Chapter 71

71.28(8s) (8s) Additional employer-provided child care credit.

71.28(8s)(a) (a) Definitions. In this subsection:

71.28(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.

71.28(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.

71.28(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. 71.23, 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.

71.28(8s)(c) (c) Limitations.

71.28(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.

71.28(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. 71.23 an amount equal to the amount that the claimant’s federal income tax is increased under section 45F (d) of the Internal Revenue Code.

71.28(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.

71.28(8s)(d) (d) Administration. Subsection (4) (e) to (h) [Subsection (5b) (e) to (h)], as it applies to the credit under sub. (4) [sub. (5b)], applies to the credit under this subsection.

71.28 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.

71.28(8t) (8t) Rail infrastructure modernization credit.

71.28(8t)(a) (a) Definitions. In this subsection:

71.28(8t)(a)1. 1. “Claimant” means a person certified to receive tax benefits under s. 238.309 (2) (a).

71.28(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.

71.28(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. 71.23, 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.

71.28(8t)(c) (c) Limitations.

71.28(8t)(c)1. 1. No claimant may use an expenditure to claim both a credit under this subsection and a credit under sub. (8v).

71.28(8t)(c)2. 2. The total amount of the credits under this subsection and ss. 71.07 (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.

71.28(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.

71.28(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.

71.28(8t)(d) (d) Administration.

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

71.28(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.

71.28(8t)(e) (e) Transfer.

71.28(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.

71.28(8t)(e)2. 2.

71.28(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. 71.23 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.

71.28(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.

71.28(8v) (8v) Rail infrastructure maintenance credit.

71.28(8v)(a) (a) Definitions. In this subsection:

71.28(8v)(a)1. 1. “Claimant” means a person certified to receive tax benefits under s. 238.309 (2) (b).

71.28(8v)(a)2. 2. “Qualified short line railroad maintenance expenditures” means all of the following:

71.28(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.

71.28(8v)(a)2.b. b. Gross expenditures for 3rd-party labor related to expenditures described in subd. 2. a.

71.28(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.

71.28(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. 71.23, 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.

71.28(8v)(c) (c) Limitations.

71.28(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.

71.28(8v)(c)2. 2. No claimant may use an expenditure to claim both a credit under this subsection and a credit under sub. (8t).

71.28(8v)(c)3. 3. The total amount of the credits under this subsection and ss. 71.07 (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.

71.28(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.

71.28(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.

71.28(8v)(d) (d) Administration.

71.28(8v)(d)1. 1. Subsection (4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection, including credits transferred under par. (e).

71.28(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.

71.28(8v)(e) (e) Transfer.

71.28(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.

71.28(8v)(e)2. 2.

71.28(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. 71.23 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.

71.28(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.

71.28(10) (10) Employee college savings account contribution credit.

71.28(10)(a) (a) Definitions. In this subsection:

71.28(10)(a)1. 1. “Claimant” means a person who files a claim under this subsection.

71.28(10)(a)1m. 1m. “College savings account” means a college savings account, as described in s. 224.50.

71.28(10)(a)2. 2. “Employee” has the meaning given in s. 71.63 (2).

71.28(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. 71.23, up to the amount of those taxes, for each employee of the claimant, an amount equal to the amount the claimant paid into a college savings account owned by the employee in the taxable year in which the contribution is made.

71.28(10)(c) (c) Limitations.

71.28(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.

71.28(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 claimant 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.

71.28(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.

71.28(10)(d) (d) Administration. Subsection (5b) (e) to (h), as it applies to the credit under sub. (5b), applies to the credit under this subsection.

71.28(12) (12) Long-term care insurance assessment credit.

71.28(12)(a) (a) Definitions. In this subsection:

71.28(12)(a)1. 1. “Claimant” means a person who files a claim under this subsection.

71.28(12)(a)2. 2. “Disability insurer” means an insurer classified as a disability insurer under s. 646.51 (3) (bm) 2.

71.28(12)(b) (b) Filing claims. Subject to the limitations provided under this subsection, for taxable years beginning after December 31, 2026, a claimant may claim as a credit against the taxes imposed under s. 71.23, for the taxable year following the taxable year that a claimant pays an assessment under s. 646.51 (3) (bm), and for the immediately following 4 taxable years, an amount equal to 20 percent of the assessment under s. 646.51 (3) (bm) paid by the claimant.

71.28(12)(c) (c) Limitations.

71.28(12)(c)1. 1. A partnership, limited liability company, or tax-option corporation, including a partnership, limited liability company, or tax-option corporation that makes an election under s. 71.21 (6) (a) or 71.365 (4m) (a) to be taxed at the entity level, may claim the credit under par. (b).

71.28(12)(c)2. 2. A partnership’s partners, limited liability company’s members, and tax-option corporation’s shareholders may not claim the credit under par. (b).

71.28(12)(d) (d) Administration.

71.28(12)(d)1. 1. Subsection (4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

71.28(12)(d)2. 2. If the claimant is a disability insurer and if the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.23 or 71.365 (4m) (a), the amount of the claim not used to offset the tax due 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 drawn from the appropriation account under s. 20.835 (2) (de). Notwithstanding s. 71.82 (1) (b), no interest shall be added to amounts certified under this subdivision.

71.28 History History: 1987 a. 312; 1987 a. 411 ss. 88, 130 to 139; 1987 a. 422; 1989 a. 31, 44, 56, 100, 336, 359; 1991 a. 39, 292; 1993 a. 16, 112, 232, 491; 1995 a. 2; 1995 a. 27 ss. 3399r to 3404c, 9116 (5); 1995 a. 209, 227; 1997 a. 27, 41, 237, 299; 1999 a. 5, 9; 2001 a. 16; 2003 a. 72, 99, 135, 255, 267, 326; 2005 a. 25, 74, 97, 361, 387, 452, 479, 483, 487; 2007 a. 20, 96, 97, 100; 2009 a. 2, 11, 28, 180, 185, 265, 267, 269, 276, 294, 295, 332, 401; 2011 a. 3, 15, 32, 67, 212, 213, 232, 237; 2011 a. 260 s. 80; 2013 a. 20, 54, 62, 116, 145, 165; 2013 a. 166 ss. 26, 77; 2015 a. 55, 186, 237; 2017 a. 58, 59, 176, 197; 2017 a. 364 ss. 16 to 18, 48; 2017 a. 365 s. 111; 2017 a. 366; 2019 a. 54, 167; 2021 a. 1, 58, 127; 2021 a. 238 s. 44; 2023 a. 12, 19, 138, 143, 148; 2025 a. 15, 78, 118, 174, 183, 220, 227, 236, 238, 242; s. 13.92 (2) (i); s. 35.17 correction in (5b) (g), (8s) (c) 2.

71.29 71.29 Payments of estimated taxes.

71.29(1) (1) Definitions. In this section:

71.29(1)(a) (a) “Return” means a return that would show the tax properly due.

71.29(1)(b) (b) “Tax shown on the return” and “tax for the taxable year” mean the net taxes imposed under s. 71.23 (1) or (2) after reduction for credits against those taxes but before reduction for amounts paid as estimated tax under this section plus the surcharge imposed under s. 77.93 before reduction for amounts paid as estimated tax under this section for that surcharge.

71.29(1)(c) (c) “Virtually exempt entity” means any entity, other than a corporation, that is subject to a tax under this chapter on unrelated business taxable income as defined under section 512 of the internal revenue code.

71.29(2) (2) Who shall pay. Every corporation subject to tax under s. 71.23 (1) or (2) and every virtually exempt entity subject to tax under s. 71.125 or 71.23 (1) or (2) shall pay an estimated tax.

71.29(3) (3) Refund carry-forward. If a corporation or virtually exempt entity claims a refund on any tax return and, concurrent with or subsequent to filing the return upon which that refund is claimed, is required to pay an estimated tax, and at the time of paying that tax the refund has not been paid, the corporation or virtually exempt entity may deduct the amount of that refund from the first installment of estimated taxes and may deduct any excess from the succeeding installments.

71.29(3m) (3m) Refunds. The department of revenue may refund estimated taxes after the completion of the taxable year to which the estimated taxes relate if the refund is at least 10 percent of the taxes estimated for that taxable year and is at least $500. A refund under this subsection may be subject to s. 71.84 (2) (c).

71.29(4) (4) Prepayments. Any installment of the estimated tax under this section may be paid before the due date.

71.29(5) (5) Short year. Application of this section to taxable years of less than 12 full months shall be made under the department of revenue’s rules.

71.29 Cross-reference Cross-reference: See also s. Tax 2.89, Wis. adm. code.

71.29(6) (6) Overpayments. If the amount of an installment payment of estimated tax exceeds the amount determined to be the correct amount of that payment, the overpayment shall be credited against the next unpaid installment.

71.29(7) (7) Exception to interest. No interest is required under s. 71.84 (2) (a) or (b) for a corporation or virtually exempt entity if any of the following conditions apply:

71.29(7)(a) (a) The tax shown on the return or, if no return is filed, the tax is less than $500.

71.29(7)(b) (b) The preceding taxable year was 12 months, the corporation or virtually exempt entity had no liability under s. 71.125 or 71.23 (1) or (2) for that year and, except for a corporation making an election under s. 71.365 (4m) (a), the corporation or virtually exempt entity has a Wisconsin net income of less than $250,000 for the current taxable year.