AB68-SSA1,654,2222 a. Any amount distributed under s. 71.10 (10) (d) 2. or 3.
AB68-SSA1,655,223 b. Any amount withdrawn from the account created under s. 71.10 (10) (b) 1.
24for any reason other than payment or reimbursement of eligible costs, as defined in
25s. 71.10 (10) (a) 4., except that this subd. 30. b. does not apply to the transfer of funds

1to another account as described in s. 71.10 (10) (c) 4. or to the disbursement of funds
2pursuant to a filing for bankruptcy protection under 11 USC 101 et seq.
AB68-SSA1,1265 3Section 1265. 71.05 (6) (b) 9. of the statutes is renumbered 71.05 (6) (b) 9.
4(intro.) and amended to read:
AB68-SSA1,655,215 71.05 (6) (b) 9. (intro.) On assets held more than one year and on all assets
6acquired from a decedent, 30 percent of the capital gain as computed under the
7internal revenue code Internal Revenue Code, not including capital gains for which
8the federal tax treatment is determined under section 406 of P.L. 99-514; not
9including amounts treated as ordinary income for federal income tax purposes
10because of the recapture of depreciation or any other reason; and not including
11amounts treated as capital gain for federal income tax purposes from the sale or
12exchange of a lottery prize. For purposes of this subdivision, the capital gains and
13capital losses for all assets shall be netted before application of the percentage. For
14taxable years beginning after December 31, 2020, no subtraction may be made under
15this subdivision by an individual whose federal adjusted gross income in the taxable
16year exceeds the applicable threshold amount, except that an individual whose
17federal adjusted gross income, less 30 percent of the capital gains otherwise eligible
18for subtraction under this subdivision, is below the applicable threshold amount may
19make the subtraction reduced by the amount that the individual's federal adjusted
20gross income exceeds the applicable threshold amount. In this subdivision,
21“applicable threshold amount” means:
AB68-SSA1,1266 22Section 1266. 71.05 (6) (b) 9. a. of the statutes is created to read:
AB68-SSA1,655,2423 71.05 (6) (b) 9. a. For an estate, a trust, a single individual, or an individual who
24files as a head of household, $400,000.
AB68-SSA1,1267 25Section 1267. 71.05 (6) (b) 9. b. of the statutes is created to read:
AB68-SSA1,656,1
171.05 (6) (b) 9. b. For a married couple who files a joint return, $533,000.
AB68-SSA1,1268 2Section 1268. 71.05 (6) (b) 9. c. of the statutes is created to read:
AB68-SSA1,656,43 71.05 (6) (b) 9. c. For a married individual who files a separate return,
4$266,500.
AB68-SSA1,1269 5Section 1269. 71.05 (6) (b) 17. of the statutes is repealed.
AB68-SSA1,1270 6Section 1270. 71.05 (6) (b) 18. of the statutes is repealed.
AB68-SSA1,1271 7Section 1271 . 71.05 (6) (b) 19. c. of the statutes is amended to read:
AB68-SSA1,656,138 71.05 (6) (b) 19. c. For taxable years beginning before January 1, 2021, for a
9person who is a nonresident or a part-year resident of this state, modify the amount
10calculated under subd. 19. b. by multiplying the amount by a fraction the numerator
11of which is the person's net earnings from a trade or business that are taxable by this
12state and the denominator of which is the person's total net earnings from a trade
13or business.
AB68-SSA1,1272 14Section 1272 . 71.05 (6) (b) 19. cm. of the statutes is created to read:
AB68-SSA1,657,215 71.05 (6) (b) 19. cm. For taxable years beginning after December 31, 2020, for
16a person who is a nonresident or a part-year resident of this state, modify the amount
17calculated under subd. 19. b. by multiplying the amount by a fraction the numerator
18of which is the person's wages, salary, tips, unearned income, and net earnings from
19a trade or business that are taxable by this state and the denominator of which is the
20person's total wages, salary, tips, unearned income, and net earnings from a trade
21or business. In this subd. 19. cm., for married persons filing separately, “ wages,
22salary, tips, unearned income, and net earnings from a trade or business" means the
23separate wages, salary, tips, unearned income, and net earnings from a trade or
24business of each spouse, and for married persons filing jointly, “wages, salary, tips,
25unearned income, and net earnings from a trade or business" means the total wages,

1salary, tips, unearned income, and net earnings from a trade or business of both
2spouses.
AB68-SSA1,1273 3Section 1273 . 71.05 (6) (b) 19. d. of the statutes is amended to read:
AB68-SSA1,657,64 71.05 (6) (b) 19. d. Reduce For taxable years beginning before January 1, 2021,
5reduce
the amount calculated under subd. 19. b. or c. to the person's aggregate net
6earnings from a trade or business that are taxable by this state.
AB68-SSA1,1274 7Section 1274 . 71.05 (6) (b) 19. dm. of the statutes is created to read:
AB68-SSA1,657,118 71.05 (6) (b) 19. dm. For taxable years beginning after December 31, 2020,
9reduce the amount calculated under subd. 19.b. or cm. to the person's aggregate
10wages, salary, tips, unearned income, and net earnings from a trade or business that
11are taxable by this state.
AB68-SSA1,1275 12Section 1275 . 71.05 (6) (b) 20. of the statutes is repealed.
AB68-SSA1,1276 13Section 1276. 71.05 (6) (b) 28. (intro.) of the statutes is amended to read:
AB68-SSA1,657,2114 71.05 (6) (b) 28. (intro.) An amount paid by a claimant for tuition expenses and
15mandatory student fees for a student who is the claimant or who is the claimant's
16child and the claimant's dependent, as defined under section 152 of the Internal
17Revenue Code, to attend any university, college, technical college or a school
18approved under s. 440.52, that is located in Wisconsin or to attend a public vocational
19school or public institution of higher education in Minnesota under the
20Minnesota-Wisconsin
a reciprocity agreement under s. 36.27 (2r) or 39.47,
21calculated as follows:
AB68-SSA1,1277 22Section 1277. 71.05 (6) (b) 34. of the statutes is amended to read:
AB68-SSA1,658,423 71.05 (6) (b) 34. Any amount of basic, special, and incentive pay income or
24compensation, as those terms are used in 37 USC chapters 3 and 5, received from the
25federal government by a person who is a member of a reserve component of the U.S.

1armed forces, after being called into active federal service under the provisions of 10
2USC 12302
(a) or, 10 USC 12304, or 10 USC 12304b, or into special state service
3authorized by the federal department of defense under 32 USC 502 (f), that is paid
4to the person for a period of time during which the person is on active duty.
AB68-SSA1,1278 5Section 1278. 71.05 (6) (b) 34m. of the statutes is created to read:
AB68-SSA1,658,116 71.05 (6) (b) 34m. For taxable years beginning after December 31, 2020, any
7amount of pay, as described in s. 321.35, received from this state by a person who is
8a member of the Wisconsin national guard after being called into state active duty
9under s. 321.39 that is paid to the person for the period of time during which the
10person is on state active duty, to the extent that the income is not subtracted under
11subd. 34.
AB68-SSA1,1279 12Section 1279 . 71.05 (6) (b) 36. of the statutes is repealed.
AB68-SSA1,1280 13Section 1280 . 71.05 (6) (b) 37. of the statutes is repealed.