AB40,1261 8Section 1261. 62.234 (6) of the statutes is amended to read:
AB40,628,149 62.234 (6) Applicability of local subdivision regulation. All powers granted
10to a city under s. 236.45 may be exercised by it with respect to construction site
11erosion control at sites where the construction activities do not include the
12construction of a building
described in s. 281.33 (3) (a) 1. a. and b. or with respect to
13storm water management regulation, if the city has or provides a planning
14commission or agency.
AB40,1262 15Section 1262. 62.50 (5) of the statutes is amended to read:
AB40,628,2516 62.50 (5) Examinations. The examinations which the rules and regulations
17provide for shall be public and free to all U.S. citizens with proper limitations as to
18residence, age, health and, subject to ss. 111.321, 111.322 and 111.335, arrest and
19conviction record. The examinations shall be practical in their character and shall
20relate to those matters which fairly test the relative capacity of the candidates to
21discharge the duties of the positions in which they seek employment or to which they
22seek to be appointed and may include tests of manual skill and physical strength.
23The board shall control all examinations and may designate suitable persons, either
24in the official service of the city or not, to conduct such examinations and may change
25such examiners at any time, as seems best.
AB40,1263
1Section 1263. 62.53 of the statutes is repealed.
AB40,1264 2Section 1264. 63.08 (1) (a) of the statutes is amended to read:
AB40,629,153 63.08 (1) (a) Any applicant for an examination under s. 63.05, other than an
4applicant for a deputy sheriff position under s. 59.26 (8) (a), shall be a resident of this
5state before applying for an examination, but the commission may not require any
6period of residency in the county for entrance to an examination or employment in
7the county
. The commission may require an applicant to file a written application
8form which bears upon the applicant's fitness for a vacant position and which the
9commission deems necessary. For a position offering a skilled, technical, or
10professional service, upon a finding that a suitable number of qualified applicants
11cannot be obtained from within the state, the commission may open the examination
12to residents of other states. Residency in this state may be waived for an applicant
13for an examination for a position which requires a license in a health care field. No
14question pertaining to political affiliation or religious faith may be asked of any
15applicant for an examination.
AB40,1265 16Section 1265. 63.25 (1) (a) of the statutes is amended to read:
AB40,629,2117 63.25 (1) (a) For open, competitive examinations and for other examinations
18by which to test applicants for office or for employment as to their practical fitness
19to discharge the duties of the positions which they desire to fill, which examinations
20shall be public and free to all persons with proper limitations as to residence, age,
21health, and, subject to ss. 111.321, 111.322, and 111.335, arrest and conviction record.
AB40,1266 22Section 1266. 66.0304 (1) (b) of the statutes is amended to read:
AB40,630,223 66.0304 (1) (b) "Bond" means any bond, note, or other obligation of a
24commission
issued, acquired, or entered into by a commission under this section,

1including any refunding bond or certificate of participation or lease-purchase,
2installment sale, or other financing agreement.
AB40,1267 3Section 1267. 66.0304 (4) (p) of the statutes is amended to read:
AB40,630,84 66.0304 (4) (p) Purchase bonds issued by or on behalf of, or held by, any
5participant, the any state or a department, authority, or agency of the state, or any
6political subdivision. Bonds purchased under this paragraph may be held by the
7commission or sold, in whole or in part, separately or together with other bonds
8issued by the commission.
AB40,1268 9Section 1268. 66.0304 (11) (bm) of the statutes is created to read:
AB40,630,1510 66.0304 (11) (bm) A project may be located outside of the United States or
11outside a territory of the United States if the borrower, including a co-borrower, of
12proceeds of bonds issued to finance or refinance the project in whole or in part is
13incorporated and has its principal place of business in the United States or a territory
14of the United States. To the extent that this paragraph applies to a borrower, it also
15applies to a participant if the participant is a nongovernmental entity.
AB40,1269 16Section 1269. 66.0304 (11) (e) of the statutes is repealed.
AB40,1270 17Section 1270. 66.0502 of the statutes is created to read:
AB40,630,20 1866.0502 Employee residency requirements prohibited. (1) The
19legislature finds that public employee residency requirements are a matter of
20statewide concern.
AB40,630,22 21(2) In this section, "local governmental unit" means any city, village, town,
22county, or school district.
AB40,630,25 23(3) (a) Except as provided in sub. (4), no local governmental unit may require,
24as a condition of employment, that any employee or prospective employee reside
25within any jurisdictional limit.
AB40,631,3
1(b) If a local governmental unit has a residency requirement that is in effect on
2the effective date of this paragraph .... [LRB inserts date], the residency requirement
3does not apply and may not be enforced.
AB40,631,6 4(4) This section does not affect any statute that requires residency within the
5jurisdictional limits of any local governmental unit or any provision of law that
6requires residency in this state.
AB40,1271 7Section 1271. 66.0602 (2m) of the statutes is amended to read:
AB40,631,168 66.0602 (2m) Negative adjustment. If a political subdivision's levy for the
9payment of any general obligation debt service, including debt service on debt issued
10or reissued to fund or refund outstanding obligations of the political subdivision and
11interest on outstanding obligations of the political subdivision, on debt originally
12issued before July 1, 2005, is less in the current year than it was in the previous year,
13the political subdivision shall reduce its levy limit in the current year by an amount
14equal to the amount that its levy was reduced as described in this subsection. This
15subsection does not apply to any political subdivision that does not increase its levy
16increase limit as allowed under sub. (3) (f) 1.
AB40,1272 17Section 1272. 66.0602 (3) (f) 1. of the statutes is amended to read:
AB40,631,2418 66.0602 (3) (f) 1. Subject to subd. 3., if a political subdivision's allowable levy
19under this section in 2010 the prior year was greater than its actual levy in 2010 that
20year
, the levy increase limit otherwise applicable under this section to the political
21subdivision in 2011 the next succeeding year is increased by the difference between
22these 2 amounts the prior year's allowable levy and the prior year's actual levy, as
23determined by the department of revenue, up to a maximum increase of 0.5 percent
24of the actual levy in 2010 that prior year.
AB40,1273 25Section 1273. 66.0602 (3) (f) 2. of the statutes is repealed.
AB40,1274
1Section 1274. 66.0602 (3) (f) 3. (intro.) of the statutes is amended to read:
AB40,632,42 66.0602 (3) (f) 3. (intro.) The adjustment described in subds. subd. 1. and 2. may
3occur only if the political subdivision's governing body approves of the adjustment
4by one of the following methods:
AB40,1275 5Section 1275. 66.0602 (3) (f) 4. of the statutes is repealed.
AB40,1276 6Section 1276. 66.0615 (1m) (a) of the statutes is amended to read:
AB40,632,217 66.0615 (1m) (a) The governing body of a municipality may enact an ordinance,
8and a district, under par. (e), may adopt a resolution, imposing a tax on the privilege
9of furnishing, at retail, except sales for resale, rooms or lodging to transients by
10hotelkeepers, motel operators and other persons furnishing accommodations that
11are available to the public, irrespective of whether membership is required for use
12of the accommodations. A tax imposed under this paragraph is not subject to the
13selective sales tax imposed by s. 77.52 (2) (a) 1. and
may be collected from the
14consumer or user, but
may not be imposed on sales to the federal government and
15persons listed under s. 77.54 (9a). A tax imposed under this paragraph by a
16municipality shall be paid to the municipality and may be forwarded to a commission
17if one is created under par. (c), as provided in par. (d). Except as provided in par. (am),
18a tax imposed under this paragraph by a municipality may not exceed 8%. Except
19as provided in par. (am), if a tax greater than 8% under this paragraph is in effect
20on May 13, 1994, the municipality imposing the tax shall reduce the tax to 8%,
21effective on June 1, 1994.
AB40,1277 22Section 1277. 66.0615 (1m) (f) 2. of the statutes is amended to read:
AB40,633,223 66.0615 (1m) (f) 2. Sections 77.51 (12m), (14), (14g), (15a), and (15b), 77.52 (3),
24(13), (14), (18), and (19), 77.522, 77.58 (1) to (5), (6m), and (7), 77.585, 77.59, 77.60,

177.61 (2), (3m), (5), (8), (9), and (12) to (15), and (19m), and 77.62, as they apply to
2the taxes under subch. III of ch. 77, apply to the tax described under subd. 1.
AB40,1278 3Section 1278. 69.20 (3) (g) of the statutes is created to read:
AB40,633,84 69.20 (3) (g) The state or local registrar, upon request of the department of
5revenue, may disclose information on vital records, including a social security
6number, to the department of revenue only for the following purposes related to
7administering state taxes and collection of debts referred to the department of
8revenue:
AB40,633,109 1. Locating persons, or the assets of persons, who have failed to file tax returns,
10have underreported their taxable income, or are delinquent debtors.
AB40,633,1111 2. Identifying fraudulent tax returns and credit claims.
AB40,633,1212 3. Providing information for tax-related prosecutions.
AB40,1279 13Section 1279. 70.111 (18) of the statutes is amended to read:
AB40,634,514 70.111 (18) Solar and wind energy Energy systems. Solar Biogas energy
15systems, solar energy systems, and wind energy systems. In this subsection, "biogas
16energy system" means equipment which directly converts biomass, as defined under
17section 45K (c) (3) of the Internal Revenue Code, into biogas, equipment which
18generates electricity, heat, or compressed natural gas exclusively from biogas,
19equipment which is used exclusively for the direct transfer or storage of biomass or
20biogas, and any structure used exclusively to shelter or operate such equipment, if
21all such equipment, and any such structure, is located at the same site, but does not
22include equipment or components that would be present as part of a conventional
23energy system.
In this subsection, "solar energy system" means equipment which
24directly converts and then transfers or stores solar energy into usable forms of
25thermal or electrical energy, but does not include equipment or components that

1would be present as part of a conventional energy system or a system that operates
2without mechanical means. In this subsection, "wind energy system" means
3equipment which converts and then transfers or stores energy from the wind into
4usable forms of energy, but does not include equipment or components that would be
5present as part of a conventional energy system.
AB40,1280 6Section 1280. 70.114 (1) (f) of the statutes is amended to read:
AB40,634,97 70.114 (1) (f) "Taxing jurisdiction" means any entity, not including the state,
8authorized by law to levy taxes on general property, as defined in s. 70.02, that are
9measured by the property's value.
AB40,1281 10Section 1281. 70.114 (3) of the statutes is amended to read:
AB40,634,1311 70.114 (3) Ascertaining rate. Each year, the department shall ascertain from
12the clerks of the taxation district
the aggregate net general property tax rate for
13taxation districts to which aids are paid under this section.
AB40,1282 14Section 1282. 70.114 (4) (a) of the statutes is amended to read:
AB40,634,2115 70.114 (4) (a) On Except as provided under par. (c), on or before January 31,
16the department shall pay to each treasurer of a taxation district, with respect to each
17parcel of land acquired by the department within the taxation district on or before
18January 1 of the preceding year, an amount determined by multiplying each parcel's
19estimated value equated to the average level of assessment in the taxation district
20by the aggregate net general property tax rate that would apply to the parcel of land
21if it were taxable, as shown on property tax bills prepared for that year under s. 74.09.
AB40,1283 22Section 1283. 70.114 (4) (c) of the statutes is created to read:
AB40,635,223 70.114 (4) (c) The department shall withhold from the payment amount
24determined under par. (a) an amount equal to the amount determined under par. (a)

1multiplied by the rate of the forestation state tax under s. 70.58 and shall deposit that
2amount into the conservation fund.
AB40,1284 3Section 1284. 70.119 (4) of the statutes is amended to read:
AB40,635,94 70.119 (4) The department shall be responsible for negotiating with
5municipalities on payments for municipal services and may delegate certain
6responsibilities of negotiation to other state agencies or to the University of
7Wisconsin Hospitals and Clinics Authority. Prior to negotiating with municipalities
8the department shall submit guidelines for negotiation to the committee for
9approval.
AB40,1285 10Section 1285. 70.119 (5) of the statutes is amended to read:
AB40,635,1411 70.119 (5) Upon approval of guidelines by the committee, the department shall
12proceed with negotiations.
In no case may a municipality withhold services to the
13state or to the University of Wisconsin Hospitals and Clinics Authority during
14negotiations.
AB40,1286 15Section 1286. 70.119 (6) (a) of the statutes is renumbered 70.119 (6).
AB40,1287 16Section 1287. 70.119 (6) (b) of the statutes is repealed.
AB40,1288 17Section 1288. 71.01 (6) (i) of the statutes is created to read:
AB40,639,318 71.01 (6) (i) For taxable years that begin after December 31, 2012, for natural
19persons and fiduciaries, except fiduciaries of nuclear decommissioning trust or
20reserve funds, "Internal Revenue Code" means the federal Internal Revenue Code
21as amended to December 31, 2010, excluding sections 103, 104, and 110 of P.L.
22102-227, sections 13113, 13150 (d), 13171 (d), 13174, and 13203 (d) of P.L. 103-66,
23sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of P.L. 104-188, sections 1, 3,
244, and 5 of P.L. 106-519, sections 162 and 165 of P.L. 106-554, section 431 of P.L.
25107-16, sections 101 and 301 (a) of P.L. 107-147, sections 106, 201, and 202 of P.L.

1108-27, section 1201 of P.L. 108-173, sections 306, 308, 316, 401, and 403 (a) of P.L.
2108-311, sections 101, 102, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of P.L.
3108-357, P.L. 109-1, sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328,
41329, 1348, and 1351 of P.L. 109-58, section 11146 of P.L. 109-59, section 301 of P.L.
5109-73, sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e),
6(j), and (q), and 405 of P.L. 109-135, sections 101, 207, 503, and 513 of P.L. 109-222,
7P.L. 109-432, except sections 117, 406, 409, 410, 412, 417, 418, 424, and 425 of
8division A and section 403 of division C of P.L. 109-432, P.L. 110-28, except sections
98215, 8231, 8232, 8234, and 8236 of P.L. 110-28, P.L. 110-140, sections 2, 3, and 5
10of P.L. 110-142, P.L. 110-166, sections 3 (b) and 11 (b), (e), and (g) of P.L. 110-172,
11P.L. 110-185, P.L. 110-234, section 301 of P.L. 110-245, P.L. 110-246, except sections
124, 15312, 15313, 15314, 15316, and 15342 of P.L. 110-246, sections 3071, 3081, and
133082 of P.L. 110-289, section 9 (e) of P.L. 110-317, P.L. 110-343, except sections 116,
14208, 211, and 301 of division B and sections 313 and 504 of division C of P.L. 110-343,
15P.L. 111-5, except sections 1261, 1262, 1401, 1402, 1521, 1522, 1531, and 1541 of
16division B of P.L. 111-5, section 201 of P.L. 111-147, P.L. 111-148, except sections
171322, 1515, 9003, 9004, 9005, 9012, 9013, 9014, 9016, 9021, 9022, 10108, 10902,
1810908, and 10909 of P.L. 111-148, P.L. 111-152, except sections 1403 and 1407 of P.L.
19111-152, P.L. 111-203, except section 1601 of P.L. 111-203, P.L. 111-226, except
20sections 215 and 217 of P.L. 111-226, P.L. 111-240, except sections 2014, 2043, 2111,
212112, and 2113 of P.L. 111-240, and P.L. 111-312, and as amended by section 1858
22of P.L. 112-10, section 1108 of P.L. 112-95, sections 40211, 40241, 40242, and 100121
23of P.L. 112-141, and sections 101 and 902 of P.L. 112-240, and as indirectly affected
24by P.L. 99-514, P.L. 100-203, P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179,
25P.L. 101-239, P.L. 101-280, P.L. 101-508, P.L. 102-90, P.L. 102-227, excluding

1sections 103, 104, and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, P.L. 103-66,
2excluding sections 13113, 13150 (d), 13171 (d), 13174, and 13203 (d) of P.L. 103-66,
3P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L. 104-7, P.L. 104-117, P.L. 104-188,
4excluding sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of P.L. 104-188, P.L.
5104-191, P.L. 104-193, P.L. 105-33, P.L. 105-34, P.L. 105-178, P.L. 105-206, P.L.
6105-277, P.L. 106-36, P.L. 106-170, P.L. 106-230, P.L. 106-554, excluding sections
7162 and 165 of P.L. 106-554, P.L. 106-573, P.L. 107-15, P.L. 107-16, excluding
8section 431 of P.L. 107-16, P.L. 107-22, P.L. 107-116, P.L. 107-134, P.L. 107-147,
9excluding sections 101 and 301 (a) 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, 316, 401, and 403
13(a) of P.L. 108-311, P.L. 108-357, excluding sections 101, 102, 201, 211, 242, 244, 336,
14337, 422, 847, 909, and 910 of P.L. 108-357, P.L. 108-375, P.L. 108-476, P.L. 109-7,
15P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328,
161329, 1348, and 1351 of P.L. 109-58, P.L. 109-59, excluding section 11146 of P.L.
17109-59, P.L. 109-73, excluding section 301 of P.L. 109-73, P.L. 109-135, excluding
18sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and
19(q), and 405 of P.L. 109-135, P.L. 109-151, P.L. 109-222, excluding sections 101, 207,
20503, and 513 of P.L. 109-222, P.L. 109-227, P.L. 109-280, sections 117, 406, 409, 410,
21412, 417, 418, 424, and 425 of division A and section 403 of division C of P.L. 109-432,
22sections 8215, 8231, 8232, 8234, and 8236 of P.L. 110-28, P.L. 110-141, P.L. 110-142,
23excluding sections 2, 3, and 5 of P.L. 110-142, P.L. 110-172, excluding sections 3 (b)
24and 11 (b), (e), and (g) of P.L. 110-172, P.L. 110-245, excluding section 301 of P.L.
25110-245, sections 4, 15312, 15313, 15314, 15316, and 15342 of P.L. 110-246, P.L.

1110-289, excluding sections 3071, 3081, and 3082 of P.L. 110-289, P.L. 110-317,
2excluding section 9 (e) of P.L. 110-317, sections 116, 208, 211, and 301 of division B
3and sections 313 and 504 of division C of P.L. 110-343, P.L. 110-351, P.L. 110-458,
4sections 1261, 1262, 1401, 1402, 1521, 1522, 1531, and 1541 of division B of P.L.
5111-5, P.L. 111-92, P.L. 111-147, excluding section 201 of P.L. 111-147, sections
61322, 1515, 9003, 9004, 9005, 9012, 9013, 9014, 9016, 9021, 9022, 10108, 10902,
710908, and 10909 of P.L. 111-148, sections 1403 and 1407 of P.L. 111-152, P.L.
8111-192, section 1601 of P.L. 111-203, sections 215 and 217 of P.L. 111-226, sections
92014, 2043, 2111, 2112, and 2113 of P.L. 111-240, P.L. 111-325, section 1858 of P.L.
10112-10, section 1108 of P.L. 112-95, and sections 40211, 40241, 40242, 100121 of P.L.
11112-141, and sections 101 and 902 of P.L. 112-240. The Internal Revenue Code
12applies for Wisconsin purposes at the same time as for federal purposes, except that
13changes made by P.L. 106-573, sections 9004, 9005, 9012, 9013, 9014, 9016, and
1410902 of P.L. 111-148, sections 1403 and 1407 of P.L. 111-152, section 1858 of P.L.
15112-10, section 1108 of P.L. 112-95, and sections 40211, 40241, 40242, and 100121
16of P.L. 112-141 do not apply for taxable years beginning before January 1, 2013.
17Amendments to the federal Internal Revenue Code enacted after December 31, 2010,
18do not apply to this paragraph with respect to taxable years beginning after
19December 31, 2010, except that changes to the Internal Revenue Code made by
20section 1858 of P.L. 112-10, section 1108 of P.L. 112-95, and sections 40211, 40241,
2140242, and 100121 of P.L. 112-141, and changes that indirectly affect the provisions
22applicable to this subchapter made by section 1858 of P.L. 112-10, section 1108 of P.L.
23112-95, and sections 40211, 40241, 40242, and 100121 of P.L. 112-141, do not apply
24for taxable years beginning before January 1, 2013, and changes to the Internal
25Revenue Code made by sections 101 and 902 of P.L. 112-240, and changes that

1indirectly affect the provisions applicable to this subchapter made by sections 101
2and 902 of P.L. 112-240, apply for Wisconsin purposes at the same time as for federal
3purposes.
AB40,1289 4Section 1289. 71.01 (6) (o) of the statutes is repealed.
AB40,1290 5Section 1290. 71.01 (6) (p) of the statutes is renumbered 71.01 (6) (a).
AB40,1291 6Section 1291. 71.01 (6) (q) of the statutes is renumbered 71.01 (6) (b).
AB40,1292 7Section 1292. 71.01 (6) (r) of the statutes is renumbered 71.01 (6) (c).
AB40,1293 8Section 1293. 71.01 (6) (s) of the statutes is renumbered 71.01 (6) (d).
AB40,1294 9Section 1294. 71.01 (6) (t) of the statutes is renumbered 71.01 (6) (e).
AB40,1295 10Section 1295. 71.01 (6) (u) of the statutes is renumbered 71.01 (6) (f).
AB40,1296 11Section 1296. 71.01 (6) (um) of the statutes is renumbered 71.01 (6) (g).
AB40,1297 12Section 1297. 71.01 (6) (un) of the statutes is renumbered 71.01 (6) (h) and
13amended to read:
AB40,642,2114 71.01 (6) (h) For taxable years that begin after December 31, 2010, and before
15January 1, 2013,
for natural persons and fiduciaries, except fiduciaries of nuclear
16decommissioning trust or reserve funds, "Internal Revenue Code" means the federal
17Internal Revenue Code as amended to December 31, 2010, excluding sections 103,
18104, and 110 of P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174, and 13203
19(d) of P.L. 103-66, sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of P.L.
20104-188, sections 1, 3, 4, and 5 of P.L. 106-519, sections 162 and 165 of P.L. 106-554,
21P.L. 106-573, section 431 of P.L. 107-16, sections 101 and 301 (a) of P.L. 107-147,
22sections 106, 201, and 202 of P.L. 108-27, section 1201 of P.L. 108-173, sections 306,
23308, 316, 401, and 403 (a) of P.L. 108-311, sections 101, 102, 201, 211, 242, 244, 336,
24337, 422, 847, 909, and 910 of P.L. 108-357, P.L. 109-1, sections 1305, 1308, 1309,
251310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of P.L. 109-58, section

111146 of P.L. 109-59, section 301 of P.L. 109-73, sections 101, 105, 201 (a) as it relates
2to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of P.L. 109-135, sections 101,
3207, 503, and 513 of P.L. 109-222, P.L. 109-432, except sections 117, 406, 409, 410,
4412, 417, 418, 424, and 425 of division A and section 403 of division C of P.L. 109-432,
5P.L. 110-28, except sections 8215, 8231, 8232, 8234, and 8236 of P.L. 110-28, P.L.
6110-140, sections 2, 3, and 5 of P.L. 110-142, P.L. 110-166, sections 3 (b) and 11 (b),
7(e), and (g) of P.L. 110-172, P.L. 110-185, P.L. 110-234, section 301 of P.L. 110-245,
8P.L. 110-246, except sections 4, 15312, 15313, 15314, 15316, and 15342 of P.L.
9110-246, sections 3071, 3081, and 3082 of P.L. 110-289, section 9 (e) of P.L. 110-317,
10P.L. 110-343, except sections 116, 208, 211, and 301 of division B and sections 313
11and 504 of division C of P.L. 110-343, P.L. 111-5, except sections 1261, 1262, 1401,
121402, 1521, 1522, 1531, and 1541 of division B of P.L. 111-5, section 201 of P.L.
13111-147, P.L. 111-148, except sections 1322, 1515, 9003, 9021, 9022, 10108, 10908,
14and 10909 of P.L. 111-148, P.L. 111-152, except section 1407 of P.L. 111-152, P.L.
15111-203, except section 1601 of P.L. 111-203, P.L. 111-226, except sections 215 and
16217 of P.L. 111-226, P.L. 111-240, except sections 2014, 2043, 2111, 2112, and 2113
17of P.L. 111-240, and P.L. 111-312, and as amended by section 902 of P.L. 112-240,
18and as indirectly affected by P.L. 99-514, P.L. 100-203, P.L. 100-647, P.L. 101-73,
19P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-280, P.L. 101-508, P.L. 102-90,
20P.L. 102-227, excluding sections 103, 104, and 110 of P.L. 102-227, P.L. 102-318, P.L.
21102-486, P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, and
2213203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L. 104-7, P.L.
23104-117, P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605
24(d) of P.L. 104-188, P.L. 104-191, P.L. 104-193, P.L. 105-33, P.L. 105-34, P.L.
25105-178, P.L. 105-206, P.L. 105-277, P.L. 106-36, P.L. 106-170, P.L. 106-230, P.L.

1106-554, excluding sections 162 and 165 of P.L. 106-554, P.L. 107-15, P.L. 107-16,
2excluding section 431 of P.L. 107-16, P.L. 107-22, P.L. 107-116, P.L. 107-134, P.L.
3107-147, excluding sections 101 and 301 (a) of P.L. 107-147, P.L. 107-181, P.L.
4107-210, P.L. 107-276, P.L. 107-358, P.L. 108-27, excluding sections 106, 201, and
5202 of P.L. 108-27, P.L. 108-121, P.L. 108-173, excluding section 1201 of P.L.
6108-173, P.L. 108-203, P.L. 108-218, P.L. 108-311, excluding sections 306, 308, 316,
7401, and 403 (a) of P.L. 108-311, P.L. 108-357, excluding sections 101, 102, 201, 211,
8242, 244, 336, 337, 422, 847, 909, and 910 of P.L. 108-357, P.L. 108-375, P.L. 108-476,
9P.L. 109-7, P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325,
101326, 1328, 1329, 1348, and 1351 of P.L. 109-58, P.L. 109-59, excluding section 11146
11of P.L. 109-59, P.L. 109-73, excluding section 301 of P.L. 109-73, P.L. 109-135,
12excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e),
13(j), and (q), and 405 of P.L. 109-135, P.L. 109-151, P.L. 109-222, excluding sections
14101, 207, 503, and 513 of P.L. 109-222, P.L. 109-227, P.L. 109-280, sections 117, 406,
15409, 410, 412, 417, 418, 424, and 425 of division A and section 403 of division C of P.L.
16109-432, sections 8215, 8231, 8232, 8234, and 8236 of P.L. 110-28, P.L. 110-141, P.L.
17110-142, excluding sections 2, 3, and 5 of P.L. 110-142, P.L. 110-172, excluding
18sections 3 (b) and 11 (b), (e), and (g) of P.L. 110-172, P.L. 110-245, excluding section
19301 of P.L. 110-245, sections 4, 15312, 15313, 15314, 15316, and 15342 of P.L.
20110-246, P.L. 110-289, excluding sections 3071, 3081, and 3082 of P.L. 110-289, P.L.
21110-317, excluding section 9 (e) of P.L. 110-317, sections 116, 208, 211, and 301 of
22division B and sections 313 and 504 of division C of P.L. 110-343, P.L. 110-351, P.L.
23110-458, sections 1261, 1262, 1401, 1402, 1521, 1522, 1531, and 1541 of division B
24of P.L. 111-5, P.L. 111-92, P.L. 111-147, excluding section 201 of P.L. 111-147,
25sections 1322, 1515, 9003, 9021, 9022, 10108, 10908, and 10909 of P.L. 111-148,

1section 1407 of P.L. 111-152, P.L. 111-192, section 1601 of P.L. 111-203, sections 215
2and 217 of P.L. 111-226, sections 2014, 2043, 2111, 2112, and 2113 of P.L. 111-240,
3and P.L. 111-325, and section 902 of P.L. 112-240. The Internal Revenue Code
4applies for Wisconsin purposes at the same time as for federal purposes, except that
5changes made by section 209 of P.L. 109-222, sections 117, 406, 409, 410, 412, 417,
6418, 424, and 425 of division A and section 403 of division C of P.L. 109-432, sections
78215, 8231, 8232, 8234, and 8236 of P.L. 110-28, P.L. 110-141, P.L. 110-142,
8excluding sections 2, 3, and 5 of P.L. 110-142, P.L. 110-172, excluding sections 3 (b)
9and 11 (b), (e), and (g) of P.L. 110-172, sections 110 and 113 of P.L. 110-245, sections
1015312, 15313, 15314, and 15342 of P.L. 110-246, sections 3031, 3032, 3033, 3041,
113051, 3052, 3061, and 3092 of P.L. 110-289, P.L. 110-317, excluding section 9 (e) of
12P.L. 110-317, sections 116, 208, and 211 of division B and section 504 of division C
13of P.L. 110-343, section 14 of P.L. 111-92, sections 531, 532, and 533 of P.L. 111-147,
14sections 10908 and 10909 of P.L. 111-148, and section 2043 of P.L. 111-240 do not
15apply for taxable years beginning before January 1, 2011. Amendments to the
16federal Internal Revenue Code enacted after December 31, 2010, do not apply to this
17paragraph with respect to taxable years beginning after December 31, 2010, and
18before January 1, 2013, except that changes to the Internal Revenue Code made by
19section 902 of P.L. 112-240, and changes that indirectly affect the provisions
20applicable to this subchapter made by section 902 of P.L. 112-240, apply for
21Wisconsin purposes at the same time as for federal purposes
.
AB40,1298 22Section 1298. 71.05 (1) (c) 11. of the statutes is created to read:
AB40,643,323 71.05 (1) (c) 11. The Wisconsin Health and Educational Facilities Authority
24under s. 231.03 (6), if the bonds or notes are issued for the benefit of a person who
25is eligible to receive the proceeds of bonds or notes from another entity for the same

1purpose for which the bonds or notes are issued under s. 231.03 (6) and the interest
2income received from the other bonds or notes is exempt from taxation under this
3subchapter.
AB40,1299 4Section 1299. 71.05 (6) (b) 19. a. of the statutes is amended to read:
AB40,643,145 71.05 (6) (b) 19. a. One hundred percent of the amount paid by the person for
6medical care insurance, not including any amount that is paid with a premium
7assistance credit amount under 26 USC 36B
. In this subdivision, "medical care
8insurance" means a medical care insurance policy that covers the person, his or her
9spouse and the person's dependents and provides surgical, medical, hospital, major
10medical or other health service coverage, and includes payments made for medical
11care benefits under a self-insured plan, but "medical care insurance" does not
12include hospital indemnity policies or policies with ancillary benefits such as
13accident benefits or benefits for loss of income resulting from a total or partial
14inability to work because of illness, sickness or injury.
AB40,1300 15Section 1300. 71.05 (6) (b) 28. (intro.) of the statutes is amended to read:
AB40,643,2216 71.05 (6) (b) 28. (intro.) An amount paid by a claimant for tuition expenses and
17mandatory student fees for a student who is the claimant or who is the claimant's
18child and the claimant's dependent who is claimed under section 151 (c) of the
19Internal Revenue Code, to attend any university, college, technical college or a school
20approved under s. 38.50 440.55, that is located in Wisconsin or to attend a public
21vocational school or public institution of higher education in Minnesota under the
22Minnesota-Wisconsin reciprocity agreement under s. 39.47, calculated as follows:
AB40,1301 23Section 1301. 71.05 (6) (b) 28. i. of the statutes is created to read:
AB40,644,1224 71.05 (6) (b) 28. i. For taxable years beginning after December 31, 2012, the
25dollar amounts in subd. 28. b., c., d., and g. shall be increased each year by a

1percentage equal to the percentage change between the U.S. consumer price index
2for all urban consumers, U.S. city average, for the month of August of the previous
3year and the U.S. consumer price index for all urban consumers, U.S. city average,
4for the month of August 2011, as determined by the federal department of labor,
5except that the adjustment may occur only if the resulting amount is greater than
6the corresponding amount that was calculated for the previous year. Each amount
7that is revised under this subd. 28. i. shall be rounded to the nearest multiple of $10
8if the revised amount is not a multiple of $10 or, if the revised amount is a multiple
9of $5, such an amount shall be increased to the next higher multiple of $10. The
10department of revenue shall annually adjust the changes in dollar amounts required
11under this subd. 28. i. and incorporate the changes into the income tax forms and
12instructions.
AB40,1302 13Section 1302. 71.05 (6) (b) 35. a. of the statutes is amended to read:
AB40,644,2314 71.05 (6) (b) 35. a. One hundred percent of the amount paid by the individual
15for medical care insurance, not including any amount that is paid with a premium
16assistance credit amount under 26 USC 36B
. In this subdivision, "medical care
17insurance" means a medical care insurance policy that covers the individual, his or
18her spouse, and the individual's dependents and provides surgical, medical, hospital,
19major medical, or other health service coverage, and includes payments made for
20medical care benefits under a self-insured plan, but "medical care insurance" does
21not include hospital indemnity policies or policies with ancillary benefits such as
22accident benefits or benefits for loss of income resulting from a total or partial
23inability to work because of illness, sickness, or injury.
AB40,1303 24Section 1303. 71.05 (6) (b) 38. a. of the statutes is amended to read:
AB40,645,10
171.05 (6) (b) 38. a. One hundred percent of the amount paid by the individual
2for medical care insurance, not including any amount that is paid with a premium
3assistance credit amount under 26 USC 36B
. In this subdivision, "medical care
4insurance" means a medical care insurance policy that covers the individual, his or
5her spouse, and the individual's dependents and provides surgical, medical, hospital,
6major medical, or other health service coverage, and includes payments made for
7medical care benefits under a self-insured plan, but "medical care insurance" does
8not include hospital indemnity policies or policies with ancillary benefits such as
9accident benefits or benefits for loss of income resulting from a total or partial
10inability to work because of illness, sickness, or injury.
AB40,1304 11Section 1304. 71.05 (6) (b) 42. a. of the statutes is amended to read:
AB40,645,2112 71.05 (6) (b) 42. a. One hundred percent of the amount paid by the individual
13for medical care insurance, not including any amount that is paid with a premium
14assistance credit amount under 26 USC 36B
. In this subdivision, "medical care
15insurance" means a medical care insurance policy that covers the individual, his or
16her spouse, and the individual's dependents and provides surgical, medical, hospital,
17major medical, or other health service coverage, and includes payments made for
18medical care benefits under a self-insured plan, but "medical care insurance" does
19not include hospital indemnity policies or policies with ancillary benefits such as
20accident benefits or benefits for loss of income resulting from a total or partial
21inability to work because of illness, sickness, or injury.
AB40,1305 22Section 1305. 71.05 (24) (a) 4. of the statutes is amended to read:
AB40,645,2423 71.05 (24) (a) 4. "Qualified new business venture" means a business certified
24under s. 238.20, 2011 stats., or s. 560.2085, 2009 stats.
AB40,1306 25Section 1306. 71.05 (24) (b) (intro.) of the statutes is amended to read:
AB40,646,4
171.05 (24) (b) (intro.) For taxable years beginning after December 31, 2010, and
2before January 1, 2014,
a claimant may subtract from federal adjusted gross income
3any amount, up to $10,000,000, of a long-term capital gain if the claimant does all
4of the following:
AB40,1307 5Section 1307. 71.05 (25) (title) of the statutes is amended to read:
AB40,646,76 71.05 (25) (title) Capital gains exclusion; Wisconsin-source assets qualified
7Wisconsin business
.
AB40,1308 8Section 1308. 71.05 (25) (a) 2. of the statutes is amended to read:
AB40,646,179 71.05 (25) (a) 2. "Qualifying gain" means the a long-term capital gain under
10the Internal Revenue Code
realized from the sale of any asset which is a Wisconsin
11capital asset in the year it is purchased by the claimant and for at least 2 of the
12subsequent 4 years; that is purchased
an investment made after December 31, 2010;
13that is
, and held for at least 5 uninterrupted years ; and that is treated as a long-term
14gain under the Internal Revenue Code
in a business that for the year of investment
15and at least 2 of the 4 subsequent years was a qualified Wisconsin business
; except
16that a qualifying gain may not include any amount for which the claimant claimed
17a subtraction under sub. (24) (b) or any gain described under sub. (26) (b) 1.
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