2001 - 2002 LEGISLATURE
January 29, 2002 - Introduced by Senators Burke, Baumgart, Erpenbach,
Grobschmidt, M. Meyer, Risser and Wirch, cosponsored by Representatives
Krawczyk, Lippert, M. Lehman, Gard, Jensen, Grothman, Ott, Seratti, D.
Meyer, Owens, J. Fitzgerald, Nass, Rhoades, Musser, Vrakas, Johnsrud,
Hundertmark, Loeffelholz, Ward, Montgomery, Bies, Hahn, Ladwig,
Wieckert, Leibham, Jeskewitz, Skindrud, Powers, Urban, Starzyk, Kaufert,
Hines, Huebsch, Townsend, Pettis, Kestell, Walker, Underheim, Friske and
Petrowski. Referred to Joint Committee on Tax Exemptions.
SB407,1,3
1An Act to amend 71.01 (6) (o), 71.22 (4) (o), 71.22 (4m) (m), 71.26 (2) (b) 15., 71.34
2(1g) (o) and 71.42 (2) (n) of the statutes;
relating to: references to the Internal
3Revenue Code for income and franchise tax purposes.
Analysis by the Legislative Reference Bureau
This bill adopts, for income tax and franchise tax purposes, the changes to the
federal Internal Revenue Code made by the individual income and pension and
individual retirement arrangement provisions of the federal Economic Growth and
Tax Relief Reconciliation Act of 2001, excluding the section related to a deduction for
higher education expenses which is similar to a deduction allowed under current
state law.
This bill will be referred to the joint survey committee on tax exemptions for a
detailed analysis, which will be printed as an appendix to this bill.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB407, s. 1
4Section
1. 71.01 (6) (o) of the statutes is amended to read:
SB407,2,225
71.01
(6) (o) For taxable years that begin after December 31, 1999, for natural
6persons and fiduciaries, except fiduciaries of nuclear decommissioning trust or
1reserve funds, "Internal Revenue Code" means the federal Internal Revenue Code
2as amended to December 31, 1999, excluding sections 103, 104
, and 110 of P.L.
3102-227, sections 13113, 13150 (d), 13171 (d), 13174
, and 13203 (d) of P.L.
103-66 4and sections 1123 (b), 1202 (c), 1204 (f), 1311
, and 1605 (d) of P.L.
104-188, and as
5amended by P.L. 107-16, excluding sections 431 and 551 of P.L. 107-16, and as
6indirectly affected by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
7101-140, P.L.
101-179, P.L.
101-239, P.L.
101-280, P.L.
101-508, P.L.
102-90, P.L.
8102-227, excluding sections 103, 104
, and 110 of P.L.
102-227, P.L.
102-318, P.L.
9102-486, P.L.
103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174
, and
1013203 (d) of P.L.
103-66, P.L.
103-296, P.L.
103-337, P.L.
103-465, P.L.
104-7, P.L.
11104-117, P.L.
104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311
, and 1605
12(d) of P.L.
104-188, P.L.
104-191, P.L.
104-193, P.L.
105-33, P.L.
105-34, P.L.
13105-178, P.L.
105-206, P.L.
105-277, P.L.
106-36 and, P.L.
106-170, and P.L.
14107-16, excluding sections 431 and 551 of P.L. 107-16. The Internal Revenue Code
15applies for Wisconsin purposes at the same time as for federal purposes.
16Amendments to the federal Internal Revenue Code enacted after December 31, 1999,
17do not apply to this paragraph with respect to taxable years beginning after
18December 31, 1999
, except that changes to the Internal Revenue Code made by P.L.
19107-16, excluding sections 431 and 551 of P.L. 107-16, and changes that indirectly
20affect the provisions applicable to this subchapter made by P.L. 107-16, excluding
21sections 431 and 551 of P.L. 107-16, apply for Wisconsin purposes at the same time
22as for federal purposes.
SB407, s. 2
23Section
2. 71.22 (4) (o) of the statutes is amended to read:
SB407,3,2324
71.22
(4) (o) Except as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34
25(1g) and 71.42 (2), "Internal Revenue Code", for taxable years that begin after
1December 31, 1999, means the federal Internal Revenue Code as amended to
2December 31, 1999, excluding sections 103, 104
, and 110 of P.L.
102-227, sections
313113, 13150 (d), 13171 (d), 13174
, and 13203 (d) of P.L.
103-66 and sections 1123
4(b), 1202 (c), 1204 (f), 1311
, and 1605 (d) of P.L.
104-188, and as amended by P.L.
5107-16, excluding sections 431 and 551 of P.L. 107-16, and as indirectly affected in
6the provisions applicable to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
7100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2)
, and 823
8(c) (2) of P.L.
99-514 and section 1008 (g) (5) of P.L.
100-647, P.L.
101-73, P.L.
9101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227, excluding sections
10103, 104
, and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
103-66, excluding
11sections 13113, 13150 (d), 13171 (d), 13174
, and 13203 (d) of P.L.
103-66, P.L.
12103-296, P.L.
103-337, P.L.
103-465, P.L.
104-7, P.L.
104-188, excluding sections
131123 (b), 1202 (c), 1204 (f), 1311
, and 1605 (d) of P.L.
104-188, P.L.
104-191, P.L.
14104-193, P.L.
105-33, P.L.
105-34, P.L.
105-178, P.L.
105-206, P.L.
105-277, P.L.
15106-36 and, P.L.
106-170, and P.L. 107-16, excluding sections 431 and 551 of P.L.
16107-16. The Internal Revenue Code applies for Wisconsin purposes at the same time
17as for federal purposes. Amendments to the federal Internal Revenue Code enacted
18after December 31, 1999, do not apply to this paragraph with respect to taxable years
19beginning after December 31, 1999
, except that changes to the Internal Revenue
20Code made by P.L. 107-16, excluding sections 431 and 551 of P.L. 107-16, and
21changes that indirectly affect the provisions applicable to this subchapter made by
22P.L. 107-16, excluding sections 431 and 551 of P.L. 107-16, apply for Wisconsin
23purposes at the same time as for federal purposes.
SB407, s. 3
24Section
3. 71.22 (4m) (m) of the statutes is amended to read:
SB407,4,23
171.22
(4m) (m) For taxable years that begin after December 31, 1999, "Internal
2Revenue Code", for corporations that are subject to a tax on unrelated business
3income under s. 71.26 (1) (a), means the federal Internal Revenue Code as amended
4to December 31, 1999, excluding sections 103, 104
, and 110 of P.L.
102-227, sections
513113, 13150 (d), 13171 (d), 13174
, and 13203 (d) of P.L.
103-66, and sections 1123
6(b), 1202 (c), 1204 (f), 1311
, and 1605 (d) of P.L.
104-188, and as amended by P.L.
7107-16, excluding sections 431 and 551 of P.L. 107-16, and as indirectly affected in
8the provisions applicable to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
9100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
10102-227, excluding sections 103, 104
, and 110 of P.L.
102-227, P.L.
102-318, P.L.
11102-486, P.L.
103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174
, and
1213203 (d) of P.L.
103-66, P.L.
103-296, P.L.
103-337, P.L.
103-465, P.L.
104-7, P.L.
13104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311
, and 1605 (d) of P.L.
14104-188, P.L.
104-191, P.L.
104-193, P.L.
105-33, P.L.
105-34, P.L.
105-178, P.L.
15105-206, P.L.
105-277, P.L.
106-36 and, P.L.
106-170, and P.L. 107-16, excluding
16sections 431 and 551 of P.L. 107-16. The Internal Revenue Code applies for
17Wisconsin purposes at the same time as for federal purposes. Amendments to the
18Internal Revenue Code enacted after December 31, 1999, do not apply to this
19paragraph with respect to taxable years beginning after December 31, 1999
, except
20that changes to the Internal Revenue Code made by P.L. 107-16, excluding sections
21431 and 551 of P.L. 107-16, and changes that indirectly affect the provisions
22applicable to this subchapter made by P.L. 107-16, excluding sections 431 and 551
23of P.L. 107-16, apply for Wisconsin purposes at the same time as for federal purposes.
SB407, s. 4
24Section
4. 71.26 (2) (b) 15. of the statutes is amended to read:
SB407,7,10
171.26
(2) (b) 15. For taxable years that begin after December 31, 1999, for a
2corporation, conduit or common law trust which qualifies as a regulated investment
3company, real estate mortgage investment conduit, real estate investment trust or
4financial asset securitization investment trust under the Internal Revenue Code as
5amended to December 31, 1999, excluding sections 103, 104
, and 110 of P.L.
102-227,
6sections 13113, 13150 (d), 13171 (d), 13174
, and 13203 (d) of P.L.
103-66 and sections
71123 (b), 1202 (c), 1204 (f), 1311
, and 1605 (d) of P.L.
104-188, and as amended by P.L.
8107-16, excluding sections 431 and 551 of P.L. 107-16, and as indirectly affected in
9the provisions applicable to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
10100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
11102-227, excluding sections 103, 104
, and 110 of P.L.
102-227, P.L.
102-318, P.L.
12102-486, P.L.
103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174
, and
1313203 (d) of P.L.
103-66, P.L.
103-296, P.L.
103-337, P.L.
103-465, P.L.
104-7, P.L.
14104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311
, and 1605 (d) of P.L.
15104-188, P.L.
104-191, P.L.
104-193, P.L.
105-33, P.L.
105-34, P.L.
105-178, P.L.
16105-206, P.L.
105-277, P.L.
106-36 and, P.L.
106-170, and P.L. 107-16, excluding
17sections 431 and 551 of P.L. 107-16, "net income" means the federal regulated
18investment company taxable income, federal real estate mortgage investment
19conduit taxable income, federal real estate investment trust or financial asset
20securitization investment trust taxable income of the corporation, conduit or trust
21as determined under the Internal Revenue Code as amended to December 31, 1999,
22excluding sections 103, 104
, and 110 of P.L.
102-227, sections 13113, 13150 (d), 13171
23(d), 13174
, and 13203 (d) of P.L.
103-66 and sections 1123 (b), 1202 (c), 1204 (f), 1311
, 24and 1605 (d) of P.L.
104-188, and as amended by P.L. 107-16, excluding sections 431
25and 551 of P.L. 107-16, and as indirectly affected in the provisions applicable to this
1subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140,
2P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227, excluding sections 103, 104
, 3and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
103-66, excluding sections
413113, 13150 (d), 13171 (d), 13174
, and 13203 (d) of P.L.
103-66, P.L.
103-296, P.L.
5103-337, P.L.
103-465, P.L.
104-7, P.L.
104-188, excluding sections 1123 (b), 1202
6(c), 1204 (f), 1311
, and 1605 (d) of P.L.
104-188, P.L.
104-191, P.L.
104-193, P.L.
7105-33, P.L.
105-34, P.L.
105-178, P.L.
105-206, P.L.
105-277, P.L.
106-36 and, P.L.
8106-170, and P.L. 107-16, excluding sections 431 and 551 of P.L. 107-16, except that
9property that, under s. 71.02 (1) (c) 8. to 11., 1985 stats., is required to be depreciated
10for taxable years 1983 to 1986 under the Internal Revenue Code as amended to
11December 31, 1980, shall continue to be depreciated under the Internal Revenue
12Code as amended to December 31, 1980, and except that the appropriate amount
13shall be added or subtracted to reflect differences between the depreciation or
14adjusted basis for federal income tax purposes and the depreciation or adjusted basis
15under this chapter of any property disposed of during the taxable year. The Internal
16Revenue Code as amended to December 31, 1999, excluding sections 103, 104
, and
17110 of P.L.
102-227, sections 13113, 13150 (d), 13171 (d), 13174
, and 13203 (d) of P.L.
18103-66, and sections 1123 (b), 1202 (c), 1204 (f), 1311
, and 1605 (d) of P.L.
104-188,
19and as amended by P.L. 107-16, excluding sections 431 and 551 of P.L. 107-16, and
20as indirectly affected in the provisions applicable to this subchapter by P.L.
99-514,
21P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239,
22P.L.
101-508, P.L.
102-227, excluding sections 103, 104
, and 110 of P.L.
102-227, P.L.
23102-318, P.L.
102-486, P.L.
103-66, excluding sections 13113, 13150 (d), 13171 (d),
2413174
, and 13203 (d) of P.L.
103-66, P.L.
103-296, P.L.
103-337, P.L.
103-465, P.L.
25104-7, P.L.
104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311
, and 1605
1(d) of P.L.
104-188, P.L.
104-191, P.L.
104-193, P.L.
105-33, P.L.
105-34, P.L.
2105-178, P.L.
105-206, P.L.
105-277, P.L.
106-36 and, P.L.
106-170, and P.L.
3107-16, excluding sections 431 and 551 of P.L. 107-16, applies for Wisconsin
4purposes at the same time as for federal purposes. Amendments to the Internal
5Revenue Code enacted after December 31, 1999, do not apply to this subdivision with
6respect to taxable years that begin after December 31, 1999
, except that changes to
7the Internal Revenue Code made by P.L. 107-16, excluding sections 431 and 551 of
8P.L. 107-16, and changes that indirectly affect the provisions applicable to this
9subchapter made by P.L. 107-16, excluding sections 431 and 551 of P.L. 107-16,
10apply for Wisconsin purposes at the same time as for federal purposes.
SB407, s. 5
11Section
5. 71.34 (1g) (o) of the statutes is amended to read:
SB407,8,1212
71.34
(1g) (o) "Internal Revenue Code" for tax-option corporations, for taxable
13years that begin after December 31, 1999, means the federal Internal Revenue Code
14as amended to December 31, 1999, excluding sections 103, 104
, and 110 of P.L.
15102-227, sections 13113, 13150 (d), 13171 (d), 13174
, and 13203 (d) of P.L.
103-66 16and sections 1123 (b), 1202 (c), 1204 (f), 1311
, and 1605 (d) of P.L.
104-188, and as
17amended by P.L. 107-16, excluding sections 431 and 551 of P.L. 107-16, and as
18indirectly affected in the provisions applicable to this subchapter by P.L.
99-514, P.L.
19100-203, P.L.
100-647, excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821
20(b) (2)
, and 823 (c) (2) of P.L.
99-514 and section 1008 (g) (5) of P.L.
100-647, P.L.
21101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227,
22excluding sections 103, 104
, and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
23103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174
, and 13203 (d) of P.L.
24103-66, P.L.
103-296, P.L.
103-337, P.L.
103-465, P.L.
104-7, P.L.
104-188,
25excluding sections 1123 (b), 1202 (c), 1204 (f), 1311
, and 1605 (d) of P.L.
104-188, P.L.
1104-191, P.L.
104-193, P.L.
105-33, P.L.
105-34, P.L.
105-178, P.L.
105-206, P.L.
2105-277, P.L.
106-36 and, P.L.
106-170, and P.L. 107-16, excluding sections 431 and
3551 of P.L. 107-16, except that section 1366 (f) (relating to pass-through of items to
4shareholders) is modified by substituting the tax under s. 71.35 for the taxes under
5sections 1374 and 1375. The Internal Revenue Code applies for Wisconsin purposes
6at the same time as for federal purposes. Amendments to the federal Internal
7Revenue Code enacted after December 31, 1999, do not apply to this paragraph with
8respect to taxable years beginning after December 31, 1999
, except that changes to
9the Internal Revenue Code made by P.L. 107-16, excluding sections 431 and 551 of
10P.L. 107-16, and changes that indirectly affect the provisions applicable to this
11subchapter made by P.L. 107-16, excluding sections 431 and 551 of P.L. 107-16,
12apply for Wisconsin purposes at the same time as for federal purposes.
SB407, s. 6
13Section
6. 71.42 (2) (n) of the statutes is amended to read:
SB407,9,1114
71.42
(2) (n) For taxable years that begin after December 31, 1999, "Internal
15Revenue Code" means the federal Internal Revenue Code as amended to
16December 31, 1999, excluding sections 103, 104
, and 110 of P.L.
102-227, sections
1713113, 13150 (d), 13171 (d), 13174
, and 13203 (d) of P.L.
103-66 and sections 1123
18(b), 1202 (c), 1204 (f), 1311
, and 1605 (d) of P.L.
104-188, and as amended by P.L.
19107-16, excluding sections 431 and 551 of P.L. 107-16, and as indirectly affected by
20P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179,
21P.L.
101-239, P.L.
101-508, P.L.
102-227, excluding sections 103, 104
, and 110 of P.L.
22102-227, P.L.
102-318, P.L.
102-486, P.L.
103-66, excluding sections 13113, 13150
23(d), 13171 (d), 13174
, and 13203 (d) of P.L.
103-66, P.L.
103-296, P.L.
103-337, P.L.
24103-465, P.L.
104-7, P.L.
104-188, excluding sections 1123 (b), 1202 (c)
, 1204 (f),
251311
, and 1605 (d) of P.L.
104-188, P.L.
104-191, P.L.
104-193, P.L.
105-33, P.L.
1105-34, P.L.
105-178, P.L.
105-206, P.L.
105-277, P.L.
106-36
and, P.L.
106-170,
2and P.L. 107-16, excluding sections 431 and 551 of P.L. 107-16, except that "Internal
3Revenue Code" does not include section 847 of the federal Internal Revenue Code.
4The Internal Revenue Code applies for Wisconsin purposes at the same time as for
5federal purposes. Amendments to the federal Internal Revenue Code enacted after
6December 31, 1999, do not apply to this paragraph with respect to taxable years
7beginning after December 31, 1999
, except that changes to the Internal Revenue
8Code made by P.L. 107-16, excluding sections 431 and 551 of P.L. 107-16, and
9changes that indirectly affect the provisions applicable to this subchapter made by
10P.L. 107-16, excluding sections 431 and 551 of P.L. 107-16, apply for Wisconsin
11purposes at the same time as for federal purposes.
