AB68-SSA1,689,2018 2. An account holder may not use funds in an account created under par. (b) 1.
19to pay any expenses he or she incurs in administering the account, although a
20financial institution may deduct a service fee from the account.
AB68-SSA1,689,2421 3. Annually, an account holder shall submit to the department with his or her
22income tax return, on forms prepared by the department, information regarding the
23account created under par. (b) 1. The information submitted shall include all of the
24following:
AB68-SSA1,690,2
1a. A list of transactions in the account during the taxable year to which the
2return relates, including the beginning and ending balances of the account.
AB68-SSA1,690,33 b. The 1099 form issued by the financial institution that relates to the account.
AB68-SSA1,690,54 c. A list of eligible costs, and other costs, for which funds from the account were
5withdrawn during the taxable year to which the return relates.
AB68-SSA1,690,106 4. An account holder may withdraw funds from an account created under par.
7(b) 1. with no penalty due under s. 71.83 (1) (ch) and no responsibility to make an
8addition under s. 71.05 (6) (a) 30. if he or she immediately transfers the funds to a
9different financial institution and deposits the funds into an account created under
10par. (b) 1. at that financial institution.
AB68-SSA1,690,1311 (d) Limitations on accounts, dissolution. 1. An account holder may not claim
12a subtraction under s. 71.05 (6) (b) 55. for more than a total of $50,000 of deposits into
13any account created under par. (b) 1. for each beneficiary.
AB68-SSA1,690,1614 2. An account holder shall dissolve an account created under par. (b) 1. no later
15than 120 months after it is created. The financial institution shall distribute any
16funds in the account at dissolution to the account holder.
AB68-SSA1,690,1917 3. If an account holder dies while funds remain in an account created under par.
18(b) 1., the account shall be dissolved and the financial institution shall distribute the
19funds to the account holder's estate.
AB68-SSA1,690,2020 (e) Department responsibilities. The department shall:
AB68-SSA1,690,2321 1. Prepare and distribute any forms that an account holder is required to
22submit under par. (c) 3. and any other forms necessary to administer this subsection
23and the adjustments to income under s. 71.05 (6) (a) 30. and (b) 55.
AB68-SSA1,690,2524 2. Prepare and distribute to financial institutions and potential homebuyers
25informational materials about the accounts described in this subsection.
AB68-SSA1,1354
1Section 1354. 71.125 (1) of the statutes is amended to read:
AB68-SSA1,691,52 71.125 (1) Except as provided in sub. (2), the tax imposed by this chapter on
3individuals and the rates under s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2) shall
4apply to the Wisconsin taxable income of estates or trusts, except nuclear
5decommissioning trust or reserve funds, and that tax shall be paid by the fiduciary.
AB68-SSA1,1355 6Section 1355. 71.125 (2) of the statutes is amended to read:
AB68-SSA1,691,117 71.125 (2) Each electing small business trust, as defined in section 1361 (e) (1)
8of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1),
9(1m), (1n), (1p), or (1q), or (1r), whichever taxable year is applicable, on its income
10as computed under section 641 of the Internal Revenue Code, as modified by s. 71.05
11(6) to (12), (19) and (20).
AB68-SSA1,1356 12Section 1356. 71.17 (6) of the statutes is amended to read:
AB68-SSA1,691,1613 71.17 (6) Funeral trusts. If a qualified funeral trust makes the election under
14section 685 of the Internal Revenue Code for federal income tax purposes, that
15election applies for purposes of this chapter and each trust shall compute its own tax
16and shall apply the rates under s. 71.06 (1), (1m), (1n), (1p), or (1q), or (1r).”.
AB68-SSA1,1357 17Section 1357. 71.26 (3) (j) of the statutes is amended to read:
AB68-SSA1,692,218 71.26 (3) (j) Sections 243, 244, 245, 245A, 246 and 246A are excluded and
19replaced by the rule that corporations may deduct from income dividends received
20from a corporation with respect to its common stock if the corporation receiving the
21dividends owns, directly or indirectly, during the entire taxable year at least 70
22percent of the total combined voting stock of the payor corporation. In this
23paragraph, “dividends received" means gross dividends minus taxes on those
24dividends paid to a foreign nation and claimed as a deduction under this chapter. The

1same dividends may not be deducted more than once and may not be used in the
2determination of a net business loss under ss. 71.26 (4) and 71.45 (4)
.
AB68-SSA1,1358 3Section 1358. 71.26 (4) (a) of the statutes is amended to read:
AB68-SSA1,692,214 71.26 (4) (a) Except as provided in par. (b) and s. 71.80 (25), a corporation,
5except a tax-option corporation or an insurer to which s. 71.45 (4) applies, may offset
6against its Wisconsin net business income any Wisconsin net business loss incurred
7in any of the 20 immediately preceding taxable years, if the corporation was subject
8to taxation under this chapter in the taxable year in which the loss was incurred, to
9the extent not offset by other items of Wisconsin income in the loss year and by
10Wisconsin net business income of any year between the loss year and the taxable year
11for which an offset is claimed. For purposes of this subsection, Wisconsin net
12business income or loss shall consist of all the income attributable to the operation
13of a trade or business in this state, less the business expenses allowed as deductions
14in computing net income, except that the dividends received deduction under sub. (3)
15(j) may not be used in the determination of a net business loss
. The Wisconsin net
16business income or loss of corporations engaged in business within and without the
17state shall be determined under s. 71.25 (6) and (10) to (12). Nonapportionable losses
18having a Wisconsin situs under s. 71.25 (5) (b) shall be included in Wisconsin net
19business loss; and nonapportionable income having a Wisconsin situs under s. 71.25
20(5) (b), whether taxable or exempt, shall be included in other items of Wisconsin
21income and Wisconsin net business income for purposes of this subsection.
AB68-SSA1,1359 22Section 1359. 71.28 (3q) (c) 1. of the statutes is renumbered 71.28 (3q) (c) 1.
23a. and amended to read:
AB68-SSA1,693,724 71.28 (3q) (c) 1. a. Partnerships Except as provided in subd. 1. b., partnerships,
25limited liability companies, and tax-option corporations may not claim the credit

1under this subsection, but the eligibility for, and the amount of, the credit are based
2on their payment of amounts under par. (b). A partnership, limited liability company,
3or tax-option corporation shall compute the amount of credit that each of its
4partners, members, or shareholders may claim and shall provide that information
5to each of them. Partners, members of limited liability companies, and shareholders
6of tax-option corporations may claim the credit in proportion to their ownership
7interests.
AB68-SSA1,1360 8Section 1360. 71.28 (3q) (c) 1. b. of the statutes is created to read:
AB68-SSA1,693,219 71.28 (3q) (c) 1. b. For taxable years beginning after December 31, 2020,
10partnerships, limited liability companies, and tax-option corporations may elect to
11claim the credit under this subsection, if the credit results from a contract entered
12into with the Wisconsin Economic Development Corporation before December 22,
132017. A partnership, limited liability company, or tax-option corporation that
14wishes to make the election under this subd. 1. b. shall make the election for each
15taxable year on its original return and may not subsequently make or revoke the
16election. If a partnership, limited liability company, or tax-option corporation elects
17to claim the credit under this subsection, the partners, members, and shareholders
18may not claim the credit under this subsection. The credit may not be claimed under
19this subd. 1. b. if one or more partners, members, or shareholders have claimed the
20credit under this subsection for the same taxable year for which the credit is claimed
21under this subd. 1. b.
AB68-SSA1,1361 22Section 1361. 71.28 (3w) (a) 1. of the statutes is renumbered 71.28 (3w) (a) 1.
23a. and amended to read:
AB68-SSA1,694,3
171.28 (3w) (a) 1. a. “Base Except as provided in subd. 1. b., “base year" means
2the taxable year beginning during the calendar year prior to the calendar year in
3which the enterprise zone in which the claimant is located takes effect.
AB68-SSA1,1362 4Section 1362. 71.28 (3w) (a) 1. b. of the statutes is created to read: