SB21,945,2018 2. No credit may be allowed under this subsection unless the claimant includes
19with the claimant's return a copy of the claimant's certification for tax benefits under
20s. 235.308.
SB21,945,2221 (d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit
22under sub. (4), applies to the credit under this subsection.
SB21,946,223 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise
24due under s. 71.23, the amount of the claim not used to offset the tax due shall be
25certified by the department of revenue to the department of administration for

1payment by check, share draft, or other draft drawn from the appropriation account
2under s. 20.835 (2) (bg).
SB21,2317 3Section 2317. 71.28 (4) (ad) 1. of the statutes is amended to read:
SB21,946,184 71.28 (4) (ad) 1. Except as provided in subds. 2. and 3., any corporation may
5credit against taxes otherwise due under this chapter an amount equal to 5 percent
6of the amount obtained by subtracting from the corporation's qualified research
7expenses, as defined in section 41 of the Internal Revenue Code, except that
8"qualified research expenses" includes only expenses incurred by the claimant,
9incurred for research conducted in this state for the taxable year, except that a
10taxpayer may elect the alternative computation under section 41 (c) (4) of the
11Internal Revenue Code and that election applies until the department permits its
12revocation, except as provided in par. (af), and except that "qualified research
13expenses" does not include compensation used in computing the credit under subs.
14(1dj) and
sub. (1dx), the corporation's base amount, as defined in section 41 (c) of the
15Internal Revenue Code, except that gross receipts used in calculating the base
16amount means gross receipts from sales attributable to Wisconsin under s. 71.25 (9)
17(b) 1. and 2., (df) 1. and 2., (dh) 1., 2., and 3., (dj), and (dk). Section 41 (h) of the
18Internal Revenue Code does not apply to the credit under this paragraph.
SB21,2318 19Section 2318. 71.28 (4) (ad) 2. of the statutes is amended to read:
SB21,947,1220 71.28 (4) (ad) 2. For taxable years beginning after June 30, 2007, any
21corporation may credit against taxes otherwise due under this chapter an amount
22equal to 10 percent of the amount obtained by subtracting from the corporation's
23qualified research expenses, as defined in section 41 of the Internal Revenue Code,
24except that "qualified research expenses" includes only expenses incurred by the
25claimant for research related to designing internal combustion engines for vehicles,

1including expenses related to designing vehicles that are powered by such engines
2and improving production processes for such engines and vehicles, incurred for
3research conducted in this state for the taxable year, except that a taxpayer may elect
4the alternative computation under section 41 (c) (4) of the Internal Revenue Code
5and that election applies until the department permits its revocation, except as
6provided in par. (af), and except that "qualified research expenses" does not include
7compensation used in computing the credit under subs. (1dj) and sub. (1dx), the
8corporation's base amount, as defined in section 41 (c) of the Internal Revenue Code,
9except that gross receipts used in calculating the base amount means gross receipts
10from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2., (df) 1. and 2., (dh)
111., 2., and 3., (dj), and (dk). Section 41 (h) of the Internal Revenue Code does not apply
12to the credit under this paragraph.
SB21,2319 13Section 2319. 71.28 (4) (ad) 3. of the statutes is amended to read:
SB21,948,714 71.28 (4) (ad) 3. For taxable years beginning after June 30, 2007, any
15corporation may credit against taxes otherwise due under this chapter an amount
16equal to 10 percent of the amount obtained by subtracting from the corporation's
17qualified research expenses, as defined in section 41 of the Internal Revenue Code,
18except that "qualified research expenses" includes only expenses incurred by the
19claimant for research related to the design and manufacturing of energy efficient
20lighting systems, building automation and control systems, or automotive batteries
21for use in hybrid-electric vehicles, that reduce the demand for natural gas or
22electricity or improve the efficiency of its use, incurred for research conducted in this
23state for the taxable year, except that a taxpayer may elect the alternative
24computation under section 41 (c) (4) of the Internal Revenue Code and that election
25applies until the department permits its revocation, except as provided in par. (af),

1and except that "qualified research expenses" does not include compensation used
2in computing the credit under subs. (1dj) and sub. (1dx), the corporation's base
3amount, as defined in section 41 (c) of the Internal Revenue Code, except that gross
4receipts used in calculating the base amount means gross receipts from sales
5attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2., (df), 1. and 2., (dh) 1., 2., and
63., (dj), and (dk). Section 41 (h) of the Internal Revenue Code does not apply to the
7credit under this paragraph.
SB21,2320 8Section 2320. 71.28 (4) (am) 1. of the statutes is amended to read:
SB21,949,119 71.28 (4) (am) 1. In addition to the credit under par. (ad), any corporation may
10credit against taxes otherwise due under this chapter an amount equal to 5 percent
11of the amount obtained by subtracting from the corporation's qualified research
12expenses, as defined in section 41 of the Internal Revenue Code, except that
13"qualified research expenses" include only expenses incurred by the claimant in a
14development zone under subch. III of ch. 235 or subch. II of ch. 238, 2013 stats., or
15subch. VI of ch. 560, 2009 stats., except that a taxpayer may elect the alternative
16computation under section 41 (c) (4) of the Internal Revenue Code and that election
17applies until the department permits its revocation and except that "qualified
18research expenses" do does not include compensation used in computing the credit
19under sub. (1dj) nor
research expenses incurred before the claimant is certified for
20tax benefits under s. 235.365 (3) or s. 238.365 (3) , 2013 stats., or s. 560.765 (3), 2009
21stats., or the corporation's base amount, as defined in section 41 (c) of the Internal
22Revenue Code, in a development zone, except that gross receipts used in calculating
23the base amount means gross receipts from sales attributable to Wisconsin under s.
2471.25 (9) (b) 1. and 2., (df) 1. and 2., (dh) 1., 2., and 3., (dj), and (dk) and research
25expenses used in calculating the base amount include research expenses incurred

1before the claimant is certified for tax benefits under s. 235.365 (3) or s. 238.365 (3),
22013 stats.,
or s. 560.765 (3), 2009 stats., in a development zone, if the claimant
3submits with the claimant's return a copy of the claimant's certification for tax
4benefits under s. 235.365 (3) or s. 238.365 (3), 2013 stats., or s. 560.765 (3), 2009
5stats., and a statement from the department of commerce or the Wisconsin Economic
6Development Corporation or Forward Wisconsin Development Authority verifying
7the claimant's qualified research expenses for research conducted exclusively in a
8development zone. The rules under s. 73.03 (35) apply to the credit under this
9subdivision. The rules under sub. (1di) (f) and (g) as they apply to the credit under
10that subsection apply to claims under this subdivision.
Section 41 (h) of the Internal
11Revenue Code does not apply to the credit under this subdivision.
SB21,2321 12Section 2321. 71.28 (4) (am) 2. of the statutes is amended to read:
SB21,949,2313 71.28 (4) (am) 2. The development zones credit under subd. 1., as it applies to
14a person certified under s. 235.365 or s. 238.365 (3), 2013 stats., or s. 560.765 (3), 2009
15stats., applies to a corporation that conducts economic activity in a development
16opportunity zone under s. 235.395 (1) or s. 238.395 (1), 2013 stats., or s. 560.795 (1),
172009 stats., and that is entitled to tax benefits under s. 235.395 (3) or s. 238.395 (3),
182013 stats.,
or s. 560.795 (3), 2009 stats., subject to the limits under s. 235.395 (2) or
19s. 238.395 (2), 2013 stats., or s. 560.795 (2), 2009 stats. A development opportunity
20zone credit under this subdivision may be calculated using expenses incurred by a
21claimant beginning on the effective date under s. 235.395 (2) (a) or s. 238.395 (2) (a),
222013 stats.,
or s. 560.795 (2) (a), 2009 stats., of the development opportunity zone
23designation of the area in which the claimant conducts economic activity.
SB21,2322 24Section 2322. 71.28 (4m) (a) of the statutes is amended to read:
SB21,950,6
171.28 (4m) (a) Definition. In this subsection, "qualified research expenses"
2means qualified research expenses as defined in section 41 of the Internal Revenue
3Code, except that "qualified research expenses" includes only expenses incurred by
4the claimant for research conducted in this state for the taxable year and except that
5"qualified research expenses" do does not include compensation used in computing
6the credits credit under subs. (1dj) and sub. (1dx).
SB21,2323 7Section 2323. 71.28 (5b) (a) 2. of the statutes is amended to read:
SB21,950,98 71.28 (5b) (a) 2. "Fund manager" means an investment fund manager certified
9under s. 235.15 (2) or s. 238.15 (2), 2013 stats., or s. 560.205 (2), 2009 stats.
SB21,2324 10Section 2324. 71.28 (5b) (b) 1. of the statutes is amended to read:
SB21,950,1711 71.28 (5b) (b) 1. For taxable years beginning after December 31, 2004, subject
12to the limitations provided under this subsection and s. 235.15 or s. 238.15, 2013
13stats.,
or s. 560.205, 2009 stats., and except as provided in subd. 2., a claimant may
14claim as a credit against the tax imposed under s. 71.23, up to the amount of those
15taxes, 25 percent of the claimant's investment paid to a fund manager that the fund
16manager invests in a business certified under s. 235.15 (1) or s. 238.15 (1), 2013
17stats.,
or s. 560.205 (1), 2009 stats.
SB21,2325 18Section 2325. 71.28 (5b) (b) 2. of the statutes is amended to read:
SB21,951,219 71.28 (5b) (b) 2. In the case of a partnership, limited liability company, or
20tax-option corporation, the computation of the 25 percent limitation under subd. 1.
21shall be determined at the entity level rather than the claimant level and may be
22allocated among the claimants who make investments in the manner set forth in the
23entity's organizational documents. The entity shall provide to the department of
24revenue and to the department of commerce or the Wisconsin Economic
25Development Corporation
Forward Wisconsin Development Authority the names

1and tax identification numbers of the claimants, the amounts of the credits allocated
2to the claimants, and the computation of the allocations.
SB21,2326 3Section 2326. 71.28 (5b) (d) 3. of the statutes is amended to read:
SB21,951,84 71.28 (5b) (d) 3. Except as provided under s. 238.15 235.15 (3) (d) (intro.), for
5investments made after December 31, 2007, if an investment for which a claimant
6claims a credit under par. (b) is held by the claimant for less than 3 years, the
7claimant shall pay to the department, in the manner prescribed by the department,
8the amount of the credit that the claimant received related to the investment.
SB21,2327 9Section 2327. 71.28 (5j) (a) 2d. of the statutes is amended to read:
SB21,951,1510 71.28 (5j) (a) 2d. "Diesel replacement renewable fuel" includes biodiesel and
11any other fuel derived from a renewable resource that meets all of the applicable
12requirements of the American Society for Testing and Materials for that fuel and that
13the department of commerce or the department of safety and professional services
14financial institutions and professional standards designates by rule as a diesel
15replacement renewable fuel.
SB21,2328 16Section 2328. 71.28 (5j) (a) 2m. of the statutes is amended to read:
SB21,951,2217 71.28 (5j) (a) 2m. "Gasoline replacement renewable fuel" includes ethanol and
18any other fuel derived from a renewable resource that meets all of the applicable
19requirements of the American Society for Testing and Materials for that fuel and that
20the department of commerce or the department of safety and professional services
21financial institutions and professional standards designates by rule as a gasoline
22replacement renewable fuel.
SB21,2329 23Section 2329. 71.28 (5j) (c) 3. of the statutes is amended to read:
SB21,952,424 71.28 (5j) (c) 3. The department of commerce or the department of safety and
25professional services
financial institutions and professional standards shall

1establish standards to adequately prevent, in the distribution of conventional fuel
2to an end user, the inadvertent distribution of fuel containing a higher percentage
3of renewable fuel than the maximum percentage established by the federal
4environmental protection agency for use in conventionally-fueled engines.
SB21,2330 5Section 2330. 71.28 (5n) (a) 1. a. of the statutes is amended to read:
SB21,952,136 71.28 (5n) (a) 1. a. "Agriculture property factor" means a fraction, the
7numerator of which is the average value of the claimant's real property and
8improvements assessed under s. 70.32 (2) (a) 4. to 7., owned or rented and used in
9this state by the claimant during the taxable year to produce, grow, or extract
10qualified production property, and the denominator of which is the average value of
11all of the claimant's real property and improvements owned or rented during the
12taxable year and used by the claimant to produce, grow, or extract qualified
13production property.
SB21,2331 14Section 2331. 71.28 (5n) (a) 3. of the statutes is amended to read:
SB21,952,1915 71.28 (5n) (a) 3. "Direct costs" includes all of the claimant's ordinary and
16necessary expenses paid or incurred during the taxable year in carrying on the trade
17or business that are deductible as business expenses under section 162 of the
18Internal Revenue Code and identified as direct costs in the claimant's managerial or
19cost accounting records.
SB21,2332 20Section 2332. 71.28 (5n) (a) 4. of the statutes is amended to read:
SB21,952,2521 71.28 (5n) (a) 4. "Indirect costs" includes all of the claimant's ordinary and
22necessary expenses paid or incurred during the taxable year in carrying on the trade
23or business that are deductible as business expenses under section 162 of the
24Internal Revenue Code, other than cost of goods sold and direct costs, and identified
25as indirect costs in the claimant's managerial or cost accounting records.
SB21,2333
1Section 2333. 71.28 (5n) (a) 5. d. of the statutes is created to read:
SB21,953,62 71.28 (5n) (a) 5. d. For purposes of subd. 5. a., a claimant who the department
3approves to be classified as a manufacturer for purposes of s. 70.995, but who is not
4eligible to be listed on the department's manufacturing roll until January 1 of the
5following year, may claim the credit in the year in which the manufacturing
6classification is approved.
SB21,2334 7Section 2334. 71.28 (5r) (a) 2. of the statutes is amended to read:
SB21,953,98 71.28 (5r) (a) 2. "Course of instruction" has the meaning given in s. 38.50 440.52
9(1) (c).
SB21,2335 10Section 2335. 71.28 (5r) (a) 6. b. of the statutes is amended to read:
SB21,953,1211 71.28 (5r) (a) 6. b. A school approved authorized under s. 38.50 440.52, if the
12delivery of education occurs in this state.
SB21,2336 13Section 2336. 71.28 (6) (a) 3. of the statutes is amended to read:
SB21,954,314 71.28 (6) (a) 3. For Except as provided in par. (k), for taxable years beginning
15after December 31, 2013, and before January 1, 2015, any person may claim as a
16credit against taxes otherwise due under s. 71.23, up to the amount of those taxes,
17an amount equal to 20 percent of the costs of qualified rehabilitation expenditures,
18as defined in section 47 (c) (2) of the Internal Revenue Code, for qualified
19rehabilitated buildings, as defined in section 47 (c) (1) of the Internal Revenue Code,
20on property located in this state, if the cost of the person's qualified rehabilitation
21expenditures is at least $50,000 and the rehabilitated property is placed in service
22after December 31, 2013, and before January 1, 2015, and regardless of whether the
23rehabilitated property is used for multiple or revenue-producing purposes. No
24credit may be claimed under this subdivision for property listed as a contributing
25building in the state register of historic places or in the national register of historic

1places and no credit may be claimed under this subdivision for nonhistoric,
2nonresidential property converted into housing if the property has been previously
3used for housing.
SB21,2337 4Section 2337. 71.28 (6) (c) (intro.) of the statutes is amended to read:
SB21,954,95 71.28 (6) (c) (intro.) No person may claim the credit under par. (a) 2m. unless
6the claimant includes with the claimant's return a copy of the claimant's certification
7under s. 238.17 235.17. For certification purposes under s. 238.17 235.17, the
8claimant shall provide to the Wisconsin Economic Development Corporation
9Forward Wisconsin Development Authority all of the following:
SB21,2338 10Section 2338. 71.28 (6) (i) of the statutes is created to read:
SB21,954,1611 71.28 (6) (i) 1. a. Except as provided in subd. 1. b., if the activity for which a
12person claims a credit under this subsection creates fewer full-time jobs than
13projected under s. 235.17 (3) (a), as reported to the department under s. 235.17 (4),
14the person who claimed the credit shall repay to the department any amount of the
15credit claimed, as determined by the department, in proportion to the number of
16full-time jobs created compared to the number of full-time jobs projected.
SB21,954,1817 b. For purposes of subd. 1. a., the person who initially sells or transfers a credit
18under par. (h) is responsible for repaying the credit.
SB21,954,2319 2. If a person who claims a credit under this subsection and a credit under
20section 47 of the Internal Revenue Code for the same qualified rehabilitation
21expenditures is required to repay the full amount of the credit claimed under section
2247 of the Internal Revenue Code, the person shall repay to the department the
23amount of the credit claimed under this subsection.
SB21,2339 24Section 2339. 71.28 (6) (k) of the statutes is created to read:
SB21,955,4
171.28 (6) (k) A person who has incurred qualified rehabilitation expenditures
2under par. (a) 3. before January 1, 2015, may claim the credit under par. (a) 3. for
3taxable years beginning after December 31, 2014, even if the property is not placed
4in service until after December 31, 2014.
SB21,2340 5Section 2340. 71.30 (3) (eb) of the statutes is repealed.
SB21,2341 6Section 2341. 71.30 (3) (ec) of the statutes is repealed.
SB21,2342 7Section 2342. 71.30 (3) (eg) of the statutes is repealed.
SB21,2343 8Section 2343. 71.30 (3) (eh) of the statutes is repealed.
SB21,2344 9Section 2344. 71.30 (3) (ej) of the statutes is repealed.
SB21,2345 10Section 2345. 71.30 (3) (ek) of the statutes is repealed.
SB21,2346 11Section 2346. 71.30 (3) (f) of the statutes is amended to read:
SB21,955,2112 71.30 (3) (f) The total of farmland preservation credit under subch. IX,
13farmland tax relief credit under s. 71.28 (2m), dairy manufacturing facility
14investment credit under s. 71.28 (3p), jobs credit under s. 71.28 (3q), meat processing
15facility investment credit under s. 71.28 (3r), woody biomass harvesting and
16processing credit under s. 71.28 (3rm), food processing plant and food warehouse
17investment credit under s. 71.28 (3rn), enterprise zone jobs credit under s. 71.28
18(3w), business development credit under s. 71.28 (3y), film production services credit
19under s. 71.28 (5f), film production company investment credit under s. 71.28 (5h),
20beginning farmer and farm asset owner tax credit under s. 71.28 (8r), and estimated
21tax payments under s. 71.29.
SB21,2347 22Section 2347. 71.34 (1g) (a) of the statutes is repealed.
SB21,2348 23Section 2348. 71.34 (1g) (g) of the statutes is amended to read:
SB21,958,1424 71.34 (1g) (g) "Internal Revenue Code" for tax-option corporations, for taxable
25years that begin after December 31, 2008, and before January 1, 2011, means the

1federal Internal Revenue Code as amended to December 31, 2008, excluding sections
2103, 104, and 110 of P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174, and
313203 (d) of P.L. 103-66, sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of P.L.
4104-188, sections 1, 3, 4, and 5 of P.L. 106-519, sections 162 and 165 of P.L. 106-554,
5P.L. 106-573, section 431 of P.L. 107-16, sections 101 and 301 (a) of P.L. 107-147,
6sections 106, 201, and 202 of P.L. 108-27, section 1201 of P.L. 108-173, sections 306,
7308, 316, 401, and 403 (a) of P.L. 108-311, sections 101, 102, 201, 211, 242, 244, 336,
8337, 422, 847, 909, and 910 of P.L. 108-357, P.L. 109-1, sections 1305, 1308, 1309,
91310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of P.L. 109-58, section
1011146 of P.L. 109-59, section 301 of P.L. 109-73, sections 101, 105, 201 (a) as it relates
11to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of P.L. 109-135, sections 101,
12207, 209, 503, and 513 of P.L. 109-222, P.L. 109-432, P.L. 110-28, P.L. 110-140, P.L.
13110-141, P.L. 110-142, P.L. 110-166, P.L. 110-172, P.L. 110-185, P.L. 110-234,
14sections 110, 113, and 301 of P.L. 110-245, P.L. 110-246, except section 15316 of P.L.
15110-246, P.L. 110-289, except section 3093 of P.L. 110-289, P.L. 110-317, and P.L.
16110-343, except section 301 of division B and section 313 of division C of P.L. 110-343,
17and as amended by sections 1261, 1262, 1401, 1402, 1521, 1522, 1531, and 1541 of
18division B of P.L. 111-5, section 301 of P.L. 111-147, P.L. 111-192, section 1601 of P.L.
19111-203, section 215 of P.L. 111-226, section 2112 of P.L. 111-240, and P.L. 111-325,
20and P.L. 113-168, and as indirectly affected in the provisions applicable to this
21subchapter by P.L. 99-514, P.L. 100-203, P.L. 100-647, excluding sections 803 (d) (2)
22(B), 805 (d) (2), 812 (c) (2), 821 (b) (2), and 823 (c) (2) of P.L. 99-514 and section 1008
23(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.
24101-508, P.L. 102-227, excluding sections 103, 104, and 110 of P.L. 102-227, P.L.
25102-318, P.L. 102-486, P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d),

113174, and 13203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L.
2104-7, P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605
3(d) of P.L. 104-188, P.L. 104-191, P.L. 104-193, P.L. 105-33, P.L. 105-34, P.L.
4105-178, P.L. 105-206, P.L. 105-277, P.L. 106-36, P.L. 106-170, P.L. 106-230, P.L.
5106-554, excluding sections 162 and 165 of P.L. 106-554, P.L. 107-15, P.L. 107-16,
6excluding section 431 of P.L. 107-16, P.L. 107-22, P.L. 107-116, P.L. 107-134, P.L.
7107-147, excluding sections 101 and 301 (a) of P.L. 107-147, P.L. 107-181, P.L.
8107-210, P.L. 107-276, P.L. 107-358, P.L. 108-27, excluding sections 106, 201, and
9202 of P.L. 108-27, P.L. 108-121, P.L. 108-173, excluding section 1201 of P.L.
10108-173, P.L. 108-203, P.L. 108-218, P.L. 108-311, excluding sections 306, 308, 316,
11401, and 403 (a) of P.L. 108-311, P.L. 108-357, excluding sections 101, 102, 201, 211,
12242, 244, 336, 337, 422, 847, 909, and 910 of P.L. 108-357, P.L. 108-375, P.L. 108-476,
13P.L. 109-7, P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325,
141326, 1328, 1329, 1348, and 1351 of P.L. 109-58, P.L. 109-59, excluding section 11146
15of P.L. 109-59, P.L. 109-73, excluding section 301 of P.L. 109-73, P.L. 109-135,
16excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e),
17(j), and (q), and 405 of P.L. 109-135, P.L. 109-151, P.L. 109-222, excluding sections
18101, 207, 209, 503, and 513 of P.L. 109-222, P.L. 109-227, P.L. 109-280, P.L. 110-245,
19excluding sections 110, 113, and 301 of P.L. 110-245, section 15316 of P.L. 110-246,
20section 3093 of P.L. 110-289, section 301 of division B and section 313 of division C
21of P.L. 110-343, P.L. 110-351, P.L. 110-458, sections 1261, 1262, 1401, 1402, 1521,
221522, 1531, and 1541 of division B of P.L. 111-5, section 301 of P.L. 111-147, P.L.
23111-192, section 1601 of P.L. 111-203, section 215 of P.L. 111-226, section 2112 of P.L.
24111-240, and P.L. 111-325, and P.L. 113-168, except that section 1366 (f) (relating
25to pass-through of items to shareholders) is modified by substituting the tax under

1s. 71.35 for the taxes under sections 1374 and 1375. The Internal Revenue Code
2applies for Wisconsin purposes at the same time as for federal purposes.
3Amendments to the federal Internal Revenue Code enacted after December 31, 2008,
4do not apply to this paragraph with respect to taxable years beginning after
5December 31, 2008, and before January 1, 2011, except that changes to the Internal
6Revenue Code made by sections 1261, 1262, 1401, 1402, 1521, 1522, 1531, and 1541
7of division B of P.L. 111-5, section 301 of P.L. 111-147, P.L. 111-192, section 1601 of
8P.L. 111-203, section 215 of P.L. 111-226, section 2112 of P.L. 111-240, and P.L.
9111-325, and P.L. 113-168, and changes that indirectly affect the provisions
10applicable to this subchapter made by sections 1261, 1262, 1401, 1402, 1521, 1522,
111531, and 1541 of division B of P.L. 111-5, section 301 of P.L. 111-147, P.L. 111-192,
12section 1601 of P.L. 111-203, section 215 of P.L. 111-226, section 2112 of P.L. 111-240,
13and P.L. 111-325, and P.L. 113-168, apply for Wisconsin purposes at the same time
14as for federal purposes.
SB21,2349 15Section 2349. 71.34 (1g) (h) of the statutes is amended to read:
SB21,962,216 71.34 (1g) (h) "Internal Revenue Code" for tax-option corporations, for taxable
17years that begin after December 31, 2010, and before January 1, 2013, means the
18federal Internal Revenue Code as amended to December 31, 2010, excluding sections
19103, 104, and 110 of P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174, and
2013203 (d) of P.L. 103-66, sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of P.L.
21104-188, sections 1, 3, 4, and 5 of P.L. 106-519, sections 162 and 165 of P.L. 106-554,
22P.L. 106-573, section 431 of P.L. 107-16, sections 101 and 301 (a) of P.L. 107-147,
23sections 106, 201, and 202 of P.L. 108-27, section 1201 of P.L. 108-173, sections 306,
24308, 316, 401, and 403 (a) of P.L. 108-311, sections 101, 102, 201, 211, 242, 244, 336,
25337, 422, 847, 909, and 910 of P.L. 108-357, P.L. 109-1, sections 1305, 1308, 1309,

11310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of P.L. 109-58, section
211146 of P.L. 109-59, section 301 of P.L. 109-73, sections 101, 105, 201 (a) as it relates
3to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of P.L. 109-135, sections 101,
4207, 503, and 513 of P.L. 109-222, P.L. 109-432, except sections 117, 406, 409, 410,
5412, 417, 418, 424, and 425 of division A and section 403 of division C of P.L. 109-432,
6P.L. 110-28, except sections 8215, 8231, 8232, 8234, and 8236 of P.L. 110-28, P.L.
7110-140, sections 2, 3, and 5 of P.L. 110-142, P.L. 110-166, sections 3 (b) and 11 (b),
8(e), and (g) of P.L. 110-172, P.L. 110-185, P.L. 110-234, section 301 of P.L. 110-245,
9P.L. 110-246, except sections 4, 15312, 15313, 15314, 15316, and 15342 of P.L.
10110-246, sections 3071, 3081, and 3082 of P.L. 110-289, section 9 (e) of P.L. 110-317,
11P.L. 110-343, except sections 116, 208, 211, and 301 of division B and sections 313
12and 504 of division C of P.L. 110-343, P.L. 111-5, except sections 1261, 1262, 1401,
131402, 1521, 1522, 1531, and 1541 of division B of P.L. 111-5, section 201 of P.L.
14111-147, P.L. 111-148, except sections 1322, 1515, 9003, 9021, 9022, 10108, 10908,
15and 10909 of P.L. 111-148, P.L. 111-152, except section 1407 of P.L. 111-152, P.L.
16111-203, except section 1601 of P.L. 111-203, P.L. 111-226, except sections 215 and
17217 of P.L. 111-226, P.L. 111-240, except sections 2014, 2043, 2111, 2112, and 2113
18of P.L. 111-240, and P.L. 111-312, and as amended by section 902 of P.L. 112-240 and
19by P.L. 113-168
, and as indirectly affected in the provisions applicable to this
20subchapter by P.L. 99-514, excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2),
21821 (b) (2), and 823 (c) (2) of P.L. 99-514, P.L. 100-203, P.L. 100-647, excluding
22section 1008 (g) (5) of P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L.
23101-239, P.L. 101-508, P.L. 102-227, excluding sections 103, 104, and 110 of P.L.
24102-227, P.L. 102-318, P.L. 102-486, P.L. 103-66, excluding sections 13113, 13150
25(d), 13171 (d), 13174, and 13203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L.

1103-465, P.L. 104-7, P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f),
21311, and 1605 (d) of P.L. 104-188, P.L. 104-191, P.L. 104-193, P.L. 105-33, P.L.
3105-34, P.L. 105-178, P.L. 105-206, P.L. 105-277, P.L. 106-36, P.L. 106-170, P.L.
4106-230, P.L. 106-554, excluding sections 162 and 165 of P.L. 106-554, P.L. 107-15,
5P.L. 107-16, excluding section 431 of P.L. 107-16, P.L. 107-22, P.L. 107-116, P.L.
6107-134, P.L. 107-147, excluding sections 101 and 301 (a) of P.L. 107-147, P.L.
7107-181, P.L. 107-210, P.L. 107-276, P.L. 107-358, P.L. 108-27, excluding sections
8106, 201, and 202 of P.L. 108-27, P.L. 108-121, P.L. 108-173, excluding section 1201
9of P.L. 108-173, P.L. 108-203, P.L. 108-218, P.L. 108-311, excluding sections 306,
10308, 316, 401, and 403 (a) of P.L. 108-311, P.L. 108-357, excluding sections 101, 102,
11201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of P.L. 108-357, P.L. 108-375,
12P.L. 108-476, P.L. 109-7, P.L. 109-58, excluding sections 1305, 1308, 1309, 1310,
131323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of P.L. 109-58, P.L. 109-59,
14excluding section 11146 of P.L. 109-59, P.L. 109-73, excluding section 301 of P.L.
15109-73, P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section
161400S (a), 402 (e), 403 (e), (j), and (q), and 405 of P.L. 109-135, P.L. 109-151, P.L.
17109-222, excluding sections 101, 207, 503, and 513 of P.L. 109-222, P.L. 109-227,
18P.L. 109-280, sections 117, 406, 409, 410, 412, 417, 418, 424, and 425 of division A
19and section 403 of division C of P.L. 109-432, sections 8215, 8231, 8232, 8234, and
208236 of P.L. 110-28, P.L. 110-141, P.L. 110-142, excluding sections 2, 3, and 5 of P.L.
21110-142, P.L. 110-172, excluding sections 3 (b) and 11 (b), (e), and (g) of P.L. 110-172,
22P.L. 110-245, excluding section 301 of P.L. 110-245, sections 4, 15312, 15313, 15314,
2315316, and 15342 of P.L. 110-246, P.L. 110-289, excluding sections 3071, 3081, and
243082 of P.L. 110-289, P.L. 110-317, excluding section 9 (e) of P.L. 110-317, sections
25116, 208, 211, and 301 of division B and sections 313 and 504 of division C of P.L.

1110-343, P.L. 110-351, P.L. 110-458, sections 1261, 1262, 1401, 1402, 1521, 1522,
21531, and 1541 of division B of P.L. 111-5, P.L. 111-92, P.L. 111-147, excluding
3section 201 of P.L. 111-147, sections 1322, 1515, 9003, 9021, 9022, 10108, 10908, and
410909 of P.L. 111-148, section 1407 of P.L. 111-152, P.L. 111-192, section 1601 of P.L.
5111-203, sections 215 and 217 of P.L. 111-226, sections 2014, 2043, 2111, 2112, and
62113 of P.L. 111-240, P.L. 111-325, and section 902 of P.L. 112-240, and P.L. 113-168,
7except that section 1366 (f) (relating to pass-through of items to shareholders) is
8modified by substituting the tax under s. 71.35 for the taxes under sections 1374 and
91375. The Internal Revenue Code applies for Wisconsin purposes at the same time
10as for federal purposes, except that changes made by section 209 of P.L. 109-222,
11sections 117, 406, 409, 410, 412, 417, 418, 424, and 425 of division A and section 403
12of division C of P.L. 109-432, sections 8215, 8231, 8232, 8234, and 8236 of P.L.
13110-28, P.L. 110-141, P.L. 110-142, excluding sections 2, 3, and 5 of P.L. 110-142,
14P.L. 110-172, excluding sections 3 (b) and 11 (b), (e), and (g) of P.L. 110-172, sections
15110 and 113 of P.L. 110-245, sections 15312, 15313, 15314, and 15342 of P.L. 110-246,
16sections 3031, 3032, 3033, 3041, 3051, 3052, 3061, and 3092 of P.L. 110-289, P.L.
17110-317, excluding section 9 (e) of P.L. 110-317, sections 116, 208, and 211 of division
18B and section 504 of division C of P.L. 110-343, section 14 of P.L. 111-92, sections 531,
19532, and 533 of P.L. 111-147, sections 10908 and 10909 of P.L. 111-148, and section
202043 of P.L. 111-240 do not apply for taxable years beginning before January 1, 2011.
21Amendments to the federal Internal Revenue Code enacted after December 31, 2010,
22do not apply to this paragraph with respect to taxable years beginning after
23December 31, 2010, and before January 1, 2013, except that changes to the Internal
24Revenue Code made by section 902 of P.L. 112-240 and by P.L. 113-168, and changes
25that indirectly affect the provisions applicable to this subchapter made by section

1902 of P.L. 112-240 and by P.L. 113-168, apply for Wisconsin purposes at the same
2time as for federal purposes.
SB21,2350 3Section 2350. 71.34 (1g) (i) of the statutes is amended to read:
SB21,965,174 71.34 (1g) (i) "Internal Revenue Code" for tax-option corporations, for taxable
5years that begin after December 31, 2012, and before January 1, 2014, means the
6federal Internal Revenue Code as amended to December 31, 2010, excluding sections
7103, 104, and 110 of P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174, and
813203 (d) of P.L. 103-66, sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of P.L.
9104-188, sections 1, 3, 4, and 5 of P.L. 106-519, sections 162 and 165 of P.L. 106-554,
10section 431 of P.L. 107-16, sections 101 and 301 (a) of P.L. 107-147, sections 106, 201,
11and 202 of P.L. 108-27, section 1201 of P.L. 108-173, sections 306, 308, 316, 401, and
12403 (a) of P.L. 108-311, sections 101, 102, 201, 211, 242, 244, 336, 337, 422, 847, 909,
13and 910 of P.L. 108-357, P.L. 109-1, sections 1305, 1308, 1309, 1310, 1323, 1324,
141325, 1326, 1328, 1329, 1348, and 1351 of P.L. 109-58, section 11146 of P.L. 109-59,
15section 301 of P.L. 109-73, sections 101, 105, 201 (a) as it relates to section 1400S (a),
16402 (e), 403 (e), (j), and (q), and 405 of P.L. 109-135, sections 101, 207, 503, and 513
17of P.L. 109-222, P.L. 109-432, except sections 117, 406, 409, 410, 412, 417, 418, 424,
18and 425 of division A and section 403 of division C of P.L. 109-432, P.L. 110-28, except
19sections 8215, 8231, 8232, 8234, and 8236 of P.L. 110-28, P.L. 110-140, sections 2,
203, and 5 of P.L. 110-142, P.L. 110-166, sections 3 (b) and 11 (b), (e), and (g) of P.L.
21110-172, P.L. 110-185, P.L. 110-234, section 301 of P.L. 110-245, P.L. 110-246,
22except sections 4, 15312, 15313, 15314, 15316, and 15342 of P.L. 110-246, sections
233071, 3081, and 3082 of P.L. 110-289, section 9 (e) of P.L. 110-317, P.L. 110-343,
24except sections 116, 208, 211, and 301 of division B and sections 313 and 504 of
25division C of P.L. 110-343, P.L. 111-5, except sections 1261, 1262, 1401, 1402, 1521,

11522, 1531, and 1541 of division B of P.L. 111-5, section 201 of P.L. 111-147, P.L.
2111-148, except sections 1322, 1515, 9003, 9004, 9005, 9012, 9013, 9014, 9016, 9021,
39022, 10108, 10902, 10908, and 10909 of P.L. 111-148, P.L. 111-152, except sections
41403 and 1407 of P.L. 111-152, P.L. 111-203, except section 1601 of P.L. 111-203, P.L.
5111-226, except sections 215 and 217 of P.L. 111-226, P.L. 111-240, except sections
62014, 2043, 2111, 2112, and 2113 of P.L. 111-240, P.L. 111-312, and as amended by
7section 1858 of P.L. 112-10, section 1108 of P.L. 112-95, sections 40211, 40241, 40242,
8and 100121 of P.L. 112-141, and sections 101 and 902 of P.L. 112-240, and P.L.
9113-168,
and as indirectly affected in the provisions applicable to this subchapter by
10P.L. 99-514, excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2), and
11823 (c) (2) of P.L. 99-514, P.L. 100-203, P.L. 100-647, excluding section 1008 (g) (5)
12of P.L. 100-647, P.L. 101-73, P.L. 101-140, P.L. 101-179, P.L. 101-239, P.L. 101-508,
13P.L. 102-227, excluding sections 103, 104, and 110 of P.L. 102-227, P.L. 102-318, P.L.
14102-486, P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, and
1513203 (d) of P.L. 103-66, P.L. 103-296, P.L. 103-337, P.L. 103-465, P.L. 104-7, P.L.
16104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of P.L.
17104-188, P.L. 104-191, P.L. 104-193, P.L. 105-33, P.L. 105-34, P.L. 105-178, P.L.
18105-206, P.L. 105-277, P.L. 106-36, P.L. 106-170, P.L. 106-230, P.L. 106-554,
19excluding sections 162 and 165 of P.L. 106-554, P.L. 106-573, P.L. 107-15, P.L.
20107-16, excluding section 431 of P.L. 107-16, P.L. 107-22, P.L. 107-116, P.L.
21107-134, P.L. 107-147, excluding sections 101 and 301 (a) of P.L. 107-147, P.L.
22107-181, P.L. 107-210, P.L. 107-276, P.L. 107-358, P.L. 108-27, excluding sections
23106, 201, and 202 of P.L. 108-27, P.L. 108-121, P.L. 108-173, excluding section 1201
24of P.L. 108-173, P.L. 108-203, P.L. 108-218, P.L. 108-311, excluding sections 306,
25308, 316, 401, and 403 (a) of P.L. 108-311, P.L. 108-357, excluding sections 101, 102,

1201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of P.L. 108-357, P.L. 108-375,
2P.L. 108-476, P.L. 109-7, P.L. 109-58, excluding sections 1305, 1308, 1309, 1310,
31323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of P.L. 109-58, P.L. 109-59,
4excluding section 11146 of P.L. 109-59, P.L. 109-73, excluding section 301 of P.L.
5109-73, P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section
61400S (a), 402 (e), 403 (e), (j), and (q), and 405 of P.L. 109-135, P.L. 109-151, P.L.
7109-222, excluding sections 101, 207, 503, and 513 of P.L. 109-222, P.L. 109-227,
8P.L. 109-280, sections 117, 406, 409, 410, 412, 417, 418, 424, and 425 of division A
9and section 403 of division C of P.L. 109-432, sections 8215, 8231, 8232, 8234, and
108236 of P.L. 110-28, P.L. 110-141, P.L. 110-142, excluding sections 2, 3, and 5 of P.L.
11110-142, P.L. 110-172, excluding sections 3 (b) and 11 (b), (e), and (g) of P.L. 110-172,
12P.L. 110-245, excluding section 301 of P.L. 110-245, sections 4, 15312, 15313, 15314,
1315316, and 15342 of P.L. 110-246, P.L. 110-289, excluding sections 3071, 3081, and
143082 of P.L. 110-289, P.L. 110-317, excluding section 9 (e) of P.L. 110-317, sections
15116, 208, 211, and 301 of division B and sections 313 and 504 of division C of P.L.
16110-343, P.L. 110-351, P.L. 110-458, sections 1261, 1262, 1401, 1402, 1521, 1522,
171531, and 1541 of division B of P.L. 111-5, P.L. 111-92, P.L. 111-147, excluding
18section 201 of P.L. 111-147, sections 1322, 1515, 9003, 9004, 9005, 9012, 9013, 9014,
199016, 9021, 9022, 10108, 10902, 10908, and 10909 of P.L. 111-148, sections 1403 and
201407 of P.L. 111-152, P.L. 111-192, section 1601 of P.L. 111-203, sections 215 and 217
21of P.L. 111-226, sections 2014, 2043, 2111, 2112, and 2113 of P.L. 111-240, P.L.
22111-325, section 1858 of P.L. 112-10, section 1108 of P.L. 112-95, sections 40211,
2340241, 40242, and 100121 of P.L. 112-141, and sections 101 and 902 of P.L. 112-240,
24and P.L. 113-168, except that section 1366 (f) (relating to pass-through of items to
25shareholders) is modified by substituting the tax under s. 71.35 for the taxes under

1sections 1374 and 1375. The Internal Revenue Code applies for Wisconsin purposes
2at the same time as for federal purposes, except that changes made by P.L. 106-573,
3sections 9004, 9005, 9012, 9013, 9014, 9016, and 10902 of P.L. 111-148, sections 1403
4and 1407 of P.L. 111-152, section 1858 of P.L. 112-10, section 1108 of P.L. 112-95, and
5sections 40211, 40241, 40242, and 100121 of P.L. 112-141 do not apply for taxable
6years beginning before January 1, 2013. Amendments to the federal Internal
7Revenue Code enacted after December 31, 2010, do not apply to this paragraph with
8respect to taxable years beginning after December 31, 2010, except that changes to
9the Internal Revenue Code made by section 1858 of P.L. 112-10, section 1108 of P.L.
10112-95, and sections 40211, 40241, 40242, and 100121 of P.L. 112-141, and changes
11that indirectly affect the provisions applicable to this subchapter made by section
121858 of P.L. 112-10, section 1108 of P.L. 112-95, and sections 40211, 40241, 40242,
13and 100121 of P.L. 112-141, do not apply for taxable years beginning before January
141, 2013, and changes to the Internal Revenue Code made by sections 101 and 902 of
15P.L. 112-240 and by P.L. 113-168, and changes that indirectly affect the provisions
16applicable to this subchapter made by sections 101 and 902 of P.L. 112-240 and by
17P.L. 113-168
, apply for Wisconsin purposes at the same time as for federal purposes.
SB21,2351 18Section 2351. 71.34 (1g) (j) of the statutes is created to read:
SB21,965,2219 71.34 (1g) (j) 1. For taxable years beginning after December 31, 2013, for tax
20option corporations, "Internal Revenue Code" means the federal Internal Revenue
21Code as amended to December 31, 2013, except as provided in subds. 2., 3., and 5. and
22subject to subd. 4.
SB21,966,1023 2. For purposes of this paragraph, "Internal Revenue Code" does not include
24the following provisions of federal public laws for taxable years beginning after
25December 31, 2013: section 13113 of P.L 103-66; sections 1, 3, 4, and 5 of P.L.

1106-519; sections 101, 102, and 422 of P.L 108-357; sections 1310 and 1351 of P.L.
2109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of
3P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L.
4110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; sections
515303 and 15351 of P.L. 110-246; section 302 of division A, section 401 of division B,
6and sections 312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections
71232, 1241, 1251, 1501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213,
8214, and 216 of P.L. 111-226; sections 2011 and 2122 of P.L. 111-240' sections 753,
9754, and 760 of P.L. 111-312; section 1106 of P.L. 112-95; and sections 104, 318, 322,
10323, 324, 326, 327, and 411 of P.L. 112-240.
SB21,966,1411 3. For purposes of this paragraph, "Internal Revenue Code" does not include
12amendments to the federal Internal Revenue Code enacted after December 31, 2013,
13except that "Internal Revenue Code" includes the provisions of the following federal
14public laws:
SB21,966,2018 4. For purposes of this paragraph, the provisions of federal public laws that
19directly or indirectly affect the Internal Revenue Code, as defined in this paragraph,
20apply for Wisconsin purposes at the same time as for federal purposes.
SB21,966,24215. For purposes of this paragraph, section 1366 (f) of the Internal Revenue Code
22(relating to pass-through of items to shareholders) is modified by substituting the
23tax under s. 71.35 for the taxes under sections 1374 and 1375 of the Internal Revenue
24Code.
SB21,2352 25Section 2352. 71.34 (1k) (g) of the statutes is amended to read:
SB21,967,4
171.34 (1k) (g) An addition shall be made for credits computed by a tax-option
2corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
3(3), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (3y), (4), (5), (5e), (5f), (5g),
4(5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (8r) and passed through to shareholders.
SB21,2353 5Section 2353. 71.36 (1m) (b) 2. of the statutes is amended to read:
SB21,967,166 71.36 (1m) (b) 2. Interest on obligations issued under s. 66.0304 by a
7commission if the bonds or notes are used to fund multifamily affordable housing
8projects or elderly housing projects in this state, and the Forward Wisconsin Housing
9and Economic
Development Authority has the authority to issue its bonds or notes
10for the project being funded, or if the bonds or notes are used by a health facility, as
11defined in s. 231.01 (5), to fund the acquisition of information technology hardware
12or software, in this state, and the Wisconsin Health and Educational Facilities
13Authority has the authority to issue its bonds or notes for the project being funded,
14or if the bonds or notes are issued to fund a redevelopment project in this state or a
15housing project in this state, and the authority exists for bonds or notes to be issued
16by an entity described under s. 66.1201, 66.1333, or 66.1335.
SB21,2354 17Section 2354. 71.36 (1m) (b) 5. of the statutes is amended to read:
SB21,967,2018 71.36 (1m) (b) 5. Interest on obligations issued under s. 234.65, 2013 stats., to
19fund an economic development loan to finance construction, renovation or
20development of property that would be exempt under s. 70.11 (36).
SB21,2355 21Section 2355. 71.36 (1m) (b) 7. of the statutes is created to read:
SB21,967,2222 71.36 (1m) (b) 7. Interest on obligations issued under s. 16.527 (3) (d).
SB21,2356 23Section 2356. 71.36 (1m) (b) 8. of the statutes is created to read:
SB21,968,3
171.36 (1m) (b) 8. Interest on obligations issued by a local unit under one of the
2provisions specified in s. 229.863 (3) to assist a local sports and entertainment
3district created under subch. VI of ch. 229.
SB21,2357 4Section 2357. 71.42 (2) (a) of the statutes is repealed.
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