AB68: Bill Text

AB68,865,13 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.

AB68,1311 Section 1311 . 71.07 (9g) of the statutes is created to read:

AB68,865,16 71.07 (9g) Additional child and dependent care tax credit. (a) Definitions. In this subsection:

AB68,865,19 1. “Claimant" means an individual who is eligible for and claims the federal child and dependent care tax credit for the taxable year to which the claim under this subsection relates.

AB68,865,21 2. “Federal child and dependent care tax credit” means the tax credit under 26 USC section 21.

AB68,866,2 (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 federal child and dependent care tax credit claimed by the claimant on his or her federal income tax return for the taxable year to which the claim under this subsection relates.

AB68,866,4 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the period under s. 71.75 (2).

AB68,866,7 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 claimant.

AB68,866,9 3. The credit under this subsection may not be claimed by a part-year resident or a nonresident of this state.

AB68,866,11 4. A claimant who claims the credit under this subsection is subject to the special rules in 26 USC 21 (e) (2) and (4).

AB68,866,13 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

AB68,1312 Section 1312 . 71.09 (13) (a) 2. of the statutes is amended to read:

AB68,866,22 71.09 (13) (a) 2. The tax shown on the return for the preceding year. If a husband and wife spouses who filed separate returns for the preceding taxable year file a joint return, the tax shown on the return for the preceding year is the sum of the taxes shown on the separate returns of the husband and wife spouses. If a husband and wife spouses who filed a joint return for the preceding taxable year file separate returns, the tax shown on the return for the preceding year is the husband's or wife's each spouse's proportion of that tax based on what their respective tax liabilities for that year would have been had they filed separately.

AB68,1313 Section 1313 . 71.10 (4) (cs) of the statutes is created to read:

AB68,866,24 71.10 (4) (cs) Additional child and dependent care tax credit under s. 71.07 (9g).

AB68,1314 Section 1314 . 71.10 (4) (ct) of the statutes is created to read:

AB68,867,1 71.10 (4) (ct) Work opportunity tax credit under s. 71.07 (4t).

AB68,1315 Section 1315 . 71.10 (4) (ha) of the statutes is created to read:

AB68,867,3 71.10 (4) (ha) Flood insurance premiums credit under s. 71.07 (8m).

AB68,1316 Section 1316 . 71.10 (4) (hd) of the statutes is created to read:

AB68,867,5 71.10 (4) (hd) Family caregiver tax credit under s. 71.07 (8p).

AB68,1317 Section 1317 . 71.10 (4) (k) of the statutes is created to read:

AB68,867,7 71.10 (4) (k) Any amount computed under s. 71.83 (1) (ch).

AB68,1318 Section 1318 . 71.10 (10) of the statutes is created to read:

AB68,867,10 71.10 (10) First-time homebuyer savings accounts. (a) Definitions. In this subsection:

AB68,867,12 1. “Account holder” means an individual who creates, individually or jointly with his or her spouse, an account under par. (b) 1.

AB68,867,14 2. “Allowable closing costs” means disbursements listed in a settlement statement for the purchase of a single-family residence by a beneficiary.

AB68,867,16 3. “Beneficiary" means a first-time homebuyer who is designated by an account holder as the beneficiary of an account created under par. (b) 1.

AB68,867,18 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.

AB68,867,23 5. “Financial institution" means a bank, trust company, savings institution, savings bank, savings and loan association, industrial loan association, consumer finance company, credit union, or a benefit association, insurance company, safe deposit company, money market mutual fund, or similar entity authorized to do business in this state.

AB68,868,2 6. “First-time homebuyer” means an individual who resides in this state and did not have, either individually or jointly, a present ownership interest in a single-family residence during the 36 months before the month in which the individual purchases a single-family residence in this state.

AB68,868,5 7. “Single-family residence” means a residence intended for occupation by a single family unit that is purchased by a beneficiary for use as his or her principal residence.

AB68,868,14 (b) Creation of account. 1. An individual may create an account and become the account holder by opening an account at a financial institution for the purpose of paying or reimbursing the eligible costs of a first-time homebuyer. The account holder shall designate a beneficiary when the account is created and may designate himself or herself as the beneficiary. An account may have only one beneficiary at any one time. An individual may be the beneficiary of more than one account, and an individual may be the account holder of more than one account, but an account holder may not have more than one account that designates the same beneficiary. The account holder may change the beneficiary at any time.

AB68,868,16 2. An individual may jointly own an account created under subd. 1 with his or her spouse.

AB68,868,18 3. Only cash and marketable securities may be contributed to an account created under subd. 1.

AB68,868,21 4. Persons other than an account holder may contribute to an account created under subd. 1, but the subtraction under s. 71.05 (6) (b) 55. may be made only by the account holder.

AB68,868,25 (c) Account holder rights and responsibilities. 1. An account holder may withdraw funds from an account created under par. (b) 1. to pay eligible costs for the benefit of the beneficiary or to reimburse the beneficiary for eligible costs the beneficiary incurs and has paid.

AB68,869,3 2. An account holder may not use funds in an account created under par. (b) 1. to pay any expenses he or she incurs in administering the account, although a financial institution may deduct a service fee from the account.

AB68,869,7 3. Annually, an account holder shall submit to the department with his or her income tax return, on forms prepared by the department, information regarding the account created under par. (b) 1. The information submitted shall include all of the following:

AB68,869,9 a. A list of transactions in the account during the taxable year to which the return relates, including the beginning and ending balances of the account.

AB68,869,10 b. The 1099 form issued by the financial institution that relates to the account.

AB68,869,12 c. A list of eligible costs, and other costs, for which funds from the account were withdrawn during the taxable year to which the return relates.

AB68,869,17 4. An account holder may withdraw funds from an account created under par. (b) 1. with no penalty due under s. 71.83 (1) (ch) and no responsibility to make an addition under s. 71.05 (6) (a) 30. if he or she immediately transfers the funds to a different financial institution and deposits the funds into an account created under par. (b) 1. at that financial institution.

AB68,869,20 (d) Limitations on accounts, dissolution. 1. An account holder may not claim a subtraction under s. 71.05 (6) (b) 55. for more than a total of $50,000 of deposits into any account created under par. (b) 1. for each beneficiary.

AB68,869,23 2. An account holder shall dissolve an account created under par. (b) 1. no later than 120 months after it is created. The financial institution shall distribute any funds in the account at dissolution to the account holder.

AB68,870,3 3. If an account holder dies while funds remain in an account created under par. (b) 1., the account shall be dissolved and the financial institution shall distribute the funds to the account holder's estate.

AB68,870,4 (e) Department responsibilities. The department shall:

AB68,870,7 1. Prepare and distribute any forms that an account holder is required to submit under par. (c) 3. and any other forms necessary to administer this subsection and the adjustments to income under s. 71.05 (6) (a) 30. and (b) 55.

AB68,870,9 2. Prepare and distribute to financial institutions and potential homebuyers informational materials about the accounts described in this subsection.

AB68,1319 Section 1319. 71.26 (3) (j) of the statutes is amended to read:

AB68,870,19 71.26 (3) (j) Sections 243, 244, 245, 245A, 246 and 246A are excluded and replaced by the rule that corporations may deduct from income dividends received from a corporation with respect to its common stock if the corporation receiving the dividends owns, directly or indirectly, during the entire taxable year at least 70 percent of the total combined voting stock of the payor corporation. In this paragraph, “dividends received" means gross dividends minus taxes on those dividends paid to a foreign nation and claimed as a deduction under this chapter. The same dividends may not be deducted more than once and may not be used in the determination of a net business loss under ss. 71.26 (4) and 71.45 (4).

AB68,1320 Section 1320. 71.26 (4) (a) of the statutes is amended to read:

AB68,871,13 71.26 (4) (a) Except as provided in par. (b) and s. 71.80 (25), a corporation, except a tax-option corporation or an insurer to which s. 71.45 (4) applies, may offset against its Wisconsin net business income any Wisconsin net business loss incurred in any of the 20 immediately preceding taxable years, if the corporation was subject to taxation under this chapter in the taxable year in which the loss was incurred, to the extent not offset by other items of Wisconsin income in the loss year and by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed. For purposes of this subsection, Wisconsin net business income or loss shall consist of all the income attributable to the operation of a trade or business in this state, less the business expenses allowed as deductions in computing net income, except that the dividends received deduction under sub. (3) (j) may not be used in the determination of a net business loss. The Wisconsin net business income or loss of corporations engaged in business within and without the state shall be determined under s. 71.25 (6) and (10) to (12). Nonapportionable losses having a Wisconsin situs under s. 71.25 (5) (b) shall be included in Wisconsin net business loss; and nonapportionable income having a Wisconsin situs under s. 71.25 (5) (b), whether taxable or exempt, shall be included in other items of Wisconsin income and Wisconsin net business income for purposes of this subsection.

AB68,1321 Section 1321. 71.28 (3q) (c) 1. of the statutes is renumbered 71.28 (3q) (c) 1. a. and amended to read:

AB68,871,24 71.28 (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.

AB68,1322 Section 1322. 71.28 (3q) (c) 1. b. of the statutes is created to read:

AB68,872,13 71.28 (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.

AB68,1323 Section 1323. 71.28 (3w) (a) 1. of the statutes is renumbered 71.28 (3w) (a) 1. a. and amended to read:

AB68,872,18 71.28 (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.

AB68,1324 Section 1324. 71.28 (3w) (a) 1. b. of the statutes is created to read:

AB68,872,23 71.28 (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).

AB68,1325 Section 1325. 71.28 (3w) (a) 2m. of the statutes is created to read:

AB68,873,2 71.28 (3w) (a) 2m. “Contract” means a contract between the claimant and Wisconsin Economic Development Corporation under s. 238.399.

AB68,1326 Section 1326. 71.28 (3w) (a) 6. of the statutes is renumbered 71.28 (3w) (a) 6. a. and amended to read:

AB68,873,8 71.28 (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.

AB68,1327 Section 1327. 71.28 (3w) (a) 6. b. of the statutes is created to read:

AB68,873,12 71.28 (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.

AB68,1328 Section 1328. 71.28 (3w) (b) (intro.) of the statutes is amended to read:

AB68,873,17 71.28 (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. 71.23 an amount calculated as follows:

AB68,1329 Section 1329. 71.28 (3w) (bd) of the statutes is created to read:

AB68,873,22 71.28 (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. 71.23 an amount calculated as follows:

AB68,873,23 1. Determine the amount that is the lesser of:

AB68,874,5 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.

AB68,874,11 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.

AB68,874,18 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.

AB68,874,21 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.

AB68,874,23 4. Multiply the amount determined under subd. 3. by the amount determined under subd. 1.

AB68,874,25 5. Multiply the amount determined under subd. 4. by the percentage determined under s. 238.399, not to exceed 7 percent.

AB68,1330 Section 1330. 71.28 (3w) (bm) 1. of the statutes is amended to read:

AB68,875,12 71.28 (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. 71.23 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.

AB68,1331 Section 1331. 71.28 (3w) (bm) 2. of the statutes is renumbered 71.28 (3w) (bm) 2. (intro.) and amended to read:

AB68,875,18 71.28 (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. 71.23 one of the following amounts:

AB68,876,5 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.

AB68,1332 Section 1332. 71.28 (3w) (bm) 2. b. of the statutes is created to read:

AB68,876,16 71.28 (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.

AB68,1333 Section 1333. 71.28 (3w) (bm) 3. of the statutes is amended to read:

AB68,876,23 71.28 (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. 71.23 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.

AB68,1334 Section 1334. 71.28 (3w) (bm) 4. of the statutes is amended to read:

AB68,877,9 71.28 (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. 71.23, 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.