SB59: Bill Text

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.

SB59,623,7 2. An account holder shall dissolve an account created under this subsection not later than 120 months after it is created by the account holder.

SB59,623,10 3. If funds remain in an account when it must be dissolved under subd. 2., the financial institution shall distribute the proceeds in the account to the account holder.

SB59,623,12 4. If an account holder dies while funds remain in the account, the proceeds shall be distributed to the account holder's estate.

SB59,623,13 (e) Department responsibilities. The department shall:

SB59,623,17 1. Prepare and distribute any forms that an account holder is required to submit under this subsection, and any other forms that the department believes are necessary to enable it to administer this subsection and the adjustments to income under s. 71.05 (6) (a) 29. and (b) 54.

SB59,623,19 2. Prepare and distribute to financial institutions and potential home buyers informational materials about the accounts described in this subsection.

SB59,899 Section 899. 71.21 (4) (a) of the statutes is amended to read:

SB59,623,24 71.21 (4) (a) The amount of the credits computed by a partnership under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8b), (8r), and (10) and passed through to partners shall be added to the partnership's income.

SB59,900 Section 900. 71.21 (7) of the statutes is created to read:

SB59,624,5 71.21 (7) A deduction under the Internal Revenue Code for moving expenses, as defined in s. 71.01 (8j), paid or incurred during the taxable year to move the taxpayer's Wisconsin business operation, in whole or in part, to a location outside the state or to move the taxpayer's business operation outside the United States is not allowed.

SB59,901 Section 901. 71.22 (1e) of the statutes is repealed.

SB59,902 Section 902. 71.22 (4) (c) of the statutes is repealed.

SB59,903 Section 903. 71.22 (4) (j) 3. m. of the statutes is created to read:

SB59,624,10 71.22 (4) (j) 3. m. Sections 101 (m), (n), (o), (p), and (q) and 104 (a) of division U of P.L. 115-141.

SB59,904 Section 904. 71.22 (4) (k) 3. of the statutes is amended to read:

SB59,624,15 71.22 (4) (k) 3. For purposes of this paragraph, “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2016, except that “Internal Revenue Code” includes sections 11024, 11025, and 13543 of P.L. 115-97 and sections 40307 and 40413 of P.L. 115-123.

SB59,905 Section 905. 71.22 (4) (L) 1. of the statutes is amended to read:

SB59,624,21 71.22 (4) (L) 1. For taxable years beginning after December 31, 2017, and before January 1, 2019, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2017, except as provided in subds. 2. and 3. and subject to subd. 4., and except as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34 (1g), 71.42 (2), and 71.98.

SB59,906 Section 906. 71.22 (4) (L) 4. of the statutes is amended to read:

SB59,625,3 71.22 (4) (L) 4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by P.L. 115-63 and sections 11026, 11027, 11028, 13207, 13306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L. 115-97 first apply for taxable years beginning after December 31, 2017.

SB59,907 Section 907. 71.22 (4) (m) of the statutes is created to read:

SB59,625,8 71.22 (4) (m) 1. For taxable years beginning after December 31, 2018, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2018, except as provided in subds. 2. and 3. and subject to subd. 4., and except as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34 (1g), 71.42 (2), and 71.98.

SB59,626,4 2. For purposes of this paragraph, “Internal Revenue Code" does not include the following provisions of federal public laws for taxable years beginning after December 31, 2018: section 13113 of P.L. 103-66; sections 1, 3, 4, and 5 of P.L. 106-519; sections 101, 102, and 422 of P.L. 108-357; sections 1310 and 1351 of P.L. 109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L. 110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section 15351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251, 1501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L. 111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L. 111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and 411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division P of P.L. 114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113; sections 11011, 13201 (a) to (e) and (g), 13801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97; sections 40304, 40305, 40306, and 40412 of P.L. 115-123; section 101 (c) of division T of P.L. 115-141; and sections 101 (d) and (e), 102, 201 to 207, 301, 302, and 401 (a) (47) and (195), (b) (13), (17), (22) and (30), and (d) (1) (D) (v), (vi), and (xiii) and (xvii) (II) of division U of P.L. 115-141.

SB59,626,6 3. For purposes of this paragraph, “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2018.

SB59,626,14 4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by sections 11012, 13221, 13301, 13304 (a) and (b), 13531, and 13601 of P.L. 115-97, 20101, 20102, 20104, 20201, 40201, 40202, 40203, 40308, 40309, 40311, 40414, 41101, 41107, 41115, and 41116 of PL. 115-123 and section 101 (a), (b), and (h) of division U of P.L. 115-141 apply for taxable years beginning after December 31, 2018.

SB59,908 Section 908. 71.22 (4m) (c) of the statutes is repealed.

SB59,909 Section 909. 71.22 (4m) (j) 3. m. of the statutes is created to read:

SB59,626,18 71.22 (4m) (j) 3. m. Sections 101 (m), (n), (o), (p), and (q) and 104 (a) of division U of P.L. 115-141.

SB59,910 Section 910. 71.22 (4m) (k) 3. of the statutes is amended to read:

SB59,626,23 71.22 (4m) (k) 3. For purposes of this paragraph, “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2016, except that “Internal Revenue Code” includes sections 11024, 11025, and 13543 of P.L. 115-97 and sections 40307 and 40413 of P.L. 115-123.

SB59,911 Section 911. 71.22 (4m) (L) 1. of the statutes is amended to read:

SB59,627,5 71.22 (4m) (L) 1. For taxable years beginning after December 31, 2017, and before January 1, 2019, “Internal Revenue Code", for corporations that are subject to a tax on unrelated business income under s. 71.26 (1) (a), means the federal Internal Revenue Code as amended to December 31, 2017, except as provided in subds. 2. and 3. and s. 71.98 and subject to subd. 4.

SB59,912 Section 912. 71.22 (4m) (L) 4. of the statutes is amended to read:

SB59,627,12 71.22 (4m) (L) 4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by P.L. 115-63 and sections 11026, 11027, 11028, 13207, 13306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L. 115-97 first apply for taxable years beginning after December 31, 2017.

SB59,913 Section 913. 71.22 (4m) (m) of the statutes is created to read:

SB59,627,18 71.22 (4m) (m) 1. For taxable years beginning after December 31, 2018, “Internal Revenue Code,” for corporations that are subject to a tax on unrelated business income under s. 71.26 (1) (a), means the federal Internal Revenue Code as amended to December 31, 2018, except as provided in subds. 2. and 3. and s. 71.98 and subject to subd. 4.

SB59,628,14 2. For purposes of this paragraph, “Internal Revenue Code" does not include the following provisions of federal public laws for taxable years beginning after December 31, 2018: section 13113 of P.L. 103-66; sections 1, 3, 4, and 5 of P.L. 106-519; sections 101, 102, and 422 of P.L. 108-357; sections 1310 and 1351 of P.L. 109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L. 110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section 15351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251, 1501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L. 111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L. 111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and 411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division P of P.L. 114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113; sections 11011, 13201 (a) to (e) and (g), 13801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97; sections 40304, 40305, 40306, and 40412 of P.L. 115-123; section 101 (c) of division T of P.L. 115-141; and sections 101 (d) and (e), 102, 201 to 207, 301, 302, and 401 (a) (47) and (195), (b) (13), (17), (22) and (30), and (d) (1) (D) (v), (vi), and (xiii) and (xvii) (II) of division U of P.L. 115-141.

SB59,628,16 3. For purposes of this paragraph, “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2018.

SB59,628,24 4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by sections 11012, 13221, 13301, 13304 (a) and (b), 13531, and 13601 of P.L. 115-97, 20101, 20102, 20104, 20201, 40201, 40202, 40203, 40308, 40309, 40311, 40414, 41101, 41107, 41115, and 41116 of PL. 115-123 and section 101 (a), (b), and (h) of division U of P.L. 115-141 apply for taxable years beginning after December 31, 2018.

SB59,914 Section 914. 71.22 (5g) of the statutes is created to read:

SB59,629,2 71.22 (5g) For purposes of subs. (4) (b) and (4m) (b), 2013 stats., “Internal Revenue Code” includes section 109 of division U of P.L. 115-141.

SB59,915 Section 915. 71.25 (9) (dh) 3. of the statutes is amended to read:

SB59,629,7 71.25 (9) (dh) 3. Except as provided in subd. 4. if If the purchaser of a service receives the benefit of a service in more than one state, the gross receipts from the performance of the service are included in the numerator of the sales factor according to the portion of the service received in this state.

SB59,916 Section 916. 71.25 (9) (dh) 4. of the statutes is repealed.

SB59,917 Section 917. 71.25 (9) (dj) 1. (intro.) of the statutes is renumbered 71.25 (9) (dj) (intro.) and amended to read:

SB59,629,16 71.25 (9) (dj) (intro.) Except as provided in subd. 2m. and par. (df), gross royalties and other gross receipts received for the use or license of intangible property, including patents, copyrights, trademarks, trade names, service names, franchises, licenses, plans, specifications, blueprints, processes, techniques, formulas, designs, layouts, patterns, drawings, manuals, technical know-how, contracts, and customer lists, are sales in this state if any of the following applies:

SB59,918 Section 918. 71.25 (9) (dj) 1. a. of the statutes is renumbered 71.25 (9) (dj) 1n. and amended to read:

SB59,629,25 71.25 (9) (dj) 1n. The purchaser or licensee uses the intangible property in the operation of a trade or business at a location in this state. Except as provided in subd. 2m., if If the purchaser or licensee uses the intangible property in the operation of a trade or business in more than one state, the gross royalties and other gross receipts from the use of the intangible property shall be divided between those states having jurisdiction to impose an income tax on the taxpayer in proportion to the use of the intangible property in those states.

SB59,919 Section 919. 71.25 (9) (dj) 1. b. of the statutes is renumbered 71.25 (9) (dj) 2n.

SB59,920 Section 920. 71.25 (9) (dj) 1. c. of the statutes is renumbered 71.25 (9) (dj) 3n.

SB59,921 Section 921. 71.25 (9) (dj) 2m. of the statutes is repealed.

SB59,922 Section 922. 71.25 (9) (g) of the statutes is repealed.

SB59,923 Section 923. 71.26 (1m) (o) of the statutes is created to read:

SB59,630,9 71.26 (1m) (o) Those issued by the Wisconsin Health and Educational Facilities Authority under s. 231.03 (6), if the bonds or notes are issued in an amount totaling $35,000,000 or less, and to the extent that the interest income received is not otherwise exempt under this subsection.

SB59,924 Section 924. 71.26 (2) (a) 4. of the statutes is amended to read:

SB59,630,16 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (3wm), (3y), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8b), (8r), (9s), and (10) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, limited liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).

SB59,925 Section 925. 71.26 (2) (b) 3. of the statutes is repealed.

SB59,926 Section 926. 71.26 (2) (b) 10. d. of the statutes is amended to read:

SB59,631,2 71.26 (2) (b) 10. d. For purposes of subd. 10. a., “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2013, except that “Internal Revenue Code" includes the provisions of P.L. 113-97, P.L. 113-159, P.L. 113-168, section 302901 of P.L. 113-287, sections 171, 172, and 201 to 221 of P.L. 113-295, sections 102, 105, and 207 of division B of P.L. 113-295, P.L. 114-14, P.L. 114-26, section 2004 of P.L. 114-41, sections 503 and 504 of P.L. 114-74, sections 103, 104, 124, 168, 184, 185, 190, 204, 303, 306, 336, and 341 of division Q of P.L. 114-113, and P.L. 114-239, and sections 101 (m), (n), (o), (p), and (q) and 104 (a) of division U of P.L. 115-141.

SB59,927 Section 927. 71.26 (2) (b) 11. d. of the statutes is amended to read:

SB59,631,7 71.26 (2) (b) 11. d. For purposes of subd. 11. a., “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2016, except that “Internal Revenue Code” includes sections 11024, 11025, and 13543 of P.L. 115-97 and sections 40307 and 40413 of P.L. 115-123.

SB59,928 Section 928. 71.26 (2) (b) 12. a. of the statutes is amended to read:

SB59,631,17 71.26 (2) (b) 12. a. For taxable years beginning after December 31, 2017, and before January 1, 2019, for a corporation, conduit, or common law trust which qualifies as a regulated investment company, real estate mortgage investment conduit, real estate investment trust, or financial asset securitization investment trust under the Internal Revenue Code, “net income" means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income, federal real estate investment trust or financial asset securitization investment trust taxable income of the corporation, conduit, or trust as determined under the Internal Revenue Code.

SB59,929 Section 929. 71.26 (2) (b) 12. e. of the statutes is amended to read:

SB59,631,24 71.26 (2) (b) 12. e. For purposes of subd. 12. a., the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this subdivision, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by P.L. 115-63 and sections 11026, 11027, 11028, 13207, 13306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L. 115-97 first apply for taxable years beginning after December 31, 2017.

SB59,930 Section 930. 71.26 (2) (b) 13. of the statutes is created to read:

SB59,632,8 71.26 (2) (b) 13. a. For taxable years beginning after December 31, 2018, for a corporation, conduit, or common law trust which qualifies as a regulated investment company, real estate mortgage investment conduit, real estate investment trust, or financial asset securitization investment trust under the Internal Revenue Code, “net income" means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income, federal real estate investment trust or financial asset securitization investment trust taxable income of the corporation, conduit, or trust as determined under the Internal Revenue Code.

SB59,632,11 b. For purposes of subd. 13. a., “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2018, except as provided in subd. 13. c. and d. and s. 71.98 and subject to subd. 13. e.

SB59,633,7 c. For purposes of subd. 13. a., “Internal Revenue Code" does not include the following provisions of federal public laws for taxable years beginning after December 31, 2018: section 13113 of P.L. 103-66; sections 1, 3, 4, and 5 of P.L. 106-519; sections 101, 102, and 422 of P.L. 108-357; sections 1310 and 1351 of P.L. 109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L. 110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section 15351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251, 1501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L. 111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L. 111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and 411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division P of P.L. 114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113; sections 11011, 13201 (a) to (e) and (g), 13801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97; sections 40304, 40305, 40306, and 40412 of P.L. 115-123; section 101 (c) of division T of P.L. 115-141; and sections 101 (d) and (e), 102, 201 to 207, 301, 302, and 401 (a) (47) and (195), (b) (13), (17), (22) and (30), and (d) (1) (D) (v), (vi), and (xiii) and (xvii) (II) of division U of P.L. 115-141.

SB59,633,9 d. For purposes of subd. 13. a., “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2018.