Phase-In of the Health Insurance Premium Deduction

The 2007-09 state budget created an individual income tax deduction for health insurance premiums paid by employees whose employer pays some portion of the employee’s health insurance costs.  The deduction began phasing in during the 2008 tax year. The 2009-11 … Continued

WMC’s 2013 Tax Policy Toolkit

The 2013-15 state budget includes significant tax policy reforms that will improve the business climate in Wisconsin, including tax relief amounting to nearly $986 million over two years. WMC has assembled the “Tax Policy Toolkit” to help navigate the changes … Continued

Extending the R&D Tax Credit to Pass-Through Entities

Under previous Wisconsin law, only C corporations were eligible to claim the federal research & development expense credit at the state level. The 2013-15 state budget changes that to allow pass-through entities like LLCs, S corporations, and partnerships to also … Continued

Federalizing Net Operating Loss Rules

The 2013-15 state budget adopts federal rules for net operating losses for individual income tax.  Beginning in 2014, net operating losses can be carried forward 20 years and carried back two years.  Previous state law allowed a 15-year carry-forward but … Continued

Municipal Fees Appeals Process

The 2013-15 state budget creates an appeals process by which a citizen may challenge an unreasonably high municipal fee in the state Tax Appeals Commission (TAC). By state law, a municipal fee must bear a reasonable relationship to the service … Continued

Phase-In of the Manufacturing & Agriculture Credit

Also known as the Manufacturers Tax Credit, the Manufacturing & Agriculture Credit (MAC) was established under the 2011-13 state budget with a phase-in period beginning in the 2013 tax year. The credit is designed to negate most state tax liability … Continued

Adopting an IRC Update

Prior to 2001, Wisconsin had automatically updated its state tax code to reflect changes made at the federal level, as many states do.  That year, the state “decoupled” from those automatic changes in an effort to help balance the state … Continued

Individual Income Tax Rate Reduction

Governor Walker’s initial 2013-15 budget released in February 2013 proposed lowering the bottom three individual income tax brackets by $343 million during the two-year period.  In early May, as the Legislature was considering the budget, tax revenues were re-estimated by … Continued

Federalizing Depreciation and Depletion

The 2013-15 state budget federalizes state rules pertaining to depreciation, Section 179 expensing, and depletion for property placed in service on or after January 1, 2014. For property placed in service before January 1, 2014, the difference in state and … Continued