This is the preview version of the Wisconsin State Legislature site.
Please see http://docs.legis.wisconsin.gov for the production version.
AB68,863,43 a. Determine the amount allowed under par. (b) without regard to this
4subdivision but with regard to subd. 1.
AB68,863,55 b. Subtract $150,000 from the couple's federal adjusted gross income.
AB68,863,66 c. Divide the amount determined under subd. 2. b. by $20,000.
AB68,863,87 d. Multiple the amount determined under subd. 2. a. by the amount determined
8under subd. 2. c.
AB68,863,109 e. Subtract the amount determined under subd. 2. d. from the amount
10determined under subd. 2. a.
AB68,863,1711 3. If the claimant files as a single individual or head of household, or is married
12and files separately, and the claimant's federal adjusted gross income in the taxable
13year exceeds $85,000, no credit may be claimed under this subsection. If the claimant
14files as a single individual or head of household, or is married and files separately,
15and the claimant's federal adjusted gross income in the taxable year exceeds $75,000,
16but does not exceed $85,000, the credit claimed under this subsection may not exceed
17the amount determined as follows:
AB68,863,1918 a. Determine the amount allowed under par. (b) without regard to this
19subdivision but with regard to subd. 1.
AB68,863,2020 b. Subtract $75,000 from the claimant's federal adjusted gross income.
AB68,863,2121 c. Divide the amount determined under subd. 3. b. by $10,000.
AB68,863,2322 d. Multiple the amount determined under subd. 3. a. by the amount determined
23under subd. 3. c.
AB68,863,2524 e. Subtract the amount determined under subd. 3. d. from the amount
25determined under subd. 3. a.
AB68,864,2
14. No credit may be allowed under this subsection unless it is claimed within
2the period specified under s. 71.75 (2).
AB68,864,43 5. No credit may be claimed under this subsection by nonresidents or part-year
4residents of this state.
AB68,864,55 6. Qualified expenses may not include any of the following:
AB68,864,66 a. General food, clothing, or transportation expenses.
AB68,864,87 b. Ordinary household maintenance or repair expenses that are not directly
8related or necessary for the care of the qualified family member.
AB68,864,99 c. Any amount that is paid or reimbursed by insurance or other means.
AB68,864,1210 7. No credit may be allowed under this subsection for a taxable year covering
11a period of less than 12 months, except for a taxable year closed by reason of the death
12of the taxpayer.
AB68,864,1413 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit
14under that subsection, applies to the credit under this subsection.
AB68,1308 15Section 1308. 71.07 (9e) (aj) (intro.) of the statutes is amended to read:
AB68,864,2016 71.07 (9e) (aj) (intro.) For taxable years beginning after December 31, 2010,
17and before January 1, 2021, an individual may credit against the tax imposed under
18s. 71.02 an amount equal to one of the following percentages of the federal basic
19earned income credit for which the person is eligible for the taxable year under
20section 32 (b) (1) (A) to (C) of the Internal Revenue Code:
AB68,1309 21Section 1309. 71.07 (9e) (ak) of the statutes is created to read:
AB68,865,222 71.07 (9e) (ak) For taxable years beginning after December 31, 2020, an
23individual may credit against the tax imposed under s. 71.02 an amount equal to one
24of the following percentages of the federal basic earned income credit for which the

1individual is eligible for the taxable year under section 32 (b) (1) of the Internal
2Revenue Code:
AB68,865,43 1. If the individual has one qualifying child who has the same principal place
4of abode as the individual, 16 percent.
AB68,865,65 2. If the individual has 2 qualifying children who have the same principal place
6of abode as the individual, 25 percent.
AB68,865,87 3. If the individual has 3 or more qualifying children who have the same
8principal place of abode as the individual, 34 percent.
AB68,1310 9Section 1310 . 71.07 (9e) (b) of the statutes is amended to read:
AB68,865,1310 71.07 (9e) (b) No credit may be allowed under this subsection to married
11persons, except married persons living apart who are treated as single under section
127703 (b) of the internal revenue code Internal Revenue Code, if the husband and wife
13spouses report their income on separate income tax returns for the taxable year.
AB68,1311 14Section 1311 . 71.07 (9g) of the statutes is created to read:
AB68,865,1615 71.07 (9g) Additional child and dependent care tax credit. (a) Definitions.
16In this subsection:
AB68,865,1917 1. “Claimant" means an individual who is eligible for and claims the federal
18child and dependent care tax credit for the taxable year to which the claim under this
19subsection relates.
AB68,865,2120 2. “Federal child and dependent care tax credit” means the tax credit under 26
21USC section 21
.
AB68,866,222 (b) Filing claims. Subject to the limitations provided in this subsection, a
23claimant may claim as a credit against the tax imposed under s. 71.02, up to the
24amount of those taxes, an amount equal to 50 percent of the federal child and

1dependent care tax credit claimed by the claimant on his or her federal income tax
2return for the taxable year to which the claim under this subsection relates.
AB68,866,43 (c) Limitations. 1. No credit may be allowed under this subsection unless it
4is claimed within the period under s. 71.75 (2).
AB68,866,75 2. No credit may be allowed under this subsection for a taxable year covering
6a period of less than 12 months, except for a taxable year closed by reason of the death
7of the claimant.
AB68,866,98 3. The credit under this subsection may not be claimed by a part-year resident
9or a nonresident of this state.
AB68,866,1110 4. A claimant who claims the credit under this subsection is subject to the
11special rules in 26 USC 21 (e) (2) and (4).
AB68,866,1312 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit
13under that subsection, applies to the credit under this subsection.
AB68,1312 14Section 1312 . 71.09 (13) (a) 2. of the statutes is amended to read:
AB68,866,2215 71.09 (13) (a) 2. The tax shown on the return for the preceding year. If a
16husband and wife
spouses who filed separate returns for the preceding taxable year
17file a joint return, the tax shown on the return for the preceding year is the sum of
18the taxes shown on the separate returns of the husband and wife spouses. If a
19husband and wife
spouses who filed a joint return for the preceding taxable year file
20separate returns, the tax shown on the return for the preceding year is the husband's
21or wife's
each spouse's proportion of that tax based on what their respective tax
22liabilities for that year would have been had they filed separately.
AB68,1313 23Section 1313 . 71.10 (4) (cs) of the statutes is created to read:
AB68,866,2424 71.10 (4) (cs) Additional child and dependent care tax credit under s. 71.07 (9g).
AB68,1314 25Section 1314 . 71.10 (4) (ct) of the statutes is created to read:
AB68,867,1
171.10 (4) (ct) Work opportunity tax credit under s. 71.07 (4t).
AB68,1315 2Section 1315 . 71.10 (4) (ha) of the statutes is created to read:
AB68,867,33 71.10 (4) (ha) Flood insurance premiums credit under s. 71.07 (8m).
AB68,1316 4Section 1316 . 71.10 (4) (hd) of the statutes is created to read:
AB68,867,55 71.10 (4) (hd) Family caregiver tax credit under s. 71.07 (8p).
AB68,1317 6Section 1317 . 71.10 (4) (k) of the statutes is created to read:
AB68,867,77 71.10 (4) (k) Any amount computed under s. 71.83 (1) (ch).
AB68,1318 8Section 1318 . 71.10 (10) of the statutes is created to read:
AB68,867,109 71.10 (10) First-time homebuyer savings accounts. (a) Definitions. In this
10subsection:
AB68,867,1211 1. “Account holder” means an individual who creates, individually or jointly
12with his or her spouse, an account under par. (b) 1.
AB68,867,1413 2. “Allowable closing costs” means disbursements listed in a settlement
14statement for the purchase of a single-family residence by a beneficiary.
AB68,867,1615 3. “Beneficiary" means a first-time homebuyer who is designated by an account
16holder as the beneficiary of an account created under par. (b) 1.
AB68,867,1817 4. “Eligible costs” means the down payment and allowable closing costs for the
18purchase of a single-family residence in this state by a beneficiary.
AB68,867,2319 5. “Financial institution" means a bank, trust company, savings institution,
20savings bank, savings and loan association, industrial loan association, consumer
21finance company, credit union, or a benefit association, insurance company, safe
22deposit company, money market mutual fund, or similar entity authorized to do
23business in this state.
AB68,868,224 6. “First-time homebuyer” means an individual who resides in this state and
25did not have, either individually or jointly, a present ownership interest in a

1single-family residence during the 36 months before the month in which the
2individual purchases a single-family residence in this state.
AB68,868,53 7. “Single-family residence” means a residence intended for occupation by a
4single family unit that is purchased by a beneficiary for use as his or her principal
5residence.
AB68,868,146 (b) Creation of account. 1. An individual may create an account and become
7the account holder by opening an account at a financial institution for the purpose
8of paying or reimbursing the eligible costs of a first-time homebuyer. The account
9holder shall designate a beneficiary when the account is created and may designate
10himself or herself as the beneficiary. An account may have only one beneficiary at
11any one time. An individual may be the beneficiary of more than one account, and
12an individual may be the account holder of more than one account, but an account
13holder may not have more than one account that designates the same beneficiary.
14The account holder may change the beneficiary at any time.
AB68,868,1615 2. An individual may jointly own an account created under subd. 1 with his or
16her spouse.
AB68,868,1817 3. Only cash and marketable securities may be contributed to an account
18created under subd. 1.
AB68,868,2119 4. Persons other than an account holder may contribute to an account created
20under subd. 1, but the subtraction under s. 71.05 (6) (b) 55. may be made only by the
21account holder.
AB68,868,2522 (c) Account holder rights and responsibilities. 1. An account holder may
23withdraw funds from an account created under par. (b) 1. to pay eligible costs for the
24benefit of the beneficiary or to reimburse the beneficiary for eligible costs the
25beneficiary incurs and has paid.
AB68,869,3
12. An account holder may not use funds in an account created under par. (b) 1.
2to pay any expenses he or she incurs in administering the account, although a
3financial institution may deduct a service fee from the account.
AB68,869,74 3. Annually, an account holder shall submit to the department with his or her
5income tax return, on forms prepared by the department, information regarding the
6account created under par. (b) 1. The information submitted shall include all of the
7following:
AB68,869,98 a. A list of transactions in the account during the taxable year to which the
9return relates, including the beginning and ending balances of the account.
AB68,869,1010 b. The 1099 form issued by the financial institution that relates to the account.
AB68,869,1211 c. A list of eligible costs, and other costs, for which funds from the account were
12withdrawn during the taxable year to which the return relates.
AB68,869,1713 4. An account holder may withdraw funds from an account created under par.
14(b) 1. with no penalty due under s. 71.83 (1) (ch) and no responsibility to make an
15addition under s. 71.05 (6) (a) 30. if he or she immediately transfers the funds to a
16different financial institution and deposits the funds into an account created under
17par. (b) 1. at that financial institution.
AB68,869,2018 (d) Limitations on accounts, dissolution. 1. An account holder may not claim
19a subtraction under s. 71.05 (6) (b) 55. for more than a total of $50,000 of deposits into
20any account created under par. (b) 1. for each beneficiary.
AB68,869,2321 2. An account holder shall dissolve an account created under par. (b) 1. no later
22than 120 months after it is created. The financial institution shall distribute any
23funds in the account at dissolution to the account holder.
AB68,870,3
13. If an account holder dies while funds remain in an account created under par.
2(b) 1., the account shall be dissolved and the financial institution shall distribute the
3funds to the account holder's estate.
AB68,870,44 (e) Department responsibilities. The department shall:
AB68,870,75 1. Prepare and distribute any forms that an account holder is required to
6submit under par. (c) 3. and any other forms necessary to administer this subsection
7and the adjustments to income under s. 71.05 (6) (a) 30. and (b) 55.
AB68,870,98 2. Prepare and distribute to financial institutions and potential homebuyers
9informational materials about the accounts described in this subsection.
AB68,1319 10Section 1319. 71.26 (3) (j) of the statutes is amended to read:
AB68,870,1911 71.26 (3) (j) Sections 243, 244, 245, 245A, 246 and 246A are excluded and
12replaced by the rule that corporations may deduct from income dividends received
13from a corporation with respect to its common stock if the corporation receiving the
14dividends owns, directly or indirectly, during the entire taxable year at least 70
15percent of the total combined voting stock of the payor corporation. In this
16paragraph, “dividends received" means gross dividends minus taxes on those
17dividends paid to a foreign nation and claimed as a deduction under this chapter. The
18same dividends may not be deducted more than once and may not be used in the
19determination of a net business loss under ss. 71.26 (4) and 71.45 (4)
.
AB68,1320 20Section 1320. 71.26 (4) (a) of the statutes is amended to read:
AB68,871,1321 71.26 (4) (a) Except as provided in par. (b) and s. 71.80 (25), a corporation,
22except a tax-option corporation or an insurer to which s. 71.45 (4) applies, may offset
23against its Wisconsin net business income any Wisconsin net business loss incurred
24in any of the 20 immediately preceding taxable years, if the corporation was subject
25to taxation under this chapter in the taxable year in which the loss was incurred, to

1the extent not offset by other items of Wisconsin income in the loss year and by
2Wisconsin net business income of any year between the loss year and the taxable year
3for which an offset is claimed. For purposes of this subsection, Wisconsin net
4business income or loss shall consist of all the income attributable to the operation
5of a trade or business in this state, less the business expenses allowed as deductions
6in computing net income, except that the dividends received deduction under sub. (3)
7(j) may not be used in the determination of a net business loss
. The Wisconsin net
8business income or loss of corporations engaged in business within and without the
9state shall be determined under s. 71.25 (6) and (10) to (12). Nonapportionable losses
10having a Wisconsin situs under s. 71.25 (5) (b) shall be included in Wisconsin net
11business loss; and nonapportionable income having a Wisconsin situs under s. 71.25
12(5) (b), whether taxable or exempt, shall be included in other items of Wisconsin
13income and Wisconsin net business income for purposes of this subsection.
AB68,1321 14Section 1321. 71.28 (3q) (c) 1. of the statutes is renumbered 71.28 (3q) (c) 1.
15a. and amended to read:
AB68,871,2416 71.28 (3q) (c) 1. a. Partnerships Except as provided in subd. 1. b., partnerships,
17limited liability companies, and tax-option corporations may not claim the credit
18under this subsection, but the eligibility for, and the amount of, the credit are based
19on their payment of amounts under par. (b). A partnership, limited liability company,
20or tax-option corporation shall compute the amount of credit that each of its
21partners, members, or shareholders may claim and shall provide that information
22to each of them. Partners, members of limited liability companies, and shareholders
23of tax-option corporations may claim the credit in proportion to their ownership
24interests.
AB68,1322 25Section 1322. 71.28 (3q) (c) 1. b. of the statutes is created to read:
AB68,872,13
171.28 (3q) (c) 1. b. For taxable years beginning after December 31, 2021,
2partnerships, limited liability companies, and tax-option corporations may elect to
3claim the credit under this subsection, if the credit results from a contract entered
4into with the Wisconsin Economic Development Corporation before December 22,
52017. A partnership, limited liability company, or tax-option corporation that
6wishes to make the election under this subd. 1. b. shall make the election for each
7taxable year on its original return and may not subsequently make or revoke the
8election. If a partnership, limited liability company, or tax-option corporation elects
9to claim the credit under this subsection, the partners, members, and shareholders
10may not claim the credit under this subsection. The credit may not be claimed under
11this subd. 1. b. if one or more partners, members, or shareholders have claimed the
12credit under this subsection for the same taxable year for which the credit is claimed
13under this subd. 1. b.
AB68,1323 14Section 1323. 71.28 (3w) (a) 1. of the statutes is renumbered 71.28 (3w) (a) 1.
15a. and amended to read:
AB68,872,1816 71.28 (3w) (a) 1. a. “Base Except as provided in subd. 1. b., “base year" means
17the taxable year beginning during the calendar year prior to the calendar year in
18which the enterprise zone in which the claimant is located takes effect.
AB68,1324 19Section 1324. 71.28 (3w) (a) 1. b. of the statutes is created to read:
AB68,872,2320 71.28 (3w) (a) 1. b. For a claimant whose contract with the Wisconsin Economic
21Development Corporation under s. 238.399 is executed after December 31, 2021,
22“base year” means the 12-month period prior to the date on which the claimant was
23certified under s. 238.399 (5).
AB68,1325 24Section 1325. 71.28 (3w) (a) 2m. of the statutes is created to read:
Loading...
Loading...