Amendment ASA1-AB870

2025 - 2026 LEGISLATURE

LRBs0550/1

JK/KP/ARG:all

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO ASSEMBLY BILL 870

February 19, 2026 - Offered by Representative Wittke.

AB870-ASA1,2,2 An Act to repeal 183.0401 (4) (e), 183.0503 (2), 183.0503 (6) and 183.0602 (3); to amend 71.01 (6) (n) 1., 71.07 (5) (a) (intro.), 71.07 (5) (a) 2., 71.07 (5) (a) 3., 71.07 (5) (a) 4., 71.22 (4) (n) 1., 71.22 (4m) (n) 1., 71.26 (2) (b) 15. a., 71.26 (3) (e) 1., 71.30 (2), 71.34 (1g) (n) 1., 71.34 (1k) (h) 1., 71.42 (2) (n) 1., 71.65 (2) (b), 71.70 (1), 71.72, 86.31 (2) (b), 183.0107 (2) (intro.), 183.0502 (1) (intro.), 183.0503 (1), 183.0503 (3) and 183.0503 (8); to create 15.407 (19), 71.01 (6) (o), 71.05 (21m), 71.22 (4) (o), 71.22 (4m) (o), 71.26 (2) (a) 13., 71.26 (2) (b) 16., 71.34 (1g) (o), 71.42 (2) (o), 71.45 (2) (a) 25., 86.31 (2) (hm), 86.31 (2) (hs) and 101.138 of the statutes; relating to: adopting changes to the federal Internal Revenue Code for state tax purposes and modifying administrative rules related to such changes; rights of creditors of limited liability company members; and regulation of equipment operators involved in highway improvement.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB870-ASA1,1 Section 1. 15.407 (19) of the statutes is created to read:

AB870-ASA1,2,6 15.407 (19) heavy equipment council. (a) There is created in the department of safety and professional services a heavy equipment council consisting of the following members appointed for staggered 3-year terms:

AB870-ASA1,2,10 1. Two members who represent a labor organization whose members are engaged in the operation of heavy equipment, each of whom is actively involved in providing, or in administering the provision of, skills improvement and apprenticeship training programs.

AB870-ASA1,2,13 2. Two members who represent an association that is engaged in construction involving a highway improvement, as defined in s. 101.138 (1) (c), in this state and whose membership includes employers of heavy equipment operators.

AB870-ASA1,2,14 (b) The council shall meet at least twice each year.

AB870-ASA1,2 Section 2. 71.01 (6) (n) 1. of the statutes is amended to read:

AB870-ASA1,2,20 71.01 (6) (n) 1. For taxable years beginning after December 31, 2022, and before January 1, 2026, for individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, “Internal Revenue Code” means the federal Internal Revenue Code as amended to December 31, 2022, except as provided in subds. 2. and 3. and s. 71.98, and subject to subd. 4.

AB870-ASA1,3 Section 3. 71.01 (6) (o) of the statutes is created to read:

AB870-ASA1,3,4 71.01 (6) (o) 1. For taxable years beginning after December 31, 2025, for individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, “Internal Revenue Code” means the federal Internal Revenue Code as amended to December 31, 2025, except as provided in subds. 2. and 3. and s. 71.98, and subject to subd. 4.

AB870-ASA1,3,20 2. For purposes of this paragraph, “Internal Revenue Code” does not include the following provisions of federal public laws for taxable years beginning after December 31, 2025: section 422 of P.L. 108-357; section 1351 of P.L. 109-58; section 403 (q) of P.L. 109-135; section 104 of P.L. 109-432; section 11 (e) and (g) of P.L. 110- 172; section 301 of P.L. 110-245; section 15351 of P.L. 110-246; section 801 of division C of P.L. 110-343; sections 211, 212, 213, and 214 of P.L. 111-226; section 2122 of P.L. 111-240; sections 322 and 323 of P.L. 112-240; section 1101 of P.L. 114- 74; sections 128, 143, 144, 169, 326, and 411 of division Q of P.L. 114-113; sections 11011, 11012, 13201 (a) to (e) and (g), 13221, 13301, 13304 (a), (b), and (d), 13531, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97; sections 101 (d), 201 to 207, and 302 of division U of P.L. 115-141; section 145 of division Q of P.L. 116-94; sections 2304 and 2306 of P.L. 116-136; sections 111, 116, and 210 of division EE of P.L. 116-260; section 9041 of P.L. 117-2; section 13903 (b) of P.L. 117-169; and sections 70105, 70301, 70303, 70307, 70312, 70321, 70322, 70323, 70341, 70342, 70351, 70353, 70354, 70421, 70425, 70426, 70434, 70509, and 70601 of P.L. 119-21.

AB870-ASA1,3,24 3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code, including provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, enacted after December 31, 2025.

AB870-ASA1,5,8 4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except changes made by sections 1, 3, 4, and 5 of P.L. 106-519; sections 101 and 102 of P.L. 108-357; section 1310 of P.L. 109-58; section 11146 of P.L. 109-59; section 513 of P.L. 109-222; sections 8233 and 8235 of P.L. 110-28; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), and 707 of division C of P.L. 110-343; sections 1232, 1251, 1501, and 1502 of division B of P.L. 111-5; section 216 of P.L. 111-226; sections 753, 754, and 760 of P.L. 111-312; sections 104, 318, 326, 327, and 411 of P.L. 112-240; sections 159 (a) and 221 of division A of P.L. 113-295; section 2 of P.L. 114-7; section 305 of division P and sections 123, 125, 126, 127, 151, 152, 153, 165, 166, 167, 170, 171, 189, and 191 of division Q of P.L. 114-113; sections 13204, 13206, 13305 (a), 13601, and 13801 of P.L. 115-97; sections 40304, 40305, 40306, 40309, 40412, and 40414 of P.L. 115-123; section 101 (c) of division T of P.L. 115-141; sections 101 (e), 102, 301, and 401 (a) (47) and (195), (b) (13), (17), (22) and (30), and (d) (1) (D) (v), (vi), (xiii) and (xvii) (II) and (4) (a) of division U of P.L. 115- 141; sections 101, 104, 114, 115, 116, 118, 130, 132, and 144 of division Q of P.L. 116-94; section 2307 of division A of P.L. 116-136; sections 106, 114, 115, 118 (a) and (d), 133, 137, and 138 of division EE of P.L. 116-260; sections 5003, 9671, 9673, 9675 and 9708 of P.L. 117-2; section 307 of division P of P.L. 117-103; section 4151 of division FF of P.L. 117-328; section 2 of P.L. 118-146; sections 2, 3, and 4 of P.L. 118- 148; section 2 of P.L. 118-167; sections 2, 3, 4, and 5 of P.L. 118-168; section 202 of P.L. 118-258; sections 70101, 70102, 70103, 70104, 70106, 70107, 70108, 70109, 70110, 70111, 70112, 70113, 70114, 70115, 70116, 70117, 70118, 70119, 70120, 70201, 70202, 70203, 70204, 70302, 70304, 70305, 70306, 70308, 70309, 70311, 70313, 70331, 70352, 70401, 70402, 70403, 70404, 70405, 70411, 70412, 70413, 70414, 70415, 70416, 70422, 70423, 70424, 70427, 70428, 70429, 70430, 70431, 70432, 70433, 70435, 70436, 70437, 70438, 70439, 70501, 70502, 70503, 70504, 70505, 70506, 70507, 70508, 70510, 70511, 70512, 70513, 70514, 70515, 70521, 70522, 70523, 70524, 70525, 70602, 70603, 70604, 70605, 70606, 70607, 71301, 71302, 71303, 71304, 71305, 71306, 71307, and 71308 of P.L. 119-21; and section 2 of P.L. 119-29 apply for taxable years beginning after December 31, 2025.

AB870-ASA1,4 Section 4. 71.05 (21m) of the statutes is created to read:

AB870-ASA1,5,18 71.05 (21m) Differences in statutes. Except as otherwise provided in this subchapter, to prevent the double inclusion or omission of any item of income, loss, deduction, or basis, an addition or subtraction to income, as appropriate, shall be made equal to the difference in income for the taxable year due to state and federal differences, including differences arising from the difference in basis of assets disposed of in a transaction in which gain or loss is recognized for state tax purposes, different depreciation methods or difference in basis of depreciable assets, different elections, or transitional adjustments due to differences in the statutes.

AB870-ASA1,5 Section 5. 71.07 (5) (a) (intro.) of the statutes is amended to read:

AB870-ASA1,5,22 71.07 (5) (a) (intro.) Add the amounts allowed as itemized deductions under the internal revenue code Internal Revenue Code without regard to section 68 of the Internal Revenue Code, except:

AB870-ASA1,6 Section 6. 71.07 (5) (a) 2. of the statutes is amended to read:

AB870-ASA1,6,2 71.07 (5) (a) 2. Taxes under section 164 or 216 (a) (1) of the internal revenue code Internal Revenue Code.

AB870-ASA1,7 Section 7. 71.07 (5) (a) 3. of the statutes is amended to read:

AB870-ASA1,6,7 71.07 (5) (a) 3. Casualty and theft deductions under section 165 (c) (3) of the internal revenue code Internal Revenue Code, except for casualty losses that are directly related to a presidentially declared disaster under 26 USC 7508A or a state declared disaster under section 165 (h) (5) of the Internal Revenue Code.

AB870-ASA1,8 Section 8. 71.07 (5) (a) 4. of the statutes is amended to read:

AB870-ASA1,6,10 71.07 (5) (a) 4. Expenses to move from this state under section 217 of the internal revenue code Internal Revenue Code.

AB870-ASA1,9 Section 9. 71.22 (4) (n) 1. of the statutes is amended to read:

AB870-ASA1,6,16 71.22 (4) (n) 1. For taxable years beginning after December 31, 2022, and before January 1, 2026, “Internal Revenue Code” means the federal Internal Revenue Code as amended to December 31, 2022, except as provided in subds. 2. and 3. and subject to subd. 4., and except as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34 (1g), 71.42 (2), and 71.98.

AB870-ASA1,10 Section 10. 71.22 (4) (o) of the statutes is created to read:

AB870-ASA1,6,22 71.22 (4) (o) 1. For taxable years beginning after December 31, 2025, “Internal Revenue Code” means the federal Internal Revenue Code as amended to December 31, 2025, except as provided in subds. 2. and 3., and subject to subd. 4., and except as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34 (1g), 71.42 (2), and 71.98.

AB870-ASA1,7,14 2. For purposes of this paragraph, “Internal Revenue Code” does not include the following provisions of federal public laws for taxable years beginning after December 31, 2025: section 422 of P.L. 108-357; section 1351 of P.L. 109-58; section 403 (q) of P.L. 109-135; section 104 of P.L. 109-432; section 11 (e) and (g) of P.L. 110- 172; section 301 of P.L. 110-245; section 15351 of P.L. 110-246; section 801 of division C of P.L. 110-343; sections 211, 212, 213, and 214 of P.L. 111-226; section 2122 of P.L. 111-240; sections 322 and 323 of P.L. 112-240; section 1101 of P.L. 114- 74; sections 128, 143, 144, 169, 326, and 411 of division Q of P.L. 114-113; sections 11011, 11012, 13201 (a) to (e) and (g), 13221, 13301, 13304 (a), (b), and (d), 13531, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97; sections 101 (d) 201 to 207, and 302 of division U of P.L. 115-141; section 145 of division Q of P.L. 116-94; sections 2304 and 2306 of P.L. 116-136; sections 111, 116, and 210 of division EE of P.L. 116-260; section 9041 of P.L. 117-2; section 13903 (b) of P.L. 117-169; and sections 70105, 70301, 70303, 70307, 70312, 70321, 70322, 70323, 70341, 70342, 70351, 70353, 70354, 70421, 70425, 70426, 70434, 70509, and 70601 of P.L. 119-21.

AB870-ASA1,7,18 3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code, including provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, enacted after December 31, 2025.

AB870-ASA1,9,2 4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except changes made by sections 1, 3, 4, and 5 of P.L. 106-519; sections 101 and 102 of P.L. 108-357; section 1310 of P.L. 109-58; section 11146 of P.L. 109-59; section 513 of P.L. 109-222; sections 8233 and 8235 of P.L. 110-28; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), and 707 of division C of P.L. 110-343; sections 1232, 1251, 1501, and 1502 of division B of P.L. 111-5; section 216 of P.L. 111-226; sections 753, 754, and 760 of P.L. 111-312; sections 104, 318, 326, 327, and 411 of P.L. 112-240; sections 159 (a) and 221 of division A of P.L. 113-295; section 2 of P.L. 114-7; section 305 of division P and sections 123, 125, 126, 127, 151, 152, 153, 165, 166, 167, 170, 171, 189, and 191 of division Q of P.L. 114-113; sections 13204, 13206, 13305 (a), 13601, and 13801 of P.L. 115-97; sections 40304, 40305, 40306, 40309, 40412, and 40414 of P.L. 115-123; section 101 (c) of division T of P.L. 115-141; sections 101 (e), 102, 301, and 401 (a) (47) and (195), (b) (13), (17), (22), and (30), and (d) (1) (D) (v), (vi), (xiii), and (xvii) (II) and (4) (a) of division U of P.L. 115- 141; sections 101, 104, 114, 115, 116, 118, 130, 132, and 144 of division Q of P.L. 116-94; section 2307 of division A of P.L. 116-136; sections 106, 114, 115, 118 (a) and (d), 133, 137, and 138 of division EE of P.L. 116-260; sections 5003, 9671, 9673, 9675, and 9708 of P.L. 117-2; section 307 of division P of P.L. 117-103; section 4151 of division FF of P.L. 117-328; section 2 of P.L. 118-146; sections 2, 3, and 4 of P.L. 118-148; section 2 of P.L. 118-167; sections 2, 3, 4, and 5 of P.L. 118-168; section 202 of P.L. 118-258; sections 70101, 70102, 70103, 70104, 70106, 70107, 70108, 70109, 70110, 70111, 70112, 70113, 70114, 70115, 70116, 70117, 70118, 70119, 70120, 70201, 70202, 70203, 70204, 70302, 70304, 70305, 70306, 70308, 70309, 70311, 70313, 70331, 70352, 70401, 70402, 70403, 70404, 70405, 70411, 70412, 70413, 70414, 70415, 70416, 70422, 70423, 70424, 70427, 70428, 70429, 70430, 70431, 70432, 70433, 70435, 70436, 70437, 70438, 70439, 70501, 70502, 70503, 70504, 70505, 70506, 70507, 70508, 70510, 70511, 70512, 70513, 70514, 70515, 70521, 70522, 70523, 70524, 70525, 70602, 70603, 70604, 70605, 70606, 70607, 71301, 71302, 71303, 71304, 71305, 71306, 71307, and 71308 of P.L. 119-21; and section 2 of P.L. 119-29 apply for taxable years beginning after December 31, 2025.

AB870-ASA1,11 Section 11. 71.22 (4m) (n) 1. of the statutes is amended to read:

AB870-ASA1,9,8 71.22 (4m) (n) 1. For taxable years beginning after December 31, 2022, and before January 1, 2026, “Internal Revenue Code,” for corporations that are subject to a tax on unrelated business income under s. 71.26 (1) (a), means the federal Internal Revenue Code as amended to December 31, 2022, except as provided in subds. 2. and 3. and s. 71.98, and subject to subd. 4.

AB870-ASA1,12 Section 12. 71.22 (4m) (o) of the statutes is created to read:

AB870-ASA1,9,14 71.22 (4m) (o) 1. For taxable years beginning after December 31, 2025, “Internal Revenue Code,” for corporations that are subject to a tax on unrelated business income under s. 71.26 (1) (a), means the federal Internal Revenue Code as amended to December 31, 2025, except as provided in subds. 2. and 3. and s. 71.98, and subject to subd. 4.

AB870-ASA1,9,24 2. For purposes of this paragraph, “Internal Revenue Code” does not include the following provisions of federal public laws for taxable years beginning after December 31, 2025: section 422 of P.L. 108-357; section 1351 of P.L. 109-58; section 403 (q) of P.L. 109-135; section 104 of P.L. 109-432; section 11 (e) and (g) of P.L. 110- 172; section 301 of P.L. 110-245; section 15351 of P.L. 110-246; section 801 of division C of P.L. 110-343; sections 211, 212, 213, and 214 of P.L. 111-226; section 2122 of P.L. 111-240; sections 322 and 323 of P.L. 112-240; section 1101 of P.L. 114- 74; sections 128, 143, 144, 169, 326, and 411 of division Q of P.L. 114-113; sections 11011, 11012, 13201 (a) to (e) and (g), 13221, 13301, 13304 (a), (b), and (d), 13531, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97; sections 101 (d) 201 to 207, and 302 of division U of P.L. 115-141; section 145 of division Q of P.L. 116-94; sections 2304 and 2306 of P.L. 116-136; sections 111, 116, and 210 of division EE of P.L. 116-260; section 9041 of P.L. 117-2; section 13903 (b) of P.L. 117-169; and sections 70105, 70301, 70303, 70307, 70312, 70321, 70322, 70323, 70341, 70342, 70351, 70353, 70354, 70421, 70425, 70426, 70434, 70509, and 70601 of P.L. 119-21.

AB870-ASA1,10,10 3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code, including provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, enacted after December 31, 2025.

AB870-ASA1,11,18 4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except changes made by sections 1, 3, 4, and 5 of P.L. 106-519; sections 101 and 102 of P.L. 108-357; section 1310 of P.L. 109-58; section 11146 of P.L. 109-59; section 513 of P.L. 109-222; sections 8233 and 8235 of P.L. 110-28; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), and 707 of division C of P.L. 110-343; sections 1232, 1251, 1501, and 1502 of division B of P.L. 111-5; section 216 of P.L. 111-226; sections 753, 754, and 760 of P.L. 111-312; sections 104, 318, 326, 327, and 411 of P.L. 112-240; sections 159 (a) and 221 of division A of P.L. 113-295; section 2 of P.L. 114-7; section 305 of division P and sections 123, 125, 126, 127, 151, 152, 153, 165, 166, 167, 170, 171, 189, and 191 of division Q of P.L. 114-113; sections 13204, 13206, 13305 (a), 13601, and 13801 of P.L. 115-97; sections 40304, 40305, 40306, 40309, 40412, and 40414 of P.L. 115-123; section 101 (c) of division T of P.L. 115-141; sections 101 (e), 102, 301, and 401 (a) (47) and (195), (b) (13), (17), (22), and (30), and (d) (1) (D) (v), (vi), (xiii), and (xvii) (II) and (4) (a) of division U of P.L. 115- 141; sections 101, 104, 114, 115, 116, 118, 130, 132, and 144 of division Q of P.L. 116-94; section 2307 of division A of P.L. 116-136; sections 106, 114, 115, 118 (a) and (d), 133, 137, and 138 of division EE of P.L. 116-260; sections 5003, 9671, 9673, 9675, and 9708 of P.L. 117-2; section 307 of division P of P.L. 117-103; section 4151 of division FF of P.L. 117-328; section 2 of P.L. 118-146; sections 2, 3, and 4 of P.L. 118-148; section 2 of P.L. 118-167; sections 2, 3, 4, and 5 of P.L. 118-168; section 202 of P.L. 118-258; sections 70101, 70102, 70103, 70104, 70106, 70107, 70108, 70109, 70110, 70111, 70112, 70113, 70114, 70115, 70116, 70117, 70118, 70119, 70120, 70201, 70202, 70203, 70204, 70302, 70304, 70305, 70306, 70308, 70309, 70311, 70313, 70331, 70352, 70401, 70402, 70403, 70404, 70405, 70411, 70412, 70413, 70414, 70415, 70416, 70422, 70423, 70424, 70427, 70428, 70429, 70430, 70431, 70432, 70433, 70435, 70436, 70437, 70438, 70439, 70501, 70502, 70503, 70504, 70505, 70506, 70507, 70508, 70510, 70511, 70512, 70513, 70514, 70515, 70521, 70522, 70523, 70524, 70525, 70602, 70603, 70604, 70605, 70606, 70607, 71301, 71302, 71303, 71304, 71305, 71306, 71307, and 71308 of P.L. 119-21; and section 2 of P.L. 119-29 apply for taxable years beginning after December 31, 2025.

AB870-ASA1,13 Section 13. 71.26 (2) (a) 13. of the statutes is created to read:

AB870-ASA1,12,3 71.26 (2) (a) 13. Except as otherwise provided in this subchapter, to prevent the double inclusion or omission of any item of income, loss, deduction, or basis, plus or minus, as appropriate, an amount equal to the difference in income for the taxable year due to state and federal differences, including differences arising from the difference in basis of assets disposed of in a transaction in which gain or loss is recognized for state tax purposes, different depreciation methods or difference in basis of depreciable assets, different elections, or transitional adjustments due to differences in the statutes.

AB870-ASA1,14 Section 14. 71.26 (2) (b) 15. a. of the statutes is amended to read:

AB870-ASA1,12,13 71.26 (2) (b) 15. a. For taxable years beginning after December 31, 2022, and before January 1, 2026, for a corporation, conduit, or common law trust that qualifies as a regulated investment company, real estate mortgage investment conduit, real estate investment trust, or financial asset securitization investment trust under the Internal Revenue Code, “net income” means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income, federal real estate investment trust, or financial asset securitization investment trust taxable income of the corporation, conduit, or trust as determined under the Internal Revenue Code.

AB870-ASA1,15 Section 15. 71.26 (2) (b) 16. of the statutes is created to read:

AB870-ASA1,12,23 71.26 (2) (b) 16. a. For taxable years beginning after December 31, 2025, for a corporation, conduit, or common law trust that qualifies as a regulated investment company, real estate mortgage investment conduit, real estate investment trust, or financial asset securitization investment trust under the Internal Revenue Code, “net income” means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income, federal real estate investment trust, or financial asset securitization investment trust taxable income of the corporation, conduit, or trust as determined under the Internal Revenue Code.

AB870-ASA1,13,2 b. For purposes of subd. 16. a., “Internal Revenue Code” means the federal Internal Revenue Code as amended to December 31, 2025, except as provided in subd. 16. c. and d. and s. 71.98, and subject to subd. 16. e.

AB870-ASA1,13,18 c. For purposes of subd. 16. a., “Internal Revenue Code” does not include the following provisions of federal public laws for taxable years beginning after December 31, 2025: section 422 of P.L. 108-357; section 1351 of P.L. 109-58; section 403 (q) of P.L. 109-135; section 104 of P.L. 109-432; section 11 (e) and (g) of P.L. 110- 172; section 301 of P.L. 110-245; section 15351 of P.L. 110-246; section 801 of division C of P.L. 110-343; sections 211, 212, 213, and 214 of P.L. 111-226; section 2122 of P.L. 111-240; sections 322 and 323 of P.L. 112-240; section 1101 of P.L. 114- 74; sections 128, 143, 144, 169, 326, and 411 of division Q of P.L. 114-113; sections 11011, 11012, 13201 (a) to (e) and (g), 13221, 13301, 13304 (a), (b), and (d), 13531, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97; sections 101 (d) 201 to 207, and 302 of division U of P.L. 115-141; section 145 of division Q of P.L. 116-94; sections 2304 and 2306 of P.L. 116-136; sections 111, 116, and 210 of division EE of P.L. 116-260; section 9041 of P.L. 117-2; section 13903 (b) of P.L. 117-169; and sections 70105, 70301, 70303, 70307, 70312, 70321, 70322, 70323, 70341, 70342, 70351, 70353, 70354, 70421, 70425, 70426, 70434, 70509, and 70601 of P.L. 119-21.

AB870-ASA1,13,21 d. For purposes of subd. 16. a., “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2025.

AB870-ASA1,15,5 e. For purposes of subd. 16. a., the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this subdivision, apply for Wisconsin purposes at the same time as for federal purposes, except changes made by sections 1, 3, 4, and 5 of P.L. 106-519; sections 101 and 102 of P.L. 108-357; section 1310 of P.L. 109-58; section 11146 of P.L. 109-59; section 513 of P.L. 109-222; sections 8233 and 8235 of P.L. 110-28; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), and 707 of division C of P.L. 110-343; sections 1232, 1251, 1501, and 1502 of division B of P.L. 111-5; section 216 of P.L. 111-226; sections 753, 754, and 760 of P.L. 111-312; sections 104, 318, 326, 327, and 411 of P.L. 112-240; sections 159 (a) and 221 of division A of P.L. 113-295; section 2 of P.L. 114-7; section 305 of division P and sections 123, 125, 126, 127, 151, 152, 153, 165, 166, 167, 170, 171, 189, and 191 of division Q of P.L. 114-113; sections 13204, 13206, 13305 (a), 13601, and 13801 of P.L. 115-97; sections 40304, 40305, 40306, 40309, 40412, and 40414 of P.L. 115-123; section 101 (c) of division T of P.L. 115-141; sections 101 (e), 102, 301, and 401 (a) (47) and (195), (b) (13), (17), (22), and (30), and (d) (1) (D) (v), (vi), (xiii), and (xvii) (II) and (4) (a) of division U of P.L. 115- 141; sections 101, 104, 114, 115, 116, 118, 130, 132, and 144 of division Q of P.L. 116-94; section 2307 of division A of P.L. 116-136; sections 106, 114, 115, 118 (a) and (d), 133, 137, and 138 of division EE of P.L. 116-260; sections 5003, 9671, 9673, 9675, and 9708 of P.L. 117-2; section 307 of division P of P.L. 117-103; section 4151 of division FF of P.L. 117-328; section 2 of P.L. 118-146; sections 2, 3, and 4 of P.L. 118-148; section 2 of P.L. 118-167; sections 2, 3, 4, and 5 of P.L. 118-168; section 202 of P.L. 118-258; sections 70101, 70102, 70103, 70104, 70106, 70107, 70108, 70109, 70110, 70111, 70112, 70113, 70114, 70115, 70116, 70117, 70118, 70119, 70120, 70201, 70202, 70203, 70204, 70302, 70304, 70305, 70306, 70308, 70309, 70311, 70313, 70331, 70352, 70401, 70402, 70403, 70404, 70405, 70411, 70412, 70413, 70414, 70415, 70416, 70422, 70423, 70424, 70427, 70428, 70429, 70430, 70431, 70432, 70433, 70435, 70436, 70437, 70438, 70439, 70501, 70502, 70503, 70504, 70505, 70506, 70507, 70508, 70510, 70511, 70512, 70513, 70514, 70515, 70521, 70522, 70523, 70524, 70525, 70602, 70603, 70604, 70605, 70606, 70607, 71301, 71302, 71303, 71304, 71305, 71306, 71307, and 71308 of P.L. 119-21; and section 2 of P.L. 119-29 apply for taxable years beginning after December 31, 2025.

AB870-ASA1,16 Section 16. 71.26 (3) (e) 1. of the statutes is amended to read:

AB870-ASA1,15,13 71.26 (3) (e) 1. So that payments for wages, salaries, commissions and bonuses of employees and officers may be deducted only if the name, address and amount paid to each resident of this state to whom compensation of $600 or more that equals or exceeds the dollar amount in effect for the calendar year under section 6041 (a) of the Internal Revenue Code has been paid during the taxable year is reported or if the department of revenue is satisfied that failure to report has resulted in no revenue loss to this state.

AB870-ASA1,17 Section 17. 71.30 (2) of the statutes is amended to read:

AB870-ASA1,16,10 71.30 (2) Allocation of gross income, deductions, credits between 2 or more businesses. In any case of 2 or more organizations, trades, or businesses (whether or not incorporated, whether or not organized in the United States, whether or not affiliated, and whether or not unitary) owned or controlled directly or indirectly by the same interests, the secretary or his or her delegate may distribute, apportion, or allocate gross income, deductions, credits, or allowances between or among such organizations, trades, or businesses, if he or she determines that such distribution, apportionment or allocation is necessary in order to prevent evasion of taxes or clearly to reflect the income of any of such organizations, trades or businesses. The authority granted under this subsection is in addition to, and not a limitation of or dependent on, the provisions of ss. 71.05 (6) (a) 24. and (b) 45., 71.26 (2) (a) 7. and 8., 71.34 (1k) (j) and (k), 71.45 (2) (a) 16. and 17., and 71.80 (23) as is necessary to clearly reflect income attributable to Wisconsin. In making such distributions, apportionments, or allocations, the department shall first apply, to the extent practicable, the standards and methods prescribed under section 482 of the Internal Revenue Code and the regulations thereunder, including the arm’s length standard and accepted transfer pricing methods. The department shall provide taxpayers with an opportunity to submit documentation consistent with U.S. Treasury Regulation 1.6662-6 to substantiate the pricing of controlled transactions.