AB68: Bill Text

AB68,857,17 (c) Limitations. 1. The wages for which a credit may be claimed under par. (b) may not exceed the applicable threshold in 26 USC 51 (b) (3), (d) (7) (B) (ii), or (e) (1) (B) and may not be paid for services performed outside this state.

AB68,857,19 2. A credit under this subsection shall be claimed at the same time as the credit under 26 USC 51.

AB68,857,21 3. The requirements and limitations in 26 USC 51 (d) (13), (f), (i), and (k) shall apply to the credit under this subsection.

AB68,858,3 4. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of the wages under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. The partners, members, and shareholders may claim the credit in proportion to their ownership interests.

AB68,858,5 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB68,1297 Section 1297 . 71.07 (5) (a) 15. of the statutes is amended to read:

AB68,858,12 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.

AB68,1298 Section 1298 . 71.07 (5m) (a) 3. of the statutes is amended to read:

AB68,858,15 71.07 (5m) (a) 3. “Household" means a claimant and an individual related to the claimant as husband or wife his or her spouse.

AB68,1299 Section 1299. 71.07 (5n) (d) 2. of the statutes is amended to read:

AB68,858,22 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.

AB68,1300 Section 1300. 71.07 (5n) (d) 2m. of the statutes is created to read:

AB68,859,3 71.07 (5n) (d) 2m. For taxable years beginning after December 31, 2020, for purposes of determining a claimant's eligible qualified production activities income from manufacturing under this subsection, the claimant shall multiply the claimant's qualified production activities income, not exceeding $300,000, from property manufactured by the claimant by the manufacturing property factor.

AB68,1301 Section 1301 . 71.07 (6e) (a) 6. of the statutes is created to read:

AB68,859,6 71.07 (6e) (a) 6. “Rent constituting property taxes" has the meaning given in sub. (9) (a) 4.

AB68,1302 Section 1302. 71.07 (6e) (b) of the statutes is amended to read:

AB68,859,15 71.07 (6e) (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 the amount of the claimant's property taxes or rent constituting property taxes. If the allowable amount of the claim exceeds the income taxes otherwise due on the claimant's income, the amount of the claim not used as an offset against those taxes shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft, or other draft from the appropriation under s. 20.835 (2) (em).

AB68,1303 Section 1303. 71.07 (6e) (c) 3. of the statutes is amended to read:

AB68,859,22 71.07 (6e) (c) 3. If an eligible veteran and an eligible spouse file separate returns, each spouse may claim a credit under this subsection for property taxes based on their respective ownership interest in the eligible veteran's principal dwelling or for rent constituting property taxes based on 50 percent of the total rent constituting property taxes paid during the taxable year for the eligible veteran's principal dwelling.

AB68,1304 Section 1304. 71.07 (8b) (a) 5. of the statutes is amended to read:

AB68,860,3 71.07 (8b) (a) 5. “Credit period” means the period of 6 10 taxable years beginning with the taxable year in which a qualified development is placed in service. For purposes of this subdivision, if a qualified development consists of more than one building, the qualified development is placed in service in the taxable year in which the last building of the qualified development is placed in service.

AB68,1305 Section 1305. 71.07 (8b) (a) 7. of the statutes is amended to read:

AB68,860,14 71.07 (8b) (a) 7. “Qualified development” means a qualified low-income housing project under section 42 (g) of the Internal Revenue Code that is financed with tax-exempt bonds, pursuant to section 42 (i) (2) described in section 42 (h) (4) (A) of the Internal Revenue Code, allocated the credit under section 42 of the Internal Revenue Code, and located in this state; except that the authority may waive, in the qualified allocation plan under section 42 (m) (1) (B) of the Internal Revenue Code, the requirements of tax-exempt bond financing and federal credit allocation to the extent the authority anticipates that sufficient volume cap under section 146 of the Internal Revenue Code will not be available to finance low-income housing projects in any year.

AB68,1306 Section 1306 . 71.07 (8m) of the statutes is created to read:

AB68,860,17 71.07 (8m) Flood insurance premiums credit. (a) Definition. In this subsection:

AB68,860,18 1. “Claimant" means an individual who files a claim under this subsection.

AB68,860,20 2. “Flood insurance" means a flood insurance policy that covers the principal dwelling of the claimant.

AB68,861,2 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2020, 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 10 percent of the amount of the premiums the claimant paid in the taxable year for flood insurance, but the amount of the credit may not exceed $60 in any taxable year.

AB68,861,4 (c) Limitations. 1. No credit may be claimed under this subsection by a part-year resident or a nonresident of this state.

AB68,861,6 2. No credit may be allowed under this subsection unless it is claimed within the period specified in s. 71.75 (2).

AB68,861,9 3. 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.

AB68,861,11 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

AB68,1307 Section 1307 . 71.07 (8p) of the statutes is created to read:

AB68,861,13 71.07 (8p) Family caregiver tax credit. (a) Definitions. In this subsection:

AB68,861,15 1. “Claimant" means an individual who files a claim under this subsection for amounts paid for qualified expenses to benefit a qualified family member.

AB68,861,16 2. “Physician” has the meaning given in s. 36.60 (1) (b).

AB68,861,19 3. “Qualified expenses” means amounts paid by a claimant in the year to which the claim relates for items that relate directly to the care or support of a qualified family member, including the following:

AB68,861,21 a. The improvement or alteration of the claimant's primary residence to enable or assist the qualified family member to be mobile, safe, or independent.

AB68,861,23 b. The purchase or lease of equipment to enable or assist the qualified family member to carry out one or more activities of daily living.

AB68,862,2 c. The acquisition of goods or services, or support, to assist the claimant in caring for the qualified family member, including employing a home care aide or personal care attendant, adult day care, specialized transportation, legal or financial services, or assistive care technology.

AB68,862,4 4. “Qualified family member” means an individual to whom all of the following apply:

AB68,862,6 a. The individual is at least 18 years of age during the taxable year to which the claim relates.

AB68,862,8 b. The individual requires assistance with one or more daily living activities, as certified in writing by a physician.

AB68,862,9 c. The individual is the claimant's family member, as defined in s. 46.2805 (6m).

AB68,862,13 (b) Filing claims. For taxable years beginning after December 31, 2020, 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, 50 percent of the claimant's qualified expenses.

AB68,862,21 (c) Limitations. 1. Subject to subds. 2. and 3., the maximum credit that may be claimed under this subsection each taxable year with regard to a particular qualified family member is $500 or, if a claimant is married and filing a separate return, $250. If more than one individual may file a claim under this subsection for a particular qualified family member, the maximum credit specified in this subdivision shall be apportioned among all eligible claimants based on the ratio of their qualified expenses to the total amount of all qualified expenses incurred on behalf of that particular qualified family member, as determined by the department.

AB68,863,2 2. If the claimant is married and filing jointly and the couple's federal adjusted gross income in the taxable year exceeds $170,000, no credit may be claimed under this subsection. If the claimant is married and filing jointly and the couple's federal adjusted gross income in the taxable year exceeds $150,000, but does not exceed $170,000, the credit claimed under this subsection may not exceed the amount determined as follows:

AB68,863,4 a. Determine the amount allowed under par. (b) without regard to this subdivision but with regard to subd. 1.

AB68,863,5 b. Subtract $150,000 from the couple's federal adjusted gross income.

AB68,863,6 c. Divide the amount determined under subd. 2. b. by $20,000.

AB68,863,8 d. Multiple the amount determined under subd. 2. a. by the amount determined under subd. 2. c.

AB68,863,10 e. Subtract the amount determined under subd. 2. d. from the amount determined under subd. 2. a.

AB68,863,17 3. If the claimant files as a single individual or head of household, or is married and files separately, and the claimant's federal adjusted gross income in the taxable year exceeds $85,000, no credit may be claimed under this subsection. If the claimant files as a single individual or head of household, or is married and files separately, and the claimant's federal adjusted gross income in the taxable year exceeds $75,000, but does not exceed $85,000, the credit claimed under this subsection may not exceed the amount determined as follows:

AB68,863,19 a. Determine the amount allowed under par. (b) without regard to this subdivision but with regard to subd. 1.

AB68,863,20 b. Subtract $75,000 from the claimant's federal adjusted gross income.

AB68,863,21 c. Divide the amount determined under subd. 3. b. by $10,000.

AB68,863,23 d. Multiple the amount determined under subd. 3. a. by the amount determined under subd. 3. c.

AB68,863,25 e. Subtract the amount determined under subd. 3. d. from the amount determined under subd. 3. a.

AB68,864,2 4. No credit may be allowed under this subsection unless it is claimed within the period specified under s. 71.75 (2).

AB68,864,4 5. No credit may be claimed under this subsection by nonresidents or part-year residents of this state.

AB68,864,5 6. Qualified expenses may not include any of the following:

AB68,864,6 a. General food, clothing, or transportation expenses.

AB68,864,8 b. Ordinary household maintenance or repair expenses that are not directly related or necessary for the care of the qualified family member.

AB68,864,9 c. Any amount that is paid or reimbursed by insurance or other means.

AB68,864,12 7. 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.

AB68,864,14 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

AB68,1308 Section 1308. 71.07 (9e) (aj) (intro.) of the statutes is amended to read:

AB68,864,20 71.07 (9e) (aj) (intro.) For taxable years beginning after December 31, 2010, and before January 1, 2021, 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:

AB68,1309 Section 1309. 71.07 (9e) (ak) of the statutes is created to read:

AB68,865,2 71.07 (9e) (ak) For taxable years beginning after December 31, 2020, 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:

AB68,865,4 1. If the individual has one qualifying child who has the same principal place of abode as the individual, 16 percent.

AB68,865,6 2. If the individual has 2 qualifying children who have the same principal place of abode as the individual, 25 percent.

AB68,865,8 3. If the individual has 3 or more qualifying children who have the same principal place of abode as the individual, 34 percent.

AB68,1310 Section 1310 . 71.07 (9e) (b) of the statutes is amended to read:

AB68,865,13 71.07 (9e) (b) No credit may be allowed under this subsection to married persons, except married persons living apart who are treated as single under section 7703 (b) of the internal revenue code Internal Revenue Code, if the husband and wife spouses report their income on separate income tax returns for the taxable year.

AB68,1311 Section 1311 . 71.07 (9g) of the statutes is created to read:

AB68,865,16 71.07 (9g) Additional child and dependent care tax credit. (a) Definitions. In this subsection:

AB68,865,19 1. “Claimant" means an individual who is eligible for and claims the federal child and dependent care tax credit for the taxable year to which the claim under this subsection relates.

AB68,865,21 2. “Federal child and dependent care tax credit” means the tax credit under 26 USC section 21.

AB68,866,2 (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 federal child and dependent care tax credit claimed by the claimant on his or her federal income tax return for the taxable year to which the claim under this subsection relates.

AB68,866,4 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the period under s. 71.75 (2).

AB68,866,7 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 claimant.

AB68,866,9 3. The credit under this subsection may not be claimed by a part-year resident or a nonresident of this state.

AB68,866,11 4. A claimant who claims the credit under this subsection is subject to the special rules in 26 USC 21 (e) (2) and (4).

AB68,866,13 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

AB68,1312 Section 1312 . 71.09 (13) (a) 2. of the statutes is amended to read:

AB68,866,22 71.09 (13) (a) 2. The tax shown on the return for the preceding year. If a husband and wife spouses who filed separate returns for the preceding taxable year file a joint return, the tax shown on the return for the preceding year is the sum of the taxes shown on the separate returns of the husband and wife spouses. If a husband and wife spouses who filed a joint return for the preceding taxable year file separate returns, the tax shown on the return for the preceding year is the husband's or wife's each spouse's proportion of that tax based on what their respective tax liabilities for that year would have been had they filed separately.

AB68,1313 Section 1313 . 71.10 (4) (cs) of the statutes is created to read:

AB68,866,24 71.10 (4) (cs) Additional child and dependent care tax credit under s. 71.07 (9g).