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LRB-1493/1
MES:wlj
2017 - 2018 LEGISLATURE
March 20, 2017 - Introduced by Representatives Riemer, Anderson, Bowen,
Crowley, Genrich, Goyke, Kolste, Sargent, Young and Zamarripa,
cosponsored by Senator Johnson. Referred to Committee on Ways and Means.
AB172,1,6 1An Act to amend 71.06 (1q) (intro.), 71.06 (2) (i) (intro.), 71.06 (2) (j) (intro.),
271.06 (2e) (a), 71.06 (2e) (b), 71.06 (2m), 71.06 (2s) (d), 71.125 (1), 71.125 (2),
371.17 (6), 71.64 (9) (b) (intro.), 71.67 (5) (a) and 71.67 (5m); and to create 71.06
4(1r), 71.06 (2) (k), 71.06 (2) (L), 71.06 (2e) (bg), 71.07 (6i) and 71.10 (4) (cs) of the
5statutes; relating to: creating a nonrefundable individual income tax credit for
6certain taxpayers and a new top individual income tax bracket.
Analysis by the Legislative Reference Bureau
This bill creates a nonrefundable individual income tax credit for taxpayers
with Wisconsin taxable income (WTI) below certain income thresholds. The credit
phases out for taxpayers with WTI above these thresholds. Income thresholds and
phase-out rates vary by filing status as follows:
1. For an individual who files as a single individual or head of household, the
maximum credit amount is $200 if the claimant's WTI in the year to which the claim
relates is less than $75,000. The maximum credit phases out from $200 to zero as
the claimant's WTI increases from $75,000 to $112,500.
2. For a married couple that files a joint return, the maximum credit amount
is $200 if the sum of the claimant's WTI and his or her spouse's WTI in the year to
which the claim relates is less than $100,000. The maximum credit phases out from
$200 to zero as the couple's household WTI increases from $100,000 to $150,000. For
a married couple that files separately, the maximum credit amount is $100 if the

claimant's WTI in the year to which the claim relates is less than $50,000. The
maximum credit phases out from $100 to zero as the claimant's WTI increases from
$50,000 to $75,000. Generally, both spouses of a married couple may claim the credit
if they file separate returns.
Because the credit is nonrefundable, no refund is paid if the amount of the
credit exceeds the taxpayer's tax liability. Part-year and nonresidents of this state
may not claim the credit.
The bill also creates a fifth individual income tax bracket and a new tax rate
for this bracket. For those who file as a single individual, fiduciary, or head of
household, the new top rate is 8.88 percent on taxable income above $750,000. For
married joint filers, the new 8.88 percent rate applies to taxable income above
$1,000,000, and this new rate applies to married separate filers on taxable income
above $500,000. As is the case under the current law brackets, the new bracket
amounts are indexed for inflation.
The bill first applies to taxable years beginning on January 1, 2017.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB172,1 1Section 1. 71.06 (1q) (intro.) of the statutes is amended to read:
AB172,2,72 71.06 (1q) Fiduciaries, single individuals, and heads of households; after
32012
to 2016. (intro.) The tax to be assessed, levied, and collected upon the taxable
4incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or
5reserve funds, and single individuals and heads of households shall be computed at
6the following rates for taxable years beginning after December 31, 2012, and before
7January 1, 2017
:
AB172,2 8Section 2. 71.06 (1r) of the statutes is created to read:
AB172,2,139 71.06 (1r) Fiduciaries, single individuals, and heads of households; after
102016.
The tax to be assessed, levied, and collected upon the taxable incomes of all
11fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
12single individuals and heads of households shall be computed at the following rates
13for taxable years beginning after December 31, 2016:
AB172,3,1
1(a) On all taxable income from $0 to $11,230, 4.0 percent.
AB172,3,32 (b) On all taxable income exceeding $11,230 but not exceeding $22,470, 5.84
3percent.
AB172,3,54 (c) On all taxable income exceeding $22,470 but not exceeding $247,350, 6.27
5percent.
AB172,3,76 (d) On all taxable income exceeding $247,350 but not exceeding $750,000, 7.65
7percent.
AB172,3,88 (e) On all taxable income exceeding $750,000, 8.88 percent.
AB172,3 9Section 3. 71.06 (2) (i) (intro.) of the statutes is amended to read:
AB172,3,1110 71.06 (2) (i) (intro.) For joint returns, for taxable years beginning after
11December 31, 2012, and before January 1, 2017:
AB172,4 12Section 4. 71.06 (2) (j) (intro.) of the statutes is amended to read:
AB172,3,1413 71.06 (2) (j) (intro.) For married persons filing separately, for taxable years
14beginning after December 31, 2012, and before January 1, 2017:
AB172,5 15Section 5. 71.06 (2) (k) of the statutes is created to read:
AB172,3,1716 71.06 (2) (k) For joint returns, for taxable years beginning after
17December 31, 2016:
AB172,3,1818 1. On all taxable income from $0 to $14,980, 4.0 percent.
AB172,3,2019 2. On all taxable income exceeding $14,980 but not exceeding $29,960, 5.84
20percent.
AB172,3,2221 3. On all taxable income exceeding $29,960 but not exceeding $329,810, 6.27
22percent.
AB172,3,2423 4. On all taxable income exceeding $329,810 but not exceeding $1,000,000,7.65
24percent.
AB172,3,2525 5. On all taxable income exceeding $1,000,000, 8.88 percent.
AB172,6
1Section 6. 71.06 (2) (L) of the statutes is created to read:
AB172,4,32 71.06 (2) (L) For married persons filing separately, for taxable years beginning
3after December 31, 2016:
AB172,4,44 1. On all taxable income from $0 to $7,490, 4.0 percent.
AB172,4,65 2. On all taxable income exceeding $7,490 but not exceeding $14,980, 5.84
6percent.
AB172,4,87 3. On all taxable income exceeding $14,980 but not exceeding $164,900, 6.27
8percent.
AB172,4,109 4. On all taxable income exceeding $164,900 but not exceeding $500,000, 7.65
10percent.
AB172,4,1111 5. On all taxable income exceeding $500,000, 8.88 percent.
AB172,7 12Section 7. 71.06 (2e) (a) of the statutes is amended to read:
AB172,5,813 71.06 (2e) (a) For taxable years beginning after December 31, 1998, and before
14January 1, 2000, the maximum dollar amount in each tax bracket, and the
15corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2)
16(c) and (d), and for taxable years beginning after December 31, 1999, and before
17January 1, 2017,
the maximum dollar amount in each tax bracket, and the
18corresponding minimum dollar amount in the next bracket, under subs. (1n), (1p) (a)
19to (c), (1q) (a) and (b), and (2) (e), (f), (g) 1. to 3., (h) 1. to 3., (i) 1. and 2., and (j) 1. and
202., shall be increased each year by a percentage equal to the percentage change
21between the U.S. consumer price index for all urban consumers, U.S. city average,
22for the month of August of the previous year and the U.S. consumer price index for
23all urban consumers, U.S. city average, for the month of August 1997, as determined
24by the federal department of labor, except that for taxable years beginning after
25December 31, 2000, and before January 1, 2002, the dollar amount in the top bracket

1under subs. (1p) (c) and (d), (2) (g) 3. and 4. and (h) 3. and 4. shall be increased by a
2percentage equal to the percentage change between the U.S. consumer price index
3for all urban consumers, U.S. city average, for the month of August of the previous
4year and the U.S. consumer price index for all urban consumers, U.S. city average,
5for the month of August 1999, as determined by the federal department of labor,
6except that for taxable years beginning after December 31, 2011, the adjustment may
7occur only if the resulting amount is greater than the corresponding amount that was
8calculated for the previous year.
AB172,8 9Section 8. 71.06 (2e) (b) of the statutes is amended to read:
AB172,5,2110 71.06 (2e) (b) For taxable years beginning after December 31, 2009, and before
11January 1, 2017,
the maximum dollar amount in each tax bracket, and the
12corresponding minimum dollar amount in the next bracket, under subs. (1p) (d), (1q)
13(c), and (2) (g) 4., (h) 4., (i) 3., and (j) 3., and the dollar amount in the top bracket under
14subs. (1p) (e), (1q) (d), and (2) (g) 5., (h) 5., (i) 4., and (j) 4., shall be increased each year
15by a percentage equal to the percentage change between the U.S. consumer price
16index for all urban consumers, U.S. city average, for the month of August of the
17previous year and the U.S. consumer price index for all urban consumers, U.S. city
18average, for the month of August 2008, as determined by the federal department of
19labor, except that for taxable years beginning after December 31, 2011, the
20adjustment may occur only if the resulting amount is greater than the corresponding
21amount that was calculated for the previous year.
AB172,9 22Section 9. 71.06 (2e) (bg) of the statutes is created to read:
AB172,6,623 71.06 (2e) (bg) For taxable years beginning after December 31, 2016, the dollar
24amount in each tax bracket under subs. (1r) and (2) (k) and (L) shall be increased each
25year by a percentage equal to the percentage change between the U.S. consumer

1price index for all urban consumers, U.S. city average, for the month of August of the
2previous year and the U.S. consumer price index for all urban consumers, U.S. city
3average, for the month of August 2015, as determined by the federal department of
4labor, except that for taxable years beginning after December 31, 2017, the
5adjustment may occur only if the resulting amount is greater than the corresponding
6amount that was calculated for the previous year.
AB172,10 7Section 10. 71.06 (2m) of the statutes is amended to read:
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