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AB68-SSA1,683,2221 d. Multiple the amount determined under subd. 2. a. by the amount determined
22under subd. 2. c.
AB68-SSA1,683,2423 e. Subtract the amount determined under subd. 2. d. from the amount
24determined under subd. 2. a.
AB68-SSA1,684,7
13. If the claimant files as a single individual or head of household, or is married
2and files separately, and the claimant's federal adjusted gross income in the taxable
3year exceeds $85,000, no credit may be claimed under this subsection. If the claimant
4files as a single individual or head of household, or is married and files separately,
5and the claimant's federal adjusted gross income in the taxable year exceeds $75,000,
6but does not exceed $85,000, the credit claimed under this subsection may not exceed
7the amount determined as follows:
AB68-SSA1,684,98 a. Determine the amount allowed under par. (b) without regard to this
9subdivision but with regard to subd. 1.
AB68-SSA1,684,1010 b. Subtract $75,000 from the claimant's federal adjusted gross income.
AB68-SSA1,684,1111 c. Divide the amount determined under subd. 3. b. by $10,000.
AB68-SSA1,684,1312 d. Multiple the amount determined under subd. 3. a. by the amount determined
13under subd. 3. c.
AB68-SSA1,684,1514 e. Subtract the amount determined under subd. 3. d. from the amount
15determined under subd. 3. a.
AB68-SSA1,684,1716 4. No credit may be allowed under this subsection unless it is claimed within
17the period specified under s. 71.75 (2).
AB68-SSA1,684,1918 5. No credit may be claimed under this subsection by nonresidents or part-year
19residents of this state.
AB68-SSA1,684,2020 6. Qualified expenses may not include any of the following:
AB68-SSA1,684,2121 a. General food, clothing, or transportation expenses.
AB68-SSA1,684,2322 b. Ordinary household maintenance or repair expenses that are not directly
23related or necessary for the care of the qualified family member.
AB68-SSA1,684,2524 c. Any amount that is paid or reimbursed, or eligible to be reimbursed, by
25insurance or other means.
AB68-SSA1,685,3
17. No credit may be allowed under this subsection for a taxable year covering
2a period of less than 12 months, except for a taxable year closed by reason of the death
3of the taxpayer.
AB68-SSA1,685,54 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit
5under that subsection, applies to the credit under this subsection.
AB68-SSA1,1343 6Section 1343. 71.07 (9e) (aj) (intro.) of the statutes is amended to read:
AB68-SSA1,685,117 71.07 (9e) (aj) (intro.) For taxable years beginning after December 31, 2010,
8and before January 1, 2021, an individual may credit against the tax imposed under
9s. 71.02 an amount equal to one of the following percentages of the federal basic
10earned income credit for which the person is eligible for the taxable year under
11section 32 (b) (1) (A) to (C) of the Internal Revenue Code:
AB68-SSA1,1344 12Section 1344. 71.07 (9e) (ak) of the statutes is created to read:
AB68-SSA1,685,1713 71.07 (9e) (ak) For taxable years beginning after December 31, 2020, an
14individual may credit against the tax imposed under s. 71.02 an amount equal to one
15of the following percentages of the federal basic earned income credit for which the
16individual is eligible for the taxable year under section 32 (b) (1) of the Internal
17Revenue Code:
AB68-SSA1,685,1918 1. If the individual has one qualifying child who has the same principal place
19of abode as the individual, 16 percent.
AB68-SSA1,685,2120 2. If the individual has 2 qualifying children who have the same principal place
21of abode as the individual, 25 percent.
AB68-SSA1,685,2322 3. If the individual has 3 or more qualifying children who have the same
23principal place of abode as the individual, 34 percent.
AB68-SSA1,1345 24Section 1345 . 71.07 (9e) (b) of the statutes is amended to read:
AB68-SSA1,686,4
171.07 (9e) (b) No credit may be allowed under this subsection to married
2persons, except married persons living apart who are treated as single under section
37703 (b) of the internal revenue code Internal Revenue Code, if the husband and wife
4spouses report their income on separate income tax returns for the taxable year.
AB68-SSA1,1346 5Section 1346 . 71.07 (9g) of the statutes is created to read:
AB68-SSA1,686,76 71.07 (9g) Additional child and dependent care tax credit. (a) Definitions.
7In this subsection:
AB68-SSA1,686,108 1. “Claimant" means an individual who is eligible for and claims the federal
9child and dependent care tax credit for the taxable year to which the claim under this
10subsection relates.
AB68-SSA1,686,1211 2. “Federal child and dependent care tax credit” means the tax credit under 26
12USC section 21
.
AB68-SSA1,686,1713 (b) Filing claims. Subject to the limitations provided in this subsection, a
14claimant may claim as a credit against the tax imposed under s. 71.02, up to the
15amount of those taxes, an amount equal to 50 percent of the federal child and
16dependent care tax credit claimed by the claimant on his or her federal income tax
17return for the taxable year to which the claim under this subsection relates.
AB68-SSA1,686,1918 (c) Limitations. 1. No credit may be allowed under this subsection unless it
19is claimed within the period under s. 71.75 (2).
AB68-SSA1,686,2220 2. No credit may be allowed under this subsection for a taxable year covering
21a period of less than 12 months, except for a taxable year closed by reason of the death
22of the claimant.
AB68-SSA1,686,2423 3. The credit under this subsection may not be claimed by a part-year resident
24or a nonresident of this state.
AB68-SSA1,687,2
14. A claimant who claims the credit under this subsection is subject to the
2special rules in 26 USC 21 (e) (2) and (4).
AB68-SSA1,687,43 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit
4under that subsection, applies to the credit under this subsection.
AB68-SSA1,1347 5Section 1347 . 71.09 (13) (a) 2. of the statutes is amended to read:
AB68-SSA1,687,136 71.09 (13) (a) 2. The tax shown on the return for the preceding year. If a
7husband and wife
spouses who filed separate returns for the preceding taxable year
8file a joint return, the tax shown on the return for the preceding year is the sum of
9the taxes shown on the separate returns of the husband and wife spouses. If a
10husband and wife
spouses who filed a joint return for the preceding taxable year file
11separate returns, the tax shown on the return for the preceding year is the husband's
12or wife's
each spouse's proportion of that tax based on what their respective tax
13liabilities for that year would have been had they filed separately.
AB68-SSA1,1348 14Section 1348 . 71.10 (4) (cs) of the statutes is created to read:
AB68-SSA1,687,1515 71.10 (4) (cs) Additional child and dependent care tax credit under s. 71.07 (9g).
AB68-SSA1,1349 16Section 1349 . 71.10 (4) (ct) of the statutes is created to read:
AB68-SSA1,687,1717 71.10 (4) (ct) Work opportunity tax credit under s. 71.07 (4t).
AB68-SSA1,1350 18Section 1350 . 71.10 (4) (ha) of the statutes is created to read:
AB68-SSA1,687,1919 71.10 (4) (ha) Flood insurance premiums credit under s. 71.07 (8m).
AB68-SSA1,1351 20Section 1351 . 71.10 (4) (hd) of the statutes is created to read:
AB68-SSA1,687,2121 71.10 (4) (hd) Family caregiver tax credit under s. 71.07 (8p).
AB68-SSA1,1352 22Section 1352 . 71.10 (4) (k) of the statutes is created to read:
AB68-SSA1,687,2323 71.10 (4) (k) Any amount computed under s. 71.83 (1) (ch).
AB68-SSA1,1353 24Section 1353 . 71.10 (10) of the statutes is created to read:
AB68-SSA1,688,2
171.10 (10) First-time homebuyer savings accounts. (a) Definitions. In this
2subsection:
AB68-SSA1,688,43 1. “Account holder” means an individual who creates, individually or jointly
4with his or her spouse, an account under par. (b) 1.
AB68-SSA1,688,65 2. “Allowable closing costs” means disbursements listed in a settlement
6statement for the purchase of a single-family residence by a beneficiary.
AB68-SSA1,688,87 3. “Beneficiary" means a first-time homebuyer who is designated by an account
8holder as the beneficiary of an account created under par. (b) 1.
AB68-SSA1,688,109 4. “Eligible costs” means the down payment and allowable closing costs for the
10purchase of a single-family residence in this state by a beneficiary.
AB68-SSA1,688,1511 5. “Financial institution" means a bank, trust company, savings institution,
12savings bank, savings and loan association, industrial loan association, consumer
13finance company, credit union, or a benefit association, insurance company, safe
14deposit company, money market mutual fund, or similar entity authorized to do
15business in this state.
AB68-SSA1,688,1916 6. “First-time homebuyer” means an individual who resides in this state and
17did not have, either individually or jointly, a present ownership interest in a
18single-family residence during the 36 months before the month in which the
19individual purchases a single-family residence in this state.
AB68-SSA1,688,2220 7. “Single-family residence” means a residence intended for occupation by a
21single family unit that is purchased by a beneficiary for use as his or her principal
22residence.
AB68-SSA1,689,623 (b) Creation of account. 1. An individual may create an account and become
24the account holder by opening an account at a financial institution for the purpose
25of paying or reimbursing the eligible costs of a first-time homebuyer. The account

1holder shall designate a beneficiary when the account is created and may designate
2himself or herself as the beneficiary. An account may have only one beneficiary at
3any one time. An individual may be the beneficiary of more than one account, and
4an individual may be the account holder of more than one account, but an account
5holder may not have more than one account that designates the same beneficiary.
6The account holder may change the beneficiary at any time.
AB68-SSA1,689,87 2. An individual may jointly own an account created under subd. 1 with his or
8her spouse.
AB68-SSA1,689,109 3. Only cash and marketable securities may be contributed to an account
10created under subd. 1.
AB68-SSA1,689,1311 4. Persons other than an account holder may contribute to an account created
12under subd. 1, but the subtraction under s. 71.05 (6) (b) 55. may be made only by the
13account holder.
AB68-SSA1,689,1714 (c) Account holder rights and responsibilities. 1. An account holder may
15withdraw funds from an account created under par. (b) 1. to pay eligible costs for the
16benefit of the beneficiary or to reimburse the beneficiary for eligible costs the
17beneficiary incurs and has paid.
AB68-SSA1,689,2018 2. An account holder may not use funds in an account created under par. (b) 1.
19to pay any expenses he or she incurs in administering the account, although a
20financial institution may deduct a service fee from the account.
AB68-SSA1,689,2421 3. Annually, an account holder shall submit to the department with his or her
22income tax return, on forms prepared by the department, information regarding the
23account created under par. (b) 1. The information submitted shall include all of the
24following:
AB68-SSA1,690,2
1a. A list of transactions in the account during the taxable year to which the
2return relates, including the beginning and ending balances of the account.
AB68-SSA1,690,33 b. The 1099 form issued by the financial institution that relates to the account.
AB68-SSA1,690,54 c. A list of eligible costs, and other costs, for which funds from the account were
5withdrawn during the taxable year to which the return relates.
AB68-SSA1,690,106 4. An account holder may withdraw funds from an account created under par.
7(b) 1. with no penalty due under s. 71.83 (1) (ch) and no responsibility to make an
8addition under s. 71.05 (6) (a) 30. if he or she immediately transfers the funds to a
9different financial institution and deposits the funds into an account created under
10par. (b) 1. at that financial institution.
AB68-SSA1,690,1311 (d) Limitations on accounts, dissolution. 1. An account holder may not claim
12a subtraction under s. 71.05 (6) (b) 55. for more than a total of $50,000 of deposits into
13any account created under par. (b) 1. for each beneficiary.
AB68-SSA1,690,1614 2. An account holder shall dissolve an account created under par. (b) 1. no later
15than 120 months after it is created. The financial institution shall distribute any
16funds in the account at dissolution to the account holder.
AB68-SSA1,690,1917 3. If an account holder dies while funds remain in an account created under par.
18(b) 1., the account shall be dissolved and the financial institution shall distribute the
19funds to the account holder's estate.
AB68-SSA1,690,2020 (e) Department responsibilities. The department shall:
AB68-SSA1,690,2321 1. Prepare and distribute any forms that an account holder is required to
22submit under par. (c) 3. and any other forms necessary to administer this subsection
23and the adjustments to income under s. 71.05 (6) (a) 30. and (b) 55.
AB68-SSA1,690,2524 2. Prepare and distribute to financial institutions and potential homebuyers
25informational materials about the accounts described in this subsection.
AB68-SSA1,1354
1Section 1354. 71.125 (1) of the statutes is amended to read:
AB68-SSA1,691,52 71.125 (1) Except as provided in sub. (2), the tax imposed by this chapter on
3individuals and the rates under s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2) shall
4apply to the Wisconsin taxable income of estates or trusts, except nuclear
5decommissioning trust or reserve funds, and that tax shall be paid by the fiduciary.
AB68-SSA1,1355 6Section 1355. 71.125 (2) of the statutes is amended to read:
AB68-SSA1,691,117 71.125 (2) Each electing small business trust, as defined in section 1361 (e) (1)
8of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1),
9(1m), (1n), (1p), or (1q), or (1r), whichever taxable year is applicable, on its income
10as computed under section 641 of the Internal Revenue Code, as modified by s. 71.05
11(6) to (12), (19) and (20).
AB68-SSA1,1356 12Section 1356. 71.17 (6) of the statutes is amended to read:
AB68-SSA1,691,1613 71.17 (6) Funeral trusts. If a qualified funeral trust makes the election under
14section 685 of the Internal Revenue Code for federal income tax purposes, that
15election applies for purposes of this chapter and each trust shall compute its own tax
16and shall apply the rates under s. 71.06 (1), (1m), (1n), (1p), or (1q), or (1r).”.
AB68-SSA1,1357 17Section 1357. 71.26 (3) (j) of the statutes is amended to read:
AB68-SSA1,692,218 71.26 (3) (j) Sections 243, 244, 245, 245A, 246 and 246A are excluded and
19replaced by the rule that corporations may deduct from income dividends received
20from a corporation with respect to its common stock if the corporation receiving the
21dividends owns, directly or indirectly, during the entire taxable year at least 70
22percent of the total combined voting stock of the payor corporation. In this
23paragraph, “dividends received" means gross dividends minus taxes on those
24dividends paid to a foreign nation and claimed as a deduction under this chapter. The

1same dividends may not be deducted more than once and may not be used in the
2determination of a net business loss under ss. 71.26 (4) and 71.45 (4)
.
AB68-SSA1,1358 3Section 1358. 71.26 (4) (a) of the statutes is amended to read:
AB68-SSA1,692,214 71.26 (4) (a) Except as provided in par. (b) and s. 71.80 (25), a corporation,
5except a tax-option corporation or an insurer to which s. 71.45 (4) applies, may offset
6against its Wisconsin net business income any Wisconsin net business loss incurred
7in any of the 20 immediately preceding taxable years, if the corporation was subject
8to taxation under this chapter in the taxable year in which the loss was incurred, to
9the extent not offset by other items of Wisconsin income in the loss year and by
10Wisconsin net business income of any year between the loss year and the taxable year
11for which an offset is claimed. For purposes of this subsection, Wisconsin net
12business income or loss shall consist of all the income attributable to the operation
13of a trade or business in this state, less the business expenses allowed as deductions
14in computing net income, except that the dividends received deduction under sub. (3)
15(j) may not be used in the determination of a net business loss
. The Wisconsin net
16business income or loss of corporations engaged in business within and without the
17state shall be determined under s. 71.25 (6) and (10) to (12). Nonapportionable losses
18having a Wisconsin situs under s. 71.25 (5) (b) shall be included in Wisconsin net
19business loss; and nonapportionable income having a Wisconsin situs under s. 71.25
20(5) (b), whether taxable or exempt, shall be included in other items of Wisconsin
21income and Wisconsin net business income for purposes of this subsection.
AB68-SSA1,1359 22Section 1359. 71.28 (3q) (c) 1. of the statutes is renumbered 71.28 (3q) (c) 1.
23a. and amended to read:
AB68-SSA1,693,724 71.28 (3q) (c) 1. a. Partnerships Except as provided in subd. 1. b., partnerships,
25limited liability companies, and tax-option corporations may not claim the credit

1under this subsection, but the eligibility for, and the amount of, the credit are based
2on their payment of amounts under par. (b). A partnership, limited liability company,
3or tax-option corporation shall compute the amount of credit that each of its
4partners, members, or shareholders may claim and shall provide that information
5to each of them. Partners, members of limited liability companies, and shareholders
6of tax-option corporations may claim the credit in proportion to their ownership
7interests.
AB68-SSA1,1360 8Section 1360. 71.28 (3q) (c) 1. b. of the statutes is created to read:
AB68-SSA1,693,219 71.28 (3q) (c) 1. b. For taxable years beginning after December 31, 2020,
10partnerships, limited liability companies, and tax-option corporations may elect to
11claim the credit under this subsection, if the credit results from a contract entered
12into with the Wisconsin Economic Development Corporation before December 22,
132017. A partnership, limited liability company, or tax-option corporation that
14wishes to make the election under this subd. 1. b. shall make the election for each
15taxable year on its original return and may not subsequently make or revoke the
16election. If a partnership, limited liability company, or tax-option corporation elects
17to claim the credit under this subsection, the partners, members, and shareholders
18may not claim the credit under this subsection. The credit may not be claimed under
19this subd. 1. b. if one or more partners, members, or shareholders have claimed the
20credit under this subsection for the same taxable year for which the credit is claimed
21under this subd. 1. b.
AB68-SSA1,1361 22Section 1361. 71.28 (3w) (a) 1. of the statutes is renumbered 71.28 (3w) (a) 1.
23a. and amended to read:
AB68-SSA1,694,3
171.28 (3w) (a) 1. a. “Base Except as provided in subd. 1. b., “base year" means
2the taxable year beginning during the calendar year prior to the calendar year in
3which the enterprise zone in which the claimant is located takes effect.
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