SB59: Bill Text

SB59,613,10 1. “Claimant" means an individual who is eligible to claim the credit under this subsection.

SB59,613,12 2. “Household" means a claimant and an individual related to the claimant as husband or wife.

SB59,613,14 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).

SB59,613,18 (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:

SB59,613,21 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.

SB59,613,24 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:

SB59,614,3 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.

SB59,614,4 b. Subtract from 1.0 the amount that is calculated under subd. 2. a.

SB59,614,5 c. Multiply the amount that is calculated under subd. 2. b. by 10 percent.

SB59,614,7 d. Multiply the amount of the claimant's net income tax liability by the amount that is calculated under subd. 2. c.

SB59,614,11 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.

SB59,614,15 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:

SB59,614,18 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.

SB59,614,19 b. Subtract from 1.0 the amount that is calculated under subd. 4. a.

SB59,614,20 c. Multiply the amount that is calculated under subd. 4. b. by 10 percent.

SB59,614,22 d. Multiply the amount of the married couple's net income tax liability by the amount that is calculated under subd. 4. c.

SB59,614,25 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.

SB59,615,3 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:

SB59,615,6 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.

SB59,615,7 b. Subtract from 1.0 the amount that is calculated under subd. 6. a.

SB59,615,8 c. Multiply the amount that is calculated under subd. 6. b. by 10 percent.

SB59,615,10 d. Multiply the amount of the claimant's net income tax liability by the amount that is calculated under subd. 6. c.

SB59,615,12 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the period under s. 71.75 (2).

SB59,615,14 2. Part-year residents and nonresidents of this state are not eligible for the credit under this subsection.

SB59,615,16 3. Except as provided in subd. 4., only one credit per household is allowed each year.

SB59,615,20 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.

SB59,615,22 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.

SB59,616,2 (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.

SB59,885 Section 885. 71.07 (5n) (d) 2. of the statutes is amended to read:

SB59,616,9 71.07 (5n) (d) 2. For Except as provided in subd. 2m., for purposes of determining a claimant's eligible qualified production activities income under this subsection, the claimant shall multiply the claimant's qualified production activities income from property manufactured by the claimant by the manufacturing property factor and qualified production activities income from property produced, grown, or extracted by the claimant by the agriculture property factor.

SB59,886 Section 886. 71.07 (5n) (d) 2m. of the statutes is created to read:

SB59,616,16 71.07 (5n) (d) 2m. For taxable years beginning after December 31, 2018, for purposes of determining a claimant's eligible qualified production activities income from manufacturing under this subsection, the claimant, including a beneficiary or fiduciary, shall multiply the claimant's qualified production activities income, not exceeding $300,000, from property manufactured by the claimant by the manufacturing property factor.

SB59,887 Section 887 . 71.07 (8m) of the statutes is created to read:

SB59,616,19 71.07 (8m) Additional household and dependent care expenses tax credit. (a) Definitions. In this subsection:

SB59,616,22 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.

SB59,616,24 2. “Household and dependent care expenses tax credit" means the tax credit under section 21 of the Internal Revenue Code.

SB59,617,6 (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.

SB59,617,8 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

SB59,617,11 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.

SB59,617,13 3. The credit under this subsection may not be claimed by either a part-year resident or a nonresident of this state.

SB59,617,15 4. The credit under this subsection may be claimed for taxable years beginning after December 31, 2019.

SB59,617,17 5. A claimant who claims the credit under this subsection is subject to the special rules in 26 USC 21 (e) (2) and (4).

SB59,617,19 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

SB59,888 Section 888 . 71.07 (9e) (aj) (intro.) of the statutes is amended to read:

SB59,617,25 71.07 (9e) (aj) (intro.) For taxable years beginning after December 31, 2010, and before January 1, 2019, an individual may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the person is eligible for the taxable year under section 32 (b) (1) (A) to (C) of the Internal Revenue Code:

SB59,889 Section 889. 71.07 (9e) (ak) of the statutes is created to read:

SB59,618,6 71.07 (9e) (ak) For taxable years beginning after December 31, 2018, an individual may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the individual is eligible for the taxable year under section 32 (b) (1) of the Internal Revenue Code:

SB59,618,8 1. If the individual has one qualifying child who has the same principal place of abode as the individual, 11 percent.

SB59,618,10 2. If the individual has 2 qualifying children who have the same principal place of abode as the individual, 14 percent.

SB59,618,12 3. If the individual has 3 or more qualifying children who have the same principal place of abode as the individual, 34 percent.

SB59,890 Section 890. 71.07 (9m) (a) 3. of the statutes is amended to read:

SB59,619,2 71.07 (9m) (a) 3. For taxable years beginning after December 31, 2013, and before January 1, 2019, any person may claim as a credit against taxes otherwise due under s. 71.02, up to the amount of those taxes, an amount equal to 20 percent of the costs of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue Code, for qualified rehabilitated buildings, as defined in section 47 (c) (1) of the Internal Revenue Code, on property located in this state, if the cost of the person's qualified rehabilitation expenditures is at least $50,000 and the rehabilitated property is placed in service after December 31, 2013, and regardless of whether the rehabilitated property is used for multiple or revenue-producing purposes. No credit may be claimed under this subdivision for property listed as a contributing building in the state register of historic places or in the national register of historic places and no credit may be claimed under this subdivision for nonhistoric, nonresidential property converted into housing if the property has been previously used for housing.

SB59,891 Section 891. 71.07 (9m) (cn) (intro.) of the statutes is amended to read:

SB59,619,6 71.07 (9m) (cn) (intro.) For taxable years beginning after December 31, 2014, and before January 1, 2019, the Wisconsin Economic Development Corporation shall certify a person to claim a credit under par. (a) 3. if all of the following apply:

SB59,892 Section 892. 71.07 (9m) (e) of the statutes is renumbered 71.07 (9m) (e) 1.

SB59,893 Section 893. 71.07 (9m) (e) 2. of the statutes is created to read:

SB59,619,12 71.07 (9m) (e) 2. No credit may be claimed under par. (a) 3. for taxable years beginning after December 31, 2018. Credits under par. (a) 3. for taxable years that begin before January 1, 2019, may be carried forward to taxable years that begin after December 31, 2018.

SB59,894 Section 894 . 71.10 (4) (cs) of the statutes is created to read:

SB59,619,15 71.10 (4) (cs) Additional household and dependent care expenses tax credit under s. 71.07 (8m).

SB59,895 Section 895. 71.10 (4) (gye) of the statutes is created to read:

SB59,619,17 71.10 (4) (gye) Family and individual reinvestment credit under s. 71.07 (5me).

SB59,896 Section 896 . 71.10 (4) (i) of the statutes is amended to read:

SB59,620,8 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief credit under s. 71.07 (3m), dairy manufacturing facility investment credit under s. 71.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment credit under s. 71.07 (3r), woody biomass harvesting and processing credit under s. 71.07 (3rm), food processing plant and food warehouse investment credit under s. 71.07 (3rn), business development credit under s. 71.07 (3y), research credit under s. 71.07 (4k) (e) 2. a. and am., film production services credit under s. 71.07 (5f), film production company investment credit under s. 71.07 (5h), veterans and surviving spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s. 71.07 (3w), electronics and information technology manufacturing zone credit under s. 71.07 (3wm), beginning farmer and farm asset owner tax credit under s. 71.07 (8r), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

SB59,897 Section 897 . 71.10 (4) (k) of the statutes is created to read:

SB59,620,10 71.10 (4) (k) Any amount computed under s. 71.83 (1) (ch).

SB59,898 Section 898 . 71.10 (10) of the statutes is created to read:

SB59,620,13 71.10 (10) First-time home buyers savings accounts. (a) Definitions. In this subsection:

SB59,620,15 1. “Account holder” means an individual who creates, individually or jointly with his or her spouse, an account under this subsection.

SB59,620,17 2. “Allowable closing costs” means disbursements listed in a settlement statement for the purchase of a single-family residence by an account holder.

SB59,620,19 3. “Beneficiary" means a first-time home buyer who is designated by an account holder as the beneficiary of an account under this subsection.

SB59,620,21 4. “Eligible costs” means the down payment and allowable closing costs for the purchase of a single-family residence in this state by a beneficiary.

SB59,621,2 5. “Financial institution" means any bank, trust company, savings institution, savings bank, savings and loan association, industrial loan association, consumer finance company, credit union, or any benefit association, insurance company, safe deposit company, money market mutual fund, or similar entity authorized to do business in this state.

SB59,621,6 6. “First-time home buyer” means an individual who resides in this state and has not owned or purchased, either individually or jointly, a single-family residence during the 36 months before the month in which the individual purchases a single-family residence in this state.

SB59,621,10 7. “Single-family residence” means a residence intended for occupation by a single family unit that is owned and occupied by a beneficiary as his or her principal residence, including a manufactured home, residential trailer, mobile home, condominium unit, or cooperative.

SB59,621,13 (b) Creation of account. 1. An individual may become an account holder by creating an account at a financial institution to pay or reimburse the eligible costs of a first-time home buyer.

SB59,621,17 2. The account holder shall designate a beneficiary when the account is created. The account holder may designate himself or herself as the beneficiary. An account holder may change the beneficiary at any time. No account created under this subsection may have more than one beneficiary at any one time.

SB59,621,19 3. An individual may jointly own an account created under this subsection with his or her spouse.

SB59,621,22 4. An individual may be the account holder of more than one account created under this subsection, but an account holder may not have more than one account that designates the same beneficiary.

SB59,621,24 5. An individual may be the beneficiary of more than one account created under this subsection.

SB59,622,2 6. Only cash and marketable securities may be contributed to an account under this subsection.

SB59,622,5 7. Persons other than an account holder may contribute to an account created under this subsection, but the subtraction under s. 71.05 (6) (b) 54. may be claimed only by an account holder.

SB59,622,9 (c) Account holder rights and responsibilities. 1. An account holder may withdraw funds from an account created under this subsection to pay eligible costs for the benefit of the beneficiary or to reimburse the beneficiary for eligible costs the beneficiary incurs and has paid.

SB59,622,12 2. An account holder may not use funds in an account created under this subsection to pay any expenses he or she incurs in administering the account, although a financial institution may deduct a service fee from the account.

SB59,622,16 3. Annually, an account holder shall submit to the department of revenue with his or her income tax return, on forms prepared by the department, detailed information regarding the account. The information submitted shall include all of the following:

SB59,622,19 a. A list of transactions in the account during the taxable year to which the account holder's return relates, including the beginning and ending balance of the account.

SB59,622,20 b. The 1099 form issued by the financial institution that relates to the account.

SB59,622,22 c. A list of eligible costs, and other costs, for which funds from the account were withdrawn during the taxable year to which the account holder's return relates.

SB59,623,2 4. An account holder may withdraw funds from the account with no penalty due under s. 71.83 (1) (ch) and no responsibility to make an addition under s. 71.05 (6) (a) 29., if he or she immediately transfers the funds to a different financial institution and deposits the funds into an account created under this subsection at that financial institution.

SB59,623,5 (d) Limitations on accounts, dissolution. 1. An account holder may not claim a subtraction under s. 71.05 (6) (b) 54. for more than a total of $50,000 of deposits into an account for each beneficiary.