AB1-CSA1, s. 72 15Section 72. 71.26 (2) (a) 9. of the statutes is created to read:
AB1-CSA1,30,2016 71.26 (2) (a) 9. Minus the amount added, pursuant to subd. 7. or s. 71.05 (6) (a)
1724., 71.34 (1k) (j), or 71.45 (2) (a) 16., to the federal income of a related entity that
18paid interest expenses or rental expenses to the corporation, to the extent that the
19related entity could not offset such amount with the deduction allowable under subd.
208. or s. 71.05 (6) (b) 45., 71.34 (1k) (k), or 71.45 (2) (a) 17.
AB1-CSA1, s. 73 21Section 73. 71.30 (2) of the statutes is amended to read:
AB1-CSA1,31,822 71.30 (2) Allocation of gross income, deductions, credits between 2 or more
23businesses.
In any case of 2 or more organizations, trades or businesses (whether or
24not incorporated, whether or not organized in the United States and whether or not
25affiliated) owned or controlled directly or indirectly by the same interests, the

1secretary or his or her delegate may distribute, apportion or allocate gross income,
2deductions, credits or allowances between or among such organizations, trades or
3businesses, if he or she determines that such distribution, apportionment or
4allocation is necessary in order to prevent evasion of taxes or clearly to reflect the
5income of any of such organizations, trades or businesses. The authority granted
6under this subsection is in addition to, and not a limitation of or dependent on, the
7provisions of ss. 71.05 (6) (a) 24. and (b) 45., 71.26 (2) (a) 7. and 8., 71.34 (1k) (j) and
8(k), 71.45 (2) (a) 16. and 17., and 71.80 (23).
AB1-CSA1, s. 74 9Section 74. 71.34 (1) of the statutes is renumbered 71.34 (1k).
AB1-CSA1, s. 75 10Section 75. 71.34 (1am) of the statutes is created to read:
AB1-CSA1,31,1311 71.34 (1am) "Aggregate effective tax rate" means the sum of the effective tax
12rates imposed by a state, U.S. possession, foreign country, or any combination
13thereof, on the person or entity.
AB1-CSA1, s. 76 14Section 76. 71.34 (1b) of the statutes is created to read:
AB1-CSA1,31,1815 71.34 (1b) "Effective tax rate" means the maximum tax rate imposed by the
16state, U.S. possession, or foreign country, multiplied by the apportionment
17percentage, if any, applicable to the person or entity under the laws of that state, U.S.
18possession, or foreign country.
AB1-CSA1, s. 77 19Section 77. 71.34 (1e) of the statutes is created to read:
AB1-CSA1,31,2320 71.34 (1e) For purposes of sub. (1k) (j) and (L), "interest expenses" means
21interest that would otherwise be deductible under section 163 of the Internal
22Revenue Code and deductible in the computation of Wisconsin adjusted gross
23income.
AB1-CSA1, s. 78 24Section 78. 71.34 (1k) (j) of the statutes is created to read:
AB1-CSA1,32,5
171.34 (1k) (j) An addition shall be made for any amount deducted or excluded
2under the Internal Revenue Code for interest expenses and rental expenses that are
3directly or indirectly paid, accrued, or incurred to, or in connection directly or
4indirectly with one or more direct or indirect transactions with, one or more related
5entities.
AB1-CSA1, s. 79 6Section 79. 71.34 (1k) (k) of the statutes is created to read:
AB1-CSA1,32,97 71.34 (1k) (k) A deduction shall be allowed for the amount added to gross
8income under par. (j), to the extent that the conditions under s. 71.80 (23) are
9satisfied.
AB1-CSA1, s. 80 10Section 80. 71.34 (1k) (L) of the statutes is created to read:
AB1-CSA1,32,1511 71.34 (1k) (L) A deduction shall be allowed for the amount added, pursuant to
12par. (j) or s. 71.05 (6) (a) 24., 71.26 (2) (a) 7., or 71.45 (2) (a) 16., to the federal income
13of a related entity that paid interest expenses or rental expenses to the corporation,
14to the extent that the related entity could not offset such amount with the deduction
15allowable under par. (k) or s. 71.05 (6) (b) 45., 71.26 (2) (a) 8., or 71.45 (2) (a) 17.
AB1-CSA1, s. 81 16Section 81. 71.34 (1L) of the statutes is created to read:
AB1-CSA1,32,1817 71.34 (1L) "Qualified real estate investment trust" has the meaning given in
18s. 71.22 (9ad).
AB1-CSA1, s. 82 19Section 82. 71.34 (1p) of the statutes is created to read:
AB1-CSA1,33,520 71.34 (1p) "Related entity" means any person related to a taxpayer as provided
21under section 267 or 1563 of the Internal Revenue Code during all or a portion of the
22taxpayer's taxable year and any real estate investment trust under section 856 of the
23Internal Revenue Code, except a qualified real estate investment trust, if more than
2450 percent of any class of the beneficial interests or shares of the real estate
25investment trust are owned directly, indirectly, or constructively by the taxpayer, or

1any person related to the taxpayer, during all or a portion of the taxpayer's taxable
2year. For purposes of this subsection, the constructive ownership rules of section 318
3(a) of the Internal Revenue Code, as modified by section 856 (d) (5) of the Internal
4Revenue Code, shall apply in determining the ownership of stock, assets, or net
5profits of any person.
AB1-CSA1, s. 83 6Section 83. 71.34 (1r) of the statutes is created to read:
AB1-CSA1,33,127 71.34 (1r) For purposes of sub. (1k) (j) and (L), "rental expenses" means the
8gross amounts that would otherwise be deductible in the computation of Wisconsin
9adjusted gross income for the use of, or the right to use, real property and tangible
10personal property in connection with real property, including services furnished or
11rendered in connection with such property, regardless of how reported for financial
12accounting purposes and regardless of how computed.
AB1-CSA1, s. 84 13Section 84. 71.42 (1) of the statutes is renumbered 71.42 (1g).
AB1-CSA1, s. 85 14Section 85. 71.42 (1b) of the statutes is created to read:
AB1-CSA1,33,1715 71.42 (1b) "Aggregate effective tax rate" means the sum of the effective tax
16rates imposed by a state, U.S. possession, foreign country, or any combination
17thereof, on the person or entity.
AB1-CSA1, s. 86 18Section 86. 71.42 (1s) of the statutes is created to read:
AB1-CSA1,33,2219 71.42 (1s) "Effective tax rate" means the maximum tax rate imposed by the
20state, U.S. possession, or foreign country, multiplied by the apportionment
21percentage, if any, applicable to the person or entity under the laws of that state, U.S.
22possession, or foreign country.
AB1-CSA1, s. 87 23Section 87. 71.42 (1t) of the statutes is created to read:
AB1-CSA1,34,3
171.42 (1t) For purposes of s. 71.45 (2) (a) 16. and 18., "interest expenses" means
2interest that would otherwise be deductible under section 163 of the Internal
3Revenue Code, as adjusted under s. 71.45 (2).
AB1-CSA1, s. 88 4Section 88. 71.42 (4d) of the statutes is created to read:
AB1-CSA1,34,65 71.42 (4d) "Qualified real estate investment trust" has the meaning given in
6s. 71.22 (9ad).
AB1-CSA1, s. 89 7Section 89. 71.42 (4m) of the statutes is created to read:
AB1-CSA1,34,188 71.42 (4m) "Related entity" means any person related to a taxpayer as provided
9under section 267 or 1563 of the Internal Revenue Code during all or a portion of the
10taxpayer's taxable year and any real estate investment trust under section 856 of the
11Internal Revenue Code, except a qualified real estate investment trust, if more than
1250 percent of any class of the beneficial interests or shares of the real estate
13investment trust are owned directly, indirectly, or constructively by the taxpayer, or
14any person related to the taxpayer, during all or a portion of the taxpayer's taxable
15year. For purposes of this subsection, the constructive ownership rules of section 318
16(a) of the Internal Revenue Code, as modified by section 856 (d) (5) of the Internal
17Revenue Code, shall apply in determining the ownership of stock, assets, or net
18profits of any person.
AB1-CSA1, s. 90 19Section 90. 71.42 (4n) of the statutes is created to read:
AB1-CSA1,34,2520 71.42 (4n) For purposes of s. 71.45 (2) (a) 16. and 18., "rental expenses" means
21the gross amounts that would otherwise be deductible under the Internal Revenue
22Code, as adjusted under s. 71.45 (2), for the use of, or the right to use, real property
23and tangible personal property in connection with real property, including services
24furnished or rendered in connection with such property, regardless of how reported
25for financial accounting purposes and regardless of how computed.
AB1-CSA1, s. 91
1Section 91. 71.45 (2) (a) 10. of the statutes, as affected by 2007 Wisconsin Acts
220
and 96, is amended to read:
AB1-CSA1,35,83 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
4computed under s. 71.47 (1dd) to (1dx), (3h), (3n), (3p), (3w), (5e), (5f), (5g), (5h), (5i),
5(5j), and (5k) and not passed through by a partnership, limited liability company, or
6tax-option corporation that has added that amount to the partnership's, limited
7liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1)
8(1k) (g) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4), and (5).
AB1-CSA1, s. 92 9Section 92. 71.45 (2) (a) 16. of the statutes is created to read:
AB1-CSA1,35,1410 71.45 (2) (a) 16. By adding to federal taxable income any amount deducted or
11excluded under the Internal Revenue Code for interest expenses and rental expenses
12that are directly or indirectly paid, accrued, or incurred to, or in connection directly
13or indirectly with one or more direct or indirect transactions with, one or more
14related entities.
AB1-CSA1, s. 93 15Section 93. 71.45 (2) (a) 17. of the statutes is created to read:
AB1-CSA1,35,1816 71.45 (2) (a) 17. By subtracting from federal taxable income the amount added
17to federal taxable income under subd. 16., to the extent that the conditions under s.
1871.80 (23) are satisfied.
AB1-CSA1, s. 94 19Section 94. 71.45 (2) (a) 18. of the statutes is created to read:
AB1-CSA1,35,2420 71.45 (2) (a) 18. A deduction shall be allowed for the amount added, pursuant
21to subd. 16. or s. 71.05 (6) (a) 24., 71.26 (2) (a) 7., or 71.34 (1k) (j), to the federal income
22of a related entity that paid interest expenses or rental expenses to the insurer, to
23the extent that the related entity could not offset such amount with the deduction
24allowable under subd. 17. or s. 71.05 (6) (b) 45., 71.26 (2) (a) 8., or 71.34 (1k) (k).
AB1-CSA1, s. 95 25Section 95. 71.80 (1) (b) of the statutes is amended to read:
AB1-CSA1,36,11
171.80 (1) (b) In any case of 2 or more organizations, trades or businesses
2(whether or not incorporated, whether or not organized in the United States and
3whether or not affiliated) owned or controlled directly or indirectly by the same
4interests, the secretary or the secretary's delegate may distribute, apportion or
5allocate gross income, deductions, credits or allowances between or among such
6organizations, trades or businesses, if the secretary determines that such
7distribution, apportionment or allocation is necessary in order to prevent evasion of
8taxes or clearly to reflect the income of any of such organizations, trades or
9businesses. The authority granted under this subsection is in addition to, and not
10a limitation of or dependent on, the provisions of sub. (23) and ss. 71.05 (6) (a) 24. and
11(b) 45., 71.26 (2) (a) 7. and 8., 71.34 (1k) (j) and (k), and 71.45 (2) (a) 16. and 17.
AB1-CSA1, s. 96 12Section 96. 71.80 (23) of the statutes is created to read:
AB1-CSA1,36,1713 71.80 (23) Related entity addbacks. (a) The deductions provided under ss.
1471.05 (6) (b) 45., 71.26 (2) (a) 8., 71.34 (1k) (k), and 71.45 (2) (a) 17. shall be allowed
15for any interest expenses or rental expenses described in ss. 71.05 (6) (a) 24., 71.26
16(2) (a) 7., 71.34 (1k) (j), or 71.45 (2) (a) 16. if any of the following applies to the interest
17expenses or rental expenses:
AB1-CSA1,37,618 1. The related entity to which the taxpayer paid, accrued, or incurred the
19interest expenses or rental expenses during the taxable year directly or indirectly
20paid, accrued, or incurred such amounts in the same taxable year to a person who
21is not a related entity or the related entity to which the taxpayer paid, accrued, or
22incurred such expenses is a holding company or a direct or indirect subsidiary of a
23holding company, as defined in 12 USC 1841 (a) or (l) or 12 USC 1467a (a) (1) (D), not
24including any entity that is organized under the laws of another jurisdiction and that
25primarily holds and manages investments of a bank, subsidiary, or affiliate. For

1purposes of this subdivision, "interest" does not include interest that is paid in
2connection with any debt that is incurred to acquire the taxpayer's assets or stock
3under section 368 of the Internal Revenue Code. If a portion of such an interest
4expense or rental expense is paid, accrued, or incurred in the same taxable year to
5a person who is not a related entity, that portion shall be allowed as a deduction to
6the taxpayer.
AB1-CSA1,37,227 2. The related entity was subject to tax on, or measured by, its net income or
8receipts in this state or any state, U.S. possession, or foreign country; the related
9entity's tax base in such state, U.S. possession, or foreign country included the
10income received from the taxpayer for the interest expenses or rental expenses; the
11related entity's aggregate effective tax rate applied to such income or receipts was
12at least 80 percent of the taxpayer's aggregate effective tax rate; and the related
13entity is not a real estate investment trust under section 856 of the Internal Revenue
14Code, other than a qualified real estate investment trust. For purposes of this
15subdivision, "any state, U.S. possession, or foreign country" does not include any
16state, U.S. possession, or foreign country under the laws of which the taxpayer files
17with the related entity, or the related entity files with another entity, a combined
18income tax report or return, a consolidated income tax report or return, or any other
19report or return that is due because of the imposition of a tax that is measured on or
20by income or receipts, if the report or return results in eliminating the tax effects of
21transactions, directly or indirectly, between either the taxpayer and the related
22entity or between the related entity and another entity.
AB1-CSA1,38,423 3. The taxpayer establishes that the transaction satisfies any other conditions
24that the department considers relevant, based on the facts and circumstances, to
25determine that the primary motivation for the transaction was one or more business

1purposes other than the avoidance or reduction of state income or franchise taxes;
2that the transaction changed the economic position of the taxpayer in a meaningful
3way apart from tax effects; and that the interest expenses or rental expenses were
4paid, accrued, or incurred using terms that reflect an arm's-length relationship.
AB1-CSA1,38,125 (b) Notwithstanding par. (a), the deductions provided under ss. 71.05 (6) (b) 45.,
671.26 (2) (a) 8., 71.34 (1k) (k), and 71.45 (2) (a) 17. shall not be allowed for any interest
7expenses or rental expenses that are directly or indirectly paid, accrued, or incurred
8to, or in connection directly or indirectly with one or more direct or indirect
9transactions with, one or more related entities, if the aggregate amount paid,
10accrued, or incurred for those related entity transactions is not disclosed on a
11separate form prescribed by the department in the manner prescribed by the
12department.
AB1-CSA1, s. 97 13Section 97. 79.04 (4m) of the statutes, as created by 2007 Wisconsin Act 20,
14is renumbered 79.04 (4m) (a) and amended to read:
AB1-CSA1,38,2215 79.04 (4m) (a) Beginning Except as provided in par. (b), beginning with
16distributions in 2009, for production plants described under subs. (1) and (2), if in any
17year the payments to the municipality and county in which the production plant is
18located would be greater under subs. (6) and (7) (c) 1. based on the production plant's
19name-plate capacity than under sub. (1) or (2) based on the depreciated net book
20value of the production plant, the municipality and county shall receive payments
21under subs. (6) and (7) (c) 1., rather than under sub. (1) or (2), beginning in that year
22and in each year thereafter.
AB1-CSA1, s. 98 23Section 98. 79.04 (4m) (b) of the statutes is created to read:
AB1-CSA1,39,724 79.04 (4m) (b) For municipalities where production plants are located, if the
25combination of amounts determined for production plants under sub. (1) or under

1subs. (6) and (7) (c) 1. and the amounts determined for substations and general
2structures under sub. (1) are less for a municipality than the amount determined
3under sub. (1) based on the value of the property used to calculate the municipality's
4payment in 1990, reduced to reflect the value of property that is no longer in use, the
5municipality's payment shall be calculated under sub. (1) using the value of the
6property used to calculate the municipality's payment in 1990, reduced to reflect the
7value of property no longer in use.
AB1-CSA1, s. 99 8Section 99. 86.30 (2) (e) of the statutes is amended to read:
AB1-CSA1,39,199 86.30 (2) (e) Aid payments. General transportation aids under this section
10shall be calculated and distributed on the basis of a calendar year. General
11transportation aids to municipalities shall be paid in 4 equal installments on the first
12Monday in January, April, July and October. General transportation aids to counties
13shall be paid in 3 installments consisting of 25 percent of the amount under sub. (9)
14(b) on the first Monday in January, 50 percent of the amount under sub. (9) (b) on the
15first Monday in July, and 25 percent of the amount under sub. (9) (b) on the first
16Monday in October.
If adjustments are necessary, the department may adjust any
17of the scheduled aid payments in a calendar year. The payments shall be made from
18the appropriation under s. 20.395 (1) (as) or (at) for the fiscal year in which the
19payments are made.
AB1-CSA1, s. 100 20Section 100. 100.52 (1) (bm) of the statutes is created to read:
AB1-CSA1,39,2221 100.52 (1) (bm) "Commercial mobile service" has the meaning given in s. 196.01
22(2i).
AB1-CSA1, s. 101 23Section 101. 100.52 (1) (f) of the statutes is amended to read:
AB1-CSA1,40,224 100.52 (1) (f) "Residential customer" means an individual who is furnished
25with basic local exchange service or commercial mobile service by a

1telecommunications utility, but does not include an individual who operates a
2business at his or her residence.
AB1-CSA1, s. 102 3Section 102. 118.14 (title) of the statutes is amended to read:
AB1-CSA1,40,4 4118.14 (title) Age of pupils; phase in of 4-year-old kindergarten.
AB1-CSA1, s. 103 5Section 103. 118.14 (3) of the statutes is created to read:
AB1-CSA1,40,86 118.14 (3) (a) Except a provided in par. (b), if a school board establishes a
74-year-old kindergarten program, the program shall be available to all pupils
8eligible for the program under sub. (1) (a) or s. 120.12 (25).
AB1-CSA1,40,129 (b) A school board that was operating a 4-year-old kindergarten program in
10the 2007-08 school year that did not comply with par. (a) shall make a 4-year-old
11kindergarten program available to all pupils eligible for the program under sub. (1)
12(a) or s. 120.12 (25) by the beginning of the 2013-14 school year.
AB1-CSA1, s. 104 13Section 104. 118.153 (4) (b) of the statutes is amended to read:
AB1-CSA1,40,2014 118.153 (4) (b) Upon receipt of a school board's annual report under par. (a) the
15state superintendent shall pay to the school district from the appropriation under s.
1620.255 (2) (bc), for each pupil enrolled in a program for children at risk who achieved
17at least 3 of the objectives under par. (c) in the previous school year, additional state
18aid in an amount equal to 10% of the school district's average per pupil aids provided
19under s. 20.835 (7) (a), 1991 stats., and s. 20.255 (2) (ac) and (at) in the previous
20school year.
AB1-CSA1, s. 105 21Section 105. 121.004 (7) (c) 1. (intro.) of the statutes is amended to read:
AB1-CSA1,41,222 121.004 (7) (c) 1. (intro.) A pupil enrolled in kindergarten may be counted only
23if the pupil attains the age permitted under s. 120.12 (25) or required under s. 118.14
24for kindergarten admission. A kindergarten pupil, including a pupil enrolled in a

14-year-old kindergarten program being phased in under s. 118.14 (3) (b),
shall be
2counted as one-half pupil except that:
AB1-CSA1, s. 106 3Section 106. 121.004 (7) (cm) of the statutes is amended to read:
AB1-CSA1,41,84 121.004 (7) (cm) A pupil enrolled in a 4-year-old kindergarten program,
5including a 4-year-old kindergarten program being phased in under s. 118.14 (3) (b),

6that provides the required number of hours of direct pupil instruction under s. 121.02
7(1) (f) 2. shall be counted as 0.6 pupil if the program annually provides at least 87.5
8additional hours of outreach activities.
AB1-CSA1, s. 107 9Section 107. 121.007 of the statutes is amended to read:
AB1-CSA1,41,15 10121.007 Use of state aid; exemption from execution. All moneys paid to
11a school district under s. 20.255 (2) (ac), (at), (bc), (cg), and (cr), shall be used by the
12school district solely for the purposes for which paid. Such moneys are exempt from
13execution, attachment, garnishment, or other process in favor of creditors, except as
14to claims for salaries or wages of teachers and other school employees and as to
15claims for school materials, supplies, fuel, and current repairs.
AB1-CSA1, s. 108 16Section 108. 121.15 (1m) (a) 3. of the statutes is amended to read:
AB1-CSA1,41,2117 121.15 (1m) (a) 3. Beginning in the 1999-2000 2007-2008 school year,
18annually the state shall pay to school districts, from the appropriation under s.
1920.255 (2) (ac), an amount equal to $75,000,000, less the sum of the reductions made
20to the amount in the previous and current fiscal years under s. 16.518 (2m) (b),
on
21the 4th first Monday in July of the following school year.
AB1-CSA1, s. 109 22Section 109. 121.15 (1m) (a) 4. of the statutes is created to read:
AB1-CSA1,42,223 121.15 (1m) (a) 4. Beginning in the 2007-08 school year, in addition to the
24payment delay under subd. 3., annually the state shall pay to school districts, from
25the appropriation under s. 20.255 (2) (ac), an amount equal to $125,000,000, less the

1sum of the reductions made to the amount in the previous and current fiscal years
2under s. 16.518 (2m) (a), on the first Monday in July of the following school year.
AB1-CSA1, s. 110 3Section 110. 121.15 (1m) (b) of the statutes is amended to read:
AB1-CSA1,42,84 121.15 (1m) (b) The percentages under subs. (1) (a) and (1g) (a) shall be reduced
5proportionally to reflect the payments made under par. (a). 3. The percentage paid
6in June under subs. (1) (a) and (1g) (a) shall be reduced to reflect the payment made
7under par. (a) 4.
School districts shall treat the payments made in July under par.
8(a) as if they had been received in the previous school year.
AB1-CSA1, s. 111 9Section 111. 350.12 (3j) (b) of the statutes is amended to read:
AB1-CSA1,42,1310 350.12 (3j) (b) The fee for a trail use sticker issued for a snowmobile that is
11exempt from registration under sub. (2) (b) or (bn) is $17.25 $34.25. A trail use
12sticker issued for such a snowmobile may be issued only by the department and
13persons appointed by the department and expires on June 30 of each year.
AB1-CSA1, s. 112 14Section 112. 628.348 (1) of the statutes, as created by 2007 Wisconsin Act 20,
15is amended to read:
AB1-CSA1,42,2116 628.348 (1) Training requirement. No On and after January 1, 2009, no person
17may solicit, negotiate, or sell long-term care insurance unless the person is a licensed
18intermediary and he or she completes has completed the initial training portion of
19the training program under s. 49.45 (31) (c) by January 1, 2009, and completes the
20ongoing training under s. 49.45 (31) (c) every 24 months after completing the initial
21training.
AB1-CSA1, s. 113 22Section 113. 946.42 (1) (a) of the statutes is renumbered 946.42 (1) (a) 1.
23(intro.) and amended to read:
AB1-CSA1,42,2524 946.42 (1) (a) 1. (intro.) "Custody" includes without limitation actual all of the
25following:
AB1-CSA1,43,6
1a. Actual custody of an institution, including a juvenile correctional facility, as
2defined in s. 938.02 (10p), a secured residential care center for children and youth,
3as defined in s. 938.02 (15g), a juvenile detention facility, as defined in s. 938.02 (10r),
4a Type 2 residential care center for children and youth, as defined in s. 938.02 (19r),
5a facility used for the detention of persons detained under s. 980.04 (1), a facility
6specified in s. 980.065, or a juvenile portion of a county jail, or actual.
AB1-CSA1,43,8 7b. Actual custody of a peace officer or institution guard. "Custody" also includes
8the constructive
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