AB100-engrossed, s. 2275d 20Section 2275d. 71.28 (1di) (j) of the statutes is created to read:
AB100-engrossed,1141,2421 71.28 (1di) (j) No credit may be claimed under this subsection for taxable years
22that begin on January 1, 1998, or thereafter. Credits under this subsection for
23taxable years that begin before January 1, 1998, may be carried forward to taxable
24years that begin on January 1, 1998, or thereafter.
AB100-engrossed, s. 2275e 25Section 2275e. 71.28 (1dj) (j) of the statutes is created to read:
AB100-engrossed,1142,4
171.28 (1dj) (j) No credit may be claimed under this subsection for taxable years
2that begin on January 1, 1998, or thereafter. Credits under this subsection for
3taxable years that begin before January 1, 1998, may be carried forward to taxable
4years that begin on January 1, 1998, or thereafter.
AB100-engrossed, s. 2275f 5Section 2275f. 71.28 (1dL) (j) of the statutes is created to read:
AB100-engrossed,1142,96 71.28 (1dL) (j) No credit may be claimed under this subsection for taxable years
7that begin on January 1, 1998, or thereafter. Credits under this subsection for
8taxable years that begin before January 1, 1998, may be carried forward to taxable
9years that begin on January 1, 1998, or thereafter.
AB100-engrossed, s. 2275g 10Section 2275g. 71.28 (1ds) (j) of the statutes is created to read:
AB100-engrossed,1142,1411 71.28 (1ds) (j) No credit may be claimed under this subsection for taxable years
12that begin on January 1, 1998, or thereafter. Credits under this subsection for
13taxable years that begin before January 1, 1998, may be carried forward to taxable
14years that begin on January 1, 1998, or thereafter.
AB100-engrossed, s. 2276 15Section 2276. 71.28 (1dx) of the statutes is created to read:
AB100-engrossed,1142,1616 71.28 (1dx) Development zones credit. (a) Definitions. In this subsection:
AB100-engrossed,1142,1817 1. "Brownfield" means an industrial or commercial facility the expansion or
18redevelopment of which is complicated by environmental contamination.
AB100-engrossed,1142,2119 2. "Development zone" means a development zone under s. 560.70, a
20development opportunity zone under s. 560.795 or an enterprise development zone
21under s. 560.797.
AB100-engrossed,1143,222 3. "Environmental remediation" means removal or containment of
23environmental pollution, as defined in s. 299.01 (4), and restoration of soil or
24groundwater that is affected by environmental pollution, as defined in s. 299.01 (4),
25in a brownfield if that removal, containment or restoration fulfills the requirement

1under sub. (1de) (a) 1. and investigation unless the investigation determines that
2remediation is required and that remediation is not undertaken.
AB100-engrossed,1143,83 4. "Full-time job" means a regular, nonseasonal full-time position in which an
4individual, as a condition of employment, is required to work at least 2,080 hours per
5year, including paid leave and holidays, and for which the individual receives pay
6that is equal to at least 150% of the federal minimum wage and receives benefits that
7are not required by federal or state law. "Full-time job" does not include initial
8training before an employment position begins.
AB100-engrossed,1143,179 5. "Member of a targeted group" means a person under sub. (1dj) (am) 1., a
10person who resides in an empowerment zone, or an enterprise community, that the
11U.S. government designates, a person who is employed in an unsubsidized job but
12meets the eligibility requirements under s. 49.145 (2) and (3) for a Wisconsin works
13employment position, a person who is employed in a trial job, as defined in s. 49.141
14(1) (n), a person who is eligible for the Wisconsin works health plan under s. 49.153
15or a person who is eligible for child care assistance under s. 49.155; if the person has
16been certified in the manner under sub. (1dj) (am) 3. by a designated local agency,
17as defined in sub. (1dj) (am) 2.
AB100-engrossed,1143,2018 (b) Credit. Except as provided in s. 73.03 (35) and subject to s. 560.785, for any
19taxable year for which the person is certified under s. 560.765 (3), any person may
20claim as a credit against taxes under this subchapter the following amounts:
AB100-engrossed,1143,2221 1. Fifty percent of the amount expended for environmental remediation in a
22development zone.
AB100-engrossed,1144,223 2. The amount determined by multiplying the amount determined under s.
24560.785 (1) (b) by the number of full-time jobs created in a development zone and

1filled by a member of a targeted group and by then subtracting the subsidies paid
2under s. 49.147 (3) (a) for those jobs.
AB100-engrossed,1144,63 3. The amount determined by multiplying the amount determined under s.
4560.785 (1) (c) by the number of full-time jobs created in a development zone and not
5filled by a member of a targeted group and by then subtracting the subsidies paid
6under s. 49.147 (3) (a) for those jobs.
AB100-engrossed,1144,117 4. The amount determined by multiplying the amount determined under s.
8560.785 (1) (b) by the number of full-time jobs retained, as provided in the rules
9under s. 560.785, excluding jobs for which a credit has been claimed under sub. (1dj),
10in a development zone and filled by a member of a targeted group and by then
11subtracting the subsidies paid under s. 49.147 (3) (a) for those jobs.
AB100-engrossed,1144,1612 5. The amount determined by multiplying the amount determined under s.
13560.785 (1) (c) by the number of full-time jobs retained, as provided in the rules
14under s. 560.785, excluding jobs for which a credit has been claimed under sub. (1dj),
15in a development zone and not filled by a member of a targeted group and by then
16subtracting the subsidies paid under s. 49.147 (3) (a) for those jobs.
AB100-engrossed,1144,2217 (c) Credit precluded. If the certification of a person for tax benefits under s.
18560.765 (3) is revoked, that person may not claim credits under this subsection for
19the taxable year that includes the day on which the certification is revoked or
20succeeding taxable years and that person may not carry over unused credits from
21previous years to offset tax under this chapter for the taxable year that includes the
22day on which certification is revoked or succeeding taxable years.
AB100-engrossed,1145,223 (d) Carry-over precluded. If a person who is certified under s. 560.765 (3) for
24tax benefits ceases business operations in the development zone during any of the
25taxable years that that zone exists, that person may not carry over to any taxable

1year following the year during which operations cease any unused credits from the
2taxable year during which operations cease or from previous taxable years.
AB100-engrossed,1145,73 (e) Administration. Subsection (4) (e) to (h), as it applies to the credit under
4sub. (4), applies to the credit under this subsection. Subsection (1dj) (c), as it applies
5to the credit under sub. (1dj), applies to the credit under this subsection. Claimants
6shall include with their returns a copy of their certification for tax benefits and a copy
7of the department of commerce's verification of their expenses.
AB100-engrossed, s. 2276m 8Section 2276m. 71.28 (3) (b) of the statutes is amended to read:
AB100-engrossed,1145,189 71.28 (3) (b) The tax imposed upon or measured by corporation Wisconsin net
10income under s. 71.23 (1) or (2) shall be reduced by an amount equal to the sales and
11use tax under ch. 77 paid by the corporation in such taxable year on fuel and
12electricity consumed in manufacturing tangible personal property in this state.
13Shareholders of a tax-option corporation and partners may claim the credit under
14this subsection, based on eligible sales and use taxes paid by the tax-option
15corporation or partnership, in proportion to the ownership interest of each
16shareholder or partner. The tax-option corporation or partnership shall calculate
17the amount of the credit that may be claimed by each shareholder or partner and
18shall provide that information to the shareholder or partner.
AB100-engrossed, s. 2276n 19Section 2276n. 71.28 (3) (c) of the statutes is renumbered 71.28 (3) (c) 1.
AB100-engrossed, s. 2276no 20Section 2276no. 71.28 (3) (c) 2. to 6. of the statutes are created to read:
AB100-engrossed,1145,2321 71.28 (3) (c) 2. For shareholders in a tax-option corporation, the credit may be
22offset only against the tax imposed on the shareholder's prorated share of the
23tax-option corporation's income.
AB100-engrossed,1145,2524 3. For partners, the credit may be offset only against the tax imposed on the
25partner's distributive share of partnership income.
AB100-engrossed,1146,3
14. If a tax-option corporation becomes liable for tax, the corporation may offset
2the credit against the tax due, with any remaining credit passing through to the
3shareholders.
AB100-engrossed,1146,74 5. If a corporation that is not a tax-option corporation has a carry-over credit
5and becomes a tax-option corporation before the credit carried over is used, the
6unused portion of the credit may be used by the tax-option corporation's
7shareholders on a prorated basis.
AB100-engrossed,1146,128 6. If the shareholders of a tax-option corporation have carry-over credits and
9the corporation becomes a corporation other than a tax-option corporation after the
10effective date of this subdivision .... [revisor inserts date], and before the credits
11carried over are used, the unused portion of the credits may be used by the
12corporation that is not a tax-option corporation.
AB100-engrossed, s. 2276p 13Section 2276p. 71.28 (3) (d) of the statutes is repealed.
AB100-engrossed, s. 2277 14Section 2277. 71.28 (4) (a) of the statutes is amended to read:
AB100-engrossed,1147,315 71.28 (4) (a) Credit. Any corporation may credit against taxes otherwise due
16under this chapter an amount equal to 5% of the amount obtained by subtracting
17from the corporation's qualified research expenses, as defined in section 41 of the
18internal revenue code, except that "qualified research expenses" includes only
19expenses incurred by the claimant, incurred for research conducted in this state for
20the taxable year, except that a taxpayer may elect the alternative computation under
21section 41 (c) (4) of the Internal Revenue Code and that election applies until the
22department permits its revocation
and except that "qualified research expenses"
23does not include compensation used in computing the credit under sub. subs. (1dj)
24and (1dx), the corporation's base amount, as defined in section 41 (c) of the internal
25revenue code, except that gross receipts used in calculating the base amount means

1gross receipts from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2. and
2(d). Section 41 (h) of the internal revenue code does not apply to the credit under this
3paragraph.
AB100-engrossed, s. 2277d 4Section 2277d. 71.28 (4) (am) 1. of the statutes is amended to read:
AB100-engrossed,1148,25 71.28 (4) (am) 1. In addition to the credit under par. (a), any corporation may
6credit against taxes otherwise due under this chapter an amount equal to 5% of the
7amount obtained by subtracting from the corporation's qualified research expenses,
8as defined in section 41 of the internal revenue code, except that "qualified research
9expenses" include only expenses incurred by the claimant in a development zone
10under subch. VI of ch. 560, except that a taxpayer may elect the alternative
11computation under section 41 (c) (4) of the Internal Revenue Code and that election
12applies until the department permits its revocation
and except that "qualified
13research expenses" do not include compensation used in computing the credit under
14sub. (1dj) nor research expenses incurred before the claimant is certified for tax
15benefits under s. 560.765 (3), the corporation's base amount, as defined in section 41
16(c) of the internal revenue code, in a development zone, except that gross receipts
17used in calculating the base amount means gross receipts from sales attributable to
18Wisconsin under s. 71.25 (9) (b) 1. and 2. and (d) and research expenses used in
19calculating the base amount include research expenses incurred before the claimant
20is certified for tax benefits under s. 560.765 (3), in a development zone, if the claimant
21submits with the claimant's return a copy of the claimant's certification for tax
22benefits under s. 560.765 (3) and a statement from the department of commerce
23verifying the claimant's qualified research expenses for research conducted
24exclusively in a development zone. The rules under s. 73.03 (35) apply to the credit
25under this subdivision. The rules under sub. (1di) (f) and (g) as they apply to the

1credit under that subsection apply to claims under this subdivision. Section 41 (h)
2of the internal revenue code does not apply to the credit under this subdivision.
AB100-engrossed, s. 2277m 3Section 2277m. 71.28 (4) (am) 3. of the statutes is created to read:
AB100-engrossed,1148,74 71.28 (4) (am) 3. No credit may be claimed under this paragraph for taxable
5years that begin on January 1, 1998, or thereafter. Credits under this paragraph for
6taxable years that begin before January 1, 1998, may be carried forward to taxable
7years that begin on January 1, 1998, and thereafter.
AB100-engrossed, s. 2277n 8Section 2277n. 71.28 (6) (a) of the statutes is amended to read:
AB100-engrossed,1148,159 71.28 (6) (a) Any person may credit against taxes otherwise due under this
10chapter, up to the amount of those taxes, an amount equal to 5% of the costs of
11qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the internal
12revenue code, for certified historic structures on property located in this state if the
13physical work of construction or destruction in preparation for construction begins
14after December 31, 1988, and the rehabilitated property is placed in service after
15June 30, 1989
.
AB100-engrossed, s. 2278 16Section 2278. 71.29 (2) of the statutes is amended to read:
AB100-engrossed,1148,2217 71.29 (2) Who shall pay. Every corporation subject to tax under s. 71.23 (1) or
18(2) and every virtually exempt entity subject to tax under s. 71.125 or 71.23 (1) or (2)
19shall pay an estimated tax to the department of revenue at its offices in Madison
20unless the department, by rule, prescribes another place of payment
. If the amount
21of any payment is $20,000 or more, the department may require the corporation to
22make the payment electronically
.
AB100-engrossed, s. 2279 23Section 2279. 71.30 (3) (eom) of the statutes is created to read:
AB100-engrossed,1148,2424 71.30 (3) (eom) Development zones credit under s. 71.28 (1dx).
AB100-engrossed, s. 2280 25Section 2280. 71.34 (1) (g) of the statutes is amended to read:
AB100-engrossed,1149,3
171.34 (1) (g) An addition shall be made for credits computed by a tax-option
2corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL) and, (1ds), (1dx) and (3) and
3passed through to shareholders.
AB100-engrossed, s. 2280am 4Section 2280am. 71.34 (1) (i) of the statutes is created to read:
AB100-engrossed,1149,75 71.34 (1) (i) In section 1366 (f) of the Internal Revenue Code, the tax under s.
671.35 is substituted for the taxes under sections 1374 and 1375 of the Internal
7Revenue Code.
AB100-engrossed, s. 2280ar 8Section 2280ar. 71.34 (1) (j) of the statutes is created to read:
AB100-engrossed,1149,119 71.34 (1) (j) An addition shall be made for credits computed under s. 71.28 (3)
10in taxable years of the tax-option corporation that begin before January 1, 1998, if
11the credits are passed through to shareholders.
AB100-engrossed, s. 2280b 12Section 2280b. 71.34 (1g) (d) of the statutes is repealed.
AB100-engrossed, s. 2280c 13Section 2280c. 71.34 (1g) (e) of the statutes is amended to read:
AB100-engrossed,1150,914 71.34 (1g) (e) "Internal revenue code" for tax-option corporations, for taxable
15years that begin after December 31, 1989, and before January 1, 1991, means the
16federal internal revenue code as amended to December 31, 1989, and as amended by
17P.L. 101-508, P.L. 102-227 and, P.L. 103-66 and P.L. 104-188, excluding section
181311 of P.L. 104-188,
and as indirectly affected in the provisions applicable to this
19subchapter by P.L. 99-514, P.L. 100-203, P.L. 100-647 excluding sections 803 (d) (2)
20(B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823 (c) (2) of P.L. 99-514 and section 1008
21(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.
22101-508, P.L. 102-227 and, P.L. 103-66 and P.L. 104-188, excluding section 1311 of
23P.L. 104-188
, except that section 1366 (f) (relating to pass-through of items to
24shareholders) is modified by substituting the tax under s. 71.35 for the taxes under
25sections 1374 and 1375. The internal revenue code applies for Wisconsin purposes

1at the same time as for federal purposes. Amendments to the federal internal
2revenue code enacted after December 31, 1989, do not apply to this paragraph with
3respect to taxable years beginning after December 31, 1989, and before January 1,
41991, except that changes to the internal revenue code made by P.L. 101-508, P.L.
5102-227 and, P.L. 103-66 and P.L. 104-188, excluding section 1311 of P.L. 104-188,
6and changes that indirectly affect provisions applicable to this subchapter made by
7P.L. 101-508, P.L. 102-227 and, P.L. 103-66 and P.L. 104-188, excluding section
81311 of P.L. 104-188,
apply for Wisconsin purposes at the same time as for federal
9purposes.
AB100-engrossed, s. 2280d 10Section 2280d. 71.34 (1g) (f) of the statutes is amended to read:
AB100-engrossed,1151,611 71.34 (1g) (f) "Internal revenue code" for tax-option corporations, for taxable
12years that begin after December 31, 1990, and before January 1, 1992, means the
13federal internal revenue code as amended to December 31, 1990, and as amended by
14P.L. 102-227, P.L. 102-486 and, P.L. 103-66 and P.L. 104-188, excluding section
151311 of P.L. 104-188,
and as indirectly affected in the provisions applicable to this
16subchapter by P.L. 99-514, P.L. 100-203, P.L. 100-647 excluding sections 803 (d) (2)
17(B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823 (c) (2) of P.L. 99-514 and section 1008
18(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.
19101-508, P.L. 102-227, P.L. 102-486 and, P.L. 103-66 and P.L. 104-188, excluding
20section 1311 of P.L. 104-188
, except that section 1366 (f) (relating to pass-through
21of items to shareholders) is modified by substituting the tax under s. 71.35 for the
22taxes under sections 1374 and 1375. The internal revenue code applies for Wisconsin
23purposes at the same time as for federal purposes. Amendments to the federal
24internal revenue code enacted after December 31, 1990, do not apply to this
25paragraph with respect to taxable years beginning after December 31, 1990, and

1before January 1, 1992, except that changes to the internal revenue code made by
2P.L. 102-227, P.L. 102-486 and, P.L. 103-66 and P.L. 104-188, excluding section
31311 of P.L. 104-188,
and changes that indirectly affect provisions applicable to this
4subchapter made by P.L. 102-227, P.L. 102-486 and, P.L. 103-66 and P.L. 104-188,
5excluding section 1311 of P.L. 104-188,
apply for Wisconsin purposes at the same
6time as for federal purposes.
AB100-engrossed, s. 2280e 7Section 2280e. 71.34 (1g) (g) of the statutes is amended to read:
AB100-engrossed,1152,68 71.34 (1g) (g) "Internal revenue code" for tax-option corporations, for taxable
9years that begin after December 31, 1991, and before January 1, 1993, means the
10federal internal revenue code as amended to December 31, 1991, excluding sections
11103, 104 and 110 of P.L. 102-227, and as amended by P.L. 102-318, P.L. 102-486 and,
12P.L. 103-66, excluding sections 13101 (a) and (c) 1, 13171 and 13174 of P.L. 103-66,
13and P.L. 104-188, excluding section 1311 of P.L. 104-188, and as indirectly affected
14in the provisions applicable to this subchapter by P.L. 99-514, P.L. 100-203, P.L.
15100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823
16(c) (2) of P.L. 99-514 and section 1008 (g) (5) of P.L. 100-647, P.L. 101-73, P.L.
17101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508, P.L. 102-227, excluding sections
18103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486 and, P.L. 103-66,
19excluding sections 13101 (a) and (c) 1, 13171 and 13174 of P.L. 103-66, and P.L.
20104-188, excluding section 1311 of P.L. 104-188,
except that section 1366 (f) (relating
21to pass-through of items to shareholders) is modified by substituting the tax under
22s. 71.35 for the taxes under sections 1374 and 1375. The internal revenue code
23applies for Wisconsin purposes at the same time as for federal purposes.
24Amendments to the federal internal revenue code enacted after December 31, 1991,
25do not apply to this paragraph with respect to taxable years beginning after

1December 31, 1991, and before January 1, 1993, except that changes to the internal
2revenue code made by P.L. 102-318, P.L. 102-486 and, P.L. 103-66 and P.L. 104-188,
3excluding section 1311 of P.L. 104-188,
and changes that indirectly affect the
4provisions applicable to this subchapter made by P.L. 102-318, P.L. 102-486 and,
5P.L. 103-66 and P.L. 104-188, excluding section 1311 of P.L. 104-188, apply for
6Wisconsin purposes at the same time as for federal purposes.
AB100-engrossed, s. 2280f 7Section 2280f. 71.34 (1g) (h) of the statutes is amended to read:
AB100-engrossed,1153,68 71.34 (1g) (h) "Internal revenue code" for tax-option corporations, for taxable
9years that begin after December 31, 1992, and before January 1, 1994, means the
10federal internal revenue code as amended to December 31, 1992, excluding sections
11103, 104 and 110 of P.L. 102-227, and as amended by P.L. 103-66, excluding sections
1213101 (a) and (c) 1, 13113, 13150, 13171, 13174 and 13203 of P.L. 103-66, and P.L.
13103-465 and P.L. 104-188, excluding section 1311 of P.L. 104-188, and as indirectly
14affected in the provisions applicable to this subchapter by P.L. 99-514, P.L. 100-203,
15P.L. 100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and
16823 (c) (2) of P.L. 99-514 and section 1008 (g) (5) of P.L. 100-647, P.L. 101-73, P.L.
17101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508, P.L. 102-227, excluding sections
18103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, P.L. 103-66, excluding
19sections 13101 (a) and (c) 1, 13113, 13150, 13171, 13174 and 13203 of P.L. 103-66,
20and P.L. 103-465 and P.L. 104-188, excluding section 1311 of P.L. 104-188, except
21that section 1366 (f) (relating to pass-through of items to shareholders) is modified
22by substituting the tax under s. 71.35 for the taxes under sections 1374 and 1375.
23The internal revenue code applies for Wisconsin purposes at the same time as for
24federal purposes. Amendments to the federal internal revenue code enacted after
25December 31, 1992, do not apply to this paragraph with respect to taxable years

1beginning after December 31, 1992, and before January 1, 1994, except that changes
2to the internal revenue code made by P.L. 103-66 and, P.L. 103-465 and P.L.
3104-188, excluding section 1311 of P.L. 104-188,
and changes that indirectly affect
4the provisions applicable to this subchapter made by P.L. 103-66 and, P.L. 103-465
5and P.L. 104-188, excluding section 1311 of P.L. 104-188, apply for Wisconsin
6purposes at the same time as for federal purposes.
AB100-engrossed, s. 2280g 7Section 2280g. 71.34 (1g) (i) of the statutes is amended to read:
AB100-engrossed,1154,118 71.34 (1g) (i) "Internal revenue code" for tax-option corporations, for taxable
9years that begin after December 31, 1993, and before January 1, 1995, means the
10federal internal revenue code as amended to December 31, 1993, excluding sections
11103, 104 and 110 of P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174,
1213203 (d) and 13215 of P.L. 103-66, and as amended by P.L. 103-296, P.L. 103-337,
13P.L. 103-465 and, P.L. 104-7, excluding section 1 of P.L. 104-7, P.L. 104-188,
14excluding section 1311 of P.L. 104-188, P.L. 104-191 and P.L. 104-193
and as
15indirectly affected in the provisions applicable to this subchapter by P.L. 99-514, P.L.
16100-203, P.L. 100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821
17(b) (2) and 823 (c) (2) of P.L. 99-514 and section 1008 (g) (5) of P.L. 100-647, P.L.
18101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508, P.L. 102-227,
19excluding sections 103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, P.L.
20103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215
21of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465 and, P.L. 104-7, excluding
22section 1 of P.L. 104-7, P.L. 104-188, excluding section 1311 of P.L. 104-188, P.L.
23104-191 and P.L. 104-193
except that section 1366 (f) (relating to pass-through of
24items to shareholders) is modified by substituting the tax under s. 71.35 for the taxes
25under sections 1374 and 1375. The internal revenue code applies for Wisconsin

1purposes at the same time as for federal purposes. Amendments to the federal
2internal revenue code enacted after December 31, 1993, do not apply to this
3paragraph with respect to taxable years beginning after December 31, 1993, and
4before January 1, 1995, except that changes to the internal revenue code made by
5P.L. 103-296, P.L. 103-337, P.L. 103-465 and, P.L. 104-7, excluding section 1 of P.L.
6104-7, P.L. 104-188, excluding section 1311 of P.L. 104-188, P.L. 104-191 and P.L.
7104-193
and changes that indirectly affect the provisions applicable to this
8subchapter made by P.L. 103-296, P.L. 103-337, P.L. 103-465 and, P.L. 104-7,
9excluding section 1 of P.L. 104-7, P.L. 104-188, excluding section 1311 of P.L.
10104-188, P.L. 104-191 and P.L. 104-193
apply for Wisconsin purposes at the same
11time as for federal purposes.
AB100-engrossed, s. 2280h 12Section 2280h. 71.34 (1g) (j) of the statutes is amended to read:
AB100-engrossed,1155,1313 71.34 (1g) (j) "Internal revenue code" for tax-option corporations, for taxable
14years that begin after December 31, 1994, and before January 1, 1996, means the
15federal internal revenue code as amended to December 31, 1994, excluding sections
16103, 104 and 110 of P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and
1713203 (d) of P.L. 103-66, and as amended by P.L. 104-7, P.L. 104-188, excluding
18sections 1202, 1204, 1311 and 1605 of P.L. 104-188, P.L. 104-191 and P.L. 104-193

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, P.L. 103-465 and, P.L. 104-7, P.L. 104-188,

1excluding sections 1202, 1204, 1311 and 1605 of P.L. 104-188, P.L. 104-191 and P.L.
2104-193
except that section 1366 (f) (relating to pass-through of items to
3shareholders) is modified by substituting the tax under s. 71.35 for the taxes under
4sections 1374 and 1375. The internal revenue code applies for Wisconsin purposes
5at the same time as for federal purposes. Amendments to the federal internal
6revenue code enacted after December 31, 1994, do not apply to this paragraph with
7respect to taxable years beginning after December 31, 1994, and before
8January 1, 1996, except changes to the internal revenue code made by P.L. 104-7,
9P.L. 104-188, excluding sections 1202, 1204, 1311 and 1605 of P.L. 104-188, P.L.
10104-191 and P.L. 104-193
and changes that indirectly affect the provisions
11applicable to this subchapter made by P.L. 104-7, P.L. 104-188, excluding sections
121202, 1204, 1311 and 1605 of P.L. 104-188, P.L. 104-191 and P.L. 104-193
apply for
13Wisconsin purposes at the same time as for federal purposes.
AB100-engrossed, s. 2280i 14Section 2280i. 71.34 (1g) (k) of the statutes is amended to read:
AB100-engrossed,1156,1515 71.34 (1g) (k) "Internal revenue code" for tax-option corporations, for taxable
16years that begin after December 31, 1995, and before January 1, 1997, means the
17federal internal revenue code as amended to December 31, 1995, excluding sections
18103, 104 and 110 of P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and
1913203 (d) of P.L. 103-66, and as amended by P.L. 104-188, excluding sections 1123,
201202, 1204, 1311 and 1605 of P.L. 104-188, P.L. 104-191 and P.L. 104-193,
and as
21indirectly affected in the provisions applicable to this subchapter by P.L. 99-514, P.L.
22100-203, P.L. 100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821
23(b) (2) and 823 (c) (2) of P.L. 99-514 and section 1008 (g) (5) of P.L. 100-647, P.L.
24101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508, P.L. 102-227,
25excluding sections 103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, P.L.

1103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
2103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465 and, P.L. 104-7, P.L. 104-188,
3excluding sections 1123, 1202, 1204, 1311 and 1605 of P.L. 104-188, P.L. 104-191 and
4P.L. 104-193
, 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, 1995, do not apply to this paragraph with
9respect to taxable years beginning after December 31, 1995, and before January 1,
101997, except that changes to the Internal Revenue Code made by P.L. 104-188,
11excluding sections 1123, 1202, 1204, 1311 and 1605 of P.L. 104-188, P.L. 104-191 and
12P.L. 104-193, and changes that indirectly affect the provisions applicable to this
13subchapter made by P.L. 104-188, excluding sections 1123, 1202, 1204, 1311 and
141605 of P.L. 104-188, P.L. 104-191 and P.L. 104-193 apply for Wisconsin purposes
15at the same time as for federal purposes
.
AB100-engrossed, s. 2280j 16Section 2280j. 71.34 (1g) (L) of the statutes is created to read:
AB100-engrossed,1157,1017 71.34 (1g) (L) "Internal Revenue Code" for tax-option corporations, for taxable
18years that begin after December 31, 1996, means the federal Internal Revenue Code
19as amended to December 31, 1996, excluding sections 103, 104 and 110 of P.L.
20102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66 and
21sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, and as
22indirectly affected in the provisions applicable to this subchapter by P.L. 99-514, P.L.
23100-203, P.L. 100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821
24(b) (2) and 823 (c) (2) of P.L. 99-514 and section 1008 (g) (5) of P.L. 100-647, P.L.
25101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508, P.L. 102-227,

1excluding sections 103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, P.L.
2103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
3103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L. 104-7, P.L. 104-188,
4excluding sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, P.L.
5104-191 and P.L. 104-193, except that section 1366 (f) (relating to pass-through of
6items to shareholders) is modified by substituting the tax under s. 71.35 for the taxes
7under sections 1374 and 1375. 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, 1996, do not apply to this
10paragraph with respect to taxable years beginning after December 31, 1996.
AB100-engrossed, s. 2280L 11Section 2280L. 71.365 (1m) of the statutes is amended to read:
AB100-engrossed,1158,1212 71.365 (1m) Tax-option corporations; depreciation. A tax-option corporation
13may compute amortization and depreciation under either the federal internal
14revenue code as amended to December 31, 1995 1996, or the federal internal revenue
15code in effect for the taxable year for which the return is filed, except that property
16first placed in service by the taxpayer on or after January 1, 1983, but before
17January 1, 1987, that, under s. 71.04 (15) (b) and (br), 1985 stats., is required to be
18depreciated under the internal revenue code as amended to December 31, 1980, and
19property first placed in service in taxable year 1981 or thereafter but before
20January 1, 1987, that, under s. 71.04 (15) (bm), 1985 stats., is required to be
21depreciated under the internal revenue code as amended to December 31, 1980,
22shall continue to be depreciated under the internal revenue code as amended to
23December 31, 1980. Any difference between the adjusted basis for federal income
24tax purposes and the adjusted basis under this chapter shall be taken into account
25in determining net income or loss in the year or years for which the gain or loss is

1reportable under this chapter. If that property was placed in service by the taxpayer
2during taxable year 1986 and thereafter but before the property is used in the
3production of income subject to taxation under this chapter, the property's adjusted
4basis and the depreciation or other deduction schedule are not required to be changed
5from the amount allowable on the owner's federal income tax returns for any year
6because the property is used in the production of income subject to taxation under
7this chapter. If that property was acquired in a transaction in taxable year 1986 or
8thereafter in which the adjusted basis of the property in the hands of the transferee
9is the same as the adjusted basis of the property in the hands of the transferor, the
10Wisconsin adjusted basis of that property on the date of transfer is the adjusted basis
11allowable under the internal revenue code as defined for Wisconsin purposes for the
12property in the hands of the transferor.
AB100-engrossed, s. 2280m 13Section 2280m. 71.365 (3) (a) of the statutes is renumbered 71.365 (3).
AB100-engrossed, s. 2280n 14Section 2280n. 71.365 (3) (b) of the statutes is repealed.
AB100-engrossed, s. 2280nm 15Section 2280nm. 71.365 (4) (a) of the statutes is amended to read:
AB100-engrossed,1158,2116 71.365 (4) (a) If persons who hold more than 50% of the shares on the day on
17which this election is made consent, a corporation that is an S corporation for federal
18income tax purposes and that does not have a qualified subchapter S subsidiary may
19elect, on or before the due date or extended due date of its return under this chapter,
20not to be a tax-option corporation for that taxable year and for later taxable years
21until its status is again changed.
AB100-engrossed, s. 2280p 22Section 2280p. 71.365 (7) of the statutes is created to read:
AB100-engrossed,1159,323 71.365 (7) Qualified subchapter S subsidiaries. If a tax-option corporation
24elects to treat a subsidiary as a qualified subchapter S subsidiary for federal
25purposes, that election also applies for this chapter. If this state has jurisdiction to

1impose the taxes under this chapter on the qualified subchapter S subsidiary, this
2state has the jurisdiction to impose the taxes under this chapter on the tax-option
3corporation.
AB100-engrossed, s. 2281 4Section 2281. 71.42 (1m) of the statutes is created to read:
AB100-engrossed,1159,55 71.42 (1m) "Department" means the department of revenue.
AB100-engrossed, s. 2281b 6Section 2281b. 71.42 (2) (c) of the statutes is repealed.
AB100-engrossed, s. 2281c 7Section 2281c. 71.42 (2) (d) of the statutes is amended to read:
AB100-engrossed,1159,248 71.42 (2) (d) For taxable years that begin after December 31, 1989, and before
9January 1, 1991, "internal revenue code" means the federal internal revenue code as
10amended to December 31, 1989, and as amended by P.L. 101-508, P.L. 102-227 and,
11P.L. 103-66 and P.L. 104-188, excluding section 1311 of P.L. 104-188, and as
12indirectly affected by P.L. 99-514, P.L. 100-203, P.L. 100-647, P.L. 101-73, P.L.
13101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508, P.L. 102-227 and, P.L. 103-66
14and P.L. 104-188, excluding section 1311 of P.L. 104-188, except that "internal
15revenue code" does not include section 847 of the federal internal revenue code. The
16internal revenue code applies for Wisconsin purposes at the same time as for federal
17purposes. Amendments to the federal internal revenue code enacted after December
1831, 1989, do not apply to this paragraph with respect to taxable years beginning after
19December 31, 1989, and before January 1, 1991, except that changes to the internal
20revenue code made by P.L. 101-508, P.L. 102-227 and, P.L. 103-66 and P.L. 104-188,
21excluding section 1311 of P.L. 104-188,
and changes that indirectly affect the federal
22internal revenue code made by P.L. 101-508, P.L. 102-227 and, P.L. 103-66 and P.L.
23104-188, excluding section 1311 of P.L. 104-188,
apply for Wisconsin purposes at the
24same time as for federal purposes.
AB100-engrossed, s. 2281d 25Section 2281d. 71.42 (2) (e) of the statutes is amended to read:
AB100-engrossed,1160,17
171.42 (2) (e) For taxable years that begin after December 31, 1990, and before
2January 1, 1992, "internal revenue code" means the federal internal revenue code as
3amended to December 31, 1990, and as amended by P.L. 102-227, P.L. 102-486 and,
4P.L. 103-66 and P.L. 104-188, excluding section 1311 of P.L. 104-188, and as
5indirectly affected by P.L. 99-514, P.L. 100-203, P.L. 100-647, P.L. 101-73, P.L.
6101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508, P.L. 102-227, P.L. 102-486 and,
7P.L. 103-66 and P.L. 104-188, excluding section 1311 of P.L. 104-188, except that
8"internal revenue code" does not include section 847 of the federal internal revenue
9code. The internal revenue code applies for Wisconsin purposes at the same time as
10for federal purposes. Amendments to the federal internal revenue code enacted after
11December 31, 1990, do not apply to this paragraph with respect to taxable years
12beginning after December 31, 1990, and before January 1, 1992, except that changes
13to the internal revenue code made by P.L. 102-227, P.L. 102-486 and, P.L. 103-66
14and P.L. 104-188, excluding section 1311 of P.L. 104-188, and changes that indirectly
15affect the federal internal revenue code made by P.L. 102-227, P.L. 102-486 and, P.L.
16103-66 and P.L. 104-188, excluding section 1311 of P.L. 104-188, apply for Wisconsin
17purposes at the same time as for federal purposes.
AB100-engrossed, s. 2281e 18Section 2281e. 71.42 (2) (f) of the statutes is amended to read:
AB100-engrossed,1161,1319 71.42 (2) (f) For taxable years that begin after December 31, 1991, and before
20January 1, 1993, "internal revenue code" means the federal internal revenue code as
21amended to December 31, 1991, excluding sections 103, 104 and 110 of P.L. 102-227,
22and as amended by P.L. 102-318, P.L. 102-486 and, P.L. 103-66, excluding sections
2313101 (a) and (c) 1, 13171 and 13174 of P.L. 103-66, and P.L. 104-188, excluding
24section 1311 of P.L. 104-188
, and as indirectly affected by P.L. 99-514, P.L. 100-203,
25P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508,

1P.L. 102-227, 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, 13171 and 13174
3of P.L. 103-66, and P.L. 104-188, excluding section 1311 of P.L. 104-188, except that
4"internal revenue code" does not include section 847 of the federal internal revenue
5code. The internal revenue code applies for Wisconsin purposes at the same time as
6for federal purposes. Amendments to the federal internal revenue code enacted after
7December 31, 1991, do not apply to this paragraph with respect to taxable years
8beginning after December 31, 1991, and before January 1, 1993, except that changes
9to the internal revenue code made by P.L. 102-318, P.L. 102-486 and, P.L. 103-66
10and P.L. 104-188, excluding section 1311 of P.L. 104-188, and changes that indirectly
11affect the federal internal revenue code made by P.L. 102-318, P.L. 102-486 and, P.L.
12103-66 and P.L. 104-188, excluding section 1311 of P.L. 104-188, apply for Wisconsin
13purposes at the same time as for federal purposes.
AB100-engrossed, s. 2281f 14Section 2281f. 71.42 (2) (g) of the statutes is amended to read:
AB100-engrossed,1162,1015 71.42 (2) (g) For taxable years that begin after December 31, 1992, and before
16January 1, 1994, "internal revenue code" means the federal internal revenue code as
17amended to December 31, 1992, excluding sections 103, 104 and 110 of P.L. 102-227,
18and as amended by P.L. 103-66, excluding sections 13101 (a) and (c) 1, 13113, 13150,
1913171, 13174 and 13203 of P.L. 103-66, and P.L. 103-465 and P.L. 104-188,
20excluding section 1311 of P.L. 104-188,
and as indirectly affected by P.L. 99-514, P.L.
21100-203, P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L.
22101-508, P.L. 102-227, excluding sections 103, 104 and 110 of P.L. 102-227, P.L.
23102-318, P.L. 102-486, P.L. 103-66, excluding sections 13101 (a) and (c) 1, 13113,
2413150, 13171, 13174 and 13203 of P.L. 103-66, and P.L. 103-465 and P.L. 104-188,
25excluding section 1311 of P.L. 104-188,
except that "internal revenue code" does not

1include section 847 of the federal internal revenue code. The internal revenue code
2applies for Wisconsin purposes at the same time as for federal purposes.
3Amendments to the federal internal revenue code enacted after December 31, 1992,
4do not apply to this paragraph with respect to taxable years beginning after
5December 31, 1992, and before January 1, 1994, except that changes to the internal
6revenue code made by P.L. 103-66 and, P.L. 103-465 and P.L. 104-188, excluding
7section 1311 of P.L. 104-188,
and changes that indirectly affect the federal internal
8revenue code made by P.L. 103-66 and, P.L. 103-465 and P.L. 104-188, excluding
9section 1311 of P.L. 104-188,
apply for Wisconsin purposes at the same time as for
10federal purposes.
AB100-engrossed, s. 2281g 11Section 2281g. 71.42 (2) (h) of the statutes is amended to read:
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