71.25(14)(b)
(b) Before the department of revenue grants permission to any corporation to use an alternative method of allocation under
par. (a), the department of revenue shall promulgate rules that specify in more detail the circumstances in which that authority may be granted and the kinds of alternative methods that the department may authorize.
71.25(14)(c)
(c) At least 14 days before giving final approval to an alternative method of apportionment under
par. (a), the department of revenue shall submit the proposed alternative method of apportionment to the cochairpersons of the joint committee for review of administrative rules, together with a description of the proposed alternative and the reasons for the proposed alternative. If, within 14 days after receipt of the proposed alternative method, the cochairpersons of the joint committee for review of administrative rules do not notify the department of revenue that the proposed alternative must be promulgated as an administrative rule in order to be used, the department of revenue may give final approval to the proposed method without promulgating an administrative rule. If the cochairpersons of the joint committee for review of administrative rules notify the department of revenue within 14 days after receipt of the proposed alternative that the proposed alternative must be promulgated as an administrative rule, the proposed alternative may not be used until it is promulgated as an administrative rule under
ch. 227.
71.25 Annotation
Under sub. (6), it is within the department's discretion to decide whether to permit a multistate business to deviate from the apportionment method. Nelson Bros. v. DOR,
152 Wis. 2d 746,
449 N.W.2d 328 (Ct. App. 1989.)
71.25 Annotation
Subjecting an entity's income to apportionment when the entity's operations constitute a "unitary business" under sub. (6) is discussed. Chilstrom Erecting Corp. v. DOR,
174 Wis. 2d 517,
497 N.W.2d 785 (Ct. App. 1993).
71.25 Annotation
A corporation's investment income that served an "operational" function and was not unrelated to corporate functions within the state was subject to apportionment. Port Affiliates, Inc. v. DOR,
190 Wis. 2d 271,
526 N.W.2d 806 (Ct. App. 1994).
71.26
71.26
Income computation. 71.26(1)(1)
Exempt and excludable income. There shall be exempt from taxation under this subchapter income as follows:
71.26(1)(a)
(a)
Certain corporations. Income of corporations organized under
ch. 185, except income of a cooperative sickness care association organized under
s. 185.981, or of a service insurance corporation organized under
ch. 613, that is derived from a health maintenance organization as defined in
s. 609.01 (2) or a limited service health organization as defined in
s. 609.01 (3), or operating under
subch. I of ch. 616 which are bona fide cooperatives operated without pecuniary profit to any shareholder or member, or operated on a cooperative plan pursuant to which they determine and distribute their proceeds in substantial compliance with
s. 185.45, and the income, except the unrelated business taxable income as defined in section
512 of the internal revenue code and except income that is derived from a health maintenance organization as defined in
s. 609.01 (2) or a limited service health organization as defined in
s. 609.01 (3), of all religious, scientific, educational, benevolent or other corporations or associations of individuals not organized or conducted for pecuniary profit. This paragraph does not apply to the income of savings banks, mutual loan corporations or savings and loan associations. This paragraph does not apply to income that is realized from the sale of or purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in this state. This paragraph applies to the income of credit unions except to the income of any credit union that is derived from public deposits for any taxable year in which the credit union is approved as a public depository under
ch. 34 and acts as a depository of state or local funds under
s. 186.113 (20). For purposes of this paragraph, the income of a credit union that is derived from public deposits is the product of the credit union's gross annual income for the taxable year multiplied by a fraction, the numerator of which is the average monthly balance of public deposits in the credit union during the taxable year, and the denominator of which is the average monthly balance of all deposits in the credit union during the taxable year.
71.26(1)(b)
(b)
Political units. Income received by the United States, the state and all counties, cities, villages, towns, school districts, technical college districts, joint local water authorities created under
s. 66.0823, family care districts under
s. 46.2895 or other political units of this state.
71.26(1)(be)
(be)
Certain authorities. Income of the University of Wisconsin Hospitals and Clinics Authority.
71.26(1)(bm)
(bm)
Certain local districts. Income of a local exposition district created under
subch. II of ch. 229, a local professional baseball park district created under
subch. III of ch. 229 or a local professional football stadium district created under
subch. IV of ch. 229 or a local cultural arts district created under
subch. V of ch. 229.
71.26 Note
NOTE: Par. (bm) is shown as affected by two acts of the 1999 legislature and as merged by the revisor under s. 13.93 (2) (c).
71.26(1)(c)
(c)
Cooperative associations or corporations. Income of cooperative associations or corporations engaged in marketing farm products for producers, which turn back to such producers the net proceeds of the sales of their products; provided that such corporations or associations have at least 25 stockholders or members delivering such products and that their dividends have not, during the preceding 5 years, exceeded 8% per year; also income of associations and corporations engaged solely in processing and marketing farm products for one such cooperative association or corporation and which do not charge for such marketing and processing more than a sufficient amount to pay the cost of such marketing and processing and 8% dividends on their capital stock and to add 5% to their surplus.
71.26(1)(d)
(d) Bank in liquidation. Income of any bank placed in the hands of the division of banking for liquidation under
s. 220.08, if the tax levied, assessed or collected under this chapter on account of such bank diminishes the assets thereof so that full payment of all depositors cannot be made. Whenever the division of banking certifies to the department of revenue that the tax or any part thereof levied and assessed under this chapter against any such bank will so diminish the assets thereof that full payment of all depositors cannot be made, the department of revenue shall cancel and abate such tax or part thereof, together with any penalty thereon. This paragraph shall apply to unpaid taxes which were levied and assessed subsequent to the time the bank was taken over by the division of banking.
71.26(1)(e)
(e) Menominee Indian tribe; distribution of assets. No distribution of assets from the United States to the members of the Menominee Indian tribe as defined in
s. 49.385 or their lawful distributees, or to any corporation, or organization, created by the tribe or at its direction pursuant to section 8 of
P.L. 83-399, as amended, and no issuance of stocks, bonds, certificates of indebtedness, voting trust certificates or other securities by any such corporation or organization, or voting trust, to such members of the tribe or their lawful distributees shall be subject to income or franchise taxes under this chapter; provided that so much of any cash distribution made under said
P.L. 83-399 as consists of a share of any interest earned on funds deposited in the treasury of the United States pursuant to the supplemental appropriation act, 1952, (65 Stat. 736, 754) shall not by virtue of this paragraph be exempt from the individual income tax of this state in the hands of the recipients for the year in which paid. For the purpose of ascertaining the gain or loss resulting from the sale or other disposition of such assets and stocks, bonds, certificates of indebtedness and other securities under this chapter, the fair market value of such property, on termination date as defined in s.
70.057 (1), 1967 stats., shall be the basis for determining the amount of such gain or loss.
71.26(1)(f)
(f)
Real estate mortgage investment conduits. The income of a real estate mortgage investment conduit that is exempt for federal income tax purposes under section
860A of the internal revenue code.
71.26(1m)
(1m) Exemption from the income tax. The interest and income from the following obligations are exempt from the tax imposed under
s. 71.23 (1):
71.26(1m)(e)
(e) Those issued under
s. 234.65 to fund an economic development loan to finance construction, renovation or development of property that would be exempt under
s. 70.11 (36).
71.26(1m)(g)
(g) Those issued under
s. 66.0621 by a local professional baseball park district or a local professional football stadium district or a local cultural arts district.
71.26 Note
NOTE: Par. (g) is shown as affected by two acts of the 1999 legislature and as merged by the revisor under s. 13.93 (2) (c).
71.26(2)(a)(a)
Corporations in general. The "net income" of a corporation means the gross income as computed under the internal revenue code as modified under
sub. (3) minus the amount of recapture under
s. 71.28 (1di) plus the amount of credit computed under
s. 71.28 (1) and
(3) to
(5) plus the amount of the credit computed under
s. 71.28 (1dd),
(1de),
(1di),
(1dj),
(1dL),
(1ds) and
(1dx) and not passed through by a partnership, limited liability company or tax-option corporation that has added that amount to the partnership's, limited liability company's or tax-option corporation's income under
s. 71.21 (4) or
71.34 (1) (g) plus the amount of losses from the sale or other disposition of assets the gain from which would be wholly exempt income, as defined in
sub. (3) (L), if the assets were sold or otherwise disposed of at a gain and minus deductions, as computed under the internal revenue code as modified under
sub. (3), plus or minus, as appropriate, an amount equal to the difference between the federal basis and Wisconsin basis of any asset sold, exchanged, abandoned or otherwise disposed of in a taxable transaction during the taxable year, except as provided in
par. (b) and
s. 71.45 (2) and
(5).
71.26(2)(b)
(b)
Regulated investment companies, real estate mortgage investment conduits, real estate investment trusts and financial asset securitization investment trusts. 71.26(2)(b)7.7. For taxable years that begin after December 31, 1991, and before January 1, 1993, for a corporation, conduit or common law trust which qualifies as a regulated investment company, real estate mortgage investment conduit or real estate investment trust under the Internal Revenue Code as amended to December 31, 1991, excluding sections 103, 104 and 110 of
P.L. 102-227, and as amended by
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13101 (a) and (c) 1, 13171 and 13174 of
P.L. 103-66,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, 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 13101 (a) and (c) 1, 13171 and 13174 of
P.L. 103-66,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, "net income" means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income or federal real estate investment trust taxable income of the corporation, conduit or trust as determined under the Internal Revenue Code as amended to December 31, 1991, excluding sections 103, 104 and 110 of
P.L. 102-227, and as amended by
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13101 (a) and (c) 1, 13171 and 13174 of
P.L. 103-66,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277 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 13101 (a) and (c) 1, 13171 and 13174 of
P.L. 103-66,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, 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, 1991, excluding sections 103, 104 and 110 of
P.L. 102-227, and as amended by
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13101 (a) and (c) 1, 13171 and 13174 of
P.L. 103-66,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, 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 13101 (a) and (c) 1, 13171 and 13174 of
P.L. 103-66,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277 applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the Internal Revenue Code enacted after December 31, 1991, do not apply to this subdivision with respect to taxable years that begin after December 31, 1991, and before January 1, 1993, except that changes to the Internal Revenue Code made by
P.L. 102-318,
P.L. 102-486,
P.L. 103-66,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 102-318,
P.L. 102-486,
P.L. 103-66,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277 apply for Wisconsin purposes at the same time as for federal purposes.
71.26(2)(b)8.
8. For taxable years that begin after December 31, 1992, and before January 1, 1994, for a corporation, conduit or common law trust which qualifies as a regulated investment company, real estate mortgage investment conduit or real estate investment trust under the Internal Revenue Code as amended to December 31, 1992, excluding sections 103, 104 and 110 of
P.L. 102-227, and as amended by
P.L. 103-66, excluding sections 13101 (a) and (c) 1., 13113, 13150, 13171, 13174 and 13203 of
P.L. 103-66,
P.L. 103-465,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, 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 13101 (a) and (c) 1, 13113, 13150, 13171, 13174 and 13203 of
P.L. 103-66,
P.L. 103-465,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, "net income" means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income or federal real estate investment trust taxable income of the corporation, conduit or trust as determined under the Internal Revenue Code as amended to December 31, 1992, excluding sections 103, 104 and 110 of
P.L. 102-227, and as amended by
P.L. 103-66, excluding sections 13101 (a) and (c) 1, 13113, 13150, 13171, 13174 and 13203 of
P.L. 103-66,
P.L. 103-465,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, 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 13101 (a) and (c) 1., 13113, 13150, 13171, 13174 and 13203 of
P.L. 103-66,
P.L. 103-465,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, 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, 1992, excluding sections 103, 104 and 110 of
P.L. 102-227, and as amended by
P.L. 103-66, excluding sections 13101 (a) and (c) 1, 13113, 13150, 13171, 13174 and 13203 of
P.L. 103-66,
P.L. 103-465,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, 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 13101 (a) and (c) 1, 13113, 13150, 13171, 13174 and 13203 of
P.L. 103-66,
P.L. 103-465,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the Internal Revenue Code enacted after December 31, 1992, do not apply to this subdivision with respect to taxable years that begin after December 31, 1992, and before January 1, 1994, except that changes to the Internal Revenue Code made by
P.L. 103-66,
P.L. 103-465,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 103-66,
P.L. 103-465,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, apply for Wisconsin purposes at the same time as for federal purposes.
71.26(2)(b)9.
9. For taxable years that begin after December 31, 1993, and before January 1, 1995, for a corporation, conduit or common law trust which qualifies as a regulated investment company, real estate mortgage investment conduit or real estate investment trust under the Internal Revenue Code as amended to December 31, 1993, excluding sections 103, 104 and 110 of
P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215 of
P.L. 103-66, and as amended by
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7, excluding section 1 of
P.L. 104-7,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, 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, 13203 (d) and 13215 of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7, excluding section 1 of
P.L. 104-7,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, "net income" means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income or federal real estate investment trust taxable income of the corporation, conduit or trust as determined under the Internal Revenue Code as amended to December 31, 1993, excluding sections 103, 104 and 110 of
P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215 of
P.L. 103-66, and as amended by
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7, excluding section 1 of
P.L. 104-7,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, 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, 13203 (d) and 13215 of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7, excluding section 1 of
P.L. 104-7,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, 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, 1993, excluding sections 103, 104 and 110 of
P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174, 13203 (d) and 13215 of
P.L. 103-66, and as amended by
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7, excluding section 1 of
P.L. 104-7,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, 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, 13203 (d) and 13215 of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7, excluding section 1 of
P.L. 104-7,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the Internal Revenue Code enacted after December 31, 1993, do not apply to this subdivision with respect to taxable years that begin after December 31, 1993, and before January 1, 1995, except that changes to the Internal Revenue Code made by
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7, excluding section 1 of
P.L. 104-7,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7, excluding section 1 of
P.L. 104-7,
P.L. 104-188, excluding section 1311 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, apply for Wisconsin purposes at the same time as for federal purposes.
71.26(2)(b)10.
10. For taxable years that begin after December 31, 1994, and before January 1, 1996, for a corporation, conduit or common law trust which qualifies as a regulated investment company, real estate mortgage investment conduit or real estate investment trust under the Internal Revenue Code as amended to December 31, 1994, excluding sections 103, 104 and 110 of
P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66, and as amended by
P.L. 104-7,
P.L. 104-188, excluding sections 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, 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 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, "net income" means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income or federal real estate investment trust taxable income of the corporation, conduit or trust as determined under the Internal Revenue Code as amended to December 31, 1994, excluding sections 103, 104 and 110 of
P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66, and as amended by
P.L. 104-7,
P.L. 104-188, excluding sections 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, 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 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, 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, 1994, excluding sections 103, 104 and 110 of
P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66, and as amended by
P.L. 104-7,
P.L. 104-188, excluding sections 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, 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 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the Internal Revenue Code enacted after December 31, 1994, do not apply to this subdivision with respect to taxable years that begin after December 31, 1994, and before January 1, 1996, except that changes made by
P.L. 104-7,
P.L. 104-188, excluding sections 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 104-7,
P.L. 104-188, excluding sections 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277 apply for Wisconsin purposes at the same time as for federal purposes.
71.26(2)(b)11.
11. For taxable years that begin after December 31, 1995, and before January 1, 1997, for a corporation, conduit or common law trust which qualifies as a regulated investment company, real estate mortgage investment conduit or real estate investment trust under the Internal Revenue Code as amended to December 31, 1995, excluding sections 103, 104 and 110 of
P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66, and as amended by
P.L. 104-188, excluding sections 1123, 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, 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, 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, "net income" means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income or federal real estate investment trust taxable income of the corporation, conduit or trust as determined under the Internal Revenue Code as amended to December 31, 1995, excluding sections 103, 104 and 110 of
P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66, and as amended by
P.L. 104-188, excluding sections 1123, 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, 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, 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, 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, 1995, excluding sections 103, 104 and 110 of
P.L. 102-227 and sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of
P.L. 103-66, and as amended by
P.L. 104-188, excluding sections 1123, 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, 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, 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the Internal Revenue Code enacted after December 31, 1995, do not apply to this subdivision with respect to taxable years that begin after December 31, 1995, and before January 1, 1997, except that changes to the Internal Revenue Code made by
P.L. 104-188, excluding sections 1123, 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 104-188, excluding sections 1123, 1202, 1204, 1311 and 1605 of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-206 and
P.L. 105-277, apply for Wisconsin purposes at the same time as for federal purposes.
71.26(2)(b)12.
12. For taxable years that begin after December 31, 1996, and before January 1, 1998, 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, 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
P.L. 105-33,
P.L. 105-34,
P.L. 105-206,
P.L. 105-277 and
P.L. 106-36, 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,
P.L. 105-33,
P.L. 105-34,
P.L. 105-206,
P.L. 105-277 and
P.L. 106-36, "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, 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
P.L. 105-33,
P.L. 105-34,
P.L. 105-206,
P.L. 105-277 and
P.L. 106-36, 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,
P.L. 105-33,
P.L. 105-34,
P.L. 105-206,
P.L. 105-277 and
P.L. 106-36, 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, 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
P.L. 105-33,
P.L. 105-34,
P.L. 105-206,
P.L. 105-277 and
P.L. 106-36, 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,
P.L. 105-33,
P.L. 105-34,
P.L. 105-206,
P.L. 105-277 and
P.L. 106-36, applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the Internal Revenue Code enacted after December 31, 1996, do not apply to this subdivision with respect to taxable years that begin after December 31, 1996, and before January 1, 1998, except that changes to the Internal Revenue Code made by
P.L. 105-33,
P.L. 105-34,
P.L. 105-206,
P.L. 105-277 and
P.L. 106-36 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 105-33,
P.L. 105-34,
P.L. 105-206,
P.L. 105-277 and
P.L. 106-36 apply for Wisconsin purposes at the same time as for federal purposes.
71.26(2)(b)13.
13. For taxable years that begin after December 31, 1997, and before January 1, 1999, 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, 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
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36 and
P.L. 106-170, 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,
P.L. 105-33,
P.L. 105-34,
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36 and
P.L. 106-170, "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, 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
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36 and
P.L. 106-170, 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,
P.L. 105-33,
P.L. 105-34,
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36 and
P.L. 106-170, 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, 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
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36 and
P.L. 106-170, 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,
P.L. 105-33,
P.L. 105-34,
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36 and
P.L. 106-170, applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the Internal Revenue Code enacted after December 31, 1997, do not apply to this subdivision with respect to taxable years that begin after December 31, 1997, and before January 1, 1999, except that changes to the Internal Revenue Code made by
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36 and
P.L. 106-170 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36 and
P.L. 106-170 apply for Wisconsin purposes at the same time as for federal purposes.
71.26(2)(b)14.
14. For taxable years that begin after December 31, 1998, and before January 1, 2000, 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, 1998, 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
P.L. 106-36 and
P.L. 106-170, 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,
P.L. 105-33,
P.L. 105-34,
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36 and
P.L. 106-170, "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, 1998, 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
P.L. 106-36 and
P.L. 106-170, 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,
P.L. 105-33,
P.L. 105-34,
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36 and
P.L. 106-170, 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, 1998, 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
P.L. 106-36 and
P.L. 106-170, 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,
P.L. 105-33,
P.L. 105-34,
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36 and
P.L. 106-170, applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the Internal Revenue Code enacted after December 31, 1998, do not apply to this subdivision with respect to taxable years that begin after December 31, 1998, and before January 1, 2000, except that changes to the Internal Revenue Code made by
P.L. 106-36 and
P.L. 106-170 and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 106-36 and
P.L. 106-170 apply for Wisconsin purposes at the same time as for federal purposes.
71.26(2)(b)15.
15. For taxable years that begin after December 31, 1999, 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, 1999, 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 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,
P.L. 105-33,
P.L. 105-34,
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36 and
P.L. 106-170, "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, 1999, 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 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,
P.L. 105-33,
P.L. 105-34,
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36 and
P.L. 106-170, 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, 1999, 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 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,
P.L. 105-33,
P.L. 105-34,
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36 and
P.L. 106-170, applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the Internal Revenue Code enacted after December 31, 1999, do not apply to this subdivision with respect to taxable years that begin after December 31, 1999.
71.26(3)
(3) Modifications. The income of a corporation shall be computed under the internal revenue code, except a corporation under
sub. (2) (b), as modified in the following ways:
71.26(3)(ag)
(ag) Section 61 (relating to the definition of gross income) is modified to exclude income received by the original policyholder or original certificate holder from the sale of a life insurance policy or certificate, or the sale of the death benefit under a life insurance policy or certificate, under a viatical settlement contract, as defined in
s. 632.68 (1) (d).
71.26(3)(ar)
(ar) Section 78 (relating to treating taxes as dividends) is excluded.
71.26(3)(b)
(b) Section 103 (relating to an exemption for interest) is excluded and replaced, for corporations subject to taxation under
s. 71.23 (1), by the rule that any interest income not included in federal taxable income, except interest under
sub. (1m), is added to federal taxable income and any interest income which is by federal law exempt from taxation by this state is excluded, and replaced, for corporations subject to taxation under
s. 71.23 (2), by the rule that any interest income not included in federal taxable income is added to federal taxable income.
71.26(3)(c)
(c) Section 108 (b) (relating to reduction of tax attributes) is modified so that the net operating loss under
sub. (4), not the federal net operating loss, and Wisconsin credits, not federal credits, are applied, and the reduction rate for a credit carry-over is 7.9%, not 33 1/3%.
71.26(3)(d)
(d) Section 133 (relating to an exclusion for interest) is excluded.
71.26(3)(e)
(e) Section 162 (relating to trade or business expenses) is modified as follows:
71.26(3)(e)1.
1. So that payments for wages, salaries, commissions and bonuses of employees and officers may be deducted only if the name, address and amount paid to each resident of this state to whom compensation of $600 or more has been paid during the taxable year is reported or if the department of revenue is satisfied that failure to report has resulted in no revenue loss to this state.
71.26(3)(e)2.
2. So that payments for rent may be deducted only if the amount paid, together with the names and addresses of the parties to whom rent has been paid, is reported as provided under
s. 71.70 (2).
71.26(3)(f)
(f) Section 164 (a) is modified so that foreign taxes are not deductible unless the income on which the tax is based is taxable under this chapter and so that gross receipts taxes assessed in lieu of property taxes, the license fee under
s. 76.28 and the taxes under
ss. 70.375,
76.81 and
76.91 are deductible.
71.26(3)(g)
(g) Section 164 (a) (3) is modified so that state taxes and taxes of the District of Columbia that are value-added taxes, single business taxes or taxes on or measured by all or a portion of net income, gross income, gross receipts or capital stock are not deductible.
71.26(3)(h)
(h) Section 164 (a) (4) as it relates to a deduction for the windfall profits tax is excluded.
71.26(3)(hd)
(hd) Section 164 (a) as it relates to a deduction for the environmental tax that is imposed under section 59A is excluded.
71.26(3)(hm)
(hm) Section 171 is modified so that the rules for federally taxable bonds also apply to bonds that are taxable under
par. (b) and the rules for federally tax-exempt bonds apply to bonds that are exempt from tax under this chapter.
71.26(3)(i)
(i) Section 172 is excluded and replaced by the treatment of business loss carry-forwards under
sub. (4).
71.26(3)(j)
(j) Sections 243, 244, 245, 246 and 246A are excluded and replaced by the rule that corporations may deduct from income dividends received from a corporation with respect to its common stock if the corporation receiving the dividends owns, directly or indirectly, during the entire taxable year at least 70% of the total combined voting stock of the payor corporation. In this paragraph, "dividends received" means gross dividends minus taxes on those dividends paid to a foreign nation and claimed as a deduction under this chapter. The same dividends may not be deducted more than once.
71.26(3)(k)
(k) Section 247 (relating to dividends on preferred stock of public utilities) is excluded.
71.26(3)(L)
(L) Section 265 is excluded and replaced by the rule that any amount otherwise deductible under this chapter that is directly or indirectly related to income wholly exempt from taxes imposed by this chapter or to losses from the sale or other disposition of assets the gain from which would be exempt under this paragraph if the assets were sold or otherwise disposed of at a gain is not deductible. In this paragraph, "wholly exempt income", for corporations subject to franchise or income taxes, includes amounts received from affiliated or subsidiary corporations for interest, dividends or capital gains that, because of the degree of common ownership, control or management between the payor and payee, are not subject to taxes under this chapter. In this paragraph, "wholly exempt income", for corporations subject to income taxation under this chapter, also includes interest on obligations of the United States. In this paragraph, "wholly exempt income" does not include income excludable, not recognized, exempt or deductible under specific provisions of this chapter. If any expense or amount otherwise deductible is indirectly related both to wholly exempt income or loss and to other income or loss, a reasonable proportion of the expense or amount shall be allocated to each type of income or loss, in light of all the facts and circumstances.
71.26(3)(m)
(m) Section 267 (relating to transactions between related taxpayers) is modified so that gains may be reduced only if the corresponding loss was incurred while the corporation was subject to tax under this chapter.
71.26(3)(ms)
(ms) Section 291 (a) (3) is modified so that it does not apply to deductions that are allocable to income that is taxable under this chapter.
71.26(3)(n)
(n) Sections 381, 382 and 383 (relating to carry-overs in certain corporate acquisitions) are modified so that they apply to losses under
sub. (4) and credits under
s. 71.28 (1di),
(1dL),
(1dx) and
(3) to
(5) instead of to federal credits and federal net operating losses.
71.26(3)(o)
(o) Section 468A (relating to nuclear decommissioning trust and reserve funds) is modified so that the deduction under section 468A (a) is allowed only if the fund is subject to tax under this chapter.
71.26(3)(p)
(p) Sections 501 to 511 and 513 to 528 (relating to exempt organizations) are excluded, except as they pertain to the definitions of unrelated business taxable income in section 512, and replaced by the treatment of exemptions under
sub. (1).
71.26(3)(q)
(q) Sections 613 and 613A (relating to percentage depletion) are excluded.
71.26(3)(s)
(s) Sections 951 to 964 (relating to controlled foreign corporations) are excluded.
71.26(3)(t)
(t) Sections 991 to 994, 995 as amended by section 802 of
P.L. 98-369, and section 999 as amended by section 802 of
P.L. 98-369 (relating to domestic international sales corporations) are excluded.
71.26(3)(tm)
(tm) Section 1016 (a) is modified so that the rules for federally taxable bonds also apply to bonds that are taxable under
par. (b) and the rules for federally tax-exempt bonds apply to bonds that are exempt from tax under this chapter.
71.26(3)(u)
(u) Section 1017 (relating to adjustments to basis because of discharge of indebtedness) is modified to reflect the modification under
par. (c).
71.26(3)(v)
(v) Section 1033 is modified so that it does not apply to involuntary conversions of property in this state that produces nonbusiness income and that is replaced with similar property outside this state and to involuntary conversions of property in this state that produces business income and that is replaced with property outside this state if at the time of replacement the taxpayer is not subject to tax under this chapter.
71.26(3)(x)
(x) Sections 1501 to 1505, 1551, 1552, 1563 and 1564 (relating to consolidated returns) are excluded.
71.26(3)(y)
(y) A corporation may compute amortization and depreciation under either the federal Internal Revenue Code as amended to December 31, 1999, 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.
71.26(4)
(4) Net business loss carry-forward. A corporation, except a tax-option corporation or an insurer to which
s. 71.45 (4) applies, may offset against its Wisconsin net business income any Wisconsin net business loss sustained in any of the next 15 preceding taxable years, if the corporation was subject to taxation under this chapter in the taxable year in which the loss was sustained, to the extent not offset by other items of Wisconsin income in the loss year and by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed. For purposes of this subsection Wisconsin net business income or loss shall consist of all the income attributable to the operation of a trade or business in this state, less the business expenses allowed as deductions in computing net income. The Wisconsin net business income or loss of corporations engaged in business within and without the state shall be determined under
s. 71.25 (6) and
(10) to
(12). Nonapportionable losses having a Wisconsin situs under
s. 71.25 (5) (b) shall be included in Wisconsin net business loss; and nonapportionable income having a Wisconsin situs under
s. 71.25 (5) (b), whether taxable or exempt, shall be included in other items of Wisconsin income and Wisconsin net business income for purposes of this subsection.
71.26 History
History: 1987 a. 312;
1987 a. 411 ss.
22,
124 to
129;
1989 a. 31,
336;
1991 a. 37,
39,
221,
269;
1993 a. 16,
112,
246,
263,
399,
437,
491;
1995 a. 27,
56,
351,
371,
380,
428;
1997 a. 27,
37,
184,
237;
1999 a. 9,
65;
1999 a. 150 s.
672;
1999 a. 167,
194; s. 13.93 (2) (c).
71.26 Annotation
Under s. 71.06 (1), 1975 stats. [now see 71.26 (4)], the loss carry-over privilege was limited to an "identical taxpayer"; merging corporations are not entitled to the privilege. Department of Revenue v. U.S. Shoe Corp.
158 Wis. 2d 123,
462 N.W.2d 233 (Ct. App. 1990).
71.265
71.265
Previously exempt corporations; basis and depreciation. The Wisconsin adjusted basis of the property of any corporation that has, in any taxable year before it ceases to be exempt from tax under this chapter, taken depreciation or amortization of depreciable property for federal income tax purposes shall be the adjusted basis of that property as computed for federal income tax purposes as of the beginning of the taxable year in which the corporation ceases to be exempt. The corporation may continue, after it ceases to be exempt, to depreciate that property under the method used previously for federal income tax purposes.
71.265 History
History: 1987 a. 399;
1987 a. 411 s.
33; Stats. 1987 s. 71.265.
71.27
71.27
Rates of taxation. 71.27(1)(1) The taxes to be assessed, levied and collected upon Wisconsin net incomes of corporations shall be computed at the rate of 7.9%.
71.27(2)
(2) The corporation franchise tax imposed under
s. 71.23 (2) and measured by Wisconsin net income shall be computed at the rate of 7.9%.
71.27 History
History: 1987 a. 312.
71.275
71.275
Rate changes. If a rate under
s. 71.27 changes during a taxable year, the taxpayer shall compute the tax for that taxable year by the methods applicable to the federal income tax under section
15 of the internal revenue code.
71.275 History
History: 1989 a. 31.
71.28(1)(1)
Community development finance credit. 71.28(1)(a)(a) Any corporation which contributes an amount to the community development finance authority under s.
233.03, 1985 stats., or to the housing and economic development authority under
s. 234.03 (32) and, in the same year, purchases common stock or partnership interests of the community development finance company issued under s.
233.05 (2), 1985 stats., or
s. 234.95 (2) in an amount no greater than the contribution to the authority may credit against taxes otherwise due an amount equal to 75% of the purchase price of the stock or partnership interests. The credit received under this paragraph may not exceed 75% of the contribution to the community development finance authority.
71.28(1)(b)
(b) Any corporation receiving a credit under this subsection may carry forward to the next succeeding 15 taxable years the amount of the credit not offset against taxes for the year of purchase to the extent not offset by those taxes otherwise due in all intervening years between the year for which the credit was computed and the year for which the carry-forward is claimed.
71.28(1)(c)
(c) A claimant who has filed a timely claim under this subsection may file an amended claim with the department of revenue within 4 years of the last day prescribed by law for filing the original claim.
71.28(1dd)
(1dd) Development zones day care credit. 71.28(1dd)(a)1.
1. "Day care center benefits" means benefits provided at a day care facility that is licensed under
s. 48.65 or
48.69 and that for compensation provides care for at least 6 children or benefits provided at a facility for persons who are physically or mentally incapable of caring for themselves.
