SB59: Bill Text

SB59,609,16 71.05 (6) (b) 49. k. For taxable years beginning after December 31, 2017, and before January 1, 2019, no modification may be claimed under this subdivision for an amount paid for tuition expenses, as described under this subdivision, if the source of the payment is an amount withdrawn from a college savings account, as described in s. 224.50.

SB59,872 Section 872. 71.05 (6) (b) 49. L. of the statutes is created to read:

SB59,609,19 71.05 (6) (b) 49. L. No new claim may be filed under this subdivision for a taxable year that begins after December 31, 2018.

SB59,873 Section 873 . 71.05 (6) (b) 54. of the statutes is created to read:

SB59,610,2 71.05 (6) (b) 54. For each account an account holder creates under s. 71.10 (10), and subject to s. 71.10 (10) (d), an account holder may subtract an amount of up to $5,000, or an amount of up to $10,000 if the account holder files a joint income tax return, for each such account that the account holder deposits into such an account in the taxable year to which the subtraction relates, and any interest, dividends, or other gain that accrues in the account if the interest, dividends, or other gain is redeposited into the account.

SB59,874 Section 874. 71.05 (8) (a) of the statutes is amended to read:

SB59,610,10 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.

SB59,875 Section 875. 71.05 (8) (b) 1. of the statutes is renumbered 71.05 (8) (b) and amended to read:

SB59,611,2 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. and (25) 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.

SB59,876 Section 876. 71.05 (8) (b) 2. of the statutes is repealed.

SB59,877 Section 877. 71.05 (8) (c) of the statutes is repealed.

SB59,878 Section 878. 71.07 (2dx) (a) 5. of the statutes is amended to read:

SB59,611,20 71.07 (2dx) (a) 5. “Member of a targeted group" means a person who resides in an area designated by the federal government as an economic revitalization area, a person who is employed in an unsubsidized job but meets the eligibility requirements under s. 49.145 (2) and (3) for a Wisconsin Works employment position, or a person who is employed in a trial job, as defined in s. 49.141 (1) (n), 2011 stats., or in a trial employment match program job subsidized employment placement, as defined in s. 49.141 (1) (n) (Lm), a person who is eligible for child care assistance under s. 49.155, a person who is a vocational rehabilitation referral, an economically disadvantaged youth, an economically disadvantaged veteran, a supplemental security income recipient, a general assistance recipient, an economically disadvantaged ex-convict, a qualified summer youth employee, as defined in 26 USC 51 (d) (7), a dislocated worker, as defined in 29 USC 2801 (9), or a food stamp recipient, if the person has been certified in the manner under s. 71.07 (2dj) (am) 3., 2013 stats., by a designated local agency, as defined in s. 71.07 (2dj) (am) 2., 2013 stats.

SB59,879 Section 879. 71.07 (4k) (e) 2. a. of the statutes is amended to read:

SB59,612,4 71.07 (4k) (e) 2. a. The For taxable years beginning after December 31, 2017, and before January 1, 2020, the amount of the claim not used to offset the tax due, not to exceed 10 percent of the allowable amount of the claim under par. (b) 4., 5., or 6., shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (d). A person who is certified to claim tax benefits under s. 238.396 (3) or (3m) is not eligible to receive the payment under this subd. 2. a.

SB59,880 Section 880. 71.07 (4k) (e) 2. am. of the statutes is created to read:

SB59,612,12 71.07 (4k) (e) 2. am. For taxable years beginning after December 31, 2019, the amount of the claim not used to offset the tax due, not to exceed 20 percent of the allowable amount of the claim under par. (b) 4., 5., or 6., shall be certified by the department of revenue to the department of administration for payment from the appropriation account under s. 20.835 (2) (d). A person who is certified to claim tax benefits under s. 238.396 (3) or (3m) is not eligible to receive the payment under this subd. 2. am.

SB59,881 Section 881. 71.07 (4k) (e) 2. b. of the statutes is amended to read:

SB59,612,19 71.07 (4k) (e) 2. b. The amount of the claim not used to offset the tax due and not certified for payment under subd. 2. a. or am. may be carried forward and credited against Wisconsin income taxes otherwise due for the following 15 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.

SB59,882 Section 882. 71.07 (5) (a) 15. of the statutes is amended to read:

SB59,613,2 71.07 (5) (a) 15. The amount claimed as a deduction for medical care insurance under section 213 of the Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 17. to 20. 19., 35., 36., 37., 38., 39., 40., 41., and 42. and the amount claimed as a deduction for a long-term care insurance policy under section 213 (d) (1) (D) of the Internal Revenue Code, as defined in section 7702B (b) of the Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 26.

SB59,883 Section 883. 71.07 (5m) (e) of the statutes is created to read:

SB59,613,5 71.07 (5m) (e) Sunset. No credit may be claimed under this subsection for taxable years beginning after December 31, 2018.

SB59,884 Section 884. 71.07 (5me) of the statutes is created to read:

SB59,613,8 71.07 (5me) Family and individual reinvestment credit. (a) Definitions. In this subsection:

SB59,613,10 1. “Claimant" means an individual who is eligible to claim the credit under this subsection.

SB59,613,12 2. “Household" means a claimant and an individual related to the claimant as husband or wife.

SB59,613,14 3. “Net tax liability" means a claimant's income tax liability after he or she completes the computations for nonrefundable credits listed in s. 71.10 (4) (a) to (gy).

SB59,613,18 (b) Filing claims. For taxable years beginning after December 31, 2018, and subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, one of the following amounts:

SB59,613,21 1. If the claimant is single or files as a head of household and his or her adjusted gross income is less than $80,000 in the year to which the claim relates, the greater of $100 or an amount equal to 10 percent of his or her net tax liability.

SB59,613,24 2. If the claimant is single or files as a head of household and his or her adjusted gross income is at least $80,000 but less than $100,000 in the year to which the claim relates, an amount that is calculated as follows:

SB59,614,3 a. Calculate the value of a fraction, the denominator of which is $20,000 and the numerator of which is the difference between the claimant's adjusted gross income and $80,000.

SB59,614,4 b. Subtract from 1.0 the amount that is calculated under subd. 2. a.

SB59,614,5 c. Multiply the amount that is calculated under subd. 2. b. by 10 percent.

SB59,614,7 d. Multiply the amount of the claimant's net income tax liability by the amount that is calculated under subd. 2. c.

SB59,614,11 3. If the claimant is married and filing jointly and the sum of the claimant's adjusted gross income and his or her spouse's adjusted gross income is less than $125,000 in the year to which the claim relates, the greater of $50 or an amount equal to 10 percent of the married couple's net tax liability.

SB59,614,15 4. If the claimant is married and filing jointly and the sum of the claimant's adjusted gross income and his or her spouse's adjusted gross income is at least $125,000 but less than $150,000 in the year to which the claim relates, an amount that is calculated as follows:

SB59,614,18 a. Calculate the value of a fraction, the denominator of which is $25,000 and the numerator of which is the difference between the married couple's adjusted gross income and $125,000.

SB59,614,19 b. Subtract from 1.0 the amount that is calculated under subd. 4. a.

SB59,614,20 c. Multiply the amount that is calculated under subd. 4. b. by 10 percent.

SB59,614,22 d. Multiply the amount of the married couple's net income tax liability by the amount that is calculated under subd. 4. c.

SB59,614,25 5. If the claimant is married and filing separately and his or her adjusted gross income is less than $62,500 in the year to which the claim relates, the greater of $25 or an amount equal to 10 percent of his or her net tax liability.

SB59,615,3 6. If the claimant is married and filing separately and his or her adjusted gross income is at least $62,500 but less than $75,000 in the year to which the claim relates, an amount that is calculated as follows:

SB59,615,6 a. Calculate the value of a fraction, the denominator of which is $12,500 and the numerator of which is the difference between the claimant's adjusted gross income and $75,000.

SB59,615,7 b. Subtract from 1.0 the amount that is calculated under subd. 6. a.

SB59,615,8 c. Multiply the amount that is calculated under subd. 6. b. by 10 percent.

SB59,615,10 d. Multiply the amount of the claimant's net income tax liability by the amount that is calculated under subd. 6. c.

SB59,615,12 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the period under s. 71.75 (2).

SB59,615,14 2. Part-year residents and nonresidents of this state are not eligible for the credit under this subsection.

SB59,615,16 3. Except as provided in subd. 4., only one credit per household is allowed each year.

SB59,615,20 4. If a married couple files separately, each spouse may claim the credit calculated under par. (b) 5. or 6., except a married person living apart from the other spouse and treated as single under section 7703 (b) of the Internal Revenue Code may claim the credit under par. (b) 1. or 2.

SB59,615,22 5. The credit under this subsection may not be claimed by a person who may be claimed as a dependent on the individual income tax return of another taxpayer.

SB59,616,2 (d) Administration. The department of revenue may enforce the credit under this subsection and may take any action, conduct any proceeding, and proceed as it is authorized in respect to taxes under this chapter. The income tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest, and penalties apply to the credit under this subsection.

SB59,885 Section 885. 71.07 (5n) (d) 2. of the statutes is amended to read:

SB59,616,9 71.07 (5n) (d) 2. For Except as provided in subd. 2m., for purposes of determining a claimant's eligible qualified production activities income under this subsection, the claimant shall multiply the claimant's qualified production activities income from property manufactured by the claimant by the manufacturing property factor and qualified production activities income from property produced, grown, or extracted by the claimant by the agriculture property factor.

SB59,886 Section 886. 71.07 (5n) (d) 2m. of the statutes is created to read:

SB59,616,16 71.07 (5n) (d) 2m. For taxable years beginning after December 31, 2018, for purposes of determining a claimant's eligible qualified production activities income from manufacturing under this subsection, the claimant, including a beneficiary or fiduciary, shall multiply the claimant's qualified production activities income, not exceeding $300,000, from property manufactured by the claimant by the manufacturing property factor.

SB59,887 Section 887 . 71.07 (8m) of the statutes is created to read:

SB59,616,19 71.07 (8m) Additional household and dependent care expenses tax credit. (a) Definitions. In this subsection:

SB59,616,22 1. “Claimant" means an individual who is eligible for and claims the household and dependent care expenses tax credit for the taxable year to which the claim under this subsection relates.

SB59,616,24 2. “Household and dependent care expenses tax credit" means the tax credit under section 21 of the Internal Revenue Code.

SB59,617,6 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, an amount equal to 50 percent of the amount of the household and dependent care expenses tax credit that the claimant claimed on his or her federal income tax return for the taxable year to which the claim under this subsection relates.

SB59,617,8 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

SB59,617,11 2. No credit may be allowed under this subsection for a taxable year covering a period of less than 12 months, except for a taxable year closed by reason of the death of the taxpayer.

SB59,617,13 3. The credit under this subsection may not be claimed by either a part-year resident or a nonresident of this state.

SB59,617,15 4. The credit under this subsection may be claimed for taxable years beginning after December 31, 2019.

SB59,617,17 5. A claimant who claims the credit under this subsection is subject to the special rules in 26 USC 21 (e) (2) and (4).

SB59,617,19 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

SB59,888 Section 888 . 71.07 (9e) (aj) (intro.) of the statutes is amended to read:

SB59,617,25 71.07 (9e) (aj) (intro.) For taxable years beginning after December 31, 2010, and before January 1, 2019, 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 (b) (1) (A) to (C) of the Internal Revenue Code:

SB59,889 Section 889. 71.07 (9e) (ak) of the statutes is created to read:

SB59,618,6 71.07 (9e) (ak) For taxable years beginning after December 31, 2018, 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 (b) (1) of the Internal Revenue Code:

SB59,618,8 1. If the individual has one qualifying child who has the same principal place of abode as the individual, 11 percent.

SB59,618,10 2. If the individual has 2 qualifying children who have the same principal place of abode as the individual, 14 percent.

SB59,618,12 3. If the individual has 3 or more qualifying children who have the same principal place of abode as the individual, 34 percent.

SB59,890 Section 890. 71.07 (9m) (a) 3. of the statutes is amended to read:

SB59,619,2 71.07 (9m) (a) 3. For taxable years beginning after December 31, 2013, and before January 1, 2019, any person may claim as a credit against taxes otherwise due under s. 71.02, up to the amount of those taxes, an amount equal to 20 percent of the costs of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue Code, for qualified rehabilitated buildings, as defined in section 47 (c) (1) of the Internal Revenue Code, on property located in this state, if the cost of the person's qualified rehabilitation expenditures is at least $50,000 and the rehabilitated property is placed in service after December 31, 2013, and regardless of whether the rehabilitated property is used for multiple or revenue-producing purposes. No credit may be claimed under this subdivision for property listed as a contributing building in the state register of historic places or in the national register of historic places and no credit may be claimed under this subdivision for nonhistoric, nonresidential property converted into housing if the property has been previously used for housing.

SB59,891 Section 891. 71.07 (9m) (cn) (intro.) of the statutes is amended to read:

SB59,619,6 71.07 (9m) (cn) (intro.) For taxable years beginning after December 31, 2014, and before January 1, 2019, the Wisconsin Economic Development Corporation shall certify a person to claim a credit under par. (a) 3. if all of the following apply:

SB59,892 Section 892. 71.07 (9m) (e) of the statutes is renumbered 71.07 (9m) (e) 1.

SB59,893 Section 893. 71.07 (9m) (e) 2. of the statutes is created to read:

SB59,619,12 71.07 (9m) (e) 2. No credit may be claimed under par. (a) 3. for taxable years beginning after December 31, 2018. Credits under par. (a) 3. for taxable years that begin before January 1, 2019, may be carried forward to taxable years that begin after December 31, 2018.

SB59,894 Section 894 . 71.10 (4) (cs) of the statutes is created to read:

SB59,619,15 71.10 (4) (cs) Additional household and dependent care expenses tax credit under s. 71.07 (8m).

SB59,895 Section 895. 71.10 (4) (gye) of the statutes is created to read:

SB59,619,17 71.10 (4) (gye) Family and individual reinvestment credit under s. 71.07 (5me).

SB59,896 Section 896 . 71.10 (4) (i) of the statutes is amended to read:

SB59,620,8 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief credit under s. 71.07 (3m), dairy manufacturing facility investment credit under s. 71.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment credit under s. 71.07 (3r), woody biomass harvesting and processing credit under s. 71.07 (3rm), food processing plant and food warehouse investment credit under s. 71.07 (3rn), business development credit under s. 71.07 (3y), research credit under s. 71.07 (4k) (e) 2. a. and am., film production services credit under s. 71.07 (5f), film production company investment credit under s. 71.07 (5h), veterans and surviving spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s. 71.07 (3w), electronics and information technology manufacturing zone credit under s. 71.07 (3wm), beginning farmer and farm asset owner tax credit under s. 71.07 (8r), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

SB59,897 Section 897 . 71.10 (4) (k) of the statutes is created to read: