AB150-engrossed,1153,1120
71.26
(1) (e)
Menominee Indian tribe; distribution of assets. No distribution of
21assets from the United States to the members of the Menominee Indian tribe as
22defined in s.
49.085 49.385 or their lawful distributees, or to any corporation, or
23organization, created by the tribe or at its direction pursuant to section 8 of P.L.
2483-399, as amended, and no issuance of stocks, bonds, certificates of indebtedness,
25voting trust certificates or other securities by any such corporation or organization,
1or voting trust, to such members of the tribe or their lawful distributees shall be
2subject to income or franchise taxes under this chapter; provided that so much of any
3cash distribution made under said P.L.
83-399 as consists of a share of any interest
4earned on funds deposited in the treasury of the United States pursuant to the
5supplemental appropriation act, 1952, (65 Stat. 736, 754) shall not by virtue of this
6paragraph be exempt from the individual income tax of this state in the hands of the
7recipients for the year in which paid. For the purpose of ascertaining the gain or loss
8resulting from the sale or other disposition of such assets and stocks, bonds,
9certificates of indebtedness and other securities under this chapter, the fair market
10value of such property, on termination date as defined in s. 70.057 (1), 1967 stats.,
11shall be the basis for determining the amount of such gain or loss.
AB150-engrossed,1154,314
71.26
(2) (a)
Corporations in general. The "net income" of a corporation means
15the gross income as computed under the internal revenue code as modified under
16sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
17computed under s. 71.28 (1) and (3) to (5) plus the amount of the credit computed
18under s. 71.28
(1dd), (1de), (1di), (1dj), (1dL) and (1ds) and not passed through by a
19partnership, limited liability company or tax-option corporation that has added that
20amount to the partnership's, limited liability company's or tax-option corporation's
21income under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from the sale or
22other disposition of assets the gain from which would be wholly exempt income, as
23defined in sub. (3) (L), if the assets were sold or otherwise disposed of at a gain and
24minus deductions, as computed under the internal revenue code as modified under
25sub. (3), plus or minus, as appropriate, an amount equal to the difference between
1the federal basis and Wisconsin basis of any asset sold, exchanged, abandoned or
2otherwise disposed of in a taxable transaction during the taxable year, except as
3provided in par. (b) and s. 71.45 (2)
and (5).
AB150-engrossed,1155,256
71.26
(2) (b) 8. For taxable years that begin after December 31, 1992, and before
7January 1, 1994, for a corporation, conduit or common law trust which qualifies as
8a regulated investment company, real estate mortgage investment conduit or real
9estate investment trust under the internal revenue code as amended to December
1031, 1992, excluding sections 103, 104 and 110 of P.L.
102-227, and as amended by P.L.
11103-66, excluding sections 13101 (a) and (c) 1., 13113, 13150, 13171, 13174 and
1213203 of P.L.
103-66,
and P.L. 103-465 and as indirectly affected in the provisions
13applicable to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
14101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227,
15excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486 and, 16P.L.
103-66, excluding sections 13101 (a) and (c) 1, 13113, 13150, 13171, 13174 and
1713203 of P.L.
103-66,
and P.L. 103-465 "net income" means the federal regulated
18investment company taxable income, federal real estate mortgage investment
19conduit taxable income or federal real estate investment trust taxable income of the
20corporation, conduit or trust as determined under the internal revenue code as
21amended to December 31, 1992, excluding sections 103, 104 and 110 of P.L.
102-227,
22and as amended by P.L.
103-66,
and P.L. 103-465 excluding sections 13101 (a) and
23(c) 1, 13113, 13150, 13171, 13174 and 13203 of P.L.
103-66, and as indirectly affected
24in the provisions applicable to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
25100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
1102-227, excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
2102-486 and P.L.
103-66, excluding sections 13101 (a) and (c) 1., 13113, 13150,
313171, 13174 and 13203 of P.L.
103-66,
and P.L. 103-465 except that property that,
4under s. 71.02 (1) (c) 8. to 11., 1985 stats., is required to be depreciated for taxable
5years 1983 to 1986 under the internal revenue code as amended to December 31,
61980, shall continue to be depreciated under the internal revenue code as amended
7to December 31, 1980, and except that the appropriate amount shall be added or
8subtracted to reflect differences between the depreciation or adjusted basis for
9federal income tax purposes and the depreciation or adjusted basis under this
10chapter of any property disposed of during the taxable year. The internal revenue
11code as amended to December 31, 1992, excluding sections 103, 104 and 110 of P.L.
12102-227, and as amended by P.L.
103-66, excluding sections 13101 (a) and (c) 1,
1313113, 13150, 13171, 13174 and 13203 of P.L.
103-66,
and P.L. 103-465 and as
14indirectly affected in the provisions applicable to this subchapter by P.L.
99-514, P.L.
15100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
16101-508, P.L.
102-227, excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
17102-318, P.L.
102-486 and, P.L.
103-66, excluding sections 13101 (a) and (c) 1,
1813113, 13150, 13171, 13174 and 13203 of P.L.
103-66,
and P.L. 103-465 applies for
19Wisconsin purposes at the same time as for federal purposes. Amendments to the
20internal revenue code enacted after December 31, 1992, do not apply to this
21subdivision with respect to taxable years that begin after December 31, 1992, and
22before January 1, 1994, except that changes to the internal revenue code made by
23P.L.
103-66 and P.L. 103-465 and changes that indirectly affect the provisions
24applicable to this subchapter made by P.L.
103-66 and P.L. 103-465 apply for
25Wisconsin purposes at the same time as for federal purposes.
AB150-engrossed,1157,222
71.26
(2) (b) 9. For taxable years that begin after December 31, 1993
, and before
3January 1, 1995, for a corporation, conduit or common law trust which qualifies as
4a regulated investment company, real estate mortgage investment conduit or real
5estate investment trust under the internal revenue code as amended to December
631, 1993, excluding sections 103, 104 and 110 of P.L.
102-227 and sections 13113,
713150 (d), 13171 (d), 13174, 13203 (d) and 13215 of P.L.
103-66,
and as amended by
8P.L. 103-296, P.L. 103-337 and P.L. 103-465 and as indirectly affected in the
9provisions applicable to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647,
10P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227,
11excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486 and, 12P.L.
103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and
1313215 of P.L.
103-66,
P.L. 103-296, P.L. 103-337 and P.L. 103-465 "net income"
14means the federal regulated investment company taxable income, federal real estate
15mortgage investment conduit taxable income or federal real estate investment trust
16taxable income of the corporation, conduit or trust as determined under the internal
17revenue code as amended to December 31, 1993, excluding sections 103, 104 and 110
18of P.L.
102-227 and sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215
19of P.L.
103-66,
and as amended by P.L. 103-296, P.L. 103-337 and P.L. 103-465 and
20as indirectly affected in the provisions applicable to this subchapter by P.L.
99-514,
21P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239,
22P.L.
101-508, P.L.
102-227, excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
23102-318, P.L.
102-486 and, P.L.
103-66,
P.L. 103-296, P.L. 103-337 and P.L.
24103-465 excluding sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215
25of P.L.
103-66, except that property that, under s. 71.02 (1) (c) 8. to 11., 1985 stats.,
1is required to be depreciated for taxable years 1983 to 1986 under the internal
2revenue code as amended to December 31, 1980, shall continue to be depreciated
3under the internal revenue code as amended to December 31, 1980, and except that
4the appropriate amount shall be added or subtracted to reflect differences between
5the depreciation or adjusted basis for federal income tax purposes and the
6depreciation or adjusted basis under this chapter of any property disposed of during
7the taxable year. The internal revenue code as amended to December 31, 1993,
8excluding sections 103, 104 and 110 of P.L.
102-227 and sections 13113, 13150 (d),
913171 (d), 13174, 13203 (d) and 13215 of P.L.
103-66,
and as amended by P.L.
10103-296, P.L. 103-337 and P.L. 103-465 and as indirectly affected in the provisions
11applicable to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
12101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227,
13excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486 and, 14P.L.
103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and
1513215 of P.L.
103-66,
P.L. 103-296, P.L. 103-337 and P.L. 103-465 applies for
16Wisconsin purposes at the same time as for federal purposes. Amendments to the
17internal revenue code enacted after December 31, 1993, do not apply to this
18subdivision with respect to taxable years that begin after December 31, 1993
, and
19before January 1, 1995, except that changes to the internal revenue code made by
20P.L. 103-296, P.L. 103-337 and P.L. 103-465 and changes that indirectly affect the
21provisions applicable to this subchapter made by P.L. 103-296, P.L. 103-337 and P.L.
22103-465 apply for Wisconsin purposes at the same time as for federal purposes.
AB150-engrossed,1159,1224
71.26
(2) (b) 10. For taxable years that begin after December 31, 1994, for a
25corporation, conduit or common law trust which qualifies as a regulated investment
1company, real estate mortgage investment conduit or real estate investment trust
2under the internal revenue code as amended to December 31, 1994, excluding
3sections 103, 104 and 110 of P.L.
102-227 and sections 13113, 13150 (d), 13171 (d),
413174 and 13203 (d) of P.L.
103-66, and as indirectly affected in the provisions
5applicable to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
6101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227,
7excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486 and
8P.L.
103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
9P.L.
103-66, P.L.
103-296, P.L.
103-337 and P.L.
103-465 "net income" means the
10federal regulated investment company taxable income, federal real estate mortgage
11investment conduit taxable income or federal real estate investment trust taxable
12income of the corporation, conduit or trust as determined under the internal revenue
13code as amended to December 31, 1994, excluding sections 103, 104 and 110 of P.L.
14102-227 and sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215 of P.L.
15103-66, and as indirectly affected in the provisions applicable to this subchapter by
16P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179,
17P.L.
101-239, P.L.
101-508, P.L.
102-227, excluding sections 103, 104 and 110 of P.L.
18102-227, P.L.
102-318, P.L.
102-486, P.L.
103-66, P.L.
103-296, P.L.
103-337 and
19P.L.
103-465 excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
20P.L.
103-66, except that property that, under s. 71.02 (1) (c) 8. to 11., 1985 stats., is
21required to be depreciated for taxable years 1983 to 1986 under the internal revenue
22code as amended to December 31, 1980, shall continue to be depreciated under the
23internal revenue code as amended to December 31, 1980, and except that the
24appropriate amount shall be added or subtracted to reflect differences between the
25depreciation or adjusted basis for federal income tax purposes and the depreciation
1or adjusted basis under this chapter of any property disposed of during the taxable
2year. The internal revenue code as amended to December 31, 1994, excluding
3sections 103, 104 and 110 of P.L.
102-227 and sections 13113, 13150 (d), 13171 (d),
413174, 13203 (d) and 13215 of P.L.
103-66, and as indirectly affected in the provisions
5applicable to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
6101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227,
7excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
8103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215
9of P.L.
103-66, P.L.
103-296, P.L.
103-337 and P.L.
103-465 applies for Wisconsin
10purposes at the same time as for federal purposes. Amendments to the internal
11revenue code enacted after December 31, 1994, do not apply to this subdivision with
12respect to taxable years that begin after December 31, 1994.
AB150-engrossed,1159,2414
71.26
(3) (y) A corporation may compute amortization and depreciation under
15either the federal internal revenue code as amended to December 31,
1993 1994, or
16the federal internal revenue code in effect for the taxable year for which the return
17is filed, except that property first placed in service by the taxpayer on or after
18January 1, 1983, but before January 1, 1987, that, under s. 71.04 (15) (b) and (br),
191985 stats., is required to be depreciated under the internal revenue code as
20amended to December 31, 1980, and property first placed in service in taxable year
211981 or thereafter but before January 1, 1987, that, under s. 71.04 (15) (bm), 1985
22stats., is required to be depreciated under the internal revenue code as amended to
23December 31, 1980, shall continue to be depreciated under the internal revenue code
24as amended to December 31, 1980.
AB150-engrossed,1160,1
171.28
(1dd) Development zones day care credit. (a) In this subsection:
AB150-engrossed,1160,42
1. "Day care center benefits" means benefits provided at a day care facility that
3is licensed under s. 48.65 or 48.69 and that for compensation provides care for at least
46 children.
AB150-engrossed,1160,85
2. "Employment-related day care expenses" means amounts paid or incurred
6by a claimant for providing or making day care center benefits available to a
7qualifying individual in order to enable a member of a targeted group to be employed
8by the claimant.
AB150-engrossed,1160,99
4. "Member of a targeted group" means a person under sub. (1dj) (am) 1.
AB150-engrossed,1160,1710
5. "Qualifying individual" means a dependent of a member of a targeted group
11who is employed by a claimant and with respect to whom the member is entitled to
12a deduction under section
151 (c) of the internal revenue code for federal income tax
13purposes, a dependent of a member of a targeted group who is employed by a
14claimant if the dependent is physically or mentally incapable of caring for himself
15or herself or the spouse of a member of a targeted group who is employed by the
16claimant if the spouse is physically or mentally incapable of caring for himself or
17herself.
AB150-engrossed,1160,2518
(b) Except as provided in s. 73.03 (35), for any taxable year for which that
19person is certified under s. 560.765 (3) and begins business operations in a zone
20under s. 560.71 after the effective date of this paragraph .... [revisor inserts date],
21entitled under s. 560.795 (3) (a) and begins business operations in a zone under s.
22560.795 after the effective date of this paragraph .... [revisor inserts date], or certified
23under s. 560.797 (4) (a), for each zone for which the person is certified or entitled a
24person may credit against taxes otherwise due under this subchapter
25employment-related day care expenses, up to $1,200 for each qualifying individual.
AB150-engrossed,1161,2
1(c) Subsection (1di) (b), (c), (d) 1., (f) and (g), as it applies to the credit under sub.
2(1di), applies to the credit under this subsection.
AB150-engrossed,1161,43
(d) Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies
4to the credit under this subsection.
AB150-engrossed,1161,75
(dm) No credit may be allowed under this subsection unless the claimant
6includes with the claimant's return a statement from the department of development
7verifying the amount of qualifying employment-related day care expenses.
AB150-engrossed,1161,138
(e) The credit under this subsection, as it applies to a person certified under s.
9560.765 (3), applies to a corporation that conducts economic activity in a zone under
10s. 560.795 (1) and that is entitled to tax benefits under s. 560.795 (3), subject to the
11limits under s. 560.795 (2). A credit under this subsection may be credited using
12expenses incurred by a claimant on the effective date of this paragraph .... [revisor
13inserts date].
AB150-engrossed,1162,215
71.28
(1de) Development zones environmental remediation credit. (a)
16Except as provided in s. 73.03 (35), for any taxable year for which a person is certified
17under s. 560.765 (3) and begins business operations in a zone under s. 560.71 after
18the effective date of this paragraph .... [revisor inserts date], entitled under s.
19560.795 (3) (a) and begins business operations in a zone under s. 560.795 after the
20effective date of this paragraph .... [revisor inserts date], or certified under s. 560.797
21(4) (a), for each zone for which the person is certified or entitled the person may claim
22as a credit against taxes otherwise due under this subchapter an amount equal to
237.5% of the amount that the person expends to remove or contain environmental
24pollution, as defined in s. 144.01 (3), in the zone or to restore soil or groundwater that
1is affected by environmental pollution, as defined in s. 144.01 (3), in the zone if the
2person fulfills all of the following requirements:
AB150-engrossed,1162,83
1. Begins the work, other than planning and investigating, for which the credit
4is claimed after the area that includes the site where the work is done is designated
5a development zone under s. 560.71, a development opportunity zone under s.
6560.795 or an enterprise development zone under s. 560.797 and after the claimant
7is certified under s. 560.765 (3), entitled under s. 560.795 (3) (a) or certified under s.
8560.797 (4) (a).
AB150-engrossed,1162,109
(b) Subsection (1di) (b), (c), (d), (f) and (g), as it applies to the credit under sub.
10(1di), applies to the credit under this subsection.
AB150-engrossed,1162,1211
(c) Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies
12to the credit under this subsection.
AB150-engrossed,1162,1813
(d) The credit under this subsection, as it applies to a person certified under s.
14560.765 (3), applies to a corporation that conducts economic activity in a zone under
15s. 560.795 (1) and that is entitled to tax benefits under s. 560.795 (3), subject to the
16limits under s. 560.795 (2). A credit under this subsection may be credited using
17expenses incurred by a claimant on the effective date of this paragraph .... [revisor
18inserts date].
AB150-engrossed,1162,2520
71.28
(1dj) (d) If the allowable amount of the credit under par. (am) exceeds the
21taxes otherwise due under this chapter on or measured by the claimant's income, the
22amount of the credit not used as an offset against those taxes shall be certified to the
23department of administration for payment to the claimant by check, share draft or
24other draft
unless the claimant does not fulfill the requirements under sub. (1di) (b)
252. and bases the claim on activity in a zone under s. 560.797.
AB150-engrossed,1163,42
71.28
(1dj) (h) For claims based on activity in a zone under s. 560.797, the rules
3under sub. (1di) (b) and (c) as they apply to the credit under that subsection apply
4to the credit under this subsection.
AB150-engrossed,1163,116
71.28
(1ds) (c) If the allowable amount of the credit under par. (b) exceeds the
7taxes otherwise due under this chapter on or measured by the claimant's income, the
8amount of the credit not used as an offset against those taxes shall be certified to the
9department of administration for payment to the claimant by check, share draft or
10other draft
unless the claimant does not fulfill the requirements under sub. (1di) (b)
112. and bases the claim on activity in a zone under s. 560.797.
AB150-engrossed,1163,1513
71.28
(1ds) (h) For claims based on activity in a zone under s. 560.797, the rules
14under sub. (1di) (b) and (c) as they apply to the credit under that subsection apply
15to the credit under this subsection.
AB150-engrossed,1163,2317
71.28
(6) (a) Any person may credit against taxes otherwise due under this
18chapter, up to the amount of those taxes, an amount equal to 5% of the costs of
19qualified rehabilitation expenditures, as defined in section
48 (g) (2) 47 (c) (2) of the
20internal revenue code, for certified historic structures on property located in this
21state if the physical work of construction or destruction in preparation for
22construction begins after December 31, 1988, and the rehabilitated property is
23placed in service after June 30, 1989.
AB150-engrossed,1164,2
171.30
(3) (eb) Development zones jobs credit under s. 71.28 (1dj) if the credit
2is based on activity in a zone under s. 560.797.
AB150-engrossed,1164,43
(ec) Development zones sales tax credit under s. 71.28 (1ds) if the credit is based
4on activity in a zone under s. 560.797.
AB150-engrossed,1164,55
(en) Development zones day care credit under s. 71.28 (1dd).
AB150-engrossed,1164,66
(eo) Development zones environmental remediation credit under s. 71.28 (1de).
AB150-engrossed,1164,138
71.30
(3) (f) The total of farmers' drought property tax credit under s. 71.28
9(1fd), farmland preservation credit under subch. IX, farmland tax relief credit under
10s. 71.28 (2m), the development zones sales tax credit under s. 71.28 (1ds)
unless the
11credit is based on activity in a zone under s. 560.797, the development zones job credit
12under s. 71.28 (1dj)
unless the credit is based on activity in a zone under s. 560.797 13and estimated tax payments under s. 71.29.
AB150-engrossed,1164,1715
71.34
(1) (g) An addition shall be made for credits computed by a tax-option
16corporation under s. 71.28
(1dd), (1de), (1di), (1dj), (1dL) and (1ds) and passed
17through to shareholders.
AB150-engrossed,1165,1520
71.34
(1g) (h) "Internal revenue code" for tax-option corporations, for taxable
21years that begin after December 31, 1992, and before January 1, 1994, means the
22federal internal revenue code as amended to December 31, 1992, excluding sections
23103, 104 and 110 of P.L.
102-227, and as amended by P.L.
103-66, excluding sections
2413101 (a) and (c) 1, 13113, 13150, 13171, 13174 and 13203 of P.L.
103-66,
and P.L.
25103-465 and as indirectly affected in the provisions applicable to this subchapter by
1P.L.
99-514, P.L.
100-203, P.L.
100-647 excluding sections 803 (d) (2) (B), 805 (d) (2),
2812 (c) (2), 821 (b) (2) and 823 (c) (2) of P.L.
99-514 and section 1008 (g) (5) of P.L.
3100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
4102-227, excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
5102-486 and, P.L.
103-66, excluding sections 13101 (a) and (c) 1, 13113, 13150,
613171, 13174 and 13203 of P.L.
103-66,
and P.L. 103-465 except that section 1366
7(f) (relating to pass-through of items to shareholders) is modified by substituting the
8tax under s. 71.35 for the taxes under sections 1374 and 1375. The internal revenue
9code applies for Wisconsin purposes at the same time as for federal purposes.
10Amendments to the federal internal revenue code enacted after December 31, 1992,
11do not apply to this paragraph with respect to taxable years beginning after
12December 31, 1992, and before January 1, 1994, except that changes to the internal
13revenue code made by P.L.
103-66 and P.L. 103-465 and changes that indirectly
14affect the provisions applicable to this subchapter made by P.L.
103-66
and P.L.
15103-465 apply for Wisconsin purposes at the same time as for federal purposes.
AB150-engrossed,1166,1317
71.34
(1g) (i) "Internal revenue code" for tax-option corporations, for taxable
18years that begin after December 31, 1993
, and before January 1, 1995, means the
19federal internal revenue code as amended to December 31, 1993, excluding sections
20103, 104 and 110 of P.L.
102-227 and sections 13113, 13150 (d), 13171 (d), 13174,
2113203 (d) and 13215 of P.L.
103-66,
and as amended by P.L. 103-296, P.L. 103-337
22and P.L. 103-465 and as indirectly affected in the provisions applicable to this
23subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647 excluding sections 803 (d) (2)
24(B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823 (c) (2) of P.L.
99-514 and section 1008
25(g) (5) of P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
1101-508, P.L.
102-227, excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
2102-318, P.L.
102-486 and, P.L.
103-66, excluding sections 13113, 13150 (d), 13171
3(d), 13174, 13203 (d) and 13215 of P.L.
103-66,
P.L. 103-296, P.L. 103-337 and P.L.
4103-465 except that section 1366 (f) (relating to pass-through of items to
5shareholders) is modified by substituting the tax under s. 71.35 for the taxes under
6sections 1374 and 1375. The internal revenue code applies for Wisconsin purposes
7at the same time as for federal purposes. Amendments to the federal internal
8revenue code enacted after December 31, 1993, do not apply to this paragraph with
9respect to taxable years beginning after December 31, 1993
, and before January 1,
101995, except that changes to the internal revenue code made by P.L. 103-296, P.L.
11103-337 and P.L. 103-465 and changes that indirectly affect the provisions
12applicable to this subchapter made by P.L. 103-296, P.L. 103-337 and P.L. 103-465
13apply for Wisconsin purposes at the same time as for federal purposes.
AB150-engrossed,1167,615
71.34
(1g) (j) "Internal revenue code" for tax-option corporations, for taxable
16years that begin after December 31, 1994, means the federal internal revenue code
17as amended to December 31, 1994, excluding sections 103, 104 and 110 of P.L.
18102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66,
19and as indirectly affected in the provisions applicable to this subchapter by P.L.
2099-514, P.L.
100-203, P.L.
100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812
21(c) (2), 821 (b) (2) and 823 (c) (2) of P.L.
99-514 and section 1008 (g) (5) of P.L.
100-647,
22P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227,
23excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
24103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
25103-66, P.L.
103-296, P.L.
103-337 and P.L.
103-465, except that section 1366 (f)
1(relating to pass-through of items to shareholders) is modified by substituting the
2tax under s. 71.35 for the taxes under sections 1374 and 1375. The internal revenue
3code applies for Wisconsin purposes at the same time as for federal purposes.
4Amendments to the federal internal revenue code enacted after December 31, 1994,
5do not apply to this paragraph with respect to taxable years beginning after
6December 31, 1994.
AB150-engrossed,1168,88
71.365
(1m) Tax-option corporations; depreciation. A tax-option corporation
9may compute amortization and depreciation under either the federal internal
10revenue code as amended to December 31,
1993 1994, or the federal internal revenue
11code in effect for the taxable year for which the return is filed, except that property
12first placed in service by the taxpayer on or after January 1, 1983, but before January
131, 1987, that, under s. 71.04 (15) (b) and (br), 1985 stats., is required to be depreciated
14under the internal revenue code as amended to December 31, 1980, and property first
15placed in service in taxable year 1981 or thereafter but before January 1, 1987, that,
16under s. 71.04 (15) (bm), 1985 stats., is required to be depreciated under the internal
17revenue code as amended to December 31, 1980, shall continue to be depreciated
18under the internal revenue code as amended to December 31, 1980. Any difference
19between the adjusted basis for federal income tax purposes and the adjusted basis
20under this chapter shall be taken into account in determining net income or loss in
21the year or years for which the gain or loss is reportable under this chapter. If that
22property was placed in service by the taxpayer during taxable year 1986 and
23thereafter but before the property is used in the production of income subject to
24taxation under this chapter, the property's adjusted basis and the depreciation or
25other deduction schedule are not required to be changed from the amount allowable
1on the owner's federal income tax returns for any year because the property is used
2in the production of income subject to taxation under this chapter. If that property
3was acquired in a transaction in taxable year 1986 or thereafter in which the
4adjusted basis of the property in the hands of the transferee is the same as the
5adjusted basis of the property in the hands of the transferor, the Wisconsin adjusted
6basis of that property on the date of transfer is the adjusted basis allowable under
7the internal revenue code as defined for Wisconsin purposes for the property in the
8hands of the transferor.
AB150-engrossed,1169,210
71.42
(2) (g) For taxable years that begin after December 31, 1992, and before
11January 1, 1994, "internal revenue code" means the federal internal revenue code as
12amended to December 31, 1992, excluding sections 103, 104 and 110 of P.L.
102-227,
13and as amended by P.L.
103-66, excluding sections 13101 (a) and (c) 1, 13113, 13150,
1413171, 13174 and 13203 of P.L.
103-66,
and P.L. 103-465 and as indirectly affected
15by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179,
16P.L.
101-239, P.L.
101-508, P.L.
102-227, excluding sections 103, 104 and 110 of P.L.
17102-227, P.L.
102-318, P.L.
102-486 and, P.L.
103-66, excluding sections 13101 (a)
18and (c) 1, 13113, 13150, 13171, 13174 and 13203 of P.L.
103-66,
and P.L. 103-465 19except that "internal revenue code" does not include section 847 of the federal
20internal revenue code. The internal revenue code applies for Wisconsin purposes at
21the same time as for federal purposes. Amendments to the federal internal revenue
22code enacted after December 31, 1992, do not apply to this paragraph with respect
23to taxable years beginning after December 31, 1992, and before January 1, 1994,
24except that changes to the internal revenue code made by P.L.
103-66
and P.L.
25103-465 and changes that indirectly affect the federal internal revenue code
made
1by P.L.
103-66 and P.L. 103-465 apply for Wisconsin purposes at the same time as
2for federal purposes.
AB150-engrossed,1169,214
71.42
(2) (h) For taxable years that begin after December 31, 1993
, and before
5January 1, 1995, "internal revenue code" means the federal internal revenue code as
6amended to December 31, 1993 excluding sections 103, 104 and 110 of P.L.
102-227 7and sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215 of P.L.
103-66,
8and as amended by P.L. 103-296, P.L. 103-337 and P.L. 103-465 and as indirectly
9affected by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
10101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227, excluding sections 103, 104 and
11110 of P.L.
102-227, P.L.
102-318, P.L.
102-486 and P.L.
103-66, excluding sections
1213113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215 of P.L.
103-66,
P.L. 103-296,
13P.L. 103-337 and P.L. 103-465 except that "internal revenue code" does not include
14section 847 of the federal internal revenue code. The internal revenue code applies
15for Wisconsin purposes at the same time as for federal purposes. Amendments to the
16federal internal revenue code enacted after December 31, 1993, do not apply to this
17paragraph with respect to taxable years beginning after December 31, 1993
, and
18before January 1, 1995, except that changes to the internal revenue code made by
19P.L. 103-296, P.L. 103-337 and P.L. 103-465 and changes that indirectly affect the
20provisions applicable to this subchapter made by P.L. 103-296, P.L. 103-337 and P.L.
21103-465 apply for Wisconsin purposes at the same time as for federal purposes.
AB150-engrossed,1170,1023
71.42
(2) (i) For taxable years that begin after December 31, 1994, "internal
24revenue code" means the federal internal revenue code as amended to December 31,
251994, excluding sections 103, 104 and 110 of P.L.
102-227 and sections 13113, 13150
1(d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66, and as indirectly affected by P.L.
299-514, P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
3101-239, P.L.
101-508, P.L.
102-227, excluding sections 103, 104 and 110 of P.L.
4102-227, P.L.
102-318, P.L.
102-486, P.L.
103-66, excluding sections 13113, 13150
5(d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66, P.L.
103-296, P.L.
103-337 and
6P.L.
103-465 except that "internal revenue code" does not include section 847 of the
7federal internal revenue code. The internal revenue code applies for Wisconsin
8purposes at the same time as for federal purposes. Amendments to the federal
9internal revenue code enacted after December 31, 1994, do not apply to this
10paragraph with respect to taxable years beginning after December 31, 1994.
AB150-engrossed,1171,212
71.45
(1) Exempt and excludable income. There shall be exempt from taxation
13under this subchapter income of insurers exempt from federal income taxation
14pursuant to section
501 (c) (15) of the internal revenue code, town mutuals organized
15under or subject to ch. 612, foreign insurers, and domestic insurers engaged
16exclusively in life insurance business, domestic insurers insuring against financial
17loss by reason of nonpayment of principal, interest and other sums agreed to be paid
18under the terms of any note or bond or other evidence of indebtedness secured by a
19mortgage, deed of trust or other instrument constituting a lien or charge on real
20estate and corporations organized under ch. 185
, but not including income of
21cooperative sickness care associations organized under s. 185.981, or of a service
22insurance corporation organized under ch. 613, that is derived from a health
23maintenance organization as defined in s. 609.01 (2) or a limited service health
24organization as defined in s. 609.01 (3), or operating under subch. I of ch. 616 which
25are bona fide cooperatives operated without pecuniary profit to any shareholder or
1member, or operated on a cooperative plan pursuant to which they determine and
2distribute their proceeds in substantial compliance with s. 185.45.
AB150-engrossed,1171,84
71.45
(2) (a) (intro.) Insurers subject to taxation under this chapter shall pay
5a tax according to or measured by net income. Such tax is payable under s. 71.44 (1).
6"Net Except as provided in sub. (5), "net income" of an insurer subject to taxation
7under this chapter means federal taxable income as determined in accordance with
8the provisions of the internal revenue code adjusted as follows:
AB150-engrossed,1171,1510
71.45
(2) (a) 10. By adding to federal taxable income the amount of credit
11computed under s. 71.47
(1di) (1dd) to (1ds) and not passed through by a partnership,
12limited liability company or tax-option corporation that has added that amount to
13the partnership's, limited liability company's or tax-option corporation's income
14under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under s. 71.47
15(1), (3), (4) and (5).
AB150-engrossed,1172,417
71.45
(2) (a) 13. By adding or subtracting, as appropriate, the difference
18between the depreciation deduction under the federal internal revenue code as
19amended to December 31,
1993 1994, and the depreciation deduction under the
20federal internal revenue code in effect for the taxable year for which the return is
21filed, so as to reflect the fact that the insurer may choose between these 2 deductions,
22except that property first placed in service by the taxpayer on or after January 1,
231983, but before January 1, 1987, that, under s. 71.04 (15) (b) and (br), 1985 stats.,
24is required to be depreciated under the internal revenue code as amended to
25December 31, 1980, and property first placed in service in taxable year 1981 or
1thereafter but before January 1, 1987, that, under s. 71.04 (15) (bm), 1985 stats., is
2required to be depreciated under the internal revenue code as amended to December
331, 1980, shall continue to be depreciated under the internal revenue code as
4amended to December 31, 1980.
AB150-engrossed,1172,126
71.45
(5) Exceptions. The net income of a cooperative sickness care association
7organized under s. 185.981, or of a service insurance corporation organized under ch.
8613, that is derived from a health maintenance organization, as defined in s. 609.01
9(2), or a limited service health organization, as defined in s. 609.01 (3), is the net
10income that would be determined if the cooperative sickness care association or
11service insurance corporation were subject to federal income taxation and as if that
12income were that of an insurance company.
AB150-engrossed,1172,1414
71.47
(1dd) Development zones day care credit. (a) In this subsection:
AB150-engrossed,1172,1715
1. "Day care center benefits" means benefits provided at a day care facility that
16is licensed under s. 48.65 or 48.69 and that for compensation provides care for at least
176 children.
AB150-engrossed,1172,2118
2. "Employment-related day care expenses" means amounts paid or incurred
19by a claimant for providing or making day care center benefits available to a
20qualifying individual in order to enable a member of a targeted group to be employed
21by the claimant.
AB150-engrossed,1172,2222
4. "Member of a targeted group" means a person under sub. (1dj) (am) 1.
AB150-engrossed,1173,523
5. "Qualifying individual" means a dependent of a member of a targeted group
24who is employed by a claimant and with respect to whom the member is entitled to
25a deduction under section
151 (c) of the internal revenue code for federal income tax
1purposes, a dependent of a member of a targeted group who is employed by a
2claimant if the dependent is physically or mentally incapable of caring for himself
3or herself or the spouse of a member of a targeted group who is employed by the
4claimant if the spouse is physically or mentally incapable of caring for himself or
5herself.".
AB150-engrossed,1173,116
(b) Except as provided in s. 73.03 (35), for any taxable year for which that
7person is certified under s. 560.765 (3) and begins business operations in a zone
8under s. 560.71 after the effective date of this paragraph .... [revisor inserts date], or
9certified under s. 560.797 (4) (a), for each zone for which the person is certified or
10entitled a person may credit against taxes otherwise due under this subchapter
11employment-related day care expenses, up to $1,200 for each qualifying individual.
AB150-engrossed,1173,1312
(c) Subsection (1di) (b), (c), (d) 1., (f) and (g), as it applies to the credit under sub.
13(1di), applies to the credit under this subsection.
AB150-engrossed,1173,1514
(d) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4),
15applies to the credit under this subsection.
AB150-engrossed,1173,1816
(dm) No credit may be allowed under this subsection unless the claimant
17includes with the claimant's return a statement from the department of development
18verifying the amount of qualifying employment-related day care expenses.
AB150-engrossed,1173,2419
(e) The credit under this subsection, as it applies to a person certified under s.
20560.765 (3), applies to a person who conducts economic activity in a zone under s.
21560.795 (1) and who is entitled to tax benefits under s. 560.795 (3), subject to the
22limits under s. 560.795 (2). A credit under this subsection may be credited using
23expenses incurred by a claimant on the effective date of this paragraph .... [revisor
24inserts date].
AB150-engrossed,1174,10
171.47
(1de) Development zones environmental remediation credit. (a)
2Except as provided in s. 73.03 (35), for any taxable year for which a person is certified
3under s. 560.765 (3) and begins business operations in a zone under s. 560.71 after
4the effective date of this paragraph .... [revisor inserts date], or certified under s.
5560.797 (4) (a), for each zone for which the person is certified or entitled the person
6may claim as a credit against taxes otherwise due under this subchapter an amount
7equal to 7.5% of the amount that the person expends to remove or contain
8environmental pollution, as defined in s. 144.01 (3), in the zone or to restore soil or
9groundwater that is affected by environmental pollution, as defined in s. 144.01 (3),
10in the zone if the person fulfills all of the following requirements:
AB150-engrossed,1174,1611
1. Begins the work, other than planning and investigating, for which the credit
12is claimed after the area that includes the site where the work is done is designated
13a development zone under s. 560.71, a development opportunity zone under s.
14560.795 or an enterprise development zone under s. 560.797 and after the claimant
15is certified under s. 560.765 (3), entitled under s. 560.795 (3) (a) or certified under s.
16560.797 (4) (a).