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AB884: Bill Text
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2025 - 2026 LEGISLATURE
LRB-6026/1
JK&MPG:klm
2025 ASSEMBLY BILL 884
January 16, 2026 - Introduced by Representatives
Kaufert
and
Bare
, cosponsored by Senators
Testin
and
Pfaff
. Referred to Committee on Ways and Means.
AB884,1,8
1
An Act
to renumber and amend
71.05 (6) (b) 54mn.;
to amend
16.705 (1s),
2
41.152 (1), 71.05 (6) (b) 54. (intro.), 71.05 (6) (b) 54m. a., 71.05 (6) (b) 54m. b.,
3
71.05 (6) (b) 54m. c., 71.05 (6) (b) 54m. d., 71.07 (5f) (a) 4., 71.07 (5f) (c) 2.,
4
71.07 (5f) (d) 3., 71.07 (5h) (d) 2., 71.28 (5f) (a) 4., 71.28 (5f) (c) 2., 71.28 (5f) (d)
5
3., 71.28 (5h) (d) 2., 71.47 (5f) (a) 4., 71.47 (5f) (c) 2., 71.47 (5f) (d) 3., 71.47 (5h)
6
(d) 2. and 71.83 (1) (a) 6. of the statutes;
relating to:
who may purchase
7
certain contractual services and technical changes to tax provisions related to
8
qualified retirement plans and the film production services credit.
Analysis by the Legislative Reference Bureau
Taxation
Retirement
Current law allows an individual to claim an income tax subtraction for the amount of the payments or distributions received each year from a qualified retirement plan or from an individual retirement account. The amount may not exceed $24,000 in any taxable year for an individual taxpayer or $48,000 in a taxable year for spouses filing a joint return. An individual or couple who claims the subtraction for a taxable year may not claim any state income tax credit under current law for that same taxable year. Under the bill, in addition to being prohibited from claiming any state income tax credit for the taxable year, the individual or couple may not claim the unused amount of any such credit in a subsequent taxable year. The bill also makes technical changes to the subtraction.
Film production tax credit
Under current law, a film production company may claim an income and franchise tax credit equal to 30 percent of the salary or wages paid to its employees in this state for services rendered to produce a film, video, broadcast advertisement, or television production in this state. The total amount of the credit may not exceed the first $250,000 of salary or wages paid to each of the claimant’s employees in the taxable year. However, if the claimant’s budgeted production expenditures for that year are $1,000,000 or more, the salaries or wages paid to the claimant’s two highest-paid employees may not be used to claim the credit. Under the bill, a claimant may not use the salary or wages paid to the claimant’s two highest-paid employees in the taxable year to claim the credit if the claimant
actual
production expenditures for that year are $1,000,000 or more. The bill also makes technical changes to the the film production credit and the film production company investment credit.
Purchasing
Under current law, if contractual services are purchased by the Department of Administration or an agent of DOA—typically another state agency—that would require an individual performing the services to have access to federal tax information received directly from the federal Internal Revenue Service or from a source that is authorized by the IRS, a background check must be performed on each individual performing the services. Under the bill, the Department of Revenue may be an agent of DOA for the purchase of such contractual services.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
AB884,1
1
Section
1
.
16.705 (1s) of the statutes is amended to read:
AB884,3,7
2
16.705
(1s)
If contractual services are purchased by the department or its
3
agent that would require an individual performing the services to have access to
4
federal tax information received directly from the federal Internal Revenue Service
5
or from a source that is authorized by the federal Internal Revenue Service, a
6
background check shall be performed on each individual performing the services.
7
The background investigation may include requiring the individual to be
1
fingerprinted on 2 fingerprint cards each bearing a complete set of the individual’s
2
fingerprints, or by other technologies approved by law enforcement agencies. The
3
department of justice shall submit any such fingerprint cards to the federal bureau
4
of investigation for the purposes of verifying the identity of the individual
5
fingerprinted and obtaining records of his or her criminal arrests and convictions.
6
The department of revenue may be an agent of the department for the purchase of
7
contractual services under this subsection.
AB884,2
8
Section
2
.
41.152 (1) of the statutes, as affected by
2025 Wisconsin Act 15
, is
9
amended to read:
AB884,3,14
10
41.152
(1)
The state film office shall implement a program to accredit
11
productions and certify expenses for purposes of ss. 71.07 (5f) and (5h), 71.28 (5f)
12
and (5h), and 71.47 (5f) and (5h). Application for accreditation or certification shall
13
be made to the office
in
for
each taxable year for which accreditation or certification
14
is desired.
AB884,3
15
Section
3
.
71.05 (6) (b) 54. (intro.) of the statutes, as affected by
2025
16
Wisconsin Act 15
, is amended to read:
AB884,3,23
17
71.05
(6)
(b) 54. (intro.) Except for a payment that is exempt under sub. (1) (a),
18
(am), or (an), or that is exempt as a railroad retirement benefit, and except as
19
provided under
subds.
subd.
54m.
and 54mn.
, for taxable years beginning after
20
December 31, 2020, up to $5,000 of payments or distributions received each year by
21
an individual from a qualified retirement plan under the Internal Revenue Code or
22
from an individual retirement account established under
26 USC 408
section
408
of
23
the Internal Revenue Code
, if all of the following conditions apply:
AB884,4
1
Section
4
.
71.05 (6) (b) 54m. a. of the statutes, as affected by 2025 Wisconsin
2
Act 15, is amended to read:
AB884,4,10
3
71.05
(6)
(b) 54m. a. Except for a payment that is exempt under sub. (1) (a),
4
(am), or (an), or that is exempt as a railroad retirement benefit, and
except as
5
provided under subd. 54mn.
subject to the limitations under subd. 54m. b., c., d.,
6
and e.
, for taxable years beginning after December 31, 2024, the amount
, up to the
7
limit specified in subd. 54m. b. or c., whichever is applicable,
of the payments or
8
distributions received
by an individual
each year from a qualified retirement plan
9
under the Internal Revenue Code or from an individual retirement account
10
established under
26 USC 408
section
408
of the Internal Revenue Code
.
AB884,5
11
Section
5
.
71.05 (6) (b) 54m. b. of the statutes is amended to read:
AB884,4,15
12
71.05
(6)
(b) 54m. b. If the individual is at least 67 years of age before the close
13
of the taxable year to which the subtraction relates, the
amount claimed by the
14
individual
may claim the subtraction
under this subdivision
may not exceed
15
$24,000 for that taxable year
.
AB884,6
16
Section
6
.
71.05 (6) (b) 54m. c. of the statutes is amended to read:
AB884,4,23
17
71.05
(6)
(b) 54m. c.
If
An individual described under subd. 54m. b. may claim
18
the subtraction under this subdivision in an amount not to exceed $24,000 for the
19
taxable year, except that if
the individual is married and is a joint filer, and both
20
spouses are at least 67 years of age before the close of the taxable year to which the
21
subtraction relates, the total amount claimed by
the
both
spouses under this
22
subdivision may not exceed $48,000 for that taxable year
, regardless of the amount
23
of the payment or distribution received by each spouse
.
AB884,7
1
Section
7
.
71.05 (6) (b) 54m. d. of the statutes, as affected by 2025 Wisconsin
2
Act 15, is amended to read:
AB884,5,5
3
71.05
(6)
(b) 54m. d. An individual who claims the subtraction under this
4
subdivision for a taxable year may not claim any credit
, including any eligible
5
carryover of such credit,
listed under s.
71.10 (4)
71.07
for the same taxable year.
AB884,8
6
Section
8
.
71.05 (6) (b) 54mn. of the statutes, as affected by 2025 Wisconsin
7
Act 15, is renumbered 71.05 (6) (b) 54m. e. and amended to read:
AB884,5,18
8
71.05
(6)
(b) 54m. e. For
taxable years beginning after December 31, 2024, for
9
an individual who is a part-year resident of this state,
the subtraction under this
10
subdivision for the taxable year may not exceed
the amount that is calculated by
11
multiplying
the applicable amount under subd. 54m. b. or c.
$24,000
by a fraction
12
the numerator of which is the individual’s wages, salary, tips, unearned income,
13
and net earnings from a trade or business that are taxable by this state and the
14
denominator of which is the individual’s total wages, salary, tips, unearned income,
15
and net earnings from a trade or business. A nonresident of this state is not eligible
16
to claim the subtraction under
subd. 54m. An individual who claims the
17
subtraction under this subdivision for a taxable year may not claim any credit listed
18
under s. 71.10 (4) for the same taxable year
this subdivision
.
AB884,9
19
Section
9
.
71.07 (5f) (a) 4. of the statutes, as affected by
2025 Wisconsin Act
20
15
, is amended to read:
AB884,6,13
21
71.07
(5f)
(a) 4. “Production expenditures” means
salaries, wages, or
any
22
other
expenditures that are incurred in this state and directly used to produce an
23
accredited production, including expenditures for writing, budgeting, casting,
24
location scouts, set construction and operation, wardrobes, makeup, clothing
1
accessories, photography, sound recording, sound synchronization, sound mixing,
2
lighting, editing, film processing, film transferring, special effects, visual effects,
3
renting or leasing facilities or equipment, renting or leasing motor vehicles, food,
4
lodging, and any other similar pre-production, production, and post-production
5
expenditure as determined by the state film office. “Production expenditures”
6
includes expenditures for music that is performed, composed, or recorded by a
7
musician who is a resident of this state or published or distributed by an entity that
8
has its commercial domicile in this state; air travel that is purchased from a travel
9
agency or company that has its commercial domicile in this state; and insurance
10
that is purchased from an insurance agency or company that has its commercial
11
domicile in this state. “Production expenditures” does not include
salary or
12
salaries,
wages
,
or
any other
expenditures for the marketing and distribution of an
13
accredited production.
AB884,10
14
Section
10
.
71.07 (5f) (c) 2. of the statutes, as affected by
2025 Wisconsin Act
15
15
, is amended to read:
AB884,6,24
16
71.07
(5f)
(c) 2.
The total amount of the credits that may be claimed by a
17
claimant under par. (b) 1. shall not exceed an amount equal to
Only
the first
18
$250,000 of salary or wages paid to each of the claimant’s employees, as described in
19
par. (b) 1., in the taxable year
, not including the salary or wages paid to the
20
claimant’s 2 highest-paid employees, as described in par. (b) 1., in the taxable year,
21
if
may be used to claim a credit under par. (b) 1. If
the claimant’s
budgeted
22
production expenditures
for the taxable year
are $1,000,000 or more
, the salaries or
23
wages paid to the claimant’s 2 highest-paid employees in the taxable year may not
24
be used to claim the credit
.
AB884,11
1
Section
11
.
71.07 (5f) (d) 3. of the statutes, as affected by
2025 Wisconsin Act
2
1
5, is amended to read:
AB884,7,12
3
71.07
(5f)
(d) 3. Any person, including a nonprofit entity described in section
4
501
(c) (3) of the Internal Revenue Code, may sell or otherwise transfer a credit
5
under par. (b) 1. or 3., in whole or in part, to another person who is subject to the
6
taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department
7
of the transfer, and submits with the notification a copy of the transfer documents,
8
and the department certifies ownership of the credit. The transferee may first use
9
the credit to offset tax
of the transferor
in the taxable year
of the transferor
in which
10
the transfer occurs and may use the credit only to offset tax in taxable years in
11
which the credit is otherwise allowed to be claimed and carried forward by the
12
original claimant.
AB884,12
13
Section
12
.
71.07 (5h) (d) 2. of the statutes, as affected by 2025 Wisconsin
14
Act 15, is amended to read:
AB884,7,24
15
71.07
(5h)
(d) 2. Any person, including a nonprofit entity described in section
16
501
(c) (3) of the Internal Revenue Code, may sell or otherwise transfer a credit
17
under this subsection, in whole or in part, to another person who is subject to the
18
taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department
19
of the transfer, and submits with the notification a copy of the transfer documents,
20
and the department certifies ownership of the credit. The transferee may first use
21
the credit to offset tax
of the transferor
in the taxable year
of the transferor
in which
22
the transfer occurs and may use the credit only to offset tax in taxable years in
23
which the credit is otherwise allowed to be claimed and carried forward by the
24
original claimant.
AB884,13
1
Section
13
.
71.28 (5f) (a) 4. of the statutes, as affected by
2025 Wisconsin Act
2
1
5, is amended to read:
AB884,8,19
3
71.28
(5f)
(a) 4. “Production expenditures” means
salaries, wages, or
any
4
other
expenditures that are incurred in this state and directly used to produce an
5
accredited production, including expenditures for writing, budgeting, casting,
6
location scouts, set construction and operation, wardrobes, makeup, clothing
7
accessories, photography, sound recording, sound synchronization, sound mixing,
8
lighting, editing, film processing, film transferring, special effects, visual effects,
9
renting or leasing facilities or equipment, renting or leasing motor vehicles, food,
10
lodging, and any other similar pre-production, production, and post-production
11
expenditure as determined by the state film office. “Production expenditures”
12
includes expenditures for music that is performed, composed, or recorded by a
13
musician who is a resident of this state or published or distributed by an entity that
14
has its commercial domicile in this state; air travel that is purchased from a travel
15
agency or company that has its commercial domicile in this state; and insurance
16
that is purchased from an insurance agency or company that has its commercial
17
domicile in this state. “Production expenditures” does not include
salary or
18
salaries,
wages
,
or
any other
expenditures for the marketing and distribution of an
19
accredited production.
AB884,14
20
Section
14
.
71.28 (5f) (c) 2. of the statutes, as affected by
2025 Wisconsin Act
21
15
, is amended to read:
AB884,9,6
22
71.28
(5f)
(c) 2.
The total amount of the credits that may be claimed by a
23
claimant under par. (b) 1. shall not exceed an amount equal to
Only
the first
24
$250,000 of salary or wages paid to each of the claimant’s employees, as described in
1
par. (b) 1., in the taxable year
, not including the salary or wages paid to the
2
claimant’s 2 highest-paid employees, as described in par. (b) 1., in the taxable year,
3
if
may be used to claim a credit under par. (b) 1. If
the claimant’s
budgeted
4
production expenditures
for the taxable year
are $1,000,000 or more
, the salaries or
5
wages paid to the claimant’s 2 highest-paid employees in the taxable year may not
6
be used to claim the credit
.
AB884,15
7
Section
15
.
71.28 (5f) (d) 3. of the statutes, as affected by
2025 Wisconsin Act
8
15
, is amended to read:
AB884,9,18
9
71.28
(5f)
(d) 3. Any person, including a nonprofit entity described in section
10
501
(c) (3) of the Internal Revenue Code, may sell or otherwise transfer a credit
11
under par. (b) 1. or 3., in whole or in part, to another person who is subject to the
12
taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department
13
of the transfer, and submits with the notification a copy of the transfer documents,
14
and the department certifies ownership of the credit. The transferee may first use
15
the credit to offset tax
of the transferor
in the taxable year
of the transferor
in which
16
the transfer occurs and may use the credit only to offset tax in taxable years in
17
which the credit is otherwise allowed to be claimed and carried forward by the
18
original claimant.
AB884,16
19
Section
16
.
71.28 (5h) (d) 2. of the statutes, as affected by 2015 Wisconsin
20
Act 15, is amended to read:
AB884,9,24
21
71.28
(5h)
(d) 2. Any person, including a nonprofit entity described in section
22
501
(c) (3) of the Internal Revenue Code, may sell or otherwise transfer a credit
23
under this subsection, in whole or in part, to another person who is subject to the
24
taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department
1
of the transfer, and submits with the notification a copy of the transfer documents,
2
and the department certifies ownership of the credit. The transferee may first use
3
the credit to offset tax
of the transferor
in the taxable year
of the transferor
in which
4
the transfer occurs and may use the credit only to offset tax in taxable years in
5
which the credit is otherwise allowed to be claimed and carried forward by the
6
original claimant.
AB884,17
7
Section
17
.
71.47 (5f) (a) 4. of the statutes, as affected by
2025 Wisconsin Act
8
15
, is amended to read:
AB884,11,2
9
71.47
(5f)
(a) 4. “Production expenditures” means
salaries, wages, or
any
10
other
expenditures that are incurred in this state and directly used to produce an
11
accredited production, including expenditures for writing, budgeting, casting,
12
location scouts, set construction and operation, wardrobes, makeup, clothing
13
accessories, photography, sound recording, sound synchronization, sound mixing,
14
lighting, editing, film processing, film transferring, special effects, visual effects,
15
renting or leasing facilities or equipment, renting or leasing motor vehicles, food,
16
lodging, and any other similar pre-production, production, and post-production
17
expenditure as determined by the state film office. “Production expenditures”
18
includes expenditures for music that is performed, composed, or recorded by a
19
musician who is a resident of this state or published or distributed by an entity that
20
has its commercial domicile in this state; air travel that is purchased from a travel
21
agency or company that has its commercial domicile in this state; and insurance
22
that is purchased from an insurance agency or company that has its commercial
23
domicile in this state. “Production expenditures” does not include
salary or
1
salaries,
wages
,
or
any other
expenditures for the marketing and distribution of an
2
accredited production.
AB884,18
3
Section
18
.
71.47 (5f) (c) 2. of the statutes, as affected by
2025 Wisconsin Act
4
15
, is amended to read:
AB884,11,13
5
71.47
(5f)
(c) 2.
The total amount of the credits that may be claimed by a
6
claimant under par. (b) 1. shall not exceed an amount equal to
Only
the first
7
$250,000 of salary or wages paid to each of the claimant’s employees, as described in
8
par. (b) 1., in the taxable year
, not including the salary or wages paid to the
9
claimant’s 2 highest-paid employees, as described in par. (b) 1., in the taxable year,
10
if
may be used to claim a credit under par. (b) 1. If
the claimant’s
budgeted
11
production expenditures are $1,000,000 or more
, the salaries or wages paid to the
12
claimant’s 2 highest-paid employees in the taxable year may not be used to claim
13
the credit
.
AB884,19
14
Section
19
.
71.47 (5f) (d) 3. of the statutes, as affected by
2025 Wisconsin Act
15
15
, is amended to read:
AB884,12,2
16
71.47
(5f)
(d) 3. Any person, including a nonprofit entity described in section
17
501
(c) (3) of the Internal Revenue Code, may sell or otherwise transfer a credit
18
under par. (b) 1. or 3., in whole or in part, to another person who is subject to the
19
taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department
20
of the transfer, and submits with the notification a copy of the transfer documents,
21
and the department certifies ownership of the credit. The transferee may first use
22
the credit to offset tax
of the transferor
in the taxable year
of the transferor
in which
23
the transfer occurs and may use the credit only to offset tax in taxable years in
1
which the credit is otherwise allowed to be claimed and carried forward by the
2
original claimant.
AB884,20
3
Section
20
.
71.47 (5h) (d) 2. of the statutes, as affected by 2025 Wisconsin
4
Act 15, is amended to read:
AB884,12,14
5
71.47
(5h)
(d) 2. Any person, including a nonprofit entity described in section
6
501
(c) (3) of the Internal Revenue Code, may sell or otherwise transfer a credit
7
under this subsection, in whole or in part, to another person who is subject to the
8
taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department
9
of the transfer, and submits with the notification a copy of the transfer documents,
10
and the department certifies ownership of the credit. The transferee may first use
11
the credit to offset tax
of the transferor
in the taxable year
of the transferor
in which
12
the transfer occurs and may use the credit only to offset tax in taxable years in
13
which the credit is otherwise allowed to be claimed and carried forward by the
14
original claimant.
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