LRB-4106/1
KP:skw
2023 - 2024 LEGISLATURE
January 12, 2024 - Introduced by Representatives Sortwell, Murphy, O'Connor,
Schmidt and Goeben, cosponsored by Senator Jacque. Referred to Committee
on Ways and Means.
AB922,1,3
1An Act to renumber and amend 71.98 (3); and
to create 71.98 (3) (b) and 71.98
2(3) (c) of the statutes;
relating to: adopting federal income tax provisions
3related to depreciation and amortization.
Analysis by the Legislative Reference Bureau
This bill adopts, beginning in tax year 2023, for state income and franchise tax
purposes, the current federal Internal Revenue Code related to depreciation and
amortization, including provisions related to a depreciation allowance for certain
property, known as bonus depreciation. For state income and franchise tax purposes,
current law generally adopts the federal Internal Revenue Code provisions related
to depreciation and amortization in effect on January 1, 2014. Under the bill,
generally, a taxpayer may take a depreciation deduction equal to 80 percent of the
adjusted basis of qualified property placed in service during tax year 2023, and the
applicable deduction percentage is 60 percent for tax year 2024, 40 percent for tax
year 2025, and 20 percent for tax year 2026. Under current federal law, the bonus
depreciation allowance sunsets for tax year 2027.
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:
AB922,1
1Section
1. 71.98 (3) of the statutes is renumbered 71.98 (3) (a) and amended
2to read:
AB922,2,83
71.98
(3) (a) For taxable years beginning after December 31, 2013,
and before
4January 1, 2023, and for purposes of computing depreciation and amortization, the
5Internal Revenue Code means the federal Internal Revenue Code in effect for federal
6purposes on January 1, 2014, except that sections 13201 (f), 13203, 13204, and 13205
7of P.L.
115-97, section 2307 of division A of P.L.
116-136, and section 202 of division
8EE of P.L.
116-260 apply at the same time as for federal purposes.
AB922,2,12
9(d) For taxable years beginning after December 31, 2013, and for purposes of
10computing depletion, the Internal Revenue Code means the federal Internal
11Revenue Code in effect for federal purposes for the year in which the property is
12placed in service.
AB922,2
13Section
2. 71.98 (3) (b) of the statutes is created to read:
AB922,2,1914
71.98
(3) (b) Notwithstanding ss. 71.01 (6) (m), 71.22 (4) (m), and 71.42 (2) (m),
15for taxable years beginning after December 31, 2022, and for purposes of computing
16depreciation, the Internal Revenue Code means the federal Internal Revenue Code
17in effect for federal purposes for the year in which the property is placed in service,
18except that property placed in service in taxable years beginning before January 1,
192023, shall continue to be depreciated as described in par. (a).
AB922,3
20Section
3. 71.98 (3) (c) of the statutes is created to read:
AB922,3,221
71.98
(3) (c) Notwithstanding ss. 71.01 (6) (m), 71.22 (4) (m), and 71.42 (2) (m),
22for taxable years beginning after December 31, 2022, and for purposes of computing
23amortization, the Internal Revenue Code means the federal Internal Revenue Code
24in effect for federal purposes for the year in which the amortized expense is made,
1except that amortized expenses made in taxable years beginning before January 1,
22023, shall continue to be amortized as described in par. (a).
