SB571: Bill Text

LRB-4215/2

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2021 - 2022 LEGISLATURE

2021 Senate BILL 571

September 24, 2021 - Introduced by Senators Marklein, Kooyenga, Ringhand, Ballweg, Felzkowski, Nass and Stroebel, cosponsored by Representatives Katsma, Macco, Brooks, Cabral-Guevara, Dittrich, Horlacher, Kitchens, Kuglitsch, Mursau, Novak, Penterman, Wittke, Zimmerman, Spiros, Duchow, Edming, Wichgers and Knodl. Referred to Committee on Financial Institutions and Revenue.

SB571,2,2 An Act to repeal 20.505 (8) (hm) 19., 20.835 (2) (dn), 20.835 (2) (ka), 20.835 (2) (q), 71.03 (2) (a) 3. and 4., 71.05 (6) (b) 47., 71.05 (22) (f) 1., 2. and 3., 71.07 (2), 71.07 (3m), 71.07 (8), 71.07 (9e) (a), (ac), (ad), (af), and (ah), 71.07 (9e) (ap) and (at), 71.07 (9e) (g), 71.10 (4) (b), 71.15 (2), 71.26 (2) (a) 10., 71.28 (2m), 71.28 (9s), 71.30 (3) (ex), 71.47 (2m), 71.47 (9s), 71.49 (1) (ex), 71.66 (2) (c) and (d), 79.13, 238.3995 and 569.02 (5); and to amend 71.03 (2) (a) 5., 71.07 (2dm) (a) 1., 71.07 (2dm) (a) 3., 71.07 (2dm) (f) 1., 71.07 (2dm) (j), 71.07 (2dm) (k), 71.07 (2dx) (a) 2., 71.07 (2dx) (b) (intro.), 71.07 (2dx) (c), 71.07 (2dx) (d), 71.07 (9e) (aj) (intro.), 71.10 (4) (i), 71.26 (2) (a) 4., 71.28 (1dm) (a) 1., 71.28 (1dm) (a) 3., 71.28 (1dm) (f) 1., 71.28 (1dm) (j), 71.28 (1dm) (k), 71.28 (1dx) (a) 2., 71.28 (1dx) (b) (intro.), 71.28 (1dx) (c), 71.28 (1dx) (d), 71.30 (3) (f), 71.45 (2) (a) 10., 71.47 (1dm) (a) 1., 71.47 (1dm) (a) 3., 71.47 (1dm) (f) 1., 71.47 (1dm) (j), 71.47 (1dm) (k), 71.47 (1dx) (a) 2., 71.47 (1dx) (b) (intro.), 71.47 (1dx) (c), 71.47 (1dx) (d), 71.49 (1) (f), 71.88 (2) (b), 79.10 (11) (b), 238.23 (2) (b), 238.398 (2) (b), 632.897 (10) (a) 3., 767.511 (1) (b), 767.804 (3) (c), 767.805 (4) (c) and 767.89 (3) (d) of the statutes; relating to: the repeal of obsolete tax credits.

Analysis by the Legislative Reference Bureau

This bill repeals the following tax credits that taxpayers may no longer claim because of sunset provisions related to each of these credits:

1. The farmland tax relief credit and the corresponding appropriations.

2. The provisions of the earned income tax credit that pertain to taxable years beginning before January 1, 2011.

3. The community development finance authority individual income credit.

4. The airport development zones credit.

5. The relocated business credit.

6. The personal exemption credit for natural persons.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB571,1 Section 1. 20.505 (8) (hm) 19. of the statutes is repealed.

SB571,2 Section 2. 20.835 (2) (dn) of the statutes is repealed.

SB571,3 Section 3. 20.835 (2) (ka) of the statutes is repealed.

SB571,4 Section 4. 20.835 (2) (q) of the statutes is repealed.

SB571,5 Section 5. 71.03 (2) (a) 3. and 4. of the statutes are repealed.

SB571,6 Section 6. 71.03 (2) (a) 5. of the statutes is amended to read:

SB571,2,16 71.03 (2) (a) 5. For taxable years beginning on or after January 1, 1994, every natural person for whom a deduction from tax under s. 71.07 (8) (b) is allowable to another the taxpayer is entitled to an exemption for the taxable year under section 151 (c) of the Internal Revenue Code shall file a return if that natural person has any amount of unearned income and that person has gross income of at least $500 adjusted for inflation in the manner prescribed by sections 1 (f) (3) to (6) and 63 (c) (4) of the internal revenue code Internal Revenue Code. The department of revenue shall incorporate the changes in the income tax forms and instructions.

SB571,7 Section 7. 71.05 (6) (b) 47. of the statutes is repealed.

SB571,8 Section 8. 71.05 (22) (f) 1., 2. and 3. of the statutes are repealed.

SB571,9 Section 9. 71.07 (2) of the statutes is repealed.

SB571,10 Section 10. 71.07 (2dm) (a) 1. of the statutes is amended to read:

SB571,3,8 71.07 (2dm) (a) 1. “Certified" means entitled under s. 238.395 (3) (a) 4. or s. 560.795 (3) (a) 4., 2009 stats., to claim tax benefits or certified under s. 238.395 (5), or 238.398 (5), or 238.3995 (4) or s. 560.795 (5), 2009 stats., or s. 560.798 (3), 2009 stats., or s. 560.7995 (4), 2009 stats.

SB571,11 Section 11. 71.07 (2dm) (a) 3. of the statutes is amended to read:

SB571,3,13 71.07 (2dm) (a) 3. “Development zone" means a development opportunity zone under s. 238.395 (1) (e) and (f) or 238.398 or s. 560.795 (1) (e) and (f), 2009 stats., or s. 560.798, 2009 stats., or an airport development zone under s. 238.3995 or s. 560.7995, 2009 stats.

SB571,12 Section 12. 71.07 (2dm) (f) 1. of the statutes is amended to read:

SB571,3,18 71.07 (2dm) (f) 1. A copy of the verification that the claimant may claim tax benefits under s. 238.395 (3) (a) 4. or s. 560.795 (3) (a) 4., 2009 stats., or is certified under s. 238.395 (5), or 238.398 (3), or 238.3995 (4) or s. 560.795 (5), 2009 stats. , or s. 560.798 (3), 2009 stats., or s. 560.7995 (4), 2009 stats.

SB571,13 Section 13. 71.07 (2dm) (j) of the statutes is amended to read:

SB571,4,5 71.07 (2dm) (j) If a person who is entitled under s. 238.395 (3) (a) 4. or s. 560.795 (3) (a) 4., 2009 stats., to claim tax benefits becomes ineligible for such tax benefits, or if a person's certification under s. 238.395 (5), or 238.398 (3), or 238.3995 (4) or s. 560.795 (5), 2009 stats., or s. 560.798 (3), 2009 stats., or s. 560.7995 (4), 2009 stats., is revoked, that person may claim no credits under this subsection for the taxable year that includes the day on which the person becomes ineligible for tax benefits, the taxable year that includes the day on which the certification is revoked, or succeeding taxable years, and that person may carry over no unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which the person becomes ineligible for tax benefits, the taxable year that includes the day on which the certification is revoked, or succeeding taxable years.

SB571,14 Section 14. 71.07 (2dm) (k) of the statutes is amended to read:

SB571,4,14 71.07 (2dm) (k) If a person who is entitled under s. 238.395 (3) (a) 4. or s. 560.795 (3) (a) 4., 2009 stats., to claim tax benefits or certified under s. 238.395 (5), or 238.398 (3), or 238.3995 (4) or s. 560.795 (5), 2009 stats., or s. 560.798 (3), 2009 stats., or s. 560.7995 (4), 2009 stats., ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.

SB571,15 Section 15. 71.07 (2dx) (a) 2. of the statutes is amended to read:

SB571,4,21 71.07 (2dx) (a) 2. “Development zone" means a development zone under s. 238.30 or s. 560.70, 2009 stats., a development opportunity zone under s. 238.395 or s. 560.795, 2009 stats., an enterprise development zone under s. 238.397 or s. 560.797, 2009 stats., or an agricultural development zone under s. 238.398 or s. 560.798, 2009 stats., or an airport development zone under s. 238.3995 or s. 560.7995, 2009 stats.

SB571,16 Section 16. 71.07 (2dx) (b) (intro.) of the statutes is amended to read:

SB571,5,4 71.07 (2dx) (b) Credit. (intro.) Except as provided in pars. (be) and (bg) and in s. 73.03 (35), and subject to s. 238.385 or s. 560.785, 2009 stats., for any taxable year for which the person is entitled under s. 238.395 (3) or s. 560.795 (3), 2009 stats., to claim tax benefits or certified under s. 238.365 (3), 238.397 (4), or 238.398 (3), or 238.3995 (4) or s. 560.765 (3), 2009 stats., s. 560.797 (4), 2009 stats., or s. 560.798 (3), 2009 stats., or s. 560.7995 (4), 2009 stats., any person may claim as a credit against the taxes otherwise due under this chapter the following amounts:

SB571,17 Section 17. 71.07 (2dx) (c) of the statutes is amended to read:

SB571,5,17 71.07 (2dx) (c) Credit precluded. If the certification of a person for tax benefits under s. 238.365 (3), 238.397 (4), or 238.398 (3) , or 238.3995 (4) or s. 560.765 (3), 2009 stats., s. 560.797 (4), 2009 stats., or s. 560.798 (3), 2009 stats., or s. 560.7995 (4), 2009 stats., is revoked, or if the person becomes ineligible for tax benefits under s. 238.395 (3) or s. 560.795 (3), 2009 stats., that person may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years and that person may not carry over unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years.

SB571,18 Section 18. 71.07 (2dx) (d) of the statutes is amended to read:

SB571,6,2 71.07 (2dx) (d) Carry-over precluded. If a person who is entitled under s. 238.395 (3) or s. 560.795 (3), 2009 stats., to claim tax benefits or certified under s. 238.365 (3), 238.397 (4), or 238.398 (3), or 238.3995 (4) or s. 560.765 (3), 2009 stats., s. 560.797 (4), 2009 stats., or s. 560.798 (3), 2009 stats., or s. 560.7995 (4), 2009 stats., for tax benefits ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.

SB571,19 Section 19. 71.07 (3m) of the statutes is repealed.

SB571,20 Section 20. 71.07 (8) of the statutes is repealed.

SB571,21 Section 21. 71.07 (9e) (a), (ac), (ad), (af), and (ah) of the statutes are repealed.

SB571,22 Section 22. 71.07 (9e) (aj) (intro.) of the statutes is amended to read:

SB571,6,11 71.07 (9e) (aj) (intro.) For taxable years beginning after December 31, 2010, 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:

SB571,23 Section 23. 71.07 (9e) (ap) and (at) of the statutes are repealed.

SB571,24 Section 24. 71.07 (9e) (g) of the statutes is repealed.

SB571,25 Section 25. 71.10 (4) (b) of the statutes is repealed.

SB571,26 Section 26. 71.10 (4) (i) of the statutes is amended to read:

SB571,6,24 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief credit under s. 71.07 (3m), jobs tax credit under s. 71.07 (3q), business development credit under s. 71.07 (3y), research credit under s. 71.07 (4k) (e) 2. a., veterans and surviving spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s. 71.07 (3w), electronics and information technology manufacturing zone credit under s. 71.07 (3wm), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

SB571,27 Section 27. 71.15 (2) of the statutes is repealed.

SB571,28 Section 28. 71.26 (2) (a) 4. of the statutes is amended to read:

SB571,7,7 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm), (1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (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).

SB571,29 Section 29. 71.26 (2) (a) 10. of the statutes is repealed.

SB571,30 Section 30. 71.28 (1dm) (a) 1. of the statutes is amended to read:

SB571,7,13 71.28 (1dm) (a) 1. “Certified" means entitled under s. 238.395 (3) (a) 4. or s. 560.795 (3) (a) 4., 2009 stats., to claim tax benefits or certified under s. 238.395 (5), or 238.398 (3), or 238.3995 (4) or s. 560.795 (5), 2009 stats., or s. 560.798 (3), 2009 stats., or s. 560.7995 (4), 2009 stats.

SB571,31 Section 31. 71.28 (1dm) (a) 3. of the statutes is amended to read:

SB571,7,18 71.28 (1dm) (a) 3. “Development zone" means a development opportunity zone under s. 238.395 (1) (e) and (f) or 238.398 or s. 560.795 (1) (e) and (f), 2009 stats., or s. 560.798, 2009 stats., or an airport development zone under s. 238.3995 or s. 560.7995, 2009 stats.

SB571,32 Section 32. 71.28 (1dm) (f) 1. of the statutes is amended to read:

SB571,7,23 71.28 (1dm) (f) 1. A copy of the verification that the claimant may claim tax benefits under s. 238.395 (3) (a) 4. or s. 560.795 (3) (a) 4., 2009 stats., or is certified under s. 238.395 (5), or 238.398 (3), or 238.3995 (4) or s. 560.795 (5), 2009 stats., or s. 560.798 (3), 2009 stats., or s. 560.7995 (4), 2009 stats.

SB571,33 Section 33. 71.28 (1dm) (j) of the statutes is amended to read:

SB571,8,11 71.28 (1dm) (j) If a person who is entitled under s. 238.395 (3) (a) 4. or s. 560.795 (3) (a) 4., 2009 stats., to claim tax benefits becomes ineligible for such tax benefits, or if a person's certification under s. 238.395 (5), or 238.398 (3), or 238.3995 (4) or s. 560.795 (5), 2009 stats., or s. 560.798 (3), 2009 stats., or s. 560.7995 (4), 2009 stats., is revoked, that person may claim no credits under this subsection for the taxable year that includes the day on which the person becomes ineligible for tax benefits, the taxable year that includes the day on which the certification is revoked, or succeeding taxable years, and that person may carry over no unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which the person becomes ineligible for tax benefits, the taxable year that includes the day on which the certification is revoked, or succeeding taxable years.

SB571,34 Section 34. 71.28 (1dm) (k) of the statutes is amended to read:

SB571,8,20 71.28 (1dm) (k) If a person who is entitled under s. 238.395 (3) (a) 4. or s. 560.795 (3) (a) 4., 2009 stats., to claim tax benefits or certified under s. 238.395 (5), or 238.398 (3), or 238.3995 (4) or s. 560.795 (5), 2009 stats., or s. 560.798 (3), 2009 stats., or s. 560.7995 (4), 2009 stats., ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.

SB571,35 Section 35. 71.28 (1dx) (a) 2. of the statutes is amended to read:

SB571,9,2 71.28 (1dx) (a) 2. “Development zone" means a development zone under s. 238.30 or s. 560.70, 2009 stats., a development opportunity zone under s. 238.395 or s. 560.795, 2009 stats., an enterprise development zone under s. 238.397 or s. 560.797, 2009 stats., or an agricultural development zone under s. 238.398 or s. 560.798, 2009 stats., or an airport development zone under s. 238.3995 or s. 560.7995, 2009 stats.

SB571,36 Section 36. 71.28 (1dx) (b) (intro.) of the statutes is amended to read:

SB571,9,10 71.28 (1dx) (b) Credit. (intro.) Except as provided in pars. (be) and (bg) and in s. 73.03 (35), and subject to s. 238.385 or s. 560.785, 2009 stats., for any taxable year for which the person is entitled under s. 238.395 (3) or s. 560.795 (3), 2009 stats., to claim tax benefits or certified under s. 238.365 (3), 238.397 (4), or 238.398 (3), or 238.3995 (4) or s. 560.765 (3), 2009 stats., s. 560.797 (4), 2009 stats., or s. 560.798 (3), 2009 stats., or s. 560.7995 (4), 2009 stats., any person may claim as a credit against the taxes otherwise due under this chapter the following amounts:

SB571,37 Section 37. 71.28 (1dx) (c) of the statutes is amended to read:

SB571,9,23 71.28 (1dx) (c) Credit precluded. If the certification of a person for tax benefits under s. 238.365 (3), 238.397 (4), or 238.398 (3) , or 238.3995 (4) or s. 560.765 (3), 2009 stats., s. 560.797 (4), 2009 stats., or s. 560.798 (3), 2009 stats., or s. 560.7995 (4), 2009 stats., is revoked, or if the person becomes ineligible for tax benefits under s. 238.395 (3) or s. 560.795 (3), 2009 stats., that person may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years and that person may not carry over unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years.

SB571,38 Section 38. 71.28 (1dx) (d) of the statutes is amended to read:

SB571,10,8 71.28 (1dx) (d) Carry-over precluded. If a person who is entitled under s. 238.395 (3) or s. 560.795 (3), 2009 stats., to claim tax benefits or certified under s. 238.365 (3), 238.397 (4), or 238.398 (3), or 238.3995 (4) or s. 560.765 (3), 2009 stats., s. 560.797 (4), 2009 stats., or s. 560.798 (3), 2009 stats., or s. 560.7995 (4), 2009 stats., for tax benefits ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.

SB571,39 Section 39. 71.28 (2m) of the statutes is repealed.

SB571,40 Section 40. 71.28 (9s) of the statutes is repealed.

SB571,41 Section 41. 71.30 (3) (ex) of the statutes is repealed.

SB571,42 Section 42. 71.30 (3) (f) of the statutes is amended to read: