AB68: Bill Text

AB68,1265 Section 1265. 71.05 (8) (a) of the statutes is amended to read:

AB68,845,4 71.05 (8) (a) The carry back of losses to reduce income of prior years may be permitted for 2 taxable years. There shall be added any amount deducted as a federal net operating loss carry-back or carry-over and there shall be subtracted for the first taxable year for which the subtraction may be made any Wisconsin net operating loss carry-back or carry-forward allowable under par. (b) in an amount not in excess of the Wisconsin taxable income computed before the deduction of the Wisconsin net operating loss carry-back or carry-forward.

AB68,1266 Section 1266. 71.05 (8) (b) 1. of the statutes is renumbered 71.05 (8) (b) and amended to read:

AB68,845,21 71.05 (8) (b) Except as provided in s. 71.80 (25), a Wisconsin net operating loss may be carried back against Wisconsin taxable income of the previous 2 years and then carried forward against Wisconsin taxable incomes of the next 20 taxable years, if the taxpayer was subject to taxation under this chapter in the taxable year in which the loss was incurred, to the extent not offset against other income of the year of loss and to the extent not offset against Wisconsin modified taxable income of the 2 years preceding the loss and of any year between the loss year and the taxable year for which the loss carry-forward is claimed. In this paragraph, “Wisconsin modified taxable income" means Wisconsin taxable income with the following exceptions: a net operating loss deduction or offset for the loss year or any taxable year before or thereafter is not allowed, the deduction for long-term capital gains under subs. (6) (b) 9. and 9m., (25), and (25m) is not allowed, the amount deductible for losses from sales or exchanges of capital assets may not exceed the amount includable in income for gains from sales or exchanges of capital assets and “Wisconsin modified taxable income" may not be less than zero.

AB68,1267 Section 1267. 71.05 (8) (b) 2. of the statutes is repealed.

AB68,1268 Section 1268. 71.05 (8) (c) of the statutes is repealed.

AB68,1269 Section 1269 . 71.05 (22) (a) (title) of the statutes is amended to read:

AB68,846,2 71.05 (22) (a) (title) Election of deductions; husband and wife spousal deductions.

AB68,1270 Section 1270. 71.07 (3q) (c) 1. of the statutes is renumbered 71.07 (3q) (c) 1. a. and amended to read:

AB68,846,13 71.07 (3q) (c) 1. a. Partnerships Except as provided in subd. 1. b., 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 amounts 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. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

AB68,1271 Section 1271. 71.07 (3q) (c) 1. b. of the statutes is created to read:

AB68,847,2 71.07 (3q) (c) 1. b. For taxable years beginning after December 31, 2021, 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.

AB68,1272 Section 1272. 71.07 (3w) (a) 1. of the statutes is renumbered 71.07 (3w) (a) 1. a. and amended to read:

AB68,847,7 71.07 (3w) (a) 1. a. “Base Except as provided in subd. 1. b., “base year" means the taxable year beginning during the calendar year prior to the calendar year in which the enterprise zone in which the claimant is located takes effect.

AB68,1273 Section 1273. 71.07 (3w) (a) 1. b. of the statutes is created to read:

AB68,847,12 71.07 (3w) (a) 1. b. For a claimant whose contract with the Wisconsin Economic Development Corporation under s. 238.399 is executed after December 31, 2021, “base year” means the 12-month period prior to the date on which the claimant was certified under s. 238.399 (5).

AB68,1274 Section 1274. 71.07 (3w) (a) 2m. of the statutes is created to read:

AB68,847,15 71.07 (3w) (a) 2m. “Contract” means the contract between the claimant and Wisconsin Economic Development Corporation under s. 238.399.

AB68,1275 Section 1275. 71.07 (3w) (a) 6. of the statutes is renumbered 71.07 (3w) (a) 6. a. and amended to read:

AB68,847,21 71.07 (3w) (a) 6. a. “Zone payroll" means the amount of state payroll that is attributable to wages paid to full-time employees for services that are performed in an enterprise zone. “Zone Except as provided in subd. 6. b., “zone payroll" does not include the amount of wages paid to any full-time employees that exceeds $100,000.

AB68,1276 Section 1276. 71.07 (3w) (a) 6. b. of the statutes is created to read:

AB68,847,25 71.07 (3w) (a) 6. b. For a claimant whose contract is executed after December 31, 2021, “zone payroll" does not include the amount of wages paid to any full-time employees that exceeds $123,000.

AB68,1277 Section 1277. 71.07 (3w) (b) (intro.) of the statutes is amended to read:

AB68,848,5 71.07 (3w) (b) Filing claims under pre-2022 contracts; payroll. (intro.) Subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant whose contract is executed prior to January 1, 2022, may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount calculated as follows:

AB68,1278 Section 1278. 71.07 (3w) (bd) of the statutes is created to read:

AB68,848,10 71.07 (3w) (bd) Filing claims under post-2021 contracts; payroll. Subject to the limitations provided in this subsection and s. 238.399, a claimant whose contract is executed after December 31, 2021, may claim as a credit against the tax imposed under s. 71.02 an amount calculated as follows:

AB68,848,11 1. Determine the amount that is the lesser of:

AB68,848,18 a. The number of full-time employees whose annual wages are greater than $27,900 in a tier I county or municipality or greater than $37,000 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year, minus the number of full-time employees whose annual wages were greater than $27,900 in a tier I county or municipality or greater than $37,000 in a tier II county or municipality and who the claimant employed in the area that comprises the enterprise zone in the base year.

AB68,848,24 b. The number of full-time employees whose annual wages are greater than $27,900 in a tier I county or municipality or greater than $37,000 in a tier II county or municipality and who the claimant employed in the state in the taxable year, minus the number of full-time employees whose annual wages were greater than $27,900 in a tier I county or municipality or greater than $37,000 in a tier II county or municipality and who the claimant employed in the state in the base year.

AB68,849,7 2. Determine the claimant's average zone payroll by dividing total wages for full-time employees whose annual wages are greater than $27,900 in a tier I county or municipality or greater than $37,000 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year by the number of full-time employees whose annual wages are greater than $27,900 in a tier I county or municipality or greater than $37,000 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year.

AB68,849,10 3. For employees in a tier I county or municipality, subtract $27,900 from the amount determined under subd. 2. and for employees in a tier II county or municipality, subtract $37,000 from the amount determined under subd. 2.

AB68,849,12 4. Multiply the amount determined under subd. 3. by the amount determined under subd. 1.

AB68,849,14 5. Multiply the amount determined under subd. 4. by the percentage determined by under s. 238.399, not to exceed 7 percent.

AB68,1279 Section 1279. 71.07 (3w) (bm) 1. of the statutes is amended to read:

AB68,850,2 71.07 (3w) (bm) 1. In addition to the credits under par. pars. (b) and (bd) and subds. 2., 3., and 4. to 5., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount equal to a percentage, as determined under s. 238.399 or s. 560.799, 2009 stats., not to exceed 100 percent, of the amount the claimant paid in the taxable year to upgrade or improve the job-related skills of any of the claimant's full-time employees, to train any of the claimant's full-time employees on the use of job-related new technologies, or to provide job-related training to any full-time employee whose employment with the claimant represents the employee's first full-time job. This subdivision does not apply to employees who do not work in an enterprise zone.

AB68,1280 Section 1280. 71.07 (3w) (bm) 2. of the statutes is renumbered 71.07 (3w) (bm) 2. (intro.) and amended to read:

AB68,850,8 71.07 (3w) (bm) 2. (intro.) In addition to the credits under par. pars. (b) and (bd) and subds. 1., 3., and 4., and 5., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 one of the following amounts:

AB68,850,20 a. For a claimant whose contract is executed prior to January 1, 2022, an amount equal to the percentage, as determined under s. 238.399 or s. 560.799, 2009 stats., not to exceed 7 percent, of the claimant's zone payroll paid in the taxable year to all of the claimant's full-time employees whose annual wages are greater than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality, not including the wages paid to the employees determined under par. (b) 1., or greater than $30,000 in a tier II county or municipality, not including the wages paid to the employees determined under par. (b) 1., and who the claimant employed in the enterprise zone in the taxable year, if the total number of such employees is equal to or greater than the total number of such employees in the base year. A claimant may claim a credit under this subdivision for no more than 5 consecutive taxable years.

AB68,1281 Section 1281. 71.07 (3w) (bm) 2. b. of the statutes is created to read:

AB68,851,6 71.07 (3w) (bm) 2. b. For a claimant whose contract is executed after December 31, 2021, an amount equal to the percentage, as determined under s. 238.399, not to exceed 7 percent, of the claimant's zone payroll paid in the taxable year to all of the claimant's full-time employees whose annual wages are greater than $27,900 in a tier I county or municipality, not including the wages paid to the employees determined under par. (bd) 1., or greater than $37,000 in a tier II county or municipality, not including the wages paid to the employees determined under par. (bd) 1., and who the claimant employed in the enterprise zone in the taxable year, if the total number of such employees is equal to or greater than the total number of such employees in the base year.

AB68,1282 Section 1282. 71.07 (3w) (bm) 3. of the statutes is amended to read:

AB68,851,13 71.07 (3w) (bm) 3. In addition to the credits under par. pars. (b) and (bd) and subds. 1., 2., and 4., and 5., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 up to 10 percent of the claimant's significant capital expenditures, as determined under s. 238.399 (5m) or s. 560.799 (5m), 2009 stats.

AB68,1283 Section 1283. 71.07 (3w) (bm) 4. of the statutes is amended to read:

AB68,851,23 71.07 (3w) (bm) 4. In addition to the credits under par. pars. (b) and (bd) and subds. 1., 2., and 3., and 5., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., for taxable years beginning after December 31, 2009, a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08, up to 1 percent of the amount that the claimant paid in the taxable year to purchase tangible personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services from Wisconsin vendors, as determined under s. 238.399 (5) (e) or s. 560.799 (5) (e), 2009 stats., except that the claimant may not claim the credit under this subdivision and subd. 3. for the same expenditures.

AB68,1284 Section 1284. 71.07 (3w) (bm) 5. of the statutes is renumbered 71.07 (3w) (bm) 5. (intro.) and amended to read:

AB68,852,7 71.07 (3w) (bm) 5. (intro.) In addition to the credits under par. pars. (b) and (bd) and subds. 1. to 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant that has retained the minimum number of full-time employees determined under s. 238.399 (5) (f) and maintained average zone payroll for the taxable year equal to or greater than the base year may claim as a credit against the tax imposed under s. 71.02 or 71.08 one of the following amounts:

AB68,852,17 a. For a claimant whose contract is executed prior to January 1, 2022, an amount equal to the percentage, as determined by the Wisconsin Economic Development Corporation, of the claimant's zone payroll paid in the 12 months prior to the certification date to the claimant's full-time employees in the enterprise zone whose annual wages are greater than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality or greater than $30,000 in a tier II county or municipality. The amount that the claimant may claim as credit under this subdivision for a taxable year shall not exceed $2,000,000. A claimant may claim a credit under this subdivision for no more than 5 consecutive taxable years.

AB68,1285 Section 1285. 71.07 (3w) (bm) 5. b. of the statutes is created to read:

AB68,852,24 71.07 (3w) (bm) 5. b. For a claimant whose contract is executed after December 31, 2021, an amount equal to the percentage, as determined by the Wisconsin Economic Development Corporation, of the claimant's zone payroll paid in the 12 months prior to the certification date to the claimant's full-time employees in the enterprise zone whose annual wages are greater than $27,900 in a tier I county or municipality or greater than $37,000 in a tier II county or municipality.

AB68,1286 Section 1286. 71.07 (3w) (c) 2. of the statutes is renumbered 71.07 (3w) (c) 2. a. and amended to read:

AB68,853,11 71.07 (3w) (c) 2. a. Partnerships Except as provided in subd. 2. b., 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 amounts described under pars. (b) and (bm). 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. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

AB68,1287 Section 1287. 71.07 (3w) (c) 2. b. of the statutes is created to read:

AB68,853,25 71.07 (3w) (c) 2. b. For taxable years beginning after December 31, 2021, 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. 2. 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. 2. 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. 2. b.

AB68,1288 Section 1288. 71.07 (3w) (c) 5. of the statutes is created to read:

AB68,854,3 71.07 (3w) (c) 5. A claimant may claim a credit under par. (bm) 2. for no more than 5 consecutive taxable years.

AB68,1289 Section 1289. 71.07 (3w) (c) 6. of the statutes is created to read:

AB68,854,7 71.07 (3w) (c) 6. The amount that the claimant may claim as credit under par. (bm) 5. for a taxable year may not exceed $2,000,000. A claimant may claim a credit under par. (bm) 5. for no more than 5 consecutive taxable years.

AB68,1290 Section 1290. 71.07 (3w) (cm) of the statutes is created to read:

AB68,854,19 71.07 (3w) (cm) Inflation adjustments. For taxable years beginning after December 31, 2022, the dollar amounts in pars. (a) 6. b., (bd) 1. a. and b., 2., and 3., and (bm) 2. b. and 5. b. shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the year before the previous year, as determined by the federal department of labor. Each amount that is revised under this paragraph shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10.

AB68,1291 Section 1291. 71.07 (3y) (b) 5. of the statutes is amended to read:

AB68,855,2 71.07 (3y) (b) 5. An amount, as determined by the Wisconsin Economic Development Corporation under s. 238.308 (4) (a) 5., equal to a percentage of the amount of wages that the claimant paid to an eligible employee in the taxable year if the position in which the eligible employee was employed was created or retained in connection with the claimant's location or retention of the claimant's corporate headquarters in Wisconsin and the job duties associated with the eligible employee's position involve the performance of corporate headquarters functions.

AB68,1292 Section 1292. 71.07 (3y) (b) 6. of the statutes is created to read:

AB68,855,7 71.07 (3y) (b) 6. An amount, as determined by the Wisconsin Economic Development Corporation under s. 238.308 (4) (a) 6., equal to a percentage, not to exceed 25 percent, of the claimant's energy efficiency or renewable energy project expenditures on real or personal property located in this state.

AB68,1293 Section 1293. 71.07 (3y) (c) 1. of the statutes is renumbered 71.07 (3y) (c) 1. a. and amended to read:

AB68,855,18 71.07 (3y) (c) 1. a. Partnerships Except as provided in subd. 1. b., 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 amounts 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. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

AB68,1294 Section 1294. 71.07 (3y) (c) 1. b. of the statutes is created to read:

AB68,856,7 71.07 (3y) (c) 1. b. For taxable years beginning after December 31, 2021, 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.

AB68,1295 Section 1295. 71.07 (4k) (e) 2. a. of the statutes is amended to read:

AB68,856,18 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).

AB68,1296 Section 1296 . 71.07 (4t) of the statutes is created to read:

AB68,856,20 71.07 (4t) Work opportunity tax credit. (a) Definitions. In this subsection:

AB68,856,22 1. “Claimant” means a person who is an employer of a targeted group member and who files a claim under this subsection.

AB68,856,24 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).

AB68,857,3 (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:

AB68,857,6 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.

AB68,857,10 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.

AB68,857,14 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.

AB68,857,17 (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.

AB68,857,19 2. A credit under this subsection shall be claimed at the same time as the credit under 26 USC 51.

AB68,857,21 3. The requirements and limitations in 26 USC 51 (d) (13), (f), (i), and (k) shall apply to the credit under this subsection.

AB68,858,3 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.

AB68,858,5 (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.

AB68,1297 Section 1297 . 71.07 (5) (a) 15. of the statutes is amended to read:

AB68,858,12 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.

AB68,1298 Section 1298 . 71.07 (5m) (a) 3. of the statutes is amended to read:

AB68,858,15 71.07 (5m) (a) 3. “Household" means a claimant and an individual related to the claimant as husband or wife his or her spouse.

AB68,1299 Section 1299. 71.07 (5n) (d) 2. of the statutes is amended to read:

AB68,858,22 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.

AB68,1300 Section 1300. 71.07 (5n) (d) 2m. of the statutes is created to read: