AB50: Bill Text

AB50,1239 Section 1239. 71.05 (6) (b) 38. d. of the statutes is amended to read:

AB50,658,2 71.05 (6) (b) 38. d. Reduce the amount calculated under subd. 38. a., b., or c. to the individual’s aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.

AB50,1240 Section 1240. 71.05 (6) (b) 42. c. of the statutes is amended to read:

AB50,658,15 71.05 (6) (b) 42. c. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 42. a. or b., by a fraction the numerator of which is the individual’s wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual’s total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 42. c., for married persons filing separately “wages, salary, tips, unearned income, and net earnings from a trade or business” means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income, and net earnings from a trade or business” means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.

AB50,1241 Section 1241. 71.05 (6) (b) 42. d. of the statutes is amended to read:

AB50,658,19 71.05 (6) (b) 42. d. Reduce the amount calculated under subd. 42. a., b., or c. to the individual’s aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.

AB50,1242 Section 1242. 71.05 (6) (b) 43. f. of the statutes is amended to read:

AB50,659,9 71.05 (6) (b) 43. f. An individual who is a nonresident or part-year resident of this state and who claims the subtraction under this subdivision shall multiply the amount calculated under subd. 43. a., b., c., or d. by a fraction the numerator of which is the individual’s wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual’s total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 43. f., for married persons filing separately “wages, salary, tips, unearned income, and net earnings from a trade or business” means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income, and net earnings from a trade or business” means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.

AB50,1243 Section 1243. 71.05 (6) (b) 49. a. of the statutes is amended to read:

AB50,659,16 71.05 (6) (b) 49. a. Subject to the definitions provided in subd. 49. b. to g. and the limitations specified in subd. 49. h. to j. for taxable years beginning after December 31, 2013, and subject to the limitation in subd. 49. k. for taxable years beginning after December 31, 2017, and subject to the limitation in subd. 49. m. for taxable years beginning after December 31, 2024, tuition expenses that are paid by a claimant for tuition for a pupil to attend an eligible institution.

AB50,1244 Section 1244. 71.05 (6) (b) 49. m. of the statutes is created to read:

AB50,659,22 71.05 (6) (b) 49. m. For taxable years beginning after December 31, 2024, no modification may be made under this subdivision unless the adjusted gross income of the claimant is less than $100,000 if the claimant is filing as single or head of household, $150,000 if the claimant is married and filing jointly, or $75,000 if the claimant is married and filing separately.

AB50,1245 Section 1245. 71.05 (6) (b) 57. of the statutes is created to read:

AB50,660,4 71.05 (6) (b) 57. For taxable years beginning after December 31, 2024, any increase in the value of a catastrophe savings account, as described in s. 224.28, other than from a deposit into the account, except that the subtraction under this subdivision may not be claimed by an account owner who has made a withdrawal from the account that was not used to pay an expense described in s. 224.28 (3).

AB50,1246 Section 1246. 71.05 (6) (b) 58. of the statutes is created to read:

AB50,660,10 71.05 (6) (b) 58. For taxable years beginning after December 31, 2024, an amount equal to any deposit made during the taxable year to a catastrophe savings account, as described in s. 224.28, by the account owner. The subtraction made under this subdivision may not exceed an amount equal to the amount specified for the account owner under s. 224.28 (4).

AB50,1247 Section 1247. 71.05 (6) (b) 59. of the statutes is created to read:

AB50,660,15 71.05 (6) (b) 59. For taxable years beginning after December 31, 2026, to the extent not otherwise excluded from Wisconsin taxable income if not for this subdivision, the amount of membership dues and expenses paid by the claimant during the taxable year to a labor organization, as defined in s. 5.02 (8m).

AB50,1248 Section 1248. 71.05 (22) (a) (title) of the statutes is amended to read:

AB50,660,18 71.05 (22) (a) (title) Election of deductions; husband and wife spousal deductions.

AB50,1249 Section 1249. 71.05 (22) (f) 1m. of the statutes is amended to read:

AB50,660,24 71.05 (22) (f) 1m. For taxable years beginning after December 31, 1997, in the case of a taxpayer with respect to whom an exemption under sub. (23) (b) 2. or (be) 2. is allowable to another person, the Wisconsin standard deduction shall be the lesser of the amount under subd. 2m. or one of the amounts calculated under subd. 3m., whichever amount under subd. 3m. is greater.

AB50,1250 Section 1250. 71.05 (23) (b) (intro.) of the statutes is amended to read:

AB50,661,3 71.05 (23) (b) (intro.) For taxable years that begin after December 31, 2000, and before January 1, 2025:

AB50,1251 Section 1251. 71.05 (23) (be) of the statutes is created to read:

AB50,661,5 71.05 (23) (be) For taxable years that begin after December 31, 2024:

AB50,661,8 1. A personal exemption of $1,200 if the taxpayer is required to file a return under s. 71.03 (2) (a) 1. or 2. and $1,200 for the taxpayer’s spouse, except if the spouse is filing separately or as a head of household.

AB50,661,10 2. An exemption of $1,200 for each dependent, as defined under section 152 of the Internal Revenue Code, of the taxpayer.

AB50,661,15 3. An additional exemption of $250 if the taxpayer has reached the age of 65 before the close of the taxable year to which his or her tax return relates and $250 for the taxpayer’s spouse if he or she has reached the age of 65 before the close of the taxable year to which his or her tax return relates, except if the spouse is filing separately or as a head of household.

AB50,1252 Section 1252. 71.05 (23) (c) of the statutes is amended to read:

AB50,662,6 71.05 (23) (c) With respect to persons who change their domicile into or from this state during the taxable year and nonresident persons, personal exemptions under pars. (a) and, (b), and (be) shall be limited to the fraction of the amount so determined that Wisconsin adjusted gross income is of federal adjusted gross income. In this paragraph, for married persons filing separately “adjusted gross income” means the separate adjusted gross income of each spouse and for married persons filing jointly “adjusted gross income” means the total adjusted gross income of both spouses. If a person and that person’s spouse are not both domiciled in this state during the entire taxable year, their personal exemptions on a joint return are determined by multiplying the personal exemption that would be available to each of them if they were both domiciled in this state during the entire taxable year by a fraction the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

AB50,1253 Section 1253. 71.06 (1q) (intro.) of the statutes is amended to read:

AB50,662,13 71.06 (1q) Fiduciaries, single individuals, and heads of households; after 2012 2013 to 2024. (intro.) The tax to be assessed, levied, and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households shall be computed at the following rates for taxable years beginning after December 31, 2012, and before January 1, 2025:

AB50,1254 Section 1254. 71.06 (1r) of the statutes is created to read:

AB50,662,19 71.06 (1r) Fiduciaries, single individuals, and heads of households; after 2024. The tax to be assessed, levied, and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households shall be computed at the following rates for taxable years beginning after December 31, 2024:

AB50,662,20 (a) On all taxable income from $0 to $7,500, 3.5 percent.

AB50,662,22 (b) On all taxable income exceeding $7,500 but not exceeding $15,000, 4.40 percent.

AB50,662,24 (c) On all taxable income exceeding $15,000 but not exceeding $225,000, 5.3 percent.

AB50,663,2 (d) On all taxable income exceeding $225,000 but not exceeding $1,000,000, 7.65 percent.

AB50,663,3 (e) On all taxable income exceeding $1,000,000, 9.80 percent.

AB50,1255 Section 1255. 71.06 (2) (i) (intro.) of the statutes is amended to read:

AB50,663,6 71.06 (2) (i) (intro.) For joint returns, for taxable years beginning after December 31, 2012, and before January 1, 2025:

AB50,1256 Section 1256. 71.06 (2) (j) (intro.) of the statutes is amended to read:

AB50,663,9 71.06 (2) (j) (intro.) For married persons filing separately, for taxable years beginning after December 31, 2012, and before January 1, 2025:

AB50,1257 Section 1257. 71.06 (2) (k) of the statutes is created to read:

AB50,663,12 71.06 (2) (k) For joint returns, for taxable years beginning after December 31, 2024:

AB50,663,13 1. On all taxable income from $0 to $10,000, 3.5 percent.

AB50,663,15 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 4.40 percent.

AB50,663,17 3. On all taxable income exceeding $20,000 but not exceeding $300,000, 5.3 percent.

AB50,663,19 4. On all taxable income exceeding $300,000 but not exceeding $1,000,000, 7.65 percent.

AB50,663,20 5. On all taxable income exceeding $1,000,000, 9.80 percent.

AB50,1258 Section 1258. 71.06 (2) (L) of the statutes is created to read:

AB50,663,23 71.06 (2) (L) For married persons filing separately, for taxable years beginning after December 31, 2024:

AB50,664,1 1. On all taxable income from $0 to $5,000, 3.5 percent.

AB50,664,3 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 4.40 percent.

AB50,664,5 3. On all taxable income exceeding $10,000 but not exceeding $150,000, 5.3 percent.

AB50,664,7 4. On all taxable income exceeding $150,000 but not exceeding $500,000, 7.65 percent.

AB50,664,8 5. On all taxable income exceeding $500,000, 9.80 percent.

AB50,1259 Section 1259. 71.06 (2e) (a) of the statutes is amended to read:

AB50,665,7 71.06 (2e) (a) For taxable years beginning after December 31, 1998, and before January 1, 2000, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2) (c) and (d), and for taxable years beginning after December 31, 1999, and before January 1, 2025, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1n), (1p) (a) to (c), (1q) (a) and (b), and (2) (e), (f), (g) 1. to 3., (h) 1. to 3., (i) 1. and 2., and (j) 1. and 2., 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 1997, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2000, and before January 1, 2002, the dollar amount in the top bracket under subs. (1p) (c) and (d), (2) (g) 3. and 4. and (h) 3. and 4. shall be increased 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 1999, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2011, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB50,1260 Section 1260. 71.06 (2e) (b) of the statutes is amended to read:

AB50,665,20 71.06 (2e) (b) For taxable years beginning after December 31, 2009, and before January 1, 2025, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1p) (d), (1q) (c), and (2) (g) 4., (h) 4., (i) 3., and (j) 3., and the dollar amount in the top bracket under subs. (1p) (e), (1q) (d), and (2) (g) 5., (h) 5., (i) 4., and (j) 4., 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 2008, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2011, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB50,1261 Section 1261. 71.06 (2e) (bg) of the statutes is created to read:

AB50,666,10 71.06 (2e) (bg) 1. For taxable years beginning after December 31, 2024, the maximum dollar amount in each tax bracket under subs. (1r) (a) and (b) and (2) (k) 1. and 2. and (L) 1. and 2., and the corresponding minimum dollar amount in the next tax bracket under subs. (1r) (b) and (c) and (2) (k) 2. and 3. and (L) 2. and 3. 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 1997, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2024, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB50,666,20 2. For taxable years beginning after December 31, 2024, the maximum dollar amount in each tax bracket under subs. (1r) (c) and (2) (k) 3. and (L) 3., and the corresponding minimum dollar amount in the next tax bracket under subs. (1r) (d) and (2) (k) 4. and (L) 4. 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 2008, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB50,667,7 3. For taxable years beginning after December 31, 2025, the maximum dollar amount in the tax bracket under subs. (1r) (d) and (2) (k) 4. and (L) 4. and the corresponding dollar amount in the top bracket under subs. (1r) (e) and (2) (k) 5. and (L) 5. 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 2024, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB50,1262 Section 1262. 71.06 (2m) of the statutes is amended to read:

AB50,667,12 71.06 (2m) Rate changes. If a rate under sub. (1), (1m), (1n), (1p), (1q), (1r), or (2) changes during a taxable year, the taxpayer shall compute the tax for that taxable year by the methods applicable to the federal income tax under section 15 of the Internal Revenue Code.

AB50,1263 Section 1263. 71.06 (2s) (d) of the statutes is amended to read:

AB50,668,4 71.06 (2s) (d) For taxable years beginning after December 31, 2000, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1p), (1q), (1r), and (2) (g), (h), (i), and (j), (k), and (L) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately “adjusted gross income” means the separate adjusted gross income of each spouse, and for married persons filing jointly “adjusted gross income” means the total adjusted gross income of both spouses. If an individual and that individual’s spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1p), (1q), (1r), and (2) (g), (h), (i), and (j), (k), and (L) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

AB50,1264 Section 1264. 71.07 (3w) (a) 2m. of the statutes is created to read:

AB50,668,7 71.07 (3w) (a) 2m. “Contract” means the contract between the claimant and the Wisconsin Economic Development Corporation under s. 238.399.

AB50,1265 Section 1265. 71.07 (3w) (a) 6. of the statutes is renumbered 71.07 (3w) (a) 6. a. and amended to read:

AB50,668,13 71.07 (3w) (a) 6. a. “Zone payroll” means the amount of state payroll that is attributable to wages paid to full-time employees based 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.

AB50,1266 Section 1266. 71.07 (3w) (a) 6. b. of the statutes is created to read:

AB50,668,17 71.07 (3w) (a) 6. b. For a claimant whose contract is executed after December 31, 2025, “zone payroll” does not include the amount of wages paid to any full-time employees that exceeds $151,300.

AB50,1267 Section 1267. 71.07 (3w) (b) (intro.) of the statutes is amended to read:

AB50,668,23 71.07 (3w) (b) Filing claims under pre-2026 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, 2026, may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount calculated as follows:

AB50,1268 Section 1268. 71.07 (3w) (bd) of the statutes is created to read:

AB50,669,5 71.07 (3w) (bd) Filing claims under post-2025 contracts; payroll. Subject to the limitations provided in this subsection and s. 238.399, a claimant whose contract is executed after December 31, 2025, may claim as a credit against the tax imposed under s. 71.02 an amount calculated as follows:

AB50,669,6 1. Determine the amount that is the lesser of:

AB50,669,13 a. The number of full-time employees whose annual wages are greater than $34,220 in a tier I county or municipality or greater than $45,390 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 $34,220 in a tier I county or municipality or greater than $45,390 in a tier II county or municipality and who the claimant employed in the area that comprises the enterprise zone in the base year.

AB50,669,19 b. The number of full-time employees whose annual wages are greater than $34,220 in a tier I county or municipality or greater than $45,390 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 $34,220 in a tier I county or municipality or greater than $45,390 in a tier II county or municipality and who the claimant employed in the state in the base year.

AB50,670,4 2. Determine the claimant’s average zone payroll by dividing the total wages for full-time employees whose annual wages are greater than $34,220 in a tier I county or municipality or greater than $45,390 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 $34,220 in a tier I county or municipality or greater than $45,390 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year.

AB50,670,7 3. For employees in a tier I county or municipality, subtract $34,220 from the amount determined under subd. 2. and for employees in a tier II county or municipality, subtract $45,390 from the amount determined under subd. 2.

AB50,670,9 4. Multiply the amount determined under subd. 3. by the amount determined under subd. 1.

AB50,670,11 5. Multiply the amount determined under subd. 4. by the percentage determined under s. 238.399, not to exceed 7 percent.

AB50,1269 Section 1269. 71.07 (3w) (bm) 1. of the statutes is amended to read:

AB50,670,23 71.07 (3w) (bm) 1. In addition to the credits under par. pars. (b) and (bd) and subds. 2., 3., and 4., 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.