Amendment AA1-SB70

SB70-AA1,553,11 71.28 (3y) (b) 6. For taxable years beginning after December 31, 2023, 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.

SB70-AA1,1209 Section 1209. 71.47 (3y) (b) 6. of the statutes is created to read:

SB70-AA1,553,17 71.47 (3y) (b) 6. For taxable years beginning after December 31, 2023, 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.

SB70-AA1,1210 Section 1210. 238.308 (4) (a) 6. of the statutes is created to read:

SB70-AA1,553,23 238.308 (4) (a) 6. An amount equal to up to 25 percent of the person's energy efficiency or renewable energy project expenditures on real or personal property located in this state. When making an award under this subdivision, the corporation shall ensure that the percentage of expenditures taken into account positively correlates to the scale of the project.

SB70-AA1,9349 Section 9349. Initial applicability; Wisconsin Economic Development Corporation.

SB70-AA1,554,3 (1) Energy efficiency and renewable energy project expenditures for business development tax credit. The treatment of s. 238.308 (4) (a) 6. first applies to credits awarded under s. 238.308 on January 1, 2024.”.

SB70-AA1,554,4 202. Page 374, line 11: after that line insert:

SB70-AA1,554,5 “ Section 1211. 71.07 (5n) (d) 2. of the statutes is amended to read:

SB70-AA1,554,14 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. This subdivision does not apply if the claimant's entire qualified production activities income results from the sale of tangible personal property that was manufactured, produced, grown, or extracted wholly in this state by the claimant.

SB70-AA1,1212 Section 1212. 71.07 (5n) (d) 2m. of the statutes is created to read:

SB70-AA1,554,23 71.07 (5n) (d) 2m. For taxable years beginning after December 31, 2022, for purposes of determining a claimant's eligible qualified production activities income from manufacturing under this subsection, the claimant shall multiply the claimant's qualified production activities income, not exceeding $300,000, from property manufactured by the claimant by the manufacturing property factor. This subdivision does not apply if the claimant's entire qualified production activities income results from the sale of tangible personal property that was manufactured, produced, grown, or extracted wholly in this state by the claimant.

SB70-AA1,1213 Section 1213. 71.28 (5n) (d) 2. of the statutes is amended to read:

SB70-AA1,555,9 71.28 (5n) (d) 2. Except as provided in subd. subds. 2m. and 3., 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. This subdivision does not apply if the claimant's entire qualified production activities income results from the sale of tangible personal property that was manufactured, produced, grown, or extracted wholly in this state by the claimant.

SB70-AA1,1214 Section 1214. 71.28 (5n) (d) 2m. of the statutes is created to read:

SB70-AA1,555,19 71.28 (5n) (d) 2m. Except as provided in subd. 3., for taxable years beginning after December 31, 2022, for purposes of determining a claimant's eligible qualified production activities income from manufacturing under this subsection, the claimant shall multiply the claimant's qualified production activities income, not exceeding $300,000, from property manufactured by the claimant by the manufacturing property factor. This subdivision does not apply if the claimant's entire qualified production activities income results from the sale of tangible personal property that was manufactured, produced, grown, or extracted wholly in this state by the claimant.

SB70-AA1,1215 Section 1215. 71.28 (5n) (d) 3. a. of the statutes is amended to read:

SB70-AA1,555,22 71.28 (5n) (d) 3. a. The eligible qualified production activities income determined under subd. 2. or 2m.”.

SB70-AA1,555,23 203. Page 374, line 11: after that line insert:

SB70-AA1,555,24 “ Section 1216. 71.07 (4k) (e) 2. a. of the statutes is amended to read:

SB70-AA1,556,11 71.07 (4k) (e) 2. a. 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 subsequent taxable years beginning after December 31, 2020 and before January 1, 2024, the amount of the claim not used to offset the tax due, up to 15 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).

SB70-AA1,1217 Section 1217. 71.07 (4k) (e) 2. ad. of the statutes is created to read:

SB70-AA1,556,18 71.07 (4k) (e) 2. ad. For taxable years beginning after December 31, 2023, the amount of the claim not used to offset the tax due, not to exceed 50 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).

SB70-AA1,1218 Section 1218. 71.07 (4k) (e) 2. b. of the statutes is amended to read:

SB70-AA1,556,25 71.07 (4k) (e) 2. b. The amount of the claim not used to offset the tax due and not certified for payment under subd. 2. a. or 2. ad. may be carried forward and credited against Wisconsin income taxes otherwise due for the following 15 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.

SB70-AA1,1219 Section 1219. 71.28 (4) (k) 1. b. of the statutes is amended to read:

SB70-AA1,557,7 71.28 (4) (k) 1. b. For taxable years beginning after December 31, 2020 and before January 1, 2024, the amount of the claim not used to offset the tax due, up to 15 percent of the allowable amount of the claim under par. (ad) 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).

SB70-AA1,1220 Section 1220. 71.28 (4) (k) 1. c. of the statutes is created to read:

SB70-AA1,557,14 71.28 (4) (k) 1. c. For taxable years beginning after December 31, 2023, the amount of the claim not used to offset the tax due, not to exceed 50 percent of the allowable amount of the claim under par. (ad) 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).

SB70-AA1,1221 Section 1221. 71.47 (4) (k) 1. b. of the statutes is amended to read:

SB70-AA1,557,21 71.47 (4) (k) 1. b. For taxable years beginning after December 31, 2020 and before January 1, 2024, the amount of the claim not used to offset the tax due, up to 15 percent of the allowable amount of the claim under par. (ad) 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).

SB70-AA1,1222 Section 1222. 71.47 (4) (k) 1. c. of the statutes is created to read:

SB70-AA1,558,3 71.47 (4) (k) 1. c. For taxable years beginning after December 31, 2023, the amount of the claim not used to offset the tax due, not to exceed 50 percent of the allowable amount of the claim under par. (ad) 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).”.

SB70-AA1,558,4 204. Page 374, line 11: after that line insert:

SB70-AA1,558,5 “ Section 1223. 71.05 (1) (am) of the statutes is amended to read:

SB70-AA1,558,8 71.05 (1) (am) Military retirement systems. All retirement payments received from the U.S. military employee retirement system, to the extent that such payments are not exempt under par. (a) or sub. (6) (b) 54. or 54m.

SB70-AA1,1224 Section 1224. 71.05 (1) (an) of the statutes is amended to read:

SB70-AA1,558,14 71.05 (1) (an) Uniformed services retirement benefits. All retirement payments received from the U.S. government that relate to service with the coast guard, the commissioned corps of the national oceanic and atmospheric administration, or the commissioned corps of the public health service, to the extent that such payments are not exempt under par. (a) or (am) or sub. (6) (b) 54. or 54m.

SB70-AA1,1225 Section 1225. 71.05 (6) (b) 54. (intro.) of the statutes is amended to read:

SB70-AA1,558,21 71.05 (6) (b) 54. (intro.) Except for a payment that is exempt under sub. (1) (a), (am), or (an), or that is exempt as a railroad retirement benefit, for taxable years beginning after December 31, 2020, and before January 1, 2023, up to $5,000 of payments or distributions received each year by an individual from a qualified retirement plan under the Internal Revenue Code or from an individual retirement account established under 26 USC 408, if all of the following conditions apply:

SB70-AA1,1226 Section 1226. 71.05 (6) (b) 54m. of the statutes is created to read:

SB70-AA1,559,4 71.05 (6) (b) 54m. Except for a payment that is exempt under sub. (1) (a), (am), or (an), or that is exempt as a railroad retirement benefit, for taxable years beginning after December 31, 2022, up to $5,500 of payments or distributions received each year by an individual from a qualified retirement plan under the Internal Revenue Code or from an individual retirement account established under 26 USC 408, if all of the following conditions apply:

SB70-AA1,559,6 a. The individual is at least 65 years of age before the close of the taxable year to which the exemption claim relates.

SB70-AA1,559,9 b. If the individual is single or files as head of household, his or her federal adjusted gross income in the year to which the exemption claim relates is less than $30,000.

SB70-AA1,559,11 c. If the individual is married and is a joint filer, the couple's federal adjusted gross income in the year to which the exemption claim relates is less than $60,000.

SB70-AA1,559,14 d. If the individual is married and files a separate return, the sum of both spouses' federal adjusted gross income in the year to which the exemption claim relates is less than $60,000.

SB70-AA1,1227 Section 1227. 71.83 (1) (a) 6. of the statutes is amended to read:

SB70-AA1,559,21 71.83 (1) (a) 6. `Retirement plans.' Any natural person who is liable for a penalty for federal income tax purposes under section 72 (m) (5), (q), (t), and (v), 4973, 4974, 4975, or 4980A of the Internal Revenue Code is liable for 33 percent of the federal penalty unless the income received is exempt from taxation under s. 71.05 (1) (a) or (6) (b) 54. or 54m. The penalties provided under this subdivision shall be assessed, levied, and collected in the same manner as income or franchise taxes.”.

SB70-AA1,559,22 205. Page 374, line 11: after that line insert:

SB70-AA1,559,24 “ Section 1228. 71.07 (9g) (b) of the statutes is renumbered 71.07 (9g) (b) 1. and amended to read:

SB70-AA1,560,6 71.07 (9g) (b) 1. For taxable years beginning after December 31, 2021, and before January 1, 2023, and 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.

SB70-AA1,1229 Section 1229. 71.07 (9g) (b) 2. of the statutes is created to read:

SB70-AA1,560,13 71.07 (9g) (b) 2. For taxable years beginning after December 31, 2022, and 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 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.”.

SB70-AA1,560,14 206. Page 374, line 11: after that line insert:

SB70-AA1,560,15 “ Section 1230. 71.98 (10) of the statutes is created to read:

SB70-AA1,560,18 71.98 (10) Federal Tax Cuts and Jobs Act. For taxable years beginning after December 31, 2022, sections 11012, 13221, 13301, 13304 (a), (b), and (d), 13531, and 13601 of P.L. 115-97.”.

SB70-AA1,560,19 207. Page 374, line 11: after that line insert:

SB70-AA1,560,20 “ Section 1231. 71.05 (6) (b) 49. a. of the statutes is amended to read:

SB70-AA1,561,2 71.05 (6) (b) 49. a. Subject to the definitions provided in subd. 49. b. to g. and the limitations specified in subd. 49. h. to j. for taxable years beginning after December 31, 2013, and subject to the limitation in subd. 49. k. for taxable years beginning after December 31, 2017, and subject to the limitation in subd. 49. m. for taxable years beginning after December 31, 2022, tuition expenses that are paid by a claimant for tuition for a pupil to attend an eligible institution.

SB70-AA1,1232 Section 1232. 71.05 (6) (b) 49. m. of the statutes is created to read:

SB70-AA1,561,8 71.05 (6) (b) 49. m. For taxable years beginning after December 31, 2022, no modification may be made under this subdivision unless the adjusted gross income of the claimant is less than $100,000 if the claimant is filing as single or head of household, $150,000 if the claimant is married and filing jointly, or $75,000 if the claimant is married and filing separately.”.

SB70-AA1,561,9 208. Page 374, line 11: after that line insert:

SB70-AA1,561,10 “ Section 1233. 71.05 (6) (a) 30. of the statutes is created to read:

SB70-AA1,561,12 71.05 (6) (a) 30. For an account holder, as defined in s. 71.10 (10) (a) 1., or an account holder's estate:

SB70-AA1,561,13 a. Any amount distributed under s. 71.10 (10) (d) 2. or 3.

SB70-AA1,561,18 b. Any amount withdrawn from the account created under s. 71.10 (10) (b) 1. for any reason other than payment or reimbursement of eligible costs, as defined in s. 71.10 (10) (a) 4., except that this subd. 30. b. does not apply to the transfer of funds to another account as described in s. 71.10 (10) (c) 4. or to the disbursement of funds pursuant to a filing for bankruptcy protection under 11 USC 101 et seq.

SB70-AA1,1234 Section 1234. 71.05 (6) (b) 57. of the statutes is created to read:

SB70-AA1,562,3 71.05 (6) (b) 57. For each account an account holder, as defined in s. 71.10 (10) (a) 1., creates under s. 71.10 (10) (b) 1., and subject to s. 71.10 (10) (d), the amount deposited, limited to $5,000, by the account holder into the account during the taxable year and any interest, dividends, and other gains that accrue in the account and are redeposited into it. If the account holder is married and files a joint return, the $5,000 limitation shall be increased to $10,000. The subtraction under this subdivision does not apply to the transfer of funds from another account as described in s. 71.10 (10) (c) 4.

SB70-AA1,1235 Section 1235. 71.10 (4) (k) of the statutes is created to read:

SB70-AA1,562,5 71.10 (4) (k) Any amount computed under s. 71.83 (1) (ch).

SB70-AA1,1236 Section 1236. 71.10 (10) of the statutes is created to read:

SB70-AA1,562,8 71.10 (10) First-time home buyer savings accounts. (a) Definitions. In this subsection:

SB70-AA1,562,10 1. “Account holder” means an individual who creates, individually or jointly with his or her spouse, an account under par. (b) 1.

SB70-AA1,562,12 2. “Allowable closing costs” means disbursements listed in a settlement statement for the purchase of a single-family residence by a beneficiary.

SB70-AA1,562,14 3. “Beneficiary" means a first-time home buyer who is designated by an account holder as the beneficiary of an account created under par. (b) 1.

SB70-AA1,562,16 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.

SB70-AA1,562,21 5. “Financial institution" means a bank, trust company, savings institution, savings bank, savings and loan association, industrial loan association, consumer finance company, credit union, benefit association, insurance company, safe deposit company, money market mutual fund, or similar entity authorized to do business in this state.

SB70-AA1,562,25 6. “First-time home buyer” 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.

SB70-AA1,563,3 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.

SB70-AA1,563,12 (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 home buyer. 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.

SB70-AA1,563,14 2. An individual may jointly own an account created under subd. 1 with his or her spouse.

SB70-AA1,563,16 3. Only cash and marketable securities may be contributed to an account created under subd. 1.

SB70-AA1,563,19 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) 57. may be made only by the account holder.

SB70-AA1,563,23 (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.

SB70-AA1,564,3 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.

SB70-AA1,564,7 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:

SB70-AA1,564,9 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.

SB70-AA1,564,10 b. The 1099 form issued by the financial institution that relates to the account.

SB70-AA1,564,12 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.