AB2-SSA1,90 Section 90. 71.45 (2) (a) 22. of the statutes is created to read:

AB2-SSA1,40,12 71.45 (2) (a) 22. For taxable years beginning after December 31, 2018, by adding to federal taxable income the amount of the deductions in excess of $250,000 for expenses paid or incurred in the taxable year directly or indirectly from forgiven loans under sections 276 (a) and (b) and 278 (a) of Division N of P.L. 116-260.

AB2-SSA1,91 Section 91. 71.45 (2) (a) 23. of the statutes is created to read:

AB2-SSA1,40,16 71.45 (2) (a) 23. By subtracting from federal taxable income, to the extent included in federal taxable income, income received in the form of a grant issued under s. 73.135.

AB2-SSA1,92 Section 92. 71.47 (6) (h) of the statutes is amended to read:

AB2-SSA1,41,4 71.47 (6) (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., 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., 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.

AB2-SSA1,93 Section 93. 71.52 (1g) of the statutes is created to read:

AB2-SSA1,41,14 71.52 (1g) “Earned income” means wages, salaries, tips, and other employee compensation that may be included in federal adjusted gross income for the taxable year, plus the amount of the claimant's net earnings from self-employment for the taxable year determined with regard to the deduction allowed to the taxpayer by section 164 (f) of the Internal Revenue Code. For purposes of this subsection, a claimant's earned income is computed without regard to any marital property laws and a claimant may elect to treat amounts excluded from federal adjusted gross income as earned income, as provided under section 112 of the Internal Revenue Code. “Earned income” does not include the following:

AB2-SSA1,41,15 (a) Any amount received as a pension or annuity.

AB2-SSA1,41,16 (b) Any amount to which section 871 (a) of the Internal Revenue Code applies.

AB2-SSA1,41,18 (c) Any amount received for services provided by an individual while the individual is an inmate at a penal institution.

AB2-SSA1,41,23 (d) Any amount received for service performed in work activities under paragraphs (4) or (7) of section 407 (d) of the Social Security Act to which the claimant is assigned under any state program under part A of title IV of the Social Security Act. This paragraph applies only to amounts subsidized under any such state program.

AB2-SSA1,94 Section 94. 71.55 (10) of the statutes is amended to read:

AB2-SSA1,42,9 71.55 (10) Farmers. Notwithstanding the provision in s. 71.52 (6) that requires the addition of certain disqualified losses to income, such an addition may not be made by a claimant who is a farmer whose primary income is from farming and whose farming generates less than $250,000 in gross receipts from the operation of farm premises in the year to which the claim relates. For purposes of this subsection, a claimant's primary income is from farming if the claimant's gross income from farming for the year to which the claim relates is greater than 50 percent of the claimant's total gross income from all sources for the year to which the claim relates. In this subsection, “gross income” has the meaning given in s. 71.03 (1).

AB2-SSA1,95 Section 95. 71.76 of the statutes is renumbered 71.76 (1) and amended to read:

AB2-SSA1,43,3 71.76 (1) If for any year the amount of federal net income tax payable, of a credit claimed or carried forward, of a net operating loss carried forward or of a capital loss carried forward of any taxpayer as reported to the internal revenue service is changed or corrected by the internal revenue service or other officer of the United States, such taxpayer shall report such changes or corrections to the department within 90 180 days after its final determination and shall concede the accuracy of such determination or state how the determination is erroneous. Such changes or corrections need not be reported unless they affect the amount of net tax payable under this chapter, of a credit calculated under this chapter, of a Wisconsin net operating loss carried forward, of a Wisconsin net business loss carried forward or of a capital loss carried forward under this chapter. Any taxpayer submitting an amended return to the internal revenue service, or to another state if there has been allowed a credit against Wisconsin taxes for taxes paid to that state, shall also file, within 90 180 days of such filing date, an amended return if any information contained on the amended return affects the amount of net tax payable under this chapter of a credit calculated under this chapter, of a Wisconsin net operating loss carried forward, of a Wisconsin net business loss carried forward or of a capital loss carried forward under this chapter.

AB2-SSA1,96 Section 96 . 71.76 (2) of the statutes is created to read:

AB2-SSA1,43,13 71.76 (2) In the case of any partnership adjustments, as defined under section 6241 of the Internal Revenue Code and including adjustments under section 6225 of the Internal Revenue Code, the partnership and its partners shall report such changes or corrections to the department within 180 days after the final determination by the internal revenue service and shall concede the accuracy of such determination or state how the determination is erroneous. The partnership and its partners shall submit amended returns, as applicable, for each reviewed year, as defined under section 6225 of the Internal Revenue Code, to which such partnership adjustments relate.

AB2-SSA1,97 Section 97. 71.77 (7) (b) of the statutes is amended to read:

AB2-SSA1,43,21 71.77 (7) (b) If notice of assessment or refund is given to the taxpayer within 90 180 days of the date on which the department receives a report from the taxpayer under s. 71.76 or within such other period specified in a written agreement entered into prior to the expiration of such 90 180 days by the taxpayer and the department. If the taxpayer does not report to the department as required under s. 71.76, the department may make an assessment against the taxpayer or refund to the taxpayer within 4 years after discovery by the department.

AB2-SSA1,98 Section 98 . 71.83 (1) (a) 6. of the statutes is amended to read:

AB2-SSA1,44,3 71.83 (1) (a) 6. `Retirement plans.' Any natural person who is liable for a penalty for federal income tax purposes under section 72 (m) (5), (q), (t), and (v), 4973, 4974, 4975, or 4980A of the Internal Revenue Code is liable for 33 percent of the federal penalty unless the income received is exempt from taxation under s. 71.05 (1) (a) or (ae) (6) (b) 54. The penalties provided under this subdivision shall be assessed, levied, and collected in the same manner as income or franchise taxes.

AB2-SSA1,99 Section 99. 73.0305 of the statutes is amended to read:

AB2-SSA1,44,11 73.0305 Revenue limits calculations. The department of revenue shall annually determine and certify to the state superintendent of public instruction, no later than the 4th Monday in June at the superintendent's request, the allowable rate of increase under subch. VII of ch. 121. The allowable rate of increase is the percentage change, if not negative, in the consumer price index for all urban consumers, U.S. city average, between the preceding March 31 and the 2nd preceding March 31, as computed by the federal department of labor.

AB2-SSA1,100 Section 100. 73.09 (4) (c) of the statutes is amended to read:

AB2-SSA1,44,19 73.09 (4) (c) Recertification is contingent upon submission of an application for renewal, at least 60 days before the expiration date of the current certificate, attesting to the completion of the requirements specified in par. (b). Persons applying for renewal on the basis of attendance at the meetings called by the department under s. 73.06 (1) and by meeting continuing education requirements shall submit a $20 recertification fee, in an amount determined by the department not to exceed $75, with their applications.

AB2-SSA1,101 Section 101. 73.09 (5) of the statutes is amended to read:

AB2-SSA1,45,6 73.09 (5) Examinations. As provided in subs. (1) and (2), the department of revenue shall prepare and administer examinations for each level of certification. A person applying for an examination under this subsection shall submit a $20 an examination fee with the person's application. If the department administers and grades the examinations, the fee shall be the amount equal to the department's best estimate of the actual cost to administer and grade the examinations, but no greater than $75. If a test service provider administers and grades the examinations, the fee shall be the amount equal to the department's best estimate of the provider's actual cost to administer and grade the examinations, but no greater than $75. The department of revenue shall grant certification to each person who passes the examination for that level.

AB2-SSA1,102 Section 102. 73.135 of the statutes is created to read: