AB40-ASA1,1290 6Section 1290. 71.01 (6) (p) of the statutes is renumbered 71.01 (6) (a).
AB40-ASA1,1291 7Section 1291. 71.01 (6) (q) of the statutes is renumbered 71.01 (6) (b).
AB40-ASA1,1292 8Section 1292. 71.01 (6) (r) of the statutes is renumbered 71.01 (6) (c).
AB40-ASA1,1293 9Section 1293. 71.01 (6) (s) of the statutes is renumbered 71.01 (6) (d).
AB40-ASA1,1294 10Section 1294. 71.01 (6) (t) of the statutes is renumbered 71.01 (6) (e).
AB40-ASA1,1295 11Section 1295. 71.01 (6) (u) of the statutes is renumbered 71.01 (6) (f).
AB40-ASA1,1296 12Section 1296. 71.01 (6) (um) of the statutes is renumbered 71.01 (6) (g).
AB40-ASA1,1297 13Section 1297. 71.01 (6) (un) of the statutes is renumbered 71.01 (6) (h) and
14amended to read:
AB40-ASA1,700,2215 71.01 (6) (h) For taxable years that begin after December 31, 2010, and before
16January 1, 2013,
for natural persons and fiduciaries, except fiduciaries of nuclear
17decommissioning trust or reserve funds, "Internal Revenue Code" means the federal
18Internal Revenue Code as amended to December 31, 2010, excluding sections 103,
19104, and 110 of P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174, and 13203
20(d) of P.L. 103-66, sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of P.L.
21104-188, sections 1, 3, 4, and 5 of P.L. 106-519, sections 162 and 165 of P.L. 106-554,
22P.L. 106-573, section 431 of P.L. 107-16, sections 101 and 301 (a) of P.L. 107-147,
23sections 106, 201, and 202 of P.L. 108-27, section 1201 of P.L. 108-173, sections 306,
24308, 316, 401, and 403 (a) of P.L. 108-311, sections 101, 102, 201, 211, 242, 244, 336,
25337, 422, 847, 909, and 910 of P.L. 108-357, P.L. 109-1, sections 1305, 1308, 1309,

11310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of P.L. 109-58, section
211146 of P.L. 109-59, section 301 of P.L. 109-73, sections 101, 105, 201 (a) as it relates
3to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of P.L. 109-135, sections 101,
4207, 503, and 513 of P.L. 109-222, P.L. 109-432, except sections 117, 406, 409, 410,
5412, 417, 418, 424, and 425 of division A and section 403 of division C of P.L. 109-432,
6P.L. 110-28, except sections 8215, 8231, 8232, 8234, and 8236 of P.L. 110-28, P.L.
7110-140, sections 2, 3, and 5 of P.L. 110-142, P.L. 110-166, sections 3 (b) and 11 (b),
8(e), and (g) of P.L. 110-172, P.L. 110-185, P.L. 110-234, section 301 of P.L. 110-245,
9P.L. 110-246, except sections 4, 15312, 15313, 15314, 15316, and 15342 of P.L.
10110-246, sections 3071, 3081, and 3082 of P.L. 110-289, section 9 (e) of P.L. 110-317,
11P.L. 110-343, except sections 116, 208, 211, and 301 of division B and sections 313
12and 504 of division C of P.L. 110-343, P.L. 111-5, except sections 1261, 1262, 1401,
131402, 1521, 1522, 1531, and 1541 of division B of P.L. 111-5, section 201 of P.L.
14111-147, P.L. 111-148, except sections 1322, 1515, 9003, 9021, 9022, 10108, 10908,
15and 10909 of P.L. 111-148, P.L. 111-152, except section 1407 of P.L. 111-152, P.L.
16111-203, except section 1601 of P.L. 111-203, P.L. 111-226, except sections 215 and
17217 of P.L. 111-226, P.L. 111-240, except sections 2014, 2043, 2111, 2112, and 2113
18of P.L. 111-240, and P.L. 111-312, and as amended by section 902 of P.L. 112-240,
19and as indirectly affected by P.L. 99-514, P.L. 100-203, P.L. 100-647, P.L. 101-73,
20P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-280, P.L. 101-508, P.L. 102-90,
21P.L. 102-227, excluding sections 103, 104, and 110 of P.L. 102-227, P.L. 102-318, P.L.
22102-486, P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, and
2313203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L. 104-7, P.L.
24104-117, P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605
25(d) of P.L. 104-188, P.L. 104-191, P.L. 104-193, P.L. 105-33, P.L. 105-34, P.L.

1105-178, P.L. 105-206, P.L. 105-277, P.L. 106-36, P.L. 106-170, P.L. 106-230, P.L.
2106-554, excluding sections 162 and 165 of P.L. 106-554, P.L. 107-15, P.L. 107-16,
3excluding section 431 of P.L. 107-16, P.L. 107-22, P.L. 107-116, P.L. 107-134, P.L.
4107-147, excluding sections 101 and 301 (a) of P.L. 107-147, P.L. 107-181, P.L.
5107-210, P.L. 107-276, P.L. 107-358, P.L. 108-27, excluding sections 106, 201, and
6202 of P.L. 108-27, P.L. 108-121, P.L. 108-173, excluding section 1201 of P.L.
7108-173, P.L. 108-203, P.L. 108-218, P.L. 108-311, excluding sections 306, 308, 316,
8401, and 403 (a) of P.L. 108-311, P.L. 108-357, excluding sections 101, 102, 201, 211,
9242, 244, 336, 337, 422, 847, 909, and 910 of P.L. 108-357, P.L. 108-375, P.L. 108-476,
10P.L. 109-7, P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325,
111326, 1328, 1329, 1348, and 1351 of P.L. 109-58, P.L. 109-59, excluding section 11146
12of P.L. 109-59, P.L. 109-73, excluding section 301 of P.L. 109-73, P.L. 109-135,
13excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e),
14(j), and (q), and 405 of P.L. 109-135, P.L. 109-151, P.L. 109-222, excluding sections
15101, 207, 503, and 513 of P.L. 109-222, P.L. 109-227, P.L. 109-280, sections 117, 406,
16409, 410, 412, 417, 418, 424, and 425 of division A and section 403 of division C of P.L.
17109-432, sections 8215, 8231, 8232, 8234, and 8236 of P.L. 110-28, P.L. 110-141, P.L.
18110-142, excluding sections 2, 3, and 5 of P.L. 110-142, P.L. 110-172, excluding
19sections 3 (b) and 11 (b), (e), and (g) of P.L. 110-172, P.L. 110-245, excluding section
20301 of P.L. 110-245, sections 4, 15312, 15313, 15314, 15316, and 15342 of P.L.
21110-246, P.L. 110-289, excluding sections 3071, 3081, and 3082 of P.L. 110-289, P.L.
22110-317, excluding section 9 (e) of P.L. 110-317, sections 116, 208, 211, and 301 of
23division B and sections 313 and 504 of division C of P.L. 110-343, P.L. 110-351, P.L.
24110-458, sections 1261, 1262, 1401, 1402, 1521, 1522, 1531, and 1541 of division B
25of P.L. 111-5, P.L. 111-92, P.L. 111-147, excluding section 201 of P.L. 111-147,

1sections 1322, 1515, 9003, 9021, 9022, 10108, 10908, and 10909 of P.L. 111-148,
2section 1407 of P.L. 111-152, P.L. 111-192, section 1601 of P.L. 111-203, sections 215
3and 217 of P.L. 111-226, sections 2014, 2043, 2111, 2112, and 2113 of P.L. 111-240,
4and P.L. 111-325, and section 902 of P.L. 112-240. The Internal Revenue Code
5applies for Wisconsin purposes at the same time as for federal purposes, except that
6changes made by section 209 of P.L. 109-222, sections 117, 406, 409, 410, 412, 417,
7418, 424, and 425 of division A and section 403 of division C of P.L. 109-432, sections
88215, 8231, 8232, 8234, and 8236 of P.L. 110-28, P.L. 110-141, P.L. 110-142,
9excluding sections 2, 3, and 5 of P.L. 110-142, P.L. 110-172, excluding sections 3 (b)
10and 11 (b), (e), and (g) of P.L. 110-172, sections 110 and 113 of P.L. 110-245, sections
1115312, 15313, 15314, and 15342 of P.L. 110-246, sections 3031, 3032, 3033, 3041,
123051, 3052, 3061, and 3092 of P.L. 110-289, P.L. 110-317, excluding section 9 (e) of
13P.L. 110-317, sections 116, 208, and 211 of division B and section 504 of division C
14of P.L. 110-343, section 14 of P.L. 111-92, sections 531, 532, and 533 of P.L. 111-147,
15sections 10908 and 10909 of P.L. 111-148, and section 2043 of P.L. 111-240 do not
16apply for taxable years beginning before January 1, 2011. Amendments to the
17federal Internal Revenue Code enacted after December 31, 2010, do not apply to this
18paragraph with respect to taxable years beginning after December 31, 2010, and
19before January 1, 2013, except that changes to the Internal Revenue Code made by
20section 902 of P.L. 112-240, and changes that indirectly affect the provisions
21applicable to this subchapter made by section 902 of P.L. 112-240, apply for
22Wisconsin purposes at the same time as for federal purposes
.
AB40-ASA1,1297d 23Section 1297d. 71.01 (7r) (a) of the statutes is amended to read:
AB40-ASA1,701,624 71.01 (7r) (a) Notwithstanding sub. (6), and except as provided in par. (b) for
25taxable years beginning before January 1, 2014
, for purposes of computing

1amortization or depreciation, "Internal Revenue Code" means the federal Internal
2Revenue Code as amended to December 31, 2000, except that property that, under
3s. 71.02 (2) (d) 12., 1985 stats., is required to be depreciated for taxable year 1986
4under the Internal Revenue Code as amended to December 31, 1980, shall continue
5to be depreciated under the Internal Revenue Code as amended to
6December 31, 1980.
AB40-ASA1,1297e 7Section 1297e. 71.01 (7r) (b) of the statutes is repealed.
AB40-ASA1,1297f 8Section 1297f. 71.01 (7r) (c) of the statutes is amended to read:
AB40-ASA1,701,169 71.01 (7r) (c) Notwithstanding sub. (6), section 101 of P.L. 109-222, related to
10extending the increased expense deduction under section 179 of the Internal
11Revenue Code, applies to property used in farming that is acquired and placed in
12service in taxable years beginning on or after December 31, 2007, and before January
131, 2008 2010, and used by a person who is actively engaged in farming. For purposes
14of this paragraph, "actively engaged in farming" has the meaning given in 7 CFR
151400.201
, and "farming" has the meaning given in section 464 (e) (1) of the Internal
16Revenue Code.
AB40-ASA1,1297h 17Section 1297h. 71.01 (10) (intro.) of the statutes is amended to read:
AB40-ASA1,701,2318 71.01 (10) (intro.) "Small business stock" means an equity security, sold before
19January 1, 2014,
that the taxpayer has held for at least 5 years and that is issued by
20a corporation that, on the December 31 before acquisition by the taxpayer, or, for a
21corporation which was incorporated during the calendar year in which the stock is
22issued, as of the date of the acquisition of the stock, fulfills all of the following
23requirements and so certifies to the taxpayer upon acquisitions:
AB40-ASA1,1298 24Section 1298. 71.05 (1) (c) 11. of the statutes is created to read:
AB40-ASA1,702,6
171.05 (1) (c) 11. The Wisconsin Health and Educational Facilities Authority
2under s. 231.03 (6), if the bonds or notes are issued for the benefit of a person who
3is eligible to receive the proceeds of bonds or notes from another entity for the same
4purpose for which the bonds or notes are issued under s. 231.03 (6) and the interest
5income received from the other bonds or notes is exempt from taxation under this
6subchapter.
AB40-ASA1,1298n 7Section 1298n. 71.05 (6) (a) 10. of the statutes is amended to read:
AB40-ASA1,703,48 71.05 (6) (a) 10. For the taxable year years beginning before January 1, 2014,
9for a person who is not "actively engaged in farming," as that term is used in 7 CFR
101400.201
, combined net losses, exclusive of net gains from the sale or exchange of
11capital or business assets and exclusive of net profits, from businesses, from rents,
12from partnerships, from limited liability companies, from S corporations, from
13estates, or from trusts, under section 165 of the Internal Revenue Code, except losses
14allowable under sections 1211 and 1231 of the Internal Revenue Code, otherwise
15includable in calculating Wisconsin income if those losses are incurred in the
16operation of a farming business, as defined in section 464 (e) 1. of the Internal
17Revenue Code to the extent that those combined net losses exceed $20,000 if nonfarm
18Wisconsin adjusted gross income exceeds $55,000 but does not exceed $75,000,
19exceed $17,500 if nonfarm Wisconsin adjusted gross income exceeds $75,000 but does
20not exceed $100,000, exceed $15,000 if nonfarm Wisconsin adjusted gross income
21exceeds $100,000 but does not exceed $150,000, exceed $12,500 if nonfarm Wisconsin
22adjusted gross income exceeds $150,000 but does not exceed $200,000, exceed
23$10,000 if nonfarm Wisconsin adjusted gross income exceeds $200,000 but does not
24exceed $250,000, exceed $7,500 if nonfarm Wisconsin adjusted gross income exceeds
25$250,000 but does not exceed $300,000, exceed $5,000 if nonfarm Wisconsin adjusted

1gross income exceeds $300,000 but does not exceed $600,000, and exceed $0 if
2nonfarm adjusted gross income exceeds $600,000, except that the amounts
3applicable to married persons filing separately are 50% of the amounts specified in
4this subdivision.
AB40-ASA1,1298p 5Section 1298p. 71.05 (6) (a) 15. of the statutes is amended to read:
AB40-ASA1,703,126 71.05 (6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the
7credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds),
8(2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (4k), (4n), (5e),
9(5f), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (8r) and not passed through by a
10partnership, limited liability company, or tax-option corporation that has added that
11amount to the partnership's, company's, or tax-option corporation's income under s.
1271.21 (4) or 71.34 (1k) (g).
AB40-ASA1,1298s 13Section 1298s. 71.05 (6) (b) 6. of the statutes is amended to read:
AB40-ASA1,703,1914 71.05 (6) (b) 6. For the original purchaser of small business stock that is
15purchased at the time that the business is incorporated and before January 1, 2014,
16and that is sold before January 1, 2014
, the amount of net capital gains on small
17business stock otherwise subject to the tax under s. 71.02 if the taxpayer has not
18acquired the stock by gift, has not acquired the stock in a stock-for-stock exchange
19and submits with the taxpayer's return a copy of the certification under s. 71.01 (10).
AB40-ASA1,1299 20Section 1299. 71.05 (6) (b) 19. a. of the statutes is amended to read:
AB40-ASA1,704,521 71.05 (6) (b) 19. a. One hundred percent of the amount paid by the person for
22medical care insurance, not including any amount that is paid with a premium
23assistance credit amount under 26 USC 36B
. In this subdivision, "medical care
24insurance" means a medical care insurance policy that covers the person, his or her
25spouse and the person's dependents and provides surgical, medical, hospital, major

1medical or other health service coverage, and includes payments made for medical
2care benefits under a self-insured plan, but "medical care insurance" does not
3include hospital indemnity policies or policies with ancillary benefits such as
4accident benefits or benefits for loss of income resulting from a total or partial
5inability to work because of illness, sickness or injury.
AB40-ASA1,1301 6Section 1301. 71.05 (6) (b) 28. i. of the statutes is created to read:
AB40-ASA1,704,207 71.05 (6) (b) 28. i. For taxable years beginning after December 31, 2012, the
8dollar amounts in subd. 28. b., c., d., and g. shall be increased each year by a
9percentage equal to the percentage change between the U.S. consumer price index
10for all urban consumers, U.S. city average, for the month of August of the previous
11year and the U.S. consumer price index for all urban consumers, U.S. city average,
12for the month of August 2011, as determined by the federal department of labor,
13except that the adjustment may occur only if the resulting amount is greater than
14the corresponding amount that was calculated for the previous year. Each amount
15that is revised under this subd. 28. i. shall be rounded to the nearest multiple of $10
16if the revised amount is not a multiple of $10 or, if the revised amount is a multiple
17of $5, such an amount shall be increased to the next higher multiple of $10. The
18department of revenue shall annually adjust the changes in dollar amounts required
19under this subd. 28. i. and incorporate the changes into the income tax forms and
20instructions.
AB40-ASA1,1302 21Section 1302. 71.05 (6) (b) 35. a. of the statutes is amended to read:
AB40-ASA1,705,622 71.05 (6) (b) 35. a. One hundred percent of the amount paid by the individual
23for medical care insurance, not including any amount that is paid with a premium
24assistance credit amount under 26 USC 36B
. In this subdivision, "medical care
25insurance" means a medical care insurance policy that covers the individual, his or

1her spouse, and the individual's dependents and provides surgical, medical, hospital,
2major medical, or other health service coverage, and includes payments made for
3medical care benefits under a self-insured plan, but "medical care insurance" does
4not include hospital indemnity policies or policies with ancillary benefits such as
5accident benefits or benefits for loss of income resulting from a total or partial
6inability to work because of illness, sickness, or injury.
AB40-ASA1,1303 7Section 1303. 71.05 (6) (b) 38. a. of the statutes is amended to read:
AB40-ASA1,705,178 71.05 (6) (b) 38. a. One hundred percent of the amount paid by the individual
9for medical care insurance, not including any amount that is paid with a premium
10assistance credit amount under 26 USC 36B
. In this subdivision, "medical care
11insurance" means a medical care insurance policy that covers the individual, his or
12her spouse, and the individual's dependents and provides surgical, medical, hospital,
13major medical, or other health service coverage, and includes payments made for
14medical care benefits under a self-insured plan, but "medical care insurance" does
15not include hospital indemnity policies or policies with ancillary benefits such as
16accident benefits or benefits for loss of income resulting from a total or partial
17inability to work because of illness, sickness, or injury.
AB40-ASA1,1304 18Section 1304. 71.05 (6) (b) 42. a. of the statutes is amended to read:
AB40-ASA1,706,319 71.05 (6) (b) 42. a. One hundred percent of the amount paid by the individual
20for medical care insurance, not including any amount that is paid with a premium
21assistance credit amount under 26 USC 36B
. In this subdivision, "medical care
22insurance" means a medical care insurance policy that covers the individual, his or
23her spouse, and the individual's dependents and provides surgical, medical, hospital,
24major medical, or other health service coverage, and includes payments made for
25medical care benefits under a self-insured plan, but "medical care insurance" does

1not include hospital indemnity policies or policies with ancillary benefits such as
2accident benefits or benefits for loss of income resulting from a total or partial
3inability to work because of illness, sickness, or injury.
AB40-ASA1,1304d 4Section 1304d. 71.05 (6) (b) 47. am. of the statutes is amended to read:
AB40-ASA1,706,135 71.05 (6) (b) 47. am. For taxable years beginning after December 31, 2010, and
6before January 1, 2014,
for 2 consecutive taxable years beginning with the taxable
7year in which the claimant's business locates to this state from another state or
8another country and begins doing business in this state, as defined in s. 71.22 (1r),
9and subject to the limitations provided under subd. 47. d. and e., the profit or loss
10from a trade or business as reported on federal income tax return schedules C and
11F or their equivalents, plus ordinary gain or loss on the sale of business assets, as
12determined under s. 71.01 (6), but not less than zero, multiplied by the
13apportionment fraction determined in s. 71.04 (4) and subject to s. 71.04 (7).
AB40-ASA1,1304e 14Section 1304e. 71.05 (6) (b) 47. b. of the statutes is amended to read:
AB40-ASA1,707,1015 71.05 (6) (b) 47. b. With respect to partners and members of limited liability
16companies, for taxable years beginning after December 31, 2010, and before January
171, 2014,
for 2 consecutive taxable years beginning with the taxable year in which the
18partnership's or limited liability company's business locates to this state from
19another state or another country and begins doing business in this state, as defined
20in s. 71.22 (1r), and subject to the limitations provided under subd. 47. d. and e., the
21partner's or member's distributive share of taxable income as calculated under
22section 703 of the Internal Revenue Code; plus the items of income and gain under
23section 702 of the Internal Revenue Code, including taxable state and municipal
24bond interest and excluding nontaxable interest income or dividend income from
25federal government obligations; minus the items of loss and deduction under section

1756702 of the Internal Revenue Code, except items that are not deductible under s.
271.21; plus guaranteed payments to partners under section 707 (c) of the Internal
3Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL),
4(2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t),
5(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), and (8r); and plus or minus, as
6appropriate, transitional adjustments, depreciation differences, and basis
7differences under s. 71.05 (13), (15), (16), (17), and (19), multiplied by the
8apportionment fraction determined in s. 71.04 (4) and subject to s. 71.04 (7) or by
9separate accounting. No amounts subtracted under this subd. 47. b. may be included
10in the modification under par. (b) 9. or 9m.
AB40-ASA1,1304f 11Section 1304f. 71.05 (6) (b) 47. c. of the statutes is amended to read:
AB40-ASA1,707,2212 71.05 (6) (b) 47. c. With respect to shareholders of a tax-option corporation, for
13taxable years beginning after December 31, 2010, and before January 1, 2014, for 2
14consecutive taxable years beginning with the taxable year in which the tax-option
15corporation's business locates to this state from another state or another country and
16begins doing business in this state, as defined in s. 71.22 (1r), and subject to the
17limitations provided under subd. 47. d. and e., the shareholder's distributive share
18of the entity's net income or loss as determined under this chapter, including interest
19income from federal, state, and municipal government obligations, multiplied by the
20apportionment fraction determined in s. 71.25 (6m) and subject to s. 71.25 (9) or by
21separate accounting. No amounts subtracted under this subdivision may be included
22in the modification under par. (b) 9. or 9m.
AB40-ASA1,1304fm 23Section 1304fm. 71.05 (6) (b) 48m. of the statutes is created to read:
AB40-ASA1,708,724 71.05 (6) (b) 48m. For taxable years that begin after December 31, 2012, any
25amount of income received by an individual who is on active duty in the U.S. armed

1forces, as defined in 26 USC 7701 (a) (15), and who dies while on active duty if the
2individual's death occurred while he or she was serving in a combat zone or as a result
3of wounds, disease, or injury incurred while serving in a combat zone. The
4subtraction in this subdivision applies to the income that is received by the
5individual in the year in which he or she dies, and in the year immediately preceding
6that year if the individual has not filed a return for the year before the year in which
7he or she dies.
AB40-ASA1,1304g 8Section 1304g. 71.05 (6) (b) 49. of the statutes is created to read:
AB40-ASA1,708,129 71.05 (6) (b) 49. a. Subject to the definitions provided in subd. 49. b. to g. and
10the limitations specified in subd. 49. h. to j. for taxable years beginning after
11December 31, 2013, tuition expenses that are paid by a claimant for tuition for a pupil
12to attend an eligible institution.
AB40-ASA1,708,1513 b. In this subdivision, "claimant" means an individual who claims a pupil as
14a dependent under section 151 (c) of the Internal Revenue Code on his or her tax
15return.
AB40-ASA1,708,1716 c. In this subdivision, "elementary pupil" means an individual who is enrolled
17in grades kindergarten to 8 at an eligible institution.
AB40-ASA1,708,1918 d. In this subdivision, "eligible institution" means a private school, as defined
19in s. 115.001 (3r), that meets all of the criteria under s. 118.165 (1).
AB40-ASA1,708,2020 e. In this subdivision, "pupil" means an elementary pupil or secondary pupil.
AB40-ASA1,708,2221 f. In this subdivision, "secondary pupil" means an individual who is enrolled
22in grades 9 to 12 at an eligible institution.
AB40-ASA1,708,2423 g. In this subdivision, "tuition" means any amount paid by a claimant, in the
24year to which the claim relates, for a pupil's tuition to attend an eligible institution.
AB40-ASA1,709,3
1h. For each elementary pupil, in each year to which the claim relates, the
2maximum amount of tuition expenses which a claimant may subtract under this
3subdivision in a taxable year is $4,000.
AB40-ASA1,709,64 i. For each secondary pupil, in each year to which the claim relates, the
5maximum amount of tuition expenses which a claimant may subtract under this
6subdivision in a taxable year is $10,000.
AB40-ASA1,709,97 j. If an individual is an elementary pupil and a secondary pupil in the same
8taxable year, the claimant may claim the subtraction under this subdivision for only
9one grade for that pupil for that taxable year.
AB40-ASA1,1304gm 10Section 1304gm. 71.05 (6) (b) 50. of the statutes is created to read:
AB40-ASA1,709,1611 71.05 (6) (b) 50. Starting with the first taxable year beginning after December
1231, 2013, and for each of the next 4 taxable years, 20 percent of the amount
13determined by subtracting the combined federal adjusted basis of all depreciated or
14amortized assets as of the last day of the taxable year beginning in 2013 that are also
15being depreciated or amortized for Wisconsin from the combined Wisconsin adjusted
16basis of those assets on the same day.
AB40-ASA1,1304h 17Section 1304h. 71.05 (8) (a) of the statutes is amended to read:
AB40-ASA1,709,2418 71.05 (8) (a) The carry back of losses to reduce income of prior years shall not
19may be permitted for 2 taxable years. There shall be added any amount deducted
20as a federal net operating loss carry-back or carry-over and there shall be subtracted
21for the first taxable year for which the subtraction may be made any Wisconsin net
22operating loss carry-back or carry-forward allowable under par. (b) in an amount not
23in excess of the Wisconsin taxable income computed before the deduction of the
24Wisconsin net operating loss carry-back or carry-forward.
AB40-ASA1,1304he 25Section 1304he. 71.05 (8) (b) of the statutes is amended to read:
AB40-ASA1,710,15
171.05 (8) (b) A Wisconsin net operating loss may be carried back against
2Wisconsin taxable income of the previous 2 years and then
carried forward against
3Wisconsin taxable incomes of the next 15 20 taxable years, if the taxpayer was
4subject to taxation under this chapter in the taxable year in which the loss was
5sustained, to the extent not offset against other income of the year of loss and to the
6extent not offset against Wisconsin modified taxable income of the 2 years preceding
7the loss and
of any year between the loss year and the taxable year for which the loss
8carry-forward is claimed. In this paragraph, "Wisconsin modified taxable income"
9means Wisconsin taxable income with the following exceptions: a net operating loss
10deduction or offset for the loss year or any taxable year before or thereafter is not
11allowed, the deduction for long-term capital gains under subs. (6) (b) 9. and 9m. and
12(25) is not allowed, the amount deductible for losses from sales or exchanges of
13capital assets may not exceed the amount includable in income for gains from sales
14or exchanges of capital assets and "Wisconsin modified taxable income" may not be
15less than zero.
AB40-ASA1,1304i 16Section 1304i. 71.05 (16) of the statutes is amended to read:
AB40-ASA1,710,2117 71.05 (16) Depreciation continuation. Property For taxable years beginning
18before January 1, 2014, property
that, under s. 71.02 (2) (d) 12., 1985 stats., is
19required to be depreciated for taxable year 1986 under the internal revenue code as
20amended to December 31, 1980, shall continue to be depreciated under the internal
21revenue code as amended to December 31, 1980.
AB40-ASA1,1304j 22Section 1304j. 71.05 (17) of the statutes is amended to read:
AB40-ASA1,711,523 71.05 (17) Difference in basis. With For taxable years beginning before
24January 1, 2014, with
respect to depreciable property that, under s. 71.02 (2) (d) 12.,
251985 stats., is required to be depreciated for taxable year 1986 under the internal

1revenue code as amended to December 31, 1980, and that was disposed of in taxable
2year 1986 and thereafter, any difference between the adjusted basis for federal
3income tax purposes and the adjusted basis under this chapter shall be taken into
4account in determining net income or loss in the year or years that the gain or loss
5is reportable under this chapter.
AB40-ASA1,1304m 6Section 1304m. 71.05 (18) of the statutes is amended to read:
AB40-ASA1,711,167 71.05 (18) Carry-over basis precluded. With For taxable years beginning
8before January 1, 2014, with
respect to property that, under s. 71.02 (2) (d) 12., 1985
9stats., is required to be depreciated for taxable year 1986 under the internal revenue
10code as amended to December 31, 1980, and that was acquired in a transaction
11occurring in taxable year 1986 and thereafter in which the adjusted basis of the
12property in the hands of the transferee is the same as the adjusted basis of the
13property in the hands of the transferor, the Wisconsin adjusted basis of that property
14on the date of transfer is the adjusted basis allowable under the depreciation
15provisions of the internal revenue code as defined for Wisconsin purposes for the
16property in the hands of the transferor.
AB40-ASA1,1305 17Section 1305. 71.05 (24) (a) 4. of the statutes is amended to read:
AB40-ASA1,711,1918 71.05 (24) (a) 4. "Qualified new business venture" means a business certified
19under s. 238.20, 2011 stats., or s. 560.2085, 2009 stats.
AB40-ASA1,1306 20Section 1306. 71.05 (24) (b) (intro.) of the statutes is amended to read:
AB40-ASA1,711,2421 71.05 (24) (b) (intro.) For taxable years beginning after December 31, 2010, and
22before January 1, 2014,
a claimant may subtract from federal adjusted gross income
23any amount, up to $10,000,000, of a long-term capital gain if the claimant does all
24of the following:
AB40-ASA1,1307 25Section 1307. 71.05 (25) (title) of the statutes is amended to read:
AB40-ASA1,712,2
171.05 (25) (title) Capital gains exclusion; Wisconsin-source assets qualified
2Wisconsin business
.
AB40-ASA1,1308 3Section 1308. 71.05 (25) (a) 2. of the statutes is amended to read:
AB40-ASA1,712,124 71.05 (25) (a) 2. "Qualifying gain" means the a long-term capital gain under
5the Internal Revenue Code
realized from the sale of any asset which is a Wisconsin
6capital asset in the year it is purchased by the claimant and for at least 2 of the
7subsequent 4 years; that is purchased
an investment made after December 31, 2010;
8that is
, and held for at least 5 uninterrupted years ; and that is treated as a long-term
9gain under the Internal Revenue Code
in a business that for the year of investment
10and at least 2 of the 4 subsequent years was a qualified Wisconsin business
; except
11that a qualifying gain may not include any amount for which the claimant claimed
12a subtraction under sub. (24) (b) or any gain described under sub. (26) (b) 1.
AB40-ASA1,1309 13Section 1309. 71.05 (25) (a) 3. of the statutes is renumbered 71.05 (25) (a) 1s.
14and amended to read:
AB40-ASA1,712,1715 71.05 (25) (a) 1s. "Qualified Wisconsin business" means a business certified by
16the Wisconsin Economic Development Corporation under s. 238.145, 2011 stats., or
17registered with the department under s. 73.03 (69)
.
AB40-ASA1,1310 18Section 1310. 71.05 (25) (a) 4. of the statutes is repealed.
AB40-ASA1,1311 19Section 1311. 71.05 (25) (b) (intro.) of the statutes is renumbered 71.05 (25)
20(b) and amended to read:
AB40-ASA1,713,221 71.05 (25) (b) For taxable years beginning after December 31, 2015, for a
22Wisconsin capital asset that is purchased
an investment in a qualified Wisconsin
23business made
after December 31, 2010, and held for at least 5 uninterrupted years,
24a claimant may subtract from federal adjusted gross income the lesser of one of the

1following amounts
amount of the claimant's qualifying gain in the year to which the
2claim relates
, to the extent that it is not subtracted under sub. (6) (b) 9. or 9m.:
AB40-ASA1,1312 3Section 1312. 71.05 (25) (b) 1. of the statutes is repealed.
AB40-ASA1,1313 4Section 1313. 71.05 (25) (b) 2. of the statutes is repealed.
AB40-ASA1,1314 5Section 1314. 71.05 (26) (title) of the statutes is amended to read:
AB40-ASA1,713,76 71.05 (26) (title) Income tax deferral; long-term Wisconsin capital assets
7qualified Wisconsin business.
AB40-ASA1,1315 8Section 1315. 71.05 (26) (a) 4. of the statutes is amended to read:
AB40-ASA1,713,119 71.05 (26) (a) 4. "Qualified Wisconsin business" means a business certified by
10the Wisconsin Economic Development Corporation under s. 238.146, 2011 stats., or
11registered with the department under s. 73.03 (69)
.
AB40-ASA1,1316 12Section 1316. 71.05 (26) (b) (intro.) of the statutes is amended to read:
AB40-ASA1,713,1513 71.05 (26) (b) (intro.) For taxable years beginning after December 31, 2010, and
14before January 1, 2014,
a claimant may subtract from federal adjusted gross income
15any amount of a long-term capital gain if the claimant does all of the following:
AB40-ASA1,1317 16Section 1317. 71.05 (26) (bm) of the statutes is created to read:
AB40-ASA1,713,1917 71.05 (26) (bm) For taxable years beginning after December 31, 2013, a
18claimant may subtract from federal adjusted gross income any amount of a
19long-term capital gain if the claimant does all of the following:
AB40-ASA1,713,2120 1. Within 180 days after the sale of the asset that generated the gain, invests
21all of the gain in a qualified Wisconsin business.
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