LRB-5406/3
JS:skg&mkd:dw
1995 - 1996 LEGISLATURE
April 24, 1996 - Introduced by
Committee on Senate Organization, by request of
Mark Bugher, Secretary of the Department of Revenue. Referred to Joint
committee on Finance.
SB674,1,7
1An Act to repeal 71.01 (6) (c), 71.22 (4) (c), 71.22 (4m) (a), 71.26 (2) (b) 3., 71.34
2(1g) (c) and 71.42 (2) (b);
to amend 71.01 (6) (i), 71.01 (6) (j), 71.01 (7r), 71.22
3(4) (i), 71.22 (4) (j), 71.22 (4m) (g), 71.22 (4m) (h), 71.26 (2) (b) 9., 71.26 (2) (b)
410., 71.26 (3) (y), 71.34 (1g) (i), 71.34 (1g) (j), 71.365 (1m), 71.42 (2) (h), 71.42 (2)
5(i) and 71.45 (2) (a) 13.; and
to create 71.01 (6) (k), 71.22 (4) (k), 71.22 (4m) (i),
671.26 (2) (b) 11., 71.34 (1g) (k) and 71.42 (2) (j) of the statutes;
relating to:
7redefining the internal revenue code for the income tax and the franchise tax.
Analysis by the Legislative Reference Bureau
This bill creates the definition of "internal revenue code" for the income tax and
franchise tax as it applies for taxable years that begin after December 31, 1995. The
bill also slightly modifies the definition of that term as it applies to the 2 previous
taxable years. The primary substantive effects are to deny the earned income tax
credit to persons who have more than $2,350 of investment income and to provide
tax benefits for military personnel who serve in the former Yugoslavia.
This bill will be referred to the joint survey committee on tax exemptions for a
detailed analysis, which will be printed as an appendix to this bill.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB674, s. 1
8Section
1. 71.01 (6) (c) of the statutes is repealed.
SB674,2,233
71.01
(6) (i) For taxable years that begin after December 31, 1993, and before
4January 1, 1995, for natural persons and fiduciaries, except fiduciaries of nuclear
5decommissioning trust or reserve funds, "internal revenue code" means the federal
6internal revenue code as amended to December 31, 1993, excluding sections 103, 104
7and 110 of P.L.
102-227 and sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d)
8and 13215 of P.L.
103-66 and as amended by P.L.
103-296, P.L.
103-337
and, P.L.
9103-465 and P.L. 104-7, excluding section 1 of P.L. 104-7, and as indirectly affected
10by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179,
11P.L.
101-239, P.L.
101-280, P.L.
101-508, P.L.
102-90, P.L.
102-227, excluding
12sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
103-66,
13excluding sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215 of P.L.
14103-66, P.L.
103-296, P.L.
103-337 and, P.L.
103-465 and P.L. 104-7, excluding
15section 1 of P.L. 104-7. The internal revenue code applies for Wisconsin purposes at
16the same time as for federal purposes. Amendments to the federal internal revenue
17code enacted after December 31, 1993, do not apply to this paragraph with respect
18to taxable years beginning after December 31, 1993, and before January 1, 1995,
19except that changes to the internal revenue code made by P.L.
103-296, P.L.
103-337 20and, P.L.
103-465 and P.L. 104-7, excluding section 1 of P.L. 104-7, and changes that
21indirectly affect the provisions applicable to this subchapter made by P.L.
103-276,
22P.L.
103-337 and, P.L.
103-465 and P.L. 104-7, excluding section 1 of P.L. 104-7, 23apply for Wisconsin purposes at the same time as for federal purposes.
SB674,3,21
171.01
(6) (j) For taxable years that begin after December 31, 1994,
and before
2January 1, 1996, for natural persons and fiduciaries, except fiduciaries of nuclear
3decommissioning trust or reserve funds, "internal revenue code" means the federal
4internal revenue code as amended to December 31, 1994, excluding sections 103, 104
5and 110 of P.L.
102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and 13203
6(d) of P.L.
103-66,
and as amended by P.L. 104-7 and P.L. 104-117 and as indirectly
7affected by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
8101-179, P.L.
101-239, P.L.
101-280, P.L.
101-508, P.L.
102-90, P.L.
102-227,
9excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486 and
10P.L.
103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
11P.L.
103-66, P.L.
103-296, P.L.
103-337 and, P.L.
103-465 and "internal revenue
12code" means amendments to section 162 of the federal internal revenue code made
13by, P.L.
104-7 and P.L. 104-117. The internal revenue code applies for Wisconsin
14purposes at the same time as for federal purposes. Amendments to the federal
15internal revenue code enacted after December 31, 1994
, except amendments to
16section 162 of the federal internal revenue code made by P.L. 104-7, do not apply to
17this paragraph with respect to taxable years beginning after December 31, 1994
, and
18before January 1, 1996, except that changes to the internal revenue code made by
19P.L. 104-7 and P.L. 104-117 and changes that indirectly affect the provisions
20applicable to this subchapter made by P.L. 104-7 and P.L. 104-117 apply for
21Wisconsin purposes at the same time as for federal purposes.
SB674, s. 4
22Section
4. 71.01 (6) (k) of the statutes is created to read:
SB674,4,1423
71.01
(6) (k) For taxable years that begin after December 31, 1995, for natural
24persons and fiduciaries, except fiduciaries of nuclear decommissioning trust or
25reserve funds, "internal revenue code" means the federal internal revenue code as
1amended to December 31, 1995, excluding sections 103, 104 and 110 of P.L.
102-227 2and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66, and as
3amended by P.L.
104-117, and as indirectly affected by P.L.
99-514, P.L.
100-203,
4P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-280,
5P.L.
101-508, P.L.
102-90, P.L.
102-227, excluding sections 103, 104 and 110 of P.L.
6102-227, P.L.
102-318, P.L.
102-486, P.L.
103-66, excluding sections 13113, 13150
7(d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66, P.L.
103-296, P.L.
103-337, P.L.
8103-465, P.L.
104-7 and P.L.
104-117. The internal revenue code applies for
9Wisconsin purposes at the same time as for federal purposes. Amendments to the
10federal internal revenue code enacted after December 31, 1995, do not apply to this
11paragraph with respect to taxable years beginning after December 31, 1995, except
12that changes to the internal revenue code made by P.L.
104-117 and changes that
13indirectly affect the provisions applicable to this subchapter made by P.L.
104-117 14apply for Wisconsin purposes at the same time as for federal purposes.
SB674,4,2417
71.01
(7r) Notwithstanding sub. (6), for purposes of computing amortization
18or depreciation, "internal revenue code" means either the federal internal revenue
19code as amended to December 31,
1994 1995, or the federal internal revenue code in
20effect for the taxable year for which the return is filed, except that property that,
21under s. 71.02 (2) (d) 12., 1985 stats., is required to be depreciated for taxable year
221986 under the internal revenue code as amended to December 31, 1980, shall
23continue to be depreciated under the internal revenue code as amended to December
2431, 1980.
SB674, s. 6
25Section
6. 71.22 (4) (c) of the statutes is repealed.
SB674,5,253
71.22
(4) (i) Except as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34
4(1g) and 71.42 (2), "internal revenue code", for taxable years that begin after
5December 31, 1993, and before January 1, 1995, means the federal internal revenue
6code as amended to December 31, 1993, excluding sections 103, 104 and 110 of P.L.
7102-227 and sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215 of P.L.
8103-66, and as amended by P.L.
103-296, P.L.
103-337 and
, P.L.
103-465 and P.L.
9104-7, excluding section 1 of P.L. 104-7, and as indirectly affected in the provisions
10applicable to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647 excluding
11sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823 (c) (2) of P.L.
99-514 12and section 1008 (g) (5) of P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
13101-239, P.L.
101-508, P.L.
102-227, excluding sections 103, 104 and 110 of P.L.
14102-227, P.L.
102-318, P.L.
102-486, P.L.
103-66, excluding sections 13113, 13150
15(d), 13171 (d), 13174, 13203 (d) and 13215 of P.L.
103-66 and, P.L.
103-296, P.L.
16103-337 and, P.L.
103-465 and P.L. 104-7, excluding section 1 of P.L. 104-7. The
17internal revenue code applies for Wisconsin purposes at the same time as for federal
18purposes. Amendments to the federal internal revenue code enacted after December
1931, 1993, do not apply to this paragraph with respect to taxable years beginning after
20December 31, 1993, and before January 1, 1995, except that changes to the internal
21revenue code made by P.L.
103-296, P.L.
103-337 and, P.L.
103-465 and P.L. 104-7,
22excluding section 1 of P.L. 104-7, and changes that indirectly affect the provisions
23applicable to this subchapter made by P.L.
103-296, P.L.
103-337 and, P.L.
103-465 24and P.L. 104-7, excluding section 1 of P.L. 104-7, apply for Wisconsin purposes at the
25same time as for federal purposes.
SB674,6,213
71.22
(4) (j) Except as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34
4(1g) and 71.42 (2), "internal revenue code", for taxable years that begin after
5December 31, 1994,
and before January 1, 1996, means the federal internal revenue
6code as amended to December 31, 1994, excluding sections 103, 104 and 110 of P.L.
7102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66,
8and as amended by P.L. 104-7 and as indirectly affected in the provisions applicable
9to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647 excluding sections 803
10(d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823 (c) (2) of P.L.
99-514 and section
111008 (g) (5) of P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239,
12P.L.
101-508, P.L.
102-227, excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
13102-318, P.L.
102-486, P.L.
103-66, excluding sections 13113, 13150 (d), 13171 (d),
1413174 and 13203 (d) of P.L.
103-66 and, P.L.
103-296, P.L.
103-337 and, P.L.
103-465 15and P.L. 104-7. The internal revenue code applies for Wisconsin purposes at the
16same time as for federal purposes. Amendments to the federal internal revenue code
17enacted after December 31, 1994, do not apply to this paragraph with respect to
18taxable years beginning after December 31, 1994
, and before January 1, 1996, except
19that changes to the internal revenue code made by P.L. 104-7 and changes that
20indirectly affect the provisions applicable to this subchapter made by P.L. 104-7
21apply for Wisconsin purposes at the same time as for federal purposes.
SB674, s. 9
22Section
9. 71.22 (4) (k) of the statutes is created to read:
SB674,7,1323
71.22
(4) (k) Except as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34
24(1g) and 71.42 (2), "internal revenue code", for taxable years that begin after
25December 31, 1995, means the federal internal revenue code as amended to
1December 31, 1995, excluding sections 103, 104 and 110 of P.L.
102-227 and sections
213113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66, and as indirectly
3affected in the provisions applicable to this subchapter by P.L.
99-514, P.L.
100-203,
4P.L.
100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and
5823 (c) (2) of P.L.
99-514 and section 1008 (g) (5) of P.L.
100-647, P.L.
101-73, P.L.
6101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227, excluding sections
7103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
103-66, excluding
8sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66, P.L.
9103-296, P.L.
103-337, P.L.
103-465 and P.L.
104-7. The internal revenue code
10applies for Wisconsin purposes at the same time as for federal purposes.
11Amendments to the federal internal revenue code enacted after December 31, 1995,
12do not apply to this paragraph with respect to taxable years beginning after
13December 31, 1995.
SB674, s. 10
14Section
10. 71.22 (4m) (a) of the statutes is repealed.
SB674,8,1217
71.22
(4m) (g) For taxable years that begin after December 31, 1993, and before
18January 1, 1995, "internal revenue code", for corporations that are subject to a tax
19on unrelated business income under s. 71.26 (1) (a), means the federal internal
20revenue code as amended to December 31, 1993, excluding sections 103, 104 and 110
21of P.L.
102-227 and sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215
22of P.L.
103-66, and as amended by P.L.
103-296, P.L.
103-337 and, P.L.
103-465 and
23P.L. 104-7, excluding section 1 of P.L. 104-7, and as indirectly affected in the
24provisions applicable to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647,
25P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227,
1excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
2103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215
3of P.L.
103-66, P.L.
103-296, P.L.
103-337 and, P.L.
103-465 and P.L. 104-7,
4excluding section 1 of P.L. 104-7. The internal revenue code applies for Wisconsin
5purposes at the same time as for federal purposes. Amendments to the internal
6revenue code enacted after December 31, 1993, do not apply to this paragraph with
7respect to taxable years beginning after December 31, 1993, and before January 1,
81995, except that changes to the internal revenue code made by P.L.
103-296, P.L.
9103-337 and, P.L.
103-465 and P.L. 104-7, excluding section 1 of P.L. 104-7, and
10changes that indirectly affect the provisions applicable to this subchapter made by
11P.L.
103-296, P.L.
103-337 and, P.L.
103-465 and P.L. 104-7, excluding section 1 of
12P.L. 104-7, apply for Wisconsin purposes at the same time as for federal purposes.
SB674,9,715
71.22
(4m) (h) For taxable years that begin after December 31, 1994,
and before
16January 1, 1996, "internal revenue code", for corporations that are subject to a tax
17on unrelated business income under s. 71.26 (1) (a), means the federal internal
18revenue code as amended to December 31, 1994, excluding sections 103, 104 and 110
19of P.L.
102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
20103-66,
and as amended by P.L. 104-7 and as indirectly affected in the provisions
21applicable to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
22101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227,
23excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
24103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
25103-66, P.L.
103-296, P.L.
103-337 and, P.L.
103-465 and P.L. 104-7. The internal
1revenue code applies for Wisconsin purposes at the same time as for federal purposes.
2Amendments to the internal revenue code enacted after December 31, 1994, do not
3apply to this paragraph with respect to taxable years beginning after December 31,
41994
, and before January 1, 1996, except that changes to the internal revenue code
5made by P.L. 104-7, and changes that indirectly affect the provisions applicable to
6this subchapter made by P.L. 104-7 apply for Wisconsin purposes at the same time
7as for federal purposes.
SB674, s. 13
8Section
13. 71.22 (4m) (i) of the statutes is created to read:
SB674,9,229
71.22
(4m) (i) For taxable years that begin after December 31, 1995, "internal
10revenue code", for corporations that are subject to a tax on unrelated business income
11under s. 71.26 (1) (a), means the federal internal revenue code as amended to
12December 31, 1995, excluding sections 103, 104 and 110 of P.L.
102-227 and sections
1313113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66, and as indirectly
14affected in the provisions applicable to this subchapter by P.L.
99-514, P.L.
100-203,
15P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508,
16P.L.
102-227, excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
17102-486, P.L.
103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and
1813203 (d) of P.L.
103-66, P.L.
103-296, P.L.
103-337, P.L.
103-465 and P.L.
104-7.
19The internal revenue code applies for Wisconsin purposes at the same time as for
20federal purposes. Amendments to the internal revenue code enacted after December
2131, 1995, do not apply to this paragraph with respect to taxable years beginning after
22December 31, 1995.
SB674, s. 14
23Section
14. 71.26 (2) (b) 3. of the statutes is repealed.
SB674,12,2
171.26
(2) (b) 9. For taxable years that begin after December 31, 1993, and before
2January 1, 1995, for a corporation, conduit or common law trust which qualifies as
3a regulated investment company, real estate mortgage investment conduit or real
4estate investment trust under the internal revenue code as amended to December
531, 1993, excluding sections 103, 104 and 110 of P.L.
102-227 and sections 13113,
613150 (d), 13171 (d), 13174, 13203 (d) and 13215 of P.L.
103-66, and as amended by
7P.L.
103-296, P.L.
103-337 and, P.L.
103-465 and P.L. 104-7 and as indirectly
8affected in the provisions applicable to this subchapter by P.L.
99-514, P.L.
100-203,
9P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508,
10P.L.
102-227, excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
11102-486, P.L.
103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, 13203
12(d) and 13215 of P.L.
103-66, P.L.
103-296, P.L.
103-337 and, P.L.
103-465 and P.L.
13104-7, excluding section 1 of P.L. 104-7, "net income" means the federal regulated
14investment company taxable income, federal real estate mortgage investment
15conduit taxable income or federal real estate investment trust taxable income of the
16corporation, conduit or trust as determined under the internal revenue code as
17amended to December 31, 1993, excluding sections 103, 104 and 110 of P.L.
102-227 18and sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215 of P.L.
103-66,
19and as amended by P.L.
103-296, P.L.
103-337 and, P.L.
103-465 and P.L. 104-7,
20excluding section 1 of P.L. 104-7, and as indirectly affected in the provisions
21applicable to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
22101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227,
23excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
24103-66, P.L.
103-296, P.L.
103-337 and, P.L.
103-465 excluding sections 13113,
2513150 (d), 13171 (d), 13174, 13203 (d) and 13215 of P.L.
103-66,
and P.L. 104-7,
1excluding section 1 of P.L. 104-7, except that property that, under s. 71.02 (1) (c) 8.
2to 11., 1985 stats., is required to be depreciated for taxable years 1983 to 1986 under
3the internal revenue code as amended to December 31, 1980, shall continue to be
4depreciated under the internal revenue code as amended to December 31, 1980, and
5except that the appropriate amount shall be added or subtracted to reflect
6differences between the depreciation or adjusted basis for federal income tax
7purposes and the depreciation or adjusted basis under this chapter of any property
8disposed of during the taxable year. The internal revenue code as amended to
9December 31, 1993, excluding sections 103, 104 and 110 of P.L.
102-227 and sections
1013113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215 of P.L.
103-66, and as
11amended by P.L.
103-296, P.L.
103-337 and, P.L.
103-465 and P.L. 104-7, excluding
12section 1 of P.L. 104-7, and as indirectly affected in the provisions applicable to this
13subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140,
14P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227, excluding sections 103, 104
15and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
103-66, excluding sections
1613113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215 of P.L.
103-66, P.L.
103-296,
17P.L.
103-337 and, P.L.
103-465 and P.L. 104-7, excluding section 1 of P.L. 104-7, 18applies for Wisconsin purposes at the same time as for federal purposes.
19Amendments to the internal revenue code enacted after December 31, 1993, do not
20apply to this subdivision with respect to taxable years that begin after December 31,
211993, and before January 1, 1995, except that changes to the internal revenue code
22made by P.L.
103-296, P.L.
103-337 and, P.L.
103-465 and P.L. 104-7, excluding
23section 1 of P.L. 104-7, and changes that indirectly affect the provisions applicable
24to this subchapter made by P.L.
103-296, P.L.
103-337 and
, P.L.
103-465 and P.L.
1104-7, excluding section 1 of P.L. 104-7, apply for Wisconsin purposes at the same
2time as for federal purposes.
SB674,13,235
71.26
(2) (b) 10. For taxable years that begin after December 31, 1994,
and
6before January 1, 1996, for a corporation, conduit or common law trust which
7qualifies as a regulated investment company, real estate mortgage investment
8conduit or real estate investment trust under the internal revenue code as amended
9to December 31, 1994, excluding sections 103, 104 and 110 of P.L.
102-227 and
10sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66,
and as
11amended by P.L. 104-7 and as indirectly affected in the provisions applicable to this
12subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140,
13P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227, excluding sections 103, 104
14and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486 and
, P.L.
103-66, excluding
15sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66, P.L.
16103-296, P.L.
103-337 and, P.L.
103-465 and P.L. 104-7 "net income" means the
17federal regulated investment company taxable income, federal real estate mortgage
18investment conduit taxable income or federal real estate investment trust taxable
19income of the corporation, conduit or trust as determined under the internal revenue
20code as amended to December 31, 1994, excluding sections 103, 104 and 110 of P.L.
21102-227 and sections 13113, 13150 (d), 13171 (d), 13174
, and 13203 (d) of P.L.
22103-66,
and as amended by P.L. 104-7 and as indirectly affected in the provisions
23applicable to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
24101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227,
25excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
1103-66, P.L.
103-296, P.L.
103-337 and, P.L.
103-465 excluding sections 13113,
213150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66,
and P.L. 104-7 except that
3property that, under s. 71.02 (1) (c) 8. to 11., 1985 stats., is required to be depreciated
4for taxable years 1983 to 1986 under the internal revenue code as amended to
5December 31, 1980, shall continue to be depreciated under the internal revenue code
6as amended to December 31, 1980, and except that the appropriate amount shall be
7added or subtracted to reflect differences between the depreciation or adjusted basis
8for federal income tax purposes and the depreciation or adjusted basis under this
9chapter of any property disposed of during the taxable year. The internal revenue
10code as amended to December 31, 1994, excluding sections 103, 104 and 110 of P.L.
11102-227 and sections 13113, 13150 (d), 13171 (d), 13174
, and 13203 (d) of P.L.
12103-66,
and as amended by P.L. 104-7 and as indirectly affected in the provisions
13applicable to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
14101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227,
15excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
16103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174
, and 13203 (d) of P.L.
17103-66, P.L.
103-296, P.L.
103-337 and, P.L.
103-465 and P.L. 104-7 applies for
18Wisconsin purposes at the same time as for federal purposes. Amendments to the
19internal revenue code enacted after December 31, 1994, do not apply to this
20subdivision with respect to taxable years that begin after December 31, 1994
, and
21before January 1, 1996, except that changes made by P.L. 104-7 and changes that
22indirectly affect the provisions applicable to this subchapter made by P.L. 104-7
23apply for Wisconsin purposes at the same time as for federal purposes.
SB674, s. 17
24Section
17. 71.26 (2) (b) 11. of the statutes is created to read:
SB674,15,14
171.26
(2) (b) 11. For taxable years that begin after December 31, 1995, for a
2corporation, conduit or common law trust which qualifies as a regulated investment
3company, real estate mortgage investment conduit or real estate investment trust
4under the internal revenue code as amended to December 31, 1995, excluding
5sections 103, 104 and 110 of P.L.
102-227 and sections 13113, 13150 (d), 13171 (d),
613174 and 13203 (d) of P.L.
103-66, and as indirectly affected in the provisions
7applicable to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
8101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227,
9excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
10103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
11103-66, P.L.
103-296, P.L.
103-337, P.L.
103-465 and P.L.
104-7 "net income" means
12the federal regulated investment company taxable income, federal real estate
13mortgage investment conduit taxable income or federal real estate investment trust
14taxable income of the corporation, conduit or trust as determined under the internal
15revenue code as amended to December 31, 1995, excluding sections 103, 104 and 110
16of P.L.
102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
17103-66, and as indirectly affected in the provisions applicable to this subchapter by
18P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179,
19P.L.
101-239, P.L.
101-508, P.L.
102-227, excluding sections 103, 104 and 110 of P.L.
20102-227, P.L.
102-318, P.L.
102-486, P.L.
103-66, P.L.
103-296, P.L.
103-337, P.L.
21103-465 and P.L.
104-7 excluding sections 13113, 13150 (d), 13171 (d), 13174 and
2213203 (d) of P.L.
103-66, except that property that, under s. 71.02 (1) (c) 8. to 11., 1985
23stats., is required to be depreciated for taxable years 1983 to 1986 under the internal
24revenue code as amended to December 31, 1980, shall continue to be depreciated
25under the internal revenue code as amended to December 31, 1980, and except that
1the appropriate amount shall be added or subtracted to reflect differences between
2the depreciation or adjusted basis for federal income tax purposes and the
3depreciation or adjusted basis under this chapter of any property disposed of during
4the taxable year. The internal revenue code as amended to December 31, 1995,
5excluding sections 103, 104 and 110 of P.L.
102-227 and sections 13113, 13150 (d),
613171 (d), 13174 and 13203 (d) of P.L.
103-66, and as indirectly affected in the
7provisions applicable to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647,
8P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227,
9excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
10103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
11103-66, P.L.
103-296, P.L.
103-337, P.L.
103-465 and P.L.
104-7 applies for
12Wisconsin purposes at the same time as for federal purposes. Amendments to the
13internal revenue code enacted after December 31, 1995, do not apply to this
14subdivision with respect to taxable years that begin after December 31, 1995.
SB674,16,217
71.26
(3) (y) A corporation may compute amortization and depreciation under
18either the federal internal revenue code as amended to December 31,
1994 1995, or
19the federal internal revenue code in effect for the taxable year for which the return
20is filed, except that property first placed in service by the taxpayer on or after
21January 1, 1983, but before January 1, 1987, that, under s. 71.04 (15) (b) and (br),
221985 stats., is required to be depreciated under the internal revenue code as
23amended to December 31, 1980, and property first placed in service in taxable year
241981 or thereafter but before January 1, 1987, that, under s. 71.04 (15) (bm), 1985
25stats., is required to be depreciated under the internal revenue code as amended to
1December 31, 1980, shall continue to be depreciated under the internal revenue code
2as amended to December 31, 1980.
SB674, s. 19
3Section
19. 71.34 (1g) (c) of the statutes is repealed.
SB674,17,46
71.34
(1g) (i) "Internal revenue code" for tax-option corporations, for taxable
7years that begin after December 31, 1993, and before January 1, 1995, means the
8federal internal revenue code as amended to December 31, 1993, excluding sections
9103, 104 and 110 of P.L.
102-227 and sections 13113, 13150 (d), 13171 (d), 13174,
1013203 (d) and 13215 of P.L.
103-66, and as amended by P.L.
103-296, P.L.
103-337 11and, P.L.
103-465 and P.L. 104-7 and as indirectly affected in the provisions
12applicable to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647 excluding
13sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823 (c) (2) of P.L.
99-514 14and section 1008 (g) (5) of P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
15101-239, P.L.
101-508, P.L.
102-227, excluding sections 103, 104 and 110 of P.L.
16102-227, P.L.
102-318, P.L.
102-486, P.L.
103-66, excluding sections 13113, 13150
17(d), 13171 (d), 13174, 13203 (d) and 13215 of P.L.
103-66, P.L.
103-296, P.L.
103-337 18and, P.L.
103-465 and P.L. 104-7 except that section 1366 (f) (relating to
19pass-through of items to shareholders) is modified by substituting the tax under s.
2071.35 for the taxes under sections 1374 and 1375. The internal revenue code applies
21for Wisconsin purposes at the same time as for federal purposes. Amendments to the
22federal internal revenue code enacted after December 31, 1993, do not apply to this
23paragraph with respect to taxable years beginning after December 31, 1993, and
24before January 1, 1995, except that changes to the internal revenue code made by
25P.L.
103-296, P.L.
103-337 and, P.L.
103-465 and P.L. 104-7, excluding section 1 of
1P.L. 104-7, and changes that indirectly affect the provisions applicable to this
2subchapter made by P.L.
103-296, P.L.
103-337 and, P.L.
103-465 and P.L. 104-7,
3excluding section 1 of P.L. 104-7, apply for Wisconsin purposes at the same time as
4for federal purposes.
SB674,18,27
71.34
(1g) (j) "Internal revenue code" for tax-option corporations, for taxable
8years that begin after December 31, 1994,
and before January 1, 1996, means the
9federal internal revenue code as amended to December 31, 1994, excluding sections
10103, 104 and 110 of P.L.
102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and
1113203 (d) of P.L.
103-66,
and as amended by P.L. 104-7 and as indirectly affected in
12the provisions applicable to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
13100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823
14(c) (2) of P.L.
99-514 and section 1008 (g) (5) of P.L.
100-647, P.L.
101-73, P.L.
15101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227, excluding sections
16103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
103-66, excluding
17sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66, P.L.
18103-296, P.L.
103-337 and, P.L.
103-465
, and P.L. 104-7 except that section 1366 (f)
19(relating to pass-through of items to shareholders) is modified by substituting the
20tax under s. 71.35 for the taxes under sections 1374 and 1375. The internal revenue
21code applies for Wisconsin purposes at the same time as for federal purposes.
22Amendments to the federal internal revenue code enacted after December 31, 1994,
23do not apply to this paragraph with respect to taxable years beginning after
24December 31, 1994
, and before January 1, 1996, except changes to the internal
25revenue code made by P.L. 104-7 and changes that indirectly affect the provisions
1applicable to this subchapter made by P.L. 104-7 apply for Wisconsin purposes at the
2same time as for federal purposes.
SB674, s. 22
3Section
22. 71.34 (1g) (k) of the statutes is created to read:
SB674,18,204
71.34
(1g) (k) "Internal revenue code" for tax-option corporations, for taxable
5years that begin after December 31, 1995, means the federal internal revenue code
6as amended to December 31, 1995, excluding sections 103, 104 and 110 of P.L.
7102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66,
8and as indirectly affected in the provisions applicable to this subchapter by P.L.
999-514, P.L.
100-203, P.L.
100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812
10(c) (2), 821 (b) (2) and 823 (c) (2) of P.L.
99-514 and section 1008 (g) (5) of P.L.
100-647,
11P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227,
12excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
13103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
14103-66, P.L.
103-296, P.L.
103-337, P.L.
103-465 and P.L.
104-7, except that section
151366 (f) (relating to pass-through of items to shareholders) is modified by
16substituting the tax under s. 71.35 for the taxes under sections 1374 and 1375. The
17internal revenue code applies for Wisconsin purposes at the same time as for federal
18purposes. Amendments to the federal internal revenue code enacted after December
1931, 1995, do not apply to this paragraph with respect to taxable years beginning after
20December 31, 1995.
SB674,19,2323
71.365
(1m) Tax-option corporations; depreciation. A tax-option corporation
24may compute amortization and depreciation under either the federal internal
25revenue code as amended to December 31,
1994 1995, or the federal internal revenue
1code in effect for the taxable year for which the return is filed, except that property
2first placed in service by the taxpayer on or after January 1, 1983, but before January
31, 1987, that, under s. 71.04 (15) (b) and (br), 1985 stats., is required to be depreciated
4under the internal revenue code as amended to December 31, 1980, and property first
5placed in service in taxable year 1981 or thereafter but before January 1, 1987, that,
6under s. 71.04 (15) (bm), 1985 stats., is required to be depreciated under the internal
7revenue code as amended to December 31, 1980, shall continue to be depreciated
8under the internal revenue code as amended to December 31, 1980. Any difference
9between the adjusted basis for federal income tax purposes and the adjusted basis
10under this chapter shall be taken into account in determining net income or loss in
11the year or years for which the gain or loss is reportable under this chapter. If that
12property was placed in service by the taxpayer during taxable year 1986 and
13thereafter but before the property is used in the production of income subject to
14taxation under this chapter, the property's adjusted basis and the depreciation or
15other deduction schedule are not required to be changed from the amount allowable
16on the owner's federal income tax returns for any year because the property is used
17in the production of income subject to taxation under this chapter. If that property
18was acquired in a transaction in taxable year 1986 or thereafter in which the
19adjusted basis of the property in the hands of the transferee is the same as the
20adjusted basis of the property in the hands of the transferor, the Wisconsin adjusted
21basis of that property on the date of transfer is the adjusted basis allowable under
22the internal revenue code as defined for Wisconsin purposes for the property in the
23hands of the transferor.
SB674, s. 24
24Section
24. 71.42 (2) (b) of the statutes is repealed.
SB674,20,233
71.42
(2) (h) For taxable years that begin after December 31, 1993, and before
4January 1, 1995, "internal revenue code" means the federal internal revenue code as
5amended to December 31, 1993 excluding sections 103, 104 and 110 of P.L.
102-227 6and sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215 of P.L.
103-66,
7and as amended by P.L.
103-296, P.L.
103-337 and, P.L.
103-465 and P.L. 104-7,
8excluding section 1 of P.L. 104-7, and as indirectly affected by P.L.
99-514, P.L.
9100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
10101-508, P.L.
102-227, excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
11102-318, P.L.
102-486 and P.L.
103-66, excluding sections 13113, 13150 (d), 13171
12(d), 13174, 13203 (d) and 13215 of P.L.
103-66, P.L.
103-296, P.L.
103-337 and, P.L.
13103-465 and P.L. 104-7, excluding section 1 of P.L. 104-7, except that "internal
14revenue code" does not include section 847 of the federal internal revenue code. The
15internal revenue code applies for Wisconsin purposes at the same time as for federal
16purposes. Amendments to the federal internal revenue code enacted after December
1731, 1993, do not apply to this paragraph with respect to taxable years beginning after
18December 31, 1993, and before January 1, 1995, except that changes to the internal
19revenue code made by P.L.
103-296, P.L.
103-337 and, P.L.
103-465 and P.L. 104-7,
20excluding section 1 of P.L. 104-7, and changes that indirectly affect the provisions
21applicable to this subchapter made by P.L.
103-296, P.L.
103-337 and, P.L.
103-465 22and P.L. 104-7, excluding section 1 of P.L. 104-7, apply for Wisconsin purposes at the
23same time as for federal purposes.
SB674,21,17
171.42
(2) (i) For taxable years that begin after December 31, 1994,
and before
2January 1, 1996, "internal revenue code" means the federal internal revenue code as
3amended to December 31, 1994, excluding sections 103, 104 and 110 of P.L.
102-227 4and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66,
and as
5amended by P.L. 104-7 and as indirectly affected by P.L.
99-514, P.L.
100-203, P.L.
6100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
7102-227, excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
8102-486, P.L.
103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and
913203 (d) of P.L.
103-66, P.L.
103-296, P.L.
103-337 and
, P.L.
103-465 and P.L.
10104-7, except that "internal revenue code" does not include section 847 of the federal
11internal revenue code. The internal revenue code applies for Wisconsin purposes at
12the same time as for federal purposes. Amendments to the federal internal revenue
13code enacted after December 31, 1994, do not apply to this paragraph with respect
14to taxable years beginning after December 31, 1994
, and before January 1, 1996, 15except that changes to the internal revenue code made by P.L. 104-7 and changes
16that indirectly affect the provisions applicable to this subchapter made by P.L. 104-7
17apply for Wisconsin purposes at the same time as for federal purposes.
SB674, s. 27
18Section
27. 71.42 (2) (j) of the statutes is created to read:
SB674,22,619
71.42
(2) (j) For taxable years that begin after December 31, 1995, "internal
20revenue code" means the federal internal revenue code as amended to December 31,
211995, excluding sections 103, 104 and 110 of P.L.
102-227 and sections 13113, 13150
22(d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66, and as indirectly affected by P.L.
2399-514, P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
24101-239, P.L.
101-508, P.L.
102-227, excluding sections 103, 104 and 110 of P.L.
25102-227, P.L.
102-318, P.L.
102-486, P.L.
103-66, excluding sections 13113, 13150
1(d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66, P.L.
103-296, P.L.
103-337, P.L.
2103-465 and P.L.
104-7 except that "internal revenue code" does not include section
3847 of the federal internal revenue code. The internal revenue code applies for
4Wisconsin purposes at the same time as for federal purposes. Amendments to the
5federal internal revenue code enacted after December 31, 1995, do not apply to this
6paragraph with respect to taxable years beginning after December 31, 1995.
SB674,22,219
71.45
(2) (a) 13. By adding or subtracting, as appropriate, the difference
10between the depreciation deduction under the federal internal revenue code as
11amended to December 31,
1994 1995, and the depreciation deduction under the
12federal internal revenue code in effect for the taxable year for which the return is
13filed, so as to reflect the fact that the insurer may choose between these 2 deductions,
14except that property first placed in service by the taxpayer on or after January 1,
151983, but before January 1, 1987, that, under s. 71.04 (15) (b) and (br), 1985 stats.,
16is required to be depreciated under the internal revenue code as amended to
17December 31, 1980, and property first placed in service in taxable year 1981 or
18thereafter but before January 1, 1987, that, under s. 71.04 (15) (bm), 1985 stats., is
19required to be depreciated under the internal revenue code as amended to December
2031, 1980, shall continue to be depreciated under the internal revenue code as
21amended to December 31, 1980.
SB674,22,2423
(1) The treatment of sections 71.01 (7r), 71.26 (3) (y), 71.365 (1m) and 71.45 (2)
24(a) 13. of the statutes first applies to taxable years beginning on January 1, 1996.