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LRBa0182/1
JK:cdc&cjs
2021 - 2022 LEGISLATURE
SENATE AMENDMENT 1,
TO ASSEMBLY BILL 2
February 16, 2021 - Offered by Senators Ringhand, Agard, Bewley, Carpenter,
Erpenbach, Johnson, Larson, Pfaff, Roys, Smith and Wirch.
AB2-SA1,1,11 At the locations indicated, amend the bill as follows:
AB2-SA1,1,2 21. Page 15, line 9: after that line insert:
AB2-SA1,1,3 3 Section 25m. 71.05 (1) (h) of the statutes is created to read:
AB2-SA1,1,114 71.05 (1) (h) Wisconsin grants awarded during and related to the pandemic.
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 and income in the form of
7a grant issued by a state agency or the Wisconsin Economic Development
8Corporation during and related to the COVID-19 pandemic, including grants
9awarded under the ethnic minority emergency grant program. Amounts otherwise
10deductible under this chapter that are paid directly or indirectly with the grant
11money are deductible.”.
AB2-SA1,1,12 122. Page 30, line 2: after that line insert:
AB2-SA1,2,2
1 Section 61d. 71.26 (3) (ag) of the statutes is renumbered 71.26 (3) (ag) (intro.)
2and amended to read:
AB2-SA1,2,43 71.26 (3) (ag) (intro.) Section 61 (relating to the definition of gross income) is
4modified to exclude income the following:
AB2-SA1,2,10 51. Income received by the original policyholder or original certificate holder
6who has a catastrophic or life-threatening illness or condition from the sale of a life
7insurance policy or certificate, or the sale of the death benefit under a life insurance
8policy or certificate, under a life settlement contract, as defined in s. 632.69 (1) (k).
9In this paragraph, “catastrophic or life-threatening illness or condition" includes
10AIDS, as defined in s. 49.686 (1) (a), and HIV infection, as defined in s. 49.686 (1) (d).
AB2-SA1,61e 11Section 61e. 71.26 (3) (ag) 2. of the statutes is created to read:
AB2-SA1,2,1812 71.26 (3) (ag) 2. Income received in the form of a grant issued by the state with
13moneys received from the coronavirus relief fund authorized under 42 USC 801 and
14income in the form of a grant issued by a state agency or the Wisconsin Economic
15Development Corporation during and related to the COVID-19 pandemic, including
16grants awarded under the ethnic minority emergency grant program. Amounts
17otherwise deductible under this chapter that are paid directly or indirectly with the
18grant money are deductible.
AB2-SA1,61f 19Section 61f. 71.26 (3) (L) of the statutes is amended to read:
AB2-SA1,3,1220 71.26 (3) (L) Section 265 is excluded and replaced by the rule that any amount
21otherwise deductible under this chapter that is directly or indirectly related to
22income wholly exempt from taxes imposed by this chapter or to losses from the sale
23or other disposition of assets the gain from which would be exempt under this
24paragraph if the assets were sold or otherwise disposed of at a gain is not deductible.
25In this paragraph, “wholly exempt income", for corporations subject to franchise or

1income taxes, includes amounts received from affiliated or subsidiary corporations
2for interest, dividends or capital gains that, because of the degree of common
3ownership, control or management between the payor and payee, are not subject to
4taxes under this chapter. In this paragraph, “wholly exempt income", for
5corporations subject to income taxation under this chapter, also includes interest on
6obligations of the United States. In this paragraph, “wholly exempt income" does not
7include income excludable, not recognized, exempt or deductible under specific
8provisions of this chapter. If any expense or amount otherwise deductible is
9indirectly related both to wholly exempt income or loss and to other income or loss,
10a reasonable proportion of the expense or amount shall be allocated to each type of
11income or loss, in light of all the facts and circumstances. This paragraph does not
12apply to the exclusion under par. (ag) 2.
”.
AB2-SA1,3,13 133. Page 33, line 21: after that line insert:
AB2-SA1,3,14 14 Section 70m. 71.34 (1k) (af) of the statutes is created to read:
AB2-SA1,3,2215 71.34 (1k) (af) Section 61 of the Internal Revenue Code is modified so that
16income received in the form of a grant issued by the state with moneys received from
17the coronavirus relief fund authorized under 42 USC 801 and income in the form of
18a grant issued by a state agency or the Wisconsin Economic Development
19Corporation during and related to the COVID-19 pandemic, including grants
20awarded under the ethnic minority emergency grant program, is not taxable income.
21Amounts otherwise deductible under this chapter that are paid directly or indirectly
22with the grant money are deductible.”.
AB2-SA1,3,23 234. Page 37, line 3: after that line insert:
AB2-SA1,3,24 24 Section 80m. 71.45 (1) (d) of the statutes is created to read:
AB2-SA1,4,7
171.45 (1) (d) Income received in the form of a grant issued by the state with
2moneys received from the coronavirus relief fund authorized under 42 USC 801 and
3income in the form of a grant issued by a state agency or the Wisconsin Economic
4Development Corporation during and related to the COVID-19 pandemic, including
5grants awarded under the ethnic minority emergency grant program. Amounts
6otherwise deductible under this chapter that are paid directly or indirectly with the
7grant money are deductible.
AB2-SA1,80n 8Section 80n. 71.45 (2) (a) 22. of the statutes is created to read:
AB2-SA1,4,169 71.45 (2) (a) 22. By subtracting from federal taxable income, to the extent
10included in federal taxable income, income received in the form of a grant issued by
11the state with moneys received from the coronavirus relief fund authorized under 42
12USC 801
and income in the form of a grant issued by a state agency or the Wisconsin
13Economic Development Corporation during and related to the COVID-19 pandemic,
14including grants awarded under the ethnic minority emergency grant program.
15Amounts otherwise deductible under this chapter that are paid directly or indirectly
16with the grant money are deductible.”.
AB2-SA1,4,17 175. Page 52, line 25: after that line insert:
AB2-SA1,4,20 18(6m) Income from grants. The treatment of ss. 71.05 (1) (h), 71.26 (3) (ag) 2.
19and (L), 71.34 (1k) (af), and 71.45 (1) (d) and (2) (a) 22. first applies to taxable years
20beginning after December 31, 2019.”.
AB2-SA1,4,2121 (End)
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