AB768: Bill Text

AB768, s. 271 Section 271. 51.45 (8) (a) of the statutes is amended to read:

AB768,138,3 51.45 (8) (a) The department shall establish minimum standards for approved treatment facilities that must be met for a treatment facility to be approved as a public or private treatment facility, except as provided in s. 51.032, and fix the fees to be charged by the department for the required inspections. The standards may concern only the health standards to be met and standards of treatment to be afforded patients and shall distinguish between facilities rendering different modes of treatment. In setting standards, the department shall consider the residents' needs and abilities, the services to be provided by the facility, and the relationship between the physical structure and the objectives of the program. Nothing in this subsection shall prevent county departments from establishing reasonable higher standards.

AB768, s. 272 Section 272. 51.45 (8) (e) of the statutes is amended to read:

AB768,138,7 51.45 (8) (e) The department, after notice and hearing, may under this subsection suspend, revoke, limit, or restrict an approval, or refuse to grant an approval, for failure to meet its standards.

AB768, s. 273 Section 273. 51.45 (8) (f) of the statutes is amended to read:

AB768,138,11 51.45 (8) (f) The circuit court may restrain any violation of this section, review any denial, restriction, or revocation of approval under this subsection, and grant other relief required to enforce its provisions.

AB768, s. 274 Section 274. 55.06 (6) of the statutes is amended to read:

AB768,138,24 55.06 (6) Section 880.33 (2) applies to all hearings under this chapter except for transfers of placement under sub. (9) (b), (c) and (e). A person to be protected shall have a guardian ad litem who is an attorney appointed in accordance with s. 757.48 (1) present at all hearings under this chapter if the person does not have full legal counsel. The court may, however, excuse a personal appearance by a guardian ad litem based on information contained in a written report by the guardian ad litem to the court. If the person is an adult who is indigent, the county of legal settlement shall be liable for guardian ad litem fees. If the person is a child, the person's parents or the county of legal settlement shall be liable for guardian ad litem fees as provided in s. 48.235 (8). The subject individual, attorney or guardian ad litem shall have the right to present and cross-examine witnesses, including any person making an evaluation or review under sub. (8) (c).

AB768, s. 275 Section 275. 55.06 (9) (b) of the statutes is amended to read:

AB768,139,19 55.06 (9) (b) Transfer may be made between placement units or from a placement unit to a medical facility other than those specified in pars. (c) to (e) by a guardian or placement facility without approval by a court. When transfer is made by a placement facility, 24 hours' prior written notice of the transfer shall be provided to the guardian, when feasible. If it is not feasible to notify the guardian in advance, written notice shall be provided immediately upon transfer, and notice shall also be provided to the court and to the board designated under s. 55.02 or an agency designated by it within a reasonable time, not to exceed 48 hours from the time of the transfer. Upon petition to a court by a guardian, ward, or attorney, or other interested person specifying objections to a transfer, the court shall order a hearing, within 96 hours after filing of the petition, to determine whether there is probable cause to believe that the transfer is consistent with the requirements specified in par. (a) and is necessary for the best interests of the ward. The court shall notify the ward, guardian and petitioner of the time and place of the hearing, and a guardian ad litem shall be appointed to represent the ward. If the person is an adult who is indigent, the county of legal settlement shall be liable for guardian ad litem fees. If the person is a child, the person's parents or the county of legal settlement shall be liable for guardian ad litem fees as provided in s. 48.235 (8). The petitioner, ward and guardian shall have the right to attend, and to present and cross-examine witnesses.

AB768, s. 276 Section 276. 59.52 (4) (a) 18. of the statutes is amended to read:

AB768,140,5 59.52 (4) (a) 18. Case records and other record material of all public assistance that are kept as required under ch. 49, if no payments have been made for at least 3 years and if a face sheet or similar record of each case and a financial record of all payments for each aid account are preserved in accordance with rules adopted by the department of health and family services or by the department of workforce development. If the department of health and family services or the department of workforce development has preserved such case records and other record material on computer disc or tape or similar device, a county may destroy the original records and record material under rules adopted by the department that has preserved those case records or other record material.

AB768, s. 277 Section 277. 66.432 (1) of the statutes is amended to read:

AB768,140,18 66.432 (1) Declaration of policy. The right of all persons to have equal opportunities for housing regardless of their sex, race, color, physical condition, disability as defined in s. 106.04 (1m) (g), sexual orientation as defined in s. 111.32 (13m), religion, national origin, marital status, family status as defined in s. 106.04 (1m) (k), lawful source of income, age or ancestry is a matter both of statewide concern under s. ss. 101.132 and 106.04 and also of local interest under this section and s. 66.433. The enactment of s. ss. 101.132 and 106.04 by the legislature shall not preempt the subject matter of equal opportunities in housing from consideration by political subdivisions, and shall not exempt political subdivisions from their duty, nor deprive them of their right, to enact ordinances which prohibit discrimination in any type of housing solely on the basis of an individual being a member of a protected class.

AB768, s. 278 Section 278. 66.432 (2) of the statutes is amended to read:

AB768,141,8 66.432 (2) Antidiscrimination housing ordinances. Political subdivisions may enact ordinances prohibiting discrimination in housing within their respective boundaries solely on the basis of an individual being a member of a protected class. Such an ordinance may be similar to s. ss. 101.132 and 106.04 (1) to (8) or may be more inclusive in its terms or in respect to the different types of housing subject to its provisions, but any such ordinance establishing a forfeiture as a penalty for violation shall not be for an amount that is less than the statutory forfeitures under s. 106.04. Such an ordinance may permit a complainant, aggrieved person or respondent to elect to remove the action to circuit court after a finding has been made that there is reasonable cause to believe that a violation of the ordinance has occurred. Such an ordinance may also authorize the political subdivision, at any time after a complaint has been filed alleging an ordinance violation, to file a complaint in circuit court seeking a temporary injunction or restraining order pending final disposition of the complaint.

AB768, s. 279 Section 279. 70.11 (39) of the statutes is created to read:

AB768,141,17 70.11 (39) Computers. Mainframe computers, minicomputers, personal computers, networked personal computers, servers, terminals, monitors, disk drives, electronic peripheral equipment, tape drives, printers, basic operational programs, systems software, prewritten software and custom software. The exemption under this subsection does not apply to fax machines, copiers, equipment with embedded computerized components or telephone systems, including equipment that is used to provide telecommunications services, as defined in s. 76.80 (3).

AB768, s. 280 Section 280. 71.01 (6) (m) of the statutes, as created by 1997 Wisconsin Act 37, is amended to read:

AB768,142,17 71.01 (6) (m) For taxable years that begin after December 31, 1997, for natural persons and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, "Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 1996 1997, excluding sections 103, 104 and 110 of P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66 and sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188 , and as amended by the provisions of P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and as indirectly affected by P.L. 99-514, P.L. 100-203, P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-280, P.L. 101-508, P.L. 102-90, P.L. 102-227, excluding sections 103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L. 104-7, P.L. 104-117, P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, P.L. 104-191, P.L. 104-193 and the provisions of, P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 1996 1997, do not apply to this paragraph with respect to taxable years beginning after December 31, 1997, except that changes to the Internal Revenue Code made by P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and changes that indirectly affect the provisions applicable to this subchapter made by P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, apply for Wisconsin purposes at the same time as for federal purposes.

AB768, s. 281 Section 281. 71.01 (7r) of the statutes, as affected by 1997 Wisconsin Act 37, is amended to read:

AB768,143,3 71.01 (7r) Notwithstanding sub. (6), for purposes of computing amortization or depreciation, "internal revenue code" means either the federal internal revenue code as amended to December 31, 1996, for property placed in service before August 6, 1997, or as amended to August 5, 1997, for property placed in service on August 6, 1997, or thereafter 1997,or the federal internal revenue code in effect for the taxable year for which the return is filed, except that property that, under s. 71.02 (2) (d) 12., 1985 stats., is required to be depreciated for taxable year 1986 under the internal revenue code as amended to December 31, 1980, shall continue to be depreciated under the internal revenue code as amended to December 31, 1980.

AB768, s. 282 Section 282. 71.05 (6) (a) 12. of the statutes, as affected by 1997 Wisconsin Act 39, is amended to read:

AB768,144,11 71.05 (6) (a) 12. All alimony deducted for federal income tax purposes and paid while the individual paying the alimony was a nonresident of this state; all interest on qualified education loans that is deducted for federal income tax purposes and that is paid while the individual who pays the interest was a nonresident of this state all penalties for early withdrawals from time savings accounts and deposits deducted for federal income tax purposes and paid while the individual charged with the penalty was a nonresident of this state; all repayments of supplemental unemployment benefit plan payments deducted for federal income tax purposes and made while the individual making the repayment was a nonresident of this state; all reforestation expenses related to property not in this state, deducted for federal income tax purposes and paid while the individual paying the expense was not a resident of this state; all contributions to individual retirement accounts, simplified employe pension plans and self-employment retirement plans and all deductible employe contributions, deducted for federal income tax purposes and in excess of that amount multiplied by a fraction the numerator of which is the individual's wages and net earnings from a trade or business taxable by this state and the denominator of which is the individual's total wages and net earnings from a trade or business; the contributions to a Keogh plan deducted for federal income tax purposes and in excess of that amount multiplied by a fraction the numerator of which is the individual's net earnings from a trade or business, taxable by this state, and the denominator of which is the individual's total net earnings from a trade or business; the amount of health insurance costs of self-employed individuals deducted under section 162 (L) of the internal revenue code for federal income tax purposes and in excess of that amount multiplied by a fraction the numerator of which is the individual's net earnings from a trade or business, taxable by this state, and the denominator of which is the individual's total net earnings from a trade or business; and the amount of self-employment taxes deducted under section 164 (f) of the internal revenue code for federal income tax purposes and in excess of that amount multiplied by a fraction the numerator of which is the individual's net earnings from a trade or business, taxable by this state, and the denominator of which is the individual's total net earnings from a trade or a business.

AB768, s. 283 Section 283. 71.05 (6) (b) 27. of the statutes is created to read:

AB768,144,16 71.05 (6) (b) 27. For each child who is claimed as a dependent under section 151 (c) of the Internal Revenue Code, by the individual claiming the modification under this subdivision, and who is in kindergarten to grade 12, an amount that is paid by the claimant for educational expenses and that is calculated as follows:

AB768,144,22 a. An amount equal to not more than $1,500, for each of the claimant's dependents, paid during each taxable year by the claimant for educational expenses, as defined in s. 71.07 (8m) (a) 4. and as limited in s. 71.07 (8m) (c) 9., except that not more than $500 each year, per claimant, may be claimed for computers, as defined in s. 71.07 (8m) (a) 2., and not including any amount for which a credit is claimed under s. 71.07 (8m).

AB768,145,3 b. From the amount calculated under subd. 27. a., if the claimant is single or married and filing as head of household and his or her federal adjusted gross income is more than $50,000 but not more than $60,000, subtract the product of the amount calculated under subd. 27. a. and the value of a fraction, the denominator of which is $10,000 and the numerator of which is the difference between the claimant's federal adjusted gross income and $50,000.

AB768,145,9 c. From the amount calculated under subd. 27. a., if the claimant is married and filing jointly and the claimant's and his or her spouse's federal adjusted gross income is more than $80,000 but not more than $100,000, subtract the product of the amount calculated under subd. 27. a. and the value of a fraction, the denominator of which is $20,000 and the numerator of which is the difference between the claimant's and his or her spouse's federal adjusted gross income and $80,000.

AB768,145,15 d. From the amount calculated under subd. 27. a., if the claimant is married and filing separately and the claimant's federal adjusted gross income is more than $40,000 but not more than $50,000, subtract the product of the amount calculated under subd. 27. a. and the value of a fraction, the denominator of which is $10,000 and the numerator of which is the difference between the claimant's federal adjusted gross income and $40,000.

AB768,146,2 e. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 27. b., c. or d. by a fraction the numerator of which is the individual's wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual's total wages, salary, tips, unearned income and net earnings from a trade or business. In this subd. 27. e., for married persons filing separately "wages, salary, tips, unearned income and net earnings from a trade or business" means the separate wages, salary, tips, unearned income and net earnings from a trade or business of each spouse, and for married persons filing jointly "wages, salary, tips, unearned income and net earnings from a trade or business" means the total wages, salary, tips, unearned income and net earnings from a trade or business of both spouses.

AB768,146,5 f. Reduce the amount calculated under subd. 27. e. to the individual's aggregate wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state.

AB768,146,11 g. No modification may be claimed under this subdivision by a claimant who is single or married and filing as head of household if the claimant's federal adjusted gross income is more than $60,000, by a claimant who is married and filing jointly if the claimant's and his or her spouse's federal adjusted gross income is more than $100,000 or by a claimant who is married and filing separately if the claimant's federal adjusted gross income is more than $50,000.

AB768, s. 284 Section 284. 71.05 (6) (b) 28. of the statutes is created to read:

AB768,146,19 71.05 (6) (b) 28. An amount paid by a claimant for tuition expenses for a student who is the claimant or who is the claimant's child and the claimant's dependent who is claimed under section 151 (c) of the Internal Revenue Code, to attend any university, college, technical college or a school approved under s. 39.51, that is located in Wisconsin or to attend a public vocational school or public institution of higher education in Minnesota under the Minnesota-Wisconsin reciprocity agreement under s. 39.47, calculated as follows:

AB768,146,21 a. An amount equal to not more than $3,000 per student for each year to which the claim relates.

AB768,147,2 b. From the amount calculated under subd. 28. a., if the claimant is single or married and filing as head of household and his or her federal adjusted gross income is more than $50,000 but not more than $60,000, subtract the product of the amount calculated under subd. 28. a. and the value of a fraction, the denominator of which is $10,000 and the numerator of which is the difference between the claimant's federal adjusted gross income and $50,000.

AB768,147,8 c. From the amount calculated under subd. 28. a., if the claimant is married and filing jointly and the claimant's and his or her spouse's federal adjusted gross income is more than $80,000 but not more than $100,000, subtract the product of the amount calculated under subd. 28. a. and the value of a fraction, the denominator of which is $20,000 and the numerator of which is the difference between the claimant's and his or her spouse's federal adjusted gross income and $80,000.

AB768,147,14 d. From the amount calculated under subd. 28. a., if the claimant is married and filing separately and the claimant's federal adjusted gross income is more than $40,000 but not more than $50,000, subtract the product of the amount calculated under subd. 28. a. and the value of a fraction, the denominator of which is $10,000 and the numerator of which is the difference between the claimant's federal adjusted gross income and $40,000.

AB768,148,2 e. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 28. b., c. or d. by a fraction the numerator of which is the individual's wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual's total wages, salary, tips, unearned income and net earnings from a trade or business. In this subd. 28. e., for married persons filing separately "wages, salary, tips, unearned income and net earnings from a trade or business" means the separate wages, salary, tips, unearned income and net earnings from a trade or business of each spouse, and for married persons filing jointly "wages, salary, tips, unearned income and net earnings from a trade or business" means the total wages, salary, tips, unearned income and net earnings from a trade or business of both spouses.

AB768,148,5 f. Reduce the amount calculated under subd. 28. e. to the individual's aggregate wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state.

AB768,148,11 g. No modification may be claimed under this subdivision by a claimant who is single or married and filing as head of household if the claimant's federal adjusted gross income is more than $60,000, by a claimant who is married and filing jointly if the claimant's and his or her spouse's federal adjusted gross income is more than $100,000 or by a claimant who is married and filing separately if the claimant's federal adjusted gross income is more than $50,000.

AB768, s. 285 Section 285. 71.07 (8m) of the statutes is created to read:

AB768,148,13 71.07 (8m) Educational expenses credit. (a) Definitions. In this subsection:

AB768,148,15 1. "Claimant" means an individual who claims a pupil as a dependent under section 151 (c) of the Internal Revenue Code, on his or her tax return.

AB768,148,18 2. "Computers" means computer hardware, educational software and related educational materials for use in the claimant's home by a pupil and not used in a trade or business.

AB768,148,19 3. "Department" means the department of revenue.

AB768,149,5 4. "Educational expenses" means amounts paid for tutoring for a pupil; for tuition costs at a technical college or institution of higher education, the credit for which satisfies high school graduation requirements; for a pupil's fees at summer courses; for computers, rental fees for musical instruments, school uniforms required by an eligible institution, instructional materials and school supplies related to the pupil's curricular activities and attendance at an eligible institution, but not including supplies and instructional materials that are used in the teaching of religious tenets, doctrines or worship; for fees paid on behalf of a pupil to an eligible institution, but not including fees for food; and for transportation costs paid to others related to the pupil's attendance at an eligible institution. "Educational expenses" does not include costs for out-of-state class trips or student exchange programs.

AB768,149,12 5. "Eligible institution" means a public school, as specified in s. 115.01 (1); a private school, as defined in s. 115.001 (3r), that is accredited by the North Central Association of Colleges and Schools, the Independent Schools Association of the Central States or the Wisconsin Nonpublic School Accrediting Association and that fulfills the requirements under subch. II of ch. 111 and 42 USC 2000d; or a home-based private educational program, as defined in s. 115.001 (3g), that meets all of the criteria under s. 118.165 (1).

AB768,149,13 6. "Income" means federal adjusted gross income.

AB768,149,15 7. "Licensed teacher" means a person who holds a license or permit to teach issued by the department of public instruction.

AB768,149,18 8. "Pupil" means an individual who is enrolled in kindergarten or grades 1 to 12 at an eligible institution and who is a dependent of the claimant under section 151 (c) of the Internal Revenue Code.

AB768,149,22 9. "Summer courses" means courses conducted outside of the school term, as defined in s. 115.001 (12), that are provided by a licensed teacher, in subjects that are part of the regular school curriculum or are in the fine arts, dramatic arts or foreign languages or are academic in nature.

AB768,150,3 10. "Tutoring" means supplemental instruction, special needs classes or after-school enrichment, conducted outside of the regular school day and provided by a licensed teacher, in subjects that are part of the regular school curriculum, but not including supplemental instruction, special needs classes or after-school enrichment in subjects involving the teaching of religious tenets, doctrines or worship.

AB768,150,11 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02 an amount equal to any amounts paid for educational expenses in the year to which the claim relates. If the allowable amount of the claim exceeds the income taxes otherwise due on the claimant's income, the amount of the claim not used as an offset against those taxes shall be certified by the department to the department of administration for payment to the claimant by check, share draft or other draft from the appropriation under s. 20.835 (2) (e).

AB768,150,14 (c) Limitations. 1. Except as provided in subd. 3., the maximum credit that may be claimed under this subsection by a claimant, per pupil, is $1,000 in each year to which the claim relates.

AB768,150,17 2. Except as provided in subd. 3., the maximum credit that may be claimed under this subsection by a claimant for all pupils is $2,000 in each year to which the claim relates.

AB768,150,20 3. If a married couple files separately, except for a spouse who files as head of household, each spouse may claim up to 50% of the amounts specified in subds. 1. and 2.

AB768,151,3 4. If a part-year resident or a nonresident of this state files a claim under this subsection, the maximum credit amounts in subds. 1. and 2. shall be multiplied by a fraction, the numerator of which is the individual's and his or her spouse's Wisconsin adjusted gross income and the denominator of which is the individual's and his or her spouse's federal adjusted gross income. In this subd. 4., for married persons filing separately "adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly "adjusted gross income means the total adjusted gross income of both spouses.

AB768,151,5 5. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

AB768,151,8 6. No credit may be allowed under this subsection for a taxable year covering a period of less than 12 months, except for a taxable year closed by reason of the death of the taxpayer.

AB768,151,11 7. Of the amount that is paid for computers, the maximum annual amount that may be used in calculating educational expenses in the year to which the claim relates is $500 per claimant.

AB768,151,13 8. No credit may be claimed under this subsection if the claimant's income exceeds one of the following:

AB768,151,17 a. If the claimant is married and files jointly, $30,000 in the year to which the claim relates if he or she has one pupil. The income specified in this subd. 8. a. shall increase by $5,000 for each additional pupil of the claimant, up to a maximum of $60,000 in the year to which the claim relates.

AB768,151,21 b. If the claimant is married and files separately, $15,000 in the year to which the claim relates if he or she has one pupil. The income specified in this subd. 8. b. shall increase by $2,500 for each additional pupil of the claimant, up to a maximum of $30,000 in the year to which the claim relates.

AB768,151,25 c. If the claimant is single or married and filing as head of household, $25,000 in the year to which the claim relates if he or she has one pupil. The income specified in this subd. 8. c. shall increase by $5,000 for each additional pupil of the claimant, up to a maximum of $55,000 in the year to which the claim relates.

AB768,152,2 9. No credit may be claimed under this subsection for educational expenses related to an eligible institution that is not located in Wisconsin.

AB768,152,7 (d) Administration. The department of revenue may enforce the credit under this subsection and may take any action, conduct any proceeding and proceed as it is authorized in respect to taxes under this chapter. The income tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest and penalties apply to the credit under this subsection.

AB768, s. 286 Section 286. 71.08 (1) (intro.) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

AB768,152,18 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married couple filing jointly, trust or estate under s. 71.02, not considering the credits under ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3m), (6), (8m) and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd) and (2m) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd) and (2m) and subchs. VIII and IX and payments to other states under s. 71.07 (7), is less than the tax under this section, there is imposed on that natural person, married couple filing jointly, trust or estate, instead of the tax under s. 71.02, an alternative minimum tax computed as follows:

AB768, s. 287 Section 287. 71.10 (4) (i) of the statutes is amended to read:

AB768,152,25 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under subch. IX, homestead credit under subch. VIII, farmland tax relief credit under s. 71.07 (3m), farmers' drought property tax credit under s. 71.07 (2fd), educational expenses credit under s. 71.07 (8m), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

AB768, s. 288 Section 288. 71.125 (2) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

AB768,153,7 71.125 (2) Each electing small business trust, as defined in section 1361 (e) (1) of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1) or under s. 71.06 (1m), whichever taxable year is applicable, on its Wisconsin taxable income as computed under section 641 of the Internal Revenue Code, as modified by s. 71.05 (6) to (12), (19) and (20).

AB768, s. 289 Section 289. 71.17 (6) of the statutes is created to read:

AB768,153,12 71.17 (6) Funeral trusts. If a qualified funeral trust makes the election under section 685 of the Internal Revenue Code for federal income tax purposes, that election applies for purposes of this chapter and each trust shall compute its own tax and shall apply the rates under s. 71.06 (1m).

AB768, s. 290 Section 290. 71.22 (4) (m) of the statutes, as created by 1997 Wisconsin Act 37, is amended to read:

AB768,154,14 71.22 (4) (m) Except as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34 (1g) and 71.42 (2), "Internal Revenue Code", for taxable years that begin after December 31, 1997, means the federal Internal Revenue Code as amended to December 31, 1996 1997, excluding sections 103, 104 and 110 of P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66 and sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, and as amended by the provisions of P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and as indirectly affected in the provisions applicable to this subchapter by P.L. 99-514, P.L. 100-203, P.L. 100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823 (c) (2) of P.L. 99-514 and section 1008 (g) (5) of P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508, P.L. 102-227, excluding sections 103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L. 104-7, P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, P.L. 104-191 , P.L. 104-193 and the provisions of, P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 1996 1997, do not apply to this paragraph with respect to taxable years beginning after December 31, 1997, except that changes to the Internal Revenue Code made by P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and changes that indirectly affect the provisions applicable to this subchapter made by P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, apply for Wisconsin purposes at the same time as for federal purposes.

AB768, s. 291 Section 291. 71.22 (4m) (k) of the statutes, as created by 1997 Wisconsin Act 37, is amended to read:

AB768,155,14 71.22 (4m) (k) For taxable years that begin after December 31, 1997, "Internal Revenue Code", for corporations that are subject to a tax on unrelated business income under s. 71.26 (1) (a), means the federal Internal Revenue Code as amended to December 31, 1996 1997, excluding sections 103, 104 and 110 of P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, and sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, and as amended by the provisions of P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and as indirectly affected in the provisions applicable to this subchapter by P.L. 99-514, P.L. 100-203, P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508, P.L. 102-227, excluding sections 103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L. 104-7, P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, P.L. 104-191 , P.L. 104-193 and the provisions of, P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the Internal Revenue Code enacted after December 31, 1996 1997, do not apply to this paragraph with respect to taxable years beginning after December 31, 1997, except that changes to the Internal Revenue Code made by P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and changes that indirectly affect the provisions applicable to this subchapter made by P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, apply for Wisconsin purposes at the same time as for federal purposes.

AB768, s. 292 Section 292. 71.26 (2) (b) 13. of the statutes, as created by 1997 Wisconsin Act 37, is amended to read:

AB768,157,25 71.26 (2) (b) 13. For taxable years that begin after December 31, 1997, for a corporation, conduit or common law trust which qualifies as a regulated investment company, real estate mortgage investment conduit, real estate investment trust or financial asset securitization investment trust under the Internal Revenue Code as amended to December 31, 1996 1997, excluding sections 103, 104 and 110 of P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66 and sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188 , and as amended by the provisions of P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and as indirectly affected in the provisions applicable to this subchapter by P.L. 99-514, P.L. 100-203, P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508, P.L. 102-227, excluding sections 103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L. 104-7, P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, P.L. 104-191 , P.L. 104-193 and the provisions of, P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, "net income" means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income, federal real estate investment trust or financial asset securitization investment trust taxable income of the corporation, conduit or trust as determined under the Internal Revenue Code as amended to December 31, 1996 1997, excluding sections 103, 104 and 110 of P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66 and sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188 , and as amended by the provisions of P.L. 105-33 and P.L. 105-34 that take effect before January 1,1998, and as indirectly affected in the provisions applicable to this subchapter by P.L. 99-514, P.L. 100-203, P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508, P.L. 102-227, excluding sections 103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L. 104-7, P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, P.L. 104-191 , P.L. 104-193 and the provisions of, P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, except that property that, under s. 71.02 (1) (c) 8. to 11., 1985 stats., is required to be depreciated for taxable years 1983 to 1986 under the Internal Revenue Code as amended to December 31, 1980, shall continue to be depreciated under the Internal Revenue Code as amended to December 31, 1980, and except that the appropriate amount shall be added or subtracted to reflect differences between the depreciation or adjusted basis for federal income tax purposes and the depreciation or adjusted basis under this chapter of any property disposed of during the taxable year. The Internal Revenue Code as amended to December 31, 1996 1997, excluding sections 103, 104 and 110 of P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, and sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, and as amended by the provisions of P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and as indirectly affected in the provisions applicable to this subchapter by P.L. 99-514, P.L. 100-203, P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508, P.L. 102-227, excluding sections 103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L. 104-7, P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, P.L. 104-191 , P.L. 104-193 and the provisions of, P.L.105-33 and P.L. 105-34 that take effect before January 1, 1998, applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the Internal Revenue Code enacted after December 31, 1996 1997, do not apply to this subdivision with respect to taxable years that begin after December 31, 1997, except that changes to the Internal Revenue Code made by P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and changes that indirectly affect the provisions applicable to this subchapter made by P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, apply for Wisconsin purposes at the same time as for federal purposes.

AB768, s. 293 Section 293. 71.26 (3) (y) of the statutes, as affected by 1997 Wisconsin Act 37, is amended to read:

AB768,158,15 71.26 (3) (y) A corporation may compute amortization and depreciation under either the federal internal revenue code as amended to December 31, 1996, for property placed in service before August 6, 1997, or as amended to August 5, 1997, for property placed in service on August 6, 1997, or thereafter 1997, or the federal internal revenue code in effect for the taxable year for which the return is filed, except that property first placed in service by the taxpayer on or after January 1, 1983, but before January 1, 1987, that, under s. 71.04 (15) (b) and (br), 1985 stats., is required to be depreciated under the internal revenue code as amended to December 31, 1980, and property first placed in service in taxable year 1981 or thereafter but before January 1, 1987, that, under s. 71.04 (15) (bm), 1985 stats., is required to be depreciated under the internal revenue code as amended to December 31, 1980, shall continue to be depreciated under the internal revenue code as amended to December 31, 1980.

AB768, s. 294 Section 294. 71.34 (1g) (m) of the statutes, as created by 1997 Wisconsin Act 37, is amended to read:

AB768,159,18 71.34 (1g) (m) "Internal Revenue Code" for tax-option corporations, for taxable years that begin after December 31, 1997, means the federal Internal Revenue Code as amended to December 31, 1996 1997, excluding sections 103, 104 and 110 of P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66 and sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188 , and as amended by the provisions of P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and as indirectly affected in the provisions applicable to this subchapter by P.L. 99-514, P.L. 100-203, P.L. 100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823 (c) (2) of P.L. 99-514 and section 1008 (g) (5) of P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508, P.L. 102-227, excluding sections 103, 104 and 110 of P.L. 102-227, P.L. 102-318, P.L. 102-486, P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L. 104-7, P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L. 104-188, P.L. 104-191 , P.L. 104-193 and the provisions of, P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, except that section 1366 (f) (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. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 1996 1997, do not apply to this paragraph with respect to taxable years beginning after December 31, 1997, except that changes to the Internal Revenue Code made by P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and changes that indirectly affect the provisions applicable to this subchapter made by P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, apply for Wisconsin purposes at the same time as for federal purposes.

AB768, s. 295 Section 295. 71.365 (1m) of the statutes, as affected by 1997 Wisconsin Act 37, is amended to read:

AB768,160,23 71.365 (1m) Tax-option corporations; depreciation. A tax-option corporation may compute amortization and depreciation under either the federal internal revenue code as amended to December 31, 1996, for property placed in service before August 6, 1997, or as amended to August 5, 1997, for property placed in service on August 6, 1997, or thereafter 1997, or the federal internal revenue code in effect for the taxable year for which the return is filed, except that property first placed in service by the taxpayer on or after January 1, 1983, but before January 1, 1987, that, under s. 71.04 (15) (b) and (br), 1985 stats., is required to be depreciated under the internal revenue code as amended to December 31, 1980, and property first placed in service in taxable year 1981 or thereafter but before January 1, 1987, that, under s. 71.04 (15) (bm), 1985 stats., is required to be depreciated under the internal revenue code as amended to December 31, 1980, shall continue to be depreciated under the internal revenue code as amended to December 31, 1980. Any difference between the adjusted basis for federal income tax purposes and the adjusted basis under this chapter shall be taken into account in determining net income or loss in the year or years for which the gain or loss is reportable under this chapter. If that property was placed in service by the taxpayer during taxable year 1986 and thereafter but before the property is used in the production of income subject to taxation under this chapter, the property's adjusted basis and the depreciation or other deduction schedule are not required to be changed from the amount allowable on the owner's federal income tax returns for any year because the property is used in the production of income subject to taxation under this chapter. If that property was acquired in a transaction in taxable year 1986 or thereafter in which the adjusted basis of the property in the hands of the transferee is the same as the adjusted basis of the property in the hands of the transferor, the Wisconsin adjusted basis of that property on the date of transfer is the adjusted basis allowable under the internal revenue code as defined for Wisconsin purposes for the property in the hands of the transferor.

AB768, s. 296 Section 296. 71.42 (2) (L) of the statutes, as created by 1997 Wisconsin Act 37, is amended to read: