Amendment SSA1-AB68

AB68-SSA1,1328 Section 1328. 71.07 (3y) (c) 1. b. of the statutes is created to read:

AB68-SSA1,676,16 71.07 (3y) (c) 1. b. For taxable years beginning after December 31, 2020, partnerships, limited liability companies, and tax-option corporations may elect to claim the credit under this subsection, if the credit results from a contract entered into with the Wisconsin Economic Development Corporation before December 22, 2017. A partnership, limited liability company, or tax-option corporation that wishes to make the election under this subd. 1. b. shall make the election for each taxable year on its original return and may not subsequently make or revoke the election. If a partnership, limited liability company, or tax-option corporation elects to claim the credit under this subsection, the partners, members, and shareholders may not claim the credit under this subsection. The credit may not be claimed under this subd. 1. b. if one or more partners, members, or shareholders have claimed the credit under this subsection for the same taxable year for which the credit is claimed under this subd. 1. b.

AB68-SSA1,1329 Section 1329. 71.07 (4k) (e) 2. a. of the statutes is amended to read:

AB68-SSA1,677,2 71.07 (4k) (e) 2. a. The For taxable years beginning before January 1, 2021, the amount of the claim not used to offset the tax due, not to exceed 10 percent of the allowable amount of the claim under par. (b) 4., 5., or 6., shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (d). For taxable years beginning after December 31, 2020, the amount of the claim not used to offset the tax due, not to exceed 20 percent of the allowable amount of the claim under par. (b) 4., 5., or 6., shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (d).

AB68-SSA1,1330 Section 1330 . 71.07 (4t) of the statutes is created to read:

AB68-SSA1,677,4 71.07 (4t) Work opportunity tax credit. (a) Definitions. In this subsection:

AB68-SSA1,677,6 1. “Claimant” means a person who is an employer of a targeted group member and who files a claim under this subsection.

AB68-SSA1,677,8 2. “Targeted group member” means an individual who performs services for the claimant in this state and who is a member of a targeted group under 26 USC 51 (d).

AB68-SSA1,677,11 (b) Filing claims. For taxable years beginning after December 31, 2020, a claimant may claim as a credit against the taxes imposed under s. 71.02, up to the amount of the tax, the following amounts:

AB68-SSA1,677,14 1. An amount equal to 20 percent of the qualified first-year wages, as defined in 26 USC 51 (b) (2), paid during the taxable year to a targeted group member who has performed at least 400 hours of services for the claimant in this state.

AB68-SSA1,677,18 2. An amount equal to 12.5 percent of the qualified first-year wages, as defined in 26 USC 51 (b) (2), paid during the taxable year to a targeted group member who has performed at least 120 hours, but less than 400 hours, of services for the claimant in this state.

AB68-SSA1,677,22 3. An amount equal to 25 percent of the qualified 2nd-year wages, as defined in 26 USC 51 (e) (2), paid during the taxable year to a long-term family assistance recipient, as defined in 26 USC 51 (d) (10), who has performed at least 400 hours of services for the claimant in this state.

AB68-SSA1,677,25 (c) Limitations. 1. The wages for which a credit may be claimed under par. (b) may not exceed the applicable threshold in 26 USC 51 (b) (3), (d) (7) (B) (ii), or (e) (1) (B) and may not be paid for services performed outside this state.

AB68-SSA1,678,2 2. A credit under this subsection shall be claimed at the same time as the credit under 26 USC 51.

AB68-SSA1,678,4 3. The requirements and limitations in 26 USC 51 (d) (13), (f), (i), and (k) shall apply to the credit under this subsection.

AB68-SSA1,678,11 4. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of the wages under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. The partners, members, and shareholders may claim the credit in proportion to their ownership interests.

AB68-SSA1,678,13 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB68-SSA1,1331 Section 1331 . 71.07 (5) (a) 15. of the statutes is amended to read:

AB68-SSA1,678,20 71.07 (5) (a) 15. The amount claimed as a deduction for medical care insurance under section 213 of the Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 17. to 20 19., 35., 36., 37., 38., 39., 40., 41., and 42. and the amount claimed as a deduction for a long-term care insurance policy under section 213 (d) (1) (D) of the Internal Revenue Code, as defined in section 7702B (b) of the Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 26.

AB68-SSA1,1332 Section 1332 . 71.07 (5m) (a) 3. of the statutes is amended to read:

AB68-SSA1,678,23 71.07 (5m) (a) 3. “Household" means a claimant and an individual related to the claimant as husband or wife his or her spouse.

AB68-SSA1,1333 Section 1333. 71.07 (5n) (d) 2. of the statutes is amended to read:

AB68-SSA1,679,6 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.

AB68-SSA1,1334 Section 1334. 71.07 (5n) (d) 2m. of the statutes is created to read:

AB68-SSA1,679,12 71.07 (5n) (d) 2m. For taxable years beginning after December 31, 2020, for purposes of determining a claimant's eligible qualified production activities income from manufacturing under this subsection, the claimant shall multiply the claimant's qualified production activities income, not exceeding $300,000, from property manufactured by the claimant by the manufacturing property factor.

AB68-SSA1,1335 Section 1335 . 71.07 (6e) (a) 6. of the statutes is created to read:

AB68-SSA1,679,15 71.07 (6e) (a) 6. “Rent constituting property taxes" has the meaning given in sub. (9) (a) 4.

AB68-SSA1,1336 Section 1336. 71.07 (6e) (b) of the statutes is amended to read:

AB68-SSA1,679,24 71.07 (6e) (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 the amount of the claimant's property taxes or rent constituting property taxes. If the allowable amount of the claim exceeds the income taxes otherwise due on the claimant's income, the amount of the claim not used as an offset against those taxes shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft, or other draft from the appropriation under s. 20.835 (2) (em).

AB68-SSA1,1337 Section 1337. 71.07 (6e) (c) 3. of the statutes is amended to read:

AB68-SSA1,680,6 71.07 (6e) (c) 3. If an eligible veteran and an eligible spouse file separate returns, each spouse may claim a credit under this subsection for property taxes based on their respective ownership interest in the eligible veteran's principal dwelling or for rent constituting property taxes based on 50 percent of the total rent constituting property taxes paid during the taxable year for the eligible veteran's principal dwelling.

AB68-SSA1,1338 Section 1338 . 71.07 (6m) (c) 4. of the statutes is amended to read:

AB68-SSA1,680,9 71.07 (6m) (c) 4. No credit may be claimed under this subsection by an individual who claims the subtraction under s. 71.05 (6) (b) 34. or 34m.

AB68-SSA1,1339 Section 1339. 71.07 (8b) (a) 5. of the statutes is amended to read:

AB68-SSA1,680,15 71.07 (8b) (a) 5. “Credit period” means the period of 6 10 taxable years beginning with the taxable year in which a qualified development is placed in service. For purposes of this subdivision, if a qualified development consists of more than one building, the qualified development is placed in service in the taxable year in which the last building of the qualified development is placed in service.

AB68-SSA1,1340 Section 1340. 71.07 (8b) (a) 7. of the statutes is amended to read:

AB68-SSA1,681,2 71.07 (8b) (a) 7. “Qualified development” means a qualified low-income housing project under section 42 (g) of the Internal Revenue Code that is financed with tax-exempt bonds, pursuant to section 42 (i) (2) described in section 42 (h) (4) (A) of the Internal Revenue Code, allocated the credit under section 42 of the Internal Revenue Code, and located in this state; except that the authority may waive, in the qualified allocation plan under section 42 (m) (1) (B) of the Internal Revenue Code, the requirements of tax-exempt bond financing and federal credit allocation to the extent the authority anticipates that sufficient volume cap under section 146 of the Internal Revenue Code will not be available to finance low-income housing projects in any year.

AB68-SSA1,1341 Section 1341 . 71.07 (8m) of the statutes is created to read:

AB68-SSA1,681,5 71.07 (8m) Flood insurance premiums credit. (a) Definition. In this subsection:

AB68-SSA1,681,6 1. “Claimant" means an individual who files a claim under this subsection.

AB68-SSA1,681,8 2. “Flood insurance" means a flood insurance policy that covers the principal dwelling of the claimant.

AB68-SSA1,681,15 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2020, 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 10 percent of the amount of the premiums the claimant paid in the taxable year for flood insurance, but the amount of the credit may not exceed $60 in any taxable year, except that if the claimant is a married individual filing separately, the amount of the credit may not exceed $30 in any taxable year.

AB68-SSA1,681,17 (c) Limitations. 1. No credit may be claimed under this subsection by a part-year resident or a nonresident of this state.

AB68-SSA1,681,19 2. No credit may be allowed under this subsection unless it is claimed within the period specified in s. 71.75 (2).

AB68-SSA1,681,22 3. 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.

AB68-SSA1,681,24 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

AB68-SSA1,1342 Section 1342 . 71.07 (8p) of the statutes is created to read:

AB68-SSA1,682,1 71.07 (8p) Family caregiver tax credit. (a) Definitions. In this subsection:

AB68-SSA1,682,3 1. “Claimant" means an individual who files a claim under this subsection for amounts paid for qualified expenses to benefit a qualified family member.

AB68-SSA1,682,4 2. “Physician” has the meaning given in s. 36.60 (1) (b).

AB68-SSA1,682,7 3. “Qualified expenses” means amounts paid by a claimant in the year to which the claim relates for items that relate directly to the care or support of a qualified family member, including the following:

AB68-SSA1,682,9 a. The improvement or alteration of the claimant's primary residence to enable or assist the qualified family member to be mobile, safe, or independent.

AB68-SSA1,682,11 b. The purchase or lease of equipment to enable or assist the qualified family member to carry out one or more activities of daily living.

AB68-SSA1,682,15 c. The acquisition of goods or services, or support, to assist the claimant in caring for the qualified family member, including employing a home care aide or personal care attendant, adult day care, specialized transportation, legal or financial services, or assistive care technology.

AB68-SSA1,682,17 4. “Qualified family member” means an individual to whom all of the following apply:

AB68-SSA1,682,19 a. The individual is at least 18 years of age during the taxable year to which the claim relates.

AB68-SSA1,682,21 b. The individual requires assistance with one or more daily living activities, as certified in writing by a physician.

AB68-SSA1,682,22 c. The individual is the claimant's family member, as defined in s. 46.2805 (6m).

AB68-SSA1,683,2 (b) Filing claims. For taxable years beginning after December 31, 2020, 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, 50 percent of the claimant's qualified expenses.

AB68-SSA1,683,10 (c) Limitations. 1. Subject to subds. 2. and 3., the maximum credit that may be claimed under this subsection each taxable year with regard to a particular qualified family member is $500 or, if a claimant is married and filing a separate return, $250. If more than one individual may file a claim under this subsection for a particular qualified family member, the maximum credit specified in this subdivision shall be apportioned among all eligible claimants based on the ratio of their qualified expenses to the total amount of all qualified expenses incurred on behalf of that particular qualified family member, as determined by the department.

AB68-SSA1,683,16 2. If the claimant is married and filing jointly and the couple's federal adjusted gross income in the taxable year exceeds $170,000, no credit may be claimed under this subsection. If the claimant is married and filing jointly and the couple's federal adjusted gross income in the taxable year exceeds $150,000, but does not exceed $170,000, the credit claimed under this subsection may not exceed the amount determined as follows:

AB68-SSA1,683,18 a. Determine the amount allowed under par. (b) without regard to this subdivision but with regard to subd. 1.

AB68-SSA1,683,19 b. Subtract $150,000 from the couple's federal adjusted gross income.

AB68-SSA1,683,20 c. Divide the amount determined under subd. 2. b. by $20,000.

AB68-SSA1,683,22 d. Multiple the amount determined under subd. 2. a. by the amount determined under subd. 2. c.

AB68-SSA1,683,24 e. Subtract the amount determined under subd. 2. d. from the amount determined under subd. 2. a.

AB68-SSA1,684,7 3. If the claimant files as a single individual or head of household, or is married and files separately, and the claimant's federal adjusted gross income in the taxable year exceeds $85,000, no credit may be claimed under this subsection. If the claimant files as a single individual or head of household, or is married and files separately, and the claimant's federal adjusted gross income in the taxable year exceeds $75,000, but does not exceed $85,000, the credit claimed under this subsection may not exceed the amount determined as follows:

AB68-SSA1,684,9 a. Determine the amount allowed under par. (b) without regard to this subdivision but with regard to subd. 1.

AB68-SSA1,684,10 b. Subtract $75,000 from the claimant's federal adjusted gross income.

AB68-SSA1,684,11 c. Divide the amount determined under subd. 3. b. by $10,000.

AB68-SSA1,684,13 d. Multiple the amount determined under subd. 3. a. by the amount determined under subd. 3. c.

AB68-SSA1,684,15 e. Subtract the amount determined under subd. 3. d. from the amount determined under subd. 3. a.

AB68-SSA1,684,17 4. No credit may be allowed under this subsection unless it is claimed within the period specified under s. 71.75 (2).

AB68-SSA1,684,19 5. No credit may be claimed under this subsection by nonresidents or part-year residents of this state.

AB68-SSA1,684,20 6. Qualified expenses may not include any of the following:

AB68-SSA1,684,21 a. General food, clothing, or transportation expenses.

AB68-SSA1,684,23 b. Ordinary household maintenance or repair expenses that are not directly related or necessary for the care of the qualified family member.

AB68-SSA1,684,25 c. Any amount that is paid or reimbursed, or eligible to be reimbursed, by insurance or other means.

AB68-SSA1,685,3 7. 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.

AB68-SSA1,685,5 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

AB68-SSA1,1343 Section 1343. 71.07 (9e) (aj) (intro.) of the statutes is amended to read:

AB68-SSA1,685,11 71.07 (9e) (aj) (intro.) For taxable years beginning after December 31, 2010, and before January 1, 2021, 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:

AB68-SSA1,1344 Section 1344. 71.07 (9e) (ak) of the statutes is created to read:

AB68-SSA1,685,17 71.07 (9e) (ak) For taxable years beginning after December 31, 2020, 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:

AB68-SSA1,685,19 1. If the individual has one qualifying child who has the same principal place of abode as the individual, 16 percent.

AB68-SSA1,685,21 2. If the individual has 2 qualifying children who have the same principal place of abode as the individual, 25 percent.

AB68-SSA1,685,23 3. If the individual has 3 or more qualifying children who have the same principal place of abode as the individual, 34 percent.

AB68-SSA1,1345 Section 1345 . 71.07 (9e) (b) of the statutes is amended to read:

AB68-SSA1,686,4 71.07 (9e) (b) No credit may be allowed under this subsection to married persons, except married persons living apart who are treated as single under section 7703 (b) of the internal revenue code Internal Revenue Code, if the husband and wife spouses report their income on separate income tax returns for the taxable year.