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2021 - 2022 LEGISLATURE
ASSEMBLY AMENDMENT 1,
TO ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 2
February 10, 2021 - Offered by Joint Committee on Finance.
AB2-ASA1-AA1,1,11 At the locations indicated, amend the substitute amendment as follows:
AB2-ASA1-AA1,1,2 21. Page 15, line 13: after that line insert:
AB2-ASA1-AA1,1,3 3 Section 25m. 71.05 (1) (h) of the statutes is created to read:
AB2-ASA1-AA1,1,84 71.05 (1) (h) Wisconsin grants awarded from the federal coronavirus relief fund.
5Income received in the form of a grant issued by the state with moneys received from
6the coronavirus relief fund authorized under 42 USC 801. Amounts otherwise
7deductible under this chapter that are paid directly or indirectly with the grant
8money are deductible.”.
AB2-ASA1-AA1,1,9 92. Page 30, line 20: after that line insert:
AB2-ASA1-AA1,1,11 10 Section 61d. 71.26 (3) (ag) of the statutes is renumbered 71.26 (3) (ag) (intro.)
11and amended to read:
AB2-ASA1-AA1,2,2
171.26 (3) (ag) (intro.) Section 61 (relating to the definition of gross income) is
2modified to exclude income the following:
AB2-ASA1-AA1,2,8 31. Income received by the original policyholder or original certificate holder
4who has a catastrophic or life-threatening illness or condition from the sale of a life
5insurance policy or certificate, or the sale of the death benefit under a life insurance
6policy or certificate, under a life settlement contract, as defined in s. 632.69 (1) (k).
7In this paragraph, “catastrophic or life-threatening illness or condition" includes
8AIDS, as defined in s. 49.686 (1) (a), and HIV infection, as defined in s. 49.686 (1) (d).
AB2-ASA1-AA1,61e 9Section 61e. 71.26 (3) (ag) 2. of the statutes is created to read:
AB2-ASA1-AA1,2,1310 71.26 (3) (ag) 2. Income received in the form of a grant issued by the state with
11moneys received from the coronavirus relief fund authorized under 42 USC 801.
12Amounts otherwise deductible under this chapter that are paid directly or indirectly
13with the grant money are deductible.
AB2-ASA1-AA1,61f 14Section 61f. 71.26 (3) (L) of the statutes is amended to read:
AB2-ASA1-AA1,3,715 71.26 (3) (L) Section 265 is excluded and replaced by the rule that any amount
16otherwise deductible under this chapter that is directly or indirectly related to
17income wholly exempt from taxes imposed by this chapter or to losses from the sale
18or other disposition of assets the gain from which would be exempt under this
19paragraph if the assets were sold or otherwise disposed of at a gain is not deductible.
20In this paragraph, “wholly exempt income", for corporations subject to franchise or
21income taxes, includes amounts received from affiliated or subsidiary corporations
22for interest, dividends or capital gains that, because of the degree of common
23ownership, control or management between the payor and payee, are not subject to
24taxes under this chapter. In this paragraph, “wholly exempt income", for
25corporations subject to income taxation under this chapter, also includes interest on

1obligations of the United States. In this paragraph, “wholly exempt income" does not
2include income excludable, not recognized, exempt or deductible under specific
3provisions of this chapter. If any expense or amount otherwise deductible is
4indirectly related both to wholly exempt income or loss and to other income or loss,
5a reasonable proportion of the expense or amount shall be allocated to each type of
6income or loss, in light of all the facts and circumstances. This paragraph does not
7apply to the exclusion under par. (ag) 2.
”.
AB2-ASA1-AA1,3,8 83. Page 34, line 19: after that line insert:
AB2-ASA1-AA1,3,9 9 Section 70m. 71.34 (1k) (af) of the statutes is created to read:
AB2-ASA1-AA1,3,1410 71.34 (1k) (af) Section 61 of the Internal Revenue Code is modified so that
11income received in the form of a grant issued by the state with moneys received from
12the coronavirus relief fund authorized under 42 USC 801 is not taxable income.
13Amounts otherwise deductible under this chapter that are paid directly or indirectly
14with the grant money are deductible.”.
AB2-ASA1-AA1,3,15 154. Page 38, line 6: after that line insert:
AB2-ASA1-AA1,3,16 16 Section 80m. 71.45 (1) (d) of the statutes is created to read:
AB2-ASA1-AA1,3,2017 71.45 (1) (d) Income received in the form of a grant issued by the state with
18moneys received from the coronavirus relief fund authorized under 42 USC 801.
19Amounts otherwise deductible under this chapter that are paid directly or indirectly
20with the grant money are deductible.
AB2-ASA1-AA1,80n 21Section 80n. 71.45 (2) (a) 22. of the statutes is created to read:
AB2-ASA1-AA1,4,222 71.45 (2) (a) 22. By subtracting from federal taxable income, to the extent
23included in federal taxable income, income received in the form of a grant issued by
24the state with moneys received from the coronavirus relief fund authorized under 42

1USC 801. Amounts otherwise deductible under this chapter that are paid directly
2or indirectly with the grant money are deductible.”.
AB2-ASA1-AA1,4,3 35. Page 54, line 5: after that line insert:
AB2-ASA1-AA1,4,6 4“(6m) Income from grants. The treatment of ss. 71.05 (1) (h), 71.26 (3) (ag) 2.
5and (L), 71.34 (1k) (af), and 71.45 (1) (d) and (2) (a) 22. first applies to taxable years
6beginning after December 31, 2019.”.
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