Amendment AA19-ASA2-AB50

AB50-ASA2-AA19,30,5 “Section 69. 71.05 (6) (b) 4. (intro.) of the statutes is amended to read:

AB50-ASA2-AA19,30,19 71.05 (6) (b) 4. (intro.) Disability For taxable years beginning before January 1, 2025, disability payments other than disability payments that are paid from a retirement plan, the payments from which are exempt under subd. 54. 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:

AB50-ASA2-AA19,70 Section 70. 71.05 (6) (b) 4m. of the statutes is created to read:

AB50-ASA2-AA19,31,11 71.05 (6) (b) 4m. For taxable years beginning after December 31, 2024, disability payments other than disability payments that are paid from a retirement plan, the payments from which are exempt under subd. 54. 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:

AB50-ASA2-AA19,31,15 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.

AB50-ASA2-AA19,31,19 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.

AB50-ASA2-AA19,31,23 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.”.

AB50-ASA2-AA19,32,1 15. At the appropriate places, insert all of the following:

AB50-ASA2-AA19,32,2 “Section 71. 71.05 (6) (b) 59. of the statutes is created to read:

AB50-ASA2-AA19,32,6 71.05 (6) (b) 59. For taxable years beginning after December 31, 2026, to the extent not otherwise excluded from Wisconsin taxable income if not for this subdivision, the amount of membership dues and expenses paid by the claimant during the taxable year to a labor organization, as defined in s. 5.02 (8m).”.

AB50-ASA2-AA19,32,7 16. At the appropriate places, insert all of the following:

AB50-ASA2-AA19,32,8 “Section 72. 71.54 (1) (g) (intro.) of the statutes is amended to read:

AB50-ASA2-AA19,32,11 71.54 (1) (g) 2012 and thereafter to 2025. (intro.) The amount of any claim filed in 2012 and thereafter to 2025 and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:

AB50-ASA2-AA19,73 Section 73. 71.54 (1) (g) 4. of the statutes is amended to read:

AB50-ASA2-AA19,32,19 71.54 (1) (g) 4. Except as provided in subds. 5. and 7., for For claims filed in 2018 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year, no credit may be allowed under this paragraph if the claimant has no earned income in the taxable year to which the claim relates unless the claimant is disabled and provides the proof required under subd. 6. or the claimant or the claimant’s spouse is over the age of 61 at the close of the year to which the claim relates.

AB50-ASA2-AA19,74 Section 74. 71.54 (1) (g) 5. of the statutes is repealed.

AB50-ASA2-AA19,75 Section 75. 71.54 (1) (g) 6. (intro.) of the statutes is amended to read:

AB50-ASA2-AA19,33,2 71.54 (1) (g) 6. (intro.) With regard to a claimant who is disabled, the A claimant who is disabled shall provide with his or her return proof that his or her disability is in effect for the taxable year to which the claim relates. Proof of disability may be demonstrated by any of the following:

AB50-ASA2-AA19,76 Section 76. 71.54 (1) (g) 7. of the statutes is repealed.

AB50-ASA2-AA19,77 Section 77. 71.54 (1) (h) of the statutes is created to read:

AB50-ASA2-AA19,33,7 71.54 (1) (h) 2026 and thereafter. Subject to sub. (2m), the amount of any claim filed in 2026 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:

AB50-ASA2-AA19,33,11 1. If the household income was $19,000 or less in the year to which the claim relates, the claim is limited to 80 percent of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant’s homestead.

AB50-ASA2-AA19,33,16 2. If the household income was more than $19,000 in the year to which the claim relates, the claim is limited to 80 percent of the amount by which the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant’s homestead exceeds 7.891 percent of the household income exceeding $19,000.

AB50-ASA2-AA19,33,17 3. No credit may be allowed if the household income exceeds $37,500.

AB50-ASA2-AA19,33,19 4. Notwithstanding the time limitations described in par. (g) (intro.), the provisions of par. (g) 4. apply to claims filed under this paragraph.

AB50-ASA2-AA19,78 Section 78. 71.54 (2) (b) 4. of the statutes is amended to read:

AB50-ASA2-AA19,33,22 71.54 (2) (b) 4. In calendar years 2011 or any subsequent calendar year to 2024, $1,460.

AB50-ASA2-AA19,79 Section 79. 71.54 (2) (b) 5. of the statutes is created to read:

AB50-ASA2-AA19,34,2 71.54 (2) (b) 5. Subject to sub. (2m), in calendar year 2025 or any subsequent calendar year, $1,460.

AB50-ASA2-AA19,80 Section 80. 71.54 (2m) of the statutes is amended to read:

AB50-ASA2-AA19,34,21 71.54 (2m) Indexing for inflation; 2010 2026 and thereafter. (a) For calendar years beginning after December 31, 2009, and before January 1, 2011 2025, the dollar amounts of the threshold income under sub. (1) (f) (h) 1. and 2., the maximum household income under sub. (1) (f) (h) 3., and the maximum property taxes under sub. (2) (b) 3. 5. shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the 12-month average of the U.S. consumer price index for the month of August of the year before the previous year through the month of July of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the 12-month average of the U.S. consumer price index for August 2007 through July 2008 2024, as determined by the federal department of labor, except that the adjustment may occur only if the percentage is a positive number. Each amount that is revised under this paragraph shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this paragraph and incorporate the changes into the income tax forms and instructions.

AB50-ASA2-AA19,35,4 (b) The department of revenue shall annually adjust the slope under sub. (1) (f) (h) 2. such so that, as a claimant’s income increases from the threshold income as calculated adjusted under par. (a), to an amount that exceeds the maximum household income as calculated adjusted under par. (a), the credit that may be claimed is reduced to $0, and the department of revenue shall incorporate the changes into the income tax forms and instructions.

AB50-ASA2-AA19,9337 Section 9337. Initial applicability; Revenue.

AB50-ASA2-AA19,35,7 (1) Homestead tax credit. The treatment of s. 71.54 (1) (h) first applies to claims filed for taxable years beginning after December 31, 2024.”.

AB50-ASA2-AA19,35,8 17. At the appropriate places, insert all of the following:

AB50-ASA2-AA19,35,9 “Section 81. 71.05 (6) (a) 30. of the statutes is created to read:

AB50-ASA2-AA19,35,14 71.05 (6) (a) 30. For taxable years beginning after December 31, 2024, any amount distributed during the taxable year from a catastrophe savings account, as described in s. 224.28, that was not used to pay an expense described in s. 224.28 (3), except that this subdivision applies only to amounts for which a subtraction was made under par. (b) 57. or 58.

AB50-ASA2-AA19,82 Section 82. 71.05 (6) (b) 57. of the statutes is created to read:

AB50-ASA2-AA19,35,20 71.05 (6) (b) 57. For taxable years beginning after December 31, 2024, any increase in the value of a catastrophe savings account, as described in s. 224.28, other than from a deposit into the account, except that the subtraction under this subdivision may not be claimed by an account owner who has made a withdrawal from the account that was not used to pay an expense described in s. 224.28 (3).

AB50-ASA2-AA19,83 Section 83. 71.05 (6) (b) 58. of the statutes is created to read:

AB50-ASA2-AA19,36,2 71.05 (6) (b) 58. For taxable years beginning after December 31, 2024, an amount equal to any deposit made during the taxable year to a catastrophe savings account, as described in s. 224.28, by the account owner. The subtraction made under this subdivision may not exceed an amount equal to the amount specified for the account owner under s. 224.28 (4).

AB50-ASA2-AA19,84 Section 84. 224.28 of the statutes is created to read:

AB50-ASA2-AA19,36,4 224.28 Catastrophe savings accounts. (1) In this section:

AB50-ASA2-AA19,36,5 (a) “Account” has the meaning given in s. 705.01 (1).

AB50-ASA2-AA19,36,6 (b) “Catastrophic event” means any of the following:

AB50-ASA2-AA19,36,7 1. A tornado.

AB50-ASA2-AA19,36,8 2. A hurricane.

AB50-ASA2-AA19,36,10 3. A severe storm that results in flooding, damaging hail, extreme wind, or extremely cold temperatures.

AB50-ASA2-AA19,36,11 (c) “Financial institution” has the meaning given in s. 705.01 (3).

AB50-ASA2-AA19,36,13 (d) “Policy” means an insurance policy that includes coverage for loss or damage to property resulting from a catastrophic event.

AB50-ASA2-AA19,36,14 (e) “Record” has the meaning given in s. 137.11 (12).

AB50-ASA2-AA19,36,16 (2) A person may designate an account established by the person at a financial institution as a catastrophe savings account if all of the following apply:

AB50-ASA2-AA19,36,20 (a) The account is identified in the financial institution’s records as a catastrophe savings account or the person, at the time the account is established, creates a record that the account is a catastrophe savings account and then retains this record.

AB50-ASA2-AA19,36,23 (b) The account is established solely to hold savings to be used for the purposes under sub. (3) and no deposits are made in the account other than deposits intended to be used for the purposes under sub. (3).

AB50-ASA2-AA19,37,2 (3) Deposits in a catastrophe savings account may be withdrawn from the account only for any of the following purposes:

AB50-ASA2-AA19,37,5 (a) To pay for repair costs or other losses relating to damage to the account owner’s property caused by a catastrophic event to the extent the costs or losses are not covered by a policy or are self-insured losses.

AB50-ASA2-AA19,37,7 (b) To pay any portion of a policy’s deductible relating to damage to the account owner’s property caused by a catastrophic event.

AB50-ASA2-AA19,37,10 (4) If a person who establishes a catastrophe savings account maintains a policy providing coverage for a catastrophic event, the annual deposits in the catastrophe savings account may not exceed the following:

AB50-ASA2-AA19,37,11 (a) If the policy deductible is not more than $1,000, $2,000.

AB50-ASA2-AA19,37,13 (b) If the policy deductible exceeds $1,000, $15,000 or twice the amount of the policy deductible, whichever is less.

AB50-ASA2-AA19,37,17 (5) A catastrophe savings account established under sub. (2) may be a joint account, as defined in s. 705.01 (4), or a marital account, as defined in s. 705.01 (4m), but no individual may be an account owner of more than one catastrophe savings account.”.

AB50-ASA2-AA19,37,18 18. At the appropriate places, insert all of the following:

AB50-ASA2-AA19,37,19 “Section 85. 71.07 (6e) (a) 2. b. of the statutes is amended to read:

AB50-ASA2-AA19,38,3 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.

AB50-ASA2-AA19,86 Section 86. 71.07 (6e) (a) 3. d. of the statutes is amended to read:

AB50-ASA2-AA19,38,7 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.

AB50-ASA2-AA19,87 Section 87. 71.07 (6e) (c) 4. of the statutes is created to read:

AB50-ASA2-AA19,38,11 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.

AB50-ASA2-AA19,9337 Section 9337. Initial applicability; Revenue.

AB50-ASA2-AA19,38,15 (1) Veterans property tax credit expansion. The treatment of s. 71.07 (6e) (a) 2. b. and 3. d. and (c) 4. first applies to taxable years beginning after December 31, 2024.”.

AB50-ASA2-AA19,38,16 19. At the appropriate places, insert all of the following:

AB50-ASA2-AA19,38,17 “Section 88. 71.07 (6e) (a) 6. of the statutes is created to read:

AB50-ASA2-AA19,38,19 71.07 (6e) (a) 6. “Rent constituting property taxes” has the meaning given in sub. (9) (a) 4.

AB50-ASA2-AA19,89 Section 89. 71.07 (6e) (b) of the statutes is amended to read:

AB50-ASA2-AA19,39,5 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).

AB50-ASA2-AA19,90 Section 90. 71.07 (6e) (c) 3. of the statutes is amended to read:

AB50-ASA2-AA19,39,12 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.

AB50-ASA2-AA19,9337 Section 9337. Initial applicability; Revenue.

AB50-ASA2-AA19,39,16 (1) Veterans and surviving spouses property tax credit. The treatment of s. 71.07 (6e) (a) 6., (b), and (c) 3. first applies to taxable years beginning after December 31, 2024.”.

AB50-ASA2-AA19,39,17 20. At the appropriate places, insert all of the following:

AB50-ASA2-AA19,39,18 “Section 91. 71.07 (8m) of the statutes is created to read:

AB50-ASA2-AA19,39,20 71.07 (8m) Universal changing station credit. (a) Definitions. In this subsection:

AB50-ASA2-AA19,40,2 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:

AB50-ASA2-AA19,40,3 a. Had gross receipts that did not exceed $1,000,000.

AB50-ASA2-AA19,40,4 b. Employed no more than 30 full-time employees.

AB50-ASA2-AA19,40,6 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.

AB50-ASA2-AA19,40,10 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:

AB50-ASA2-AA19,40,12 a. The changing table can lower to a height of 8 inches and raise to a height of 34 inches.

AB50-ASA2-AA19,40,13 b. The changing table is at least 31 inches wide by 72 inches long.