AB2-ASA3,19,4
171.05 (6) (b) 19. dm. For taxable years beginning after December 31, 2020,
2reduce the amount calculated under subd. 19. b. or cm. to the person's aggregate
3wages, salary, tips, unearned income, and net earnings from a trade or business that
4are taxable by this state.
AB2-ASA3,34 5Section 34 . 71.05 (6) (b) 20., 36., 37., 39., 40. and 41. of the statutes are
6repealed.
AB2-ASA3,35 7Section 35 . 71.05 (6) (b) 54. of the statutes is created to read:
AB2-ASA3,19,138 71.05 (6) (b) 54. Except for a payment that is exempt under sub. (1) (a), (am),
9or (an), or that is exempt as a railroad retirement benefit, for taxable years beginning
10after December 31, 2020, up to $5,000 of payments or distributions received each
11year by an individual from a qualified retirement plan under the Internal Revenue
12Code or from an individual retirement account established under 26 USC 408, if all
13of the following conditions apply:
AB2-ASA3,19,1514 a. The individual is at least 65 years of age before the close of the taxable year
15to which the exemption claim relates.
AB2-ASA3,19,1816 b. If the individual is single or files as head of household, his or her federal
17adjusted gross income in the year to which the exemption claim relates is less than
18$15,000.
AB2-ASA3,19,2019 c. If the individual is married and is a joint filer, the couple's federal adjusted
20gross income in the year to which the exemption claim relates is less than $30,000.
AB2-ASA3,19,2321 d. If the individual is married and files a separate return, the sum of both
22spouses' federal adjusted gross income in the year to which the exemption claim
23relates is less than $30,000.
AB2-ASA3,36 24Section 36 . 71.07 (5) (a) 15. of the statutes is amended to read:
AB2-ASA3,20,6
171.07 (5) (a) 15. The amount claimed as a deduction for medical care insurance
2under section 213 of the Internal Revenue Code that is exempt from taxation under
3s. 71.05 (6) (b) 17. to 20. 19., 35., 36., 37., 38., 39., 40., 41., and 42. and the amount
4claimed as a deduction for a long-term care insurance policy under section 213 (d)
5(1) (D) of the Internal Revenue Code, as defined in section 7702B (b) of the Internal
6Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 26.
AB2-ASA3,37 7Section 37. 71.07 (9m) (h) of the statutes is amended to read:
AB2-ASA3,20,198 71.07 (9m) (h) Any person, including a nonprofit entity described in section 501
9(c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under
10par. (a) 2m. or 3., in whole or in part, to another person who is subject to the taxes
11imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
12transfer, and submits with the notification a copy of the transfer documents, and the
13department certifies ownership of the credit with each transfer. The transferor may
14file a claim for more than one taxable year on a form prescribed by the department
15to compute all years of the credit under par. (a) 2m. or 3., at the time of the transfer
16request. The transferee may first use the credit to offset tax in the taxable year of
17the transferor in which the transfer occurs and may use the credit only to offset tax
18in taxable years otherwise allowed to be claimed and carried forward by the original
19claimant.
AB2-ASA3,38 20Section 38 . 71.22 (4) (c), (d), (e), (f), (g), (h) and (i) of the statutes are repealed.
AB2-ASA3,39 21Section 39 . 71.22 (4) (j) 3. m. of the statutes is created to read:
AB2-ASA3,20,2322 71.22 (4) (j) 3. m. Sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of
23division U of P.L. 115-141.
AB2-ASA3,40 24Section 40 . 71.22 (4) (j) 3. n. of the statutes is created to read:
AB2-ASA3,21,2
171.22 (4) (j) 3. n. Section 102 of division M and sections 110, 111, and 116 (b)
2of division O of P.L. 116-94.
AB2-ASA3,41 3Section 41 . 71.22 (4) (k) 3. of the statutes is amended to read:
AB2-ASA3,21,94 71.22 (4) (k) 3. For purposes of this paragraph, “Internal Revenue Code" does
5not include amendments to the federal Internal Revenue Code enacted after
6December 31, 2016, except that “Internal Revenue Code” includes sections 11024,
711025, and 13543 of P.L. 115-97; sections 40307 and 40413 of P.L. 115-123, sections
8101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of 115-141; and section
9102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94
.
AB2-ASA3,42 10Section 42 . 71.22 (4) (L) 1. of the statutes is amended to read:
AB2-ASA3,21,1511 71.22 (4) (L) 1. For taxable years beginning after December 31, 2017, and
12before January 1, 2021,
“Internal Revenue Code" means the federal Internal
13Revenue Code as amended to December 31, 2017, except as provided in subds. 2. and
143. and subject to subd. 4., and except as provided in sub. (4m) and ss. 71.26 (2) (b) and
15(3), 71.34 (1g), 71.42 (2), and 71.98.
AB2-ASA3,43 16Section 43. 71.22 (4) (L) 3. of the statutes is amended to read:
AB2-ASA3,22,317 71.22 (4) (L) 3. For purposes of this paragraph, “Internal Revenue Code" does
18not include amendments to the federal Internal Revenue Code enacted after
19December 31, 2017, except that “Internal Revenue Code” includes sections 40307,
2040413, and 41113 of P.L. 115-123; sections 101 (m), (n), (o), (p), and (q), 104 (a), 109,
21401 (a) (54) and (b) (15) (A), (B), and (C), 19, 20, 23, 26, 27, and 28 of division U of P.L.
22115-141; sections 102 and 104 of division M, sections 102, 103, 106, 107, 108, 109,
23110, 111, 113, 114, 115, 116, 201, 204, 205, 206, 302, 401, and 601 of division O, section
241302 of division P, and sections 131, 202 (d), and 205 of division Q of P.L. 116-94;

25sections 1106, 2202, 2203, 2204, 2205, 2206, 2307, 3608, 3609, 3701, and 3702 of

1division A of P.L. 116-136; and sections 202, 208, 209, 211, and 214 of division EE and
2sections 276 (a) and (b), 277, 278 (a), (b), (c), and (d), 280, and 285 of division N of P.L.
3116-260
.
AB2-ASA3,44 4Section 44 . 71.22 (4) (L) 4. of the statutes is amended to read:
AB2-ASA3,22,105 71.22 (4) (L) 4. For purposes of this paragraph, the provisions of federal public
6laws that directly or indirectly affect the Internal Revenue Code, as defined in this
7paragraph, apply for Wisconsin purposes at the same time as for federal purposes,
8except that changes made by P.L. 115-63 and sections 11026, 11027, 11028, 13207,
913306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L. 115-97
10first apply for taxable years beginning after December 31, 2017
.
AB2-ASA3,45 11Section 45 . 71.22 (4) (m) of the statutes is created to read:
AB2-ASA3,22,1512 71.22 (4) (m) 1. For taxable years beginning after December 31, 2020, “Internal
13Revenue Code" means the federal Internal Revenue Code as amended to December
1431, 2020, except as provided in subds. 2. and 3. and subject to subd. 4., and except
15as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34 (1g), 71.42 (2), and 71.98.
AB2-ASA3,23,1416 2. For purposes of this paragraph, “Internal Revenue Code" does not include
17the following provisions of federal public laws for taxable years beginning after
18December 31, 2020: section 13113 of P.L. 103-66; sections 1, 3, 4, and 5 of P.L.
19106-519; sections 101, 102, and 422 of P.L. 108-357; sections 1310 and 1351 of P.L.
20109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of
21P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L.
22110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section
2315351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections
24312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251,
251501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L.

1111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L.
2111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and
3411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division
4P of P.L. 114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to
5171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113; sections 11011, 11012,
613201 (a) to (e) and (g), 13206, 13221, 13301, 13304 (a), (b), and (d), 13531, 13601,
713801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215,
814221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97; sections 40304, 40305,
940306, and 40412 of P.L. 115-123; section 101 (c) of division T of P.L. 115-141;
10sections 101 (d) and (e), 102, 201 to 207, 301, 302, and 401 (a) (47) and (195), (b) (13),
11(17), (22) and (30), and (d) (1) (D) (v), (vi), and (xiii) and (xvii) (II) of division U of P.L.
12115-141; sections 104, 114, 115, 116, 130, and 145 of division Q of P.L. 116-94;
13sections 2304 and 2306 of P.L. 116-136; and sections 111, 114, 115, 116, 118 (a) and
14(d), 133, 137, 138, and 210 of division EE of P.L. 116-260.
AB2-ASA3,23,1615 3. For purposes of this paragraph, “Internal Revenue Code" does not include
16amendments to the federal Internal Revenue Code enacted after December 31, 2020.