AB43: Bill Text

AB43,,3519 71.07 (3w) (bm) 4. In addition to the credits under par. pars. (b) and (bd) and subds. 1., 2., and 3., and 5., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., for taxable years beginning after December 31, 2009, a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08, up to 1 percent of the amount that the claimant paid in the taxable year to purchase tangible personal property, items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services from Wisconsin vendors, as determined under s. 238.399 (5) (e) or s. 560.799 (5) (e), 2009 stats., except that the claimant may not claim the credit under this subdivision and subd. 3. for the same expenditures.

AB43,1398 Section 1398. 71.07 (3w) (bm) 5. of the statutes is renumbered 71.07 (3w) (bm) 5. (intro.) and amended to read:

AB43,,3521 71.07 (3w) (bm) 5. (intro.) In addition to the credits under par. pars. (b) and (bd) and subds. 1. to 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant that has retained the minimum number of full-time employees determined under s. 238.399 (5) (f) and maintained average zone payroll for the taxable year equal to or greater than the base year may claim as a credit against the tax imposed under s. 71.02 or 71.08 one of the following amounts:

AB43,,3522 a. For a claimant whose contract is executed prior to January 1, 2024, an amount equal to the percentage, as determined by the Wisconsin Economic Development Corporation, of the claimant’s zone payroll paid in the 12 months prior to the certification date to the claimant’s full-time employees in the enterprise zone whose annual wages are greater than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality or greater than $30,000 in a tier II county or municipality. The amount that the claimant may claim as credit under this subdivision for a taxable year shall not exceed $2,000,000. A claimant may claim a credit under this subdivision for no more than 5 consecutive taxable years.

AB43,1399 Section 1399. 71.07 (3w) (bm) 5. b. of the statutes is created to read:

AB43,,3524 71.07 (3w) (bm) 5. b. For a claimant whose contract is executed after December 31, 2023, an amount equal to the percentage, as determined by the Wisconsin Economic Development Corporation, of the claimant’s zone payroll paid in the 12 months prior to the certification date to the claimant’s full-time employees in the enterprise zone whose annual wages are greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality.

AB43,1400 Section 1400. 71.07 (3w) (c) 5. of the statutes is created to read:

AB43,,3526 71.07 (3w) (c) 5. A claimant may claim a credit under par. (bm) 2. for no more than 5 consecutive taxable years.

AB43,1401 Section 1401. 71.07 (3w) (c) 6. of the statutes is created to read:

AB43,,3528 71.07 (3w) (c) 6. The amount that a claimant may claim as credit under par. (bm) 5. for a taxable year may not exceed $2,000,000. A claimant may claim a credit under par. (bm) 5. for no more than 5 consecutive taxable years.

AB43,1402 Section 1402. 71.07 (3w) (cm) of the statutes is created to read:

AB43,,3530 71.07 (3w) (cm) Inflation adjustments. For taxable years beginning after December 31, 2024, the dollar amounts in pars. (a) 6. b., (bd) 1. a. and b., 2., and 3., and (bm) 2. b. and 5. b. 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 month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the year before the previous year, as determined by the federal department of labor. 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.

AB43,1403 Section 1403. 71.07 (3y) (b) 5. of the statutes is amended to read:

AB43,,3532 71.07 (3y) (b) 5. An For taxable years beginning before January 1, 2023, an amount, as determined by the Wisconsin Economic Development Corporation under s. 238.308 (4) (a) 5., equal to a percentage of the amount of wages that the claimant paid to an eligible employee in the taxable year if the position in which the eligible employee was employed was created or retained in connection with the claimant’s location or retention of the claimant’s corporate headquarters in Wisconsin and the job duties associated with the eligible employee’s position involve the performance of corporate headquarters functions.

AB43,1404 Section 1404. 71.07 (3y) (b) 5m. of the statutes is created to read:

AB43,,3534 71.07 (3y) (b) 5m. For taxable years beginning after December 31, 2022, an amount, as determined by the Wisconsin Economic Development Corporation under s. 238.308 (4) (a) 5., equal to a percentage of the amount of wages that the claimant paid to an eligible employee in the taxable year if the position in which the eligible employee was employed was created or retained in connection with the claimant’s location or retention of the claimant’s corporate headquarters in Wisconsin.

AB43,1405 Section 1405. 71.07 (3y) (b) 6. of the statutes is created to read:

AB43,,3536 71.07 (3y) (b) 6. For taxable years beginning after December 31, 2023, an amount, as determined by the Wisconsin Economic Development Corporation under s. 238.308 (4) (a) 6., equal to a percentage, not to exceed 25 percent, of the claimant’s energy efficiency or renewable energy project expenditures on real or personal property located in this state.

AB43,1406 Section 1406. 71.07 (4k) (e) 2. a. of the statutes is amended to read:

AB43,,3538 71.07 (4k) (e) 2. a. For taxable years beginning before January 1, 2021, 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). For subsequent taxable years beginning after December 31, 2020 and before January 1, 2024, the amount of the claim not used to offset the tax due, up to 15 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).

AB43,1407 Section 1407. 71.07 (4k) (e) 2. ad. of the statutes is created to read:

AB43,,3540 71.07 (4k) (e) 2. ad. For taxable years beginning after December 31, 2023, the amount of the claim not used to offset the tax due, not to exceed 50 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).

AB43,1408 Section 1408. 71.07 (4k) (e) 2. b. of the statutes is amended to read:

AB43,,3542 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 2. ad. 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.

AB43,1409 Section 1409. 71.07 (5m) (a) 3. of the statutes is amended to read:

AB43,,3544 71.07 (5m) (a) 3. “Household” means a claimant and an individual related to the claimant as husband or wife his or her spouse.

AB43,1410 Section 1410. 71.07 (5m) (e) of the statutes is created to read:

AB43,,3546 71.07 (5m) (e) Sunset. No credit may be claimed under this subsection for taxable years beginning after December 31, 2022.

AB43,1411 Section 1411. 71.07 (5me) of the statutes is created to read:

AB43,,3548 71.07 (5me) Family and individual reinvestment credit. (a) Definitions. In this subsection:

AB43,,3549 1. “Claimant” means an individual who is eligible to claim the credit under this subsection.

AB43,,3550 2. “Household” means a claimant and an individual related to the claimant as husband or wife.

AB43,,3551 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).

AB43,,3552 (b) Filing claims. For taxable years beginning after December 31, 2022, 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:

AB43,,3553 1. If the claimant is single or files as a head of household and his or her adjusted gross income is less than $100,000 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.

AB43,,3554 2. If the claimant is single or files as a head of household and his or her adjusted gross income is at least $100,000 but less than $120,000 in the year to which the claim relates, an amount that is calculated as follows:

AB43,,3555 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 $100,000.

AB43,,3556 b. Subtract from 1.0 the amount that is calculated under subd. 2. a.

AB43,,3557 c. Multiply the amount that is calculated under subd. 2. b. by 10 percent.

AB43,,3558 d. Multiply the amount of the claimant’s net income tax liability by the amount that is calculated under subd. 2. c.

AB43,,3559 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 $150,000 in the year to which the claim relates, the greater of $100 or an amount equal to 10 percent of the married couple’s net tax liability.

AB43,,3560 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 $150,000 but less than $175,000 in the year to which the claim relates, an amount that is calculated as follows:

AB43,,3561 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 $150,000.

AB43,,3562 b. Subtract from 1.0 the amount that is calculated under subd. 4. a.

AB43,,3563 c. Multiply the amount that is calculated under subd. 4. b. by 10 percent.

AB43,,3564 d. Multiply the amount of the married couple’s net income tax liability by the amount that is calculated under subd. 4. c.

AB43,,3565 5. If the claimant is married and filing separately and his or her adjusted gross income is less than $75,000 in the year to which the claim relates, the greater of $50 or an amount equal to 10 percent of his or her net tax liability.

AB43,,3566 6. If the claimant is married and filing separately and his or her adjusted gross income is at least $75,000 but less than $87,500 in the year to which the claim relates, an amount that is calculated as follows:

AB43,,3567 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.

AB43,,3568 b. Subtract from 1.0 the amount that is calculated under subd. 6. a.

AB43,,3569 c. Multiply the amount that is calculated under subd. 6. b. by 10 percent.

AB43,,3570 d. Multiply the amount of the claimant’s net income tax liability by the amount that is calculated under subd. 6. c.

AB43,,3571 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the period under s. 71.75 (2).

AB43,,3572 2. Part-year residents and nonresidents of this state are not eligible for the credit under this subsection.

AB43,,3573 3. Except as provided in subd. 4., only one credit per household is allowed each year.

AB43,,3574 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.

AB43,,3575 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.

AB43,,3576 (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.

AB43,1412 Section 1412. 71.07 (5n) (a) 5. a. of the statutes is amended to read:

AB43,,3578 71.07 (5n) (a) 5. a. “Manufacturing property factor” means a fraction, the numerator of which is the average value of the claimant’s real and personal land and depreciable property assessed under s. 70.995, owned or rented and used in this state by the claimant during the taxable year to manufacture qualified production property, and the denominator of which is the average value of all the claimant’s real and personal land and depreciable property owned or rented during the taxable year and used by the claimant to manufacture qualified production property.

AB43,1413 Section 1413. 71.07 (5n) (a) 5. d. of the statutes is repealed.

AB43,1414 Section 1414. 71.07 (5n) (a) 9. (intro.) of the statutes is amended to read:

AB43,,3581 71.07 (5n) (a) 9. (intro.) “Qualified production property” means either any of the following:

AB43,1415 Section 1415. 71.07 (5n) (a) 9. a. of the statutes is amended to read:

AB43,,3583 71.07 (5n) (a) 9. a. Tangible personal property manufactured in whole or in part by the claimant on property that is located in this state and assessed as manufacturing property under s. 70.995. Tangible personal property manufactured in this state may only be qualified production property if it is manufactured on property approved to be classified as manufacturing real property for purposes of s. 70.995, even if it is not eligible to be listed on the department’s manufacturing roll until January 1 of the following year.

AB43,1416 Section 1416. 71.07 (5n) (a) 9. c. of the statutes is created to read:

AB43,,3585 71.07 (5n) (a) 9. c. Tangible personal property manufactured in whole or in part by the claimant at an establishment that is located in this state and classified as manufacturing under s. 70.995 (5n). A person wishing to classify the person’s establishment as manufacturing under this subd. 9. c. shall file an application in the form and manner prescribed by the department no later than July 1 of the taxable year for which the person wishes to claim the credit under this subsection, pursuant to s. 70.995 (5n). The department shall make a determination and provide written notice by December 31 of the year in which the application is filed. A determination on the classification under this subd. 9. c. may be appealed as provided under s. 70.995 (5n).

AB43,1417 Section 1417. 71.07 (5n) (d) 2. of the statutes is amended to read:

AB43,,3587 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. This subdivision does not apply if the claimant’s entire qualified production activities income results from the sale of tangible personal property that was manufactured, produced, grown, or extracted wholly in this state by the claimant.

****Note: This is reconciled s. 71.07 (5n) (d) 2. This Section has been affected by drafts with the following LRB numbers: -1325/P1 and -1739/P2.

AB43,1418 Section 1418. 71.07 (5n) (d) 2m. of the statutes is created to read:

AB43,,3589 71.07 (5n) (d) 2m. For taxable years beginning after December 31, 2022, 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. This subdivision does not apply if the claimant’s entire qualified production activities income results from the sale of tangible personal property that was manufactured, produced, grown, or extracted wholly in this state by the claimant.

****Note: This is reconciled s. 71.07 (5n) (d) 2m. This Section has been affected by drafts with the following LRB numbers: -1325/P1 and -1739/P2.

AB43,1419 Section 1419. 71.07 (6e) (a) 2. b. of the statutes is amended to read:

AB43,,3591 71.07 (6e) (a) 2. b. An individual who had served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces; who was a resident of this state at the time of entry into that active service or who had been a resident of this state for any consecutive 5-year period after entry into that active duty service; who was a resident of this state at the time of his or her death; and who had either a service-connected disability rating of 100 at least 70 percent under 38 USC 1114 or 1134 or a 100 percent disability rating based on individual unemployability.

AB43,1420 Section 1420. 71.07 (6e) (a) 3. d. of the statutes is amended to read:

AB43,,3593 71.07 (6e) (a) 3. d. Has either a service-connected disability rating of 100 at least 70 percent under 38 USC 1114 or 1134 or a 100 percent disability rating based on individual unemployability.

AB43,1421 Section 1421. 71.07 (6e) (a) 5. of the statutes is amended to read:

AB43,,3595 71.07 (6e) (a) 5. “Property taxes” means real and personal property taxes, exclusive of special assessments, delinquent interest, and charges for service, paid by a claimant, and the claimant’s spouse if filing a joint return, on the eligible veteran’s or unremarried surviving spouse’s principal dwelling in this state during the taxable year for which credit under this subsection is claimed, less any property taxes paid which are properly includable as a trade or business expense under section 162 of the Internal Revenue Code. If the principal dwelling on which the taxes were paid is owned by 2 or more persons or entities as joint tenants or tenants in common or is owned by spouses as marital property, “property taxes” is that part of property taxes paid that reflects the ownership percentage of the claimant, except that this limitation does not apply to spouses who file a joint return. If the principal dwelling is sold during the taxable year, the “property taxes” for the seller and buyer shall be the amount of the tax prorated to each in the closing agreement pertaining to the sale or, if not so provided for in the closing agreement, the tax shall be prorated between the seller and buyer in proportion to months of their respective ownership. “Property taxes” includes monthly municipal permit fees in respect to a principal dwelling collected under s. 66.0435 (3) (c).

AB43,1422 Section 1422. 71.07 (6e) (a) 6. of the statutes is created to read:

AB43,,3597 71.07 (6e) (a) 6. “Rent constituting property taxes” has the meaning given in sub. (9) (a) 4.

AB43,1423 Section 1423. 71.07 (6e) (b) of the statutes is amended to read:

AB43,,3599 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).

AB43,1424 Section 1424. 71.07 (6e) (c) 3. of the statutes is amended to read:

AB43,,3601 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.

AB43,1425 Section 1425. 71.07 (6e) (c) 4. of the statutes is created to read:

AB43,,3603 71.07 (6e) (c) 4. If a service-connected disability rating is less than 100 percent, the amount that the claimant may claim under this subsection shall be multiplied by a percentage that equals that service-connected disability rating.

AB43,1426 Section 1426. 71.07 (8b) (a) 5. of the statutes is amended to read:

AB43,,3605 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.