AB100, s. 1268
24Section
1268. 71.01 (6) (o) of the statutes is amended to read:
AB100,618,25
171.01
(6) (o) For taxable years that begin after December 31, 1999, and before
2January 1, 2003, for natural persons and fiduciaries, except fiduciaries of nuclear
3decommissioning trust or reserve funds, "Internal Revenue Code" means the federal
4Internal Revenue Code as amended to December 31, 1999, excluding sections 103,
5104, and 110 of P.L.
102-227, sections 13113, 13150 (d), 13171 (d), 13174, and 13203
6(d) of P.L.
103-66 and sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of P.L.
7104-188,
and as amended by P.L.
106-230, P.L.
106-554, excluding sections 162 and
8165 of P.L.
106-554, P.L.
107-15, P.L.
107-16, excluding section 431 of P.L.
107-16,
9P.L.
107-22, P.L.
107-116, P.L.
107-134, P.L.
107-147, excluding sections 101 and
10406 of P.L.
107-147, P.L.
107-181, P.L.
107-210, P.L.
107-276,
and P.L.
107-358,
P.L.
11108-27, excluding sections 106, 201, and 202 of P.L. 108-27, P.L. 108-121, excluding
12section 109 of P.L. 108-121, P.L. 108-218, P.L. 108-311, excluding sections 306, 307,
13308, 401, and 403 (a) of P.L. 108-311, and P.L. 108-357, excluding sections 101, 201,
14244, 336, 337, 909, and 910 of P.L. 108-357, and as indirectly affected by P.L.
99-514,
15P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239,
16P.L.
101-280, P.L.
101-508, P.L.
102-90, P.L.
102-227, excluding sections 103, 104,
17and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
103-66, excluding sections
1813113, 13150 (d), 13171 (d), 13174, and 13203 (d) of P.L.
103-66, P.L.
103-296, P.L.
19103-337, P.L.
103-465, P.L.
104-7, P.L.
104-117, P.L.
104-188, excluding sections
201123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of P.L.
104-188, P.L.
104-191, P.L.
21104-193, P.L.
105-33, P.L.
105-34, P.L.
105-178, P.L.
105-206, P.L.
105-277, P.L.
22106-36, P.L.
106-170, P.L.
106-230, P.L.
106-554, excluding sections 162 and 165 of
23P.L.
106-554, P.L.
107-15, P.L.
107-16, excluding section 431 of P.L.
107-16, P.L.
24107-22, P.L.
107-116, P.L.
107-134, P.L.
107-147, excluding sections 101 and 406 of
25P.L.
107-147, P.L.
107-181, P.L.
107-210, P.L.
107-276,
and P.L.
107-358, P.L.
1108-27, excluding sections 106, 201, and 202 of P.L. 108-27, P.L. 108-121, excluding
2section 109 of P.L. 108-121, P.L. 108-218, 108-311, excluding sections 306, 307, 308,
3401, and 403 (a) of P.L. 108-311, and P.L. 108-357, excluding sections 101, 201, 244,
4336, 337, 909, and 910 of P.L. 108-357. The Internal Revenue Code applies for
5Wisconsin purposes at the same time as for federal purposes. Amendments to the
6federal Internal Revenue Code enacted after December 31, 1999, do not apply to this
7paragraph with respect to taxable years beginning after December 31, 1999, and
8before January 1, 2003, except that changes to the Internal Revenue Code made by
9P.L.
106-230, P.L.
106-554, excluding sections 162 and 165 of P.L.
106-554, P.L.
10107-15, P.L.
107-16, excluding section 431 of P.L.
107-16, P.L.
107-22, P.L.
107-116,
11P.L.
107-134, P.L.
107-147, excluding sections 101 and 406 of P.L.
107-147, P.L.
12107-181, P.L.
107-210, P.L.
107-276,
and P.L.
107-358,
P.L. 108-27, excluding
13sections 106, 201, and 202 of P.L. 108-27, P.L. 108-121, excluding section 109 of P.L.
14108-121, P.L 108-218, P.L. 108-311, excluding sections 306, 307, 308, 401, and 403
15(a) of P.L. 108-311, and P.L. 108-357, excluding sections 101, 201, 244, 336, 337, 909,
16and 910 of P.L. 108-357, and changes that indirectly affect the provisions applicable
17to this subchapter made by P.L.
106-230, P.L.
106-554,
excluding sections 162 and
18165 of P.L. 106-554, P.L.
107-15, P.L.
107-16, excluding section 431 of P.L.
107-16,
19P.L.
107-22, P.L.
107-116, P.L.
107-134, P.L.
107-147, excluding sections 101 and
20406 of P.L.
107-147, P.L.
107-181, P.L.
107-210, P.L.
107-276,
and P.L.
107-358,
P.L.
21108-27, excluding sections 106, 201, and 202 of P.L. 108-27, P.L. 108-121, excluding
22section 109 of P.L. 108-121, P.L. 108-218, P.L. 108-311, excluding sections 306, 307,
23308, 401, and 403 (a) of P.L. 108-311, and P.L. 108-357, excluding sections 101, 201,
24244, 336, 337, 909, and 910 of P.L. 108-357, apply for Wisconsin purposes at the same
25time as for federal purposes.
AB100, s. 1269
1Section
1269. 71.01 (6) (p) of the statutes is amended to read:
AB100,620,202
71.01
(6) (p) For taxable years that begin after December 31, 2002,
and before
3January 1, 2004, for natural persons and fiduciaries, except fiduciaries of nuclear
4decommissioning trust or reserve funds, "Internal Revenue Code" means the federal
5Internal Revenue Code as amended to December 31, 2002, excluding sections 103,
6104, and 110 of P.L.
102-227, sections 13113, 13150 (d), 13171 (d), 13174, and 13203
7(d) of P.L.
103-66, sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of P.L.
8104-188, P.L.
106-519, sections 162 and 165 of P.L.
106-554, P.L.
106-573, section
9431 of P.L.
107-16, and section 101 of P.L.
107-147,
and as amended by P.L. 108-27,
10excluding sections 106, 201, and 202 of P.L. 108-27, P.L. 108-121, excluding section
11109 of P.L. 108-121, P.L. 108-173, excluding section 1201 of P.L. 108-173, P.L.
12108-203, P.L 108-218, P.L. 108-311, excluding sections 306, 307, 308, 401, and 403
13(a) of P.L. 108-311, and P.L. 108-357, excluding sections 101, 201, 244, 336, 337, 909,
14and 910 of P.L. 108-357, and as indirectly affected by P.L.
99-514, P.L.
100-203, P.L.
15100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-280, P.L.
16101-508, P.L.
102-90, P.L.
102-227, excluding sections 103, 104, and 110 of P.L.
17102-227, P.L.
102-318, P.L.
102-486, P.L.
103-66, excluding sections 13113, 13150
18(d), 13171 (d), 13174, and 13203 (d) of P.L.
103-66, P.L.
103-296, P.L.
103-337, P.L.
19103-465, P.L.
104-7, P.L.
104-117, P.L.
104-188, excluding sections 1123 (b), 1202
20(c), 1204 (f), 1311, and 1605 (d) of P.L.
104-188, P.L.
104-191, P.L.
104-193, P.L.
21105-33, P.L.
105-34, P.L.
105-178, P.L.
105-206, P.L.
105-277, P.L.
106-36, P.L.
22106-170, P.L.
106-230, P.L.
106-554, excluding sections 162 and 165 of P.L.
106-554,
23P.L.
107-15, P.L.
107-16, excluding section 431 of P.L.
107-16, P.L.
107-22, P.L.
24107-116, P.L.
107-134, P.L.
107-147, excluding section 101 of P.L.
107-147, P.L.
25107-181, P.L.
107-210, P.L.
107-276,
and P.L.
107-358, P.L. 108-27, excluding
1sections 106, 201, and 202 of P.L. 108-27, P.L. 108-121, excluding section 109 of P.L.
2108-121, P.L. 108-173, excluding section 1201 of P.L. 108-173, P.L. 108-203, P.L.
3108-218, P.L. 108-311, excluding sections 306, 307, 308, 401, and 403 (a) of P.L.
4108-311, and P.L. 108-357, excluding sections 101, 201, 244, 336, 337, 909, and 910
5of P.L. 108-357. The Internal Revenue Code applies for Wisconsin purposes at the
6same time as for federal purposes. Amendments to the federal Internal Revenue
7Code enacted after December 31, 2002, do not apply to this paragraph with respect
8to taxable years beginning after December 31, 2002
, and before January 1, 2004,
9except that changes to the Internal Revenue Code made by P.L. 108-27, excluding
10sections 106, 201, and 202 of P.L. 108-27, P.L. 108-121, excluding section 109 of P.L.
11108-121, P.L. 108-173, excluding section 1201 of P.L. 108-173, P.L. 108-203, P.L.
12108-218, P.L. 108-311, excluding sections 306, 307, 308, 401, and 403 (a) of P.L.
13108-311, and P.L. 108-357, excluding sections 101, 201, 244, 336, 337, 909, and 910
14of P.L. 108-357, and changes that indirectly affect the provisions applicable to this
15subchapter made by P.L. 108-27, excluding sections 106, 201, and 202 of P.L. 108-27,
16P.L. 108-121, excluding section 109 of P.L. 108-121, P.L. 108-173, excluding section
171201 of P.L. 108-173, P.L. 108-203, P.L. 108-218, P.L. 108-311, excluding sections
18306, 307, 308, 401, and 403 (a) of P.L. 108-311, and P.L. 108-357, excluding sections
19101, 201, 244, 336, 337, 909, and 910 of P.L. 108-357, apply for Wisconsin purposes
20at the same time as for federal purposes.
AB100, s. 1270
21Section
1270. 71.01 (6) (q) of the statutes is created to read:
AB100,622,1222
71.01
(6) (q) For taxable years that begin after December 31, 2003, and
23before January 1, 2005, for natural persons and fiduciaries, except fiduciaries of
24nuclear decommissioning trust or reserve funds, "Internal Revenue Code" means
25the federal Internal Revenue Code as amended to December 31, 2003, excluding
1sections 103, 104, and 110 of P.L.
102-227, sections 13113, 13150 (d), 13171 (d),
213174, and 13203 (d) of P.L.
103-66, sections 1123 (b), 1202 (c), 1204 (f), 1311, and
31605 (d) of P.L.
104-188, P.L.
106-519, sections 162 and 165 of P.L.
106-554, P.L.
4106-573, section 431 of P.L.
107-16, section 101 of P.L.
107-147, sections 106,
5201, and 202 of P.L.
108-27, section 109 of P.L.
108-121, and section 1201 of P.L.
6108-173, and as amended by P.L.
108-203, P.L.
108-218, P.L.
108-311, excluding
7sections 306, 307, 308, 401, and 403 (a) of P.L.
108-311, P.L.
108-357, excluding
8sections 101, 201, 244, 336, 337, 909, and 910 of P.L.
108-357, and P.L.
108-476,
9and as indirectly affected by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
101-73,
10P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-280, P.L.
101-508, P.L.
11102-90, P.L.
102-227, excluding sections 103, 104, and 110 of P.L.
102-227, P.L.
12102-318, P.L.
102-486, P.L.
103-66, excluding sections 13113, 13150 (d), 13171
13(d), 13174, and 13203 (d) of P.L.
103-66, P.L.
103-296, P.L.
103-337, P.L.
103-465,
14P.L.
104-7, P.L.
104-117, P.L.
104-188, excluding sections 1123 (b), 1202 (c), 1204
15(f), 1311, and 1605 (d) of P.L.
104-188, P.L.
104-191, P.L.
104-193, P.L.
105-33,
16P.L.
105-34, P.L.
105-178, P.L.
105-206, P.L.
105-277, P.L.
106-36, P.L.
106-170,
17P.L.
106-230, P.L.
106-554, excluding sections 162 and 165 of P.L.
106-554, P.L.
18107-15, P.L.
107-16, excluding section 431 of P.L.
107-16, P.L.
107-22, P.L.
19107-116, P.L.
107-134, P.L.
107-147, excluding section 101 of P.L.
107-147, P.L.
20107-181, P.L.
107-210, P.L.
107-276, P.L.
107-358, P.L.
108-27, excluding
21sections 106, 201, and 202 of P.L.
108-27, P.L.
108-121, excluding section 109 of
22P.L.
108-121, P.L.
108-173, excluding section 1201 of P.L.
108-173, P.L.
108-203,
23P.L.
108-218, P.L.
108-311, excluding sections 306, 307, 308, 401, and 403 (a) of
24P.L.
108-311, P.L.
108-357, excluding sections 101, 201, 244, 336, 337, 909, and
25910 of P.L.
108-357, and P.L.
108-476. The Internal Revenue Code applies for
1Wisconsin purposes at the same time as for federal purposes. Amendments to the
2federal Internal Revenue Code enacted after December 31, 2003, do not apply to
3this paragraph with respect to taxable years beginning after December 31,
2003,
4and before January 1, 2005, except that changes to the Internal Revenue Code
5made by P.L.
108-203, P.L.
108-218, P.L.
108-311, excluding sections 306, 307,
6308, 401, and 403 (a) of P.L.
108-311, P.L.
108-357, excluding sections 101, 201,
7244, 336, 337, 909, and 910 of P.L.
108-357, and P.L.
108-476, and changes that
8indirectly affect the provisions applicable to this subchapter made by P.L.
9108-203, P.L.
108-218, P.L.
108-311, excluding sections 306, 307, 308, 401, and
10403 (a) of P.L.
108-311, P.L.
108-357, excluding sections 101, 201, 244, 336, 337,
11909, and 910 of P.L.
108-357, and P.L.
108-476, apply for Wisconsin purposes at
12the same time as for federal purposes.
AB100, s. 1271
13Section
1271. 71.01 (6) (r) of the statutes is created to read:
AB100,623,1714
71.01
(6) (r) For taxable years that begin after December 31, 2004, for natural
15persons and fiduciaries, except fiduciaries of nuclear decommissioning trust or
16reserve funds, "Internal Revenue Code" means the federal Internal Revenue Code
17as amended to December 31, 2004, excluding sections 103, 104, and 110 of P.L.
18102-227, sections 13113, 13150 (d), 13171 (d), 13174, and 13203 (d) of P.L.
103-66,
19sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of P.L.
104-188, sections 1, 3,
204, and 5 of P.L.
106-519, sections 162 and 165 of P.L.
106-554, P.L.
106-573, section
21431 of P.L.
107-16, section 101 of P.L.
107-147, sections 106, 201, and 202 of P.L.
22108-27, section 1201 of P.L.
108-173, sections 306, 308, 401, and 403 (a) of P.L.
23108-311, and sections 101, 201, 244, 336, 337, 909, and 910 of P.L.
108-357, and as
24indirectly affected by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
25101-140, P.L.
101-179, P.L.
101-239, P.L.
101-280, P.L.
101-508, P.L.
102-90, P.L.
1102-227, excluding sections 103, 104, and 110 of P.L.
102-227, P.L.
102-318, P.L.
2102-486, P.L.
103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, and
313203 (d) of P.L.
103-66, P.L.
103-296, P.L.
103-337, P.L.
103-465, P.L.
104-7, P.L.
4104-117, P.L.
104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605
5(d) of P.L.
104-188, P.L.
104-191, P.L.
104-193, P.L.
105-33, P.L.
105-34, P.L.
6105-178, P.L.
105-206, P.L.
105-277, P.L.
106-36, P.L.
106-170, P.L.
106-230, P.L.
7106-554, excluding sections 162 and 165 of P.L.
106-554, P.L.
107-15, P.L.
107-16,
8excluding section 431 of P.L.
107-16, P.L.
107-22, P.L.
107-116, P.L.
107-134, P.L.
9107-147, excluding section 101 of P.L.
107-147, P.L.
107-181, P.L.
107-210, P.L.
10107-276, P.L.
107-358, P.L.
108-27, excluding sections 106, 201, and 202 of P.L.
11108-27, P.L.
108-121, P.L.
108-173, excluding section 1201 of P.L.
108-173, P.L.
12108-203, P.L.
108-218, P.L.
108-311, excluding sections 306, 308, 401, and 403 (a)
13of P.L.
108-311, P.L.
108-357, excluding sections 101, 201, 244, 336, 337, 909, and
14910 of P.L.
108-357, and P.L.
108-476. The Internal Revenue Code applies for
15Wisconsin purposes at the same time as for federal purposes. Amendments to the
16federal Internal Revenue Code enacted after December 31, 2004, do not apply to this
17paragraph with respect to taxable years beginning after December 31, 2004.
AB100, s. 1272
18Section
1272. 71.01 (8g) of the statutes is amended to read:
AB100,623,2019
71.01
(8g) "Member" does not include a member of a limited liability company
20treated as a corporation under s. 71.22
(1) (1k).
AB100, s. 1273
21Section
1273. 71.01 (8m) of the statutes is amended to read:
AB100,623,2322
71.01
(8m) "Partner" does not include a partner of a publicly traded
23partnership treated as a corporation under s. 71.22
(1) (1k).
AB100, s. 1274
24Section
1274. 71.01 (10g) of the statutes is created to read:
AB100,624,4
171.01
(10g) For purposes of s. 71.04 (7) (df), (dg), and (dh), "state" means a state
2of the United States, the District of Columbia, the commonwealth of Puerto Rico, or
3any territory or possession of the United States, unless the context requires that
4"state" means only the state of Wisconsin.
AB100, s. 1275
5Section
1275. 71.03 (1) of the statutes is amended to read:
AB100,625,26
71.03
(1) Definition. In this section, "gross income" means all income, from
7whatever source derived and in whatever form realized, whether in money, property
8or services, which is not exempt from Wisconsin income taxes. "Gross income"
9includes, but is not limited to, the following items: compensation for services,
10including salaries, wages and fees, commissions and similar items; gross income
11derived from business; interest; rents; royalties; dividends; alimony and separate
12maintenance payments; annuities; income from life insurance and endowment
13contracts; pensions; income from discharge of indebtedness; distributive shares of
14partnership gross income except distributive shares of the income of publicly traded
15partnerships treated as corporations under s. 71.22
(1) (1k); distributive shares of
16limited liability company gross income except distributive shares of the income of
17limited liability companies treated as corporations under s. 71.22
(1) (1k); income in
18respect of a decedent; and income from an interest in an estate or trust. "Gross
19income" from a business or farm consists of the total gross receipts without reduction
20for cost of goods sold, expenses or any other amounts. The gross rental amounts
21received from rental properties are included in gross income without reduction for
22expenses or any other amounts. "Gross income" from the sale of securities, property
23or other assets consists of the gross selling price without reduction for the cost of the
24assets, expenses of sale or any other amounts. "Gross income" from an annuity,
1retirement plan or profit sharing plan consists of the gross amount received without
2reduction for the employee's contribution to the annuity or plan.
AB100, s. 1276
3Section
1276. 71.04 (7) (d) of the statutes is repealed.
AB100, s. 1277
4Section
1277. 71.04 (7) (db) of the statutes is created to read:
AB100,625,75
71.04
(7) (db) Gross receipts from the lease, rental, or licensing of real property
6owned by the taxpayer and the sublease of real property are in this state if the real
7property is located in this state.
AB100, s. 1278
8Section
1278. 71.04 (7) (dd) of the statutes is created to read:
AB100,625,209
71.04
(7) (dd) 1. Except as provided in subd. 2., gross receipts from the lease,
10rental, or licensing of tangible personal property owned by the taxpayer and the
11sublease of tangible personal property are in this state if the property is located in
12this state during the entire period of lease, rental, licensing, sublease, or other use.
13If the property is used in and outside this state during the period of lease, rental,
14licensing, or sublease, gross receipts are in this state to the extent that the property
15is used in this state. The proportion of use in this state is determined by multiplying
16the gross receipts from the lease, rental, licensing, sublease, or other use of the
17property by a fraction having as a numerator the amount of time the property was
18used in this state in the taxable year and having as a denominator the total time the
19property was used in all states having jurisdiction to impose an income tax on the
20taxpayer in the taxable year.
AB100,625,2521
2. Gross receipts from the lease, rental, or licensing of moving property,
22including motor vehicles, rolling stock, aircraft, vessels, or mobile equipment, owned
23by the taxpayer and the sublease of moving property are in this state to the extent
24that the property is used in this state. The proportion of use of moving property in
25this state is determined as follows:
AB100,626,7
1a. The proportion of use of a motor vehicle or rolling stock in this state is
2determined by multiplying the gross receipts from the lease, rental, licensing, or
3sublease of the motor vehicle or rolling stock by a fraction having as a numerator the
4number of miles traveled within this state by the motor vehicle or rolling stock while
5leased, rented, licensed, or subleased in the taxable year and having as a
6denominator the total number of miles traveled by the motor vehicle or rolling stock
7while leased, rented, licensed, or subleased in the taxable year.
AB100,626,138
b. The proportion of use of an aircraft in this state is determined by multiplying
9the gross receipts from the lease, rental, licensing, or sublease of the aircraft by a
10fraction having as a numerator the number of takeoffs and landings of the aircraft
11in this state while leased, rented, licensed, or subleased in the taxable year and
12having as a denominator the total number of takeoffs and landings of the aircraft
13while leased, rented, licensed, or subleased in the taxable year.
AB100,626,2014
c. The proportion of use of a vessel or mobile equipment in this state is
15determined by multiplying the gross receipts from the lease, rental, licensing, or
16sublease of the vessel or mobile equipment by a fraction having as a numerator the
17number of days that the vessel or mobile equipment is in this state while leased,
18rented, licensed, or subleased in the taxable year and having as a denominator the
19total number of days that the vessel or mobile equipment is leased, rented, licensed,
20or subleased in the taxable year.
AB100,626,2521
d. If the taxpayer is unable to determine the use of moving property under subd.
222. a., b., or c. while the property is leased, rented, licensed, or subleased in the taxable
23year, the moving property is conclusively deemed to be used in the state in which the
24property is located at the time that the lessee, renter, licensee, or sublessee takes
25possession of the property in the taxable year.
AB100, s. 1279
1Section
1279. 71.04 (7) (df) of the statutes is created to read:
AB100,627,42
71.04
(7) (df) 1. Gross receipts from the use of computer software are in this
3state if the purchaser or licensee uses the computer software at a location in this
4state.
AB100,627,155
2. Computer software is used at a location in this state if the purchaser or
6licensee uses the computer software in the regular course of business operations in
7this state, for personal use in this state, or if the purchaser or licensee is an individual
8whose domicile is in this state. If the purchaser or licensee uses the computer
9software in more than one state, the gross receipts shall be divided among those
10states having jurisdiction to impose an income tax on the taxpayer in proportion to
11the use of the computer software in those states. To determine computer software
12use in this state, the department may consider the number of users in each state
13where the computer software is used, the number of site licenses or workstations in
14this state, and any other factors that reflect the use of computer software in this
15state.
AB100,627,1916
3. If the taxpayer is not subject to income tax in the state in which the gross
17receipts are considered received under this paragraph, but the taxpayer's
18commercial domicile is in this state, 50 percent of those gross receipts shall be
19included in the numerator of the sales factor.
AB100, s. 1280
20Section
1280. 71.04 (7) (dg) of the statutes is created to read:
AB100,628,221
71.04
(7) (dg) 1. Gross royalties and other gross receipts received for the sale
22or use of intangible property, including, but not limited to, patents, copyrights,
23trademarks, trade names, service names, franchises, licenses, plans, specifications,
24blueprints, processes, techniques, formulas, designs, layouts, patterns, drawings,
1manuals, technical know-how, contracts, and customer lists, are in this state if the
2user, purchaser, or licensee uses the intangible property at a location in this state.
AB100,628,133
2. Intangible property is used at a location in this state if the user, purchaser,
4or licensee uses the property in the operation of a trade or business at a location in
5this state, for personal use in this state, or if the user, purchaser, or licensee is an
6individual whose domicile is in this state. If the user, purchaser, or licensee uses the
7intangible property in more than one state, the gross royalties and other gross
8receipts from the sale or use of the intangible property shall be divided among those
9states having jurisdiction to impose an income tax on the taxpayer in proportion to
10the use of the intangible property in those states. To determine intangible property
11use in this state, the department may consider the number of licensed sites in each
12state, the volume of property manufactured, produced, or sold at locations in this
13state, or any other factors that reflect the use of the intangible property in this state.
AB100,628,1714
3. If the taxpayer is not subject to income tax in the state in which the gross
15royalties or other gross receipts are considered received under this paragraph, but
16the taxpayer's commercial domicile is in this state, 50 percent of those gross royalties
17or other gross receipts shall be included in the numerator of the sales factor.
AB100, s. 1281
18Section
1281. 71.04 (7) (dh) of the statutes is created to read:
AB100,628,2019
71.04
(7) (dh) 1. Gross receipts from services are in this state if the purchaser
20of the service received the benefit of the service in this state.
AB100,628,2121
2. The benefit of a service is received in this state if any of the following applies:
AB100,628,2222
a. The service relates to real property that is located in this state.
AB100,628,2523
b. The service relates to tangible personal property that is located in this state
24at the time that the service is received or tangible personal property that is delivered
25directly or indirectly to customers in this state.
AB100,629,2
1c. The service is provided to an individual who is physically present in this state
2at the time that the service is received.
AB100,629,43
d. The service is provided to a person engaged in a trade or business in this state
4and relates to that person's business in this state.
AB100,629,85
3. If the purchaser of a service receives the benefit of a service in more than one
6state, the gross receipts from the performance of the service are included in the
7numerator of the sales factor according to the portion of the service received in this
8state.
AB100,629,149
4. If the taxpayer is not subject to income tax in the state in which the benefit
10of the service is received, the benefit of the service is received in this state to the
11extent that the taxpayer's employees or representatives performed services from a
12location in this state. Fifty percent of the taxpayer's receipts that are considered
13received in this state under this paragraph shall be included in the numerator of the
14sales factor.
AB100, s. 1282
15Section
1282. 71.04 (7) (dm) of the statutes is created to read:
AB100,629,1916
71.04
(7) (dm) If the income from sales, other than sales of tangible personal
17property, properly assignable to this state cannot be ascertained with reasonable
18certainty by the methods under pars. (db), (dd), (df), (dg), and (dh), the department
19may promulgate rules that specify how the income shall be apportioned.
AB100, s. 1283
20Section
1283. 71.04 (7) (e) 12. of the statutes is created to read:
AB100,629,2221
71.04
(7) (e) 12. Gross receipts from the sale, licensing, or use of intangible
22property in the ordinary course of the taxpayer's trade or business.
AB100, s. 1284
23Section
1284. 71.04 (7) (f) 5. of the statutes is amended to read:
AB100,629,2524
71.04
(7) (f) 5.
Proceeds Notwithstanding any other provision of this
25subsection, proceeds and gain or loss from the redemption of securities.
AB100, s. 1285
1Section
1285. 71.04 (7) (f) 7. of the statutes is amended to read:
AB100,630,32
71.04
(7) (f) 7. Gross receipts and gain or loss from the sale of intangible assets,
3except those under par. (e) 1.
and 12.
AB100, s. 1286
4Section
1286. 71.04 (7) (f) 9. of the statutes is amended to read:
AB100,630,65
71.04
(7) (f) 9.
Gross Notwithstanding any other provision of this subsection,
6gross receipts and gain or loss from the sale
or exchange of securities.
AB100, s. 1287
7Section
1287. 71.05 (6) (b) 28. (intro.) of the statutes is amended to read:
AB100,630,148
71.05
(6) (b) 28. (intro.) An amount paid by a claimant for tuition expenses for
9a student who is the claimant or who is the claimant's child and the claimant's
10dependent who is claimed under section
151 (c) of the Internal Revenue Code, to
11attend any university, college, technical college or a school approved under s.
45.54 1238.50, that is located in Wisconsin or to attend a public vocational school or public
13institution of higher education in Minnesota under the Minnesota-Wisconsin
14reciprocity agreement under s. 39.47, calculated as follows:
AB100, s. 1288
15Section
1288. 71.05 (6) (b) 28. a. of the statutes is amended to read:
AB100,630,2016
71.05
(6) (b) 28. a. An amount equal to not more than
$3,000 $5,100, or twice
17the average amount charged by the board of regents of the University of Wisconsin
18System at 4-year institutions for resident undergraduate academic fees for the most
19recent fall semester, as determined by the board of regents by September 1 of that
20semester, whichever is greater, per student for each year to which the claim relates.
AB100, s. 1289
21Section
1289. 71.05 (22) (f) 4. a. of the statutes is amended to read:
AB100,631,222
71.05
(22) (f) 4. a. For taxable years beginning after December 31, 1997, in the
23case of a taxpayer with respect to whom a
deduction
exemption under
s. 71.07 (8) sub.
24(23) (b) 2. is allowable to another person, the Wisconsin standard deduction shall be
1the lesser of the amount under subd. 4. b. or one of the amounts calculated under
2subd. 4. c., whichever amount under subd. 4. c. is greater.
AB100, s. 1290
3Section
1290. 71.05 (22) (g) of the statutes is amended to read:
AB100,631,134
71.05
(22) (g)
Nonresidents. With respect to nonresident natural persons
5deriving income from property located, business transacted or personal or
6professional services performed in this state, including natural persons changing
7their domicile into or from this state, the Wisconsin standard deduction and itemized
8deductions are based on federal adjusted gross income
, and as provided in par. (f) 4., 9and are limited by such fraction of that amount as Wisconsin adjusted gross income
10is of federal adjusted gross income. In this paragraph, for married persons filing
11separately "adjusted gross income" means the separate adjusted gross income of
12each spouse, and for married persons filing jointly "adjusted gross income" means the
13total adjusted gross income of both spouses.
AB100, s. 1291
14Section
1291. 71.05 (22) (h) of the statutes is amended to read:
AB100,631,2415
71.05
(22) (h)
Part-year residents. If a person and that person's spouse are not
16both domiciled in this state during the entire taxable year, the Wisconsin standard
17deduction or itemized deduction on a joint return is determined by multiplying the
18Wisconsin standard deduction or itemized deduction, each calculated on the basis of
19federal adjusted gross income,
and as provided in par. (f) 4., by a fraction the
20numerator of which is their joint Wisconsin adjusted gross income and the
21denominator of which is their joint federal adjusted gross income. For a married
22person who is not domiciled in this state for the entire taxable year and who files a
23separate return, the Wisconsin standard deduction and itemized deduction are
24determined under par. (g).
AB100, s. 1292
25Section
1292. 71.07 (2dd) (a) 1. of the statutes is amended to read:
AB100,632,4
171.07
(2dd) (a) 1. "Day care center benefits" means benefits provided at a day
2care facility that is licensed under s.
48.65 or 48.69
49.98 or 49.99 and that for
3compensation provides care for at least 6 children or benefits provided at a facility
4for persons who are physically or mentally incapable of caring for themselves.
AB100, s. 1293
5Section
1293. 71.07 (2di) (b) 1. of the statutes is repealed.
AB100, s. 1294
6Section
1294. 71.07 (2dL) (c) 1. of the statutes is repealed.
AB100, s. 1295
7Section
1295. 71.07 (2dL) (c) 2. of the statutes is renumbered 71.07 (2dL) (c).
AB100, s. 1296
8Section
1296. 71.07 (2dL) (d) of the statutes is amended to read:
AB100,632,119
71.07
(2dL) (d) Except as provided in par. (c)
2., the carry-over provisions of
10s. 71.28 (4) (e) and (f) as they relate to the credit under s. 71.28 (4) relate to the credit
11under this subsection and apply as if the development zone continued to exist.
AB100, s. 1297
12Section
1297. 71.07 (2dm) (hm) of the statutes is amended to read:
AB100,632,2013
71.07
(2dm) (hm)
Credits claimed
A claimant may claim the credit under this
14subsection, including any credits carried over,
may be offset only against the amount
15of the tax otherwise due under this subchapter
attributable to income from the
16business operations of the claimant in the development zone; except that a claimant
17in a development zone under s. 560.795 (1) (e) may offset credits, including any
18credits carried over, against the amount of the tax otherwise due under this
19subchapter attributable to all of the claimant's income; and against the tax
20attributable to income from directly related business operations of the claimant.
AB100, s. 1298
21Section
1298. 71.07 (2dr) (a) of the statutes is amended to read:
AB100,633,1922
71.07
(2dr) (a)
Credit. Any person may credit against taxes otherwise due
23under this chapter an amount equal to 5% of the amount obtained by subtracting
24from the person's qualified research expenses, as defined in section
41 of the internal
25revenue code, except that "qualified research expenses" include only expenses
1incurred by the claimant in a development zone under subch. VI of ch. 560, except
2that a taxpayer may elect the alternative computation under section
41 (c) (4) of the
3Internal Revenue Code and that election applies until the department permits its
4revocation and except that "qualified research expenses" do not include
5compensation used in computing the credit under sub. (2dj) nor research expenses
6incurred before the claimant is certified for tax benefits under s. 560.765 (3), the
7person's base amount, as defined in section
41 (c) of the internal revenue code, in a
8development zone, except that gross receipts used in calculating the base amount
9means gross receipts from sales attributable to Wisconsin under s. 71.04 (7) (b) 1. and
102.
and (d), (db), (dd), (df), (dg), (dh), and (dm) and research expenses used in
11calculating the base amount include research expenses incurred before the claimant
12is certified for tax benefits under s. 560.765 (3), in a development zone, if the claimant
13submits with the claimant's return a copy of the claimant's certification for tax
14benefits under s. 560.765 (3) and a statement from the department of commerce
15verifying the claimant's qualified research expenses for research conducted
16exclusively in a development zone. The rules under s. 73.03 (35) apply to the credit
17under this paragraph. The rules under sub. (2di) (f) and (g), as they apply to the
18credit under that subsection, apply to claims under this paragraph. Section
41 (h)
19of the internal revenue code does not apply to the credit under this paragraph.
AB100, s. 1299
20Section
1299. 71.07 (2dx) (a) 5. of the statutes is amended to read:
AB100,634,921
71.07
(2dx) (a) 5. "Member of a targeted group" means a person who resides
22in an
empowerment zone, or an enterprise community, that the U.S. government
23designates area designated by the federal government as an economic revitalization
24area, a person who is employed in an unsubsidized job but meets the eligibility
25requirements under s. 49.145 (2) and (3) for a Wisconsin
works Works employment
1position, a person who is employed in a trial job, as defined in s. 49.141 (1) (n), a
2person who is eligible for child care assistance under s. 49.155, a person who is a
3vocational rehabilitation referral, an economically disadvantaged youth, an
4economically disadvantaged veteran, a supplemental security income recipient, a
5general assistance recipient, an economically disadvantaged ex-convict, a qualified
6summer youth employee, as defined in
26 USC 51 (d) (7), a dislocated worker, as
7defined in
29 USC 2801 (9), or a food stamp recipient
;
, if the person has been certified
8in the manner under sub. (2dj) (am) 3. by a designated local agency, as defined in sub.
9(2dj) (am) 2.
AB100, s. 1300
10Section
1300. 71.07 (2dx) (b) (intro.) of the statutes is amended to read:
AB100,634,1611
71.07
(2dx) (b)
Credit. (intro.) Except as provided in pars. (be) and (bg) and
12in s. 73.03 (35), and subject to s. 560.785, for any taxable year for which the person
13is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3),
14560.797 (4) or 560.798 (3), any person may claim as a credit against
the taxes
imposed 15on the person's income from the person's business activities in a development zone 16otherwise due under this chapter the following amounts:
AB100, s. 1301
17Section
1301. 71.07 (2dx) (b) 2. of the statutes is amended to read:
AB100,634,2218
71.07
(2dx) (b) 2. The amount determined by multiplying the amount
19determined under s. 560.785 (1) (b) by the number of full-time jobs created in a
20development zone and filled by a member of a targeted group and by then subtracting
21the subsidies paid under s. 49.147 (3) (a)
or the subsidies and reimbursements paid
22under s. 49.147 (3) (d) 5. for those jobs.
AB100, s. 1302
23Section
1302. 71.07 (2dx) (b) 3. of the statutes is amended to read:
AB100,635,324
71.07
(2dx) (b) 3. The amount determined by multiplying the amount
25determined under s. 560.785 (1) (c) by the number of full-time jobs created in a
1development zone and not filled by a member of a targeted group and by then
2subtracting the subsidies paid under s. 49.147 (3) (a)
or the subsidies and
3reimbursements paid under s. 49.147 (3) (d) 5. for those jobs.
AB100, s. 1303
4Section
1303. 71.07 (2dx) (b) 4. of the statutes is amended to read:
AB100,635,115
71.07
(2dx) (b) 4. The amount determined by multiplying the amount
6determined under s. 560.785 (1) (bm) by the number of full-time jobs retained, as
7provided in the rules under s. 560.785, excluding jobs for which a credit has been
8claimed under sub. (2dj), in an enterprise development zone under s. 560.797 and for
9which significant capital investment was made and by then subtracting the
10subsidies paid under s. 49.147 (3) (a)
or the subsidies and reimbursements paid
11under s. 49.147 (3) (d) 5. for those jobs.
AB100, s. 1304
12Section
1304. 71.07 (2dx) (b) 5. of the statutes is amended to read:
AB100,635,1813
71.07
(2dx) (b) 5. The amount determined by multiplying the amount
14determined under s. 560.785 (1) (c) by the number of full-time jobs retained, as
15provided in the rules under s. 560.785, excluding jobs for which a credit has been
16claimed under sub. (2dj), in a development zone and not filled by a member of a
17targeted group and by then subtracting the subsidies paid under s. 49.147 (3) (a)
or
18the subsidies and reimbursements paid under s. 49.147 (3) (d) 5. for those jobs.
AB100, s. 1305
19Section
1305. 71.07 (3m) (a) 1. b. of the statutes is amended to read:
AB100,635,2320
71.07
(3m) (a) 1. b. For partnerships except publicly traded partnerships
21treated as corporations under s. 71.22
(1) (1k), or limited liability companies, except
22limited liability companies treated as corporations under s. 71.22
(1) (1k), "claimant"
23means each individual partner or member.
AB100, s. 1306
24Section
1306. 71.07 (3n) (title) of the statutes is amended to read:
