Amendment SSA1-AB68

AB68-SSA1,657,6 71.05 (6) (b) 19. d. Reduce For taxable years beginning before January 1, 2021, reduce the amount calculated under subd. 19. b. or c. to the person's aggregate net earnings from a trade or business that are taxable by this state.

AB68-SSA1,1274 Section 1274 . 71.05 (6) (b) 19. dm. of the statutes is created to read:

AB68-SSA1,657,11 71.05 (6) (b) 19. dm. For taxable years beginning after December 31, 2020, reduce the amount calculated under subd. 19.b. or cm. to the person's aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.

AB68-SSA1,1275 Section 1275 . 71.05 (6) (b) 20. of the statutes is repealed.

AB68-SSA1,1276 Section 1276. 71.05 (6) (b) 28. (intro.) of the statutes is amended to read:

AB68-SSA1,657,21 71.05 (6) (b) 28. (intro.) An amount paid by a claimant for tuition expenses and mandatory student fees for a student who is the claimant or who is the claimant's child and the claimant's dependent, as defined under section 152 of the Internal Revenue Code, to attend any university, college, technical college or a school approved under s. 440.52, that is located in Wisconsin or to attend a public vocational school or public institution of higher education in Minnesota under the Minnesota-Wisconsin a reciprocity agreement under s. 36.27 (2r) or 39.47, calculated as follows:

AB68-SSA1,1277 Section 1277. 71.05 (6) (b) 34. of the statutes is amended to read:

AB68-SSA1,658,4 71.05 (6) (b) 34. Any amount of basic, special, and incentive pay income or compensation, as those terms are used in 37 USC chapters 3 and 5, received from the federal government by a person who is a member of a reserve component of the U.S. armed forces, after being called into active federal service under the provisions of 10 USC 12302 (a) or, 10 USC 12304, or 10 USC 12304b, or into special state service authorized by the federal department of defense under 32 USC 502 (f), that is paid to the person for a period of time during which the person is on active duty.

AB68-SSA1,1278 Section 1278. 71.05 (6) (b) 34m. of the statutes is created to read:

AB68-SSA1,658,11 71.05 (6) (b) 34m. For taxable years beginning after December 31, 2020, any amount of pay, as described in s. 321.35, received from this state by a person who is a member of the Wisconsin national guard after being called into state active duty under s. 321.39 that is paid to the person for the period of time during which the person is on state active duty, to the extent that the income is not subtracted under subd. 34.

AB68-SSA1,1279 Section 1279 . 71.05 (6) (b) 36. of the statutes is repealed.

AB68-SSA1,1280 Section 1280 . 71.05 (6) (b) 37. of the statutes is repealed.

AB68-SSA1,1281 Section 1281 . 71.05 (6) (b) 39. of the statutes is repealed.

AB68-SSA1,1282 Section 1282 . 71.05 (6) (b) 40. of the statutes is repealed.

AB68-SSA1,1283 Section 1283 . 71.05 (6) (b) 41. of the statutes is repealed.

AB68-SSA1,1284 Section 1284. 71.05 (6) (b) 43. d. of the statutes is amended to read:

AB68-SSA1,658,20 71.05 (6) (b) 43. d. For taxable years beginning after December 31, 2013, and before January 1, 2021, up to $3,000 if the claimant has one qualified individual and up to $6,000 if the claimant has more than one qualified individual.

AB68-SSA1,1285 Section 1285. 71.05 (6) (b) 49. a. of the statutes is amended to read:

AB68-SSA1,659,2 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, 2020, tuition expenses that are paid by a claimant for tuition for a pupil to attend an eligible institution.

AB68-SSA1,1286 Section 1286 . 71.05 (6) (b) 49. m. of the statutes is created to read:

AB68-SSA1,659,8 71.05 (6) (b) 49. m. For taxable years beginning after December 31, 2020, 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.

AB68-SSA1,1287 Section 1287 . 71.05 (6) (b) 54. of the statutes is created to read:

AB68-SSA1,659,14 71.05 (6) (b) 54. For taxable years beginning after December 31, 2020, the amount of a national service educational award disbursed under 42 USC 12604 during the taxable year for the benefit of an individual. No modification may be claimed under this subdivision for an amount that is subtracted under subd. 28. or deducted under 26 USC 221.

AB68-SSA1,1288 Section 1288 . 71.05 (6) (b) 55. of the statutes is created to read:

AB68-SSA1,659,23 71.05 (6) (b) 55. 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.

AB68-SSA1,1289 Section 1289. 71.05 (8) (a) of the statutes is amended to read:

AB68-SSA1,660,7 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.

AB68-SSA1,1290 Section 1290. 71.05 (8) (b) 1. of the statutes is renumbered 71.05 (8) (b) and amended to read:

AB68-SSA1,660,24 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.

AB68-SSA1,1291 Section 1291. 71.05 (8) (b) 2. of the statutes is repealed.

AB68-SSA1,1292 Section 1292. 71.05 (8) (c) of the statutes is repealed.

AB68-SSA1,1293 Section 1293 . 71.05 (22) (a) (title) of the statutes is amended to read:

AB68-SSA1,661,4 71.05 (22) (a) (title) Election of deductions; husband and wife spousal deductions.

AB68-SSA1,1294 Section 1294. 71.06 (1q) (intro.) of the statutes is amended to read:

AB68-SSA1,661,11 71.06 (1q) Fiduciaries, single individuals, and heads of households; after 2012 2013 to 2021. (intro.) The tax to be assessed, levied, and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households shall be computed at the following rates for taxable years beginning after December 31, 2012, and before January 1, 2022:

AB68-SSA1,1295 Section 1295. 71.06 (1r) of the statutes is created to read:

AB68-SSA1,661,17 71.06 (1r) Fiduciaries, single individuals, and heads of households; after 2021. The tax to be assessed, levied, and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households shall be computed at the following rates for taxable years beginning after December 31, 2021:

AB68-SSA1,661,18 (a) On all taxable income from $0 to $11,970, 3.54 percent.

AB68-SSA1,661,20 (b) On all taxable income exceeding $11,970 but not exceeding $23,930, 4.65 percent.

AB68-SSA1,661,22 (c) On all taxable income exceeding $23,930 but not exceeding $150,000, 5.20 percent.

AB68-SSA1,661,24 (d) On all taxable income exceeding $150,000 but not exceeding $263,480, 6.27 percent.

AB68-SSA1,661,25 (e) On all taxable income exceeding $263,480, 7.65 percent.

AB68-SSA1,1296 Section 1296. 71.06 (2) (i) (intro.) of the statutes is amended to read:

AB68-SSA1,662,3 71.06 (2) (i) (intro.) For joint returns, for taxable years beginning after December 31, 2012, and before January 1, 2022:

AB68-SSA1,1297 Section 1297. 71.06 (2) (j) (intro.) of the statutes is amended to read:

AB68-SSA1,662,6 71.06 (2) (j) (intro.) For married persons filing separately, for taxable years beginning after December 31, 2012, and before January 1, 2022:

AB68-SSA1,1298 Section 1298. 71.06 (2) (k) of the statutes is created to read:

AB68-SSA1,662,9 71.06 (2) (k) For joint returns, for taxable years beginning after December 31, 2021:

AB68-SSA1,662,10 1. On all taxable income from $0 to $23,930, 3.54 percent.

AB68-SSA1,662,12 2. On all taxable income exceeding $23,930 but not exceeding $47,880, 4.65 percent.

AB68-SSA1,662,14 3. On all taxable income exceeding $47,880 but not exceeding $300,000, 5.20 percent.

AB68-SSA1,662,16 4. On all taxable income exceeding $300,000 but not exceeding $526,960, 6.27 percent.

AB68-SSA1,662,17 5. On all taxable income exceeding $526,960, 7.65 percent.

AB68-SSA1,1299 Section 1299. 71.06 (2) (L) of the statutes is created to read:

AB68-SSA1,662,20 71.06 (2) (L) For married persons filing separately, for taxable years beginning after December 31, 2021:

AB68-SSA1,662,21 1. On all taxable income from $0 to $11,970, 3.54 percent.

AB68-SSA1,662,23 2. On all taxable income exceeding $11,970 but not exceeding $23,930, 4.65 percent.

AB68-SSA1,662,25 3. On all taxable income exceeding $23,930 but not exceeding $150,000, 5.20 percent.

AB68-SSA1,663,2 4. On all taxable income exceeding $150,000 but not exceeding $263,480, 6.27 percent.

AB68-SSA1,663,3 5. On all taxable income exceeding $263,480, 7.65 percent.

AB68-SSA1,1300 Section 1300. 71.06 (2e) (a) of the statutes is amended to read:

AB68-SSA1,663,25 71.06 (2e) (a) For taxable years beginning after December 31, 1998, and before January 1, 2000, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2) (c) and (d), and for taxable years beginning after December 31, 1999, and before January 1, 2022, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1n), (1p) (a) to (c), (1q) (a) and (b), and (2) (e), (f), (g) 1. to 3., (h) 1. to 3., (i) 1. and 2., and (j) 1. and 2., 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 month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1997, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2000, and before January 1, 2002, the dollar amount in the top bracket under subs. (1p) (c) and (d), (2) (g) 3. and 4. and (h) 3. and 4. shall be increased 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 month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1999, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2011, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB68-SSA1,1301 Section 1301. 71.06 (2e) (b) of the statutes is amended to read:

AB68-SSA1,664,13 71.06 (2e) (b) For taxable years beginning after December 31, 2009, and before January 1, 2022, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1p) (d), (1q) (c), and (2) (g) 4., (h) 4., (i) 3., and (j) 3., and the dollar amount in the top bracket under subs. (1p) (e), (1q) (d), and (2) (g) 5., (h) 5., (i) 4., and (j) 4., 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 month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2008, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2011, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB68-SSA1,1302 Section 1302. 71.06 (2e) (bg) of the statutes is created to read:

AB68-SSA1,664,25 71.06 (2e) (bg) 1. For taxable years beginning after December 31, 2021, the maximum dollar amount in each tax bracket under subs. (1r) (a) and (b) and (2) (k) 1. and 2. and (L) 1. and 2., and the corresponding minimum dollar amount in the next tax bracket under subs. (1r) (b) and (c) and (2) (k) 2. and 3. and (L) 2. and 3. 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 month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1997, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2021, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB68-SSA1,665,10 2. For taxable years beginning after December 31, 2021, the maximum dollar amount in each tax bracket under subs. (1r) (c) and (2) (k) 3. and (L) 3., and the corresponding minimum dollar amount in the next tax bracket under subs. (1r) (d) and (2) (k) 4. and (L) 4. 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 month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2008, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB68-SSA1,665,20 3. For taxable years beginning after December 31, 2022, the maximum dollar amount in the tax bracket under subs. (1r) (d) and (2) (k) 4. and (L) 4. and the corresponding dollar amount in the top bracket under subs. (1r) (e) and (2) (k) 5. and (L) 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 month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2020, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB68-SSA1,1303 Section 1303. 71.06 (2m) of the statutes is amended to read:

AB68-SSA1,665,25 71.06 (2m) Rate changes. If a rate under sub. (1), (1m), (1n), (1p), (1q), (1r), or (2) changes during a taxable year, the taxpayer shall compute the tax for that taxable year by the methods applicable to the federal income tax under section 15 of the Internal Revenue Code.

AB68-SSA1,1304 Section 1304. 71.06 (2s) (d) of the statutes is amended to read:

AB68-SSA1,666,15 71.06 (2s) (d) For taxable years beginning after December 31, 2000, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1p), (1q), (1r), and (2) (g), (h), (i), and (j), (k), and (L) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately “ adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly “adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1p), (1q), (1r), and (2) (g), (h), (i), and (j), (k), and (L) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

AB68-SSA1,1305 Section 1305. 71.07 (3q) (c) 1. of the statutes is renumbered 71.07 (3q) (c) 1. a. and amended to read:

AB68-SSA1,667,2 71.07 (3q) (c) 1. a. Partnerships Except as provided in subd. 1. b., 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 their payment of amounts under par. (b). 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 of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

AB68-SSA1,1306 Section 1306. 71.07 (3q) (c) 1. b. of the statutes is created to read:

AB68-SSA1,667,16 71.07 (3q) (c) 1. b. For taxable years beginning after December 31, 2020, partnerships, limited liability companies, and tax-option corporations may elect to claim the credit under this subsection, if the credit results from a contract entered into with the Wisconsin Economic Development Corporation before December 22, 2017. A partnership, limited liability company, or tax-option corporation that wishes to make the election under this subd. 1. b. shall make the election for each taxable year on its original return and may not subsequently make or revoke the election. If a partnership, limited liability company, or tax-option corporation elects to claim the credit under this subsection, the partners, members, and shareholders may not claim the credit under this subsection. The credit may not be claimed under this subd. 1. b. if one or more partners, members, or shareholders have claimed the credit under this subsection for the same taxable year for which the credit is claimed under this subd. 1. b.

AB68-SSA1,1307 Section 1307. 71.07 (3w) (a) 1. of the statutes is renumbered 71.07 (3w) (a) 1. a. and amended to read:

AB68-SSA1,667,21 71.07 (3w) (a) 1. a. “Base Except as provided in subd. 1. b., “base year" means the taxable year beginning during the calendar year prior to the calendar year in which the enterprise zone in which the claimant is located takes effect.

AB68-SSA1,1308 Section 1308. 71.07 (3w) (a) 1. b. of the statutes is created to read:

AB68-SSA1,667,25 71.07 (3w) (a) 1. b. For a claimant whose award under s. 238.399 is certified after December 31, 2020, “base year” means the 12-month period prior to the date on which the claimant was certified under s. 238.399 (5).

AB68-SSA1,1309 Section 1309. 71.07 (3w) (a) 6. of the statutes is renumbered 71.07 (3w) (a) 6. a. and amended to read:

AB68-SSA1,668,6 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.

AB68-SSA1,1310 Section 1310. 71.07 (3w) (a) 6. b. of the statutes is created to read:

AB68-SSA1,668,10 71.07 (3w) (a) 6. b. For a claimant whose award under s. 238.399 is certified after December 31, 2020, “zone payroll" does not include the amount of wages paid to any full-time employees that exceeds $123,000.

AB68-SSA1,1311 Section 1311. 71.07 (3w) (b) (intro.) of the statutes is amended to read:

AB68-SSA1,668,16 71.07 (3w) (b) Filing claims under pre-2022 award certifications; payroll. (intro.) Subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant whose award is certified prior to January 1, 2022, may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount calculated as follows:

AB68-SSA1,1312 Section 1312. 71.07 (3w) (bd) of the statutes is created to read:

AB68-SSA1,668,21 71.07 (3w) (bd) Filing claims under post-2021 award certifications; payroll. Subject to the limitations provided in this subsection and s. 238.399, a claimant whose award is certified after December 31, 2020, may claim as a credit against the tax imposed under s. 71.02 an amount calculated as follows:

AB68-SSA1,668,22 1. Determine the amount that is the lesser of: