The biennial Wisconsin budget bill, signed on July 12th, makes numerous personal income and corporation franchise and income tax changes. Here is an overview of notable changes:
- Standard Deduction: The legislation increases the standard deduction for married filers.
- Educators’ Classroom Expenses: The legislation conforms Wisconsin to the federal deduction for teachers’ purchases of school supplies, beginning with tax year 2015.
- ABLE Accounts: The legislation provides for ABLE (Achieving a Better Life Experience) accounts. Amounts deposited into ABLE accounts are not subject to Wisconsin personal income tax.
- Business Development Tax Credit: The legislation sunsets the economic development tax credit and the jobs tax credit and creates a business development tax credit for taxable years beginning after December 31, 2015. (The new credit amount is based on certain wages, training costs and real and personal property investments.)
- Manufacturing and Agriculture Credit: The legislation reduces the manufacturing and agriculture credit percentage for tax year 2015. However, the percentage is allowed to increase in 2016.
- Job Creation Deduction: The legislation repeals the job creation deduction, beginning with tax year 2015.
- Alternative Minimum Tax: Beginning with tax year 2017, the legislation conforms the Wisconsin alternative minimum tax to the federal treatment of exemption amounts and phase-out provisions.
- Sales and Use Tax Definitions: The legislation modifies definitions relating to retailers doing business in Wisconsin.
Please contact any member of Somerset’s SALT team should you wish to discuss how these changes will affect your situation.