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.

SB45,669,19 b. 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 state 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 state in the base year.

SB45,670,4 2. Determine the claimant’s average zone payroll by dividing the total wages for 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 by 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.

SB45,670,7 3. For employees in a tier I county or municipality, subtract $34,220 from the amount determined under subd. 2. and for employees in a tier II county or municipality, subtract $45,390 from the amount determined under subd. 2.

SB45,670,9 4. Multiply the amount determined under subd. 3. by the amount determined under subd. 1.

SB45,670,11 5. Multiply the amount determined under subd. 4. by the percentage determined under s. 238.399, not to exceed 7 percent.

SB45,1269 Section 1269. 71.07 (3w) (bm) 1. of the statutes is amended to read:

SB45,670,23 71.07 (3w) (bm) 1. In addition to the credits under par. pars. (b) and (bd) and subds. 2., 3., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount equal to a percentage, as determined under s. 238.399 or s. 560.799, 2009 stats., not to exceed 100 percent, of the amount the claimant paid in the taxable year to upgrade or improve the job-related skills of any of the claimant’s full-time employees, to train any of the claimant’s full-time employees on the use of job-related new technologies, or to provide job-related training to any full-time employee whose employment with the claimant represents the employee’s first full-time job. This subdivision does not apply to employees who do not work in an enterprise zone.

SB45,1270 Section 1270. 71.07 (3w) (bm) 2. of the statutes is renumbered 71.07 (3w) (bm) 2. (intro.) and amended to read:

SB45,671,6 71.07 (3w) (bm) 2. (intro.) In addition to the credits under par. pars. (b) and (bd) and subds. 1., 3., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 one of the following amounts:

SB45,671,18 a. For a claimant whose contract is executed prior to January 1, 2026, an amount equal to the percentage, as determined under s. 238.399 or s. 560.799, 2009 stats., not to exceed 7 percent, of the claimant’s zone payroll paid in the taxable year to all of the claimant’s full-time employees whose annual wages are greater than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality, not including the wages paid to the employees determined under par. (b) 1., or greater than $30,000 in a tier II county or municipality, not including the wages paid to the employees determined under par. (b) 1., and who the claimant employed in the enterprise zone in the taxable year, if the total number of such employees is equal to or greater than the total number of such employees in the base year. A claimant may claim a credit under this subdivision for no more than 5 consecutive taxable years.

SB45,1271 Section 1271. 71.07 (3w) (bm) 2. b. of the statutes is created to read:

SB45,672,6 71.07 (3w) (bm) 2. b. For a claimant whose contract is executed after December 31, 2025, an amount equal to the percentage, as determined under s. 238.399, not to exceed 7 percent, of the claimant’s zone payroll paid in the taxable year to all of the claimant’s full-time employees whose annual wages are greater than $34,220 in a tier I county or municipality, not including the wages paid to the employees determined under par. (bd) 1., or greater than $45,390 in a tier II county or municipality, not including the wages paid to the employees determined under par. (bd) 1., and who the claimant employed in the enterprise zone in the taxable year, if the total number of such employees is equal to or greater than the total number of such employees in the base year.

SB45,1272 Section 1272. 71.07 (3w) (bm) 3. of the statutes is amended to read:

SB45,672,13 71.07 (3w) (bm) 3. In addition to the credits under par. pars. (b) and (bd) and subds. 1., 2., and 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 up to 10 percent of the claimant’s significant capital expenditures, as determined under s. 238.399 (5m) or s. 560.799 (5m), 2009 stats.

SB45,1273 Section 1273. 71.07 (3w) (bm) 4. of the statutes is amended to read: