AB100-engrossed, s. 2280n 14Section 2280n. 71.365 (3) (b) of the statutes is repealed.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AB100-engrossed, s. 2281b 6Section 2281b. 71.42 (2) (c) of the statutes is repealed.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:
AB100-engrossed,1168,1111 71.47 (1dx) Development zones credit. (a) Definitions. In this subsection:
AB100-engrossed,1168,1312 1. "Brownfield" means an industrial or commercial facility the expansion or
13redevelopment of which is complicated by environmental contamination.
AB100-engrossed,1168,1614 2. "Development zone" means a development zone under s. 560.70, a
15development opportunity zone under s. 560.795 or an enterprise development zone
16under s. 560.797.
AB100-engrossed,1168,2217 3. "Environmental remediation" means removal or containment of
18environmental pollution, as defined in s. 299.01 (4), and restoration of soil or
19groundwater that is affected by environmental pollution, as defined in s. 299.01 (4),
20in a brownfield if that removal, containment or restoration fulfills the requirement
21under sub. (1de) (a) 1. and investigation unless the investigation determines that
22remediation is required and that remediation is not undertaken.
AB100-engrossed,1169,323 4. "Full-time job" means a regular, nonseasonal full-time position in which an
24individual, as a condition of employment, is required to work at least 2,080 hours per
25year, including paid leave and holidays, and for which the individual receives pay

1that is equal to at least 150% of the federal minimum wage and receives benefits that
2are not required by federal or state law. "Full-time job" does not include initial
3training before an employment position begins.
AB100-engrossed,1169,124 5. "Member of a targeted group" means a person under sub. (1dj) (am) 1., a
5person who resides in an empowerment zone, or an enterprise community, that the
6U.S. government designates, a person who is employed in an unsubsidized job but
7meets the eligibility requirements under s. 49.145 (2) and (3) for a Wisconsin works
8employment position, a person who is employed in a trial job, as defined in s. 49.141
9(1) (n), a person who is eligible for the Wisconsin works health plan under s. 49.153
10or a person who is eligible for child care assistance under s. 49.155; if the person has
11been certified in the manner under sub. (1dj) (am) 3. by a designated local agency,
12as defined in sub. (1dj) (am) 2.
AB100-engrossed,1169,1513 (b) Credit. Except or provided in s. 73.03 (35) and subject to s. 560.785, for any
14taxable year for which the person is certified under s. 560.765 (3), any person may
15claim as a credit against taxes under this subchapter the following amounts:
AB100-engrossed,1169,1716 1. Fifty percent of the amount expended for environmental remediation in a
17development zone.
AB100-engrossed,1169,2118 2. The amount determined by multiplying the amount determined under s.
19560.785 (1) (b) by the number of full-time jobs created in a development zone and
20filled by a member of a targeted group and by then subtracting the subsidies paid
21under s. 49.147 (3) (a) for those jobs.
AB100-engrossed,1169,2522 3. The amount determined by multiplying the amount determined under s.
23560.785 (1) (c) by the number of full-time jobs created in a development zone and not
24filled by a member of a targeted group and by then subtracting the subsidies paid
25under s. 49.147 (3) (a) for those jobs.
AB100-engrossed,1170,5
14. The amount determined by multiplying the amount determined under s.
2560.785 (1) (b) by the number of full-time jobs retained, as provided in the rules
3under s. 560.785, excluding jobs for which a credit has been claimed under sub. (1dj),
4in a development zone and filled by a member of a targeted group and by then
5subtracting the subsidies paid under s. 49.147 (3) (a) for those jobs.
AB100-engrossed,1170,106 5. The amount determined by multiplying the amount determined under s.
7560.785 (1) (c) by the number of full-time jobs retained, as provided in the rules
8under s. 560.785, excluding jobs for which a credit has been claimed under sub. (1dj),
9in a development zone and not filled by a member of a targeted group and by then
10subtracting the subsidies paid under s. 49.147 (3) (a) for those jobs.
AB100-engrossed,1170,1611 (c) Credit precluded. If the certification of a person for tax benefits under s.
12560.765 (3) is revoked, that person may not claim credits under this subsection for
13the taxable year that includes the day on which the certification is revoked or
14succeeding taxable years and that person may not carry over unused credits from
15previous years to offset tax under this chapter for the taxable year that includes the
16day on which certification is revoked or succeeding taxable years.
AB100-engrossed,1170,2117 (d) Carry-over precluded. If a person who is certified under s. 560.765 (3) for
18tax benefits ceases business operations in the development zone during any of the
19taxable years that that zone exists, that person may not carry over to any taxable
20year following the year during which operations cease any unused credits from the
21taxable year during which operations cease or from previous taxable years.
AB100-engrossed,1171,222 (e) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
23s. 71.28 (4), applies to the credit under this subsection. Subsection (1dj) (c), as it
24applies to the credit under sub. (1dj), applies to the credit under this subsection.

1Claimants shall include with their returns a copy of their certification for tax benefits
2and a copy of the department of commerce's verification of their expenses.
AB100-engrossed, s. 2286m 3Section 2286m. 71.47 (3) (b) of the statutes is amended to read:
AB100-engrossed,1171,134 71.47 (3) (b) The tax imposed upon or measured by corporation Wisconsin net
5income under s. 71.43 (1) or (2) shall be reduced by an amount equal to the sales and
6use tax under ch. 77 paid by the corporation in such taxable year on fuel and
7electricity consumed in manufacturing tangible personal property in this state.
8Shareholders of a tax-option corporation and partners may claim the credit under
9this subsection, based on eligible sales and use taxes paid by the tax-option
10corporation or partnership, in proportion to the ownership interest of each
11shareholder or partner. The tax-option corporation or partnership shall calculate
12the amount of the credit that may be claimed by each shareholder or partner and
13shall provide that information to the shareholder or partner.
AB100-engrossed, s. 2286n 14Section 2286n. 71.47 (3) (c) of the statutes is renumbered 71.47 (3) (c) 1.
AB100-engrossed, s. 2286no 15Section 2286no. 71.47 (3) (c) 2. to 6. of the statutes are created to read:
AB100-engrossed,1171,1816 71.47 (3) (c) 2. For shareholders in a tax-option corporation, the credit may be
17offset only against the tax imposed on the shareholder's prorated share of the
18tax-option corporation's income.
AB100-engrossed,1171,2019 3. For partners, the credit may be offset only against the tax imposed on the
20partner's distributive share of partnership income.
AB100-engrossed,1171,2321 4. If a tax-option corporation becomes liable for tax, the corporation may offset
22the credit against the tax due, with any remaining credit passing through to the
23shareholders.
AB100-engrossed,1172,224 5. If a corporation that is not a tax-option corporation has a carry-over credit
25and becomes a tax-option corporation before the credit carried over is used, the

1unused portion of the credit may be used by the tax-option corporation's
2shareholders on a prorated basis.
AB100-engrossed,1172,73 6. If the shareholders of a tax-option corporation have carry-over credits and
4the corporation becomes a corporation other than a tax-option corporation after the
5effective date of this subdivision .... [revisor inserts date], and before the credits
6carried over are used, the unused portion of the credits may be used by the
7corporation that is not a tax-option corporation.
AB100-engrossed, s. 2286p 8Section 2286p. 71.47 (3) (d) of the statutes is repealed.
AB100-engrossed, s. 2287 9Section 2287. 71.47 (4) (a) of the statutes is amended to read:
AB100-engrossed,1172,2310 71.47 (4) (a) Credit. Any corporation may credit against taxes otherwise due
11under this chapter an amount equal to 5% of the amount obtained by subtracting
12from the corporation's qualified research expenses, as defined in section 41 of the
13internal revenue code, except that "qualified research expenses" includes only
14expenses incurred by the claimant, incurred for research conducted in this state for
15the taxable year, except that a taxpayer may elect the alternative computation under
16section 41 (c) (4) of the Internal Revenue Code and that election applies until the
17department permits its revocation
and except that "qualified research expenses"
18does not include compensation used in computing the credit under sub. subs. (1dj)
19and (1dx), the corporation's base amount, as defined in section 41 (c) of the internal
20revenue code, except that gross receipts used in calculating the base amount means
21gross receipts from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2. and
22(d). Section 41 (h) of the internal revenue code does not apply to the credit under this
23paragraph.
AB100-engrossed, s. 2287m 24Section 2287m. 71.47 (4) (am) of the statutes is amended to read:
AB100-engrossed,1174,2
171.47 (4) (am) Development zone additional research credit. In addition to the
2credit under par. (a), any corporation may credit against taxes otherwise due under
3this chapter an amount equal to 5% of the amount obtained by subtracting from the
4corporation's qualified research expenses, as defined in section 41 of the internal
5revenue code, except that "qualified research expenses" include only expenses
6incurred by the claimant in a development zone under subch. VI of ch. 560, except
7that a taxpayer may elect the alternative computation under section 41 (c) (4) of the
8Internal Revenue Code and that election applies until the department permits its
9revocation
and except that "qualified research expenses" do not include
10compensation used in computing the credit under sub. (1dj) nor research expenses
11incurred before the claimant is certified for tax benefits under s. 560.765 (3), the
12corporation's base amount, as defined in section 41 (c) of the internal revenue code,
13in a development zone, except that gross receipts used in calculating the base amount
14means gross receipts from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and
152. and (d) and research expenses used in calculating the base amount include
16research expenses incurred before the claimant is certified for tax benefits under s.
17560.765 (3), in a development zone, if the claimant submits with the claimant's
18return a copy of the claimant's certification for tax benefits under s. 560.765 (3) and
19a statement from the department of commerce verifying the claimant's qualified
20research expenses for research conducted exclusively in a development zone. The
21rules under s. 73.03 (35) apply to the credit under this paragraph. The rules under
22sub. (1di) (f) and (g) as they apply to the credit under that subsection apply to claims
23under this paragraph. Section 41 (h) of the internal revenue code does not apply to
24the credit under this paragraph. No credit may be claimed under this paragraph for
25taxable years that begin on January 1, 1998, or thereafter. Credits under this

1paragraph for taxable years that begin before January 1, 1998, may be carried
2forward to taxable years that begin on January 1, 1998, or thereafter.
AB100-engrossed, s. 2287mn 3Section 2287mn. 71.47 (6) (a) of the statutes is amended to read:
AB100-engrossed,1174,104 71.47 (6) (a) Any person may credit against taxes otherwise due under this
5chapter, up to the amount of those taxes, an amount equal to 5% of the costs of
6qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the internal
7revenue code, for certified historic structures on property located in this state if the
8physical work of construction or destruction in preparation for construction begins
9after December 31, 1988, and the rehabilitated property is placed in service after
10June 30, 1989
.
AB100-engrossed, s. 2288 11Section 2288. 71.49 (1) (eom) of the statutes is created to read:
AB100-engrossed,1174,1212 71.49 (1) (eom) Development zones credit under s. 71.47 (1dx).
AB100-engrossed, s. 2289 13Section 2289. 71.52 (6) of the statutes is amended to read:
AB100-engrossed,1176,214 71.52 (6) "Income" means the sum of Wisconsin adjusted gross income and the
15following amounts, to the extent not included in Wisconsin adjusted gross income:
16maintenance payments (except foster care maintenance and supplementary
17payments excludable under section 131 of the internal revenue code), support money,
18cash public assistance (not including credit granted under this subchapter and
19amounts under s. 46.27), cash benefits paid by counties under s. 59.53 (21), the gross
20amount of any pension or annuity (including railroad retirement benefits, all
21payments received under the federal social security act and veterans disability
22pensions), nontaxable interest received from the federal government or any of its
23instrumentalities, nontaxable interest received on state or municipal bonds,
24worker's compensation, unemployment compensation, the gross amount of "loss of
25time" insurance, compensation and other cash benefits received from the United

1States for past or present service in the armed forces, scholarship and fellowship gifts
2or income, capital gains, gain on the sale of a personal residence excluded under
3section 121 of the internal revenue code, dividends, income of a nonresident or
4part-year resident who is married to a full-year resident, housing allowances
5provided to members of the clergy, the amount by which a resident manager's rent
6is reduced, nontaxable income of an American Indian, nontaxable income from
7sources outside this state and nontaxable deferred compensation. Intangible drilling
8costs, depletion allowances and depreciation, including first-year depreciation
9allowances under section 179 of the internal revenue code, amortization,
10contributions to individual retirement accounts under section 219 of the internal
11revenue code, contributions to Keogh plans, net operating loss carry-forwards and
12capital loss carry-forwards deducted in determining Wisconsin adjusted gross
13income shall be added to "income". "Income" does not include gifts from natural
14persons, cash reimbursement payments made under title XX of the federal social
15security act, surplus food or other relief in kind supplied by a governmental agency,
16the gain on the sale of a personal residence deferred under section 1034 of the
17internal revenue code or nonrecognized gain from involuntary conversions under
18section 1033 of the internal revenue code. Amounts not included in adjusted gross
19income but added to "income" under this subsection in a previous year and repaid
20may be subtracted from income for the year during which they are repaid.
21Scholarship and fellowship gifts or income that are included in Wisconsin adjusted
22gross income and that were added to household income for purposes of determining
23the credit under this subchapter in a previous year may be subtracted from income
24for the current year in determining the credit under this subchapter.
A marital
25property agreement or unilateral statement under ch. 766 has no effect in computing

1"income" for a person whose homestead is not the same as the homestead of that
2person's spouse.
AB100-engrossed, s. 2290 3Section 2290. 71.63 (1m) of the statutes is created to read:
AB100-engrossed,1176,74 71.63 (1m) "Deposit" means mail or deliver funds to the department or, if the
5department prescribes another method of submitting or if the department of
6administration designates under s. 34.05 another destination, use that other method
7or submit to that other destination.
AB100-engrossed, s. 2291 8Section 2291. 71.63 (2) of the statutes is amended to read:
AB100-engrossed,1176,179 71.63 (2) "Employe" means a resident individual who performs or performed
10services for an employer anywhere or a nonresident individual who performs or
11performed such services within this state, and includes an officer, employe or elected
12official of the United States, a state, territory, or any political subdivision thereof, or
13the District of Columbia, or any agency or instrumentality of any one or more of these
14entities. The term includes an officer of a corporation, an entertainer and an
15entertainment corporation, but does not include a qualified real estate agent or a
16direct seller who is not treated as an employe under section 3508 of the Internal
17Revenue Code
.
AB100-engrossed, s. 2291m 18Section 2291m. 71.63 (3) (c) of the statutes is created to read:
AB100-engrossed,1176,2119 71.63 (3) (c) In regard to a single-owner entity that is disregarded as a separate
20entity under section 7701 of the Internal Revenue Code, the owner, not the entity, is
21an "employer".
AB100-engrossed, s. 2292 22Section 2292. 71.63 (3m) of the statutes is created to read:
AB100-engrossed,1177,223 71.63 (3m) "File" means mail or deliver a document that the department
24prescribes to the department or, if the department prescribes another method of

1submitting or the department of administration designates under s. 34.05 another
2destination, use that other method or submit to that other destination.
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