Wisconsin Legislature: 1,86

11. A food insecurity initiative.

12. A farm support program.

13. Grants to small businesses.

14. Ethanol industry assistance.

15. Wisconsin Eye.

1,75m Section 75m. 71.34 (1k) (ah) of the statutes is created to read:

71.34 (1k) (ah) Section 61 of the Internal Revenue Code is modified so that income received in the form of a grant issued by the Wisconsin Economic Development Corporation during and related to the COVID-19 pandemic under the ethnic minority emergency grant program is not taxable income. Amounts otherwise deductible under this chapter that are paid directly or indirectly with the grant money are deductible.

1,76 Section 76 . 71.34 (1u) of the statutes is created to read:

71.34 (1u) For purposes of s. 71.34 (1g) (b), 2013 stats., “Internal Revenue Code" includes section 109 of division U of P.L. 115-141.

1,77 Section 77 . 71.42 (2) (c), (d), (e), (f), (g), (h) and (i) of the statutes are repealed.

1,78 Section 78 . 71.42 (2) (j) 3. m. of the statutes is created to read:

71.42 (2) (j) 3. m. Sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of P.L. 115-141.

1,79 Section 79 . 71.42 (2) (j) 3. n. of the statutes is created to read:

71.42 (2) (j) 3. n. Section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94.

1,80 Section 80 . 71.42 (2) (k) 3. of the statutes is amended to read:

71.42 (2) (k) 3. For purposes of this paragraph, “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2016, except that “Internal Revenue Code” includes sections 11024, 11025, and 13543 of P.L. 115-97; sections 40307 and 40413 of P.L. 115-123; sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of P.L. 115-141; and section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94.

1,81 Section 81 . 71.42 (2) (L) 1. of the statutes is amended to read:

71.42 (2) (L) 1. For taxable years beginning after December 31, 2017, and before January 1, 2021, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2017, except as provided in subds. 2. to 4. and s. 71.98 and subject to subd. 5.

1,82 Section 82. 71.42 (2) (L) 3. of the statutes is amended to read:

71.42 (2) (L) 3. For purposes of this paragraph, “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2017, except that “Internal Revenue Code” includes sections 40307, 40413, and 41113 of P.L. 115-123; sections 101 (m), (n), (o), (p), and (q), 104 (a), 109, 401 (a) (54) and (b) (15) (A), (B), and (C), 19, 20, 23, 26, 27, and 28 of division U of P.L. 115-141; sections 102 and 104 of division M, sections 102, 103, 106, 107, 108, 109, 110, 111, 113, 114, 115, 116, 201, 204, 205, 206, 302, 401, and 601 of division O, section 1302 of division P, and sections 131, 202 (d), and 205 of division Q of P.L. 116-94; sections 1106, 2202, 2203, 2204, 2205, 2206, 2307, 3608, 3609, 3701, and 3702 of division A of P.L. 116-136; and sections 202, 208, 209, 211, and 214 of division EE and sections 276 (a) and (b), 277, 278 (a), (b), (c), and (d), 280, and 285 of division N of P.L. 116-260.

1,83 Section 83 . 71.42 (2) (L) 5. of the statutes is amended to read:

71.42 (2) (L) 5. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by P.L. 115-63 and sections 11026, 11027, 11028, 13207, 13306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L. 115-97 first apply for taxable years beginning after December 31, 2017.

1,84 Section 84 . 71.42 (2) (m) of the statutes is created to read:

71.42 (2) (m) 1. For taxable years beginning after December 31, 2020, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2020, except as provided in subds. 2. and 3. and s. 71.98 and subject to subd. 4.

2. For purposes of this paragraph, “Internal Revenue Code" does not include the following provisions of federal public laws for taxable years beginning after December 31, 2020: section 13113 of P.L. 103-66; sections 1, 3, 4, and 5 of P.L. 106-519; sections 101, 102, and 422 of P.L. 108-357; sections 1310 and 1351 of P.L. 109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L. 110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section 15351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251, 1501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L. 111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L. 111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and 411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division P of P.L. 114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113; sections 11011, 11012, 13201 (a) to (e) and (g), 13206, 13221, 13301, 13304 (a), (b), and (d), 13531, 13601, 13801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97; sections 40304, 40305, 40306, and 40412 of P.L. 115-123; section 101 (c) of division T of P.L. 115-141; sections 101 (d) and (e), 102, 201 to 207, 301, 302, and 401 (a) (47) and (195), (b) (13), (17), (22) and (30), and (d) (1) (D) (v), (vi), and (xiii) and (xvii) (II) of division U of P.L. 115-141; sections 104, 114, 115, 116, 130, and 145 of division Q of P.L. 116-94; sections 2304 and 2306 of P.L.116-136; and sections 111, 114, 115, 116, 118 (a) and (d), 133, 137, 138, and 210 of division EE of P.L. 116-260.

3. For purposes of this paragraph, “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2020.

4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by sections 20101, 20102, 20104, 20201, 40201, 40202, 40203, 40308, 40309, 40311, 40414, 41101, 41107, 41114, 41115, and 41116 of P.L. 115-123; section 101 (a), (b), and (h) of division U of P.L. 115-141; section 1203 of 116-25; section 1122 of P.L. 116-92; section 301 of division O, section 1302 of division P, and sections 101, 102, 103, 117, 118, 132, 201, 202 (a), (b), and (c), 204 (a), (b), and (c), 301, and 302 of division Q of P.L. 116-94; section 2 of P.L. 116-98; and sections 301, 302, and 304 of division EE of P.L. 116-260 apply for taxable years beginning after December 31, 2020.

1,85 Section 85 . 71.42 (2p) of the statutes is created to read:

71.42 (2p) For purposes of s. 71.42 (2) (b), 2013 stats., “Internal Revenue Code" includes section 109 of division U of P.L. 115-141.

1,86 Section 86. 71.45 (1) (d) of the statutes is created to read:

71.45 (1) (d) Income received in the form of allocations issued by this state with moneys received from the coronavirus relief fund authorized under 42 USC 801 to be used for any of the following purposes:

1. Broadband expansion.

2. Privately owned movie theater grants.

3. A nonprofit grant program.

4. A tourism grants program.

5. A cultural organization grant program.

6. Music and performance venue grants.

7. Lodging industry grants.

8. Low-income home energy assistance.

9. A rental assistance program.

10. Supplemental child care grants.

11. A food insecurity initiative.

12. A farm support program.

13. Grants to small businesses.

14. Ethanol industry assistance.

15. Wisconsin Eye.

1,86m Section 86m. 71.45 (1) (dm) of the statutes is created to read:

71.45 (1) (dm) Income received in the form of a grant issued by the Wisconsin Economic Development Corporation during and related to the COVID-19 pandemic under the ethnic minority emergency grant program. Amounts otherwise deductible under this chapter that are paid directly or indirectly with the grant money are deductible.

1,87 Section 87. 71.45 (2) (a) 22. of the statutes is created to read:

71.45 (2) (a) 22. By subtracting from federal taxable income, to the extent included in federal taxable income, income received in the form of allocations issued by this state with moneys received from the coronavirus relief fund authorized under 42 USC 801 to be used for any of the following purposes:

a. Broadband expansion.

b. Privately owned movie theater grants.

c. A nonprofit grant program.

d. A tourism grants program.

e. A cultural organization grant program.

f. Music and performance venue grants.

g. Lodging industry grants.

h. Low-income home energy assistance.

i. A rental assistance program.

j. Supplemental child care grants.

k. A food insecurity initiative.

L. A farm support program.

m. Grants to small businesses.

n. Ethanol industry assistance.

o. Wisconsin Eye.

1,87n Section 87n. 71.45 (2) (a) 23. of the statutes is created to read:

71.45 (2) (a) 23. By subtracting from federal taxable income, to the extent included in federal taxable income, income received in the form of a grant issued by the Wisconsin Economic Development Corporation during and related to the COVID-19 pandemic under the ethnic minority emergency grant program. Amounts otherwise deductible under this chapter that are paid directly or indirectly with the grant money are deductible.

1,88 Section 88. 71.47 (6) (h) of the statutes is amended to read:

71.47 (6) (h) Any person, including a nonprofit entity described in section 501 (c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under par. (a) 2m. or 3., in whole or in part, to another person who is subject to the taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and submits with the notification a copy of the transfer documents, and the department certifies ownership of the credit with each transfer. The transferor may file a claim for more than one taxable year on a form prescribed by the department to compute all years of the credit under par. (a) 2m. or 3., at the time of the transfer request. The transferee may first use the credit to offset tax in the taxable year of the transferor in which the transfer occurs, and may use the credit only to offset tax in taxable years otherwise allowed to be claimed and carried forward by the original claimant.

1,89 Section 89. 71.52 (1g) of the statutes is created to read:

71.52 (1g) “Earned income” means wages, salaries, tips, and other employee compensation that may be included in federal adjusted gross income for the taxable year, plus the amount of the claimant's net earnings from self-employment for the taxable year determined with regard to the deduction allowed to the taxpayer by section 164 (f) of the Internal Revenue Code. For purposes of this subsection, a claimant's earned income is computed without regard to any marital property laws and a claimant may elect to treat amounts excluded from federal adjusted gross income as earned income, as provided under section 112 of the Internal Revenue Code. “Earned income” does not include the following:

(a) Any amount received as a pension or annuity.

(b) Any amount to which section 871 (a) of the Internal Revenue Code applies.

(d) Any amount received for service performed in work activities under paragraphs (4) or (7) of section 407 (d) of the Social Security Act to which the claimant is assigned under any state program under part A of title IV of the Social Security Act. This paragraph applies only to amounts subsidized under any such state program.

1,90 Section 90. 71.55 (10) of the statutes is amended to read:

71.55 (10) Farmers. Notwithstanding the provision in s. 71.52 (6) that requires the addition of certain disqualified losses to income, such an addition may not be made by a claimant who is a farmer whose primary income is from farming and whose farming generates less than $250,000 in gross receipts from the operation of farm premises in the year to which the claim relates. For purposes of this subsection, a claimant's primary income is from farming if the claimant's gross income from farming for the year to which the claim relates is greater than 50 percent of the claimant's total gross income from all sources for the year to which the claim relates. In this subsection, “gross income” has the meaning given in s. 71.03 (1).

1,91 Section 91. 71.76 of the statutes is renumbered 71.76 (1) and amended to read:

71.76 (1) If for any year the amount of federal net income tax payable, of a credit claimed or carried forward, of a net operating loss carried forward or of a capital loss carried forward of any taxpayer as reported to the internal revenue service is changed or corrected by the internal revenue service or other officer of the United States, such taxpayer shall report such changes or corrections to the department within 90 180 days after its final determination and shall concede the accuracy of such determination or state how the determination is erroneous. Such changes or corrections need not be reported unless they affect the amount of net tax payable under this chapter, of a credit calculated under this chapter, of a Wisconsin net operating loss carried forward, of a Wisconsin net business loss carried forward or of a capital loss carried forward under this chapter. Any taxpayer submitting an amended return to the internal revenue service, or to another state if there has been allowed a credit against Wisconsin taxes for taxes paid to that state, shall also file, within 90 180 days of such filing date, an amended return if any information contained on the amended return affects the amount of net tax payable under this chapter of a credit calculated under this chapter, of a Wisconsin net operating loss carried forward, of a Wisconsin net business loss carried forward or of a capital loss carried forward under this chapter.

1,92 Section 92. 71.76 (2) of the statutes is created to read:

71.76 (2) In the case of any partnership adjustments, as defined under section 6241 of the Internal Revenue Code and including adjustments under section 6225 of the Internal Revenue Code, the partnership and its partners shall report such changes or corrections to the department within 180 days after the final determination by the internal revenue service and shall concede the accuracy of such determination or state how the determination is erroneous. The partnership and its partners shall submit amended returns, as applicable, for each reviewed year, as defined under section 6225 of the Internal Revenue Code, to which such partnership adjustments relate.

1,93 Section 93. 71.77 (7) (b) of the statutes is amended to read:

71.77 (7) (b) If notice of assessment or refund is given to the taxpayer within 90 180 days of the date on which the department receives a report from the taxpayer under s. 71.76 or within such other period specified in a written agreement entered into prior to the expiration of such 90 180 days by the taxpayer and the department. If the taxpayer does not report to the department as required under s. 71.76, the department may make an assessment against the taxpayer or refund to the taxpayer within 4 years after discovery by the department.

1,94 Section 94 . 71.83 (1) (a) 6. of the statutes is amended to read:

71.83 (1) (a) 6. `Retirement plans.' Any natural person who is liable for a penalty for federal income tax purposes under section 72 (m) (5), (q), (t), and (v), 4973, 4974, 4975, or 4980A of the Internal Revenue Code is liable for 33 percent of the federal penalty unless the income received is exempt from taxation under s. 71.05 (1) (a) or (ae) (6) (b) 54. The penalties provided under this subdivision shall be assessed, levied, and collected in the same manner as income or franchise taxes.

1,95 Section 95. 71.98 (3) of the statutes is amended to read:

71.98 (3) Depreciation, depletion, and amortization. For taxable years beginning after December 31, 2013, and for purposes of computing depreciation and amortization, the Internal Revenue Code means the federal Internal Revenue Code in effect for federal purposes on January 1, 2014, except that sections 13201 (f), 13203, 13204, and 13205 of P.L. 115-97 and, section 2307 of division A of P.L. 116-136, and section 202 of division EE of P.L. 116-260 apply at the same time as for federal purposes. For taxable years beginning after December 31, 2013, and for purposes of computing depletion, the Internal Revenue Code means the federal Internal Revenue Code in effect for federal purposes for the year in which the property is placed in service.

1,96 Section 96. 73.0305 of the statutes is amended to read:

73.0305 Revenue limits calculations. The department of revenue shall annually determine and certify to the state superintendent of public instruction, no later than the 4th Monday in June at the superintendent's request, the allowable rate of increase under subch. VII of ch. 121. The allowable rate of increase is the percentage change, if not negative, in the consumer price index for all urban consumers, U.S. city average, between the preceding March 31 and the 2nd preceding March 31, as computed by the federal department of labor.