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2021 - 2022 LEGISLATURE
November 11, 2021 - Introduced by Senators Roth, Wanggaard, Ballweg, Bernier,
Darling and Jacque, cosponsored by Representatives Wittke, Katsma,
Kuglitsch, Macco, Zimmerman, Allen, Armstrong, Brandtjen, Dittrich,
Doyle, Duchow, Edming, Horlacher, Kurtz, Moses, Mursau, Novak,
Oldenburg, Penterman, Rozar, Schraa, Snodgrass, Swearingen,
Thiesfeldt, Vruwink, Wichgers, Spreitzer, Knodl, Hong and Subeck.
Referred to Committee on Financial Institutions and Revenue.
SB690,1,3 1An Act to amend 71.26 (3) (L); and to create 71.05 (1) (hp), 71.26 (3) (ag) 4.,
271.34 (1k) (ai), 71.45 (1) (dn) and 71.45 (2) (a) 24. of the statutes; relating to:
3an income and franchise tax exemption for restaurant revitalization grants.
Analysis by the Legislative Reference Bureau
This bill creates an income and franchise tax exemption for income received in
the form of a grant from the Restaurant Revitalization Fund established by the
federal American Rescue Plan Act of 2021. Current law provides similar exemptions
for income received in the form of allocations issued by the state with moneys
received from the federal Coronavirus Relief Fund and used for a number of
purposes, including broadband expansion, privately owned movie theater grants,
music and performance venue grants, and lodging industry grants.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB690,1 4Section 1. 71.05 (1) (hp) of the statutes is created to read:
SB690,2,5
171.05 (1) (hp) Grants from the federal restaurant revitalization fund. Income
2received in the form of a grant from the restaurant revitalization fund pursuant to
3the federal American Rescue Plan Act of 2021, P.L. 117-2. Amounts otherwise
4deductible under this chapter that are paid directly or indirectly with the grant
5money are deductible.
SB690,2 6Section 2. 71.26 (3) (ag) 4. of the statutes is created to read:
SB690,2,107 71.26 (3) (ag) 4. Income received in the form of a grant from the restaurant
8revitalization fund pursuant to the federal American Rescue Plan Act of 2021, P.L.
9117-2. Amounts otherwise deductible under this chapter that are paid directly or
10indirectly with the grant money are deductible.
SB690,3 11Section 3. 71.26 (3) (L) of the statutes, as affected by 2021 Wisconsin Act 1,
12is amended to read:
SB690,3,513 71.26 (3) (L) Section 265 is excluded and replaced by the rule that any amount
14otherwise deductible under this chapter that is directly or indirectly related to
15income wholly exempt from taxes imposed by this chapter or to losses from the sale
16or other disposition of assets the gain from which would be exempt under this
17paragraph if the assets were sold or otherwise disposed of at a gain is not deductible.
18In this paragraph, “wholly exempt income", for corporations subject to franchise or
19income taxes, includes amounts received from affiliated or subsidiary corporations
20for interest, dividends or capital gains that, because of the degree of common
21ownership, control or management between the payor and payee, are not subject to
22taxes under this chapter. In this paragraph, “wholly exempt income", for
23corporations subject to income taxation under this chapter, also includes interest on
24obligations of the United States. In this paragraph, “wholly exempt income" does not
25include income excludable, not recognized, exempt or deductible under specific

1provisions of this chapter. If any expense or amount otherwise deductible is
2indirectly related both to wholly exempt income or loss and to other income or loss,
3a reasonable proportion of the expense or amount shall be allocated to each type of
4income or loss, in light of all the facts and circumstances. This paragraph does not
5apply to the exclusion under par. (ag) 2. or, 3., or 4.
SB690,4 6Section 4. 71.34 (1k) (ai) of the statutes is created to read:
SB690,3,117 71.34 (1k) (ai) Section 61 of the Internal Revenue Code is modified so that
8income received in the form of a grant from the restaurant revitalization fund,
9pursuant to the federal American Rescue Plan Act of 2021, P.L. 117-2, is not taxable
10income. Amounts otherwise deductible under this chapter that are paid directly or
11indirectly with the grant money are deductible.
SB690,5 12Section 5. 71.45 (1) (dn) of the statutes is created to read:
SB690,3,1613 71.45 (1) (dn) Income received in the form of a grant from the restaurant
14revitalization fund pursuant to the federal American Rescue Plan Act of 2021, P.L.
15117-2. Amounts otherwise deductible under this chapter that are paid directly or
16indirectly with the grant money are deductible.
SB690,6 17Section 6. 71.45 (2) (a) 24. of the statutes is created to read:
SB690,3,2218 71.45 (2) (a) 24. By subtracting from federal taxable income, to the extent
19included in federal taxable income, income received in the form of a grant from the
20restaurant revitalization fund pursuant to the federal American Rescue Plan Act of
212021, P.L. 117-2. Amounts otherwise deductible under this chapter that are paid
22directly or indirectly with the grant money are deductible.
SB690,7 23Section 7. Initial applicability.
SB690,3,2424 (1) This act first applies to taxable years beginning after December 31, 2020.
SB690,3,2525 (End)
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