Amendment JR4 AA2-AB1

LRBa1521/1

JK:eev:jm

January 2014 Special Session

2013 - 2014 LEGISLATURE

ASSEMBLY AMENDMENT 2, TO 2013 ASSEMBLY BILL 1

February 5, 2014 - Offered by Representative Kooyenga.

AB1-AA2,1,1 At the locations indicated, amend the bill as follows:

AB1-AA2,1,2 1. Page 13, line 14: after that line insert:

AB1-AA2,1,3 " Section 36d. 71.26 (4) (a) of the statutes is amended to read:

AB1-AA2,2,7 71.26 (4) (a) Except as provided in par. (b), a corporation, except a tax-option corporation or an insurer to which s. 71.45 (4) applies, may offset against its Wisconsin net business income any Wisconsin net business loss sustained in any of the next 15 20 preceding taxable years, if the corporation was subject to taxation under this chapter in the taxable year in which the loss was sustained, to the extent not offset by other items of Wisconsin income in the loss year and by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed. For purposes of this subsection Wisconsin net business income or loss shall consist of all the income attributable to the operation of a trade or business in this state, less the business expenses allowed as deductions in computing net income. The Wisconsin net business income or loss of corporations engaged in business within and without the state shall be determined under s. 71.25 (6) and (10) to (12). Nonapportionable losses having a Wisconsin situs under s. 71.25 (5) (b) shall be included in Wisconsin net business loss; and nonapportionable income having a Wisconsin situs under s. 71.25 (5) (b), whether taxable or exempt, shall be included in other items of Wisconsin income and Wisconsin net business income for purposes of this subsection.".

AB1-AA2,2,8 2. Page 13, line 25: after that line insert:

AB1-AA2,2,9 " Section 38d. 71.45 (4) (a) of the statutes is amended to read:

AB1-AA2,2,19 71.45 (4) (a) Except as provided in par. (b), insurers computing tax under this subchapter may subtract from Wisconsin net income any Wisconsin net business loss sustained in any of the next 15 20 preceding taxable years to the extent not offset by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed and computed without regard to sub. (2) (a) 8. and 9. and this subsection and limited to the amount of net income, but no loss incurred for a taxable year before taxable year 1987 by a nonprofit service plan of sickness care under ch. 148, or dental care under s. 447.13 may be treated as a net business loss of the successor service insurer under ch. 613 operating by virtue of s. 148.03 or 447.13.".

AB1-AA2,2,20 3. Page 16, line 2: after that line insert:

AB1-AA2,2,22 " Section 41d. 71.98 (3) of the statutes, as created by 2013 Wisconsin Act 20, is amended to read:

AB1-AA2,3,5 71.98 (3) Depreciation, depletion, and amortization. For taxable years beginning after December 31, 2013, and for purposes of computing depreciation, depletion, and amortization, the Internal Revenue Code means the federal Internal Revenue Code in effect on January 1, 2014. For taxable years beginning after December 31, 2013, and for purposes of computing depletion, the Internal Revenue code means the federal Internal Revenue code in effect for the year in which the property is placed in service.".

AB1-AA2,3,6 4. Page 18, line 6: after that line insert:

AB1-AA2,3,9 "(5m) Net operating losses; depletion. The treatment of sections 71.26 (4) (a), 71.45 (4) (a), and 71.98 (3) of the statutes first applies to taxable years beginning on January 1, 2014.".

AB1-AA2,3,10 (End)