AB2-ASA3,29 Section 29 . 71.05 (6) (b) 17. and 18. of the statutes are repealed.

AB2-ASA3,30 Section 30 . 71.05 (6) (b) 19. c. of the statutes is amended to read:

AB2-ASA3,18,6 71.05 (6) (b) 19. c. For taxable years beginning before January 1, 2021, for a person who is a nonresident or a part-year resident of this state, modify the amount calculated under subd. 19. b. by multiplying the amount by a fraction the numerator of which is the person's net earnings from a trade or business that are taxable by this state and the denominator of which is the person's total net earnings from a trade or business.

AB2-ASA3,31 Section 31 . 71.05 (6) (b) 19. cm. of the statutes is created to read:

AB2-ASA3,18,20 71.05 (6) (b) 19. cm. For taxable years beginning after December 31, 2020, for a person who is a nonresident or a part-year resident of this state, modify the amount calculated under subd. 19. b. by multiplying the amount by a fraction the numerator of which is the person'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 person's total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 19. cm., 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.

AB2-ASA3,32 Section 32 . 71.05 (6) (b) 19. d. of the statutes is amended to read:

AB2-ASA3,18,24 71.05 (6) (b) 19. d. Reduce For taxable years beginning before January 1, 2021, reduce the amount calculated under subd. 19. b. or c. to the person's aggregate net earnings from a trade or business that are taxable by this state.

AB2-ASA3,33 Section 33 . 71.05 (6) (b) 19. dm. of the statutes is created to read:

AB2-ASA3,19,4 71.05 (6) (b) 19. dm. For taxable years beginning after December 31, 2020, reduce the amount calculated under subd. 19. b. or cm. to the person's aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.

AB2-ASA3,34 Section 34 . 71.05 (6) (b) 20., 36., 37., 39., 40. and 41. of the statutes are repealed.

AB2-ASA3,35 Section 35 . 71.05 (6) (b) 54. of the statutes is created to read:

AB2-ASA3,19,13 71.05 (6) (b) 54. Except for a payment that is exempt under sub. (1) (a), (am), or (an), or that is exempt as a railroad retirement benefit, for taxable years beginning after December 31, 2020, up to $5,000 of payments or distributions received each year by an individual from a qualified retirement plan under the Internal Revenue Code or from an individual retirement account established under 26 USC 408, if all of the following conditions apply:

AB2-ASA3,19,15 a. The individual is at least 65 years of age before the close of the taxable year to which the exemption claim relates.

AB2-ASA3,19,18 b. If the individual is single or files as head of household, his or her federal adjusted gross income in the year to which the exemption claim relates is less than $15,000.

AB2-ASA3,19,20 c. If the individual is married and is a joint filer, the couple's federal adjusted gross income in the year to which the exemption claim relates is less than $30,000.

AB2-ASA3,19,23 d. If the individual is married and files a separate return, the sum of both spouses' federal adjusted gross income in the year to which the exemption claim relates is less than $30,000.

AB2-ASA3,36 Section 36 . 71.07 (5) (a) 15. of the statutes is amended to read:

AB2-ASA3,20,6 71.07 (5) (a) 15. The amount claimed as a deduction for medical care insurance under section 213 of the Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 17. to 20. 19., 35., 36., 37., 38., 39., 40., 41., and 42. and the amount claimed as a deduction for a long-term care insurance policy under section 213 (d) (1) (D) of the Internal Revenue Code, as defined in section 7702B (b) of the Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 26.

AB2-ASA3,37 Section 37. 71.07 (9m) (h) of the statutes is amended to read:

AB2-ASA3,20,19 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., 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-ASA3,38 Section 38 . 71.22 (4) (c), (d), (e), (f), (g), (h) and (i) of the statutes are repealed.

AB2-ASA3,39 Section 39 . 71.22 (4) (j) 3. m. of the statutes is created to read:

AB2-ASA3,20,23 71.22 (4) (j) 3. m. Sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of P.L. 115-141.

AB2-ASA3,40 Section 40 . 71.22 (4) (j) 3. n. of the statutes is created to read:

AB2-ASA3,21,2 71.22 (4) (j) 3. n. Section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94.

AB2-ASA3,41 Section 41 . 71.22 (4) (k) 3. of the statutes is amended to read:

AB2-ASA3,21,9 71.22 (4) (k) 3. For purposes of this paragraph, “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2016, except that “Internal Revenue Code” includes sections 11024, 11025, and 13543 of P.L. 115-97; sections 40307 and 40413 of P.L. 115-123, sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of 115-141; and section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94.

AB2-ASA3,42 Section 42 . 71.22 (4) (L) 1. of the statutes is amended to read:

AB2-ASA3,21,15 71.22 (4) (L) 1. For taxable years beginning after December 31, 2017, and before January 1, 2021, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2017, except as provided in subds. 2. and 3. and subject to subd. 4., and except as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34 (1g), 71.42 (2), and 71.98.