Amendment AA19-ASA2-AB50

AB50-ASA2-AA19,21,16 “Section 42. 71.05 (1) (j) of the statutes is created to read:

AB50-ASA2-AA19,21,18 71.05 (1) (j) Tips. Amounts received as cash tips by an employee from the customers of the employee’s employer.

AB50-ASA2-AA19,43 Section 43. 71.05 (6) (b) 19. cm. of the statutes is amended to read:

AB50-ASA2-AA19,22,8 71.05 (6) (b) 19. cm. For taxable years beginning after December 31, 2020, for a person who is a nonresident or a part-year resident of this state, modify the amount calculated under subd. 19. b. by multiplying the amount by a fraction the numerator of which is the person’s wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the person’s total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 19. cm., for married persons filing separately “wages, salary, tips, unearned income, and net earnings from a trade or business” means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income, and net earnings from a trade or business” means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.

AB50-ASA2-AA19,44 Section 44. 71.05 (6) (b) 19. dm. of the statutes is amended to read:

AB50-ASA2-AA19,22,13 71.05 (6) (b) 19. dm. For taxable years beginning after December 31, 2020, reduce the amount calculated under subd. 19. b. or cm. to the person’s aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.

AB50-ASA2-AA19,45 Section 45. 71.05 (6) (b) 28. e. of the statutes is amended to read:

AB50-ASA2-AA19,23,2 71.05 (6) (b) 28. e. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 28. a., am., b., c. or d. by a fraction the numerator of which is the individual’s wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual’s total wages, salary, tips, unearned income and net earnings from a trade or business. In this subd. 28. e., for married persons filing separately “wages, salary, tips, unearned income and net earnings from a trade or business” means the separate wages, salary, tips, unearned income and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income and net earnings from a trade or business” means the total wages, salary, tips, unearned income and net earnings from a trade or business of both spouses.

AB50-ASA2-AA19,46 Section 46. 71.05 (6) (b) 28. f. of the statutes is amended to read:

AB50-ASA2-AA19,23,6 71.05 (6) (b) 28. f. Reduce the amount calculated under subd. 28. a., am., b., c., d. or e. to the individual’s aggregate wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state.

AB50-ASA2-AA19,47 Section 47. 71.05 (6) (b) 32. b. of the statutes is amended to read:

AB50-ASA2-AA19,23,19 71.05 (6) (b) 32. b. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 32. a. by a fraction the numerator of which is the individual’s wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual’s total wages, salary, tips, unearned income and net earnings from a trade or business. In this subd. 32. b., for married persons filing separately “wages, salary, tips, unearned income and net earnings from a trade or business” means the separate wages, salary, tips, unearned income and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income and net earnings from a trade or business” means the total wages, salary, tips, unearned income and net earnings from a trade or business of both spouses.

AB50-ASA2-AA19,48 Section 48. 71.05 (6) (b) 32. c. of the statutes is amended to read:

AB50-ASA2-AA19,23,23 71.05 (6) (b) 32. c. Reduce the amount calculated under subd. 32. a. or b. to the individual’s aggregate wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state.

AB50-ASA2-AA19,49 Section 49. 71.05 (6) (b) 33. b. of the statutes is amended to read:

AB50-ASA2-AA19,24,12 71.05 (6) (b) 33. b. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 33. a. by a fraction the numerator of which is the individual’s wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual’s total wages, salary, tips, unearned income and net earnings from a trade or business. In this subd. 33. b., for married persons filing separately “wages, salary, tips, unearned income and net earnings from a trade or business” means the separate wages, salary, tips, unearned income and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income and net earnings from a trade or business” means the total wages, salary, tips, unearned income and net earnings from a trade or business of both spouses.

AB50-ASA2-AA19,50 Section 50. 71.05 (6) (b) 33. c. of the statutes is amended to read:

AB50-ASA2-AA19,24,16 71.05 (6) (b) 33. c. Reduce the amount calculated under subd. 33. a. or b. to the individual’s aggregate wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state.

AB50-ASA2-AA19,51 Section 51. 71.05 (6) (b) 35. c. of the statutes is amended to read:

AB50-ASA2-AA19,25,5 71.05 (6) (b) 35. c. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 35. a. or b., by a fraction the numerator of which is the individual’s wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual’s total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 35. c., for married persons filing separately “wages, salary, tips, unearned income, and net earnings from a trade or business” means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income, and net earnings from a trade or business” means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.

AB50-ASA2-AA19,52 Section 52. 71.05 (6) (b) 35. d. of the statutes is amended to read:

AB50-ASA2-AA19,25,9 71.05 (6) (b) 35. d. Reduce the amount calculated under subd. 35. a., b., or c. to the individual’s aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.

AB50-ASA2-AA19,53 Section 53. 71.05 (6) (b) 38. c. of the statutes is amended to read:

AB50-ASA2-AA19,25,22 71.05 (6) (b) 38. c. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 38. a. or b., by a fraction the numerator of which is the individual’s wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual’s total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 38. c., for married persons filing separately “wages, salary, tips, unearned income, and net earnings from a trade or business” means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income, and net earnings from a trade or business” means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.

AB50-ASA2-AA19,54 Section 54. 71.05 (6) (b) 38. d. of the statutes is amended to read:

AB50-ASA2-AA19,26,2 71.05 (6) (b) 38. d. Reduce the amount calculated under subd. 38. a., b., or c. to the individual’s aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.

AB50-ASA2-AA19,55 Section 55. 71.05 (6) (b) 42. c. of the statutes is amended to read:

AB50-ASA2-AA19,26,15 71.05 (6) (b) 42. c. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 42. a. or b., by a fraction the numerator of which is the individual’s wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual’s total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 42. c., for married persons filing separately “wages, salary, tips, unearned income, and net earnings from a trade or business” means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income, and net earnings from a trade or business” means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.

AB50-ASA2-AA19,56 Section 56. 71.05 (6) (b) 42. d. of the statutes is amended to read:

AB50-ASA2-AA19,26,19 71.05 (6) (b) 42. d. Reduce the amount calculated under subd. 42. a., b., or c. to the individual’s aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.

AB50-ASA2-AA19,57 Section 57. 71.05 (6) (b) 43. f. of the statutes is amended to read:

AB50-ASA2-AA19,27,9 71.05 (6) (b) 43. f. An individual who is a nonresident or part-year resident of this state and who claims the subtraction under this subdivision shall multiply the amount calculated under subd. 43. a., b., c., or d. by a fraction the numerator of which is the individual’s wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual’s total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 43. f., for married persons filing separately “wages, salary, tips, unearned income, and net earnings from a trade or business” means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income, and net earnings from a trade or business” means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.

AB50-ASA2-AA19,58 Section 58. 71.63 (6) (n) (intro.) of the statutes is renumbered 71.63 (6) (n) and amended to read:

AB50-ASA2-AA19,27,12 71.63 (6) (n) In the form of tips paid to employees if:.

AB50-ASA2-AA19,59 Section 59. 71.63 (6) (n) 1. of the statutes is repealed.

AB50-ASA2-AA19,60 Section 60. 71.63 (6) (n) 2. of the statutes is repealed.

AB50-ASA2-AA19,9337 Section 9337. Initial applicability; Revenue.

AB50-ASA2-AA19,27,19 (1) The treatment of s. 71.05 (1) (j) and (6) (b) 19. cm. and dm., 28. e. and f., 32. b. and c., 33. b. and c., 35. c. and d., 38. c. and d., 42. c. and d., and 43. f., the renumbering and amendment of s. 71.63 (6) (n) (intro.), and the repeal of s. 71.63 (6) (n) 1. and 2. first apply to taxable years beginning after December 31, 2024.”.

AB50-ASA2-AA19,27,20 13. At the appropriate places, insert all of the following:

AB50-ASA2-AA19,27,21 “Section 61. 71.07 (3y) (b) 6. of the statutes is amended to read:

AB50-ASA2-AA19,28,4 71.07 (3y) (b) 6. For taxable years beginning after December 31, 2023, and before January 1, 2025, the amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for employees, not to exceed 15 percent of such investment, and, for taxable years beginning after December 31, 2023, the amount of the investment in establishing an employee child care program for employees, not to exceed 15 percent of such investment, as determined by the Wisconsin Economic Development Corporation.

AB50-ASA2-AA19,62 Section 62. 71.07 (3y) (b) 7. of the statutes is created to read:

AB50-ASA2-AA19,28,10 71.07 (3y) (b) 7. For taxable years beginning after December 31, 2024, the amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for employees, including contributions made by the person to a 3rd party responsible for building or rehabilitating workforce housing, including contributions made to a local revolving loan fund program, not to exceed 15 percent of such investment.

AB50-ASA2-AA19,63 Section 63. 71.28 (3y) (b) 6. of the statutes is amended to read:

AB50-ASA2-AA19,28,18 71.28 (3y) (b) 6. For taxable years beginning after December 31, 2023, and before January 1, 2025, the amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for employees, not to exceed 15 percent of such investment, and, for taxable years beginning after December 31, 2023, the amount of the investment made in establishing an employee child care program for employees, not to exceed 15 percent of such investment, as determined by the Wisconsin Economic Development Corporation.

AB50-ASA2-AA19,64 Section 64. 71.28 (3y) (b) 7. of the statutes is created to read:

AB50-ASA2-AA19,28,24 71.28 (3y) (b) 7. For taxable years beginning after December 31, 2024, the amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for employees, including contributions made by the person to a 3rd party responsible for building or rehabilitating workforce housing, including contributions made to a local revolving loan fund program, not to exceed 15 percent of such investment.

AB50-ASA2-AA19,65 Section 65. 71.47 (3y) (b) 6. of the statutes is amended to read:

AB50-ASA2-AA19,29,8 71.47 (3y) (b) 6. For taxable years beginning after December 31, 2023, and before January 1, 2025, the amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for employees, not to exceed 15 percent of such investment, and, for taxable years beginning after December 31, 2023, the amount of the investment made in establishing an employee child care program for employees, not to exceed 15 percent of such investment, as determined by the Wisconsin Economic Development Corporation.

AB50-ASA2-AA19,66 Section 66. 71.47 (3y) (b) 7. of the statutes is created to read:

AB50-ASA2-AA19,29,14 71.47 (3y) (b) 7. For taxable years beginning after December 31, 2024, the amount of the investment in workforce housing, as defined in s. 234.66 (1) (i), for employees, including contributions made by the person to a 3rd party responsible for building or rehabilitating workforce housing, including contributions made to a local revolving loan fund program, not to exceed 15 percent of such investment.

AB50-ASA2-AA19,67 Section 67. 238.308 (4) (a) 6. of the statutes is amended to read:

AB50-ASA2-AA19,29,21 238.308 (4) (a) 6. For taxable years beginning after December 31, 2023, and before January 1, 2025, an amount equal to up to 15 percent of the person’s investment in workforce housing, as defined in s. 234.66 (1) (i), for employees and, for taxable years beginning after December 31, 2023, up to 15 percent of the person’s investment in establishing an employee child care program for employees. Such investments may include only capital expenditures made by the person.

AB50-ASA2-AA19,68 Section 68. 238.308 (4) (a) 7. of the statutes is created to read:

AB50-ASA2-AA19,30,3 238.308 (4) (a) 7. For taxable years beginning after December 31, 2024, an amount equal to up to 15 percent of the person’s investment in workforce housing, as defined in s. 234.66 (1) (i). Such investments may include contributions made by the person to a 3rd party responsible for building or rehabilitating workforce housing, including contributions made to a local revolving loan fund program.”.

AB50-ASA2-AA19,30,4 14. At the appropriate places, insert all of the following:

AB50-ASA2-AA19,30,5 “Section 69. 71.05 (6) (b) 4. (intro.) of the statutes is amended to read:

AB50-ASA2-AA19,30,19 71.05 (6) (b) 4. (intro.) Disability For taxable years beginning before January 1, 2025, disability payments other than disability payments that are paid from a retirement plan, the payments from which are exempt under subd. 54. 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:

AB50-ASA2-AA19,70 Section 70. 71.05 (6) (b) 4m. of the statutes is created to read:

AB50-ASA2-AA19,31,11 71.05 (6) (b) 4m. For taxable years beginning after December 31, 2024, disability payments other than disability payments that are paid from a retirement plan, the payments from which are exempt under subd. 54. 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:

AB50-ASA2-AA19,31,15 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.

AB50-ASA2-AA19,31,19 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.

AB50-ASA2-AA19,31,23 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.”.

AB50-ASA2-AA19,32,1 15. At the appropriate places, insert all of the following:

AB50-ASA2-AA19,32,2 “Section 71. 71.05 (6) (b) 59. of the statutes is created to read:

AB50-ASA2-AA19,32,6 71.05 (6) (b) 59. For taxable years beginning after December 31, 2026, to the extent not otherwise excluded from Wisconsin taxable income if not for this subdivision, the amount of membership dues and expenses paid by the claimant during the taxable year to a labor organization, as defined in s. 5.02 (8m).”.

AB50-ASA2-AA19,32,7 16. At the appropriate places, insert all of the following:

AB50-ASA2-AA19,32,8 “Section 72. 71.54 (1) (g) (intro.) of the statutes is amended to read:

AB50-ASA2-AA19,32,11 71.54 (1) (g) 2012 and thereafter to 2025. (intro.) The amount of any claim filed in 2012 and thereafter to 2025 and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:

AB50-ASA2-AA19,73 Section 73. 71.54 (1) (g) 4. of the statutes is amended to read:

AB50-ASA2-AA19,32,19 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.

AB50-ASA2-AA19,74 Section 74. 71.54 (1) (g) 5. of the statutes is repealed.

AB50-ASA2-AA19,75 Section 75. 71.54 (1) (g) 6. (intro.) of the statutes is amended to read:

AB50-ASA2-AA19,33,2 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:

AB50-ASA2-AA19,76 Section 76. 71.54 (1) (g) 7. of the statutes is repealed.

AB50-ASA2-AA19,77 Section 77. 71.54 (1) (h) of the statutes is created to read:

AB50-ASA2-AA19,33,7 71.54 (1) (h) 2026 and thereafter. Subject to sub. (2m), the amount of any claim filed in 2026 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:

AB50-ASA2-AA19,33,11 1. If the household income was $19,000 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.

AB50-ASA2-AA19,33,16 2. If the household income was more than $19,000 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 7.891 percent of the household income exceeding $19,000.

AB50-ASA2-AA19,33,17 3. No credit may be allowed if the household income exceeds $37,500.

AB50-ASA2-AA19,33,19 4. Notwithstanding the time limitations described in par. (g) (intro.), the provisions of par. (g) 4. apply to claims filed under this paragraph.

AB50-ASA2-AA19,78 Section 78. 71.54 (2) (b) 4. of the statutes is amended to read:

AB50-ASA2-AA19,33,22 71.54 (2) (b) 4. In calendar years 2011 or any subsequent calendar year to 2024, $1,460.

AB50-ASA2-AA19,79 Section 79. 71.54 (2) (b) 5. of the statutes is created to read:

AB50-ASA2-AA19,34,2 71.54 (2) (b) 5. Subject to sub. (2m), in calendar year 2025 or any subsequent calendar year, $1,460.

AB50-ASA2-AA19,80 Section 80. 71.54 (2m) of the statutes is amended to read:

AB50-ASA2-AA19,34,21 71.54 (2m) Indexing for inflation; 2010 2026 and thereafter. (a) For calendar years beginning after December 31, 2009, and before January 1, 2011 2025, 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 through July 2008 2024, 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.

AB50-ASA2-AA19,35,4 (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.

AB50-ASA2-AA19,9337 Section 9337. Initial applicability; Revenue.