AB43: Bill Text

AB43,,3491 71.05 (22) (a) (title) Election of deductions; husband and wife spousal deductions.

AB43,1388 Section 1388. 71.07 (3w) (a) 2m. of the statutes is created to read:

AB43,,3493 71.07 (3w) (a) 2m. “Contract” means the contract between the claimant and the Wisconsin Economic Development Corporation under s. 238.399.

AB43,1389 Section 1389. 71.07 (3w) (a) 6. of the statutes is renumbered 71.07 (3w) (a) 6. a. and amended to read:

AB43,,3495 71.07 (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.

AB43,1390 Section 1390. 71.07 (3w) (a) 6. b. of the statutes is created to read:

AB43,,3497 71.07 (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.

AB43,1391 Section 1391. 71.07 (3w) (b) (intro.) of the statutes is amended to read:

AB43,,3499 71.07 (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. 71.02 or 71.08 an amount calculated as follows:

AB43,1392 Section 1392. 71.07 (3w) (bd) of the statutes is created to read:

AB43,,3501 71.07 (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. 71.02 an amount calculated as follows:

AB43,,3502 1. Determine the amount that is the lesser of:

AB43,,3503 a. The number of full-time employees 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 and who the claimant employed in the enterprise zone in the taxable year, minus the number of full-time employees whose annual wages were greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the area that comprises the enterprise zone in the base year.

AB43,,3504 b. The number of full-time employees 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 and who the claimant employed in the state in the taxable year, minus the number of full-time employees whose annual wages were greater than $32,000 in a tier I county or municipality or greater than $42,390 in a tier II county or municipality and who the claimant employed in the state in the base year.

AB43,,3505 2. Determine the claimant’s average zone payroll by dividing total wages for full-time employees 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 and who the claimant employed in the enterprise zone in the taxable year by the number of full-time employees 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 and who the claimant employed in the enterprise zone in the taxable year.

AB43,,3506 3. For employees in a tier I county or municipality, subtract $32,000 from the amount determined under subd. 2. and for employees in a tier II county or municipality, subtract $42,390 from the amount determined under subd. 2.

AB43,,3507 4. Multiply the amount determined under subd. 3. by the amount determined under subd. 1.

AB43,,3508 5. Multiply the amount determined under subd. 4. by the percentage determined by under s. 238.399, not to exceed 7 percent.

AB43,1393 Section 1393. 71.07 (3w) (bm) 1. of the statutes is amended to read:

AB43,,3510 71.07 (3w) (bm) 1. In addition to the credits under par. pars. (b) and (bd) and subds. 2., 3., and 4. to 5., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount equal to a percentage, as determined under s. 238.399 or s. 560.799, 2009 stats., not to exceed 100 percent, of the amount the claimant paid in the taxable year to upgrade or improve the job-related skills of any of the claimant’s full-time employees, to train any of the claimant’s full-time employees on the use of job-related new technologies, or to provide job-related training to any full-time employee whose employment with the claimant represents the employee’s first full-time job. This subdivision does not apply to employees who do not work in an enterprise zone.

AB43,1394 Section 1394. 71.07 (3w) (bm) 2. of the statutes is renumbered 71.07 (3w) (bm) 2. (intro.) and amended to read:

AB43,,3512 71.07 (3w) (bm) 2. (intro.) In addition to the credits under par. pars. (b) and (bd) and subds. 1., 3., and 4., and 5., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 one of the following amounts:

AB43,,3513 a. For a claimant whose contract is executed prior to January 1, 2024, an amount equal to the percentage, as determined under s. 238.399 or s. 560.799, 2009 stats., not to exceed 7 percent, of the claimant’s zone payroll paid in the taxable year to all of the claimant’s full-time employees 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, not including the wages paid to the employees determined under par. (b) 1., or greater than $30,000 in a tier II county or municipality, not including the wages paid to the employees determined under par. (b) 1., and who the claimant employed in the enterprise zone in the taxable year, if the total number of such employees is equal to or greater than the total number of such employees in the base year. A claimant may claim a credit under this subdivision for no more than 5 consecutive taxable years.

AB43,1395 Section 1395. 71.07 (3w) (bm) 2. b. of the statutes is created to read:

AB43,,3515 71.07 (3w) (bm) 2. b. For a claimant whose contract is executed after December 31, 2023, an amount equal to the percentage, as determined under s. 238.399, not to exceed 7 percent, of the claimant’s zone payroll paid in the taxable year to all of the claimant’s full-time employees whose annual wages are greater than $32,000 in a tier I county or municipality, not including the wages paid to the employees determined under par. (bd) 1., or greater than $42,390 in a tier II county or municipality, not including the wages paid to the employees determined under par. (bd) 1., and who the claimant employed in the enterprise zone in the taxable year, if the total number of such employees is equal to or greater than the total number of such employees in the base year.

AB43,1396 Section 1396. 71.07 (3w) (bm) 3. of the statutes is amended to read:

AB43,,3517 71.07 (3w) (bm) 3. In addition to the credits under par. pars. (b) and (bd) and subds. 1., 2., and 4., 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, 2008, a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 up to 10 percent of the claimant’s significant capital expenditures, as determined under s. 238.399 (5m) or s. 560.799 (5m), 2009 stats.

AB43,1397 Section 1397. 71.07 (3w) (bm) 4. of the statutes is amended to read:

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.