Amendment ASA1-AB910

AB910-ASA1,16,6 d. For purposes of subd. 12. a., “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2017.

AB910-ASA1,16,9 e. For purposes of subd. 12. 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.

AB910-ASA1,34 Section 34. 71.26 (3) (j) of the statutes is amended to read:

AB910-ASA1,16,18 71.26 (3) (j) Sections 243, 244, 245, 245A, 246 and 246A are excluded and replaced by the rule that corporations may deduct from income dividends received from a corporation with respect to its common stock if the corporation receiving the dividends owns, directly or indirectly, during the entire taxable year at least 70 percent of the total combined voting stock of the payor corporation. In this paragraph, “dividends received" means gross dividends minus taxes on those dividends paid to a foreign nation and claimed as a deduction under this chapter. The same dividends may not be deducted more than once.

AB910-ASA1,35 Section 35 . 71.34 (1g) (k) 1. of the statutes, as created by 2017 Wisconsin Act 59, is amended to read:

AB910-ASA1,16,24 71.34 (1g) (k) 1. For taxable years beginning after December 31, 2016, and before January 1, 2018, for tax option corporations, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2016, except as provided in subds. 2., 3., and 5. and s. 71.98 and subject to subd. 4.

AB910-ASA1,36 Section 36. 71.34 (1g) (k) 3. of the statutes, as created by 2017 Wisconsin Act 59, is amended to read:

AB910-ASA1,17,6 71.34 (1g) (k) 3. For purposes of this paragraph, “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2016, except that “Internal Revenue Code” includes sections 11024, 11025, and 13543 of P.L. 115-97.

AB910-ASA1,37 Section 37 . 71.34 (1g) (L) of the statutes is created to read:

AB910-ASA1,17,11 71.34 (1g) (L) 1. For taxable years beginning after December 31, 2017, for tax option corporations, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2017, except as provided in subds. 2., 3., and 5. and s. 71.98 and subject to subd. 4.

AB910-ASA1,18,4 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, 2017: section 13113 of P.L. 103-66; sections 1, 3, 4, and 5 of P.L. 106-519; sections 101, 102, and 422 of P.L. 108-357; sections 1310 and 1351 of P.L. 109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L. 110-28; 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 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251, 1501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L. 111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L. 111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and 411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division P of P.L. 114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113; and sections 11011, 13201 (a) to (e) and (g), 13206, 13301, 13801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97.

AB910-ASA1,18,6 3. For purposes of this paragraph, “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2017.

AB910-ASA1,18,9 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

AB910-ASA1,18,13 5. For purposes of this paragraph, section 1366 (f) of the Internal Revenue Code (relating to pass-through of items to shareholders) is modified by substituting the tax under s. 71.35 for the taxes under sections 1374 and 1375 of the Internal Revenue Code.

AB910-ASA1,38 Section 38 . 71.42 (2) (k) 1. of the statutes, as created by 2017 Wisconsin Act 59, is amended to read:

AB910-ASA1,18,19 71.42 (2) (k) 1. For taxable years beginning after December 31, 2016, and before January 1, 2018, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2016, except as provided in subds. 2. to 4. and s. 71.98 and subject to subd. 5.

AB910-ASA1,39 Section 39. 71.42 (2) (k) 3. of the statutes, as created by 2017 Wisconsin Act 59, is amended to read:

AB910-ASA1,18,25 71.42 (2) (k) 3. For purposes of this paragraph, “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2016, except that “Internal Revenue Code” includes sections 11024, 11025, and 13543 of P.L. 115-97.

AB910-ASA1,40 Section 40. 71.42 (2) (L) of the statutes is created to read:

AB910-ASA1,19,4 71.42 (2) (L) 1. For taxable years beginning after December 31, 2017, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2017, except as provided in subds. 2. to 4. and s. 71.98 and subject to subd. 5.

AB910-ASA1,19,22 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, 2017: section 13113 of P.L. 103-66; sections 1, 3, 4, and 5 of P.L. 106-519; sections 101, 102, and 422 of P.L. 108-357; sections 1310 and 1351 of P.L. 109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L. 110-28; 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 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251, 1501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L. 111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L. 111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and 411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division P of P.L. 114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113; and sections 11011, 13201 (a) to (e) and (g), 13206, 13301, 13801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97.

AB910-ASA1,19,24 3. For purposes of this paragraph, “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2017.

AB910-ASA1,20,2 4. For purposes of this paragraph, “Internal Revenue Code" does not include section 847 of the federal Internal Revenue Code.

AB910-ASA1,20,5 5. 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.

AB910-ASA1,41 Section 41 . 71.64 (9) (b) (intro.) of the statutes is amended to read:

AB910-ASA1,20,10 71.64 (9) (b) (intro.) The department shall from time to time adjust the withholding tables to reflect any changes in income tax rates, any applicable surtax or any changes in dollar amounts in s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2) resulting from statutory changes, except as follows:

AB910-ASA1,42 Section 42 . 71.67 (5) (a) of the statutes is amended to read:

AB910-ASA1,20,17 71.67 (5) (a) Wager winnings. A person holding a license to sponsor and manage races under s. 562.05 (1) (b) or (c) shall withhold from the amount of any payment of pari-mutuel winnings under s. 562.065 (3) (a) or (3m) (a) an amount determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), (1p), or (1q), or (1r) if the amount of the payment is more than $1,000.

AB910-ASA1,43 Section 43 . 71.67 (5m) of the statutes is amended to read:

AB910-ASA1,20,25 71.67 (5m) Withholding from payments to purchase assignment of lottery prize. A person that purchases an assignment of a lottery prize shall withhold from the amount of any payment made to purchase the assignment the amount that is determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), (1p), or (1q), or (1r). Subsection (5) (b), (c) and (d), as it applies to the amounts withheld under sub. (5) (a), applies to the amount withheld under this subsection.

AB910-ASA1,44 Section 44. 71.98 (3) of the statutes is amended to read:

AB910-ASA1,21,10 71.98 (3) Depreciation, depletion, and amortization. For taxable years beginning after December 31, 2013, and for purposes of computing depreciation and amortization, the Internal Revenue Code means the federal Internal Revenue Code in effect for federal purposes on January 1, 2014 , except that sections 13201 (f), 13203, 13204, and 13205 of P.L. 115-97 apply at the same time as for federal purposes. For taxable years beginning after December 31, 2013, and for purposes of computing depletion, the Internal Revenue code Code means the federal Internal Revenue code Code in effect for federal purposes for the year in which the property is placed in service.

AB910-ASA1,45 Section 45. 71.98 (9) of the statutes is created to read:

AB910-ASA1,21,20 71.98 (9) Rollover amounts, airline carrier bankruptcy. For taxable years beginning after December 31, 2011, section 1106 of P.L. 112-95, as amended by P.L. 113-243 and section 307 of Division Q of P.L. 114-113, as it relates to the treatment of distributions to qualified airline employees that are rolled over into an individual retirement account, due to airline carrier bankruptcy. This provision does not apply to federal provisions relating to extensions of time to file amended federal returns. A qualified airline employee may file a claim for a refund to exclude income provided under this subsection pursuant to the time period specified in s. 71.75 (2) or no later than 180 days after the effective date of this subsection .... [LRB inserts date].

AB910-ASA1,46 Section 46 . 77.54 (9a) (fc) of the statutes is created to read:

AB910-ASA1,22,2 77.54 (9a) (fc) An entity described under section 501 (c) (2) of the Internal Revenue Code that is exempt from federal income tax under section 501 (a) of the Internal Revenue Code and that is organized for the exclusive purpose of holding title to property, collecting income from that property, and turning over the entire amount of that income, less expenses, to an entity described under par. (f).

AB910-ASA1,47 Section 47 . 77.54 (9m) of the statutes is amended to read:

AB910-ASA1,22,13 77.54 (9m) The sales price from the sale of and the storage, use, or other consumption of tangible personal property, or items or property under s. 77.52 (1) (b) or (c), sold to a construction contractor who that, in fulfillment of a real property construction activity, transfers the tangible personal property, or items or property under s. 77.52 (1) (b) or (c), to an entity described under sub. (9a) (b), (c), (d), (em), or (f), or (fc), if such tangible personal property, or items or property, becomes a component of a facility in this state that is owned by the entity. In this subsection, “facility" means any building, shelter, parking lot, parking garage, athletic field, athletic park, storm sewer, water supply system, or sewerage and waste water treatment facility, but does not include a highway, street, or road.

AB910-ASA1,48 Section 48 . 224.50 (2) (a) of the statutes, as affected by 2017 Wisconsin Act 59, is amended to read:

AB910-ASA1,22,24 224.50 (2) (a) Except as provided in s. 224.51, establish and administer a college savings program that allows an individual, trust, legal guardian, or entity described under 26 USC 529 (e) (1) (C) to establish a college savings account to cover tuition, fees, and the costs of room and board, books, supplies, and equipment required for the enrollment or attendance of a beneficiary at an eligible educational institution, as defined under 26 USC 529, and to cover tuition expenses in connection with enrollment or attendance at an elementary or secondary public, private, or religious school, as described in section 11032 of P.L. 115-97, related to qualified tuition programs under 26 USC 529.

AB910-ASA1,49 Section 49. Initial applicability.

AB910-ASA1,23,3 (1) Depreciation, depletion, and amortization. The treatment of section 71.98 (3) of the statutes first applies retroactively to taxable years beginning after December 31, 2013.

AB910-ASA1,23,5 (2) Building materials exemption. The treatment of section 77.54 (9m) of the statutes first applies retroactively to contracts entered into on September 1, 2017.

AB910-ASA1,50 Section 50 . Effective dates. This act takes effect on the day after publication, except as follows:

AB910-ASA1,23,10 (1) Sales and use tax exemption for title holding entities. The treatment of section 77.54 (9a) (fc) and (9m) of the statutes takes effect retroactively to September 1, 2017.

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