Amendment AA1-SB70

SB70-AA1,510,23 71.47 (8m) Universal changing station credit. (a) Definitions. In this subsection:

SB70-AA1,510,25 1. “Claimant" means a person who files a claim under this subsection and meets either of the following conditions during the preceding taxable year:

SB70-AA1,511,1 a. Had gross receipts that did not exceed $1,000,000.

SB70-AA1,511,2 b. Employed no more than 30 full-time employees.

SB70-AA1,511,4 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.

SB70-AA1,511,5 3. “Universal changing station” has the meaning given in s. 71.07 (8m) (a) 3.

SB70-AA1,511,10 (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. 71.43, 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.

SB70-AA1,511,16 (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.

SB70-AA1,511,17 2. The credit claimed under this subsection may not exceed $5,125.

SB70-AA1,511,24 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.

SB70-AA1,512,2 (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.

SB70-AA1,1118 Section 1118. 71.49 (1) (cu) of the statutes is created to read:

SB70-AA1,512,4 71.49 (1) (cu) Universal changing station credit under s. 71.47 (8m).”.

SB70-AA1,512,5 189. Page 374, line 11: after that line insert:

SB70-AA1,512,6 “ Section 1119. 71.26 (3) (j) of the statutes is amended to read:

SB70-AA1,512,15 71.26 (3) (j) Sections 243, 244, 245, 245A, 246 and 246A are excluded and replaced by the rule that corporations may deduct from income dividends received from a corporation with respect to its common stock if the corporation receiving the dividends owns, directly or indirectly, during the entire taxable year at least 70 percent of the total combined voting stock of the payor corporation. In this paragraph, “dividends received" means gross dividends minus taxes on those dividends paid to a foreign nation and claimed as a deduction under this chapter. The same dividends may not be deducted more than once and may not be used in the determination of a net business loss under ss. 71.26 (4) and 71.45 (4).

SB70-AA1,1120 Section 1120. 71.26 (4) (a) of the statutes is amended to read:

SB70-AA1,513,10 71.26 (4) (a) Except as provided in par. (b) and s. 71.80 (25), a corporation, except a tax-option corporation or an insurer to which s. 71.45 (4) applies, may offset against its Wisconsin net business income any Wisconsin net business loss incurred in any of the 20 immediately preceding taxable years, if the corporation was subject to taxation under this chapter in the taxable year in which the loss was incurred, to the extent not offset by other items of Wisconsin income in the loss year and by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed. For purposes of this subsection, Wisconsin net business income or loss shall consist of all the income attributable to the operation of a trade or business in this state, less the business expenses allowed as deductions in computing net income, except that the dividends received deduction under sub. (3) (j) may not be used in the determination of a net business loss. The Wisconsin net business income or loss of corporations engaged in business within and without the state shall be determined under s. 71.25 (6) and (10) to (12). Nonapportionable losses having a Wisconsin situs under s. 71.25 (5) (b) shall be included in Wisconsin net business loss; and nonapportionable income having a Wisconsin situs under s. 71.25 (5) (b), whether taxable or exempt, shall be included in other items of Wisconsin income and Wisconsin net business income for purposes of this subsection.

SB70-AA1,1121 Section 1121. 71.45 (4) (a) of the statutes is amended to read:

SB70-AA1,513,24 71.45 (4) (a) Except as provided in par. (b) and s. 71.80 (25), insurers computing tax under this subchapter may subtract from Wisconsin net income any Wisconsin net business loss incurred in any of the 20 immediately preceding taxable years, if the insurer was subject to taxation under this chapter in the taxable year in which the loss was incurred, to the extent not offset by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed and computed without regard to sub. (2) (a) 8. and 9. and this subsection and limited to the amount of net income, but no loss incurred for a taxable year before taxable year 1987 by a nonprofit service plan of sickness care under ch. 148, or dental care under s. 447.13 may be treated as a net business loss of the successor service insurer under ch. 613 operating by virtue of s. 148.03 or 447.13. For purposes of this paragraph, the dividends received deduction under s. 71.26 (3) (j) may not be used in the determination of a net business loss.

SB70-AA1,9337 Section 9337. Initial applicability; Revenue.

SB70-AA1,514,2 (1) Dividends received deduction. The treatment of ss. 71.26 (3) (j) and (4) (a) and 71.45 (4) (a) first applies to taxable years beginning after December 31, 2022.”.

SB70-AA1,514,3 190. Page 374, line 11: after that line insert:

SB70-AA1,514,4 “ Section 1122. 71.05 (8) (a) of the statutes is amended to read:

SB70-AA1,514,11 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.

SB70-AA1,1123 Section 1123. 71.05 (8) (b) 1. of the statutes is renumbered 71.05 (8) (b) and amended to read:

SB70-AA1,515,4 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.

SB70-AA1,1124 Section 1124. 71.05 (8) (b) 2. of the statutes is repealed.

SB70-AA1,1125 Section 1125. 71.05 (8) (c) of the statutes is repealed.

SB70-AA1,1126 Section 1126. 71.80 (25) (a) of the statutes is renumbered 71.80 (25) and amended to read:

SB70-AA1,515,13 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.

SB70-AA1,1127 Section 1127. 71.80 (25) (b) of the statutes is repealed.

SB70-AA1,9337 Section 9337. Initial applicability; Revenue.

SB70-AA1,515,18 (1) Net operating losses. The treatment of ss. 71.05 (8) (a), (b) 1. and 2., and (c) and 71.80 (25) (a) and (b) first applies to taxable years beginning after December 31, 2022.”.

SB70-AA1,515,19 191. Page 374, line 11: after that line insert:

SB70-AA1,515,20 “ Section 1128. 71.05 (6) (b) 4. (intro.) of the statutes is amended to read:

SB70-AA1,516,11 71.05 (6) (b) 4. (intro.) Disability For taxable years beginning before January 1, 2023, disability payments other than disability payments that are paid from a retirement plan, the payments from which are exempt under subd. subds. 54. and 54m. 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:

SB70-AA1,1129 Section 1129. 71.05 (6) (b) 4m. of the statutes is created to read:

SB70-AA1,517,2 71.05 (6) (b) 4m. For taxable years beginning after December 31, 2022, disability payments other than disability payments that are paid from a retirement plan, the payments from which are exempt under subds. 54. and 54m. 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:

SB70-AA1,517,6 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.

SB70-AA1,517,10 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.

SB70-AA1,517,14 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.”.

SB70-AA1,517,15 192. Page 374, line 11: after that line insert:

SB70-AA1,517,16 “ Section 1130. 77.54 (62) of the statutes is repealed.

SB70-AA1,9437 Section 9437. Effective dates; Revenue.

SB70-AA1,517,19 (1) Sales and use tax exemption for farm-raised deer. The treatment of s. 77.54 (62) takes effect on the first day of the 3rd month beginning after publication.”.

SB70-AA1,517,20 193. Page 374, line 11: after that line insert:

SB70-AA1,517,21 “ Section 1131. 238.399 (3) (a) of the statutes is amended to read:

SB70-AA1,517,23 238.399 (3) (a) The corporation may designate any number of not more than 30 enterprise zones in this state.

SB70-AA1,1132 Section 1132. 238.399 (3) (am) of the statutes is repealed.

SB70-AA1,1133 Section 1133. 238.399 (3) (em) of the statutes is created to read:

SB70-AA1,518,7 238.399 (3) (em) If the corporation revokes all certifications for tax benefits within a designated enterprise zone or all certifications for tax benefits within a designated enterprise zone expire, the corporation may cancel the designation of that enterprise zone. After canceling the designation of an enterprise zone, the corporation may designate a new enterprise zone subject to the limits under this subsection.

SB70-AA1,9149 Section 9149. Nonstatutory provisions; Wisconsin Economic Development Corporation.

SB70-AA1,518,13 (1) Enterprise zone designation limit. The treatment of s. 238.399 (3) (a) may not be construed to require that the Wisconsin Economic Development Corporation revoke a certification for tax benefits under s. 238.399 that is in effect on the effective date of this subsection.”.

SB70-AA1,518,14 194. Page 374, line 11: after that line insert:

SB70-AA1,518,15 “ Section 1. 139.44 (4) of the statutes is amended to read:

SB70-AA1,518,19 139.44 (4) Any person who refuses to permit the examination or inspection authorized in s. 139.39 (2) or 139.83 (1) may be fined not more than $500 or imprisoned not more than 90 days or both. Such refusal shall be cause for immediate suspension or revocation of permit by the secretary.

SB70-AA1,2 Section 2. 139.75 (1m) of the statutes is created to read:

SB70-AA1,518,24 139.75 (1m) “Cigar” means a roll, of any size or shape, of tobacco for smoking that is made wholly or in part of tobacco, regardless of whether the tobacco is pure, flavored, adulterated, or mixed with an ingredient, if the roll has a wrapper made wholly or in part of tobacco.

SB70-AA1,3 Section 3. 139.75 (4t) of the statutes is created to read:

SB70-AA1,519,3 139.75 (4t) “Little cigar” means a cigar that has an integrated cellulose acetate filter and is wrapped in a substance containing tobacco.

SB70-AA1,4 Section 4. 139.75 (12) of the statutes is amended to read:

SB70-AA1,519,12 139.75 (12) “Tobacco products" means cigars; little cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready-rubbed and other smoking tobacco; snuff, including moist snuff; snuff flour; cavendish; plug and twist tobacco; fine cut and other chewing tobaccos; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco and other kinds and forms of tobacco prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking; but “tobacco products" does not include cigarettes, as defined under s. 139.30 (1m).

SB70-AA1,5 Section 5. 139.76 (1) of the statutes is amended to read:

SB70-AA1,520,7 139.76 (1) An excise tax is imposed upon the sale, offering or exposing for sale, possession with intent to sell or removal for consumption or sale or other disposition for any purpose of tobacco products by any person engaged as a distributor of them at the rate, for tobacco products, not including moist snuff and vapor products, of 71 percent of the manufacturer's established list price to distributors without diminution by volume or other discounts on domestic products and, for moist snuff, at the rate of 100 percent of the manufacturer's established list price to distributors without diminution by volume or other discounts on domestic products. The tax imposed under this subsection on cigars shall not exceed an amount equal to 50 cents for each cigar. On products imported from another country, not including moist snuff and vapor products, the rate of tax is 71 percent of the amount obtained by adding the manufacturer's list price to the federal tax, duties and transportation costs to the United States. On moist snuff imported from another country, the rate of the tax is 100 percent of the amount obtained by adding the manufacturer's list price to the federal tax, duties, and transportation costs to the United States. The tax attaches at the time the tobacco products are received by the distributor in this state. The tax shall be passed on to the ultimate consumer of the tobacco products. All tobacco products received in this state for sale or distribution within this state, except tobacco products actually sold as provided in sub. (2), shall be subject to such tax.

SB70-AA1,6u Section 6u. 139.76 (1) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB70-AA1,520,21 139.76 (1) An excise tax is imposed upon the sale, offering or exposing for sale, possession with intent to sell or removal for consumption or sale or other disposition for any purpose of tobacco products by any person engaged as a distributor of them at the rate, for tobacco products, not including moist snuff and vapor products little cigars, of 71 percent of the manufacturer's list price and, for moist snuff, at the rate of 100 percent of the manufacturer's list price. The tax imposed under this subsection on cigars, except little cigars, shall not exceed an amount equal to 50 cents for each cigar. The tax attaches at the time the tobacco products are received by the distributor in this state. The tax shall be passed on to the ultimate consumer of the tobacco products. All tobacco products received in this state for sale or distribution within this state, except tobacco products actually sold as provided in sub. (2), shall be subject to such tax.

SB70-AA1,7 Section 7. 139.76 (1b) of the statutes is created to read:

SB70-AA1,521,4 139.76 (1b) The tax under sub. (1) is imposed on little cigars at the rate of 126 mills on each little cigar, regardless of weight. To evidence payment of the tax imposed under this section on little cigars, the department shall provide stamps. A person who has paid the tax shall affix stamps of the proper denomination to each package in which little cigars are packed, prior to the first sale within this state. Section 139.32 as it applies to the tax under s. 139.31 applies to the tax imposed under this section on little cigars.

SB70-AA1,8 Section 8. 139.78 (1) of the statutes is amended to read:

SB70-AA1,521,14 139.78 (1) A tax is imposed upon the use or storage by consumers of tobacco products in this state at the rate, for tobacco products, not including moist snuff and vapor products, of 71 percent of the cost of the tobacco products manufacturer's list price and, for moist snuff, at the rate of 100 percent of the manufacturer's established list price to distributors without diminution by volume or other discounts on domestic products. The tax imposed under this subsection on cigars shall not exceed an amount equal to 50 cents for each cigar. The tax does not apply if the tax imposed by s. 139.76 (1) on the tobacco products has been paid or if the tobacco products are exempt from the tobacco products tax under s. 139.76 (2).

SB70-AA1,9u Section 9u. 139.78 (1) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB70-AA1,521,24 139.78 (1) A tax is imposed upon the use or storage by consumers of tobacco products in this state at the rate, for tobacco products, not including moist snuff and vapor products little cigars, of 71 percent of the manufacturer's list price and, for moist snuff, at the rate of 100 percent of the manufacturer's list price. The tax imposed under this subsection on cigars, except little cigars, shall not exceed an amount equal to 50 cents for each cigar. The tax does not apply if the tax imposed by s. 139.76 (1) on the tobacco products has been paid or if the tobacco products are exempt from the tobacco products tax under s. 139.76 (2).

SB70-AA1,10 Section 10. 139.78 (1b) of the statutes is created to read:

SB70-AA1,522,5 139.78 (1b) A tax is imposed and levied upon the use or storage of little cigars in this state by any person for any purpose. The tax is levied and shall be collected at the same rate as provided for in s. 139.76 (1b). The tax under this subsection does not apply if the tax imposed by s. 139.76 (1) has been paid or if the little cigars are exempt from tax under s. 139.76 (2).

SB70-AA1,11 Section 11. 139.83 of the statutes is renumbered 139.83 (1).

SB70-AA1,12 Section 12. 139.83 (2) of the statutes is created to read:

SB70-AA1,522,11 139.83 (2) Sections 139.315, 139.32, 139.321, 139.322, 139.34, 139.35, 139.36, 139.362, 139.363, 139.38, 139.395, 139.41, 139.42, 139.43, and 139.44 (8), as they apply to the taxes under subch. II, apply to the administration and enforcement of this subchapter for little cigars.

SB70-AA1,9437 Section 9437. Effective dates; Revenue.

SB70-AA1,522,16 (1) Little cigars. The treatment of ss. 139.44 (4), 139.75 (1m), (4t), and (12), 139.76 (1) (by Section 6u) and (1b), and 139.78 (1) (by Section 9u) and (1b), the renumbering of s. 139.83, and the creation of s. 139.83 (2) take effect on the first day of the 3rd month beginning after publication.”.

SB70-AA1,522,17 195. Page 374, line 11: after that line insert:

SB70-AA1,522,18 “ Section 1134. 71.07 (3w) (a) 2m. of the statutes is created to read:

SB70-AA1,522,20 71.07 (3w) (a) 2m. “Contract” means the contract between the claimant and the Wisconsin Economic Development Corporation under s. 238.399.

SB70-AA1,1135 Section 1135. 71.07 (3w) (a) 6. of the statutes is renumbered 71.07 (3w) (a) 6. a. and amended to read:

SB70-AA1,523,2 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.

SB70-AA1,1136 Section 1136. 71.07 (3w) (a) 6. b. of the statutes is created to read:

SB70-AA1,523,6 71.07 (3w) (a) 6. b. For a claimant whose contract is executed after December 31, 2023, “zone payroll" does not include the amount of wages paid to any full-time employees that exceeds $141,300.

SB70-AA1,1137 Section 1137. 71.07 (3w) (b) (intro.) of the statutes is amended to read:

SB70-AA1,523,11 71.07 (3w) (b) Filing claims under pre-2024 contracts; payroll. (intro.) Subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant whose contract is executed prior to January 1, 2024, may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount calculated as follows: