Amendment AA1-SB70

SB70-AA1,535,6 71.47 (3w) (a) 2m. “Contract” means a contract between the claimant and the Wisconsin Economic Development Corporation under s. 238.399.

SB70-AA1,1165 Section 1165. 71.47 (3w) (a) 6. of the statutes is renumbered 71.47 (3w) (a) 6. a. and amended to read:

SB70-AA1,535,12 71.47 (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-AA1,1166 Section 1166. 71.47 (3w) (a) 6. b. of the statutes is created to read:

SB70-AA1,535,16 71.47 (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-AA1,1167 Section 1167. 71.47 (3w) (b) (intro.) of the statutes is amended to read:

SB70-AA1,535,21 71.47 (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. 71.43 an amount calculated as follows:

SB70-AA1,1168 Section 1168. 71.47 (3w) (bd) of the statutes is created to read:

SB70-AA1,536,2 71.47 (3w) (bd) Filing claims under post-2023 contracts; payroll. Subject to the limitations provided in this subsection and s. 238.399, a claimant whose contract is executed after December 31, 2023, may claim as a credit against the tax imposed under s. 71.43 an amount calculated as follows:

SB70-AA1,536,3 1. Determine the amount that is the lesser of:

SB70-AA1,536,10 a. The number of full-time employees whose annual wages are greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year, minus the number of full-time employees whose annual wages were greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the area that comprises the enterprise zone in the base year.

SB70-AA1,536,16 b. The number of full-time employees whose annual wages are greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the state in the taxable year, minus the number of full-time employees whose annual wages were greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the state in the base year.

SB70-AA1,536,23 2. Determine the claimant's average zone payroll by dividing total wages for full-time employees whose annual wages are greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year by the number of full-time employees whose annual wages are greater than $32,000 or greater than $42,390 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year.

SB70-AA1,537,3 3. For employees in a tier I county or municipality, subtract $32,000 from the amount determined under subd. 2. and for employees in a tier II county or municipality, subtract $42,390 from the amount determined under subd. 2.

SB70-AA1,537,5 4. Multiply the amount determined under subd. 3. by the amount determined under subd. 1.

SB70-AA1,537,7 5. Multiply the amount determined under subd. 4. by the percentage determined under s. 238.399, not to exceed 7 percent.

SB70-AA1,1169 Section 1169. 71.47 (3w) (bm) 1. of the statutes is amended to read:

SB70-AA1,537,19 71.47 (3w) (bm) 1. In addition to the credits under par. pars. (b) and (bd) and subds. 2., 3., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.43 an amount equal to a percentage, as determined under s. 238.399 or s. 560.799, 2009 stats., not to exceed 100 percent, of the amount the claimant paid in the taxable year to upgrade or improve the job-related skills of any of the claimant's full-time employees, to train any of the claimant's full-time employees on the use of job-related new technologies, or to provide job-related training to any full-time employee whose employment with the claimant represents the employee's first full-time job. This subdivision does not apply to employees who do not work in an enterprise zone.

SB70-AA1,1170 Section 1170. 71.47 (3w) (bm) 2. of the statutes is renumbered 71.47 (3w) (bm) 2. (intro.) and amended to read:

SB70-AA1,537,25 71.47 (3w) (bm) 2. (intro.) In addition to the credits under par. pars. (b) and (bd) and subds. 1., 3., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.43 one of the following amounts:

SB70-AA1,538,12 a. For a claimant whose contract is executed prior to January 1, 2024, an amount equal to the percentage, as determined under s. 238.399 or s. 560.799, 2009 stats., not to exceed 7 percent, of the claimant's zone payroll paid in the taxable year to all of the claimant's full-time employees whose annual wages are greater than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality, not including the wages paid to the employees determined under par. (b) 1., or greater than $30,000 in a tier II county or municipality, not including the wages paid to the employees determined under par. (b) 1., and who the claimant employed in the enterprise zone in the taxable year, if the total number of such employees is equal to or greater than the total number of such employees in the base year. A claimant may claim a credit under this subdivision for no more than 5 consecutive taxable years.

SB70-AA1,1171 Section 1171. 71.47 (3w) (bm) 2. b. of the statutes is created to read:

SB70-AA1,538,23 71.47 (3w) (bm) 2. b. For a claimant whose contract is executed after December 31, 2023, an amount equal to the percentage, as determined under s. 238.399, not to exceed 7 percent, of the claimant's zone payroll paid in the taxable year to all of the claimant's full-time employees whose annual wages are greater than $32,000 in a tier I county or municipality, not including the wages paid to the employees determined under par. (bd) 1., or greater than $42,390 in a tier II county or municipality, not including the wages paid to the employees determined under par. (bd) 1., and who the claimant employed in the enterprise zone in the taxable year, if the total number of such employees is equal to or greater than the total number of such employees in the base year.

SB70-AA1,1172 Section 1172. 71.47 (3w) (bm) 3. of the statutes is amended to read:

SB70-AA1,539,6 71.47 (3w) (bm) 3. In addition to the credits under par. pars. (b) and (bd) and subds. 1., 2., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s. 71.43 up to 10 percent of the claimant's significant capital expenditures, as determined under s. 238.399 (5m) or s. 560.799 (5m), 2009 stats.

SB70-AA1,1173 Section 1173. 71.47 (3w) (bm) 4. of the statutes is amended to read:

SB70-AA1,539,16 71.47 (3w) (bm) 4. In addition to the credits under par. pars. (b) and (bd) and subds. 1., 2., and 3., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., for taxable years beginning after December 31, 2009, a claimant may claim as a credit against the tax imposed under s. 71.43, up to 1 percent of the amount that the claimant paid in the taxable year to purchase tangible personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services from Wisconsin vendors, as determined under s. 238.399 (5) (e) or s. 560.799 (5) (e), 2009 stats., except that the claimant may not claim the credit under this subdivision and subd. 3. for the same expenditures.

SB70-AA1,1174 Section 1174. 71.47 (3w) (c) 5. of the statutes is created to read:

SB70-AA1,539,19 71.47 (3w) (c) 5. A claimant may claim a credit under par. (bm) 2. for no more than 5 consecutive taxable years.

SB70-AA1,1175 Section 1175. 71.47 (3w) (cm) of the statutes is created to read:

SB70-AA1,540,5 71.47 (3w) (cm) Inflation adjustments. For taxable years beginning after December 31, 2024, the dollar amounts in pars. (a) 6. b., (bd) 1. a. and b., 2., and 3., and (bm) 2. b. 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 of the year before the previous year, as determined by the federal department of labor. 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.

SB70-AA1,1176 Section 1176. 238.30 (2m) (a) of the statutes is amended to read:

SB70-AA1,540,13 238.30 (2m) (a) Except as provided in par. (b) and s. 238.308 (1) (b), “full-time job" means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay that is equal to at least 150 percent of the federal minimum wage and benefits that are not required by federal or state law. “Full-time job" does not include initial training before an employment position begins.

SB70-AA1,1177 Section 1177. 238.308 (1) of the statutes is renumbered 238.308 (1) (intro.) and amended to read:

SB70-AA1,540,16 238.308 (1) Definition Definitions. (intro.) In this section,:

SB70-AA1,540,18 (a) “eligible Eligible employee" means a person employed in a full-time job by a person certified under sub. (2).

SB70-AA1,1178 Section 1178. 238.308 (1) (b) of the statutes is created to read:

SB70-AA1,540,21 238.308 (1) (b) 1. Except as provided in subd. 2., “full-time job” has the meaning given in s. 238.30 (2m).

SB70-AA1,541,2 2. For contracts executed by the corporation under this section after December 31, 2023, “full-time job” means a regular, nonseasonal full-time position for which an individual receives pay that is equal to at least $32,000 and benefits that are not required by federal or state law. “Full-time job" does not include initial training before an employment position begins.

SB70-AA1,1179 Section 1179. 238.308 (4) (a) 1. of the statutes is amended to read:

SB70-AA1,541,16 238.308 (4) (a) 1. An amount equal to up to 10 percent of the amount of wages that the person paid to an eligible employee in the taxable year. For contracts executed by the corporation after December 31, 2023, the amount of wages taken into account under this subdivision may not exceed $141,300 per eligible employee per year. Beginning on January 1, 2025, the dollar amount under this subdivision 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 of the year before the previous year, as determined by the federal department of labor. Each amount that is revised under this subdivision 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.

SB70-AA1,1180 Section 1180. 238.399 (1) (am) 2. of the statutes is repealed and recreated to read:

SB70-AA1,541,23 238.399 (1) (am) 2. For contracts executed by the corporation under this section after December 31, 2023, the individual is employed in a regular, nonseasonal full-time position for which the individual receives annual pay that is more than $32,000 in a tier I county or municipality or more than 42,390 in a tier II county or municipality and benefits that are not required by federal or state law.

SB70-AA1,1181 Section 1181. 238.399 (6) (h) of the statutes is created to read:

SB70-AA1,542,9 238.399 (6) (h) Beginning on January 1, 2025, the dollar amount in sub. (1) (am) 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 of the year before the previous year, as determined by the federal department of labor. 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.”.

SB70-AA1,542,10 196. Page 374, line 11: after that line insert:

SB70-AA1,542,11 “ Section 1182. 76.07 (3) of the statutes is amended to read:

SB70-AA1,543,2 76.07 (3) Assessment. For the purpose of determining the full market value of the property of each company appearing on the assessment roll, the department may view and inspect the property of such the company and shall consider the reports filed in compliance with s. 76.04 and the reports and returns of the company filed in the office of any officer of this state, and other evidence or information bearing upon the full market value of the property of the company assessed. In case of For companies which that own or use property lying partly within and partly without the state, the department shall value and assess only the property within this state, using the methods under subs. (4g) and (4r). When the full market value of the property of a company within this state has been determined, the amount shall be entered upon the assessment roll opposite the name of the company and shall be the assessment of the entire property of such the company within this state for the levy of taxes thereon, subject to review and correction. The department shall thereupon give notice by certified mail to each company assessed of the amount of its assessment as entered upon such the roll.

SB70-AA1,1183 Section 1183. 76.08 (1) of the statutes is amended to read:

SB70-AA1,543,24 76.08 (1) Notice of the assessments determined under s. 76.07 and of adjustments under s. 76.075 shall be given by certified mail to each company the property of which has been assessed, and the notice of assessment shall be mailed provided on or before the assessment date specified in s. 76.07 (1). Any company aggrieved by the assessment or adjustment of its property thus made may have its assessment or adjustment redetermined by the Dane County circuit court if, within 30 days after notice of assessment or adjustment is mailed provided to the company under s. 76.07 (3), an action for the redetermination is commenced by filing a summons and complaint with that court, and service of authenticated copies of the summons and complaint is made upon the department of revenue. No answer need be filed by the department and the allegations of the complaint in opposition to the assessment or adjustment shall be deemed denied. Upon the filing of the summons and complaint, the court shall set the matter for hearing without a jury. If the plaintiff fails to file the summons and complaint within 5 days of service upon the department, the department may file a copy thereof with the court in lieu of the original. The department may be named as the defendant in any such action and shall appear and be represented by its counsel in all proceedings connected with the action but, on the request of the secretary of revenue, the attorney general may participate with or serve in lieu of departmental counsel. In an action for redetermination of an adjustment, only the issues raised in the department's adjustment under s. 76.075 may be raised.

SB70-AA1,1184 Section 1184. 76.10 (1) of the statutes is amended to read:

SB70-AA1,544,22 76.10 (1) Every company defined in s. 76.02 shall, on or before October 1 in each year, be entitled, on its own motion, to present evidence before the department relating to the state assessment made in the preceding year pursuant to s. 70.575. On written request, in writing, for such hearing or presentation, the department shall fix a time therefor within 60 days after such the application is filed, the same to be conducted in such manner as the department directs. Notice of such the hearing shall be mailed provided to any company requesting a hearing and shall be published in the official state paper. Within 30 days after the conclusion of such the hearing, the department shall enter an order either affirming the state assessment or ordering correction thereof as provided in sub. (2). A copy of such the order shall be sent by certified mail provided to the company or companies requesting such the hearing and to any interested party who has made an appearance in such the proceeding. The department may, on its own motion, correct such the state assessment. Any company having filed application for review of the state assessment pursuant to this section, or any other interested party participating in such the hearing, if aggrieved by the order entered by the department, may bring an action in the circuit court for Dane County within 30 days after the entry of such the order to have said order set aside and a redetermination made of the state assessment. In any such action or in any hearing before the department pursuant to this section, any interested party may appear and be heard. An interested party includes any division of government whose revenues would be affected by any adjustment of the state assessment.

SB70-AA1,1185 Section 1185. 76.13 (2) of the statutes is amended to read:

SB70-AA1,545,13 76.13 (2) Every tax roll upon completion shall be delivered to the secretary of administration. The department shall notify, by certified mail, all companies listed on the tax roll of the amount of tax due, which shall be paid to the department. The payment dates provided for in sub. (2a) shall apply. The payment of one-fourth of the tax of any company may, if the company has brought an action in the Dane County circuit court under s. 76.08, be made without delinquent interest as provided in s. 76.14 any time prior to the date upon which the appeal becomes final, but any part of the tax ultimately required to be paid shall bear interest from the original due date to the date the appeal became final at the rate of 12 percent per year and at 1.5 percent per month thereafter until paid. The taxes extended against any company after the same become due, with interest, shall be a lien upon all the property of the company prior to all other liens, claims, and demands whatsoever, except as provided in ss. 292.31 (8) (i) and 292.81, which and the lien may be enforced in an action in the name of the state in any court of competent jurisdiction against the property of the company within the state as an entirety.

SB70-AA1,1186 Section 1186. 76.15 (2) of the statutes is amended to read:

SB70-AA1,546,2 76.15 (2) The power to reassess the property of any company defined in s. 76.02 and the general property of the state, and to redetermine the average rate of taxation, may be exercised under sub. (1) as often as may be necessary until the amount of taxes legally due from any such company for any year under ss. 76.01 to 76.26 has been finally and definitely determined. Whenever any sum or part thereof, levied upon any property subject to taxation under ss. 76.01 to 76.26 so set aside has been paid and not refunded, the payment so made shall be applied upon the reassessment upon the property, and the reassessment of taxes to that extent shall be deemed to be satisfied. When the tax roll on the reassessment is completed and delivered to the secretary of administration, the department shall immediately notify by certified mail each of the several companies taxed to pay the amount of the taxes extended on the tax roll within 30 days.”.

SB70-AA1,546,3 197. Page 374, line 11: after that line insert:

SB70-AA1,546,4 “ Section 1187. 71.07 (9e) (aj) (intro.) of the statutes is amended to read:

SB70-AA1,546,9 71.07 (9e) (aj) (intro.) For taxable years beginning after December 31, 2010, and before January 1, 2023, an individual may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the person is eligible for the taxable year under section 32 of the Internal Revenue Code:

SB70-AA1,1188 Section 1188. 71.07 (9e) (ak) of the statutes is created to read:

SB70-AA1,546,15 71.07 (9e) (ak) For taxable years beginning after December 31, 2022, an individual may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the individual is eligible for the taxable year under section 32 of the Internal Revenue Code:

SB70-AA1,546,17 1. If the individual has one qualifying child who has the same principal place of abode as the individual, 16 percent.

SB70-AA1,546,19 2. If the individual has 2 qualifying children who have the same principal place of abode as the individual, 25 percent.

SB70-AA1,546,21 3. If the individual has 3 or more qualifying children who have the same principal place of abode as the individual, 34 percent.

SB70-AA1,1189 Section 1189. 73.03 (73) (f) 1. of the statutes is amended to read:

SB70-AA1,547,3 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), based on the specifications described under pars. (b) and (c) 2.”.

SB70-AA1,547,4 198. Page 374, line 11: after that line insert:

SB70-AA1,547,5 “ Section 1190. 71.54 (1) (g) (intro.) of the statutes is amended to read:

SB70-AA1,547,8 71.54 (1) (g) 2012 and thereafter to 2023. (intro.) The amount of any claim filed in 2012 and thereafter to 2023 and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:

SB70-AA1,1191 Section 1191. 71.54 (1) (g) 4. of the statutes is amended to read:

SB70-AA1,547,16 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.

SB70-AA1,1192 Section 1192. 71.54 (1) (g) 5. of the statutes is repealed.

SB70-AA1,1193 Section 1193. 71.54 (1) (g) 6. (intro.) of the statutes is amended to read:

SB70-AA1,547,22 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:

SB70-AA1,1194 Section 1194. 71.54 (1) (g) 7. of the statutes is repealed.

SB70-AA1,1195 Section 1195. 71.54 (1) (h) of the statutes is created to read:

SB70-AA1,548,3 71.54 (1) (h) 2024 and thereafter. Subject to sub. (2m), the amount of any claim filed in 2024 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:

SB70-AA1,548,6 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.

SB70-AA1,548,11 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 5.614 percent of the household income exceeding $8,060.

SB70-AA1,548,12 3. No credit may be allowed if the household income exceeds $35,000.

SB70-AA1,548,14 4. Notwithstanding the time limitations described in par. (g) (intro.), the provisions of par. (g) 4. apply to claims filed under this paragraph.

SB70-AA1,1196 Section 1196. 71.54 (2) (b) 4. of the statutes is amended to read:

SB70-AA1,548,17 71.54 (2) (b) 4. In calendar years 2011 or any subsequent calendar year to 2022, $1,460.

SB70-AA1,1197 Section 1197. 71.54 (2) (b) 5. of the statutes is created to read:

SB70-AA1,548,20 71.54 (2) (b) 5. Subject to sub. (2m), in calendar year 2023 or any subsequent calendar year, $1,460.

SB70-AA1,1198 Section 1198. 71.54 (2m) of the statutes is amended to read:

SB70-AA1,549,14 71.54 (2m) Indexing for inflation; 2010 2024 and thereafter. (a) For calendar years beginning after December 31, 2009, and before January 1, 2011 2023, 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 2021 through July 2008 2022, 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.

SB70-AA1,549,20 (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.

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