Amendment AA1-SB70

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.

SB70-AA1,564,17 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.

SB70-AA1,564,20 (d) Limitations on accounts, dissolution. 1. An account holder may not claim a subtraction under s. 71.05 (6) (b) 57. for more than a total of $50,000 of deposits into any account created under par. (b) 1. for each beneficiary.

SB70-AA1,564,23 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.

SB70-AA1,565,3 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.

SB70-AA1,565,4 (e) Department responsibilities. The department shall:

SB70-AA1,565,7 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) 57.

SB70-AA1,565,9 2. Prepare and distribute to financial institutions and potential home buyers informational materials about the accounts described in this subsection.

SB70-AA1,1237 Section 1237. 71.83 (1) (ch) of the statutes is created to read:

SB70-AA1,565,17 71.83 (1) (ch) First-time home buyer savings account withdrawals. If an account holder, as defined under s. 71.10 (10) (a) 1., or an account holder's estate is required to add any amount to federal adjusted gross income under s. 71.05 (6) (a) 30., the account holder or the account holder's estate shall also pay an amount equal to 10 percent of the amount that is added to income under s. 71.05 (6) (a) 30. The department of revenue shall assess, levy, and collect the penalty under this paragraph as it assesses, levies, and collects taxes under this chapter.

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

SB70-AA1,565,21 (6s) First-time home buyer savings account. The treatment of ss. 71.05 (6) (a) 30. and (b) 57., 71.10 (4) (k) and (10), and 71.83 (1) (ch) first applies to taxable years beginning on January 1, 2023.”.

SB70-AA1,565,22 209. Page 374, line 11: after that line insert:

SB70-AA1,565,23 “ Section 1. 71.98 (1) (c) of the statutes is created to read:

SB70-AA1,566,2 71.98 (1) (c) Consolidated Appropriations Act of 2023. For taxable years beginning after December 31, 2022, division T of P.L. 117-328.”.

SB70-AA1,566,3 210. Page 374, line 11: after that line insert:

SB70-AA1,566,4 “ Section 1238. 71.07 (8b) (a) 5. of the statutes is amended to read:

SB70-AA1,566,9 71.07 (8b) (a) 5. “Credit period” means the period of 6 10 taxable years beginning with the taxable year in which a qualified development is placed in service. For purposes of this subdivision, if a qualified development consists of more than one building, the qualified development is placed in service in the taxable year in which the last building of the qualified development is placed in service.

SB70-AA1,1239 Section 1239. 71.07 (8b) (a) 7. of the statutes is amended to read:

SB70-AA1,566,20 71.07 (8b) (a) 7. “Qualified development” means a qualified low-income housing project under section 42 (g) of the Internal Revenue Code that is financed with tax-exempt bonds, pursuant to section 42 (i) (2) described in section 42 (h) (4) (A) of the Internal Revenue Code, allocated the credit under section 42 of the Internal Revenue Code, and located in this state; except that the authority may waive, in the qualified allocation plan under section 42 (m) (1) (B) of the Internal Revenue Code, the requirements of tax-exempt bond financing and federal credit allocation to the extent the authority anticipates that sufficient volume cap under section 146 of the Internal Revenue Code will not be available to finance low-income housing projects in any year.

SB70-AA1,1240 Section 1240. 71.28 (8b) (a) 5. of the statutes is amended to read:

SB70-AA1,567,2 71.28 (8b) (a) 5. “Credit period” means the period of 6 10 taxable years beginning with the taxable year in which a qualified development is placed in service. For purposes of this subdivision, if a qualified development consists of more than one building, the qualified development is placed in service in the taxable year in which the last building of the qualified development is placed in service.

SB70-AA1,1241 Section 1241. 71.28 (8b) (a) 7. of the statutes is amended to read:

SB70-AA1,567,13 71.28 (8b) (a) 7. “Qualified development” means a qualified low-income housing project under section 42 (g) of the Internal Revenue Code that is financed with tax-exempt bonds, pursuant to section 42 (i) (2) described in section 42 (h) (4) (A) of the Internal Revenue Code, allocated the credit under section 42 of the Internal Revenue Code, and located in this state; except that the authority may waive, in the qualified allocation plan under section 42 (m) (1) (B) of the Internal Revenue Code, the requirements of tax-exempt bond financing and federal credit allocation to the extent the authority anticipates that sufficient volume cap under section 146 of the Internal Revenue Code will not be available to finance low-income housing projects in any year.

SB70-AA1,1242 Section 1242. 71.47 (8b) (a) 5. of the statutes is amended to read:

SB70-AA1,567,19 71.47 (8b) (a) 5. “Credit period” means the period of 6 10 taxable years beginning with the taxable year in which a qualified development is placed in service. For purposes of this subdivision, if a qualified development consists of more than one building, the qualified development is placed in service in the taxable year in which the last building of the qualified development is placed in service.

SB70-AA1,1243 Section 1243. 71.47 (8b) (a) 7. of the statutes is amended to read:

SB70-AA1,568,5 71.47 (8b) (a) 7. “Qualified development” means a qualified low-income housing project under section 42 (g) of the Internal Revenue Code that is financed with tax-exempt bonds, pursuant to section 42 (i) (2) described in section 42 (h) (4) (A) of the Internal Revenue Code, allocated the credit under section 42 of the Internal Revenue Code, and located in this state; except that the authority may waive, in the qualified allocation plan under section 42 (m) (1) (B) of the Internal Revenue Code, the requirements of tax-exempt bond financing and federal credit allocation to the extent the authority anticipates that sufficient volume cap under section 146 of the Internal Revenue Code will not be available to finance low-income housing projects in any year.

SB70-AA1,1244 Section 1244. 76.639 (1) (e) of the statutes is amended to read:

SB70-AA1,568,11 76.639 (1) (e) “Credit period” means the period of 6 10 taxable years beginning with the taxable year in which a qualified development is placed in service. For purposes of this paragraph, if a qualified development consists of more than one building, the qualified development is placed in service in the taxable year in which the last building of the qualified development is placed in service.

SB70-AA1,1245 Section 1245. 76.639 (1) (g) of the statutes is amended to read:

SB70-AA1,568,22 76.639 (1) (g) “Qualified development” means a qualified low-income housing project under section 42 (g) of the Internal Revenue Code that is financed with tax-exempt bonds, pursuant to section 42 (i) (2) described in section 42 (h) (4) (A) of the Internal Revenue Code, allocated the credit under section 42 of the Internal Revenue Code, and located in this state; except that the authority may waive, in the qualified allocation plan under section 42 (m) (1) (B) of the Internal Revenue Code, the requirements of tax-exempt bond financing and federal credit allocation to the extent the authority anticipates that sufficient volume cap under section 146 of the Internal Revenue Code will not be available to finance low-income housing projects in any year.

SB70-AA1,1246 Section 1246. 234.45 (1) (c) of the statutes is amended to read:

SB70-AA1,569,3 234.45 (1) (c) “Credit period” means the period of 6 10 taxable years beginning with the taxable year in which a qualified development is placed in service. For purposes of this paragraph, if a qualified development consists of more than one building, the qualified development is placed in service in the taxable year in which the last building of the qualified development is placed in service.

SB70-AA1,1247 Section 1247. 234.45 (1) (e) of the statutes is amended to read:

SB70-AA1,569,14 234.45 (1) (e) “Qualified development” means a qualified low-income housing project under section 42 (g) of the Internal Revenue Code that is financed with tax-exempt bonds, pursuant to section 42 (i) (2) described in section 42 (h) (4) (A) of the Internal Revenue Code, allocated the credit under section 42 of the Internal Revenue Code, and located in this state; except that the authority may waive, in the qualified allocation plan under section 42 (m) (1) (B) of the Internal Revenue Code, the requirements of tax-exempt bond financing and federal credit allocation to the extent the authority anticipates that sufficient volume cap under section 146 of the Internal Revenue Code will not be available to finance low-income housing projects in any year.

SB70-AA1,1248 Section 1248. 234.45 (4) of the statutes is amended to read: