AB2-ASA3,29 23Section 29 . 71.05 (6) (b) 17. and 18. of the statutes are repealed.
AB2-ASA3,30 24Section 30 . 71.05 (6) (b) 19. c. of the statutes is amended to read:
AB2-ASA3,18,6
171.05 (6) (b) 19. c. For taxable years beginning before January 1, 2021, for a
2person who is a nonresident or a part-year resident of this state, modify the amount
3calculated under subd. 19. b. by multiplying the amount by a fraction the numerator
4of which is the person's net earnings from a trade or business that are taxable by this
5state and the denominator of which is the person's total net earnings from a trade
6or business.
AB2-ASA3,31 7Section 31 . 71.05 (6) (b) 19. cm. of the statutes is created to read:
AB2-ASA3,18,208 71.05 (6) (b) 19. cm. For taxable years beginning after December 31, 2020, for
9a person 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 wages, salary, tips, unearned income, and net earnings from
12a trade or business that are taxable by this state and the denominator of which is the
13person's total wages, salary, tips, unearned income, and net earnings from a trade
14or business. In this subd. 19. cm., for married persons filing separately “ wages,
15salary, tips, unearned income, and net earnings from a trade or business" means the
16separate wages, salary, tips, unearned income, and net earnings from a trade or
17business of each spouse, and for married persons filing jointly “wages, salary, tips,
18unearned income, and net earnings from a trade or business" means the total wages,
19salary, tips, unearned income, and net earnings from a trade or business of both
20spouses.
AB2-ASA3,32 21Section 32 . 71.05 (6) (b) 19. d. of the statutes is amended to read:
AB2-ASA3,18,2422 71.05 (6) (b) 19. d. Reduce For taxable years beginning before January 1, 2021,
23reduce
the amount calculated under subd. 19. b. or c. to the person's aggregate net
24earnings from a trade or business that are taxable by this state.
AB2-ASA3,33 25Section 33 . 71.05 (6) (b) 19. dm. of the statutes is created to read:
AB2-ASA3,19,4
171.05 (6) (b) 19. dm. For taxable years beginning after December 31, 2020,
2reduce the amount calculated under subd. 19. b. or cm. to the person's aggregate
3wages, salary, tips, unearned income, and net earnings from a trade or business that
4are taxable by this state.
AB2-ASA3,34 5Section 34 . 71.05 (6) (b) 20., 36., 37., 39., 40. and 41. of the statutes are
6repealed.
AB2-ASA3,35 7Section 35 . 71.05 (6) (b) 54. of the statutes is created to read:
AB2-ASA3,19,138 71.05 (6) (b) 54. Except for a payment that is exempt under sub. (1) (a), (am),
9or (an), or that is exempt as a railroad retirement benefit, for taxable years beginning
10after December 31, 2020, up to $5,000 of payments or distributions received each
11year by an individual from a qualified retirement plan under the Internal Revenue
12Code or from an individual retirement account established under 26 USC 408, if all
13of the following conditions apply:
AB2-ASA3,19,1514 a. The individual is at least 65 years of age before the close of the taxable year
15to which the exemption claim relates.
AB2-ASA3,19,1816 b. If the individual is single or files as head of household, his or her federal
17adjusted gross income in the year to which the exemption claim relates is less than
18$15,000.
AB2-ASA3,19,2019 c. If the individual is married and is a joint filer, the couple's federal adjusted
20gross income in the year to which the exemption claim relates is less than $30,000.
AB2-ASA3,19,2321 d. If the individual is married and files a separate return, the sum of both
22spouses' federal adjusted gross income in the year to which the exemption claim
23relates is less than $30,000.
AB2-ASA3,36 24Section 36 . 71.07 (5) (a) 15. of the statutes is amended to read:
AB2-ASA3,20,6
171.07 (5) (a) 15. The amount claimed as a deduction for medical care insurance
2under section 213 of the Internal Revenue Code that is exempt from taxation under
3s. 71.05 (6) (b) 17. to 20. 19., 35., 36., 37., 38., 39., 40., 41., and 42. and the amount
4claimed as a deduction for a long-term care insurance policy under section 213 (d)
5(1) (D) of the Internal Revenue Code, as defined in section 7702B (b) of the Internal
6Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 26.
AB2-ASA3,37 7Section 37. 71.07 (9m) (h) of the statutes is amended to read:
AB2-ASA3,20,198 71.07 (9m) (h) Any person, including a nonprofit entity described in section 501
9(c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under
10par. (a) 2m. or 3., in whole or in part, to another person who is subject to the taxes
11imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
12transfer, and submits with the notification a copy of the transfer documents, and the
13department certifies ownership of the credit with each transfer. The transferor may
14file a claim for more than one taxable year on a form prescribed by the department
15to compute all years of the credit under par. (a) 2m. or 3., at the time of the transfer
16request. The transferee may first use the credit to offset tax in the taxable year of
17the transferor in which the transfer occurs and may use the credit only to offset tax
18in taxable years otherwise allowed to be claimed and carried forward by the original
19claimant.
AB2-ASA3,38 20Section 38 . 71.22 (4) (c), (d), (e), (f), (g), (h) and (i) of the statutes are repealed.
AB2-ASA3,39 21Section 39 . 71.22 (4) (j) 3. m. of the statutes is created to read:
AB2-ASA3,20,2322 71.22 (4) (j) 3. m. Sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of
23division U of P.L. 115-141.
AB2-ASA3,40 24Section 40 . 71.22 (4) (j) 3. n. of the statutes is created to read:
AB2-ASA3,21,2
171.22 (4) (j) 3. n. Section 102 of division M and sections 110, 111, and 116 (b)
2of division O of P.L. 116-94.
AB2-ASA3,41 3Section 41 . 71.22 (4) (k) 3. of the statutes is amended to read:
AB2-ASA3,21,94 71.22 (4) (k) 3. For purposes of this paragraph, “Internal Revenue Code" does
5not include amendments to the federal Internal Revenue Code enacted after
6December 31, 2016, except that “Internal Revenue Code” includes sections 11024,
711025, and 13543 of P.L. 115-97; sections 40307 and 40413 of P.L. 115-123, sections
8101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of 115-141; and section
9102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94
.
AB2-ASA3,42 10Section 42 . 71.22 (4) (L) 1. of the statutes is amended to read:
AB2-ASA3,21,1511 71.22 (4) (L) 1. For taxable years beginning after December 31, 2017, and
12before January 1, 2021,
“Internal Revenue Code" means the federal Internal
13Revenue Code as amended to December 31, 2017, except as provided in subds. 2. and
143. and subject to subd. 4., and except as provided in sub. (4m) and ss. 71.26 (2) (b) and
15(3), 71.34 (1g), 71.42 (2), and 71.98.