AB637, s. 24 5Section 24. 71.255 (6) (a) of the statutes, as affected by 2011 Wisconsin Act 32,
6is amended to read:
AB637,11,157 71.255 (6) (a) Except as provided in pars. (b), (bm), and (c) no tax credit,
8Wisconsin net business loss carry-forward, or other post-apportionment deduction
9earned by one member of the combined group, but not fully used by or allowed to that
10member, may be used in whole or in part by another member of the combined group
11or applied in whole or in part against the total income of the combined group. A
12member of a combined group may use a carry-forward of a credit, Wisconsin net
13business loss carry-forward, or other post-apportionment deduction otherwise
14allowable under s. 71.26 or 71.45, that was incurred by that same member in a
15taxable year beginning before January 1, 2009.
AB637, s. 25 16Section 25. 71.255 (6) (bm) of the statutes, as created by 2011 Wisconsin Act
1732
, is repealed.
AB637, s. 26 18Section 26. 71.26 (2) (a) 4. of the statutes, as affected by 2011 Wisconsin Act
1932
, is amended to read:
AB637,12,220 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
21(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r),
22(3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (8r), and
23(9s) and not passed through by a partnership, limited liability company, or
24tax-option corporation that has added that amount to the partnership's, limited

1liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k)
2(g).
AB637, s. 27 3Section 27. 71.26 (4) (a) of the statutes, as affected by 2011 Wisconsin Act 32,
4is renumbered 71.26 (4) and amended to read:
AB637,12,215 71.26 (4) Except as provided in par. (b), a A corporation, except a tax-option
6corporation or an insurer to which s. 71.45 (4) applies, may offset against its
7Wisconsin net business income any Wisconsin net business loss sustained in any of
8the next 15 preceding taxable years, if the corporation was subject to taxation under
9this chapter in the taxable year in which the loss was sustained, to the extent not
10offset by other items of Wisconsin income in the loss year and by Wisconsin net
11business income of any year between the loss year and the taxable year for which an
12offset is claimed. For purposes of this subsection Wisconsin net business income or
13loss shall consist of all the income attributable to the operation of a trade or business
14in this state, less the business expenses allowed as deductions in computing net
15income. The Wisconsin net business income or loss of corporations engaged in
16business within and without the state shall be determined under s. 71.25 (6) and (10)
17to (12). Nonapportionable losses having a Wisconsin situs under s. 71.25 (5) (b) shall
18be included in Wisconsin net business loss; and nonapportionable income having a
19Wisconsin situs under s. 71.25 (5) (b), whether taxable or exempt, shall be included
20in other items of Wisconsin income and Wisconsin net business income for purposes
21of this subsection.
AB637, s. 28 22Section 28. 71.26 (4) (b) of the statutes, as created by 2011 Wisconsin Act 32,
23is repealed.
AB637, s. 29 24Section 29. 71.28 (5n) of the statutes, as created by 2011 Wisconsin Act 32, is
25repealed.
AB637, s. 30
1Section 30. 71.30 (3) (dn) of the statutes, as created by 2011 Wisconsin Act 32,
2is repealed.
AB637, s. 31 3Section 31. 71.34 (1k) (g) of the statutes, as affected by 2011 Wisconsin Act 32,
4is amended to read:
AB637,13,85 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
6corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
7(3), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j),
8(5k), (5n), (5r), (5rm), and (8r) and passed through to shareholders.
AB637, s. 32 9Section 32. 71.36 (1m) (a) of the statutes is amended to read:
AB637,13,1310 71.36 (1m) (a) A tax-option corporation may deduct from its net income all
11amounts included in the Wisconsin adjusted gross income of its shareholders, the
12capital gain deduction under s. 71.05 (6) (b) 9.
and all amounts not taxable to
13nonresident shareholders under ss. 71.04 (1) and (4) to (9) and 71.362.
AB637, s. 33 14Section 33. 71.45 (2) (a) 10. of the statutes, as affected by 2011 Wisconsin Act
1532
, is amended to read:
AB637,13,2216 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
17computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn),
18(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (8r), and (9s) and not passed
19through by a partnership, limited liability company, or tax-option corporation that
20has added that amount to the partnership's, limited liability company's, or
21tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and the amount
22of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).
AB637, s. 34 23Section 34. 71.45 (4) (a) of the statutes, as affected by 2011 Wisconsin Act 32,
24is renumbered 71.45 (4) and amended to read:
AB637,14,10
171.45 (4) Except as provided in par. (b), insurers Insurers computing tax under
2this subchapter may subtract from Wisconsin net income any Wisconsin net business
3loss sustained in any of the next 15 preceding taxable years to the extent not offset
4by Wisconsin net business income of any year between the loss year and the taxable
5year for which an offset is claimed and computed without regard to sub. (2) (a) 8. and
69. and this subsection and limited to the amount of net income, but no loss incurred
7for a taxable year before taxable year 1987 by a nonprofit service plan of sickness care
8under ch. 148, or dental care under s. 447.13 may be treated as a net business loss
9of the successor service insurer under ch. 613 operating by virtue of s. 148.03 or
10447.13.
AB637, s. 35 11Section 35. 71.45 (4) (b) of the statutes, as created by 2011 Wisconsin Act 32,
12is repealed.
AB637, s. 36 13Section 36. 71.47 (5n) of the statutes, as created by 2011 Wisconsin Act 32, is
14repealed.
AB637, s. 37 15Section 37. 71.49 (1) (dn) of the statutes, as created by 2011 Wisconsin Act 32,
16is repealed.
AB637, s. 38 17Section 38. 71.54 (1) (f) (intro.) of the statutes, as affected by 2011 Wisconsin
18Act 32
, is amended to read:
AB637,14,2219 71.54 (1) (f) 2001 to 2011 and thereafter. (intro.) Subject to sub. (2m), the
20amount of any claim filed in 2001 to 2011 and thereafter and based on property taxes
21accrued or rent constituting property taxes accrued during the previous year is
22limited as follows:
AB637, s. 39 23Section 39. 71.54 (1) (g) of the statutes, as created by 2011 Wisconsin Act 32,
24is repealed.
AB637, s. 40
1Section 40. 71.54 (2) (b) 3. of the statutes, as affected by 2011 Wisconsin Act
232
, is amended to read:
AB637,15,43 71.54 (2) (b) 3. Subject to sub. (2m), in calendar years 1990 to 2010 year 1990
4or any subsequent calendar year
, $1,450.
AB637, s. 41 5Section 41. 71.54 (2) (b) 4. of the statutes, as created by 2011 Wisconsin Act
632
, is repealed.
AB637, s. 42 7Section 42. 71.54 (2m) of the statutes, as affected by 2011 Wisconsin Act 32,
8is amended to read:
AB637,15,259 71.54 (2m) Indexing for inflation; 2010 and thereafter. (a) For calendar years
10beginning after December 31, 2009, and before January 1, 2011, the dollar amounts
11of the threshold income under sub. (1) (f) 1. and 2., the maximum household income
12under sub. (1) (f) 3. and the maximum property taxes under sub. (2) (b) 3. shall be
13increased each year by a percentage equal to the percentage change between the U.S.
14consumer price index for all urban consumers, U.S. city average, for the 12-month
15average of the U.S. consumer price index for the month of August of the year before
16the previous year through the month of July of the previous year and the U.S.
17consumer price index for all urban consumers, U.S. city average, for the 12-month
18average of the U.S. consumer price index for August 2007 through July 2008, as
19determined by the federal department of labor, except that the adjustment may occur
20only if the percentage is a positive number. Each amount that is revised under this
21paragraph shall be rounded to the nearest multiple of $10 if the revised amount is
22not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount
23shall be increased to the next higher multiple of $10. The department of revenue
24shall annually adjust the changes in dollar amounts required under this paragraph
25and incorporate the changes into the income tax forms and instructions.
AB637,16,6
1(b) The department of revenue shall annually adjust the slope under sub. (1)
2(f) 2. such that, as a claimant's income increases from the threshold income as
3calculated under par. (a), to an amount that exceeds the maximum household income
4as calculated under par. (a), the credit that may be claimed is reduced to $0 and the
5department of revenue shall incorporate the changes into the income tax forms and
6instructions.
AB637, s. 43 7Section 43. 72.01 (11m) of the statutes is amended to read:
AB637,16,158 72.01 (11m) "Federal credit" means, for deaths occurring after September 30,
92002, and before January 1, 2008, the federal estate tax credit allowed for state death
10taxes as computed under the federal estate tax law in effect on December 31, 2000,
11and
; for deaths occurring after December 31, 2007, and before January 1, 2012, the
12federal estate tax credit allowed for state death taxes as computed under the federal
13estate tax law in effect on the day of the decedent's death; and for deaths occurring
14after December 31, 2011, the federal estate tax credit allowed for state death taxes
15as computed under the federal estate tax law in effect on December 31, 2002
.
AB637, s. 44 16Section 44. 72.01 (11n) of the statutes is amended to read:
AB637,16,2317 72.01 (11n) "Federal estate tax" means, for deaths occurring after September
1830, 2002, and before January 1, 2008, the federal estate tax as computed under the
19federal estate tax law in effect on December 31, 2000, and; for deaths occurring after
20December 31, 2007, and before January 1, 2012, the federal estate tax as computed
21under the federal estate tax law in effect on the day of the decedent's death; and for
22deaths occurring after December 31, 2011, the federal estate tax as computed under
23the federal estate tax law in effect on December 31, 2002
.
AB637, s. 45 24Section 45. 72.02 of the statutes is amended to read:
AB637,17,9
172.02 Estate tax imposed. An estate tax is imposed upon the transfer of all
2property that is subject to a federal estate tax and that has a taxable situs in this
3state, not including property used in farming as described under section 464 (e) (1)
4of the Internal Revenue Code
. The tax imposed is equal to the federal credit against
5the federal estate tax as finally determined. If only a portion of a decedent's property
6has a taxable situs in this state, the tax imposed is the amount obtained by
7multiplying the federal credit by a fraction the numerator of which is the value of the
8decedent's estate that has a taxable situs in this state and the denominator of which
9is the total value of the property in the estate that qualifies for the federal credit.
AB637, s. 46 10Section 46. 77.92 (4) of the statutes, as affected by 2011 Wisconsin Act 32, is
11amended to read:
AB637,18,212 77.92 (4) "Net business income," with respect to a partnership, means taxable
13income as calculated under section 703 of the Internal Revenue Code; plus the items
14of income and gain under section 702 of the Internal Revenue Code, including taxable
15state and municipal bond interest and excluding nontaxable interest income or
16dividend income from federal government obligations; minus the items of loss and
17deduction under section 702 of the Internal Revenue Code, except items that are not
18deductible under s. 71.21; plus guaranteed payments to partners under section 707
19(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
20(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
21(3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), and
22(8r); and plus or minus, as appropriate, transitional adjustments, depreciation
23differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but
24excluding income, gain, loss, and deductions from farming. "Net business income,"
25with respect to a natural person, estate, or trust, means profit from a trade or

1business for federal income tax purposes and includes net income derived as an
2employee as defined in section 3121 (d) (3) of the Internal Revenue Code.
AB637, s. 47 3Section 47. Initial applicability.
AB637,18,54 (1) The treatment of section 71.255 (2m) (d) of the statutes first applies
5retroactively to taxable years beginning on January 1, 2009.
AB637,18,86 (2) The treatment of sections 71.01 (14), 71.05 (6) (b) 9m., 25., and 47. b. and
7c., (8) (b), and (25) (b) (intro.), and 71.36 (1m) (a) of the statutes first applies to taxable
8years beginning after December 31, 2011.
AB637,18,119 (3) The treatment of sections 71.06 (1p) (e) and (f) and (2) (g) 5. and 6. and (h)
105. and 6. and 71.09 (11) (f) of the statutes first applies to taxable years beginning on
11January 1, 2012.
AB637, s. 48 12Section 48. Effective date.
AB637,18,1413 (1) The treatment of section 71.255 (2m) (d) of the statutes takes effect
14retroactively to January 1, 2009.
AB637,18,1515 (End)
Loading...
Loading...