Signed by Governor Tony Evers

Vote Smart's Synopsis:

Vote to concur with house amendments and pass a bill that increases tax incentives for investors putting their capital gains in the Wisconsin-based opportunity fund.

Highlights:

• Defines “Wisconsin qualified opportunity fund” as a qualified opportunity fund that holds at least 90 percent of its assets in Wisconsin qualified opportunity zone property, as measured on the last day of the first 6−month period of the fund’s taxable year and the last day of the fund’s taxable year (Sec. 3-2).

• Authorizes a Wisconsin net operating loss to be carried back against Wisconsin taxable income of the previous 2 years and then carried forward against Wisconsin taxable incomes of the next 20 taxable years, if the taxpayer was subject to taxation in the taxable year in which the loss was incurred, to the extent not offset against other income of the year of loss and to the extent not offset against Wisconsin modified taxable income of the 2 years preceding the loss and of any year between the loss year and the taxable year for which the loss carryforward is claimed (Sec. 2-1).

• Prohibits an individual partner, member, or shareholder from making a subtraction if the entity of which the individual is a partner, member, or shareholder makes a subtraction when computing net income or makes a subtraction when computing net income (Sec. 3.e).

• Requires a fund to annually certify to each investor and the department that it qualifies as a Wisconsin qualified opportunity fund for the fund’s taxable year that no later than January 31 of the year following the close of the fund’s taxable year, (Sec. 4-2).

• Amends statutes for taxable years beginning after December 31, 2019, by subtracting from federal taxable income an amount equal to the gain excluded from federal gross income in the taxable year for an investment held in a Wisconsin qualified opportunity fund for at least 5 years oror an investment held in a Wisconsin qualified opportunity fund for at least 7 years (Sec. 6.a).

• Establishes a Wisconsin qualified opportunity fund that is liable for a penalty under the Internal Revenue Code and is liable for a penalty equal to 33 percent of the federal penalty and specifies the department shall assess, levy, and collect the penalty under this paragraph in the same manner as it assesses, levies, and collects taxes under this chapter (Sec. 7).

Full Bill Text