SB45,696,72171.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
22preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
23beyond under s. 71.613, homestead credit property tax and rent rebate under subch.

1VIII, jobs tax credit under s. 71.07 (3q), business development credit under s. 71.07
2(3y), research credit under s. 71.07 (4k) (e) 2. a., film production services credit
3under s. 71.07 (5f) (b) 2., veterans and surviving spouses property tax credit under
4s. 71.07 (6e), enterprise zone jobs credit under s. 71.07 (3w), electronics and
5information technology manufacturing zone credit under s. 71.07 (3wm), earned
6income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and
7taxes withheld under subch. X.

SB45,696,12971.125 (1) Except as provided in sub. (2), the tax imposed by this chapter on
10individuals and the rates under s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2) shall
11apply to the Wisconsin taxable income of estates or trusts, except nuclear
12decommissioning trust or reserve funds, and that tax shall be paid by the fiduciary.

SB45,696,181471.125 (2) Each electing small business trust, as defined in section 1361 (e)
15(1) of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06
16(1), (1m), (1n), (1p), or (1q), or (1r), whichever taxable year is applicable, on its
17income as computed under section 641 of the Internal Revenue Code, as modified by
18s. 71.05 (6) to (12), (19) and (20).

SB45,696,232071.17 (6) Funeral trusts. If a qualified funeral trust makes the election
21under section 685 of the Internal Revenue Code for federal income tax purposes,
22that election applies for purposes of this chapter and each trust shall compute its
23own tax and shall apply the rates under s. 71.06 (1), (1m), (1n), (1p), or (1q), or (1r).

SB45,697,5271.21 (4) (a) The amount of the credits computed by a partnership under s.
371.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n),
4(5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8m), and (10) and passed through to
5partners shall be added to the partnership’s income.

SB45,697,8771.21 (6) (d) 3. Except as provided in s. 71.07 (7) (b) 3. and (9m) (f) 2. a., the
8tax credits under this chapter may not be claimed by the partnership.

SB45,697,141071.26 (1) (b) Political units. Income received by the United States, the state
11and all counties, cities, villages, towns, school districts, technical college districts,
12joint local water authorities created under s. 66.0823, transit authorities created
13under s. 66.1039, long-term care districts under s. 46.2895 or other political units of
14this state.

SB45,697,211671.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
17(1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (5f), (5g), (5h), (5i), (5j), (5k),
18(5r), (5rm), (6n), (8m), and (10) and not passed through by a partnership, limited
19liability company, or tax-option corporation that has added that amount to the
20partnership’s, limited liability company’s, or tax-option corporation’s income under
21s. 71.21 (4) or 71.34 (1k) (g).

SB45,698,82371.26 (3) (j) Sections 243, 244, 245, 245A, 246 and 246A are excluded and

1replaced by the rule that corporations may deduct from income dividends received
2from a corporation with respect to its common stock if the corporation receiving the
3dividends owns, directly or indirectly, during the entire taxable year at least 70
4percent of the total combined voting stock of the payor corporation. In this
5paragraph, “dividends received” means gross dividends minus taxes on those
6dividends paid to a foreign nation and claimed as a deduction under this chapter.
7The same dividends may not be deducted more than once and may not be used in
8the determination of a net business loss under ss. 71.26 (4) and 71.45 (4).

SB45,699,51071.26 (4) (a) Except as provided in par. (b) and s. 71.80 (25), a corporation,
11except a tax-option corporation or an insurer to which s. 71.45 (4) applies, may offset
12against its Wisconsin net business income any Wisconsin net business loss incurred
13in any of the 20 immediately preceding taxable years, if the corporation was subject
14to taxation under this chapter in the taxable year in which the loss was incurred, to
15the extent not offset by other items of Wisconsin income in the loss year and by
16Wisconsin net business income of any year between the loss year and the taxable
17year for which an offset is claimed. For purposes of this subsection, Wisconsin net
18business income or loss shall consist of all the income attributable to the operation
19of a trade or business in this state, less the business expenses allowed as deductions
20in computing net income, except that the dividends received deduction under sub.
21(3) (j) may not be used in the determination of a net business loss. The Wisconsin
22net business income or loss of corporations engaged in business within and without
23the state shall be determined under s. 71.25 (6) and (10) to (12). Nonapportionable

1losses having a Wisconsin situs under s. 71.25 (5) (b) shall be included in Wisconsin
2net business loss; and nonapportionable income having a Wisconsin situs under s.
371.25 (5) (b), whether taxable or exempt, shall be included in other items of
4Wisconsin income and Wisconsin net business income for purposes of this
5subsection.