AB43: Bill Text

AB43,,3562 b. Subtract from 1.0 the amount that is calculated under subd. 4. a.

AB43,,3563 c. Multiply the amount that is calculated under subd. 4. b. by 10 percent.

AB43,,3564 d. Multiply the amount of the married couple’s net income tax liability by the amount that is calculated under subd. 4. c.

AB43,,3565 5. If the claimant is married and filing separately and his or her adjusted gross income is less than $75,000 in the year to which the claim relates, the greater of $50 or an amount equal to 10 percent of his or her net tax liability.

AB43,,3566 6. If the claimant is married and filing separately and his or her adjusted gross income is at least $75,000 but less than $87,500 in the year to which the claim relates, an amount that is calculated as follows:

AB43,,3567 a. Calculate the value of a fraction, the denominator of which is $12,500 and the numerator of which is the difference between the claimant’s adjusted gross income and $75,000.

AB43,,3568 b. Subtract from 1.0 the amount that is calculated under subd. 6. a.

AB43,,3569 c. Multiply the amount that is calculated under subd. 6. b. by 10 percent.

AB43,,3570 d. Multiply the amount of the claimant’s net income tax liability by the amount that is calculated under subd. 6. c.

AB43,,3571 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the period under s. 71.75 (2).

AB43,,3572 2. Part-year residents and nonresidents of this state are not eligible for the credit under this subsection.

AB43,,3573 3. Except as provided in subd. 4., only one credit per household is allowed each year.

AB43,,3574 4. If a married couple files separately, each spouse may claim the credit calculated under par. (b) 5. or 6., except a married person living apart from the other spouse and treated as single under section 7703 (b) of the Internal Revenue Code may claim the credit under par. (b) 1. or 2.

AB43,,3575 5. The credit under this subsection may not be claimed by a person who may be claimed as a dependent on the individual income tax return of another taxpayer.

AB43,,3576 (d) Administration. The department of revenue may enforce the credit under this subsection and may take any action, conduct any proceeding, and proceed as it is authorized in respect to taxes under this chapter. The income tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest, and penalties apply to the credit under this subsection.

AB43,1412 Section 1412. 71.07 (5n) (a) 5. a. of the statutes is amended to read:

AB43,,3578 71.07 (5n) (a) 5. a. “Manufacturing property factor” means a fraction, the numerator of which is the average value of the claimant’s real and personal land and depreciable property assessed under s. 70.995, owned or rented and used in this state by the claimant during the taxable year to manufacture qualified production property, and the denominator of which is the average value of all the claimant’s real and personal land and depreciable property owned or rented during the taxable year and used by the claimant to manufacture qualified production property.

AB43,1413 Section 1413. 71.07 (5n) (a) 5. d. of the statutes is repealed.

AB43,1414 Section 1414. 71.07 (5n) (a) 9. (intro.) of the statutes is amended to read:

AB43,,3581 71.07 (5n) (a) 9. (intro.) “Qualified production property” means either any of the following:

AB43,1415 Section 1415. 71.07 (5n) (a) 9. a. of the statutes is amended to read:

AB43,,3583 71.07 (5n) (a) 9. a. Tangible personal property manufactured in whole or in part by the claimant on property that is located in this state and assessed as manufacturing property under s. 70.995. Tangible personal property manufactured in this state may only be qualified production property if it is manufactured on property approved to be classified as manufacturing real property for purposes of s. 70.995, even if it is not eligible to be listed on the department’s manufacturing roll until January 1 of the following year.

AB43,1416 Section 1416. 71.07 (5n) (a) 9. c. of the statutes is created to read:

AB43,,3585 71.07 (5n) (a) 9. c. Tangible personal property manufactured in whole or in part by the claimant at an establishment that is located in this state and classified as manufacturing under s. 70.995 (5n). A person wishing to classify the person’s establishment as manufacturing under this subd. 9. c. shall file an application in the form and manner prescribed by the department no later than July 1 of the taxable year for which the person wishes to claim the credit under this subsection, pursuant to s. 70.995 (5n). The department shall make a determination and provide written notice by December 31 of the year in which the application is filed. A determination on the classification under this subd. 9. c. may be appealed as provided under s. 70.995 (5n).

AB43,1417 Section 1417. 71.07 (5n) (d) 2. of the statutes is amended to read:

AB43,,3587 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.

****Note: This is reconciled s. 71.07 (5n) (d) 2. This Section has been affected by drafts with the following LRB numbers: -1325/P1 and -1739/P2.

AB43,1418 Section 1418. 71.07 (5n) (d) 2m. of the statutes is created to read:

AB43,,3589 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.

****Note: This is reconciled s. 71.07 (5n) (d) 2m. This Section has been affected by drafts with the following LRB numbers: -1325/P1 and -1739/P2.

AB43,1419 Section 1419. 71.07 (6e) (a) 2. b. of the statutes is amended to read:

AB43,,3591 71.07 (6e) (a) 2. b. An individual who had served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces; who was a resident of this state at the time of entry into that active service or who had been a resident of this state for any consecutive 5-year period after entry into that active duty service; who was a resident of this state at the time of his or her death; and who had either a service-connected disability rating of 100 at least 70 percent under 38 USC 1114 or 1134 or a 100 percent disability rating based on individual unemployability.

AB43,1420 Section 1420. 71.07 (6e) (a) 3. d. of the statutes is amended to read:

AB43,,3593 71.07 (6e) (a) 3. d. Has either a service-connected disability rating of 100 at least 70 percent under 38 USC 1114 or 1134 or a 100 percent disability rating based on individual unemployability.

AB43,1421 Section 1421. 71.07 (6e) (a) 5. of the statutes is amended to read:

AB43,,3595 71.07 (6e) (a) 5. “Property taxes” means real and personal property taxes, exclusive of special assessments, delinquent interest, and charges for service, paid by a claimant, and the claimant’s spouse if filing a joint return, on the eligible veteran’s or unremarried surviving spouse’s principal dwelling in this state during the taxable year for which credit under this subsection is claimed, less any property taxes paid which are properly includable as a trade or business expense under section 162 of the Internal Revenue Code. If the principal dwelling on which the taxes were paid is owned by 2 or more persons or entities as joint tenants or tenants in common or is owned by spouses as marital property, “property taxes” is that part of property taxes paid that reflects the ownership percentage of the claimant, except that this limitation does not apply to spouses who file a joint return. If the principal dwelling is sold during the taxable year, the “property taxes” for the seller and buyer shall be the amount of the tax prorated to each in the closing agreement pertaining to the sale or, if not so provided for in the closing agreement, the tax shall be prorated between the seller and buyer in proportion to months of their respective ownership. “Property taxes” includes monthly municipal permit fees in respect to a principal dwelling collected under s. 66.0435 (3) (c).

AB43,1422 Section 1422. 71.07 (6e) (a) 6. of the statutes is created to read:

AB43,,3597 71.07 (6e) (a) 6. “Rent constituting property taxes” has the meaning given in sub. (9) (a) 4.

AB43,1423 Section 1423. 71.07 (6e) (b) of the statutes is amended to read:

AB43,,3599 71.07 (6e) (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 the amount of the claimant’s property taxes or rent constituting property taxes. If the allowable amount of the claim exceeds the income taxes otherwise due on the claimant’s income, the amount of the claim not used as an offset against those taxes shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft, or other draft from the appropriation under s. 20.835 (2) (em).

AB43,1424 Section 1424. 71.07 (6e) (c) 3. of the statutes is amended to read:

AB43,,3601 71.07 (6e) (c) 3. If an eligible veteran and an eligible spouse file separate returns, each spouse may claim a credit under this subsection for property taxes based on their respective ownership interest in the eligible veteran’s principal dwelling or for rent constituting property taxes based on 50 percent of the total rent constituting property taxes paid during the taxable year for the eligible veteran’s principal dwelling.

AB43,1425 Section 1425. 71.07 (6e) (c) 4. of the statutes is created to read:

AB43,,3603 71.07 (6e) (c) 4. If a service-connected disability rating is less than 100 percent, the amount that the claimant may claim under this subsection shall be multiplied by a percentage that equals that service-connected disability rating.

AB43,1426 Section 1426. 71.07 (8b) (a) 5. of the statutes is amended to read:

AB43,,3605 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.

AB43,1427 Section 1427. 71.07 (8b) (a) 7. of the statutes is amended to read:

AB43,,3607 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.

AB43,1428 Section 1428. 71.07 (8m) of the statutes is created to read:

AB43,,3609 71.07 (8m) Universal changing station credit. (a) Definitions. In this subsection:

AB43,,3610 1. “Claimant” means a sole proprietor, a partner of a partnership, a member of a limited liability company, or a shareholder of a tax-option corporation who files a claim under this subsection and meets either of the following conditions during the preceding taxable year:

AB43,,3611 a. Had gross receipts that did not exceed $1,000,000.

AB43,,3612 b. Employed no more than 30 full-time employees.

AB43,,3613 2. “Full-time employee” means an individual who is employed for at least 30 hours per week for 20 or more calendar weeks during a taxable year.

AB43,,3614 3. “Universal changing station” means a powered and height-adjustable adult changing table that is either floor mounted or wall mounted with a safety rail and can be used by an individual with a disability of either sex and the individual’s care provider for personal hygiene and that satisfies all of the following:

AB43,,3615 a. The changing table can lower to a height of 8 inches and raise to a height of 34 inches.

AB43,,3616 b. The changing table is at least 31 inches wide by 72 inches long.

AB43,,3617 c. The changing table supports at least 350 pounds.

AB43,,3618 (b) Filing claims. For taxable years beginning after December 31, 2022, 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 amount the claimant paid during the taxable year to install a universal changing station.

AB43,,3619 (c) Limitations. 1. No credit may be claimed under this subsection unless the universal changing station is installed in a single-occupant restroom that measures at least 8 feet by 10 feet, with adequate space for a wheelchair and a care provider to maneuver; that is equipped with a waste receptacle, a toilet, a lavatory, a soap dispenser, and a paper towel dispenser; and that complies with accessibility standards under the federal Americans with Disabilities Act.

AB43,,3620 2. The credit claimed under this subsection may not exceed $5,125.

AB43,,3621 3. 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 the amounts paid by the entity. 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, and shareholders may claim the credit in proportion to their ownership interests.

AB43,,3622 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB43,1429 Section 1429. 71.07 (8p) of the statutes is created to read:

AB43,,3624 71.07 (8p) Family caregiver tax credit. (a) Definitions. In this subsection:

AB43,,3625 1. “Claimant” means an individual who files a claim under this subsection for amounts paid for qualified expenses to benefit a qualified family member.

AB43,,3626 2. “Physician” has the meaning given in s. 36.60 (1) (b).

AB43,,3627 3. “Qualified expenses” means amounts paid by a claimant in the year to which the claim relates for items that relate directly to the care or support of a qualified family member, including the following:

AB43,,3628 a. The improvement or alteration of the claimant’s primary residence to enable or assist the qualified family member to be mobile, safe, or independent.

AB43,,3629 b. The purchase or lease of equipment to enable or assist the qualified family member to carry out one or more activities of daily living.

AB43,,3630 c. The acquisition of goods or services, or support, to assist the claimant in caring for the qualified family member, including employing a home care aide or personal care attendant, adult day care, specialized transportation, legal or financial services, or assistive care technology.

AB43,,3631 4. “Qualified family member” means an individual to whom all of the following apply:

AB43,,3632 a. The individual is at least 18 years of age during the taxable year to which the claim relates.

AB43,,3633 b. The individual requires assistance with one or more daily living activities, as certified in writing by a physician.

AB43,,3634 c. The individual is the claimant’s family member, as defined in s. 46.2805 (6m).

AB43,,3635 (b) Filing claims. 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, 50 percent of the claimant’s qualified expenses.

AB43,,3636 (c) Limitations. 1. Subject to subds. 2. and 3., the maximum credit that may be claimed under this subsection each taxable year with regard to a particular qualified family member is $500 or, if a claimant is married and filing a separate return, $250. If more than one individual may file a claim under this subsection for a particular qualified family member, the maximum credit specified in this subdivision shall be apportioned among all eligible claimants based on the ratio of their qualified expenses to the total amount of all qualified expenses incurred on behalf of that particular qualified family member, as determined by the department.

AB43,,3637 2. If the claimant is married and filing jointly and the couple’s federal adjusted gross income in the taxable year exceeds $170,000, no credit may be claimed under this subsection. If the claimant is married and filing jointly and the couple’s federal adjusted gross income in the taxable year exceeds $150,000, but does not exceed $170,000, the credit claimed under this subsection may not exceed the amount determined as follows:

AB43,,3638 a. Determine the amount allowed under par. (b) without regard to this subdivision but with regard to subd. 1.

AB43,,3639 b. Subtract $150,000 from the couple’s federal adjusted gross income.

AB43,,3640 c. Divide the amount determined under subd. 2. b. by $20,000.

AB43,,3641 d. Multiple the amount determined under subd. 2. a. by the amount determined under subd. 2. c.

AB43,,3642 e. Subtract the amount determined under subd. 2. d. from the amount determined under subd. 2. a.

AB43,,3643 3. If the claimant files as a single individual or head of household, or is married and files separately, and the claimant’s federal adjusted gross income in the taxable year exceeds $85,000, no credit may be claimed under this subsection. If the claimant files as a single individual or head of household, or is married and files separately, and the claimant’s federal adjusted gross income in the taxable year exceeds $75,000, but does not exceed $85,000, the credit claimed under this subsection may not exceed the amount determined as follows:

AB43,,3644 a. Determine the amount allowed under par. (b) without regard to this subdivision but with regard to subd. 1.

AB43,,3645 b. Subtract $75,000 from the claimant’s federal adjusted gross income.

AB43,,3646 c. Divide the amount determined under subd. 3. b. by $10,000.

AB43,,3647 d. Multiple the amount determined under subd. 3. a. by the amount determined under subd. 3. c.

AB43,,3648 e. Subtract the amount determined under subd. 3. d. from the amount determined under subd. 3. a.