LRB-3589/1
JK:jld:rs
2009 - 2010 LEGISLATURE
April 6, 2010 - Introduced by Representatives Tauchen, Ziegelbauer, Kestell,
Molepske Jr., Gunderson, Strachota, Spanbauer, Berceau, Brooks, Fields,
Kleefisch
and Nass, cosponsored by Senators Kedzie, Lassa, Taylor, Olsen
and Leibham. Referred to Committee on Agriculture.
AB936,1,5 1An Act to renumber and amend 71.01 (7r) (b), 71.01 (7r) (c), 71.22 (5m) (b),
271.26 (3) (y) 2., 71.34 (1m) (b) and 71.365 (1m) (b); and to create 71.01 (7r) (b)
32., 71.01 (7r) (c) 2., 71.22 (5m) (b) 2., 71.26 (3) (y) 2. b., 71.34 (1m) (b) 2. and
471.365 (1m) (b) 2. of the statutes; relating to: depreciation and expense
5deductions for property used in farming.
Analysis by the Legislative Reference Bureau
Under this bill, the sections of the federal Internal Revenue Code that apply to
amortization, depreciation, and expense deductions, and all subsequent changes to
those sections, apply for state income and franchise tax purposes to property used
in farming.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
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:
AB936, s. 1
1Section 1. 71.01 (7r) (b) of the statutes is renumbered 71.01 (7r) (b) 1. and
2amended to read:
AB936,2,123 71.01 (7r) (b) 1. Notwithstanding sub. (6), for property acquired and placed in
4service in taxable years beginning on or after December 31, 2005, and before January
51, 2006 2009, a person who is actively engaged in farming may compute amortization
6and depreciation on property used in farming under any subsequent change to
7section 101 of P.L. 107-147 or section 201 of P.L. 108-27 enacted after December 31,
82005. For purposes of this paragraph, "actively engaged in farming" has the meaning
9given in 7 CFR 1400.201, and "farming" has the meaning given in section 464 (e) (1)
10of the Internal Revenue Code. This paragraph subdivision does not apply unless a
11federal law change enacted after December 31, 2005, revises section 101 of P.L.
12107-147 or section 201 of P.L. 108-27.
AB936, s. 2 13Section 2. 71.01 (7r) (b) 2. of the statutes is created to read:
AB936,2,1814 71.01 (7r) (b) 2. Notwithstanding sub. (6), section 168 of the Internal Revenue
15Code, including any revision of that section adopted after December 31, 2000, applies
16to property used in farming that is acquired and placed in service in taxable years
17beginning on or after January 1, 2009, and used by a person who is actively engaged
18in farming.
AB936, s. 3 19Section 3. 71.01 (7r) (c) of the statutes is renumbered 71.01 (7r) (c) 1. and
20amended to read:
AB936,3,321 71.01 (7r) (c) 1. Notwithstanding sub. (6), section 101 of P.L. 109-222, related
22to extending the increased expense deduction under section 179 of the Internal
23Revenue Code, applies to property used in farming that is acquired and placed in
24service in taxable years beginning on or after December 31, 2007, and before January
251, 2008 2009, and used by a person who is actively engaged in farming. For purposes

1of this paragraph, "actively engaged in farming" has the meaning given in 7 CFR
21400.201
, and "farming" has the meaning given in section 464 (e) (1) of the Internal
3Revenue Code.
AB936, s. 4 4Section 4. 71.01 (7r) (c) 2. of the statutes is created to read:
AB936,3,95 71.01 (7r) (c) 2. Notwithstanding sub. (6), section 179 of the Internal Revenue
6Code, including any revision of that section adopted after December 31, 2000, applies
7to property used in farming that is acquired and placed in service in taxable years
8beginning on or after January 1, 2009, and used by a person who is actively engaged
9in farming.
AB936, s. 5 10Section 5. 71.22 (5m) (b) of the statutes is renumbered 71.22 (5m) (b) 1. and
11amended to read:
AB936,3,1912 71.22 (5m) (b) 1. Notwithstanding subs. (4) and (4m), section 101 of P.L.
13109-222, related to extending the increased expense deduction under section 179 of
14the Internal Revenue Code, applies to property used in farming that is acquired and
15placed in service in taxable years beginning on or after December 31, 2007, and
16before
January 1, 2008 2009, and used by a person who is actively engaged in
17farming. For purposes of this paragraph, "actively engaged in farming" has the
18meaning given in 7 CFR 1400.201, and "farming" has the meaning given in section
19464 (e) (1) of the Internal Revenue Code.
AB936, s. 6 20Section 6. 71.22 (5m) (b) 2. of the statutes is created to read:
AB936,3,2521 71.22 (5m) (b) 2. Notwithstanding subs. (4) and (4m), section 179 of the
22Internal Revenue Code, including any revision of that section adopted after
23December 31, 2000, applies to property used in farming that is acquired and placed
24in service in taxable years beginning on or after January 1, 2009, and used by a
25person who is actively engaged in farming.
AB936, s. 7
1Section 7. 71.26 (3) (y) 2. of the statutes is renumbered 71.26 (3) (y) 2. a. and
2amended to read:
AB936,4,123 71.26 (3) (y) 2. a. For property acquired and placed in service in taxable years
4beginning on or after December 31, 2005, and before January 1, 2006 2009, a
5corporation that is actively engaged in farming may compute amortization and
6depreciation on property used in farming under any subsequent change to section
7101 of P.L. 107-147 or section 201 of P.L. 108-27 enacted after December 31, 2005.
8For purposes of this subdivision, "actively engaged in farming" has the meaning
9given in 7 CFR 1400.201, and "farming" has the meaning given in section 464 (e) (1)
10of the Internal Revenue Code. This subdivision subd. 2. a. does not apply unless a
11federal law change enacted after December 31, 2005, revises section 101 of P.L.
12107-147 or section 201 of P.L. 108-27.
AB936, s. 8 13Section 8. 71.26 (3) (y) 2. b. of the statutes is created to read:
AB936,4,1714 71.26 (3) (y) 2. b. Section 168 of the Internal Revenue Code, including any
15revision of that section adopted after December 31, 2000, applies to property used in
16farming that is acquired and placed in service in taxable years beginning on or after
17January 1, 2009, and used by a person who is actively engaged in farming.
AB936, s. 9 18Section 9. 71.34 (1m) (b) of the statutes is renumbered 71.34 (1m) (b) 1. and
19amended to read:
AB936,5,220 71.34 (1m) (b) 1. Notwithstanding sub. (1g), section 101 of P.L. 109-222,
21related to extending the increased expense deduction under section 179 of the
22Internal Revenue Code, applies to property used in farming that is acquired and
23placed in service in taxable years beginning on or after December 31, 2007, and
24before
January 1, 2008 2009, and used by a person who is actively engaged in
25farming. For purposes of this paragraph, "actively engaged in farming" has the

1meaning given in 7 CFR 1400.201, and "farming" has the meaning given in section
2464 (e) (1) of the Internal Revenue Code.
AB936, s. 10 3Section 10. 71.34 (1m) (b) 2. of the statutes is created to read:
AB936,5,84 71.34 (1m) (b) 2. Notwithstanding sub. (1g), section 179 of the Internal
5Revenue Code, including any revision of that section adopted after December 31,
62000, applies to property used in farming that is acquired and placed in service in
7taxable years beginning on or after January 1, 2009, and used by a person who is
8actively engaged in farming.
AB936, s. 11 9Section 11. 71.365 (1m) (b) of the statutes is renumbered 71.365 (1m) (b) 1. and
10amended to read:
AB936,5,2011 71.365 (1m) (b) 1. For property acquired and placed in service in taxable years
12beginning on or after December 31, 2005, and before January 1, 2006 2009, a
13tax-option corporation that is actively engaged in farming may compute
14amortization and depreciation on property used in farming under any subsequent
15change to section 101 of P.L. 107-147 or section 201 of P.L. 108-27 enacted after
16December 31, 2005. For purposes of this paragraph, "actively engaged in farming"
17has the meaning given in 7 CFR 1400.201, and "farming" has the meaning given in
18section 464 (e) (1) of the Internal Revenue Code. This paragraph subdivision does
19not apply unless a federal law change enacted after December 31, 2005, revises
20section 101 of P.L. 107-147 or section 201 of P.L. 108-27.
AB936, s. 12 21Section 12. 71.365 (1m) (b) 2. of the statutes is created to read:
AB936,6,222 71.365 (1m) (b) 2. Section 168 of the Internal Revenue Code, including any
23revision of that section adopted after December 31, 2000, applies to property used in

1farming that is acquired and placed in service in taxable years beginning on or after
2January 1, 2009, and used by a person who is actively engaged in farming.
AB936,6,33 (End)
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