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71.07
(5m) (e)
Sunset. No credit may be claimed under this subsection for
6taxable years beginning after December 31, 2022.
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7Section
2. 71.07 (5me) of the statutes is created to read:
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71.07
(5me) Family and individual reinvestment credit. (a)
Definitions. In
9this subsection:
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1. “Claimant" means an individual who is eligible to claim the credit under this
11subsection.
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2. “Household" means a claimant and an individual related to the claimant as
13husband or wife.
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13. “Net tax liability" means a claimant's income tax liability after he or she
2completes the computations for nonrefundable credits listed in s. 71.10 (4) (a) to (gy).
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(b)
Filing claims. For taxable years beginning after December 31, 2022, and
4subject to the limitations provided in this subsection, a claimant may claim as a
5credit against the tax imposed under s. 71.02, up to the amount of those taxes, one
6of the following amounts:
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1. If the claimant is single or files as a head of household and his or her adjusted
8gross income is less than $100,000 in the year to which the claim relates, the greater
9of $100 or an amount equal to 10 percent of his or her net tax liability.
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2. If the claimant is single or files as a head of household and his or her adjusted
11gross income is at least $100,000 but less than $120,000 in the year to which the
12claim relates, an amount that is calculated as follows:
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a. Calculate the value of a fraction, the denominator of which is $20,000 and
14the numerator of which is the difference between the claimant's adjusted gross
15income and $100,000.
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b. Subtract from 1.0 the amount that is calculated under subd. 2. a.
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c. Multiply the amount that is calculated under subd. 2. b. by 10 percent.
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d. Multiply the amount of the claimant's net income tax liability by the amount
19that is calculated under subd. 2. c.
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3. If the claimant is married and filing jointly and the sum of the claimant's
21adjusted gross income and his or her spouse's adjusted gross income is less than
22$150,000 in the year to which the claim relates, the greater of $100 or an amount
23equal to 10 percent of the married couple's net tax liability.
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4. If the claimant is married and filing jointly and the sum of the claimant's
25adjusted gross income and his or her spouse's adjusted gross income is at least
1$150,000 but less than $175,000 in the year to which the claim relates, an amount
2that is calculated as follows:
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a. Calculate the value of a fraction, the denominator of which is $25,000 and
4the numerator of which is the difference between the married couple's adjusted gross
5income and $150,000.
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b. Subtract from 1.0 the amount that is calculated under subd. 4. a.
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c. Multiply the amount that is calculated under subd. 4. b. by 10 percent.
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d. Multiply the amount of the married couple's net income tax liability by the
9amount that is calculated under subd. 4. c.
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5. If the claimant is married and filing separately and his or her adjusted gross
11income is less than $75,000 in the year to which the claim relates, the greater of $50
12or an amount equal to 10 percent of his or her net tax liability.
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6. If the claimant is married and filing separately and his or her adjusted gross
14income is at least $75,000 but less than $87,500 in the year to which the claim relates,
15an amount that is calculated as follows:
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a. Calculate the value of a fraction, the denominator of which is $12,500 and
17the numerator of which is the difference between the claimant's adjusted gross
18income and $75,000.
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b. Subtract from 1.0 the amount that is calculated under subd. 6. a.
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c. Multiply the amount that is calculated under subd. 6. b. by 10 percent.
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d. Multiply the amount of the claimant's net income tax liability by the amount
22that is calculated under subd. 6. c.
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(c)
Limitations. 1. No credit may be allowed under this subsection unless it
24is claimed within the period under s. 71.75 (2).
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12. Part-year residents and nonresidents of this state are not eligible for the
2credit under this subsection.
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3. Except as provided in subd. 4., only one credit per household is allowed each
4year.
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4. If a married couple files separately, each spouse may claim the credit
6calculated under par. (b) 5. or 6., except a married person living apart from the other
7spouse and treated as single under section
7703 (b) of the Internal Revenue Code may
8claim the credit under par. (b) 1. or 2.
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5. The credit under this subsection may not be claimed by a person who may
10be claimed as a dependent on the individual income tax return of another taxpayer.
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(d)
Administration. The department of revenue may enforce the credit under
12this subsection and may take any action, conduct any proceeding, and proceed as it
13is authorized in respect to taxes under this chapter. The income tax provisions in this
14chapter relating to assessments, refunds, appeals, collection, interest, and penalties
15apply to the credit under this subsection.
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16Section
3. 71.10 (4) (gye) of the statutes is created to read:
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71.10
(4) (gye) Family and individual reinvestment credit under s. 71.07
18(5me).”.