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AB2-ASA2,63 8Section 63 . 71.26 (2) (b) 12. e. of the statutes is amended to read:
AB2-ASA2,29,149 71.26 (2) (b) 12. e. For purposes of subd. 12. a., the provisions of federal public
10laws that directly or indirectly affect the Internal Revenue Code, as defined in this
11subdivision, apply for Wisconsin purposes at the same time as for federal purposes,
12except that changes made by P.L. 115-63 and sections 11026, 11027, 11028, 13207,
1313306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L. 115-97
14first apply for taxable years beginning after December 31, 2017
.
AB2-ASA2,64 15Section 64 . 71.26 (2) (b) 13. of the statutes is created to read:
AB2-ASA2,29,2316 71.26 (2) (b) 13. a. For taxable years beginning after December 31, 2020, for a
17corporation, conduit, or common law trust that qualifies as a regulated investment
18company, real estate mortgage investment conduit, real estate investment trust, or
19financial asset securitization investment trust under the Internal Revenue Code,
20“net income" means the federal regulated investment company taxable income,
21federal real estate mortgage investment conduit taxable income, federal real estate
22investment trust, or financial asset securitization investment trust taxable income
23of the corporation, conduit, or trust as determined under the Internal Revenue Code.
AB2-ASA2,30,3
1b. For purposes of subd. 13. a., “Internal Revenue Code" means the federal
2Internal Revenue Code as amended to December 31, 2020, except as provided in
3subd. 13. c. and d. and s. 71.98 and subject to subd. 13. e.
AB2-ASA2,31,24 c. For purposes of subd. 13. a., “Internal Revenue Code" does not include the
5following provisions of federal public laws for taxable years beginning after
6December 31, 2020: section 13113 of P.L. 103-66; sections 1, 3, 4, and 5 of P.L.
7106-519; sections 101, 102, and 422 of P.L. 108-357; sections 1310 and 1351 of P.L.
8109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of
9P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L.
10110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section
1115351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections
12312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251,
131501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L.
14111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L.
15111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and
16411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division
17P of P.L. 114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to
18171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113; sections 11011, 11012,
1913201 (a) to (e) and (g), 13206, 13221, 13301, 13304 (a), (b), and (d), 13531, 13601,
2013801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215,
2114221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97; sections 40304, 40305,
2240306, and 40412 of P.L. 115-123; section 101 (c) of division T of P.L. 115-141;
23sections 101 (d) and (e), 102, 201 to 207, 301, 302, and 401 (a) (47) and (195), (b) (13),
24(17), (22) and (30), and (d) (1) (D) (v), (vi), and (xiii) and (xvii) (II) of division U of P.L.
25115-141; sections 104, 114, 115, 116, 130, and 145 of division Q of P.L. 116-94;

1sections 2304 and 2306 of P.L. 116-136; and sections 111, 114, 115, 116, 118 (a) and
2(d), 133, 137, 138, and 210 of division EE of P.L. 116-260.
AB2-ASA2,31,43 d. For purposes of subd. 13. a., “Internal Revenue Code" does not include
4amendments to the federal Internal Revenue Code enacted after December 31, 2020.
AB2-ASA2,31,155 e. For purposes of subd. 13. a., the provisions of federal public laws that directly
6or indirectly affect the Internal Revenue Code, as defined in this subdivision, apply
7for Wisconsin purposes at the same time as for federal purposes, except that changes
8made by sections 20101, 20102, 20104, 20201, 40201, 40202, 40203, 40308, 40309,
940311, 40414, 41101, 41107, 41114, 41115, and 41116 of P.L. 115-123; section 101 (a),
10(b), and (h) of division U of P.L. 115-141; section 1203 of P.L. 116-25; section 1122 of
11P.L. 116-92; section 301 of division O, section 1302 of division P, and sections 101,
12102, 103, 117, 118, 132, 201, 202 (a), (b), and (c), 204 (a), (b), and (c), 301, and 302 of
13division Q of P.L. 116-94; section 2 of P.L. 116-98; and sections 301, 302, and 304 of
14division EE of P.L. 116-260 apply for taxable years beginning after December 31,
152020.
AB2-ASA2,65 16Section 65 . 71.26 (2) (b) 14. of the statutes is created to read:
AB2-ASA2,31,1817 71.26 (2) (b) 14. For purposes of s. 71.26 (2) (b) 2., 2013 stats., “Internal Revenue
18Code" includes section 109 of division U of P.L. 115-141.
AB2-ASA2,66 19Section 66. 71.26 (3) (ag) of the statutes is renumbered 71.26 (3) (ag) (intro.)
20and amended to read:
AB2-ASA2,31,2221 71.26 (3) (ag) (intro.) Section 61 (relating to the definition of gross income) is
22modified to exclude income the following:
AB2-ASA2,32,3 231. Income received by the original policyholder or original certificate holder
24who has a catastrophic or life-threatening illness or condition from the sale of a life
25insurance policy or certificate, or the sale of the death benefit under a life insurance

1policy or certificate, under a life settlement contract, as defined in s. 632.69 (1) (k).
2In this paragraph, “catastrophic or life-threatening illness or condition" includes
3AIDS, as defined in s. 49.686 (1) (a), and HIV infection, as defined in s. 49.686 (1) (d).
AB2-ASA2,67 4Section 67. 71.26 (3) (ag) 2. of the statutes is created to read:
AB2-ASA2,32,55 71.26 (3) (ag) 2. Income received in the form of a grant issued under s. 73.135.
AB2-ASA2,68 6Section 68. 71.26 (3) (L) of the statutes is amended to read:
AB2-ASA2,32,247 71.26 (3) (L) Section 265 is excluded and replaced by the rule that any amount
8otherwise deductible under this chapter that is directly or indirectly related to
9income wholly exempt from taxes imposed by this chapter or to losses from the sale
10or other disposition of assets the gain from which would be exempt under this
11paragraph if the assets were sold or otherwise disposed of at a gain is not deductible.
12In this paragraph, “wholly exempt income", for corporations subject to franchise or
13income taxes, includes amounts received from affiliated or subsidiary corporations
14for interest, dividends or capital gains that, because of the degree of common
15ownership, control or management between the payor and payee, are not subject to
16taxes under this chapter. In this paragraph, “wholly exempt income", for
17corporations subject to income taxation under this chapter, also includes interest on
18obligations of the United States. In this paragraph, “wholly exempt income" does not
19include income excludable, not recognized, exempt or deductible under specific
20provisions of this chapter. If any expense or amount otherwise deductible is
21indirectly related both to wholly exempt income or loss and to other income or loss,
22a reasonable proportion of the expense or amount shall be allocated to each type of
23income or loss, in light of all the facts and circumstances. This paragraph does not
24apply to the exclusion under par. (ag) 2.
AB2-ASA2,69 25Section 69. 71.28 (6) (h) of the statutes is amended to read:
AB2-ASA2,33,12
171.28 (6) (h) Any person, including a nonprofit entity described in section 501
2(c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under
3par. (a) 2m. or 3., in whole or in part, to another person who is subject to the taxes
4imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
5transfer, and submits with the notification a copy of the transfer documents, and the
6department certifies ownership of the credit with each transfer. The transferor may
7file a claim for more than one taxable year on a form prescribed by the department
8to compute all years of the credit under par. (a) 2m. or 3., at the time of the transfer
9request. The transferee may first use the credit to offset tax in the taxable year of the
10transferor in which the transfer occurs, and may use the credit only to offset tax in
11taxable years otherwise allowed to be claimed and carried forward by the original
12claimant.
AB2-ASA2,70 13Section 70 . 71.34 (1g) (c), (d), (e), (f), (g), (h) and (i) of the statutes are repealed.
AB2-ASA2,71 14Section 71 . 71.34 (1g) (j) 3. m. of the statutes is created to read:
AB2-ASA2,33,1615 71.34 (1g) (j) 3. m. Sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of
16division U of P.L. 115-141.
AB2-ASA2,72 17Section 72 . 71.34 (1g) (j) 3. n. of the statutes is created to read:
AB2-ASA2,33,1918 71.34 (1g) (j) 3. n. Section 102 of division M and sections 110, 111, and 116 (b)
19of division O of P.L. 116-94.
AB2-ASA2,73 20Section 73 . 71.34 (1g) (k) 3. of the statutes is amended to read:
AB2-ASA2,34,221 71.34 (1g) (k) 3. For purposes of this paragraph, “Internal Revenue Code" does
22not include amendments to the federal Internal Revenue Code enacted after
23December 31, 2016, except that “Internal Revenue Code” includes sections 11024,
2411025, and 13543 of P.L. 115-97; sections 40307 and 40413 of P.L. 115-123; sections

1101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of P.L. 115-141; and section
2102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94
.
AB2-ASA2,74 3Section 74 . 71.34 (1g) (L) 1. of the statutes is amended to read:
AB2-ASA2,34,74 71.34 (1g) (L) 1. For taxable years beginning after December 31, 2017, and
5before January 1, 2021,
for tax option corporations, “Internal Revenue Code" means
6the federal Internal Revenue Code as amended to December 31, 2017, except as
7provided in subds. 2., 3., and 5. and s. 71.98 and subject to subd. 4.
AB2-ASA2,75 8Section 75. 71.34 (1g) (L) 3. of the statutes is amended to read:
AB2-ASA2,34,209 71.34 (1g) (L) 3. For purposes of this paragraph, “Internal Revenue Code" does
10not include amendments to the federal Internal Revenue Code enacted after
11December 31, 2017, except that “Internal Revenue Code” includes sections 40307,
1240413, and 41113 of P.L. 115-123; sections 101 (m), (n), (o), (p), and (q), 104 (a), 109,
13401 (a) (54) and (b) (15) (A), (B), and (C), 19, 20, 23, 26, 27, and 28 of division U of P.L.
14115-141; sections 102 and 104 of division M, sections 102, 103, 106, 107, 108, 109,
15110, 111, 113, 114, 115, 116, 201, 204, 205, 206, 302, 401, and 601 of division O, section
161302 of division P, and sections 131, 202 (d), and 205 of division Q of P.L. 116-94;

17sections 1106, 2202, 2203, 2204, 2205, 2206, 2307, 3608, 3609, 3701, and 3702 of
18division A of P.L. 116-136; and sections 202, 208, 209, 211, and 214 of division EE and
19sections 276 (a) and (b), 277, 278 (a), (b), (c), and (d), 280, and 285 of division N of P.L.
20116-260
.
AB2-ASA2,76 21Section 76 . 71.34 (1g) (L) 4. of the statutes is amended to read:
AB2-ASA2,35,222 71.34 (1g) (L) 4. For purposes of this paragraph, the provisions of federal public
23laws that directly or indirectly affect the Internal Revenue Code, as defined in this
24paragraph, apply for Wisconsin purposes at the same time as for federal purposes,
25except that changes made by P.L. 115-63 and sections 11026, 11027, 11028, 13207,

113306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L. 115-97
2first apply for taxable years beginning after December 31, 2017
.
AB2-ASA2,77 3Section 77 . 71.34 (1g) (m) of the statutes is created to read:
AB2-ASA2,35,74 71.34 (1g) (m) 1. For taxable years beginning after December 31, 2020, for tax
5option corporations, “Internal Revenue Code" means the federal Internal Revenue
6Code as amended to December 31, 2020, except as provided in subds. 2., 3., and 5. and
7s. 71.98 and subject to subd. 4.
AB2-ASA2,36,68 2. For purposes of this paragraph, “Internal Revenue Code" does not include
9the following provisions of federal public laws for taxable years beginning after
10December 31, 2020: section 13113 of P.L. 103-66; sections 1, 3, 4, and 5 of P.L.
11106-519; sections 101, 102, and 422 of P.L. 108-357; sections 1310 and 1351 of P.L.
12109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of
13P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L.
14110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section
1515351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections
16312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251,
171501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L.
18111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L.
19111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and
20411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division
21P of P.L. 114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to
22171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113; sections 11011, 11012,
2313201 (a) to (e) and (g), 13206, 13221, 13301, 13304 (a), (b), and (d), 13531, 13601,
2413801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215,
2514221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97; sections 40304, 40305,

140306, and 40412 of P.L. 115-123; section 101 (c) of division T of P.L. 115-141;
2sections 101 (d) and (e), 102, 201 to 207, 301, 302, and 401 (a) (47) and (195), (b) (13),
3(17), (22) and (30), and (d) (1) (D) (v), (vi), and (xiii) and (xvii) (II) of division U of P.L.
4115-141; sections 104, 114, 115, 116, 130, and 145 of division Q of P.L. 116-94;
5sections 2304 and 2306 of P.L. 116-136; and sections 111, 114, 115, 116, 118 (a) and
6(d), 133, 137, 138, and 210 of division EE of P.L. 116-260.
AB2-ASA2,36,87 3. For purposes of this paragraph, “Internal Revenue Code" does not include
8amendments to the federal Internal Revenue Code enacted after December 31, 2020.
AB2-ASA2,36,199 4. For purposes of this paragraph, the provisions of federal public laws that
10directly or indirectly affect the Internal Revenue Code, as defined in this paragraph,
11apply for Wisconsin purposes at the same time as for federal purposes, except that
12changes made by sections 20101, 20102, 20104, 20201, 40201, 40202, 40203, 40308,
1340309, 40311, 40414, 41101, 41107, 41114, 41115, and 41116 of P.L. 115-123; section
14101 (a), (b), and (h) of division U of P.L. 115-141; section 1203 of P.L. 116-25; section
151122 of P.L. 116-92; section 301 of division O, section 1302 of division P, and sections
16101, 102, 103, 117, 118, 132, 201, 202 (a), (b), and (c), 204 (a), (b), and (c), 301, and
17302 of division Q of P.L. 116-94; section 2 of P.L. 116-98; and sections 301, 302, and
18304 of division EE of P.L. 116-260 apply for taxable years beginning after December
1931, 2020.
AB2-ASA2,36,23205. For purposes of this paragraph, section 1366 (f) of the Internal Revenue Code
21(relating to pass-through of items to shareholders) is modified by substituting the
22tax under s. 71.35 for the taxes under sections 1374 and 1375 of the Internal Revenue
23Code.
AB2-ASA2,78 24Section 78. 71.34 (1k) (af) of the statutes is created to read:
AB2-ASA2,37,2
171.34 (1k) (af) Section 61 of the Internal Revenue Code is modified so that
2income received in the form of a grant issued under s. 73.135 is not taxable income.
AB2-ASA2,79 3Section 79. 71.34 (1k) (q) of the statutes is created to read:
AB2-ASA2,37,74 71.34 (1k) (q) For taxable years beginning after December 31, 2018, an addition
5shall be made for the amount of the deductions in excess of $250,000 for expenses
6paid or incurred in the taxable year directly or indirectly from forgiven loans under
7sections 276 (a) and (b) and 278 (a) of Division N of P.L. 116-260.
AB2-ASA2,80 8Section 80 . 71.34 (1u) of the statutes is created to read:
AB2-ASA2,37,109 71.34 (1u) For purposes of s. 71.34 (1g) (b), 2013 stats., “Internal Revenue
10Code" includes section 109 of division U of P.L. 115-141.
AB2-ASA2,81 11Section 81 . 71.42 (2) (c), (d), (e), (f), (g), (h) and (i) of the statutes are repealed.
AB2-ASA2,82 12Section 82 . 71.42 (2) (j) 3. m. of the statutes is created to read:
AB2-ASA2,37,1413 71.42 (2) (j) 3. m. Sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of
14division U of P.L. 115-141.
AB2-ASA2,83 15Section 83 . 71.42 (2) (j) 3. n. of the statutes is created to read:
AB2-ASA2,37,1716 71.42 (2) (j) 3. n. Section 102 of division M and sections 110, 111, and 116 (b)
17of division O of P.L. 116-94.
AB2-ASA2,84 18Section 84 . 71.42 (2) (k) 3. of the statutes is amended to read:
AB2-ASA2,37,2419 71.42 (2) (k) 3. For purposes of this paragraph, “Internal Revenue Code" does
20not include amendments to the federal Internal Revenue Code enacted after
21December 31, 2016, except that “Internal Revenue Code” includes sections 11024,
2211025, and 13543 of P.L. 115-97; sections 40307 and 40413 of P.L. 115-123; sections
23101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of P.L. 115-141; and section
24102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94
.
AB2-ASA2,85 25Section 85 . 71.42 (2) (L) 1. of the statutes is amended to read:
AB2-ASA2,38,4
171.42 (2) (L) 1. For taxable years beginning after December 31, 2017, and
2before January 1, 2021,
“Internal Revenue Code" means the federal Internal
3Revenue Code as amended to December 31, 2017, except as provided in subds. 2. to
44. and s. 71.98 and subject to subd. 5.
AB2-ASA2,86 5Section 86. 71.42 (2) (L) 3. of the statutes is amended to read:
AB2-ASA2,38,176 71.42 (2) (L) 3. For purposes of this paragraph, “Internal Revenue Code" does
7not include amendments to the federal Internal Revenue Code enacted after
8December 31, 2017, except that “Internal Revenue Code” includes sections 40307,
940413, and 41113 of P.L. 115-123; sections 101 (m), (n), (o), (p), and (q), 104 (a), 109,
10401 (a) (54) and (b) (15) (A), (B), and (C), 19, 20, 23, 26, 27, and 28 of division U of P.L.
11115-141; sections 102 and 104 of division M, sections 102, 103, 106, 107, 108, 109,
12110, 111, 113, 114, 115, 116, 201, 204, 205, 206, 302, 401, and 601 of division O, section
131302 of division P, and sections 131, 202 (d), and 205 of division Q of P.L. 116-94;

14sections 1106, 2202, 2203, 2204, 2205, 2206, 2307, 3608, 3609, 3701, and 3702 of
15division A of P.L. 116-136; and sections 202, 208, 209, 211, and 214 of division EE and
16sections 276 (a) and (b), 277, 278 (a), (b), (c), and (d), 280, and 285 of division N of P.L.
17116-260
.
AB2-ASA2,87 18Section 87 . 71.42 (2) (L) 5. of the statutes is amended to read:
AB2-ASA2,38,2419 71.42 (2) (L) 5. For purposes of this paragraph, the provisions of federal public
20laws that directly or indirectly affect the Internal Revenue Code, as defined in this
21paragraph, apply for Wisconsin purposes at the same time as for federal purposes,
22except that changes made by P.L. 115-63 and sections 11026, 11027, 11028, 13207,
2313306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L. 115-97
24first apply for taxable years beginning after December 31, 2017
.
AB2-ASA2,88 25Section 88 . 71.42 (2) (m) of the statutes is created to read:
AB2-ASA2,39,3
171.42 (2) (m) 1. For taxable years beginning after December 31, 2020, “Internal
2Revenue Code" means the federal Internal Revenue Code as amended to December
331, 2020, except as provided in subds. 2. and 3. and s. 71.98 and subject to subd. 4.
AB2-ASA2,40,24 2. For purposes of this paragraph, “Internal Revenue Code" does not include
5the following provisions of federal public laws for taxable years beginning after
6December 31, 2020: section 13113 of P.L. 103-66; sections 1, 3, 4, and 5 of P.L.
7106-519; sections 101, 102, and 422 of P.L. 108-357; sections 1310 and 1351 of P.L.
8109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of
9P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L.
10110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section
1115351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections
12312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251,
131501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L.
14111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L.
15111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and
16411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division
17P of P.L. 114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to
18171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113; sections 11011, 11012,
1913201 (a) to (e) and (g), 13206, 13221, 13301, 13304 (a), (b), and (d), 13531, 13601,
2013801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215,
2114221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97; sections 40304, 40305,
2240306, and 40412 of P.L. 115-123; section 101 (c) of division T of P.L. 115-141;
23sections 101 (d) and (e), 102, 201 to 207, 301, 302, and 401 (a) (47) and (195), (b) (13),
24(17), (22) and (30), and (d) (1) (D) (v), (vi), and (xiii) and (xvii) (II) of division U of P.L.
25115-141; sections 104, 114, 115, 116, 130, and 145 of division Q of P.L. 116-94;

1sections 2304 and 2306 of P.L.116-136; and sections 111, 114, 115, 116, 118 (a) and
2(d), 133, 137, 138, and 210 of division EE of P.L. 116-260.
AB2-ASA2,40,43 3. For purposes of this paragraph, “Internal Revenue Code" does not include
4amendments to the federal Internal Revenue Code enacted after December 31, 2020.
AB2-ASA2,40,155 4. For purposes of this paragraph, the provisions of federal public laws that
6directly or indirectly affect the Internal Revenue Code, as defined in this paragraph,
7apply for Wisconsin purposes at the same time as for federal purposes, except that
8changes made by sections 20101, 20102, 20104, 20201, 40201, 40202, 40203, 40308,
940309, 40311, 40414, 41101, 41107, 41114, 41115, and 41116 of P.L. 115-123; section
10101 (a), (b), and (h) of division U of P.L. 115-141; section 1203 of 116-25; section 1122
11of P.L. 116-92; section 301 of division O, section 1302 of division P, and sections 101,
12102, 103, 117, 118, 132, 201, 202 (a), (b), and (c), 204 (a), (b), and (c), 301, and 302 of
13division Q of P.L. 116-94; section 2 of P.L. 116-98; and sections 301, 302, and 304 of
14division EE of P.L. 116-260 apply for taxable years beginning after December 31,
152020.
AB2-ASA2,89 16Section 89 . 71.42 (2p) of the statutes is created to read:
AB2-ASA2,40,1817 71.42 (2p) For purposes of s. 71.42 (2) (b), 2013 stats., “Internal Revenue Code"
18includes section 109 of division U of P.L. 115-141.
AB2-ASA2,90 19Section 90. 71.45 (1) (d) of the statutes is created to read:
AB2-ASA2,40,2020 71.45 (1) (d) Income received in the form of a grant issued by under s. 73.135.
AB2-ASA2,91 21Section 91. 71.45 (2) (a) 22. of the statutes is created to read:
AB2-ASA2,40,2522 71.45 (2) (a) 22. For taxable years beginning after December 31, 2018, by
23adding to federal taxable income the amount of the deductions in excess of $250,000
24for expenses paid or incurred in the taxable year directly or indirectly from forgiven
25loans under sections 276 (a) and (b) and 278 (a) of Division N of P.L. 116-260.
AB2-ASA2,92
1Section 92. 71.45 (2) (a) 23. of the statutes is created to read:
AB2-ASA2,41,42 71.45 (2) (a) 23. By subtracting from federal taxable income, to the extent
3included in federal taxable income, income received in the form of a grant issued
4under s. 73.135.
AB2-ASA2,93 5Section 93. 71.47 (6) (h) of the statutes is amended to read:
AB2-ASA2,41,176 71.47 (6) (h) Any person, including a nonprofit entity described in section 501
7(c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under
8par. (a) 2m. or 3., in whole or in part, to another person who is subject to the taxes
9imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
10transfer, and submits with the notification a copy of the transfer documents, and the
11department certifies ownership of the credit with each transfer. The transferor may
12file a claim for more than one taxable year on a form prescribed by the department
13to compute all years of the credit under par. (a) 2m. or 3., at the time of the transfer
14request. The transferee may first use the credit to offset tax in the taxable year of the
15transferor in which the transfer occurs, and may use the credit only to offset tax in
16taxable years otherwise allowed to be claimed and carried forward by the original
17claimant.
AB2-ASA2,94 18Section 94. 71.52 (1g) of the statutes is created to read:
AB2-ASA2,42,219 71.52 (1g) “Earned income” means wages, salaries, tips, and other employee
20compensation that may be included in federal adjusted gross income for the taxable
21year, plus the amount of the claimant's net earnings from self-employment for the
22taxable year determined with regard to the deduction allowed to the taxpayer by
23section 164 (f) of the Internal Revenue Code. For purposes of this subsection, a
24claimant's earned income is computed without regard to any marital property laws
25and a claimant may elect to treat amounts excluded from federal adjusted gross

1income as earned income, as provided under section 112 of the Internal Revenue
2Code. “Earned income” does not include the following:
AB2-ASA2,42,33 (a) Any amount received as a pension or annuity.
AB2-ASA2,42,44(b) Any amount to which section 871 (a) of the Internal Revenue Code applies.
AB2-ASA2,42,65 (c) Any amount received for services provided by an individual while the
6individual is an inmate at a penal institution.
AB2-ASA2,42,117 (d) Any amount received for service performed in work activities under
8paragraphs (4) or (7) of section 407 (d) of the Social Security Act to which the claimant
9is assigned under any state program under part A of title IV of the Social Security
10Act. This paragraph applies only to amounts subsidized under any such state
11program.
AB2-ASA2,95 12Section 95. 71.55 (10) of the statutes is amended to read:
AB2-ASA2,42,2113 71.55 (10) Farmers. Notwithstanding the provision in s. 71.52 (6) that requires
14the addition of certain disqualified losses to income, such an addition may not be
15made by a claimant who is a farmer whose primary income is from farming and
16whose farming generates less than $250,000 in gross receipts from the operation of
17farm premises in the year to which the claim relates. For purposes of this subsection,
18a claimant's primary income is from farming if the claimant's gross income from
19farming for the year to which the claim relates is greater than 50 percent of the
20claimant's total gross income from all sources for the year to which the claim relates.
21In this subsection, “gross income” has the meaning given in s. 71.03 (1).
AB2-ASA2,96 22Section 96. 71.76 of the statutes is renumbered 71.76 (1) and amended to read:
AB2-ASA2,43,1523 71.76 (1) If for any year the amount of federal net income tax payable, of a credit
24claimed or carried forward, of a net operating loss carried forward or of a capital loss
25carried forward of any taxpayer as reported to the internal revenue service is

1changed or corrected by the internal revenue service or other officer of the United
2States, such taxpayer shall report such changes or corrections to the department
3within 90 180 days after its final determination and shall concede the accuracy of
4such determination or state how the determination is erroneous. Such changes or
5corrections need not be reported unless they affect the amount of net tax payable
6under this chapter, of a credit calculated under this chapter, of a Wisconsin net
7operating loss carried forward, of a Wisconsin net business loss carried forward or
8of a capital loss carried forward under this chapter. Any taxpayer submitting an
9amended return to the internal revenue service, or to another state if there has been
10allowed a credit against Wisconsin taxes for taxes paid to that state, shall also file,
11within 90 180 days of such filing date, an amended return if any information
12contained on the amended return affects the amount of net tax payable under this
13chapter of a credit calculated under this chapter, of a Wisconsin net operating loss
14carried forward, of a Wisconsin net business loss carried forward or of a capital loss
15carried forward under this chapter.
AB2-ASA2,97 16Section 97 . 71.76 (2) of the statutes is created to read:
AB2-ASA2,43,2517 71.76 (2) In the case of any partnership adjustments, as defined under section
186241 of the Internal Revenue Code and including adjustments under section 6225
19of the Internal Revenue Code, the partnership and its partners shall report such
20changes or corrections to the department within 180 days after the final
21determination by the internal revenue service and shall concede the accuracy of such
22determination or state how the determination is erroneous. The partnership and its
23partners shall submit amended returns, as applicable, for each reviewed year, as
24defined under section 6225 of the Internal Revenue Code, to which such partnership
25adjustments relate.
AB2-ASA2,98
1Section 98. 71.77 (7) (b) of the statutes is amended to read:
AB2-ASA2,44,82 71.77 (7) (b) If notice of assessment or refund is given to the taxpayer within
390 180 days of the date on which the department receives a report from the taxpayer
4under s. 71.76 or within such other period specified in a written agreement entered
5into prior to the expiration of such 90 180 days by the taxpayer and the department.
6If the taxpayer does not report to the department as required under s. 71.76, the
7department may make an assessment against the taxpayer or refund to the taxpayer
8within 4 years after discovery by the department.
AB2-ASA2,99 9Section 99 . 71.83 (1) (a) 6. of the statutes is amended to read:
AB2-ASA2,44,1510 71.83 (1) (a) 6. `Retirement plans.' Any natural person who is liable for a
11penalty for federal income tax purposes under section 72 (m) (5), (q), (t), and (v), 4973,
124974, 4975, or 4980A of the Internal Revenue Code is liable for 33 percent of the
13federal penalty unless the income received is exempt from taxation under s. 71.05
14(1) (a) or (ae) (6) (b) 54. The penalties provided under this subdivision shall be
15assessed, levied, and collected in the same manner as income or franchise taxes.
AB2-ASA2,100 16Section 100. 73.0305 of the statutes is amended to read:
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