This is the preview version of the Wisconsin State Legislature site.
Please see http://docs.legis.wisconsin.gov for the production version.
SB59,853 9Section 853. 71.05 (6) (b) 9. of the statutes is renumbered 71.05 (6) (b) 9.
10(intro.) and amended to read:
SB59,607,211 71.05 (6) (b) 9. (intro.) On assets held more than one year and on all assets
12acquired from a decedent, 30 percent of the capital gain as computed under the
13internal revenue code Internal Revenue Code, not including capital gains for which
14the federal tax treatment is determined under section 406 of P.L. 99-514; not
15including amounts treated as ordinary income for federal income tax purposes
16because of the recapture of depreciation or any other reason; and not including
17amounts treated as capital gain for federal income tax purposes from the sale or
18exchange of a lottery prize. For purposes of this subdivision, the capital gains and
19capital losses for all assets shall be netted before application of the percentage. For
20taxable years beginning after December 31, 2018, this subdivision does not apply to
21any of the following individuals whose federal adjusted gross income in the year to
22which the subtraction relates exceeds the following threshold amounts, except that
23for a taxpayer whose federal adjusted gross income, less 30 percent of eligible
24long-term capital gains from nonfarm assets, is below the specified threshold
25amount, the taxpayer may claim the subtraction under this subdivision reduced by

1the amount of the taxpayer's federal adjusted gross income that exceeds the
2threshold amount:
SB59,854 3Section 854. 71.05 (6) (b) 9. a. of the statutes is created to read:
SB59,607,54 71.05 (6) (b) 9. a. For an estate, a trust, a single individual, or an individual who
5files as a head of household, $100,000.
SB59,855 6Section 855. 71.05 (6) (b) 9. b. of the statutes is created to read:
SB59,607,77 71.05 (6) (b) 9. b. For a married couple who files a joint return, $150,000.
SB59,856 8Section 856. 71.05 (6) (b) 9. c. of the statutes is created to read:
SB59,607,99 71.05 (6) (b) 9. c. For a married individual who files a separate return, $75,000.
SB59,857 10Section 857. 71.05 (6) (b) 17. of the statutes is repealed.
SB59,858 11Section 858. 71.05 (6) (b) 18. of the statutes is repealed.
SB59,859 12Section 859. 71.05 (6) (b) 19. c. of the statutes is amended to read:
SB59,607,1813 71.05 (6) (b) 19. c. For taxable years beginning before January 1, 2020, for a
14person who is a nonresident or a part-year resident of this state, modify the amount
15calculated under subd. 19. b. by multiplying the amount by a fraction the numerator
16of which is the person's net earnings from a trade or business that are taxable by this
17state and the denominator of which is the person's total net earnings from a trade
18or business.
SB59,860 19Section 860. 71.05 (6) (b) 19. cm. of the statutes is created to read:
SB59,608,720 71.05 (6) (b) 19. cm. For taxable years beginning after December 31, 2019, for
21a person who is a nonresident or a part-year resident of this state, modify the amount
22calculated under subd. 19. b. by multiplying the amount by a fraction the numerator
23of which is the person's wages, salary, tips, unearned income, and net earnings from
24a trade or business that are taxable by this state and the denominator of which is the
25person's total wages, salary, tips, unearned income, and net earnings from a trade

1or business. In this subdivision, for married persons filing separately “wages, salary,
2tips, unearned income, and net earnings from a trade or business" means the
3separate wages, salary, tips, unearned income, and net earnings from a trade or
4business of each spouse, and for married persons filing jointly “wages, salary, tips,
5unearned income, and net earnings from a trade or business" means the total wages,
6salary, tips, unearned income, and net earnings from a trade or business of both
7spouses.
SB59,861 8Section 861. 71.05 (6) (b) 19. d. of the statutes is amended to read:
SB59,608,119 71.05 (6) (b) 19. d. Reduce For taxable years beginning before January 1, 2020,
10reduce
the amount calculated under subd. 19. b. or c. to the person's aggregate net
11earnings from a trade or business that are taxable by this state.
SB59,862 12Section 862. 71.05 (6) (b) 19. dm. of the statutes is created to read:
SB59,608,1613 71.05 (6) (b) 19. dm. For taxable years beginning after December 31, 2019,
14reduce the amount calculated under subd. 19. b. or cm. to the person's aggregate
15wages, salary, tips, unearned income, and net earnings from a trade or business that
16are taxable by this state.
SB59,863 17Section 863. 71.05 (6) (b) 20. of the statutes is repealed.
SB59,864 18Section 864. 71.05 (6) (b) 36. of the statutes is repealed.
SB59,865 19Section 865. 71.05 (6) (b) 37. of the statutes is repealed.
SB59,866 20Section 866. 71.05 (6) (b) 39. of the statutes is repealed.
SB59,867 21Section 867. 71.05 (6) (b) 40. of the statutes is repealed.
SB59,868 22Section 868. 71.05 (6) (b) 41. of the statutes is repealed.
SB59,869 23Section 869 . 71.05 (6) (b) 43. d. of the statutes is amended to read:
SB59,609,3
171.05 (6) (b) 43. d. For taxable years beginning after December 31, 2013, and
2before January 1, 2020,
up to $3,000 if the claimant has one qualified individual and
3up to $6,000 if the claimant has more than one qualified individual.
SB59,870 4Section 870. 71.05 (6) (b) 49. a. of the statutes is amended to read:
SB59,609,105 71.05 (6) (b) 49. a. Subject to the definitions provided in subd. 49. b. to g. and
6the limitations specified in subd. 49. h. to j. for taxable years beginning after
7December 31, 2013, and before January 1, 2019, and subject to the limitation in subd.
849. k. for taxable years beginning after December 31, 2017, and before January 1,
92019,
tuition expenses that are paid by a claimant for tuition for a pupil to attend an
10eligible institution.
SB59,871 11Section 871. 71.05 (6) (b) 49. k. of the statutes is amended to read:
SB59,609,1612 71.05 (6) (b) 49. k. For taxable years beginning after December 31, 2017, and
13before January 1, 2019,
no modification may be claimed under this subdivision for
14an amount paid for tuition expenses, as described under this subdivision, if the
15source of the payment is an amount withdrawn from a college savings account, as
16described in s. 224.50.
SB59,872 17Section 872. 71.05 (6) (b) 49. L. of the statutes is created to read:
SB59,609,1918 71.05 (6) (b) 49. L. No new claim may be filed under this subdivision for a
19taxable year that begins after December 31, 2018.
SB59,873 20Section 873 . 71.05 (6) (b) 54. of the statutes is created to read:
SB59,610,221 71.05 (6) (b) 54. For each account an account holder creates under s. 71.10 (10),
22and subject to s. 71.10 (10) (d), an account holder may subtract an amount of up to
23$5,000, or an amount of up to $10,000 if the account holder files a joint income tax
24return, for each such account that the account holder deposits into such an account
25in the taxable year to which the subtraction relates, and any interest, dividends, or

1other gain that accrues in the account if the interest, dividends, or other gain is
2redeposited into the account.
SB59,874 3Section 874. 71.05 (8) (a) of the statutes is amended to read:
SB59,610,104 71.05 (8) (a) The carry back of losses to reduce income of prior years may be
5permitted for 2 taxable years.
There shall be added any amount deducted as a federal
6net operating loss carry-back or carry-over and there shall be subtracted for the first
7taxable year for which the subtraction may be made any Wisconsin net operating loss
8carry-back or carry-forward allowable under par. (b) in an amount not in excess of
9the Wisconsin taxable income computed before the deduction of the Wisconsin net
10operating loss carry-back or carry-forward.
SB59,875 11Section 875. 71.05 (8) (b) 1. of the statutes is renumbered 71.05 (8) (b) and
12amended to read:
SB59,611,213 71.05 (8) (b) Except as provided in s. 71.80 (25), a Wisconsin net operating loss
14may be carried back against Wisconsin taxable income of the previous 2 years and
15then
carried forward against Wisconsin taxable incomes of the next 20 taxable years,
16if the taxpayer was subject to taxation under this chapter in the taxable year in which
17the loss was incurred, to the extent not offset against other income of the year of loss
18and to the extent not offset against Wisconsin modified taxable income of the 2 years
19preceding the loss and
of any year between the loss year and the taxable year for
20which the loss carry-forward is claimed. In this paragraph, “Wisconsin modified
21taxable income" means Wisconsin taxable income with the following exceptions: a
22net operating loss deduction or offset for the loss year or any taxable year before or
23thereafter is not allowed, the deduction for long-term capital gains under subs. (6)
24(b) 9. and 9m. and (25) is not allowed, the amount deductible for losses from sales or
25exchanges of capital assets may not exceed the amount includable in income for gains

1from sales or exchanges of capital assets and “Wisconsin modified taxable income"
2may not be less than zero.
SB59,876 3Section 876. 71.05 (8) (b) 2. of the statutes is repealed.
SB59,877 4Section 877. 71.05 (8) (c) of the statutes is repealed.
SB59,878 5Section 878. 71.07 (2dx) (a) 5. of the statutes is amended to read:
SB59,611,206 71.07 (2dx) (a) 5. “Member of a targeted group" means a person who resides
7in an area designated by the federal government as an economic revitalization area,
8a person who is employed in an unsubsidized job but meets the eligibility
9requirements under s. 49.145 (2) and (3) for a Wisconsin Works employment position,
10or a person who is employed in a trial job, as defined in s. 49.141 (1) (n), 2011 stats.,
11or
in a trial employment match program job subsidized employment placement, as
12defined in s. 49.141 (1) (n) (Lm), a person who is eligible for child care assistance
13under s. 49.155, a person who is a vocational rehabilitation referral, an economically
14disadvantaged youth, an economically disadvantaged veteran, a supplemental
15security income recipient, a general assistance recipient, an economically
16disadvantaged ex-convict, a qualified summer youth employee, as defined in 26 USC
1751
(d) (7), a dislocated worker, as defined in 29 USC 2801 (9), or a food stamp
18recipient, if the person has been certified in the manner under s. 71.07 (2dj) (am) 3.,
192013 stats., by a designated local agency, as defined in s. 71.07 (2dj) (am) 2., 2013
20stats.
SB59,879 21Section 879. 71.07 (4k) (e) 2. a. of the statutes is amended to read:
SB59,612,422 71.07 (4k) (e) 2. a. The For taxable years beginning after December 31, 2017,
23and before January 1, 2020, the
amount of the claim not used to offset the tax due,
24not to exceed 10 percent of the allowable amount of the claim under par. (b) 4., 5., or
256., shall be certified by the department of revenue to the department of

1administration for payment by check, share draft, or other draft drawn from the
2appropriation account under s. 20.835 (2) (d). A person who is certified to claim tax
3benefits under s. 238.396 (3) or (3m) is not eligible to receive the payment under this
4subd. 2. a.
SB59,880 5Section 880. 71.07 (4k) (e) 2. am. of the statutes is created to read:
SB59,612,126 71.07 (4k) (e) 2. am. For taxable years beginning after December 31, 2019, the
7amount of the claim not used to offset the tax due, not to exceed 20 percent of the
8allowable amount of the claim under par. (b) 4., 5., or 6., shall be certified by the
9department of revenue to the department of administration for payment from the
10appropriation account under s. 20.835 (2) (d). A person who is certified to claim tax
11benefits under s. 238.396 (3) or (3m) is not eligible to receive the payment under this
12subd. 2. am.
SB59,881 13Section 881. 71.07 (4k) (e) 2. b. of the statutes is amended to read:
SB59,612,1914 71.07 (4k) (e) 2. b. The amount of the claim not used to offset the tax due and
15not certified for payment under subd. 2. a. or am. may be carried forward and credited
16against Wisconsin income taxes otherwise due for the following 15 taxable years to
17the extent not offset by these taxes otherwise due in all intervening years between
18the year in which the expense was incurred and the year in which the carry-forward
19credit is claimed.
SB59,882 20Section 882. 71.07 (5) (a) 15. of the statutes is amended to read:
SB59,613,221 71.07 (5) (a) 15. The amount claimed as a deduction for medical care insurance
22under section 213 of the Internal Revenue Code that is exempt from taxation under
23s. 71.05 (6) (b) 17. to 20. 19., 35., 36., 37., 38., 39., 40., 41., and 42. and the amount
24claimed as a deduction for a long-term care insurance policy under section 213 (d)

1(1) (D) of the Internal Revenue Code, as defined in section 7702B (b) of the Internal
2Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 26.
SB59,883 3Section 883. 71.07 (5m) (e) of the statutes is created to read:
SB59,613,54 71.07 (5m) (e) Sunset. No credit may be claimed under this subsection for
5taxable years beginning after December 31, 2018.
SB59,884 6Section 884. 71.07 (5me) of the statutes is created to read:
SB59,613,87 71.07 (5me) Family and individual reinvestment credit. (a) Definitions. In
8this subsection:
SB59,613,109 1. “Claimant" means an individual who is eligible to claim the credit under this
10subsection.
SB59,613,1211 2. “Household" means a claimant and an individual related to the claimant as
12husband or wife.
SB59,613,1413 3. “Net tax liability" means a claimant's income tax liability after he or she
14completes the computations for nonrefundable credits listed in s. 71.10 (4) (a) to (gy).
SB59,613,1815 (b) Filing claims. For taxable years beginning after December 31, 2018, and
16subject to the limitations provided in this subsection, a claimant may claim as a
17credit against the tax imposed under s. 71.02, up to the amount of those taxes, one
18of the following amounts:
SB59,613,2119 1. If the claimant is single or files as a head of household and his or her adjusted
20gross income is less than $80,000 in the year to which the claim relates, the greater
21of $100 or an amount equal to 10 percent of his or her net tax liability.
SB59,613,2422 2. If the claimant is single or files as a head of household and his or her adjusted
23gross income is at least $80,000 but less than $100,000 in the year to which the claim
24relates, an amount that is calculated as follows:
SB59,614,3
1a. Calculate the value of a fraction, the denominator of which is $20,000 and
2the numerator of which is the difference between the claimant's adjusted gross
3income and $80,000.
SB59,614,44 b. Subtract from 1.0 the amount that is calculated under subd. 2. a.
SB59,614,55 c. Multiply the amount that is calculated under subd. 2. b. by 10 percent.
SB59,614,76 d. Multiply the amount of the claimant's net income tax liability by the amount
7that is calculated under subd. 2. c.
SB59,614,118 3. If the claimant is married and filing jointly and the sum of the claimant's
9adjusted gross income and his or her spouse's adjusted gross income is less than
10$125,000 in the year to which the claim relates, the greater of $50 or an amount equal
11to 10 percent of the married couple's net tax liability.
SB59,614,1512 4. If the claimant is married and filing jointly and the sum of the claimant's
13adjusted gross income and his or her spouse's adjusted gross income is at least
14$125,000 but less than $150,000 in the year to which the claim relates, an amount
15that is calculated as follows:
SB59,614,1816 a. Calculate the value of a fraction, the denominator of which is $25,000 and
17the numerator of which is the difference between the married couple's adjusted gross
18income and $125,000.
SB59,614,1919 b. Subtract from 1.0 the amount that is calculated under subd. 4. a.
SB59,614,2020 c. Multiply the amount that is calculated under subd. 4. b. by 10 percent.
SB59,614,2221 d. Multiply the amount of the married couple's net income tax liability by the
22amount that is calculated under subd. 4. c.
SB59,614,2523 5. If the claimant is married and filing separately and his or her adjusted gross
24income is less than $62,500 in the year to which the claim relates, the greater of $25
25or an amount equal to 10 percent of his or her net tax liability.
SB59,615,3
16. If the claimant is married and filing separately and his or her adjusted gross
2income is at least $62,500 but less than $75,000 in the year to which the claim relates,
3an amount that is calculated as follows:
SB59,615,64 a. Calculate the value of a fraction, the denominator of which is $12,500 and
5the numerator of which is the difference between the claimant's adjusted gross
6income and $75,000.
SB59,615,77 b. Subtract from 1.0 the amount that is calculated under subd. 6. a.
SB59,615,88 c. Multiply the amount that is calculated under subd. 6. b. by 10 percent.
SB59,615,109 d. Multiply the amount of the claimant's net income tax liability by the amount
10that is calculated under subd. 6. c.
SB59,615,1211 (c) Limitations. 1. No credit may be allowed under this subsection unless it
12is claimed within the period under s. 71.75 (2).
SB59,615,1413 2. Part-year residents and nonresidents of this state are not eligible for the
14credit under this subsection.
SB59,615,1615 3. Except as provided in subd. 4., only one credit per household is allowed each
16year.
SB59,615,2017 4. If a married couple files separately, each spouse may claim the credit
18calculated under par. (b) 5. or 6., except a married person living apart from the other
19spouse and treated as single under section 7703 (b) of the Internal Revenue Code may
20claim the credit under par. (b) 1. or 2.
SB59,615,2221 5. The credit under this subsection may not be claimed by a person who may
22be claimed as a dependent on the individual income tax return of another taxpayer.
SB59,616,223 (d) Administration. The department of revenue may enforce the credit under
24this subsection and may take any action, conduct any proceeding, and proceed as it
25is authorized in respect to taxes under this chapter. The income tax provisions in this

1chapter relating to assessments, refunds, appeals, collection, interest, and penalties
2apply to the credit under this subsection.
SB59,885 3Section 885. 71.07 (5n) (d) 2. of the statutes is amended to read:
SB59,616,94 71.07 (5n) (d) 2. For Except as provided in subd. 2m., for purposes of
5determining a claimant's eligible qualified production activities income under this
6subsection, the claimant shall multiply the claimant's qualified production activities
7income from property manufactured by the claimant by the manufacturing property
8factor and qualified production activities income from property produced, grown, or
9extracted by the claimant by the agriculture property factor.
SB59,886 10Section 886. 71.07 (5n) (d) 2m. of the statutes is created to read:
SB59,616,1611 71.07 (5n) (d) 2m. For taxable years beginning after December 31, 2018, for
12purposes of determining a claimant's eligible qualified production activities income
13from manufacturing under this subsection, the claimant, including a beneficiary or
14fiduciary, shall multiply the claimant's qualified production activities income, not
15exceeding $300,000, from property manufactured by the claimant by the
16manufacturing property factor.
SB59,887 17Section 887 . 71.07 (8m) of the statutes is created to read:
SB59,616,1918 71.07 (8m) Additional household and dependent care expenses tax credit.
19(a) Definitions. In this subsection:
Loading...
Loading...