AB990: Bill Text

AB990,8,8 71.46 (1) (a) The For taxable years beginning before January 1, 1996, the taxes to be assessed, levied and collected upon Wisconsin net incomes of corporations shall be computed at the rate of 7.9%.

AB990, s. 15 Section 15. 71.46 (1) (b) of the statutes is created to read:

AB990,8,12 71.46 (1) (b) For taxable years beginning after December 31, 1995, the taxes to be assessed, levied and collected upon Wisconsin net incomes of corporations shall be computed at the following rates:

AB990,8,13 1. On all net income from $0 to $99,999, 5.9%.

AB990,8,14 2. On all net income exceeding $99,999 but not exceeding $249,999, 6.4%.

AB990,8,15 3. On all net income exceeding $249,999 but not exceeding $499,999, 7.4%.

AB990,8,16 4. On all net income exceeding $499,999, 7.9%.

AB990, s. 16 Section 16. 71.46 (2) of the statutes is renumbered 71.46 (2) (a) and amended to read:

AB990,8,21 71.46 (2) (a) The For taxable years beginning before January 1, 1996, the corpo ration franchise tax imposed under s. 71.43 (2) and measured by Wisconsin net in come shall be computed at the rate of 7.9%.

AB990, s. 17 Section 17. 71.46 (2) (b) of the statutes is created to read:

AB990,8,25 71.46 (2) (b) For taxable years beginning after December 31, 1995, the corpora tion franchise tax imposed under s. 71.43 (2) and measured by Wisconsin net income shall be computed at the following rates:

AB990,9,1 1. For all net income from $0 to $99,999, 5.9%.

AB990,9,2 2. For all net income exceeding $99,999 but not exceeding $249,999, 6.4%.

AB990,9,3 3. For all net income exceeding $249,999 but not exceeding $499,999, 7.4%.

AB990,9,4 4. For all net income exceeding $499,999, 7.9%.

AB990, s. 18 Section 18. 71.475 of the statutes is created to read:

AB990,9,10 71.475 Corporate minimum tax. (1) Imposition. If the tax imposed on a corporation under s. 71.43 (1) or (2), not considering the credits under s. 71.47 (1di), (1dj), (1dL), (1ds) and (2m) and subch. IX is less than the tax under this section, there is imposed on a corporation, instead of the tax under s. 71.43 (1) or (2), an alternative minimum tax computed as follows:

AB990,9,13 (a) Adjust net apportionable income of a corporation subject to apportionment and net Wisconsin income of a business subject to separate accounting in the manner under section 56, except section 56 (a) (4), and section 58 of the internal revenue code.

AB990,9,16 (b) Add to the amount under par. (a) the preferences under section 57 of the in ternal revenue code to the extent that those preferences reduce net income for pur poses of the tax imposed under s. 71.43 (1) or (2).

AB990,9,19 (c) Multiply the amount under par. (b) by the apportionment percentage under s. 71.45 applicable to the corporation for purposes of the tax imposed under s. 71.43 (1) or (2) if the corporation is subject to apportionment.

AB990,9,21 (d) Add nonapportionable income that has a situs in this state to the amount under par. (c).

AB990,9,24 (e) From the amount under par. (d), subtract Wisconsin minimum tax net busi ness losses. The department of revenue shall promulgate rules defining net business losses for minimum tax purposes.

AB990,10,3 (f) Multiply the exemption amount under section 55 (d) (2) and (3) of the inter nal revenue code by the apportionment percentage under s. 71.45 applicable to the corporation for purposes of the tax imposed under s. 71.43 (1) or (2).

AB990,10,4 (g) Subtract the amount under par. (f) from the amount under par. (e).

AB990,10,8 (h) If the corporation is a tax-option corporation, subtract from the amount un der par. (g) the portion of that amount equal to the ownership percentage of share holders who are residents of this state and of nonresident shareholders who file indi vidual returns in this state for purposes of the tax imposed under s. 71.02 or 71.08.

AB990,10,9 (i) Multiply the amount under par. (h) by 4.6%.

AB990,10,10 (j) Subtract the credit under s. 71.47 (3) (b) from the amount under par. (i).

AB990,10,16 (2) Administration. The department of revenue may impose, enforce and col lect the minimum tax provided in this section and may take any action, conduct any proceeding and in all respects proceed as it is authorized in respect to income or fran chise taxes imposed in this chapter. The income and franchise tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest and penalties shall apply to the minimum tax.

AB990, s. 19 Section 19. 71.49 (1) (g) of the statutes is created to read:

AB990,10,18 71.49 (1) (g) Corporate minimum tax under s. 71.475.

AB990, s. 20 Section 20. Initial applicability; corporate minimum tax.

AB990,10,22 (1)  The treatment of sections 71.285, 71.29 (1) (b), (2) and (7) (b), 71.30 (3) (g), 71.475 and 71.49 (1) (g) of the statutes first applies to taxable years beginning on Jan uary 1, 1996.

AB990,11,3 (2)  Capital gains, alternative minimum tax. The treatment of section 71.08 (1) (a) of the statutes first applies to taxable years beginning on January 1 of the year in which this act takes effect.

AB990,11,4 (End)