franchise taxes.

71.07(8v) (8v) Rail infrastructure maintenance credit.

71.07(8v)(a) (a) Definitions. In this subsection:

71.07(8v)(a)1. 1. “Claimant” means a person certified to receive tax benefits under s. 238.309 (2) (b).

71.07(8v)(a)2. 2. “Qualified short line railroad maintenance expenditures” means all of the following:

71.07(8v)(a)2.a. a. Gross expenditures for railroad infrastructure rehabilitation or maintenance improvements located in this state, including rail, tie plates, joint bars, fasteners, switches, ballast, subgrade, roadbed, industrial leads, sidings, signs, safety barriers, crossing signals and gates, and related track structures.