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:
AB68-SSA1,694,75
71.28
(3w) (a) 1. b. For a claimant whose award under s. 238.399 is certified
6after December 31, 2020, “base year” means the 12-month period prior to the date
7on which the claimant was certified under s. 238.399 (5).
AB68-SSA1,1363
8Section
1363. 71.28 (3w) (a) 6. of the statutes is renumbered 71.28 (3w) (a) 6.
9a. and amended to read:
AB68-SSA1,694,1310
71.28
(3w) (a) 6. a. “Zone payroll" means the amount of state payroll that is
11attributable to wages paid to full-time employees for services that are performed in
12an enterprise zone.
“Zone Except as provided in subd. 6. b., “zone payroll" does not
13include the amount of wages paid to any full-time employees that exceeds $100,000.
AB68-SSA1,1364
14Section
1364. 71.28 (3w) (a) 6. b. of the statutes is created to read:
AB68-SSA1,694,1715
71.28
(3w) (a) 6. b. For a claimant whose award under s. 238.399 is certified
16after December 31, 2020, “zone payroll" does not include the amount of wages paid
17to any full-time employees that exceeds $123,000.
AB68-SSA1,1365
18Section
1365. 71.28 (3w) (b) (intro.) of the statutes is amended to read:
AB68-SSA1,694,2319
71.28
(3w) (b)
Filing claims under pre-2022 award certifications; payroll. 20(intro.) Subject to the limitations provided in this subsection and s. 238.399 or s.
21560.799, 2009 stats., a claimant
whose award is certified prior to January 1, 2022, 22may claim as a credit against the tax imposed under s. 71.23 an amount calculated
23as follows:
AB68-SSA1,1366
24Section
1366. 71.28 (3w) (bd) of the statutes is created to read:
AB68-SSA1,695,4
171.28
(3w) (bd)
Filing claims under post-2021 award certifications; payroll. 2Subject to the limitations provided in this subsection and s. 238.399, a claimant
3whose award is certified after December 31, 2020, may claim as a credit against the
4tax imposed under s. 71.23 an amount calculated as follows:
AB68-SSA1,695,55
1. Determine the amount that is the lesser of:
AB68-SSA1,695,126
a. The number of full-time employees whose annual wages are greater than
7$27,900 in a tier I county or municipality or greater than $37,000 in a tier II county
8or municipality and who the claimant employed in the enterprise zone in the taxable
9year, minus the number of full-time employees whose annual wages were greater
10than $27,900 in a tier I county or municipality or greater than $37,000 in a tier II
11county or municipality and who the claimant employed in the area that comprises
12the enterprise zone in the base year.
AB68-SSA1,695,1813
b. The number of full-time employees whose annual wages are greater than
14$27,900 in a tier I county or municipality or greater than $37,000 in a tier II county
15or municipality and who the claimant employed in the state in the taxable year,
16minus the number of full-time employees whose annual wages were greater than
17$27,900 in a tier I county or municipality or greater than $37,000 in a tier II county
18or municipality and who the claimant employed in the state in the base year.