Amendment SA5-AB56

AB56-SA5,5,6 1. “Claimant" means an individual who is eligible to claim the credit under this subsection.

AB56-SA5,5,8 2. “Household" means a claimant and an individual related to the claimant as husband or wife.

AB56-SA5,5,10 3. “Net tax liability" means a claimant's income tax liability after he or she completes the computations for nonrefundable credits listed in s. 71.10 (4) (a) to (gy).

AB56-SA5,5,14 (b) Filing claims. For taxable years beginning after December 31, 2018, 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, one of the following amounts:

AB56-SA5,5,17 1. If the claimant is single or files as a head of household and his or her adjusted gross income is less than $80,000 in the year to which the claim relates, the greater of $100 or an amount equal to 10 percent of his or her net tax liability.

AB56-SA5,5,20 2. If the claimant is single or files as a head of household and his or her adjusted gross income is at least $80,000 but less than $100,000 in the year to which the claim relates, an amount that is calculated as follows:

AB56-SA5,5,23 a. Calculate the value of a fraction, the denominator of which is $20,000 and the numerator of which is the difference between the claimant's adjusted gross income and $80,000.

AB56-SA5,5,24 b. Subtract from 1.0 the amount that is calculated under subd. 2. a.

AB56-SA5,6,1 c. Multiply the amount that is calculated under subd. 2. b. by 10 percent.

AB56-SA5,6,3 d. Multiply the amount of the claimant's net income tax liability by the amount that is calculated under subd. 2. c.

AB56-SA5,6,7 3. If the claimant is married and filing jointly and the sum of the claimant's adjusted gross income and his or her spouse's adjusted gross income is less than $125,000 in the year to which the claim relates, the greater of $50 or an amount equal to 10 percent of the married couple's net tax liability.

AB56-SA5,6,11 4. If the claimant is married and filing jointly and the sum of the claimant's adjusted gross income and his or her spouse's adjusted gross income is at least $125,000 but less than $150,000 in the year to which the claim relates, an amount that is calculated as follows:

AB56-SA5,6,14 a. Calculate the value of a fraction, the denominator of which is $25,000 and the numerator of which is the difference between the married couple's adjusted gross income and $125,000.

AB56-SA5,6,15 b. Subtract from 1.0 the amount that is calculated under subd. 4. a.

AB56-SA5,6,16 c. Multiply the amount that is calculated under subd. 4. b. by 10 percent.

AB56-SA5,6,18 d. Multiply the amount of the married couple's net income tax liability by the amount that is calculated under subd. 4. c.

AB56-SA5,6,21 5. If the claimant is married and filing separately and his or her adjusted gross income is less than $62,500 in the year to which the claim relates, the greater of $25 or an amount equal to 10 percent of his or her net tax liability.

AB56-SA5,6,24 6. If the claimant is married and filing separately and his or her adjusted gross income is at least $62,500 but less than $75,000 in the year to which the claim relates, an amount that is calculated as follows:

AB56-SA5,7,3 a. Calculate the value of a fraction, the denominator of which is $12,500 and the numerator of which is the difference between the claimant's adjusted gross income and $75,000.

AB56-SA5,7,4 b. Subtract from 1.0 the amount that is calculated under subd. 6. a.

AB56-SA5,7,5 c. Multiply the amount that is calculated under subd. 6. b. by 10 percent.

AB56-SA5,7,7 d. Multiply the amount of the claimant's net income tax liability by the amount that is calculated under subd. 6. c.

AB56-SA5,7,9 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the period under s. 71.75 (2).

AB56-SA5,7,11 2. Part-year residents and nonresidents of this state are not eligible for the credit under this subsection.

AB56-SA5,7,13 3. Except as provided in subd. 4., only one credit per household is allowed each year.

AB56-SA5,7,17 4. If a married couple files separately, each spouse may claim the credit calculated under par. (b) 5. or 6., except a married person living apart from the other spouse and treated as single under section 7703 (b) of the Internal Revenue Code may claim the credit under par. (b) 1. or 2.

AB56-SA5,7,19 5. The credit under this subsection may not be claimed by a person who may be claimed as a dependent on the individual income tax return of another taxpayer.

AB56-SA5,7,24 (d) Administration. 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.

AB56-SA5,884m Section 884m. 71.07 (8m) of the statutes is created to read:

AB56-SA5,8,2 71.07 (8m) Additional household and dependent care expenses tax credit. (a) Definitions. In this subsection:

AB56-SA5,8,5 1. “Claimant" means an individual who is eligible for and claims the household and dependent care expenses tax credit for the taxable year to which the claim under this subsection relates.

AB56-SA5,8,7 2. “Household and dependent care expenses tax credit" means the tax credit under section 21 of the Internal Revenue Code.

AB56-SA5,8,13 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, an amount equal to 50 percent of the amount of the household and dependent care expenses tax credit that the claimant claimed on his or her federal income tax return for the taxable year to which the claim under this subsection relates.

AB56-SA5,8,15 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

AB56-SA5,8,18 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.

AB56-SA5,8,20 3. The credit under this subsection may not be claimed by either a part-year resident or a nonresident of this state.

AB56-SA5,8,22 4. The credit under this subsection may be claimed for taxable years beginning after December 31, 2019.

AB56-SA5,8,24 5. A claimant who claims the credit under this subsection is subject to the special rules in 26 USC 21 (e) (2) and (4).

AB56-SA5,9,2 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

AB56-SA5,886g Section 886g. 71.10 (4) (cs) of the statutes is created to read:

AB56-SA5,9,5 71.10 (4) (cs) Additional household and dependent care expenses tax credit under s. 71.07 (8m).

AB56-SA5,886m Section 886m. 71.10 (4) (gye) of the statutes is created to read:

AB56-SA5,9,8 71.10 (4) (gye) Family and individual reinvestment credit under s. 71.07 (5me).”.

AB56-SA5,9,9 5. Page 506, line 8: after that line insert:

AB56-SA5,9,11 “(1p) Real property tax assessments. The treatment of ss. 70.03 (1) and 70.32 (1), (1b), and (1d) first applies to the property tax assessments as of January 1, 2020.”.

AB56-SA5,9,12 (End)