AB184: Bill Text

LRB-0405/1

JK:jld:md

2009 - 2010 LEGISLATURE

2009 Assembly BILL 184

April 2, 2009 - Introduced by Representatives Roth, Ziegelbauer, Vos, Townsend, Petrowski, A. Ott, Murtha, Mursau, LeMahieu, Kleefisch, Gunderson and Brooks, cosponsored by Senators Taylor, Olsen, Grothman and Darling. Referred to Committee on Jobs, the Economy and Small Business.

AB184,1,3 An Act to create 71.01 (7r) (d), 71.22 (5m) (c) and 71.34 (1m) (c) of the statutes; relating to: increasing expense deductions for income and franchise tax purposes.

Analysis by the Legislative Reference Bureau

Under recent changes to federal law, the amount that a business may claim as an expense deduction for federal income tax purposes increased from $25,000 to $100,000 for property placed in service in 2003, 2004, and 2005. Under current law. the increase in the expense deduction, for state income and franchise tax purposes, applies only to property used in farming that is acquired and placed in service beginning on or after January 1, 2008. An expense deduction for all other property is subject to a $25,000 limit.

This bill increases the expense deduction limit to $50,000 for property that is not used in farming and that is acquired and placed in service beginning on or after January 1, 2008.

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:

AB184, s. 1 Section 1. 71.01 (7r) (d) of the statutes is created to read:

AB184,2,4 71.01 (7r) (d) Notwithstanding sub. (6), and except as provided under par. (c), the total amount of the expense deduction that may be claimed under section 179 of the Internal Revenue Code is $50,000. This paragraph applies to property that is acquired and placed in service in taxable years beginning on or after January 1, 2008.

AB184, s. 2 Section 2. 71.22 (5m) (c) of the statutes is created to read:

AB184,2,10 71.22 (5m) (c) Notwithstanding subs. (4) and (4m), and except as provided under par. (b), the total amount of the expense deduction that may be claimed under section 179 of the Internal Revenue Code is $50,000. This paragraph applies to property that is acquired and placed in service in taxable years beginning on or after January 1, 2008.

AB184, s. 3 Section 3. 71.34 (1m) (c) of the statutes is created to read:

AB184,2,15 71.34 (1m) (c) Notwithstanding sub. (1g), and except as provided under par. (b), the total amount of the expense deduction that may be claimed under section 179 of the Internal Revenue Code is $50,000. This paragraph applies to property that is acquired and placed in service in taxable years beginning on or after January 1, 2008.

AB184,2,16 (End)