71.07(8s)(8s) Additional employer-provided child care credit. 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)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 NoteNOTE: 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)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)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)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)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.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)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. 71.07(8v)(a)2.b.b. Gross expenditures for 3rd-party labor related to expenditures described in subd. 2. a. 71.07(8v)(a)2.c.c. Gross expenditures for wages paid to employees in positions directly related to maintenance activities for expenditures described in subd. 2. a. 71.07(8v)(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 short line railroad maintenance expenditures made by the claimant during the taxable year to which the claim relates. 71.07(8v)(c)1.1. No credit may be claimed under this subsection for any qualified short line railroad maintenance expenditures that are used to claim a tax credit under federal law or that are funded by a federal or state grant. 71.07(8v)(c)2.2. No claimant may use an expenditure to claim both a credit under this subsection and a credit under sub. (8t). 71.07(8v)(c)3.3. The total amount of the credits under this subsection and ss. 71.28 (8v) and 71.47 (8v) for a claimant for a taxable year may not exceed an amount equal to $5,000 multiplied by the number of miles of railroad track owned or leased by the claimant in this state on December 31 of the taxable year to which the claim applies. 71.07(8v)(c)4.4. No credit may be allowed under this subsection unless the claimant submits an application under s. 238.309 and includes with the claimant’s return a copy of the claimant’s verification under s. 238.309. 71.07(8v)(c)5.5. 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(8v)(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(8v)(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(8v)(e)2.a.a. If a person’s certification under s. 238.309 (2) (b) 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(8v)(e)2.b.b. If a person’s certification under s. 238.309 (2) (b) 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(9)(a)1.1. “Claimant” means a natural person who files a claim or on whose behalf a claim is filed under this subsection but does not include an estate, fiduciary or trust. 71.07(9)(a)2.2. “Principal dwelling” means any dwelling, whether owned or rented, and the land surrounding it that is reasonably necessary for use of the dwelling as a primary dwelling of the claimant and may include a part of a multidwelling or multipurpose building and a part of the land upon which it is built that is used as the claimant’s primary dwelling. 71.07(9)(a)3.3. “Property taxes” means real 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)(b) 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)(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 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)(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(9g)(9g) Additional child and dependent care tax credit. 71.07(9g)(a)1.1. “Claimant” means an individual who is eligible for and claims the federal child and dependent care tax credit for the taxable year to which the claim under this subsection relates. 71.07(9g)(a)2.2. “Federal child and dependent care tax credit” means the tax credit under section 21 of the Internal Revenue Code. 71.07(9g)(b)1.1. For taxable years beginning after December 31, 2021, and before January 1, 2024, 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 federal child and dependent care tax 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(9g)(b)2.2. 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 100 percent of the federal child and dependent care tax credit that the claimant may claim on his or her federal income tax return for the taxable year to which the claim under this subsection relates using the expense limitation under par. (c) 5. rather than the expense limitation under 26 USC 21 (c). 71.07(9g)(c)1.1. No credit may be allowed under this subsection unless it is claimed within the period under s. 71.75 (2). 71.07(9g)(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 claimant. 71.07(9g)(c)3.3. The credit under this subsection cannot be claimed by a part-year resident or a nonresident of this state. 71.07(9g)(c)4.4. A claimant who claims the credit under this subsection is subject to the special rules in 26 USC 21 (e) (2) and (4). 71.07(9g)(c)5.5. Notwithstanding 26 USC 21 (c), for taxable years beginning after December 31, 2023, the maximum allowable expenses to determine the amount of the credit under par. (b) 2. is $10,000 for one qualifying individual, as defined in 26 USC 21 (b), and $20,000 for 2 or more qualifying individuals, as defined in 26 USC 21 (b). 71.07(9g)(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(9m)(9m) Supplement to federal historic rehabilitation credit. 71.07(9m)(a)2m.2m. For taxable years beginning after December 31, 2013, and before January 1, 2026, any person may claim as a credit against taxes otherwise due under s. 71.02, 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, and before January 1, 2026.
/statutes/statutes/71
true
statutes
/statutes/statutes/71/i/07/8v
Chs. 70-79, Taxation
statutes/71.07(8v)
statutes/71.07(8v)
section
true
