LRBa0951/1
MES&JK:lmk:jf
2005 - 2006 LEGISLATURE
ASSEMBLY AMENDMENT 1,
TO 2005 ASSEMBLY BILL 544
September 15, 2005 - Offered by Representatives Towns and Jeskewitz.
AB544-AA1,1,11 At the locations indicated, amend the bill as follows:
AB544-AA1,1,2 21. Page 2, line 1: before that line insert:
AB544-AA1,1,4 3" Section 1b. 71.01 (7r) of the statutes is renumbered 71.01 (7r) (a) and
4amended to read:
AB544-AA1,1,115 71.01 (7r) (a) Notwithstanding sub. (6), and except as provided in par. (b), for
6purposes of computing amortization or depreciation, "Internal Revenue Code"
7means the federal Internal Revenue Code as amended to December 31, 2000, except
8that property that, under s. 71.02 (2) (d) 12., 1985 stats., is required to be depreciated
9for taxable year 1986 under the Internal Revenue Code as amended to
10December 31, 1980, shall continue to be depreciated under the Internal Revenue
11Code as amended to December 31, 1980.
AB544-AA1, s. 1d 12Section 1d. 71.01 (7r) (b) of the statutes is created to read:
AB544-AA1,2,8
171.01 (7r) (b) For property acquired and placed in service in taxable years
2beginning after December 31, 2005, a person who owns and operates a private
3student residential building, as defined under s. 101.14 (4) (b) 1m., may compute
4amortization and depreciation for an automatic fire sprinkler system that is used in
5a private student residential building at 50 percent of the cost of the automatic fire
6sprinkler system for the first year that the system is acquired and placed in service
7and under the Internal Revenue Code as amended to December 31, 2000, for
8subsequent years.
AB544-AA1, s. 1e 9Section 1e. 71.05 (6) (b) 39. of the statutes is created to read:
AB544-AA1,2,1210 71.05 (6) (b) 39. Any amount donated by an individual, in the taxable year to
11which the claim relates, to a fraternity or sorority that operates a student residential
12facility, as described under s. 101.14 (4) (b) 3. e., if all of the following apply:
AB544-AA1,2,1413 a. The donated amount is used only for building improvement projects at the
14student residential facility.
AB544-AA1,2,1615 b. The fraternity or sorority is affiliated with an institution of higher education
16that is located in this state.
AB544-AA1,2,1917c. The fraternity or sorority is not described in section 501 (c) (3) of the Internal
18Revenue Code and is not exempt from federal income tax under section 501 (a) of the
19Internal Revenue Code.
AB544-AA1,2,2020 d. The donor is an alumnus of the fraternity or sorority.
AB544-AA1, s. 1g 21Section 1g. 71.26 (3) (y) of the statutes is renumbered 71.26 (3) (y) 1. and
22amended to read:
AB544-AA1,3,723 71.26 (3) (y) 1. A Except as provided in subd. 2., a corporation shall compute
24amortization and depreciation under the federal Internal Revenue Code as amended
25to December 31, 2000, except that property first placed in service by the taxpayer on

1or after January 1, 1983, but before January 1, 1987, that, under s. 71.04 (15) (b) and
2(br), 1985 stats., is required to be depreciated under the Internal Revenue Code as
3amended to December 31, 1980, and property first placed in service in taxable year
41981 or thereafter but before January 1, 1987, that, under s. 71.04 (15) (bm), 1985
5stats., is required to be depreciated under the Internal Revenue Code as amended
6to December 31, 1980, shall continue to be depreciated under the Internal Revenue
7Code as amended to December 31, 1980.
AB544-AA1, s. 1h 8Section 1h. 71.26 (3) (y) 2. of the statutes is created to read:
AB544-AA1,3,169 71.26 (3) (y) 2. For property acquired and placed in service in taxable years
10beginning after December 31, 2005, a corporation that owns and operates a private
11student residential building, as defined under s. 101.14 (4) (b) 1m., may compute
12amortization and depreciation for an automatic fire sprinkler system that is used in
13a private student residential building at 50 percent of the cost of the automatic fire
14sprinkler system for the first year that the system is acquired and placed in service
15and under the Internal Revenue Code as amended to December 31, 2000, for
16subsequent years.
AB544-AA1, s. 1m 17Section 1m. 71.365 (1m) of the statutes is renumbered 71.365 (1m) (a) and
18amended to read:
AB544-AA1,4,1819 71.365 (1m) (a) Tax-option corporations; depreciation. A Except as provided
20in par. (b), a
tax-option corporation shall compute amortization and depreciation
21under the federal Internal Revenue Code as amended to December 31, 2000, except
22that property first placed in service by the taxpayer on or after January 1, 1983, but
23before January 1, 1987, that, under s. 71.04 (15) (b) and (br), 1985 stats., is required
24to be depreciated under the Internal Revenue Code as amended to
25December 31, 1980, and property first placed in service in taxable year 1981 or

1thereafter but before January 1, 1987, that, under s. 71.04 (15) (bm), 1985 stats., is
2required to be depreciated under the Internal Revenue Code as amended to
3December 31, 1980, shall continue to be depreciated under the Internal Revenue
4Code as amended to December 31, 1980. Any difference between the adjusted basis
5for federal income tax purposes and the adjusted basis under this chapter shall be
6taken into account in determining net income or loss in the year or years for which
7the gain or loss is reportable under this chapter. If that property was placed in
8service by the taxpayer during taxable year 1986 and thereafter but before the
9property is used in the production of income subject to taxation under this chapter,
10the property's adjusted basis and the depreciation or other deduction schedule are
11not required to be changed from the amount allowable on the owner's federal income
12tax returns for any year because the property is used in the production of income
13subject to taxation under this chapter. If that property was acquired in a transaction
14in taxable year 1986 or thereafter in which the adjusted basis of the property in the
15hands of the transferee is the same as the adjusted basis of the property in the hands
16of the transferor, the Wisconsin adjusted basis of that property on the date of transfer
17is the adjusted basis allowable under the Internal Revenue Code as defined for
18Wisconsin purposes for the property in the hands of the transferor.
AB544-AA1, s. 1n 19Section 1n. 71.365 (1m) (b) of the statutes is created to read:
AB544-AA1,5,220 71.365 (1m) (b) For property acquired and placed in service in taxable years
21beginning after December 31, 2005, a tax-option corporation that owns and operates
22a private student residential building, as defined under s. 101.14 (4) (b) 1m., may
23compute amortization and depreciation for an automatic fire sprinkler system that
24is used in a private student residential building at 50 percent of the cost of the
25automatic fire sprinkler system for the first year that the system is acquired and

1placed in service and under the Internal Revenue Code as amended to December 31,
22000, for subsequent years.".
AB544-AA1,5,3 32. Page 2, line 1: delete " Section 1" and substitute "Section 1s".
AB544-AA1,5,4 43. Page 4, line 23: after that line insert:
AB544-AA1,5,5 5" Section 7m. Initial applicability.
AB544-AA1,5,106 (1) The treatment of section 71.05 (6) (b) 39. of the statues first applies to
7taxable years beginning on January 1 of the year in which this subsection takes
8effect, except that if this subsection takes effect after July 31 the treatment of section
971.05 (6) (b) 39. first applies to taxable years beginning on January 1 of the year
10following the year in which this subsection takes effect.".
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