AB43: Bill Text

AB43,,3661 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2022, 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.

AB43,,3662 (c) Limitations. 1. No credit may be claimed under this subsection by a part-year resident or a nonresident of this state.

AB43,,3663 2. No credit may be allowed under this subsection unless it is claimed within the period specified in s. 71.75 (2).

AB43,,3664 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.

AB43,,3665 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

AB43,1431 Section 1431. 71.07 (9) (a) 3. of the statutes is amended to read:

AB43,,3667 71.07 (9) (a) 3. “Property taxes” means real and personal property taxes, exclusive of special assessments, delinquent interest and charges for service, paid by a claimant on the claimant’s principal dwelling 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. 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).

AB43,1432 Section 1432. 71.07 (9e) (aj) (intro.) of the statutes is amended to read:

AB43,,3669 71.07 (9e) (aj) (intro.) For taxable years beginning after December 31, 2010, and before January 1, 2023, 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 of the Internal Revenue Code:

AB43,1433 Section 1433. 71.07 (9e) (ak) of the statutes is created to read:

AB43,,3671 71.07 (9e) (ak) For taxable years beginning after December 31, 2022, 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 of the Internal Revenue Code:

AB43,,3672 1. If the individual has one qualifying child who has the same principal place of abode as the individual, 16 percent.

AB43,,3673 2. If the individual has 2 qualifying children who have the same principal place of abode as the individual, 25 percent.

AB43,,3674 3. If the individual has 3 or more qualifying children who have the same principal place of abode as the individual, 34 percent.

AB43,1434 Section 1434. 71.07 (9e) (b) of the statutes is amended to read:

AB43,,3676 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.

AB43,1435 Section 1435. 71.07 (9g) (b) of the statutes is renumbered 71.07 (9g) (b) 1. and amended to read:

AB43,,3678 71.07 (9g) (b) 1. For taxable years beginning after December 31, 2021, and before January 1, 2023, 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, 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.

AB43,1436 Section 1436. 71.07 (9g) (b) 2. of the statutes is created to read:

AB43,,3680 71.07 (9g) (b) 2. 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, an amount equal to 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.

AB43,1437 Section 1437. 71.09 (13) (a) 2. of the statutes is amended to read:

AB43,,3682 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.

AB43,1438 Section 1438. 71.10 (4) (gye) of the statutes is created to read:

AB43,,3684 71.10 (4) (gye) Family and individual reinvestment credit under s. 71.07 (5me).

AB43,1439 Section 1439. 71.10 (4) (ha) of the statutes is created to read:

AB43,,3686 71.10 (4) (ha) Universal changing station credit under s. 71.07 (8m).

AB43,1440 Section 1440. 71.10 (4) (hd) of the statutes is created to read:

AB43,,3688 71.10 (4) (hd) Family caregiver tax credit under s. 71.07 (8p).

AB43,1441 Section 1441. 71.10 (4) (hg) of the statutes is created to read:

AB43,,3690 71.10 (4) (hg) Flood insurance premiums credit under s. 71.07 (8s).

AB43,1442 Section 1442. 71.10 (4) (k) of the statutes is created to read:

AB43,,3692 71.10 (4) (k) Any amount computed under s. 71.83 (1) (ch).

AB43,1443 Section 1443. 71.10 (10) of the statutes is created to read:

AB43,,3694 71.10 (10) First-time home buyer savings accounts. (a) Definitions. In this subsection:

AB43,,3695 1. “Account holder” means an individual who creates, individually or jointly with his or her spouse, an account under par. (b) 1.

AB43,,3696 2. “Allowable closing costs” means disbursements listed in a settlement statement for the purchase of a single-family residence by a beneficiary.

AB43,,3697 3. “Beneficiary” means a first-time home buyer who is designated by an account holder as the beneficiary of an account created under par. (b) 1.

AB43,,3698 4. “Eligible costs” means the down payment and allowable closing costs for the purchase of a single-family residence in this state by a beneficiary.

AB43,,3699 5. “Financial institution” means a bank, trust company, savings institution, savings bank, savings and loan association, industrial loan association, consumer finance company, credit union, benefit association, insurance company, safe deposit company, money market mutual fund, or similar entity authorized to do business in this state.

AB43,,3700 6. “First-time home buyer” means an individual who resides in this state and did not have, either individually or jointly, a present ownership interest in a single-family residence during the 36 months before the month in which the individual purchases a single-family residence in this state.

AB43,,3701 7. “Single-family residence” means a residence intended for occupation by a single family unit that is purchased by a beneficiary for use as his or her principal residence.

AB43,,3702 (b) Creation of account. 1. An individual may create an account and become the account holder by opening an account at a financial institution for the purpose of paying or reimbursing the eligible costs of a first-time home buyer. The account holder shall designate a beneficiary when the account is created and may designate himself or herself as the beneficiary. An account may have only one beneficiary at any one time. An individual may be the beneficiary of more than one account, and an individual may be the account holder of more than one account, but an account holder may not have more than one account that designates the same beneficiary. The account holder may change the beneficiary at any time.

AB43,,3703 2. An individual may jointly own an account created under subd. 1 with his or her spouse.

AB43,,3704 3. Only cash and marketable securities may be contributed to an account created under subd. 1.

AB43,,3705 4. Persons other than an account holder may contribute to an account created under subd. 1, but the subtraction under s. 71.05 (6) (b) 57. may be made only by the account holder.

AB43,,3706 (c) Account holder rights and responsibilities. 1. An account holder may withdraw funds from an account created under par. (b) 1. to pay eligible costs for the benefit of the beneficiary or to reimburse the beneficiary for eligible costs the beneficiary incurs and has paid.

AB43,,3707 2. An account holder may not use funds in an account created under par. (b) 1. to pay any expenses he or she incurs in administering the account, although a financial institution may deduct a service fee from the account.

AB43,,3708 3. Annually, an account holder shall submit to the department with his or her income tax return, on forms prepared by the department, information regarding the account created under par. (b) 1. The information submitted shall include all of the following:

AB43,,3709 a. A list of transactions in the account during the taxable year to which the return relates, including the beginning and ending balances of the account.

AB43,,3710 b. The 1099 form issued by the financial institution that relates to the account.

AB43,,3711 c. A list of eligible costs, and other costs, for which funds from the account were withdrawn during the taxable year to which the return relates.

AB43,,3712 4. An account holder may withdraw funds from an account created under par. (b) 1. with no penalty due under s. 71.83 (1) (ch) and no responsibility to make an addition under s. 71.05 (6) (a) 30. if he or she immediately transfers the funds to a different financial institution and deposits the funds into an account created under par. (b) 1. at that financial institution.

AB43,,3713 (d) Limitations on accounts, dissolution. 1. An account holder may not claim a subtraction under s. 71.05 (6) (b) 57. for more than a total of $50,000 of deposits into any account created under par. (b) 1. for each beneficiary.

AB43,,3714 2. An account holder shall dissolve an account created under par. (b) 1. no later than 120 months after it is created. The financial institution shall distribute any funds in the account at dissolution to the account holder.

AB43,,3715 3. If an account holder dies while funds remain in an account created under par. (b) 1., the account shall be dissolved and the financial institution shall distribute the funds to the account holder’s estate.

AB43,,3716 (e) Department responsibilities. The department shall:

AB43,,3717 1. Prepare and distribute any forms that an account holder is required to submit under par. (c) 3. and any other forms necessary to administer this subsection and the adjustments to income under s. 71.05 (6) (a) 30. and (b) 57.

AB43,,3718 2. Prepare and distribute to financial institutions and potential home buyers informational materials about the accounts described in this subsection.

AB43,1444 Section 1444. 71.17 (2) of the statutes is amended to read:

AB43,,3720 71.17 (2) Lien on trust estate; income taxes levied against beneficiary. All income taxes levied against the income of beneficiaries shall be a lien on that portion of the trust estate or interest therein from which the income taxed is derived, and such taxes shall be paid by the fiduciary, if not paid by the distributee, before the same become delinquent. Every person who, as a fiduciary under the provisions of this subchapter, pays an income tax shall have all the rights and remedies of reimbursement for any taxes assessed against him or her or paid by him or her in such capacity, as provided in s. 70.19 (1) and (2), 2021 stats.

AB43,1445 Section 1445. 71.21 (4) (a) of the statutes is amended to read:

AB43,,3722 71.21 (4) (a) The amount of the credits computed by a partnership under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8m), and (10) and passed through to partners shall be added to the partnership’s income.

AB43,1446 Section 1446. 71.22 (4) of the statutes is repealed and recreated to read:

AB43,,3724 71.22 (4) “Internal Revenue Code” has the meaning given in s. 71.99.

AB43,1447 Section 1447. 71.22 (4m) of the statutes is repealed and recreated to read:

AB43,,3726 71.22 (4m) For corporations that are subject to a tax on unrelated business income under s. 71.26 (1) (a), “Internal Revenue Code” has the meaning given in s. 71.99.

AB43,1448 Section 1448. 71.22 (5) of the statutes is repealed.

AB43,1449 Section 1449. 71.22 (5g) of the statutes is repealed.

AB43,1450 Section 1450. 71.22 (5m) of the statutes is repealed.

AB43,1451 Section 1451. 71.26 (1) (b) of the statutes is amended to read:

AB43,,3731 71.26 (1) (b) Political units. Income received by the United States, the state and all counties, cities, villages, towns, school districts, technical college districts, joint local water authorities created under s. 66.0823, transit authorities created under s. 66.1039, long-term care districts under s. 46.2895 or other political units of this state.

AB43,1452 Section 1452. 71.26 (2) (a) 4. of the statutes is amended to read:

AB43,,3733 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm), (1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8m), and (10) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership’s, limited liability company’s, or tax-option corporation’s income under s. 71.21 (4) or 71.34 (1k) (g).

AB43,1453 Section 1453. 71.26 (2) (b) of the statutes is repealed and recreated to read:

AB43,,3735 71.26 (2) (b) Regulated investment companies, real estate mortgage investment conduits, real estate investment trusts, and financial asset securitization investment trusts. For a corporation, conduit, or common law trust that qualifies as a regulated investment company, real estate mortgage investment conduit, real estate investment trust, or financial asset securitization investment trust under the Internal Revenue Code, “net income” means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income, federal real estate investment trust taxable income, or financial asset securitization investment trust taxable income of the corporation, conduit, or trust as determined under the Internal Revenue Code.

AB43,1454 Section 1454. 71.26 (3) (j) of the statutes is amended to read:

AB43,,3737 71.26 (3) (j) Sections 243, 244, 245, 245A, 246 and 246A are excluded and replaced by the rule that corporations may deduct from income dividends received from a corporation with respect to its common stock if the corporation receiving the dividends owns, directly or indirectly, during the entire taxable year at least 70 percent of the total combined voting stock of the payor corporation. In this paragraph, “dividends received” means gross dividends minus taxes on those dividends paid to a foreign nation and claimed as a deduction under this chapter. The same dividends may not be deducted more than once and may not be used in the determination of a net business loss under ss. 71.26 (4) and 71.45 (4).

AB43,1455 Section 1455. 71.26 (4) (a) of the statutes is amended to read:

AB43,,3739 71.26 (4) (a) Except as provided in par. (b) and s. 71.80 (25), a corporation, except a tax-option corporation or an insurer to which s. 71.45 (4) applies, may offset against its Wisconsin net business income any Wisconsin net business loss incurred in any of the 20 immediately preceding taxable years, if the corporation was subject to taxation under this chapter in the taxable year in which the loss was incurred, to the extent not offset by other items of Wisconsin income in the loss year and by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed. For purposes of this subsection, Wisconsin net business income or loss shall consist of all the income attributable to the operation of a trade or business in this state, less the business expenses allowed as deductions in computing net income, except that the dividends received deduction under sub. (3) (j) may not be used in the determination of a net business loss. The Wisconsin net business income or loss of corporations engaged in business within and without the state shall be determined under s. 71.25 (6) and (10) to (12). Nonapportionable losses having a Wisconsin situs under s. 71.25 (5) (b) shall be included in Wisconsin net business loss; and nonapportionable income having a Wisconsin situs under s. 71.25 (5) (b), whether taxable or exempt, shall be included in other items of Wisconsin income and Wisconsin net business income for purposes of this subsection.

AB43,1456 Section 1456. 71.28 (3w) (a) 2m. of the statutes is created to read:

AB43,,3741 71.28 (3w) (a) 2m. “Contract” means a contract between the claimant and the Wisconsin Economic Development Corporation under s. 238.399.

AB43,1457 Section 1457. 71.28 (3w) (a) 6. of the statutes is renumbered 71.28 (3w) (a) 6. a. and amended to read:

AB43,,3743 71.28 (3w) (a) 6. a. “Zone payroll” means the amount of state payroll that is attributable to wages paid to full-time employees for services that are performed in an enterprise zone. “Zone Except as provided in subd. 6. b., “zone payroll” does not include the amount of wages paid to any full-time employees that exceeds $100,000.

AB43,1458 Section 1458. 71.28 (3w) (a) 6. b. of the statutes is created to read:

AB43,,3745 71.28 (3w) (a) 6. b. For a claimant whose contract is executed after December 31, 2023, “zone payroll” does not include the amount of wages paid to any full-time employees that exceeds $141,300.

AB43,1459 Section 1459. 71.28 (3w) (b) (intro.) of the statutes is amended to read:

AB43,,3747 71.28 (3w) (b) Filing claims under pre-2024 contracts; payroll. (intro.) Subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant whose contract is executed prior to January 1, 2024, may claim as a credit against the tax imposed under s. 71.23 an amount calculated as follows:

AB43,1460 Section 1460. 71.28 (3w) (bd) of the statutes is created to read:

AB43,,3749 71.28 (3w) (bd) Filing claims under post-2023 contracts; payroll. Subject to the limitations provided in this subsection and s. 238.399, a claimant whose contract is executed after December 31, 2023, may claim as a credit against the tax imposed under s. 71.23 an amount calculated as follows: