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4. Persons other than an account holder may contribute to an account created
18under subd. 1, but the subtraction under s. 71.05 (6) (b) 57. may be made only by the
19account holder.
SB70-AA1,563,2320
(c)
Account holder rights and responsibilities. 1. An account holder may
21withdraw funds from an account created under par. (b) 1. to pay eligible costs for the
22benefit of the beneficiary or to reimburse the beneficiary for eligible costs the
23beneficiary incurs and has paid.
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12. An account holder may not use funds in an account created under par. (b) 1.
2to pay any expenses he or she incurs in administering the account, although a
3financial institution may deduct a service fee from the account.
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3. Annually, an account holder shall submit to the department with his or her
5income tax return, on forms prepared by the department, information regarding the
6account created under par. (b) 1. The information submitted shall include all of the
7following:
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a. A list of transactions in the account during the taxable year to which the
9return relates, including the beginning and ending balances of the account.
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b. The 1099 form issued by the financial institution that relates to the account.
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c. A list of eligible costs, and other costs, for which funds from the account were
12withdrawn during the taxable year to which the return relates.
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4. An account holder may withdraw funds from an account created under par.
14(b) 1. with no penalty due under s. 71.83 (1) (ch) and no responsibility to make an
15addition under s. 71.05 (6) (a) 30. if he or she immediately transfers the funds to a
16different financial institution and deposits the funds into an account created under
17par. (b) 1. at that financial institution.
SB70-AA1,564,2018
(d)
Limitations on accounts, dissolution. 1. An account holder may not claim
19a subtraction under s. 71.05 (6) (b) 57. for more than a total of $50,000 of deposits into
20any account created under par. (b) 1. for each beneficiary.
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2. An account holder shall dissolve an account created under par. (b) 1. no later
22than 120 months after it is created. The financial institution shall distribute any
23funds in the account at dissolution to the account holder.
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13. If an account holder dies while funds remain in an account created under par.
2(b) 1., the account shall be dissolved and the financial institution shall distribute the
3funds to the account holder's estate.
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(e)
Department responsibilities. The department shall:
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1. Prepare and distribute any forms that an account holder is required to
6submit under par. (c) 3. and any other forms necessary to administer this subsection
7and the adjustments to income under s. 71.05 (6) (a) 30. and (b) 57.
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2. Prepare and distribute to financial institutions and potential home buyers
9informational materials about the accounts described in this subsection.
SB70-AA1,1237
10Section
1237. 71.83 (1) (ch) of the statutes is created to read:
SB70-AA1,565,1711
71.83
(1) (ch)
First-time home buyer savings account withdrawals. If an
12account holder, as defined under s. 71.10 (10) (a) 1., or an account holder's estate is
13required to add any amount to federal adjusted gross income under s. 71.05 (6) (a)
1430., the account holder or the account holder's estate shall also pay an amount equal
15to 10 percent of the amount that is added to income under s. 71.05 (6) (a) 30. The
16department of revenue shall assess, levy, and collect the penalty under this
17paragraph as it assesses, levies, and collects taxes under this chapter.
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(6s)
First-time home buyer savings account. The treatment of ss. 71.05 (6) (a)
2030. and (b) 57., 71.10 (4) (k) and (10), and 71.83 (1) (ch) first applies to taxable years
21beginning on January 1, 2023.”.
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23“
Section 1. 71.98 (1) (c) of the statutes is created to read:
SB70-AA1,566,2
171.98
(1) (c)
Consolidated Appropriations Act of 2023. For taxable years
2beginning after December 31, 2022, division T of P.L.
117-328.”.
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4“
Section
1238. 71.07 (8b) (a) 5. of the statutes is amended to read:
SB70-AA1,566,95
71.07
(8b) (a) 5. “Credit period” means the period of
6 10 taxable years
6beginning with the taxable year in which a qualified development is placed in
7service. For purposes of this subdivision, if a qualified development consists of more
8than one building, the qualified development is placed in service in the taxable year
9in which the last building of the qualified development is placed in service.
SB70-AA1,1239
10Section
1239. 71.07 (8b) (a) 7. of the statutes is amended to read:
SB70-AA1,566,2011
71.07
(8b) (a) 7. “Qualified development” means a qualified low-income
12housing project under section
42 (g) of the Internal Revenue Code that is financed
13with tax-exempt bonds
, pursuant to section 42 (i) (2) described in section 42 (h) (4)
14(A) of the Internal Revenue Code,
allocated the credit under section 42 of the Internal
15Revenue Code, and located in this state
; except that the authority may waive, in the
16qualified allocation plan under section 42 (m) (1) (B) of the Internal Revenue Code,
17the requirements of tax-exempt bond financing and federal credit allocation to the
18extent the authority anticipates that sufficient volume cap under section 146 of the
19Internal Revenue Code will not be available to finance low-income housing projects
20in any year.
SB70-AA1,1240
21Section
1240. 71.28 (8b) (a) 5. of the statutes is amended to read:
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71.28
(8b) (a) 5. “Credit period” means the period of
6 10 taxable years
23beginning with the taxable year in which a qualified development is placed in
24service. For purposes of this subdivision, if a qualified development consists of more
1than one building, the qualified development is placed in service in the taxable year
2in which the last building of the qualified development is placed in service.
SB70-AA1,1241
3Section
1241. 71.28 (8b) (a) 7. of the statutes is amended to read: