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AB100-engrossed, s. 2276p 13Section 2276p. 71.28 (3) (d) of the statutes is repealed.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:
AB100-engrossed,1163,1112 71.42 (2) (h) For taxable years that begin after December 31, 1993, and before
13January 1, 1995, "internal revenue code" means the federal internal revenue code as
14amended to December 31, 1993 excluding sections 103, 104 and 110 of P.L. 102-227
15and sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215 of P.L. 103-66,
16and as amended by P.L. 103-296, P.L. 103-337, P.L. 103-465 and, P.L. 104-7,
17excluding section 1 of P.L. 104-7, P.L. 104-188, excluding section 1311 of P.L.
18104-188, P.L. 104-191 and P.L. 104-193,
and as indirectly affected by P.L. 99-514,
19P.L. 100-203, P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239,
20P.L. 101-508, P.L. 102-227, excluding sections 103, 104 and 110 of P.L. 102-227, P.L.
21102-318, P.L. 102-486 and P.L. 103-66, excluding sections 13113, 13150 (d), 13171
22(d), 13174, 13203 (d) and 13215 of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L.
23103-465 and, P.L. 104-7, excluding section 1 of P.L. 104-7, P.L. 104-188, excluding
24section 1311 of P.L. 104-188, P.L. 104-191 and P.L. 104-193
, except that "internal
25revenue code" does not include section 847 of the federal internal revenue code. The

1internal revenue code applies for Wisconsin purposes at the same time as for federal
2purposes. Amendments to the federal internal revenue code enacted after
3December 31, 1993, do not apply to this paragraph with respect to taxable years
4beginning after December 31, 1993, and before January 1, 1995, except that
5changes to the internal revenue code made by P.L. 103-296, P.L. 103-337, P.L.
6103-465 and, P.L. 104-7, excluding section 1 of P.L. 104-7, P.L. 104-188, excluding
7section 1311 of P.L. 104-188, P.L. 104-191 and P.L. 104-193
and changes that
8indirectly affect the provisions applicable to this subchapter made by P.L. 103-296,
9P.L. 103-337, P.L. 103-465 and, P.L. 104-7, excluding section 1 of P.L. 104-7, P.L.
10104-188, excluding section 1311 of P.L. 104-188, P.L. 104-191 and P.L. 104-193

11apply for Wisconsin purposes at the same time as for federal purposes.
AB100-engrossed, s. 2281h 12Section 2281h. 71.42 (2) (i) of the statutes is amended to read:
AB100-engrossed,1164,913 71.42 (2) (i) For taxable years that begin after December 31, 1994, and before
14January 1, 1996, "internal revenue code" means the federal internal revenue code as
15amended to December 31, 1994, excluding sections 103, 104 and 110 of P.L. 102-227
16and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, and as
17amended by P.L. 104-7, P.L. 104-188, excluding sections 1202, 1204, 1311 and 1605
18of P.L. 104-188, P.L. 104-191 and P.L. 104-193,
and as indirectly affected by P.L.
1999-514, P.L. 100-203, P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L.
20101-239, P.L. 101-508, P.L. 102-227, excluding sections 103, 104 and 110 of P.L.
21102-227, P.L. 102-318, P.L. 102-486, P.L. 103-66, excluding sections 13113, 13150
22(d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L.
23103-465 and, P.L. 104-7, P.L. 104-188, excluding sections 1202, 1204, 1311 and 1605
24of P.L. 104-188, P.L. 104-191 and P.L. 104-193
, except that "internal revenue code"
25does not include section 847 of the federal internal revenue code. The internal

1revenue code applies for Wisconsin purposes at the same time as for federal purposes.
2Amendments to the federal internal revenue code enacted after December 31, 1994,
3do not apply to this paragraph with respect to taxable years beginning after
4December 31, 1994, and before January 1, 1996, except that changes to the internal
5revenue code made by P.L. 104-7, P.L. 104-188, excluding sections 1202, 1204, 1311
6and 1605 of P.L. 104-188, P.L. 104-191 and P.L. 104-193
and changes that indirectly
7affect the provisions applicable to this subchapter made by P.L. 104-7, P.L. 104-188,
8excluding sections 1202, 1204, 1311 and 1605 of P.L. 104-188, P.L. 104-191 and P.L.
9104-193
apply for Wisconsin purposes at the same time as for federal purposes.
AB100-engrossed, s. 2281i 10Section 2281i. 71.42 (2) (j) of the statutes is amended to read:
AB100-engrossed,1165,711 71.42 (2) (j) For taxable years that begin after December 31, 1995, and before
12January 1, 1997,
"internal revenue code" means the federal internal revenue code as
13amended to December 31, 1995, excluding sections 103, 104 and 110 of P.L. 102-227
14and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, and as
15amended by P.L. 104-188, excluding sections 1123, 1202, 1204, 1311 and 1605 of P.L.
16104-188, P.L. 104-191 and P.L. 104-193
and as indirectly affected by P.L. 99-514,
17P.L. 100-203, P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239,
18P.L. 101-508, P.L. 102-227, excluding sections 103, 104 and 110 of P.L. 102-227, P.L.
19102-318, P.L. 102-486, P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d),
2013174 and 13203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465 and,
21P.L. 104-7, P.L. 104-188, excluding sections 1123, 1202, 1204, 1311 and 1605 of P.L.
22104-188, P.L. 104-191 and P.L. 104-193
except that "internal revenue code" does not
23include section 847 of the federal internal revenue code. The internal revenue code
24applies for Wisconsin purposes at the same time as for federal purposes.
25Amendments to the federal internal revenue code enacted after December 31, 1995,

1do not apply to this paragraph with respect to taxable years beginning after
2December 31, 1995, and before January 1, 1997, except that changes to the Internal
3Revenue Code made by P.L. 104-188, excluding sections 1123, 1202, 1204, 1311 and
41605 of P.L. 104-188, P.L. 104-191 and P.L. 104-193, and changes that indirectly
5affect the provisions applicable to this subchapter made by P.L. 104-188, excluding
6sections 1123, 1202, 1204, 1311 and 1605 of P.L. 104-188, P.L. 104-191 and P.L.
7104-193 apply for Wisconsin purposes at the same time as for federal purposes
.
AB100-engrossed, s. 2281j 8Section 2281j. 71.42 (2) (k) of the statutes is created to read:
AB100-engrossed,1165,249 71.42 (2) (k) For taxable years that begin after December 31, 1996, "Internal
10Revenue Code" means the federal Internal Revenue Code as amended to
11December 31, 1996, excluding sections 103, 104 and 110 of P.L. 102-227, sections
1213113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66 and sections 1123 (b),
131202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, and as indirectly affected by P.L.
1499-514, P.L. 100-203, P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L.
15101-239, P.L. 101-508, P.L. 102-227, excluding sections 103, 104 and 110 of P.L.
16102-227, P.L. 102-318, P.L. 102-486, P.L. 103-66, excluding sections 13113, 13150
17(d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L.
18103-465, P.L. 104-7, P.L. 104-188, excluding sections 1123 (b), 1202 (c) 1204 (f), 1311
19and 1605 (d) of P.L. 104-188, P.L. 104-191 and P.L. 104-193 except that "Internal
20Revenue Code" does not include section 847 of the federal Internal Revenue Code.
21The Internal Revenue Code applies for Wisconsin purposes at the same time as for
22federal purposes. Amendments to the federal Internal Revenue Code enacted after
23December 31, 1996, do not apply to this paragraph with respect to taxable years
24beginning after December 31, 1996.
AB100-engrossed, s. 2282 25Section 2282. 71.42 (3m) of the statutes is created to read:
AB100-engrossed,1166,3
171.42 (3m) "Pay" means mail or deliver funds to the department or, if the
2department prescribes another method of payment or another destination, use that
3other method or submit to that other destination.
AB100-engrossed, s. 2283 4Section 2283. 71.44 (4) (a) of the statutes is repealed.
AB100-engrossed, s. 2285 5Section 2285. 71.45 (2) (a) 10. of the statutes is amended to read:
AB100-engrossed,1166,116 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
7computed under s. 71.47 (1dd) to (1ds) (1dx) and not passed through by a partnership,
8limited liability company or tax-option corporation that has added that amount to
9the partnership's, limited liability company's or tax-option corporation's income
10under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under s. 71.47
11(1), (3), (4) and (5).
AB100-engrossed, s. 2285b 12Section 2285b. 71.45 (2) (a) 10m. of the statutes is created to read:
AB100-engrossed,1166,1413 71.45 (2) (a) 10m. By adding to federal taxable income the amount deducted
14under section 847 of the Internal Revenue Code.
AB100-engrossed, s. 2285bm 15Section 2285bm. 71.45 (2) (a) 13. of the statutes is amended to read:
AB100-engrossed,1167,316 71.45 (2) (a) 13. By adding or subtracting, as appropriate, the difference
17between the depreciation deduction under the federal internal revenue code as
18amended to December 31, 1995 1996, and the depreciation deduction under the
19federal internal revenue code in effect for the taxable year for which the return is
20filed, so as to reflect the fact that the insurer may choose between these 2 deductions,
21except that property first placed in service by the taxpayer on or after
22January 1, 1983, but before January 1, 1987, that, under s. 71.04 (15) (b) and (br),
231985 stats., is required to be depreciated under the internal revenue code as
24amended to December 31, 1980, and property first placed in service in taxable year
251981 or thereafter but before January 1, 1987, that, under s. 71.04 (15) (bm), 1985

1stats., is required to be depreciated under the internal revenue code as amended to
2December 31, 1980, shall continue to be depreciated under the internal revenue code
3as amended to December 31, 1980.
AB100-engrossed, s. 2285bp 4Section 2285bp. 71.47 (1dd) (e) of the statutes is created to read:
AB100-engrossed,1167,85 71.47 (1dd) (e) No credit may be claimed under this subsection for taxable
6years that begin on January 1, 1998, or thereafter. Credits under this subsection for
7taxable years that begin before January 1, 1998, may be carried forward to taxable
8years that begin on January 1, 1998, or thereafter.
AB100-engrossed, s. 2285c 9Section 2285c. 71.47 (1de) (d) of the statutes is created to read:
AB100-engrossed,1167,1310 71.47 (1de) (d) No credit may be claimed under this subsection for taxable
11years that begin on January 1, 1998, or thereafter. Credits under this subsection for
12taxable years that begin before January 1, 1998, may be carried forward to taxable
13years that begin on January 1, 1998, or thereafter.
AB100-engrossed, s. 2285d 14Section 2285d. 71.47 (1di) (i) of the statutes is created to read:
AB100-engrossed,1167,1815 71.47 (1di) (i) No credit may be claimed under this subsection for taxable years
16that begin on January 1, 1998, or thereafter. Credits under this subsection for
17taxable years that begin before January 1, 1998, may be carried forward to taxable
18years that begin on January 1, 1998, or thereafter.
AB100-engrossed, s. 2285e 19Section 2285e. 71.47 (1dj) (i) of the statutes is created to read:
AB100-engrossed,1167,2320 71.47 (1dj) (i) No credit may be claimed under this subsection for taxable years
21that begin on January 1, 1998, or thereafter. Credits under this subsection for
22taxable years that begin before January 1, 1998, may be carried forward to taxable
23years that begin on January 1, 1998, or thereafter.
AB100-engrossed, s. 2285f 24Section 2285f. 71.47 (1dL) (h) of the statutes is created to read:
AB100-engrossed,1168,4
171.47 (1dL) (h) No credit may be claimed under this subsection for taxable
2years that 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. 2285g 5Section 2285g. 71.47 (1ds) (i) of the statutes is created to read:
AB100-engrossed,1168,96 71.47 (1ds) (i) 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. 2286 10Section 2286. 71.47 (1dx) of the statutes is created to read:
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