SB59: Bill Text

SB59,853 Section 853. 71.05 (6) (b) 9. of the statutes is renumbered 71.05 (6) (b) 9. (intro.) and amended to read:

SB59,607,2 71.05 (6) (b) 9. (intro.) On assets held more than one year and on all assets acquired from a decedent, 30 percent of the capital gain as computed under the internal revenue code Internal Revenue Code, not including capital gains for which the federal tax treatment is determined under section 406 of P.L. 99-514; not including amounts treated as ordinary income for federal income tax purposes because of the recapture of depreciation or any other reason; and not including amounts treated as capital gain for federal income tax purposes from the sale or exchange of a lottery prize. For purposes of this subdivision, the capital gains and capital losses for all assets shall be netted before application of the percentage. For taxable years beginning after December 31, 2018, this subdivision does not apply to any of the following individuals whose federal adjusted gross income in the year to which the subtraction relates exceeds the following threshold amounts, except that for a taxpayer whose federal adjusted gross income, less 30 percent of eligible long-term capital gains from nonfarm assets, is below the specified threshold amount, the taxpayer may claim the subtraction under this subdivision reduced by the amount of the taxpayer's federal adjusted gross income that exceeds the threshold amount:

SB59,854 Section 854. 71.05 (6) (b) 9. a. of the statutes is created to read:

SB59,607,5 71.05 (6) (b) 9. a. For an estate, a trust, a single individual, or an individual who files as a head of household, $100,000.

SB59,855 Section 855. 71.05 (6) (b) 9. b. of the statutes is created to read:

SB59,607,7 71.05 (6) (b) 9. b. For a married couple who files a joint return, $150,000.

SB59,856 Section 856. 71.05 (6) (b) 9. c. of the statutes is created to read:

SB59,607,9 71.05 (6) (b) 9. c. For a married individual who files a separate return, $75,000.

SB59,857 Section 857. 71.05 (6) (b) 17. of the statutes is repealed.

SB59,858 Section 858. 71.05 (6) (b) 18. of the statutes is repealed.

SB59,859 Section 859. 71.05 (6) (b) 19. c. of the statutes is amended to read:

SB59,607,18 71.05 (6) (b) 19. c. For taxable years beginning before January 1, 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 net earnings from a trade or business that are taxable by this state and the denominator of which is the person's total net earnings from a trade or business.

SB59,860 Section 860. 71.05 (6) (b) 19. cm. of the statutes is created to read:

SB59,608,7 71.05 (6) (b) 19. cm. For taxable years beginning after December 31, 2019, 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 subdivision, 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.

SB59,861 Section 861. 71.05 (6) (b) 19. d. of the statutes is amended to read:

SB59,608,11 71.05 (6) (b) 19. d. Reduce For taxable years beginning before January 1, 2020, reduce the amount calculated under subd. 19. b. or c. to the person's aggregate net earnings from a trade or business that are taxable by this state.

SB59,862 Section 862. 71.05 (6) (b) 19. dm. of the statutes is created to read:

SB59,608,16 71.05 (6) (b) 19. dm. For taxable years beginning after December 31, 2019, 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.

SB59,863 Section 863. 71.05 (6) (b) 20. of the statutes is repealed.

SB59,864 Section 864. 71.05 (6) (b) 36. of the statutes is repealed.

SB59,865 Section 865. 71.05 (6) (b) 37. of the statutes is repealed.

SB59,866 Section 866. 71.05 (6) (b) 39. of the statutes is repealed.

SB59,867 Section 867. 71.05 (6) (b) 40. of the statutes is repealed.

SB59,868 Section 868. 71.05 (6) (b) 41. of the statutes is repealed.

SB59,869 Section 869 . 71.05 (6) (b) 43. d. of the statutes is amended to read:

SB59,609,3 71.05 (6) (b) 43. d. For taxable years beginning after December 31, 2013, and before January 1, 2020, up to $3,000 if the claimant has one qualified individual and up to $6,000 if the claimant has more than one qualified individual.

SB59,870 Section 870. 71.05 (6) (b) 49. a. of the statutes is amended to read:

SB59,609,10 71.05 (6) (b) 49. a. Subject to the definitions provided in subd. 49. b. to g. and the limitations specified in subd. 49. h. to j. for taxable years beginning after December 31, 2013, and before January 1, 2019, and subject to the limitation in subd. 49. k. for taxable years beginning after December 31, 2017, and before January 1, 2019, tuition expenses that are paid by a claimant for tuition for a pupil to attend an eligible institution.

SB59,871 Section 871. 71.05 (6) (b) 49. k. of the statutes is amended to read:

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: