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AB64,1092 22Section 1092. 71.34 (1g) (j) 1. of the statutes is amended to read:
AB64,548,223 71.34 (1g) (j) 1. For taxable years beginning after December 31, 2013, and
24before January 1, 2017,
for tax option corporations, “Internal Revenue Code" means

1the federal Internal Revenue Code as amended to December 31, 2013, except as
2provided in subds. 2., 3., and 5. and subject to subd. 4.
AB64,1093 3Section 1093. 71.34 (1g) (j) 3. i. of the statutes is created to read:
AB64,548,44 71.34 (1g) (j) 3. i. Section 2004 of P.L. 114-41.
AB64,1094 5Section 1094. 71.34 (1g) (j) 3. j. of the statutes is created to read:
AB64,548,66 71.34 (1g) (j) 3. j. Sections 503 and 504 of P.L. 114-74.
AB64,1095 7Section 1095. 71.34 (1g) (j) 3. k. of the statutes is created to read:
AB64,548,98 71.34 (1g) (j) 3. k. Sections 103, 104, 124, 168, 184, 185, 190, 204, 303, 306, 336,
9and 341 of division Q of P.L. 114-113.
AB64,1096 10Section 1096. 71.34 (1g) (j) 3. L. of the statutes is created to read:
AB64,548,1111 71.34 (1g) (j) 3. L. P.L. 114-239.
AB64,1097 12Section 1097. 71.34 (1g) (k) of the statutes is created to read:
AB64,548,1613 71.34 (1g) (k) 1. For taxable years beginning after December 31, 2016, for tax
14option corporations, “Internal Revenue Code" means the federal Internal Revenue
15Code as amended to December 31, 2016, except as provided in subds. 2., 3., and 5. and
16subject to subd. 4.
AB64,549,617 2. For purposes of this paragraph, “Internal Revenue Code" does not include
18the following provisions of federal public laws for taxable years beginning after
19December 31, 2016: section 13113 of P.L 103-66; sections 1, 3, 4, and 5 of P.L.
20106-519; sections 101, 102, and 422 of P.L 108-357; sections 1310 and 1351 of P.L.
21109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of
22P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L.
23110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section
2415351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections
25312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251,

11501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L.
2111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L.
3111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and
4411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division
5P of P.L. 114-113; and sections 112, 123, 125 to 128, 143, 144, 151 to 153, 165 to 167,
6169 to 171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113.
AB64,549,87 3. For purposes of this paragraph, “Internal Revenue Code" does not include
8amendments to the federal Internal Revenue Code enacted after December 31, 2016.
AB64,549,159 4. For purposes of this paragraph, the provisions of federal public laws that
10directly or indirectly affect the Internal Revenue Code, as defined in this paragraph,
11apply for Wisconsin purposes at the same time as for federal purposes, except that
12changes made by section 4007 (b) of P.L. 114-41, section 1102 of P.L. 114-74, sections
13105, 111, 113 to 115, 133, 301, 302, 304, 305, 308, 311, 313 to 323, 325, 331, and 343
14to 345 of division Q of P.L. 114-113 first apply for taxable years beginning after
15December 31, 2016.
AB64,549,19165. For purposes of this paragraph, section 1366 (f) of the Internal Revenue Code
17(relating to pass-through of items to shareholders) is modified by substituting the
18tax under s. 71.35 for the taxes under sections 1374 and 1375 of the Internal Revenue
19Code.
AB64,1098 20Section 1098. 71.42 (2) (b) of the statutes is repealed.
AB64,1099 21Section 1099. 71.42 (2) (j) 1. of the statutes is amended to read:
AB64,549,2522 71.42 (2) (j) 1. For taxable years beginning after December 31, 2013, and before
23January 1, 2017,
“Internal Revenue Code" means the federal Internal Revenue Code
24as amended to December 31, 2013, except as provided in subds. 2. to 4. and subject
25to subd. 5.
AB64,1100
1Section 1100. 71.42 (2) (j) 3. i. of the statutes is created to read:
AB64,550,22 71.42 (2) (j) 3. i. Section 2004 of P.L. 114-41.
AB64,1101 3Section 1101. 71.42 (2) (j) 3. j. of the statutes is created to read:
AB64,550,44 71.42 (2) (j) 3. j. Sections 503 and 504 of P.L. 114-74.
AB64,1102 5Section 1102. 71.42 (2) (j) 3. k. of the statutes is created to read:
AB64,550,76 71.42 (2) (j) 3. k. Sections 103, 104, 124, 168, 184, 185, 190, 204, 303, 306, 336,
7and 341 of division Q of P.L. 114-113.
AB64,1103 8Section 1103. 71.42 (2) (j) 3. L. of the statutes is created to read:
AB64,550,99 71.42 (2) (j) 3. L. P.L. 114-239.
AB64,1104 10Section 1104. 71.42 (2) (k) of the statutes is created to read:
AB64,550,1311 71.42 (2) (k) 1. For taxable years beginning after December 31, 2016, “Internal
12Revenue Code" means the federal Internal Revenue Code as amended to December
1331, 2016, except as provided in subds. 2. to 4. and subject to subd. 5.
AB64,551,314 2. For purposes of this paragraph, “Internal Revenue Code" does not include
15the following provisions of federal public laws for taxable years beginning after
16December 31, 2016: section 13113 of P.L 103-66; sections 1, 3, 4, and 5 of P.L.
17106-519; sections 101, 102, and 422 of P.L 108-357; sections 1310 and 1351 of P.L.
18109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of
19P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L.
20110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section
2115351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections
22312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251,
231501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L.
24111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L.
25111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and

1411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division
2P of P.L. 114-113; and sections 112, 123, 125 to 128, 143, 144, 151 to 153, 165 to 167,
3169 to 171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113.
AB64,551,54 3. For purposes of this paragraph, “Internal Revenue Code" does not include
5amendments to the federal Internal Revenue Code enacted after December 31, 2016.
AB64,551,76 4. For purposes of this paragraph, “Internal Revenue Code" does not include
7section 847 of the federal Internal Revenue Code.
AB64,551,148 5. For purposes of this paragraph, the provisions of federal public laws that
9directly or indirectly affect the Internal Revenue Code, as defined in this paragraph,
10apply for Wisconsin purposes at the same time as for federal purposes, except that
11changes made by section 4007 (b) of P.L. 114-41, section 1102 of P.L. 114-74, sections
12105, 111, 113 to 115, 133, 301, 302, 304, 305, 308, 311, 313 to 323, 325, 331, and 343
13to 345 of division Q of P.L. 114-113 first apply for taxable years beginning after
14December 31, 2016.
AB64,1105 15Section 1105. 71.44 (1) (a) of the statutes is amended to read:
AB64,552,916 71.44 (1) (a) Every corporation, except corporations a corporation all of whose
17income is exempt from taxation and except as provided in sub. (1m), shall furnish to
18the department a true and accurate statement, on or before March 15 of each year,
19except that returns for fiscal years ending on some other date than December 31 shall
20be furnished on or before the 15th day of the 3rd month following the close of such
21fiscal year and except that returns for less than a full taxable year shall be furnished
22on or before
the date applicable on which the corporation is required to file for federal
23income taxes tax purposes, not including any extension, under the internal revenue
24code
Internal Revenue Code, in such the manner and form and setting forth such the
25facts as the department deems necessary to enforce this chapter. Every corporation

1that is required to furnish a statement under this paragraph and that has income
2that is not taxable under this subchapter shall include with its the corporation's
3statement a report that identifies each item of its the corporation's nontaxable
4income. The statement shall be subscribed by the president, vice president,
5treasurer, assistant treasurer, chief accounting officer, or any other officer duly
6authorized so to act. In the case of a return made for a corporation by a fiduciary, the
7fiduciary shall subscribe the return. The fact that an individual's name is subscribed
8on the return shall be prima facie evidence that the individual is authorized to
9subscribe the return on behalf of the corporation.
AB64,1106 10Section 1106. 71.44 (1m) of the statutes is amended to read:
AB64,552,1711 71.44 (1m) Unrelated business income. Every corporation subject to a tax on
12unrelated business income under s. 71.26 (1) (a), if that corporation is required to file
13for federal income tax purposes, shall furnish to the department of revenue a true
14and accurate statement on or before the date on or before which it the corporation
15is required to file for federal income tax purposes, not including any extension, under
16the Internal Revenue Code
. The requirements about manner, form , and subscription
17under sub. (1) apply to statements under this subsection.
AB64,1107 18Section 1107. 71.44 (4) (b) of the statutes is amended to read:
AB64,552,2119 71.44 (4) (b) Corporation franchise and income taxes not paid on or before the
2015th day of the 3rd month following the close of the taxable year deadline for filing
21returns described in sub. (1) or (1m)
shall be deemed delinquent.
AB64,1108 22Section 1108. 71.45 (4) (a) of the statutes is amended to read:
AB64,553,823 71.45 (4) (a) Except as provided in par. (b) and s. 71.80 (25), insurers computing
24tax under this subchapter may subtract from Wisconsin net income any Wisconsin
25net business loss sustained incurred in any of the next 20 immediately preceding

1taxable years, if the insurer was subject to taxation under this chapter in the taxable
2year in which the loss was incurred,
to the extent not offset by Wisconsin net business
3income of any year between the loss year and the taxable year for which an offset is
4claimed and computed without regard to sub. (2) (a) 8. and 9. and this subsection and
5limited to the amount of net income, but no loss incurred for a taxable year before
6taxable year 1987 by a nonprofit service plan of sickness care under ch. 148, or dental
7care under s. 447.13 may be treated as a net business loss of the successor service
8insurer under ch. 613 operating by virtue of s. 148.03 or 447.13.
AB64,1109 9Section 1109. 71.47 (3q) (d) 2. of the statutes is amended to read:
AB64,553,1810 71.47 (3q) (d) 2. If the allowable amount of the claim under par. (b) exceeds the
11tax otherwise due under s. 71.43, the amount of the claim not used to offset the tax
12due shall be certified by the department of revenue to the department of
13administration for payment by check, share draft, or other draft drawn from the
14appropriation account under s. 20.835 (2) (bb), except that the amounts certified
15under this subdivision for taxable years beginning after December 31, 2009, and
16before January 1, 2012, shall be paid in taxable years beginning after December 31,
172011. Notwithstanding s. 71.82, no interest shall be paid on amounts certified under
18this subdivision.
AB64,1110 19Section 1110. 71.47 (3w) (c) 1. of the statutes is amended to read:
AB64,554,220 71.47 (3w) (c) 1. If the allowable amount of the claim under this subsection
21exceeds the taxes otherwise due on the claimant's income under s. 71.43, the amount
22of the claim that is not used to offset those taxes shall be certified by the department
23of revenue to the department of administration for payment by check, share draft,
24or other draft drawn from the appropriation under s. 20.835 (2) (co).

1Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this
2subdivision.
AB64,1111 3Section 1111. 71.47 (3y) (d) 2. of the statutes is amended to read:
AB64,554,94 71.47 (3y) (d) 2. If the allowable amount of the claim under par. (b) exceeds the
5tax otherwise due under s. 71.43, the amount of the claim not used to offset the tax
6due shall be certified by the department of revenue to the department of
7administration for payment by check, share draft, or other draft drawn from the
8appropriation account under s. 20.835 (2) (bg). Notwithstanding s. 71.82, no interest
9shall be paid on amounts certified under this subdivision.
AB64,1112 10Section 1112. 71.47 (5r) (a) 2. of the statutes is amended to read:
AB64,554,1211 71.47 (5r) (a) 2. “Course of instruction" has the meaning given in s. 38.50 440.52
12(1) (c).
AB64,1113 13Section 1113. 71.47 (5r) (a) 6. b. of the statutes is amended to read:
AB64,554,1514 71.47 (5r) (a) 6. b. A school approved under s. 38.50 440.52, if the delivery of
15education occurs in this state.
AB64,1114 16Section 1114. 71.47 (6) (i) of the statutes is created to read:
AB64,554,2217 71.47 (6) (i) 1. a. Except as provided in subd. 1. b., if the activity for which a
18person claims a credit under this subsection creates fewer full-time jobs than
19projected under s. 238.17 (3) (a), as reported to the department under s. 238.17 (4),
20the person who claimed the credit shall repay to the department any amount of the
21credit claimed, as determined by the department, in proportion to the number of
22full-time jobs created compared to the number of full-time jobs projected.
AB64,554,2423 b. For purposes of subd. 1. a., the person who initially sells or transfer a credit
24under par. (h) is responsible for repaying the credit.
AB64,555,5
12. If a person who claims a credit under this subsection and a credit under
2section 47 of the Internal Revenue Code for the same qualified rehabilitation
3expenditures is required to repay any amount of the credit claimed under section 47
4of the Internal Revenue Code, the person shall repay to the department a
5proportionate amount of the credit claimed under this subsection.
AB64,1115 6Section 1115. 71.52 (1d) of the statutes is created to read:
AB64,555,107 71.52 (1d) “Disabled” means an individual who is unable to engage in any
8substantial gainful employment by reason of a medically determinable physical or
9mental impairment which has lasted or is reasonably expected to last for a
10continuous period of not less than 12 months.
AB64,1116 11Section 1116. 71.52 (1e) of the statutes is created to read:
AB64,555,1412 71.52 (1e) “Disqualified loss" means the sum of the following amounts,
13exclusive of net gains from the sale or exchange of capital or business assets and
14exclusive of net profits:
AB64,555,1515 (a) Net loss from sole proprietorships.
AB64,555,1616 (b) Net capital loss.
AB64,555,1817 (c) Net loss from sales of business property, excluding loss from involuntary
18conversions.
AB64,555,2019 (d) Net loss from rental real estate, royalties, partnerships, tax-option S
20corporations, trusts, estates, and real estate mortgage investment conduits.
AB64,555,2121 (e) Net farm loss.
AB64,1117 22Section 1117. 71.52 (1m) of the statutes is created to read:
AB64,555,2423 71.52 (1m) “Farmer,” “farming,” and “farm premises” have the meanings given
24in s. 102.04 (3).
AB64,1118 25Section 1118. 71.52 (6) of the statutes is amended to read:
AB64,557,14
171.52 (6) “Income" means the sum of Wisconsin adjusted gross income and the
2following amounts, to the extent not included in Wisconsin adjusted gross income:
3maintenance payments (except foster care maintenance and supplementary
4payments excludable under section 131 of the internal revenue code), support money,
5cash public assistance (not including credit granted under this subchapter and
6amounts under s. 46.27), cash benefits paid by counties under s. 59.53 (21), the gross
7amount of any pension or annuity (including railroad retirement benefits, all
8payments received under the federal social security act and veterans disability
9pensions), nontaxable interest received from the federal government or any of its
10instrumentalities, nontaxable interest received on state or municipal bonds,
11worker's compensation, unemployment insurance, the gross amount of “loss of time"
12insurance, compensation and other cash benefits received from the United States for
13past or present service in the armed forces, scholarship and fellowship gifts or
14income, capital gains, gain on the sale of a personal residence excluded under section
15121 of the internal revenue code, dividends, income of a nonresident or part-year
16resident who is married to a full-year resident, housing allowances provided to
17members of the clergy, the amount by which a resident manager's rent is reduced,
18nontaxable income of an American Indian, nontaxable income from sources outside
19this state and nontaxable deferred compensation. Intangible drilling costs,
20depletion allowances and depreciation, including first-year depreciation allowances
21under section 179 of the internal revenue code, amortization, contributions to
22individual retirement accounts under section 219 of the internal revenue code,
23contributions to Keogh plans, net operating loss carry-backs and carry-forwards
24and, capital loss carry-forwards , and disqualified losses greater than $15,000
25deducted in determining Wisconsin adjusted gross income shall be added to

1“income". “Income" does not include gifts from natural persons, cash reimbursement
2payments made under title XX of the federal social security act, surplus food or other
3relief in kind supplied by a governmental agency, the gain on the sale of a personal
4residence deferred under section 1034 of the internal revenue code or nonrecognized
5gain from involuntary conversions under section 1033 of the internal revenue code.
6Amounts not included in adjusted gross income but added to “income" under this
7subsection in a previous year and repaid may be subtracted from income for the year
8during which they are repaid. Scholarship and fellowship gifts or income that are
9included in Wisconsin adjusted gross income and that were added to household
10income for purposes of determining the credit under this subchapter in a previous
11year may be subtracted from income for the current year in determining the credit
12under this subchapter. A marital property agreement or unilateral statement under
13ch. 766 has no effect in computing “income" for a person whose homestead is not the
14same as the homestead of that person's spouse.
AB64,1119 15Section 1119. 71.54 (1) (g) (intro.) of the statutes is amended to read:
AB64,557,1816 71.54 (1) (g) 2012 and thereafter. (intro.) The Subject to sub. (2m), the amount
17of any claim filed in 2012 and thereafter and based on property taxes accrued or rent
18constituting property taxes accrued during the previous year is limited as follows:
AB64,1120 19Section 1120. 71.54 (1) (g) 4. of the statutes is created to read:
AB64,557,2420 71.54 (1) (g) 4. Except as provided in subd. 5., for claims filed in 2018 and
21thereafter and based on property taxes accrued or rent constituting property taxes
22accrued during the previous year, no credit may be allowed under this paragraph
23unless the claimant or the claimant's spouse is over the age of 61 at the close of the
24year to which the claim relates.
AB64,1121 25Section 1121. 71.54 (1) (g) 5. and 6. of the statutes are created to read:
AB64,558,3
171.54 (1) (g) 5. For claims filed in 2018 and thereafter and based on property
2taxes accrued or rent constituting property taxes accrued during the previous year,
3no credit may be allowed under this paragraph unless the claimant is disabled.
AB64,558,74 6. With regard to a claimant who is disabled, the claimant shall provide with
5his or her return proof that his or her disability is in effect for the taxable year to
6which the claim relates. Proof of disability may be demonstrated by any of the
7following:
AB64,558,98 a. A statement from the Veteran's Administration certifying that the claimant
9is receiving a disability benefit due to 100 percent disability.
AB64,558,1110 b. A document, or copy of a document, from the Social Security Administration
11stating the date the disability began.
AB64,558,1412 c. A statement from a physician, as defined in s. 448.01 (5), stating the
13beginning date of the disability and whether the disability is permanent or
14temporary.
AB64,1122 15Section 1122. 71.54 (1) (h) of the statutes is created to read:
AB64,558,2116 71.54 (1) (h) 2018 and thereafter. For claims filed in 2018 and thereafter and
17based on property taxes accrued or rent constituting property taxes accrued during
18the previous year, with regard to a claimant who is not disabled or who is under the
19age of 62 at the close of the year to which the claim relates, the amount of any claim
20filed in 2018 and thereafter and based on property taxes accrued or rent constituting
21property taxes accrued during the previous year is limited as follows:
AB64,559,222 1. If the household income was $8,060 or less in the year to which the claim
23relates, the claim is limited to 80 percent of the lesser of 20 percent of the claimant's
24earned income in the taxable year to which the claim relates, or the claimant's

1property taxes accrued or rent constituting property taxes accrued or both in that
2year on the claimant's homestead.
AB64,559,83 2. If the household income was more than $8,060 in the year to which the claim
4relates, the claim is limited to 80 percent of the lesser of the amount by which 20
5percent of the claimant's earned income in the taxable year to which the claim
6relates, or the claimant's property taxes accrued or rent constituting property taxes
7accrued or both in that year on the claimant's homestead, exceeds 8.785 percent of
8the household income exceeding $8,060.
AB64,559,109 3. No credit may be allowed if the household income of a claimant exceeds
10$24,680.
AB64,559,1211 4. No credit may be allowed if the claimant under this paragraph had no earned
12income in the taxable year to which the claim relates.
AB64,1123 13Section 1123. 71.54 (2m) of the statutes is amended to read:
AB64,560,614 71.54 (2m) Indexing for inflation; 2010 2018 and thereafter. (a) For calendar
15years beginning after December 31, 2009, and before January 1, 2011 2017, the dollar
16amounts of the threshold income under sub. (1) (f) (g) 1. and 2., and the maximum
17household income under sub. (1) (f) (g) 3. and the maximum property taxes under
18sub. (2) (b) 3.
shall be increased each year by a percentage equal to the percentage
19change between the U.S. consumer price index for all urban consumers, U.S. city
20average, for the 12-month average of the U.S. consumer price index for the month
21of August of the year before the previous year through the month of July of the
22previous year and the U.S. consumer price index for all urban consumers, U.S. city
23average, for the 12-month average of the U.S. consumer price index for August 2007
242015 through July 2008 2016, as determined by the federal department of labor,
25except that the adjustment may occur only if the percentage is a positive number.

1Each amount that is revised under this paragraph shall be rounded to the nearest
2multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount
3is a multiple of $5, such an amount shall be increased to the next higher multiple of
4$10. The department of revenue shall annually adjust the changes in dollar amounts
5required under this paragraph and incorporate the changes into the income tax
6forms and instructions.
AB64,560,127 (b) The department of revenue shall annually adjust the slope under sub. (1)
8(f) (g) 2. such that, as a claimant's income increases from the threshold income as
9calculated under par. (a), to an amount that exceeds the maximum household income
10as calculated under par. (a), the credit that may be claimed is reduced to $0 and the
11department of revenue shall incorporate the changes into the income tax forms and
12instructions.
AB64,1124 13Section 1124. 71.54 (4) of the statutes is amended to read:
AB64,560,1714 71.54 (4) Department will compute credit. The claimant is not required to
15record on the claim the amount claimed. The claim allowable to persons who do not
16record the amount shall be computed by the department, which shall notify the
17claimant by mail of the amount of the allowable claim.
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