AB40-ASA1,687,1122 70.11 (12) (a) Property owned by units which are organized in this state of the
23following organizations: the Salvation Army; Goodwill Industries, not exceeding 10
24acres of property in any municipality; the Boy Scouts of America; the Boys' Clubs of
25America; the Girl Scouts or Camp Fire Girls; the Young Men's Christian Association,

1not exceeding 40 acres for property that is located outside the limit of any
2incorporated city or village and not exceeding 10 acres for property that is located
3inside the limit of any incorporated city or village; the Young Women's Christian
4Association, not exceeding 40 acres for property that is located outside the limit of
5any incorporated city or village and not exceeding 10 acres for property that is located
6inside the limit of any incorporated city or village; Jewish Community Centers of
7North America, not exceeding 40 acres for property that is located outside the limit
8of any incorporated city or village and not exceeding 10 acres for property that is
9located inside the limit of any incorporated city or village;
or any person as trustee
10for them of property used for the purposes of those organizations, provided no
11pecuniary profit results to any individual owner or member.
AB40-ASA1,1278k 12Section 1278k. 70.11 (12) (c) of the statutes is created to read:
AB40-ASA1,687,1913 70.11 (12) (c) All property of a resale store that is owned by a nonprofit
14organization that qualifies for the income tax exemption under section 501 (c) (3) of
15the Internal Revenue Code, if at least 50 percent of the revenue generated by the
16resale store is given to one other nonprofit organization located either in the same
17county where the resale store is located or in a county adjacent to the county where
18the resale store is located. In this paragraph, "resale store" means a store that
19primarily sells used tangible personal property at retail.
AB40-ASA1,1278n 20Section 1278n. 70.11 (27) (a) 6m. of the statutes is amended to read:
AB40-ASA1,688,421 70.11 (27) (a) 6m. "Storage" means the holding or safekeeping of raw materials
22or components before introduction into the production process; the holding,
23safekeeping or preservation of work in process or of components outside the
24production process; and the holding or safekeeping of finished products or of
25components after completion of the production process; whether or not any natural

1processes occur during that holding, safekeeping or preservation; but "storage" does
2not include the holding for 3 days or less of work in process to ensure the
3uninterrupted flow of all or part of the production process. " Storage" also does not
4include aging natural cheese.
AB40-ASA1,1278p 5Section 1278p. 70.11 (27) (a) 7. of the statutes is amended to read:
AB40-ASA1,688,86 70.11 (27) (a) 7. "Used directly" means used so as to cause a physical or chemical
7change in raw materials or to cause a movement of raw materials, work in process
8or finished products, including aging natural cheese.
AB40-ASA1,1278r 9Section 1278r. 70.11 (41m) of the statutes is repealed.
AB40-ASA1,1279 10Section 1279. 70.111 (18) of the statutes is amended to read:
AB40-ASA1,689,1011 70.111 (18) Solar and wind energy Energy systems. Solar Biogas or synthetic
12gas
energy systems, solar energy systems, and wind energy systems. In this
13subsection, "biogas or synthetic gas energy system" means equipment which directly
14converts biomass, as defined under section 45K (c) (3) of the Internal Revenue Code,
15as interpreted by the Internal Revenue Service, into biogas or synthetic gas,
16equipment which generates electricity, heat, or compressed natural gas exclusively
17from biogas or synthetic gas, equipment which is used exclusively for the direct
18transfer or storage of biomass, biogas, or synthetic gas, and any structure used
19exclusively to shelter or operate such equipment, or the portion of any structure used
20in part to shelter or operate such equipment that is allocable to such use, if all such
21equipment, and any such structure, is located at the same site, and includes manure,
22substrate, and other feedstock collection and delivery systems, pumping and
23processing equipment, gasifiers and digester tanks, biogas and synthetic gas
24cleaning and compression equipment, fiber separation and drying equipment, and
25heat recovery equipment, but does not include equipment or components that are

1present as part of a conventional energy system. In this subsection, "synthetic gas"
2is a gas that qualifies as a renewable resource under s. 196.378 (1) (h) 1. h.
In this
3subsection, "solar energy system" means equipment which directly converts and
4then transfers or stores solar energy into usable forms of thermal or electrical energy,
5but does not include equipment or components that would be present as part of a
6conventional energy system or a system that operates without mechanical means.
7In this subsection, "wind energy system" means equipment which converts and then
8transfers or stores energy from the wind into usable forms of energy, but does not
9include equipment or components that would be present as part of a conventional
10energy system.
AB40-ASA1,1279d 11Section 1279d. 70.114 (1) (b) 2. of the statutes is amended to read:
AB40-ASA1,690,612 70.114 (1) (b) 2. For land purchased on or after July 1, 2011, "estimated value,"
13for the year during which land is purchased, means the lesser of the purchase price
14or the determination of the land's equalized valuation under s. 70.57 in the year
15before the year during which the land is purchased, increased or decreased to reflect
16the annual percentage change in the equalized valuation of all property, excluding
17improvements, in the taxation district, as determined by comparing the most recent
18determination of equalized valuation under s. 70.57 for that property, except that if
19the land was exempt from taxation in the year prior to the year during which the
20Department purchased the land, or enrolled in the forest cropland program under
21subch. I of ch. 77 or the managed forest land program under subch. VI of ch. 77 at the
22time of purchase,
"estimated value," for the year during which the land is purchased
23means the lesser of either the purchase price; or the land's equalized valuation under
24s. 70.57
or an amount that would result in a payment under sub. (4) that is equal to
25$10 per acre, whichever is greater. "Estimated value," for later years, means the

1value that was used for calculating the aid payment under this section for the prior
2year increased or decreased to reflect the annual percentage change in the equalized
3valuation of all property, excluding improvements, in the taxation district, as
4determined by comparing the most recent determination of equalized valuation
5under s. 70.57 for that property to the next preceding determination of equalized
6valuation under s. 70.57 for that property.
AB40-ASA1,1280 7Section 1280. 70.114 (1) (f) of the statutes is amended to read:
AB40-ASA1,690,108 70.114 (1) (f) "Taxing jurisdiction" means any entity, not including the state,
9authorized by law to levy taxes on general property, as defined in s. 70.02, that are
10measured by the property's value.
AB40-ASA1,1281 11Section 1281. 70.114 (3) of the statutes is amended to read:
AB40-ASA1,690,1412 70.114 (3) Ascertaining rate. Each year, the department shall ascertain from
13the clerks of the taxation district
the aggregate net general property tax rate for
14taxation districts to which aids are paid under this section.
AB40-ASA1,1282 15Section 1282. 70.114 (4) (a) of the statutes is amended to read:
AB40-ASA1,690,2216 70.114 (4) (a) On Except as provided under par. (c), on or before January 31,
17the department shall pay to each treasurer of a taxation district, with respect to each
18parcel of land acquired by the department within the taxation district on or before
19January 1 of the preceding year, an amount determined by multiplying each parcel's
20estimated value equated to the average level of assessment in the taxation district
21by the aggregate net general property tax rate that would apply to the parcel of land
22if it were taxable, as shown on property tax bills prepared for that year under s. 74.09.
AB40-ASA1,1283 23Section 1283. 70.114 (4) (c) of the statutes is created to read:
AB40-ASA1,691,224 70.114 (4) (c) The department shall withhold from the payment amount
25determined under par. (a) the state's proportionate share of the tax that would be

1levied on the parcel if it were taxable and shall deposit that amount into the
2conservation fund.
AB40-ASA1,1286 3Section 1286. 70.119 (6) (a) of the statutes is renumbered 70.119 (6).
AB40-ASA1,1287 4Section 1287. 70.119 (6) (b) of the statutes is repealed.
AB40-ASA1,1287b 5Section 1287b. 70.41 of the statutes is repealed.
AB40-ASA1,1287d 6Section 1287d. 70.855 of the statutes is created to read:
AB40-ASA1,691,9 770.855 State assessment of commercial property. (1) Applicability. The
8department of revenue shall assess real and personal property assessed as
9commercial property under s. 70.32 (2) (a) 2. if all of the following apply:
AB40-ASA1,691,1310 (a) The property owner and the governing body of the municipality where the
11property is located submit a written request to the department on or before March
121 of the year of the assessment to have the department assess the property owner's
13real and personal commercial property located in the municipality.
AB40-ASA1,691,1514 (b) The written request submitted under par. (a) specifies the items of personal
15property and parcels of real property for the department's assessment.
AB40-ASA1,691,1716 (c) The assessed value of the property owner's commercial property in the
17municipality in the previous year, as specified under par. (b), is at least $24,000,000.
AB40-ASA1,691,2018 (d) The assessed value of the property owner's commercial property in the
19municipality in the previous year, as specified under par. (b), represents at least 9
20percent of the total assessed value of all property in the municipality.
AB40-ASA1,691,2121 (e) The property is located in a 4th class city.
AB40-ASA1,692,3 22(2) Valuation. (a) The department of revenue shall determine the full market
23value of the property subject to the request under sub. (1). The department may
24request from the property owner or the municipality where the property is located
25any information that the department considers necessary to perform its duties under

1this section. Failure to submit the requested information to the department shall
2result in denial of any right of redetermination by the tax appeals commission by the
3party failing to provide the requested information.
AB40-ASA1,692,74 (b) The department shall determine the value of the property subject to the
5request under sub. (1) no later than June 1 and shall provide written notice to the
6property owner and the governing body of the municipality of its findings and the
7value it has determined for the affected property.
AB40-ASA1,692,98 (c) Appeal of the determination of the department under this subsection shall
9be made to the tax appeals commission.
AB40-ASA1,692,14 10(3) Assessor duty. The assessor of the municipality where the property is
11located shall use the department's valuation of the property under sub. (2) for
12determining the property's value on the assessment roll, adjusted, to the best of the
13assessor's ability, to reflect the assessment ratio of other property located in the
14municipality.
AB40-ASA1,692,22 15(4) Costs. (a) The department of revenue shall impose a fee on each
16municipality in which commercial property is assessed under this section equal to
17the cost of the department's assessment of that property under this section. Except
18as provided in par. (b), each municipality that is assessed a fee under this paragraph
19shall collect the amount of the fee as a special charge against the taxable property
20located in the municipality, except that no municipality may apply the special charge
21disproportionately to owners of commercial property relative to owners of other
22property.
AB40-ASA1,693,223 (b) If the department of revenue does not receive the fee imposed on a
24municipality under par. (a) by March 31 of the year following the department's
25determination under sub. (2) (b), the department shall reduce the distribution made

1to the municipality under s. 79.02 (2) (b) by the amount of the fee and shall transfer
2that amount to the appropriation under s. 20.566 (2) (ga).
AB40-ASA1,1287g 3Section 1287g. 70.995 (3) of the statutes is renumbered 70.995 (3) (a).
AB40-ASA1,1287h 4Section 1287h. 70.995 (3) (b) of the statutes is created to read:
AB40-ASA1,693,115 70.995 (3) (b) For purposes of sub. (2) (c), entities that age natural cheese on
6behalf of others are considered establishments that primarily manufacture cheese
7under code 2022 of the Standard Industrial Classification Manual, 1987 edition,
8published by the U.S. office of management and budget, regardless of whether the
9entity that ages the natural cheese made or owns the cheese. For purposes of this
10paragraph, the process of aging natural cheese includes the aging, curing, or
11ripening of natural cheese.
AB40-ASA1,1287j 12Section 1287j. 70.995 (9) of the statutes is amended to read:
AB40-ASA1,693,1713 70.995 (9) Any aggrieved party may appeal a determination by the tax appeals
14commission under sub. (8) to the circuit court for Dane County under s. 73.015 or to
15the circuit court for the county where the taxpayer's commercial domicile, as defined
16in s. 71.01 (1b), is located, where the taxpayer owns other property, or where the
17taxpayer transacts business in this state
.
AB40-ASA1,1288 18Section 1288. 71.01 (6) (i) of the statutes is created to read:
AB40-ASA1,697,419 71.01 (6) (i) For taxable years that begin after December 31, 2012, for natural
20persons and fiduciaries, except fiduciaries of nuclear decommissioning trust or
21reserve funds, "Internal Revenue Code" means the federal Internal Revenue Code
22as amended to December 31, 2010, excluding sections 103, 104, and 110 of P.L.
23102-227, sections 13113, 13150 (d), 13171 (d), 13174, and 13203 (d) of P.L. 103-66,
24sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of P.L. 104-188, sections 1, 3,
254, and 5 of P.L. 106-519, sections 162 and 165 of P.L. 106-554, section 431 of P.L.

1107-16, sections 101 and 301 (a) of P.L. 107-147, sections 106, 201, and 202 of P.L.
2108-27, section 1201 of P.L. 108-173, sections 306, 308, 316, 401, and 403 (a) of P.L.
3108-311, sections 101, 102, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of P.L.
4108-357, P.L. 109-1, sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328,
51329, 1348, and 1351 of P.L. 109-58, section 11146 of P.L. 109-59, section 301 of P.L.
6109-73, sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e),
7(j), and (q), and 405 of P.L. 109-135, sections 101, 207, 503, and 513 of P.L. 109-222,
8P.L. 109-432, except sections 117, 406, 409, 410, 412, 417, 418, 424, and 425 of
9division A and section 403 of division C of P.L. 109-432, P.L. 110-28, except sections
108215, 8231, 8232, 8234, and 8236 of P.L. 110-28, P.L. 110-140, sections 2, 3, and 5
11of P.L. 110-142, P.L. 110-166, sections 3 (b) and 11 (b), (e), and (g) of P.L. 110-172,
12P.L. 110-185, P.L. 110-234, section 301 of P.L. 110-245, P.L. 110-246, except sections
134, 15312, 15313, 15314, 15316, and 15342 of P.L. 110-246, sections 3071, 3081, and
143082 of P.L. 110-289, section 9 (e) of P.L. 110-317, P.L. 110-343, except sections 116,
15208, 211, and 301 of division B and sections 313 and 504 of division C of P.L. 110-343,
16P.L. 111-5, except sections 1261, 1262, 1401, 1402, 1521, 1522, 1531, and 1541 of
17division B of P.L. 111-5, section 201 of P.L. 111-147, P.L. 111-148, except sections
181322, 1515, 9003, 9004, 9005, 9012, 9013, 9014, 9016, 9021, 9022, 10108, 10902,
1910908, and 10909 of P.L. 111-148, P.L. 111-152, except sections 1403 and 1407 of P.L.
20111-152, P.L. 111-203, except section 1601 of P.L. 111-203, P.L. 111-226, except
21sections 215 and 217 of P.L. 111-226, P.L. 111-240, except sections 2014, 2043, 2111,
222112, and 2113 of P.L. 111-240, and P.L. 111-312, and as amended by section 1858
23of P.L. 112-10, section 1108 of P.L. 112-95, sections 40211, 40241, 40242, and 100121
24of P.L. 112-141, and sections 101 and 902 of P.L. 112-240, and as indirectly affected
25by P.L. 99-514, P.L. 100-203, P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179,

1P.L. 101-239, P.L. 101-280, P.L. 101-508, P.L. 102-90, P.L. 102-227, excluding
2sections 103, 104, and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, P.L. 103-66,
3excluding sections 13113, 13150 (d), 13171 (d), 13174, and 13203 (d) of P.L. 103-66,
4P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L. 104-7, P.L. 104-117, P.L. 104-188,
5excluding sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of P.L. 104-188, P.L.
6104-191, P.L. 104-193, P.L. 105-33, P.L. 105-34, P.L. 105-178, P.L. 105-206, P.L.
7105-277, P.L. 106-36, P.L. 106-170, P.L. 106-230, P.L. 106-554, excluding sections
8162 and 165 of P.L. 106-554, P.L. 106-573, P.L. 107-15, P.L. 107-16, excluding
9section 431 of P.L. 107-16, P.L. 107-22, P.L. 107-116, P.L. 107-134, P.L. 107-147,
10excluding sections 101 and 301 (a) of P.L. 107-147, P.L. 107-181, P.L. 107-210, P.L.
11107-276, P.L. 107-358, P.L. 108-27, excluding sections 106, 201, and 202 of P.L.
12108-27, P.L. 108-121, P.L. 108-173, excluding section 1201 of P.L. 108-173, P.L.
13108-203, P.L. 108-218, P.L. 108-311, excluding sections 306, 308, 316, 401, and 403
14(a) of P.L. 108-311, P.L. 108-357, excluding sections 101, 102, 201, 211, 242, 244, 336,
15337, 422, 847, 909, and 910 of P.L. 108-357, P.L. 108-375, P.L. 108-476, P.L. 109-7,
16P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328,
171329, 1348, and 1351 of P.L. 109-58, P.L. 109-59, excluding section 11146 of P.L.
18109-59, P.L. 109-73, excluding section 301 of P.L. 109-73, P.L. 109-135, excluding
19sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and
20(q), and 405 of P.L. 109-135, P.L. 109-151, P.L. 109-222, excluding sections 101, 207,
21503, and 513 of P.L. 109-222, P.L. 109-227, P.L. 109-280, sections 117, 406, 409, 410,
22412, 417, 418, 424, and 425 of division A and section 403 of division C of P.L. 109-432,
23sections 8215, 8231, 8232, 8234, and 8236 of P.L. 110-28, P.L. 110-141, P.L. 110-142,
24excluding sections 2, 3, and 5 of P.L. 110-142, P.L. 110-172, excluding sections 3 (b)
25and 11 (b), (e), and (g) of P.L. 110-172, P.L. 110-245, excluding section 301 of P.L.

1110-245, sections 4, 15312, 15313, 15314, 15316, and 15342 of P.L. 110-246, P.L.
2110-289, excluding sections 3071, 3081, and 3082 of P.L. 110-289, P.L. 110-317,
3excluding section 9 (e) of P.L. 110-317, sections 116, 208, 211, and 301 of division B
4and sections 313 and 504 of division C of P.L. 110-343, P.L. 110-351, P.L. 110-458,
5sections 1261, 1262, 1401, 1402, 1521, 1522, 1531, and 1541 of division B of P.L.
6111-5, P.L. 111-92, P.L. 111-147, excluding section 201 of P.L. 111-147, sections
71322, 1515, 9003, 9004, 9005, 9012, 9013, 9014, 9016, 9021, 9022, 10108, 10902,
810908, and 10909 of P.L. 111-148, sections 1403 and 1407 of P.L. 111-152, P.L.
9111-192, section 1601 of P.L. 111-203, sections 215 and 217 of P.L. 111-226, sections
102014, 2043, 2111, 2112, and 2113 of P.L. 111-240, P.L. 111-325, section 1858 of P.L.
11112-10, section 1108 of P.L. 112-95, and sections 40211, 40241, 40242, 100121 of P.L.
12112-141, and sections 101 and 902 of P.L. 112-240. The Internal Revenue Code
13applies for Wisconsin purposes at the same time as for federal purposes, except that
14changes made by P.L. 106-573, sections 9004, 9005, 9012, 9013, 9014, 9016, and
1510902 of P.L. 111-148, sections 1403 and 1407 of P.L. 111-152, section 1858 of P.L.
16112-10, section 1108 of P.L. 112-95, and sections 40211, 40241, 40242, and 100121
17of P.L. 112-141 do not apply for taxable years beginning before January 1, 2013.
18Amendments to the federal Internal Revenue Code enacted after December 31, 2010,
19do not apply to this paragraph with respect to taxable years beginning after
20December 31, 2010, except that changes to the Internal Revenue Code made by
21section 1858 of P.L. 112-10, section 1108 of P.L. 112-95, and sections 40211, 40241,
2240242, and 100121 of P.L. 112-141, and changes that indirectly affect the provisions
23applicable to this subchapter made by section 1858 of P.L. 112-10, section 1108 of P.L.
24112-95, and sections 40211, 40241, 40242, and 100121 of P.L. 112-141, do not apply
25for taxable years beginning before January 1, 2013, and changes to the Internal

1Revenue Code made by sections 101 and 902 of P.L. 112-240, and changes that
2indirectly affect the provisions applicable to this subchapter made by sections 101
3and 902 of P.L. 112-240, apply for Wisconsin purposes at the same time as for federal
4purposes.
AB40-ASA1,1289 5Section 1289. 71.01 (6) (o) of the statutes is repealed.
AB40-ASA1,1290 6Section 1290. 71.01 (6) (p) of the statutes is renumbered 71.01 (6) (a).
AB40-ASA1,1291 7Section 1291. 71.01 (6) (q) of the statutes is renumbered 71.01 (6) (b).
AB40-ASA1,1292 8Section 1292. 71.01 (6) (r) of the statutes is renumbered 71.01 (6) (c).
AB40-ASA1,1293 9Section 1293. 71.01 (6) (s) of the statutes is renumbered 71.01 (6) (d).
AB40-ASA1,1294 10Section 1294. 71.01 (6) (t) of the statutes is renumbered 71.01 (6) (e).
AB40-ASA1,1295 11Section 1295. 71.01 (6) (u) of the statutes is renumbered 71.01 (6) (f).
AB40-ASA1,1296 12Section 1296. 71.01 (6) (um) of the statutes is renumbered 71.01 (6) (g).
AB40-ASA1,1297 13Section 1297. 71.01 (6) (un) of the statutes is renumbered 71.01 (6) (h) and
14amended to read:
AB40-ASA1,700,2215 71.01 (6) (h) For taxable years that begin after December 31, 2010, and before
16January 1, 2013,
for natural persons and fiduciaries, except fiduciaries of nuclear
17decommissioning trust or reserve funds, "Internal Revenue Code" means the federal
18Internal Revenue Code as amended to December 31, 2010, excluding sections 103,
19104, and 110 of P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174, and 13203
20(d) of P.L. 103-66, sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of P.L.
21104-188, sections 1, 3, 4, and 5 of P.L. 106-519, sections 162 and 165 of P.L. 106-554,
22P.L. 106-573, section 431 of P.L. 107-16, sections 101 and 301 (a) of P.L. 107-147,
23sections 106, 201, and 202 of P.L. 108-27, section 1201 of P.L. 108-173, sections 306,
24308, 316, 401, and 403 (a) of P.L. 108-311, sections 101, 102, 201, 211, 242, 244, 336,
25337, 422, 847, 909, and 910 of P.L. 108-357, P.L. 109-1, sections 1305, 1308, 1309,

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

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

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

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

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

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

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

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

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

1forces, as defined in 26 USC 7701 (a) (15), and who dies while on active duty if the
2individual's death occurred while he or she was serving in a combat zone or as a result
3of wounds, disease, or injury incurred while serving in a combat zone. The
4subtraction in this subdivision applies to the income that is received by the
5individual in the year in which he or she dies, and in the year immediately preceding
6that year if the individual has not filed a return for the year before the year in which
7he or she dies.
AB40-ASA1,1304g 8Section 1304g. 71.05 (6) (b) 49. of the statutes is created to read:
AB40-ASA1,708,129 71.05 (6) (b) 49. a. Subject to the definitions provided in subd. 49. b. to g. and
10the limitations specified in subd. 49. h. to j. for taxable years beginning after
11December 31, 2013, tuition expenses that are paid by a claimant for tuition for a pupil
12to attend an eligible institution.
AB40-ASA1,708,1513 b. In this subdivision, "claimant" means an individual who claims a pupil as
14a dependent under section 151 (c) of the Internal Revenue Code on his or her tax
15return.
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