Amendment SSA1-AB68

AB68-SSA1,716,23 1. An amount equal to 20 percent of the qualified first-year wages, as defined in 26 USC 51 (b) (2), paid during the taxable year to a targeted group member who has performed at least 400 hours of services for the claimant in this state.

AB68-SSA1,717,2 2. An amount equal to 12.5 percent of the qualified first-year wages, as defined in 26 USC 51 (b) (2), paid during the taxable year to a targeted group member who has performed at least 120 hours, but less than 400 hours, of services for the claimant in this state.

AB68-SSA1,717,6 3. An amount equal to 25 percent of the qualified second-year wages, as defined in 26 USC 51 (e) (2), paid during the taxable year to a long-term family assistance recipient, as defined in 26 USC 51 (d) (10), who has performed at least 400 hours of services for the claimant in this state.

AB68-SSA1,717,9 (c) Limitations. 1. The wages for which a credit may be claimed under par. (b) may not exceed the applicable threshold in 26 USC 51 (b) (3), (d) (7) (B) (ii), or (e) (1) (B) and may not be paid for services performed outside this state.

AB68-SSA1,717,11 2. A credit under this subsection shall be claimed at the same time as the credit under 26 USC 51.

AB68-SSA1,717,13 3. The requirements and limitations in 26 USC 51 (d) (13), (f), (i), and (k) shall apply to the credit under this subsection.

AB68-SSA1,717,20 4. 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 the wages 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. The partners, members, and shareholders may claim the credit in proportion to their ownership interests.

AB68-SSA1,717,22 (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.

AB68-SSA1,1417 Section 1417. 71.47 (8b) (a) 5. of the statutes is amended to read:

AB68-SSA1,718,3 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.

AB68-SSA1,1418 Section 1418. 71.47 (8b) (a) 7. of the statutes is amended to read:

AB68-SSA1,718,14 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.

AB68-SSA1,1419 Section 1419 . 71.49 (1) (ct) of the statutes is created to read:

AB68-SSA1,718,16 71.49 (1) (ct) Work opportunity tax credit under s. 71.47 (4t).

AB68-SSA1,1420 Section 1420 . 71.52 (4) of the statutes is amended to read:

AB68-SSA1,718,19 71.52 (4) “Household" means a claimant and an individual related to the claimant as husband or wife his or her spouse.

AB68-SSA1,1421 Section 1421 . 71.52 (6) of the statutes is amended to read:

AB68-SSA1,720,9 71.52 (6) “Income" means the sum of Wisconsin adjusted gross income and the following amounts, to the extent not included in Wisconsin adjusted gross income: maintenance payments (except foster care maintenance and supplementary payments excludable under section 131 of the internal revenue code), support money, cash public assistance (not including credit granted under this subchapter and amounts under s. 46.27, 2017 stats.), cash benefits paid by counties under s. 59.53 (21), the gross amount of any pension or annuity (including railroad retirement benefits, all payments received under the federal social security act and veterans disability pensions), nontaxable interest received from the federal government or any of its instrumentalities, nontaxable interest received on state or municipal bonds, worker's compensation, unemployment insurance, the gross amount of “loss of time" insurance, compensation and other cash benefits received from the United States or the state for past or present service in the armed forces, scholarship and fellowship gifts or income, capital gains, gain on the sale of a personal residence excluded under section 121 of the internal revenue code, dividends, income of a nonresident or part-year resident who is married to a full-year resident, housing allowances provided to members of the clergy, the amount by which a resident manager's rent is reduced, nontaxable income of an American Indian, nontaxable income from sources outside this state and nontaxable deferred compensation. Intangible drilling costs, depletion allowances and depreciation, including first-year depreciation allowances under section 179 of the internal revenue code, amortization, contributions to individual retirement accounts under section 219 of the internal revenue code, contributions to Keogh plans, net operating loss carry-backs and carry-forwards, capital loss carry-forwards, and disqualified losses deducted in determining Wisconsin adjusted gross income shall be added to “income". “Income" does not include gifts from natural persons, cash reimbursement payments made under title XX of the federal social security act, surplus food or other relief in kind supplied by a governmental agency, the gain on the sale of a personal residence deferred under section 1034 of the internal revenue code or nonrecognized gain from involuntary conversions under section 1033 of the internal revenue code. Amounts not included in adjusted gross income but added to “income" under this subsection in a previous year and repaid may be subtracted from income for the year during which they are repaid. Scholarship and fellowship gifts or income that are included in Wisconsin adjusted gross income and that were added to household income for purposes of determining the credit under this subchapter in a previous year may be subtracted from income for the current year in determining the credit under this subchapter. A marital property agreement or unilateral statement under ch. 766 has no effect in computing “income" for a person whose homestead is not the same as the homestead of that person's spouse.

AB68-SSA1,1422 Section 1422. 71.54 (1) (g) (intro.) of the statutes is amended to read:

AB68-SSA1,720,13 71.54 (1) (g) 2012 and thereafter to 2020. (intro.) The amount of any claim filed in 2012 and thereafter to 2020 and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:

AB68-SSA1,1423 Section 1423. 71.54 (1) (g) 4. of the statutes is amended to read:

AB68-SSA1,720,21 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.

AB68-SSA1,1424 Section 1424. 71.54 (1) (g) 5. of the statutes is repealed.

AB68-SSA1,1425 Section 1425. 71.54 (1) (g) 6. (intro.) of the statutes is amended to read:

AB68-SSA1,721,2 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:

AB68-SSA1,1426 Section 1426. 71.54 (1) (g) 7. of the statutes is repealed.

AB68-SSA1,1427 Section 1427 . 71.54 (1) (h) of the statutes is created to read:

AB68-SSA1,721,7 71.54 (1) (h) 2021 and thereafter. Subject to sub. (2m), the amount of any claim filed in 2021 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:

AB68-SSA1,721,10 1. If the household income was $8,060 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.

AB68-SSA1,721,15 2. If the household income was more than $8,060 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 6.655 percent of the household income exceeding $8,060.

AB68-SSA1,721,16 3. No credit may be allowed if the household income exceeds $30,000.

AB68-SSA1,721,18 4. Notwithstanding the time limitations described in par. (g) (intro.), the provisions of par. (g) 4. apply to claims filed under this paragraph.

AB68-SSA1,1428 Section 1428. 71.54 (2) (b) 4. of the statutes is amended to read:

AB68-SSA1,721,21 71.54 (2) (b) 4. In calendar years 2011 or any subsequent calendar year to 2022, $1,460.

AB68-SSA1,1429 Section 1429 . 71.54 (2) (b) 5. of the statutes is created to read:

AB68-SSA1,721,24 71.54 (2) (b) 5. Subject to sub. (2m), in calendar year 2023 or any subsequent calendar year, $1,460.

AB68-SSA1,1430 Section 1430. 71.54 (2m) of the statutes is amended to read:

AB68-SSA1,722,18 71.54 (2m) Indexing for inflation; 2010 2023 and thereafter. (a) For calendar years beginning after December 31, 2009, and before January 1, 2011 2022, 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 2020 through July 2008 2021, 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.

AB68-SSA1,722,24 (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.

AB68-SSA1,1431 Section 1431. 71.64 (9) (b) (intro.) of the statutes is amended to read:

AB68-SSA1,723,4 71.64 (9) (b) (intro.) The department shall from time to time adjust the withholding tables to reflect any changes in income tax rates, any applicable surtax or any changes in dollar amounts in s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2) resulting from statutory changes, except as follows:

AB68-SSA1,1432 Section 1432. 71.67 (5) (a) of the statutes is amended to read:

AB68-SSA1,723,11 71.67 (5) (a) Wager winnings. A person holding a license to sponsor and manage races under s. 562.05 (1) (b) or (c) shall withhold from the amount of any payment of pari-mutuel winnings under s. 562.065 (3) (a) or (3m) (a) an amount determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), (1p), or (1q), or (1r) if the amount of the payment is more than $1,000.

AB68-SSA1,1433 Section 1433. 71.67 (5m) of the statutes is amended to read:

AB68-SSA1,723,19 71.67 (5m) Withholding from payments to purchase assignment of lottery prize. A person that purchases an assignment of a lottery prize shall withhold from the amount of any payment made to purchase the assignment the amount that is determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), (1p), or (1q), or (1r). Subsection (5) (b), (c) and (d), as it applies to the amounts withheld under sub. (5) (a), applies to the amount withheld under this subsection.

AB68-SSA1,1434 Section 1434. 71.78 (4) (m) of the statutes is amended to read:

AB68-SSA1,723,24 71.78 (4) (m) The chief executive officer of the Wisconsin Economic Development Corporation and employees of the corporation to the extent necessary to administer the development zone program economic development programs under subch. II of ch. 238.

AB68-SSA1,1435 Section 1435. 71.78 (5) of the statutes is amended to read:

AB68-SSA1,724,5 71.78 (5) Agreement with department. Copies of returns and claims specified in sub. (1) and related schedules, exhibits, writings or audit reports shall not be furnished to the persons listed under sub. (4), except persons under sub. (4) (e), (k), (n), (o) and (q) or under an agreement between the department of revenue and another agency of government or the Wisconsin Economic Development Corporation.

AB68-SSA1,1436 Section 1436. 71.80 (25) (a) of the statutes is renumbered 71.80 (25) and amended to read:

AB68-SSA1,724,12 71.80 (25) Net operating and business loss carry-forward and carry-back. No offset of Wisconsin income may be made under s. 71.05 (8) (b) 1., 71.26 (4) (a), or 71.45 (4) (a) unless the incurred loss was computed on a return that was filed within 4 years of the unextended due date for filing the original return for the taxable year in which the loss was incurred.

AB68-SSA1,1437 Section 1437. 71.80 (25) (b) of the statutes is repealed.

AB68-SSA1,1438 Section 1438 . 71.83 (1) (a) 8. of the statutes is amended to read:

AB68-SSA1,724,21 71.83 (1) (a) 8. `Joint return replacing separate returns.' If the amount shown as the tax by the husband and wife spouses on a joint return filed under s. 71.03 (2) (g) to (L) exceeds the sum of the amounts shown as the tax upon the separate return of each spouse and if any part of that excess is attributable to negligence or intentional disregard of this chapter, but without intent to defraud, at the time of the filing of that separate return, then 25 percent of the total amount of that excess shall be added to the tax.

AB68-SSA1,1439 Section 1439 . 71.83 (1) (b) 5. of the statutes is amended to read:

AB68-SSA1,725,3 71.83 (1) (b) 5. `Joint return after separate returns.' If the amount shown as the tax by the husband and wife spouses on a joint return filed under s. 71.03 (2) (g) to (L) exceeds the sum of the amounts shown as the tax on the separate return of each spouse and if any part of that excess is attributable to fraud with intent to evade tax at the time of the filing of that separate return, then 50 percent of the total amount of that excess shall be added to the tax.

AB68-SSA1,1440 Section 1440 . 71.83 (1) (ch) of the statutes is created to read:

AB68-SSA1,725,11 71.83 (1) (ch) First-time homebuyer 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.

AB68-SSA1,1441 Section 1441. 71.98 (10) of the statutes is created to read:

AB68-SSA1,725,15 71.98 (10) Federal Tax Cuts and Jobs Act. For taxable years beginning after December 31, 2020, sections 11012, 13206, 13221, 13301, 13304 (a), (b), and (d), 13531, and 13601 of P.L. 115-97.

AB68-SSA1,1442 Section 1442. 71.98 (11) of the statutes is created to read:

AB68-SSA1,725,19 71.98 (11) Qualified tuition programs. For taxable years beginning after December 31, 2018, sections 221 (e) (1) and 529 of the federal Internal Revenue Code in effect for federal purposes, relating to qualified tuition programs.

AB68-SSA1,1443 Section 1443. 73.03 (73) (f) 1. of the statutes is amended to read:

AB68-SSA1,725,25 73.03 (73) (f) 1. Subject to subd. 2., for taxable years beginning after December 31, 2020, the department shall make the pilot program described under par. (b) permanent and applicable to all eligible claimants of the earned income tax credit under s. 71.07 (9e) (aj) (ak), based on the specifications described under pars. (b) and (c) 2.

AB68-SSA1,1444 Section 1444. 73.17 of the statutes is created to read:

AB68-SSA1,726,3 73.17 Medical marijuana registry program. (1) Definitions. In this section:

AB68-SSA1,726,4 (a) “Debilitating medical condition or treatment” means any of the following:

AB68-SSA1,726,10 1. Cancer; glaucoma; acquired immunodeficiency syndrome; a positive test for the presence of HIV, antigen or nonantigenic products of HIV, or an antibody to HIV; inflammatory bowel disease, including ulcerative colitis or Crohn's disease; a hepatitis C virus infection; Alzheimer's disease; amyotrophic lateral sclerosis; nail patella syndrome; Ehlers-Danlos Syndrome; post-traumatic stress disorder; or the treatment of these conditions.

AB68-SSA1,726,14 2. A chronic or debilitating disease or medical condition or the treatment of such a disease or condition that causes cachexia, severe pain, severe nausea, seizures, including those characteristic of epilepsy, or severe and persistent muscle spasms, including those characteristic of multiple sclerosis.

AB68-SSA1,726,15 (b) “Department” means the department of revenue.

AB68-SSA1,726,16 (c) “Physician” means a person licensed under s. 448.04 (1) (a).

AB68-SSA1,726,19 (d) “Qualifying patient” means a person who has been diagnosed by a physician as having or undergoing a debilitating medical condition or treatment but does not include a person under the age of 18 years

AB68-SSA1,726,21 (e) “Tax exemption certificate” means a certificate to claim the exemption under s. 77.54 (71).

AB68-SSA1,726,22 (f) “Usable marijuana" has the meaning given in s. 139.97 (13).

AB68-SSA1,726,24 (g) “Written certification” means means a statement made by a person's physician if all of the following apply:

AB68-SSA1,727,4 1. The statement indicates that, in the physician's professional opinion, the person has or is undergoing a debilitating medical condition or treatment and the potential benefits of the person's use of usable marijuana would likely outweigh the health risks for the person.

AB68-SSA1,727,8 2. The statement indicates that the opinion described in subd. 1. was formed after a full assessment of the person's medical history and current medical condition that was conducted no more than 6 months prior to making the statement and that was made in the course of a bona fide physician-patient relationship

AB68-SSA1,727,10 3. The statement is signed by the physician or is contained in the person's medical records.

AB68-SSA1,727,12 4. The statement contains an expiration date that is no more than 48 months after issuance and the statement has not expired.

AB68-SSA1,727,15 (2) Application. An adult who is claiming to be a qualifying patient may apply for a registry identification card by submitting to the department a signed application form containing or accompanied by all of the following:

AB68-SSA1,727,16 (a) His or her name, address, and date of birth.

AB68-SSA1,727,17 (b) A written certification.

AB68-SSA1,727,19 (c) The name, address, and telephone number of the person's current physician, as listed in the written certification.

AB68-SSA1,727,24 (3) Processing the application. The department shall verify the information contained in or accompanying an application submitted under sub. (2) and shall approve or deny the application within 30 days after receiving it. The department may deny an application submitted under sub. (2) only if the required information has not been provided or if false information has been provided.

AB68-SSA1,728,8 (4) Issuing a registry identification card and tax exemption certificate. The department shall issue to the applicant a registry identification card and tax exemption certificate within 5 days after approving an application under sub. (3). Unless voided under sub. (5) (b) or revoked under rules issued by the department under sub. (7), a registry identification card and tax exemption certificate shall expire 4 years from the date of issuance. A tax exemption certificate shall contain the information determined by the department. A registry identification card shall contain all of the following:

AB68-SSA1,728,9 (a) The name, address, and date of birth of the registrant.

AB68-SSA1,728,10 (b) The date of issuance and expiration date of the registry identification card.

AB68-SSA1,728,11 (c) A photograph of the registrant.

AB68-SSA1,728,12 (d) Other information the department may require by rule.