SB45,664,1 1. On all taxable income from $0 to $5,000, 3.5 percent.

SB45,664,3 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 4.40 percent.

SB45,664,5 3. On all taxable income exceeding $10,000 but not exceeding $150,000, 5.3 percent.

SB45,664,7 4. On all taxable income exceeding $150,000 but not exceeding $500,000, 7.65 percent.

SB45,664,8 5. On all taxable income exceeding $500,000, 9.80 percent.

SB45,1259 Section 1259. 71.06 (2e) (a) of the statutes is amended to read:

SB45,665,7 71.06 (2e) (a) For taxable years beginning after December 31, 1998, and before January 1, 2000, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2) (c) and (d), and for taxable years beginning after December 31, 1999, and before January 1, 2025, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1n), (1p) (a) to (c), (1q) (a) and (b), and (2) (e), (f), (g) 1. to 3., (h) 1. to 3., (i) 1. and 2., and (j) 1. and 2., shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1997, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2000, and before January 1, 2002, the dollar amount in the top bracket under subs. (1p) (c) and (d), (2) (g) 3. and 4. and (h) 3. and 4. shall be increased by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1999, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2011, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

SB45,1260 Section 1260. 71.06 (2e) (b) of the statutes is amended to read:

SB45,665,20 71.06 (2e) (b) For taxable years beginning after December 31, 2009, and before January 1, 2025, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1p) (d), (1q) (c), and (2) (g) 4., (h) 4., (i) 3., and (j) 3., and the dollar amount in the top bracket under subs. (1p) (e), (1q) (d), and (2) (g) 5., (h) 5., (i) 4., and (j) 4., shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2008, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2011, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

SB45,1261 Section 1261. 71.06 (2e) (bg) of the statutes is created to read:

SB45,666,10 71.06 (2e) (bg) 1. For taxable years beginning after December 31, 2024, the maximum dollar amount in each tax bracket under subs. (1r) (a) and (b) and (2) (k) 1. and 2. and (L) 1. and 2., and the corresponding minimum dollar amount in the next tax bracket under subs. (1r) (b) and (c) and (2) (k) 2. and 3. and (L) 2. and 3. shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1997, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2024, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

SB45,666,20 2. For taxable years beginning after December 31, 2024, the maximum dollar amount in each tax bracket under subs. (1r) (c) and (2) (k) 3. and (L) 3., and the corresponding minimum dollar amount in the next tax bracket under subs. (1r) (d) and (2) (k) 4. and (L) 4. shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2008, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

SB45,667,7 3. For taxable years beginning after December 31, 2025, the maximum dollar amount in the tax bracket under subs. (1r) (d) and (2) (k) 4. and (L) 4. and the corresponding dollar amount in the top bracket under subs. (1r) (e) and (2) (k) 5. and (L) 5. shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2024, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

SB45,1262 Section 1262. 71.06 (2m) of the statutes is amended to read:

SB45,667,12 71.06 (2m) Rate changes. If a rate under sub. (1), (1m), (1n), (1p), (1q), (1r), or (2) changes during a taxable year, the taxpayer shall compute the tax for that taxable year by the methods applicable to the federal income tax under section 15 of the Internal Revenue Code.

SB45,1263 Section 1263. 71.06 (2s) (d) of the statutes is amended to read:

SB45,668,4 71.06 (2s) (d) For taxable years beginning after December 31, 2000, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1p), (1q), (1r), and (2) (g), (h), (i), and (j), (k), and (L) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately “adjusted gross income” means the separate adjusted gross income of each spouse, and for married persons filing jointly “adjusted gross income” means the total adjusted gross income of both spouses. If an individual and that individual’s spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1p), (1q), (1r), and (2) (g), (h), (i), and (j), (k), and (L) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

SB45,1264 Section 1264. 71.07 (3w) (a) 2m. of the statutes is created to read:

SB45,668,7 71.07 (3w) (a) 2m. “Contract” means the contract between the claimant and the Wisconsin Economic Development Corporation under s. 238.399.

SB45,1265 Section 1265. 71.07 (3w) (a) 6. of the statutes is renumbered 71.07 (3w) (a) 6. a. and amended to read:

SB45,668,13 71.07 (3w) (a) 6. a. “Zone payroll” means the amount of state payroll that is attributable to wages paid to full-time employees based in an enterprise zone. “Zone Except as provided in subd. 6. b., “zone payroll” does not include the amount of wages paid to any full-time employees that exceeds $100,000.

SB45,1266 Section 1266. 71.07 (3w) (a) 6. b. of the statutes is created to read:

SB45,668,17 71.07 (3w) (a) 6. b. For a claimant whose contract is executed after December 31, 2025, “zone payroll” does not include the amount of wages paid to any full-time employees that exceeds $151,300.

SB45,1267 Section 1267. 71.07 (3w) (b) (intro.) of the statutes is amended to read:

SB45,668,23 71.07 (3w) (b) Filing claims under pre-2026 contracts; payroll. (intro.) Subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant whose contract is executed prior to January 1, 2026, may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount calculated as follows:

SB45,1268 Section 1268. 71.07 (3w) (bd) of the statutes is created to read:

SB45,669,5 71.07 (3w) (bd) Filing claims under post-2025 contracts; payroll. Subject to the limitations provided in this subsection and s. 238.399, a claimant whose contract is executed after December 31, 2025, may claim as a credit against the tax imposed under s. 71.02 an amount calculated as follows:

SB45,669,6 1. Determine the amount that is the lesser of:

SB45,669,13 a. The number of full-time employees whose annual wages are greater than $34,220 in a tier I county or municipality or greater than $45,390 in a tier II county or municipality and who the claimant employed in the enterprise zone in the taxable year, minus the number of full-time employees whose annual wages were greater than $34,220 in a tier I county or municipality or greater than $45,390 in a tier II county or municipality and who the claimant employed in the area that comprises the enterprise zone in the base year.