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AB68-SSA1,1272 14Section 1272 . 71.05 (6) (b) 19. cm. of the statutes is created to read:
AB68-SSA1,657,215 71.05 (6) (b) 19. cm. For taxable years beginning after December 31, 2020, for
16a person who is a nonresident or a part-year resident of this state, modify the amount
17calculated under subd. 19. b. by multiplying the amount by a fraction the numerator
18of which is the person's wages, salary, tips, unearned income, and net earnings from
19a trade or business that are taxable by this state and the denominator of which is the
20person's total wages, salary, tips, unearned income, and net earnings from a trade
21or business. In this subd. 19. cm., for married persons filing separately, “ wages,
22salary, tips, unearned income, and net earnings from a trade or business" means the
23separate wages, salary, tips, unearned income, and net earnings from a trade or
24business of each spouse, and for married persons filing jointly, “wages, salary, tips,
25unearned income, and net earnings from a trade or business" means the total wages,

1salary, tips, unearned income, and net earnings from a trade or business of both
2spouses.
AB68-SSA1,1273 3Section 1273 . 71.05 (6) (b) 19. d. of the statutes is amended to read:
AB68-SSA1,657,64 71.05 (6) (b) 19. d. Reduce For taxable years beginning before January 1, 2021,
5reduce
the amount calculated under subd. 19. b. or c. to the person's aggregate net
6earnings from a trade or business that are taxable by this state.
AB68-SSA1,1274 7Section 1274 . 71.05 (6) (b) 19. dm. of the statutes is created to read:
AB68-SSA1,657,118 71.05 (6) (b) 19. dm. For taxable years beginning after December 31, 2020,
9reduce the amount calculated under subd. 19.b. or cm. to the person's aggregate
10wages, salary, tips, unearned income, and net earnings from a trade or business that
11are taxable by this state.
AB68-SSA1,1275 12Section 1275 . 71.05 (6) (b) 20. of the statutes is repealed.
AB68-SSA1,1276 13Section 1276. 71.05 (6) (b) 28. (intro.) of the statutes is amended to read:
AB68-SSA1,657,2114 71.05 (6) (b) 28. (intro.) An amount paid by a claimant for tuition expenses and
15mandatory student fees for a student who is the claimant or who is the claimant's
16child and the claimant's dependent, as defined under section 152 of the Internal
17Revenue Code, to attend any university, college, technical college or a school
18approved under s. 440.52, that is located in Wisconsin or to attend a public vocational
19school or public institution of higher education in Minnesota under the
20Minnesota-Wisconsin
a reciprocity agreement under s. 36.27 (2r) or 39.47,
21calculated as follows:
AB68-SSA1,1277 22Section 1277. 71.05 (6) (b) 34. of the statutes is amended to read:
AB68-SSA1,658,423 71.05 (6) (b) 34. Any amount of basic, special, and incentive pay income or
24compensation, as those terms are used in 37 USC chapters 3 and 5, received from the
25federal government by a person who is a member of a reserve component of the U.S.

1armed forces, after being called into active federal service under the provisions of 10
2USC 12302
(a) or, 10 USC 12304, or 10 USC 12304b, or into special state service
3authorized by the federal department of defense under 32 USC 502 (f), that is paid
4to the person for a period of time during which the person is on active duty.
AB68-SSA1,1278 5Section 1278. 71.05 (6) (b) 34m. of the statutes is created to read:
AB68-SSA1,658,116 71.05 (6) (b) 34m. For taxable years beginning after December 31, 2020, any
7amount of pay, as described in s. 321.35, received from this state by a person who is
8a member of the Wisconsin national guard after being called into state active duty
9under s. 321.39 that is paid to the person for the period of time during which the
10person is on state active duty, to the extent that the income is not subtracted under
11subd. 34.
AB68-SSA1,1279 12Section 1279 . 71.05 (6) (b) 36. of the statutes is repealed.
AB68-SSA1,1280 13Section 1280 . 71.05 (6) (b) 37. of the statutes is repealed.
AB68-SSA1,1281 14Section 1281 . 71.05 (6) (b) 39. of the statutes is repealed.
AB68-SSA1,1282 15Section 1282 . 71.05 (6) (b) 40. of the statutes is repealed.
AB68-SSA1,1283 16Section 1283 . 71.05 (6) (b) 41. of the statutes is repealed.
AB68-SSA1,1284 17Section 1284. 71.05 (6) (b) 43. d. of the statutes is amended to read:
AB68-SSA1,658,2018 71.05 (6) (b) 43. d. For taxable years beginning after December 31, 2013, and
19before January 1, 2021,
up to $3,000 if the claimant has one qualified individual and
20up to $6,000 if the claimant has more than one qualified individual.
AB68-SSA1,1285 21Section 1285. 71.05 (6) (b) 49. a. of the statutes is amended to read:
AB68-SSA1,659,222 71.05 (6) (b) 49. a. Subject to the definitions provided in subd. 49. b. to g. and
23the limitations specified in subd. 49. h. to j. for taxable years beginning after
24December 31, 2013, and subject to the limitation in subd. 49. k. for taxable years
25beginning after December 31, 2017, and subject to the limitation in subd. 49. m. for

1taxable years beginning after December 31, 2020,
tuition expenses that are paid by
2a claimant for tuition for a pupil to attend an eligible institution.
AB68-SSA1,1286 3Section 1286 . 71.05 (6) (b) 49. m. of the statutes is created to read:
AB68-SSA1,659,84 71.05 (6) (b) 49. m. For taxable years beginning after December 31, 2020, no
5modification may be made under this subdivision unless the adjusted gross income
6of the claimant is less than $100,000 if the claimant is filing as single or head of
7household, $150,000 if the claimant is married and filing jointly, or $75,000 if the
8claimant is married and filing separately.
AB68-SSA1,1287 9Section 1287 . 71.05 (6) (b) 54. of the statutes is created to read:
AB68-SSA1,659,1410 71.05 (6) (b) 54. For taxable years beginning after December 31, 2020, the
11amount of a national service educational award disbursed under 42 USC 12604
12during the taxable year for the benefit of an individual. No modification may be
13claimed under this subdivision for an amount that is subtracted under subd. 28. or
14deducted under 26 USC 221.
AB68-SSA1,1288 15Section 1288 . 71.05 (6) (b) 55. of the statutes is created to read:
AB68-SSA1,659,2316 71.05 (6) (b) 55. For each account an account holder, as defined in s. 71.10 (10)
17(a) 1., creates under s. 71.10 (10) (b) 1. and, subject to s. 71.10 (10) (d), the amount
18deposited, limited to $5,000, by the account holder into the account during the
19taxable year and any interest, dividends, and other gains that accrue in the account
20and are redeposited into it. If the account holder is married and files a joint return,
21the $5,000 limitation shall be increased to $10,000. The subtraction under this
22subdivision does not apply to the transfer of funds from another account as described
23in s. 71.10 (10) (c) 4.
AB68-SSA1,1289 24Section 1289. 71.05 (8) (a) of the statutes is amended to read:
AB68-SSA1,660,7
171.05 (8) (a) The carry back of losses to reduce income of prior years may be
2permitted for 2 taxable years.
There shall be added any amount deducted as a federal
3net operating loss carry-back or carry-over and there shall be subtracted for the first
4taxable year for which the subtraction may be made any Wisconsin net operating loss
5carry-back or carry-forward allowable under par. (b) in an amount not in excess of
6the Wisconsin taxable income computed before the deduction of the Wisconsin net
7operating loss carry-back or carry-forward.
AB68-SSA1,1290 8Section 1290. 71.05 (8) (b) 1. of the statutes is renumbered 71.05 (8) (b) and
9amended to read:
AB68-SSA1,660,2410 71.05 (8) (b) Except as provided in s. 71.80 (25), a Wisconsin net operating loss
11may be carried back against Wisconsin taxable income of the previous 2 years and
12then
carried forward against Wisconsin taxable incomes of the next 20 taxable years,
13if the taxpayer was subject to taxation under this chapter in the taxable year in which
14the loss was incurred, to the extent not offset against other income of the year of loss
15and to the extent not offset against Wisconsin modified taxable income of the 2 years
16preceding the loss and
of any year between the loss year and the taxable year for
17which the loss carry-forward is claimed. In this paragraph, “Wisconsin modified
18taxable income" means Wisconsin taxable income with the following exceptions: a
19net operating loss deduction or offset for the loss year or any taxable year before or
20thereafter is not allowed, the deduction for long-term capital gains under subs. (6)
21(b) 9. and 9m., (25), and (25m) is not allowed, the amount deductible for losses from
22sales or exchanges of capital assets may not exceed the amount includable in income
23for gains from sales or exchanges of capital assets and “Wisconsin modified taxable
24income" may not be less than zero.
AB68-SSA1,1291 25Section 1291. 71.05 (8) (b) 2. of the statutes is repealed.
AB68-SSA1,1292
1Section 1292. 71.05 (8) (c) of the statutes is repealed.
AB68-SSA1,1293 2Section 1293 . 71.05 (22) (a) (title) of the statutes is amended to read:
AB68-SSA1,661,43 71.05 (22) (a) (title) Election of deductions; husband and wife spousal
4deductions.
AB68-SSA1,1294 5Section 1294. 71.06 (1q) (intro.) of the statutes is amended to read:
AB68-SSA1,661,116 71.06 (1q) Fiduciaries, single individuals, and heads of households; after
72012
2013 to 2021. (intro.) The tax to be assessed, levied, and collected upon the taxable
8incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or
9reserve funds, and single individuals and heads of households shall be computed at
10the following rates for taxable years beginning after December 31, 2012, and before
11January 1, 2022
:
AB68-SSA1,1295 12Section 1295. 71.06 (1r) of the statutes is created to read:
AB68-SSA1,661,1713 71.06 (1r) Fiduciaries, single individuals, and heads of households; after
142021.
The tax to be assessed, levied, and collected upon the taxable incomes of all
15fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
16single individuals and heads of households shall be computed at the following rates
17for taxable years beginning after December 31, 2021:
AB68-SSA1,661,1818 (a) On all taxable income from $0 to $11,970, 3.54 percent.
AB68-SSA1,661,2019 (b) On all taxable income exceeding $11,970 but not exceeding $23,930, 4.65
20percent.
AB68-SSA1,661,2221 (c) On all taxable income exceeding $23,930 but not exceeding $150,000, 5.20
22percent.
AB68-SSA1,661,2423 (d) On all taxable income exceeding $150,000 but not exceeding $263,480, 6.27
24percent.
AB68-SSA1,661,2525 (e) On all taxable income exceeding $263,480, 7.65 percent.
AB68-SSA1,1296
1Section 1296. 71.06 (2) (i) (intro.) of the statutes is amended to read:
AB68-SSA1,662,32 71.06 (2) (i) (intro.) For joint returns, for taxable years beginning after
3December 31, 2012, and before January 1, 2022:
AB68-SSA1,1297 4Section 1297. 71.06 (2) (j) (intro.) of the statutes is amended to read:
AB68-SSA1,662,65 71.06 (2) (j) (intro.) For married persons filing separately, for taxable years
6beginning after December 31, 2012, and before January 1, 2022:
AB68-SSA1,1298 7Section 1298. 71.06 (2) (k) of the statutes is created to read:
AB68-SSA1,662,98 71.06 (2) (k) For joint returns, for taxable years beginning after
9December 31, 2021:
AB68-SSA1,662,1010 1. On all taxable income from $0 to $23,930, 3.54 percent.
AB68-SSA1,662,1211 2. On all taxable income exceeding $23,930 but not exceeding $47,880, 4.65
12percent.
AB68-SSA1,662,1413 3. On all taxable income exceeding $47,880 but not exceeding $300,000, 5.20
14percent.
AB68-SSA1,662,1615 4. On all taxable income exceeding $300,000 but not exceeding $526,960, 6.27
16percent.
AB68-SSA1,662,1717 5. On all taxable income exceeding $526,960, 7.65 percent.
AB68-SSA1,1299 18Section 1299. 71.06 (2) (L) of the statutes is created to read:
AB68-SSA1,662,2019 71.06 (2) (L) For married persons filing separately, for taxable years beginning
20after December 31, 2021:
AB68-SSA1,662,2121 1. On all taxable income from $0 to $11,970, 3.54 percent.
AB68-SSA1,662,2322 2. On all taxable income exceeding $11,970 but not exceeding $23,930, 4.65
23percent.
AB68-SSA1,662,2524 3. On all taxable income exceeding $23,930 but not exceeding $150,000, 5.20
25percent.
AB68-SSA1,663,2
14. On all taxable income exceeding $150,000 but not exceeding $263,480, 6.27
2percent.
AB68-SSA1,663,33 5. On all taxable income exceeding $263,480, 7.65 percent.
AB68-SSA1,1300 4Section 1300. 71.06 (2e) (a) of the statutes is amended to read:
AB68-SSA1,663,255 71.06 (2e) (a) For taxable years beginning after December 31, 1998, and before
6January 1, 2000, the maximum dollar amount in each tax bracket, and the
7corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2)
8(c) and (d), and for taxable years beginning after December 31, 1999, and before
9January 1, 2022,
the maximum dollar amount in each tax bracket, and the
10corresponding minimum dollar amount in the next bracket, under subs. (1n), (1p) (a)
11to (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
122., shall be increased each year by a percentage equal to the percentage change
13between the U.S. consumer price index for all urban consumers, U.S. city average,
14for the month of August of the previous year and the U.S. consumer price index for
15all urban consumers, U.S. city average, for the month of August 1997, as determined
16by the federal department of labor, except that for taxable years beginning after
17December 31, 2000, and before January 1, 2002, the dollar amount in the top bracket
18under subs. (1p) (c) and (d), (2) (g) 3. and 4. and (h) 3. and 4. shall be increased by a
19percentage equal to the percentage change between the U.S. consumer price index
20for all urban consumers, U.S. city average, for the month of August of the previous
21year and the U.S. consumer price index for all urban consumers, U.S. city average,
22for the month of August 1999, as determined by the federal department of labor,
23except that for taxable years beginning after December 31, 2011, the adjustment may
24occur only if the resulting amount is greater than the corresponding amount that was
25calculated for the previous year.
AB68-SSA1,1301
1Section 1301. 71.06 (2e) (b) of the statutes is amended to read:
AB68-SSA1,664,132 71.06 (2e) (b) For taxable years beginning after December 31, 2009, and before
3January 1, 2022,
the maximum dollar amount in each tax bracket, and the
4corresponding minimum dollar amount in the next bracket, under subs. (1p) (d), (1q)
5(c), and (2) (g) 4., (h) 4., (i) 3., and (j) 3., and the dollar amount in the top bracket under
6subs. (1p) (e), (1q) (d), and (2) (g) 5., (h) 5., (i) 4., and (j) 4., shall be increased each year
7by a percentage equal to the percentage change between the U.S. consumer price
8index for all urban consumers, U.S. city average, for the month of August of the
9previous year and the U.S. consumer price index for all urban consumers, U.S. city
10average, for the month of August 2008, as determined by the federal department of
11labor, except that for taxable years beginning after December 31, 2011, the
12adjustment may occur only if the resulting amount is greater than the corresponding
13amount that was calculated for the previous year.
AB68-SSA1,1302 14Section 1302. 71.06 (2e) (bg) of the statutes is created to read:
AB68-SSA1,664,2515 71.06 (2e) (bg) 1. For taxable years beginning after December 31, 2021, the
16maximum dollar amount in each tax bracket under subs. (1r) (a) and (b) and (2) (k)
171. and 2. and (L) 1. and 2., and the corresponding minimum dollar amount in the next
18tax bracket under subs. (1r) (b) and (c) and (2) (k) 2. and 3. and (L) 2. and 3. shall be
19increased each year by a percentage equal to the percentage change between the U.S.
20consumer price index for all urban consumers, U.S. city average, for the month of
21August of the previous year and the U.S. consumer price index for all urban
22consumers, U.S. city average, for the month of August 1997, as determined by the
23federal department of labor, except that for taxable years beginning after December
2431, 2021, the adjustment may occur only if the resulting amount is greater than the
25corresponding amount that was calculated for the previous year.
AB68-SSA1,665,10
12. For taxable years beginning after December 31, 2021, the maximum dollar
2amount in each tax bracket under subs. (1r) (c) and (2) (k) 3. and (L) 3., and the
3corresponding minimum dollar amount in the next tax bracket under subs. (1r) (d)
4and (2) (k) 4. and (L) 4. shall be increased each year by a percentage equal to the
5percentage change between the U.S. consumer price index for all urban consumers,
6U.S. city average, for the month of August of the previous year and the U.S. consumer
7price index for all urban consumers, U.S. city average, for the month of August 2008,
8as determined by the federal department of labor, except that the adjustment may
9occur only if the resulting amount is greater than the corresponding amount that was
10calculated for the previous year.
AB68-SSA1,665,2011 3. For taxable years beginning after December 31, 2022, the maximum dollar
12amount in the tax bracket under subs. (1r) (d) and (2) (k) 4. and (L) 4. and the
13corresponding dollar amount in the top bracket under subs. (1r) (e) and (2) (k) 5. and
14(L) 5. shall be increased each year by a percentage equal to the percentage change
15between the U.S. consumer price index for all urban consumers, U.S. city average,
16for the month of August of the previous year and the U.S. consumer price index for
17all urban consumers, U.S. city average, for the month of August 2020, as determined
18by the federal department of labor, except that the adjustment may occur only if the
19resulting amount is greater than the corresponding amount that was calculated for
20the previous year.
AB68-SSA1,1303 21Section 1303. 71.06 (2m) of the statutes is amended to read:
AB68-SSA1,665,2522 71.06 (2m) Rate changes. If a rate under sub. (1), (1m), (1n), (1p), (1q), (1r),
23or (2) changes during a taxable year, the taxpayer shall compute the tax for that
24taxable year by the methods applicable to the federal income tax under section 15 of
25the Internal Revenue Code.
AB68-SSA1,1304
1Section 1304. 71.06 (2s) (d) of the statutes is amended to read:
AB68-SSA1,666,152 71.06 (2s) (d) For taxable years beginning after December 31, 2000, with
3respect to nonresident individuals, including individuals changing their domicile
4into or from this state, the tax brackets under subs. (1p), (1q), (1r), and (2) (g), (h),
5(i), and (j), (k), and (L) shall be multiplied by a fraction, the numerator of which is
6Wisconsin adjusted gross income and the denominator of which is federal adjusted
7gross income. In this paragraph, for married persons filing separately “ adjusted
8gross income" means the separate adjusted gross income of each spouse, and for
9married persons filing jointly “adjusted gross income" means the total adjusted gross
10income of both spouses. If an individual and that individual's spouse are not both
11domiciled in this state during the entire taxable year, the tax brackets under subs.
12(1p), (1q), (1r), and (2) (g), (h), (i), and (j), (k), and (L) on a joint return shall be
13multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted
14gross income and the denominator of which is their joint federal adjusted gross
15income.
AB68-SSA1,1305 16Section 1305. 71.07 (3q) (c) 1. of the statutes is renumbered 71.07 (3q) (c) 1.
17a. and amended to read:
AB68-SSA1,667,218 71.07 (3q) (c) 1. a. Partnerships Except as provided in subd. 1. b., partnerships,
19limited liability companies, and tax-option corporations may not claim the credit
20under this subsection, but the eligibility for, and the amount of, the credit are based
21on their payment of amounts under par. (b). A partnership, limited liability company,
22or tax-option corporation shall compute the amount of credit that each of its
23partners, members, or shareholders may claim and shall provide that information
24to each of them. Partners, members of limited liability companies, and shareholders

1of tax-option corporations may claim the credit in proportion to their ownership
2interests.
AB68-SSA1,1306 3Section 1306. 71.07 (3q) (c) 1. b. of the statutes is created to read:
AB68-SSA1,667,164 71.07 (3q) (c) 1. b. For taxable years beginning after December 31, 2020,
5partnerships, limited liability companies, and tax-option corporations may elect to
6claim the credit under this subsection, if the credit results from a contract entered
7into with the Wisconsin Economic Development Corporation before December 22,
82017. A partnership, limited liability company, or tax-option corporation that
9wishes to make the election under this subd. 1. b. shall make the election for each
10taxable year on its original return and may not subsequently make or revoke the
11election. If a partnership, limited liability company, or tax-option corporation elects
12to claim the credit under this subsection, the partners, members, and shareholders
13may not claim the credit under this subsection. The credit may not be claimed under
14this subd. 1. b. if one or more partners, members, or shareholders have claimed the
15credit under this subsection for the same taxable year for which the credit is claimed
16under this subd. 1. b.
AB68-SSA1,1307 17Section 1307. 71.07 (3w) (a) 1. of the statutes is renumbered 71.07 (3w) (a) 1.
18a. and amended to read:
AB68-SSA1,667,2119 71.07 (3w) (a) 1. a. “Base Except as provided in subd. 1. b., “base year" means
20the taxable year beginning during the calendar year prior to the calendar year in
21which the enterprise zone in which the claimant is located takes effect.
AB68-SSA1,1308 22Section 1308. 71.07 (3w) (a) 1. b. of the statutes is created to read:
AB68-SSA1,667,2523 71.07 (3w) (a) 1. b. For a claimant whose award under s. 238.399 is certified
24after December 31, 2020, “base year” means the 12-month period prior to the date
25on which the claimant was certified under s. 238.399 (5).
AB68-SSA1,1309
1Section 1309. 71.07 (3w) (a) 6. of the statutes is renumbered 71.07 (3w) (a) 6.
2a. and amended to read:
AB68-SSA1,668,63 71.07 (3w) (a) 6. a. “Zone payroll" means the amount of state payroll that is
4attributable to wages paid to full-time employees for services that are performed in
5an enterprise zone. “Zone Except as provided in subd. 6. b., “zone payroll" does not
6include the amount of wages paid to any full-time employees that exceeds $100,000.
AB68-SSA1,1310 7Section 1310. 71.07 (3w) (a) 6. b. of the statutes is created to read:
AB68-SSA1,668,108 71.07 (3w) (a) 6. b. For a claimant whose award under s. 238.399 is certified
9after December 31, 2020, “zone payroll" does not include the amount of wages paid
10to any full-time employees that exceeds $123,000.
AB68-SSA1,1311 11Section 1311. 71.07 (3w) (b) (intro.) of the statutes is amended to read:
AB68-SSA1,668,1612 71.07 (3w) (b) Filing claims under pre-2022 award certifications; payroll.
13(intro.) Subject to the limitations provided in this subsection and s. 238.399 or s.
14560.799, 2009 stats., a claimant whose award is certified prior to January 1, 2022,
15may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount
16calculated as follows:
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