Amendment AA1-SB70

SB70-AA1,9337 Section 9337. Initial applicability; Revenue.

SB70-AA1,514,2 (1) Dividends received deduction. The treatment of ss. 71.26 (3) (j) and (4) (a) and 71.45 (4) (a) first applies to taxable years beginning after December 31, 2022.”.

SB70-AA1,514,3 190. Page 374, line 11: after that line insert:

SB70-AA1,514,4 “ Section 1122. 71.05 (8) (a) of the statutes is amended to read:

SB70-AA1,514,11 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.

SB70-AA1,1123 Section 1123. 71.05 (8) (b) 1. of the statutes is renumbered 71.05 (8) (b) and amended to read:

SB70-AA1,515,4 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.

SB70-AA1,1124 Section 1124. 71.05 (8) (b) 2. of the statutes is repealed.

SB70-AA1,1125 Section 1125. 71.05 (8) (c) of the statutes is repealed.

SB70-AA1,1126 Section 1126. 71.80 (25) (a) of the statutes is renumbered 71.80 (25) and amended to read:

SB70-AA1,515,13 71.80 (25) Net operating and business loss carry-forward and carry-back. No offset of Wisconsin income may be made under s. 71.05 (8) (b) 1., 71.26 (4) (a), or 71.45 (4) (a) unless the incurred loss was computed on a return that was filed within 4 years of the unextended due date for filing the original return for the taxable year in which the loss was incurred.

SB70-AA1,1127 Section 1127. 71.80 (25) (b) of the statutes is repealed.

SB70-AA1,9337 Section 9337. Initial applicability; Revenue.

SB70-AA1,515,18 (1) Net operating losses. The treatment of ss. 71.05 (8) (a), (b) 1. and 2., and (c) and 71.80 (25) (a) and (b) first applies to taxable years beginning after December 31, 2022.”.

SB70-AA1,515,19 191. Page 374, line 11: after that line insert:

SB70-AA1,515,20 “ Section 1128. 71.05 (6) (b) 4. (intro.) of the statutes is amended to read:

SB70-AA1,516,11 71.05 (6) (b) 4. (intro.) Disability For taxable years beginning before January 1, 2023, disability payments other than disability payments that are paid from a retirement plan, the payments from which are exempt under subd. subds. 54. and 54m. and sub. (1) (am) and (an), if the individual either is single or is married and files a joint return and is under 65 years of age before the close of the taxable year to which the subtraction relates, retired on disability, and, when the individual retired, was permanently and totally disabled. In this subdivision, “permanently and totally disabled" means an individual who is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. An individual shall not be considered permanently and totally disabled for purposes of this subdivision unless proof is furnished in such form and manner, and at such times, as prescribed by the department. The exclusion under this subdivision shall be determined as follows:

SB70-AA1,1129 Section 1129. 71.05 (6) (b) 4m. of the statutes is created to read:

SB70-AA1,517,2 71.05 (6) (b) 4m. For taxable years beginning after December 31, 2022, disability payments other than disability payments that are paid from a retirement plan, the payments from which are exempt under subds. 54. and 54m. and sub. (1) (am) and (an), if the individual is under 65 years of age before the close of the taxable year to which the subtraction relates, retired on disability, and, when the individual retired, was permanently and totally disabled. In this subdivision, “permanently and totally disabled" means an individual who is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. An individual shall not be considered permanently and totally disabled for purposes of this subdivision unless proof is furnished in such form and manner, and at such times, as prescribed by the department. The exclusion under this subdivision shall be determined as follows:

SB70-AA1,517,6 a. If the individual is single or files as a head of household and the individual's federal adjusted gross income in the year to which the subtraction relates is less than $30,000, the maximum subtraction is $5,500 or the amount of disability pay reported as income, whichever is less.

SB70-AA1,517,10 b. If the individual is married and is a joint filer and the couple's federal adjusted gross income in the year to which the subtraction relates is less than $60,000, the maximum subtraction is $5,500 per spouse that is disabled or the amount of disability pay reported as income, whichever is less.

SB70-AA1,517,14 c. If the individual is married and files a separate return and the sum of both spouses' federal adjusted gross income in the year to which the subtraction relates is less than $60,000, the maximum subtraction is $5,500 or the amount of disability pay reported as income, whichever is less.”.

SB70-AA1,517,15 192. Page 374, line 11: after that line insert:

SB70-AA1,517,16 “ Section 1130. 77.54 (62) of the statutes is repealed.

SB70-AA1,9437 Section 9437. Effective dates; Revenue.

SB70-AA1,517,19 (1) Sales and use tax exemption for farm-raised deer. The treatment of s. 77.54 (62) takes effect on the first day of the 3rd month beginning after publication.”.

SB70-AA1,517,20 193. Page 374, line 11: after that line insert:

SB70-AA1,517,21 “ Section 1131. 238.399 (3) (a) of the statutes is amended to read:

SB70-AA1,517,23 238.399 (3) (a) The corporation may designate any number of not more than 30 enterprise zones in this state.

SB70-AA1,1132 Section 1132. 238.399 (3) (am) of the statutes is repealed.

SB70-AA1,1133 Section 1133. 238.399 (3) (em) of the statutes is created to read:

SB70-AA1,518,7 238.399 (3) (em) If the corporation revokes all certifications for tax benefits within a designated enterprise zone or all certifications for tax benefits within a designated enterprise zone expire, the corporation may cancel the designation of that enterprise zone. After canceling the designation of an enterprise zone, the corporation may designate a new enterprise zone subject to the limits under this subsection.

SB70-AA1,9149 Section 9149. Nonstatutory provisions; Wisconsin Economic Development Corporation.

SB70-AA1,518,13 (1) Enterprise zone designation limit. The treatment of s. 238.399 (3) (a) may not be construed to require that the Wisconsin Economic Development Corporation revoke a certification for tax benefits under s. 238.399 that is in effect on the effective date of this subsection.”.

SB70-AA1,518,14 194. Page 374, line 11: after that line insert:

SB70-AA1,518,15 “ Section 1. 139.44 (4) of the statutes is amended to read:

SB70-AA1,518,19 139.44 (4) Any person who refuses to permit the examination or inspection authorized in s. 139.39 (2) or 139.83 (1) may be fined not more than $500 or imprisoned not more than 90 days or both. Such refusal shall be cause for immediate suspension or revocation of permit by the secretary.

SB70-AA1,2 Section 2. 139.75 (1m) of the statutes is created to read:

SB70-AA1,518,24 139.75 (1m) “Cigar” means a roll, of any size or shape, of tobacco for smoking that is made wholly or in part of tobacco, regardless of whether the tobacco is pure, flavored, adulterated, or mixed with an ingredient, if the roll has a wrapper made wholly or in part of tobacco.

SB70-AA1,3 Section 3. 139.75 (4t) of the statutes is created to read:

SB70-AA1,519,3 139.75 (4t) “Little cigar” means a cigar that has an integrated cellulose acetate filter and is wrapped in a substance containing tobacco.

SB70-AA1,4 Section 4. 139.75 (12) of the statutes is amended to read:

SB70-AA1,519,12 139.75 (12) “Tobacco products" means cigars; little cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready-rubbed and other smoking tobacco; snuff, including moist snuff; snuff flour; cavendish; plug and twist tobacco; fine cut and other chewing tobaccos; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco and other kinds and forms of tobacco prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking; but “tobacco products" does not include cigarettes, as defined under s. 139.30 (1m).

SB70-AA1,5 Section 5. 139.76 (1) of the statutes is amended to read:

SB70-AA1,520,7 139.76 (1) An excise tax is imposed upon the sale, offering or exposing for sale, possession with intent to sell or removal for consumption or sale or other disposition for any purpose of tobacco products by any person engaged as a distributor of them at the rate, for tobacco products, not including moist snuff and vapor products, of 71 percent of the manufacturer's established list price to distributors without diminution by volume or other discounts on domestic products and, for moist snuff, at the rate of 100 percent of the manufacturer's established list price to distributors without diminution by volume or other discounts on domestic products. The tax imposed under this subsection on cigars shall not exceed an amount equal to 50 cents for each cigar. On products imported from another country, not including moist snuff and vapor products, the rate of tax is 71 percent of the amount obtained by adding the manufacturer's list price to the federal tax, duties and transportation costs to the United States. On moist snuff imported from another country, the rate of the tax is 100 percent of the amount obtained by adding the manufacturer's list price to the federal tax, duties, and transportation costs to the United States. The tax attaches at the time the tobacco products are received by the distributor in this state. The tax shall be passed on to the ultimate consumer of the tobacco products. All tobacco products received in this state for sale or distribution within this state, except tobacco products actually sold as provided in sub. (2), shall be subject to such tax.

SB70-AA1,6u Section 6u. 139.76 (1) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB70-AA1,520,21 139.76 (1) An excise tax is imposed upon the sale, offering or exposing for sale, possession with intent to sell or removal for consumption or sale or other disposition for any purpose of tobacco products by any person engaged as a distributor of them at the rate, for tobacco products, not including moist snuff and vapor products little cigars, of 71 percent of the manufacturer's list price and, for moist snuff, at the rate of 100 percent of the manufacturer's list price. The tax imposed under this subsection on cigars, except little cigars, shall not exceed an amount equal to 50 cents for each cigar. The tax attaches at the time the tobacco products are received by the distributor in this state. The tax shall be passed on to the ultimate consumer of the tobacco products. All tobacco products received in this state for sale or distribution within this state, except tobacco products actually sold as provided in sub. (2), shall be subject to such tax.

SB70-AA1,7 Section 7. 139.76 (1b) of the statutes is created to read:

SB70-AA1,521,4 139.76 (1b) The tax under sub. (1) is imposed on little cigars at the rate of 126 mills on each little cigar, regardless of weight. To evidence payment of the tax imposed under this section on little cigars, the department shall provide stamps. A person who has paid the tax shall affix stamps of the proper denomination to each package in which little cigars are packed, prior to the first sale within this state. Section 139.32 as it applies to the tax under s. 139.31 applies to the tax imposed under this section on little cigars.

SB70-AA1,8 Section 8. 139.78 (1) of the statutes is amended to read:

SB70-AA1,521,14 139.78 (1) A tax is imposed upon the use or storage by consumers of tobacco products in this state at the rate, for tobacco products, not including moist snuff and vapor products, of 71 percent of the cost of the tobacco products manufacturer's list price and, for moist snuff, at the rate of 100 percent of the manufacturer's established list price to distributors without diminution by volume or other discounts on domestic products. The tax imposed under this subsection on cigars shall not exceed an amount equal to 50 cents for each cigar. The tax does not apply if the tax imposed by s. 139.76 (1) on the tobacco products has been paid or if the tobacco products are exempt from the tobacco products tax under s. 139.76 (2).

SB70-AA1,9u Section 9u. 139.78 (1) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB70-AA1,521,24 139.78 (1) A tax is imposed upon the use or storage by consumers of tobacco products in this state at the rate, for tobacco products, not including moist snuff and vapor products little cigars, of 71 percent of the manufacturer's list price and, for moist snuff, at the rate of 100 percent of the manufacturer's list price. The tax imposed under this subsection on cigars, except little cigars, shall not exceed an amount equal to 50 cents for each cigar. The tax does not apply if the tax imposed by s. 139.76 (1) on the tobacco products has been paid or if the tobacco products are exempt from the tobacco products tax under s. 139.76 (2).

SB70-AA1,10 Section 10. 139.78 (1b) of the statutes is created to read:

SB70-AA1,522,5 139.78 (1b) A tax is imposed and levied upon the use or storage of little cigars in this state by any person for any purpose. The tax is levied and shall be collected at the same rate as provided for in s. 139.76 (1b). The tax under this subsection does not apply if the tax imposed by s. 139.76 (1) has been paid or if the little cigars are exempt from tax under s. 139.76 (2).

SB70-AA1,11 Section 11. 139.83 of the statutes is renumbered 139.83 (1).

SB70-AA1,12 Section 12. 139.83 (2) of the statutes is created to read:

SB70-AA1,522,11 139.83 (2) Sections 139.315, 139.32, 139.321, 139.322, 139.34, 139.35, 139.36, 139.362, 139.363, 139.38, 139.395, 139.41, 139.42, 139.43, and 139.44 (8), as they apply to the taxes under subch. II, apply to the administration and enforcement of this subchapter for little cigars.

SB70-AA1,9437 Section 9437. Effective dates; Revenue.

SB70-AA1,522,16 (1) Little cigars. The treatment of ss. 139.44 (4), 139.75 (1m), (4t), and (12), 139.76 (1) (by Section 6u) and (1b), and 139.78 (1) (by Section 9u) and (1b), the renumbering of s. 139.83, and the creation of s. 139.83 (2) take effect on the first day of the 3rd month beginning after publication.”.

SB70-AA1,522,17 195. Page 374, line 11: after that line insert:

SB70-AA1,522,18 “ Section 1134. 71.07 (3w) (a) 2m. of the statutes is created to read:

SB70-AA1,522,20 71.07 (3w) (a) 2m. “Contract” means the contract between the claimant and the Wisconsin Economic Development Corporation under s. 238.399.

SB70-AA1,1135 Section 1135. 71.07 (3w) (a) 6. of the statutes is renumbered 71.07 (3w) (a) 6. a. and amended to read:

SB70-AA1,523,2 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.

SB70-AA1,1136 Section 1136. 71.07 (3w) (a) 6. b. of the statutes is created to read:

SB70-AA1,523,6 71.07 (3w) (a) 6. b. For a claimant whose contract is executed after December 31, 2023, “zone payroll" does not include the amount of wages paid to any full-time employees that exceeds $141,300.

SB70-AA1,1137 Section 1137. 71.07 (3w) (b) (intro.) of the statutes is amended to read:

SB70-AA1,523,11 71.07 (3w) (b) Filing claims under pre-2024 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, 2024, may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount calculated as follows:

SB70-AA1,1138 Section 1138. 71.07 (3w) (bd) of the statutes is created to read:

SB70-AA1,523,16 71.07 (3w) (bd) Filing claims under post-2023 contracts; payroll. Subject to the limitations provided in this subsection and s. 238.399, a claimant whose contract is executed after December 31, 2023, may claim as a credit against the tax imposed under s. 71.02 an amount calculated as follows:

SB70-AA1,523,17 1. Determine the amount that is the lesser of:

SB70-AA1,523,24 a. The number of full-time employees whose annual wages are greater than $32,000 in a tier I county or municipality or greater than $42,390 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 $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the area that comprises the enterprise zone in the base year.

SB70-AA1,524,6 b. The number of full-time employees whose annual wages are greater than $32,000 in a tier I county or municipality or greater than $42,390 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 $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the state in the base year.

SB70-AA1,524,13 2. Determine the claimant's average zone payroll by dividing total wages for full-time employees whose annual wages are greater than $32,000 in a tier I county or municipality or greater than $42,390 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 $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year.

SB70-AA1,524,16 3. For employees in a tier I county or municipality, subtract $32,000 from the amount determined under subd. 2. and for employees in a tier II county or municipality, subtract $42,390 from the amount determined under subd. 2.

SB70-AA1,524,18 4. Multiply the amount determined under subd. 3. by the amount determined under subd. 1.

SB70-AA1,524,20 5. Multiply the amount determined under subd. 4. by the percentage determined by under s. 238.399, not to exceed 7 percent.

SB70-AA1,1139 Section 1139. 71.07 (3w) (bm) 1. of the statutes is amended to read:

SB70-AA1,525,7 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.

SB70-AA1,1140 Section 1140. 71.07 (3w) (bm) 2. of the statutes is renumbered 71.07 (3w) (bm) 2. (intro.) and amended to read:

SB70-AA1,525,13 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:

SB70-AA1,525,25 a. For a claimant whose contract is executed prior to January 1, 2024, 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.

SB70-AA1,1141 Section 1141. 71.07 (3w) (bm) 2. b. of the statutes is created to read:

SB70-AA1,526,11 71.07 (3w) (bm) 2. b. For a claimant whose contract is executed after December 31, 2023, 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 $32,000 in a tier I county or municipality, not including the wages paid to the employees determined under par. (bd) 1., or greater than $42,390 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.

SB70-AA1,1142 Section 1142. 71.07 (3w) (bm) 3. of the statutes is amended to read:

SB70-AA1,526,18 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.

SB70-AA1,1143 Section 1143. 71.07 (3w) (bm) 4. of the statutes is amended to read:

SB70-AA1,527,3 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.