19-1929_P3

LRB-1929/P3

JK:amn/wlj/cjs

2019 - 2020 LEGISLATURE

DOA:......Quinn, BB0322 - Deduction for expenses for moving out-of-state or out of the U.S.

For 2019-2021 Budget -- Not Ready For Introduction

An Act ...; relating to: the budget.

Analysis by the Legislative Reference Bureau

taxation

Income taxation

1. Moving expense deduction

Under current law, a business may deduct from its income or franchise tax liability all expenses that the business paid to move its operations from one location to another, including expenses paid to relocate outside the state. Under this bill, a business may not deduct expenses paid to move outside the state or outside the United States.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

Section 1 . 71.01 (8j) of the statutes is created to read:

71.01 (8j) For purposes of ss. 71.05 (6) (a) 30., 71.21 (7), 71.26 (3) (e) 4., 71.34 (1k) (o), and 71.45 (2) (a) 20., “moving expenses” means expenses incurred to move the operation of a business, including all of the following:

(a) Vehicle rentals.

(b) Storage rentals.

(c) Moving company expenses for packing, unpacking, and transportation.

(d) Consulting fees and surveys.

(e) Brokerage commissions or fees.

(f) Architecture, design, and remodeling expenses.

(g) Expenses paid or incurred to sell property in this state.

(h) Loss on the sale of property in this state.

(i) Lease cancellation fees.

(j) Expenses paid or incurred for professional services, including legal services.

(k) Utility fees.

(L) Employee wages.

(m) Reimbursement of an employee's expenses.

(n) The cost of meals, lodging, and fuel.

(o) Mileage deductions for vehicle use.

Section 2. 71.05 (6) (a) 30. of the statutes is created to read:

71.05 (6) (a) 30. The amount deducted under the Internal Revenue Code as moving expenses, as defined in s. 71.01 (8j), paid or incurred during the taxable year to move the taxpayer's Wisconsin business operation, in whole or in part, to a location outside the state or to move the taxpayer's business operation outside the United States.

****Note: This is reconciled s. 71.05 (6) (a) 30. This section has been affected by drafts with the following LRB numbers: -1929/p1 and -1898/p3.

Section 3. 71.21 (7) of the statutes is created to read:

71.21 (7) A deduction under the Internal Revenue Code for moving expenses, as defined in s. 71.01 (8j), paid or incurred during the taxable year to move the taxpayer's Wisconsin business operation, in whole or in part, to a location outside the state or to move the taxpayer's business operation outside the United States is not allowed.

Section 4. 71.26 (3) (e) 4. of the statutes is created to read:

71.26 (3) (e) 4. So that moving expenses, as defined in s. 71.01 (8j), paid or incurred during the taxable year to move the taxpayer's Wisconsin business operation, in whole or in part, to a location outside the state or to move the taxpayer's business operation outside the United States may not be deducted as provided under the Internal Revenue Code.

Section 5. 71.34 (1k) (o) of the statutes is created to read:

71.34 (1k) (o) An addition shall be made for any amount deducted under the Internal Revenue Code as moving expenses, as defined in s. 71.01 (8j), paid or incurred during the taxable year to move the taxpayer's Wisconsin business operation, in whole or in part, to a location outside the state or to move the taxpayer's business operation outside the United States.

Section 6. 71.45 (2) (a) 20. of the statutes is created to read:

71.45 (2) (a) 20. By adding to federal taxable income any amount deducted under the Internal Revenue Code as moving expenses, as defined in s. 71.01 (8j), paid or incurred during the taxable year to move the taxpayer's Wisconsin business operation, in whole or in part, to a location outside the state or to move the taxpayer's business operation outside the United States.

Section 9337. Initial applicability; Revenue.

(1) Moving expenses deduction. The treatment of ss. 71.01 (8j), 71.05 (6) (a) 30., 71.21 (7), 71.26 (3) (e) 4., 71.34 (1k) (o), and 71.45 (2) (a) 20. first applies to taxable years beginning on January 1, 2019.

(End)