AB50: Bill Text

AB50,1287 Section 1287. 71.07 (5n) (d) 2. d. of the statutes is created to read:

AB50,684,23 71.07 (5n) (d) 2. d. For taxable years beginning after December 31, 2024, if a 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, the claimant’s eligible qualified production activities income from manufacturing under this subsection shall equal the amount of the claimant’s qualified production activities income from property manufactured by the claimant, not exceeding $300,000.

AB50,1288 Section 1288. 71.07 (6e) (a) 2. b. of the statutes is amended to read:

AB50,685,8 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.

AB50,1289 Section 1289. 71.07 (6e) (a) 3. d. of the statutes is amended to read:

AB50,685,12 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.

AB50,1290 Section 1290. 71.07 (6e) (a) 6. of the statutes is created to read:

AB50,685,15 71.07 (6e) (a) 6. “Rent constituting property taxes” has the meaning given in sub. (9) (a) 4.

AB50,1291 Section 1291. 71.07 (6e) (b) of the statutes is amended to read:

AB50,686,2 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).

AB50,1292 Section 1292. 71.07 (6e) (c) 3. of the statutes is amended to read:

AB50,686,9 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.

AB50,1293 Section 1293. 71.07 (6e) (c) 4. of the statutes is created to read:

AB50,686,13 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.

AB50,1294 Section 1294. 71.07 (8b) (a) 7. of the statutes is amended to read:

AB50,687,2 71.07 (8b) (a) 7. “Qualified development” means a qualified low-income housing project under section 42 (g) of the Internal Revenue Code that is financed with tax-exempt bonds, pursuant to section 42 (i) (2) described in section 42 (h) (4) (A) of the Internal Revenue Code, allocated the credit under section 42 of the Internal Revenue Code, and located in this state; except that the authority may waive, in the qualified allocation plan under section 42 (m) (1) (B) of the Internal Revenue Code, the requirements of tax-exempt bond financing and federal credit allocation to the extent the authority anticipates that sufficient volume cap under section 146 of the Internal Revenue Code will not be available to finance low-income housing projects in any year.

AB50,1295 Section 1295. 71.07 (8m) of the statutes is created to read:

AB50,687,5 71.07 (8m) Universal changing station credit. (a) Definitions. In this subsection:

AB50,687,9 1. “Claimant” means a sole proprietor, a partner of a partnership, a member of a limited liability company, or a shareholder of a tax-option corporation who files a claim under this subsection and meets either of the following conditions during the preceding taxable year:

AB50,687,10 a. Had gross receipts that did not exceed $1,000,000.

AB50,687,11 b. Employed no more than 30 full-time employees.

AB50,687,13 2. “Full-time employee” means an individual who is employed for at least 30 hours per week for 20 or more calendar weeks during a taxable year.

AB50,687,17 3. “Universal changing station” means a powered and height-adjustable adult changing table that is either floor mounted or wall mounted with a safety rail and can be used by an individual with a disability of either sex and the individual’s care provider for personal hygiene and that satisfies all of the following:

AB50,687,19 a. The changing table can lower to a height of 8 inches and raise to a height of 34 inches.

AB50,687,20 b. The changing table is at least 31 inches wide by 72 inches long.

AB50,687,21 c. The changing table supports at least 350 pounds.

AB50,688,3 (b) Filing claims. For taxable years beginning after December 31, 2024, 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 amount the claimant paid during the taxable year to install a universal changing station.

AB50,688,9 (c) Limitations. 1. No credit may be claimed under this subsection unless the universal changing station is installed in a single-occupant restroom that measures at least 8 feet by 10 feet, with adequate space for a wheelchair and a care provider to maneuver; that is equipped with a waste receptacle, a toilet, a lavatory, a soap dispenser, and a paper towel dispenser; and that complies with accessibility standards under the federal Americans with Disabilities Act.

AB50,688,10 2. The credit claimed under this subsection may not exceed $5,125.

AB50,688,17 3. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on the amounts paid by the entity. A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members, and shareholders may claim the credit in proportion to their ownership interests.

AB50,688,19 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB50,1296 Section 1296. 71.07 (8s) of the statutes is created to read:

AB50,688,22 71.07 (8s) Flood insurance premiums credit. (a) Definitions. In this subsection:

AB50,688,23 1. “Claimant” means an individual who files a claim under this subsection.

AB50,689,2 2. “Flood insurance” means a flood insurance policy that covers the principal dwelling of the claimant.

AB50,689,8 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2024, 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.

AB50,689,10 (c) Limitations. 1. No credit may be claimed under this subsection by a part- year resident or a nonresident of this state.

AB50,689,12 2. No credit may be allowed under this subsection unless it is claimed within the period specified in s. 71.75 (2).

AB50,689,15 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.

AB50,689,17 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

AB50,1297 Section 1297. 71.07 (9e) (aj) (intro.) of the statutes is amended to read:

AB50,689,23 71.07 (9e) (aj) (intro.) For taxable years beginning after December 31, 2010, and before January 1, 2025, 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:

AB50,1298 Section 1298. 71.07 (9e) (ak) of the statutes is created to read:

AB50,690,6 71.07 (9e) (ak) For taxable years beginning after December 31, 2024, 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:

AB50,690,8 1. If the individual has one qualifying child who has the same principal place of abode as the individual, 16 percent.

AB50,690,10 2. If the individual has 2 qualifying children who have the same principal place of abode as the individual, 25 percent.

AB50,690,12 3. If the individual has 3 or more qualifying children who have the same principal place of abode as the individual, 34 percent.

AB50,1299 Section 1299. 71.07 (9e) (b) of the statutes is amended to read:

AB50,690,18 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.

AB50,1300 Section 1300. 71.07 (9m) (a) 1m. of the statutes is repealed.

AB50,1301 Section 1301. 71.07 (9m) (a) 2m. of the statutes is amended to read:

AB50,691,4 71.07 (9m) (a) 2m. For taxable years beginning after December 31, 2013, and before January 1, 2026, any person may claim as a credit against taxes otherwise due under s. 71.02, up to the amount of those taxes, an amount equal to 20 percent of the costs of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue Code, for certified historic structures on property located in this state, if the cost of the person’s qualified rehabilitation expenditures is at least $50,000 and the rehabilitated property is placed in service after December 31, 2013.

AB50,1302 Section 1302. 71.07 (9m) (a) 3. of the statutes is amended to read:

AB50,691,19 71.07 (9m) (a) 3. For taxable years beginning after December 31, 2013, and before January 1, 2026, any person may claim as a credit against taxes otherwise due under s. 71.02, up to the amount of those taxes, an amount equal to 20 percent of the costs of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue Code, for qualified rehabilitated buildings, as defined in section 47 (c) (1) of the Internal Revenue Code, on property located in this state, if the cost of the person’s qualified rehabilitation expenditures is at least $50,000 and the rehabilitated property is placed in service after December 31, 2013, and regardless of whether the rehabilitated property is used for multiple or revenue- producing purposes. No credit may be claimed under this subdivision for property listed as a contributing building in the state register of historic places or in the national register of historic places and no credit may be claimed under this subdivision for nonhistoric, nonresidential property converted into housing if the property has been previously used for housing.

AB50,1303 Section 1303. 71.07 (9m) (a) 4. of the statutes is created to read:

AB50,692,2 71.07 (9m) (a) 4. For taxable years beginning after December 31, 2025, any person may claim as a credit against taxes otherwise due under s. 71.02, up to the amount of those taxes, an amount equal to 20 percent of the costs of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal Revenue Code, for property located in this state, if the rehabilitated property is placed in service after December 31, 2025.

AB50,1304 Section 1304. 71.07 (9m) (c) (intro.) of the statutes is amended to read:

AB50,692,8 71.07 (9m) (c) (intro.) No person may claim the credit under par. (a) 2m. or 4. unless the claimant includes with the claimant’s return a copy of the claimant’s certification under s. 238.17. For certification purposes under s. 238.17, the claimant shall provide to the Wisconsin Economic Development Corporation all of the following:

AB50,1305 Section 1305. 71.07 (9m) (cm) of the statutes is amended to read:

AB50,692,11 71.07 (9m) (cm) Any credit claimed under this subsection par. (a) 2m. and 3. for Wisconsin purposes shall be claimed at the same time as for federal purposes.

AB50,1306 Section 1306. 71.07 (9m) (cn) (intro.) of the statutes is amended to read:

AB50,692,15 71.07 (9m) (cn) (intro.) For taxable years beginning after December 31, 2014, and before January 1, 2026, the Wisconsin Economic Development Corporation shall certify a person to claim a credit under par. (a) 3. if all of the following apply:

AB50,1307 Section 1307. 71.07 (9m) (f) of the statutes is renumbered 71.07 (9m) (f) 1. and amended to read:

AB50,693,18 71.07 (9m) (f) 1. A partnership, limited liability company, or tax-option corporation may not claim the credit under this subsection par. (a) 2m. and 3. The partners of a partnership, members of a limited liability company, or shareholders in a tax-option corporation may claim the credit under this subsection par. (a) 2m. and 3. based on eligible costs incurred by the partnership, company, or tax-option corporation. The partnership, limited liability company, or tax-option corporation shall calculate the amount of the credit which may be claimed by each partner, member, or shareholder and shall provide that information to the partner, member, or shareholder. For shareholders of a tax-option corporation, the credit may be allocated in proportion to the ownership interest of each shareholder. Credits computed by a partnership or limited liability company may be claimed in proportion to the ownership interests of the partners or members or allocated to partners or members as provided in a written agreement among the partners or members that is entered into no later than the last day of the taxable year of the partnership or limited liability company, for which the credit is claimed. For a partnership or limited liability company that places property in service after June 29, 2008, and before January 1, 2009, the credit attributable to such property may be allocated, at the election of the partnership or limited liability company, to partners or members for a taxable year of the partnership or limited liability company that ends after June 29, 2008, and before January 1, 2010. Any partner or member who claims the credit as provided under this paragraph shall attach a copy of the agreement, if applicable, to the tax return on which the credit is claimed. A person claiming the credit as provided under this paragraph is solely responsible for any tax liability arising from a dispute with the department of revenue related to claiming the credit.

AB50,1308 Section 1308. 71.07 (9m) (f) 2. of the statutes is created to read:

AB50,693,23 71.07 (9m) (f) 2. a. A partnership, limited liability company, or tax-option corporation may make an election under s. 71.21 (6) (a) or 71.365 (4m) (a) to claim the credit under par. (a) 4. against the net income or franchise tax otherwise payable to this state on income of the same year.

AB50,694,2 b. A partnership’s partners, limited liability company’s members, and tax- option corporation’s shareholders may not claim the credit under par. (a) 4.

AB50,1309 Section 1309. 71.07 (9m) (g) 1. of the statutes is amended to read:

AB50,694,8 71.07 (9m) (g) 1. If Except as provided in subd. 1m., if a person who claims the credit under this subsection elects to claim the credit based on claiming amounts for expenditures as the expenditures are paid, rather than when the rehabilitation work is completed, the person shall file an election form with the department, in the manner prescribed by the department.

AB50,1310 Section 1310. 71.07 (9m) (g) 1m. of the statutes is created to read:

AB50,694,12 71.07 (9m) (g) 1m. No person may claim the credit under par. (a) 4. unless the person claims the credit for the taxable year in which the rehabilitation work is completed.

AB50,1311 Section 1311. 71.07 (9m) (h) of the statutes is amended to read:

AB50,695,2 71.07 (9m) (h) Any person, including a nonprofit entity described in section 501 (c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under par. (a) 2m. or, 3., or 4., in whole or in part, to another person who is subject to the taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and submits with the notification a copy of the transfer documents, and the department certifies ownership of the credit with each transfer. The transferor may file a claim for more than one taxable year on a form prescribed by the department to compute all years of the credit under par. (a) 2m. or, 3., or 4., at the time of the transfer request. The transferee may first use the credit to offset tax in the taxable year of the transferor in which the transfer occurs and may use the credit only to offset tax in taxable years otherwise allowed to be claimed and carried forward by the original claimant.

AB50,1312 Section 1312. 71.09 (13) (a) 2. of the statutes is amended to read:

AB50,695,11 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.

AB50,1313 Section 1313. 71.10 (4) (fs) of the statutes is created to read:

AB50,695,13 71.10 (4) (fs) Film production company investment credit under s. 71.07 (5h).

AB50,1314 Section 1314. 71.10 (4) (ft) of the statutes is created to read:

AB50,695,15 71.10 (4) (ft) Film production services credit under s. 71.07 (5f) (b) 1. and 3.

AB50,1315 Section 1315. 71.10 (4) (ha) of the statutes is created to read:

AB50,695,17 71.10 (4) (ha) Universal changing station credit under s. 71.07 (8m).

AB50,1316 Section 1316. 71.10 (4) (hg) of the statutes is created to read:

AB50,695,19 71.10 (4) (hg) Flood insurance premiums credit under s. 71.07 (8s).

AB50,1317 Section 1317. 71.10 (4) (i) of the statutes is amended to read:

AB50,696,7 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and beyond under s. 71.613, homestead credit property tax and rent rebate under subch. VIII, jobs tax credit under s. 71.07 (3q), business development credit under s. 71.07 (3y), research credit under s. 71.07 (4k) (e) 2. a., film production services credit under s. 71.07 (5f) (b) 2., veterans and surviving spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s. 71.07 (3w), electronics and information technology manufacturing zone credit under s. 71.07 (3wm), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

AB50,1318 Section 1318. 71.125 (1) of the statutes is amended to read:

AB50,696,12 71.125 (1) Except as provided in sub. (2), the tax imposed by this chapter on individuals and the rates under s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2) shall apply to the Wisconsin taxable income of estates or trusts, except nuclear decommissioning trust or reserve funds, and that tax shall be paid by the fiduciary.

AB50,1319 Section 1319. 71.125 (2) of the statutes is amended to read:

AB50,696,18 71.125 (2) Each electing small business trust, as defined in section 1361 (e) (1) of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1), (1m), (1n), (1p), or (1q), or (1r), whichever taxable year is applicable, on its income as computed under section 641 of the Internal Revenue Code, as modified by s. 71.05 (6) to (12), (19) and (20).