AB2-ASA3,31,1817 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-ASA3,63 19Section 63. 71.26 (3) (ag) of the statutes is renumbered 71.26 (3) (ag) (intro.)
20and amended to read:
AB2-ASA3,31,2221 71.26 (3) (ag) (intro.) Section 61 (relating to the definition of gross income) is
22modified to exclude income the following:
AB2-ASA3,32,3 231. 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-ASA3,64 4Section 64. 71.26 (3) (ag) 2. of the statutes is created to read:
AB2-ASA3,32,75 71.26 (3) (ag) 2. Income received in the form of allocations issued by this state
6with moneys received from the coronavirus relief fund authorized under 42 USC 801
7to be used for any of the following purposes:
AB2-ASA3,32,88 a. Broadband expansion.
AB2-ASA3,32,99 b. Privately owned movie theater grants.
AB2-ASA3,32,1010 c. A nonprofit grant program.
AB2-ASA3,32,1111 d. A tourism grants program.
AB2-ASA3,32,1212 e. A cultural organization grant program.
AB2-ASA3,32,1313 f. Music and performance venue grants.
AB2-ASA3,32,1414 g. Lodging industry grants.
AB2-ASA3,32,1515 h. Low-income home energy assistance.
AB2-ASA3,32,1616 i. A rental assistance program.
AB2-ASA3,32,1717 j. Supplemental child care grants.
AB2-ASA3,32,1818 k. A food insecurity initiative.
AB2-ASA3,32,1919 L. A farm support program.
AB2-ASA3,32,2020 m. Grants to small businesses.
AB2-ASA3,32,2121 n. Ethanol industry assistance.
AB2-ASA3,32,2222 o. Wisconsin Eye.
AB2-ASA3,65 23Section 65. 71.26 (3) (L) of the statutes is amended to read:
AB2-ASA3,33,1624 71.26 (3) (L) Section 265 is excluded and replaced by the rule that any amount
25otherwise deductible under this chapter that is directly or indirectly related to

1income wholly exempt from taxes imposed by this chapter or to losses from the sale
2or other disposition of assets the gain from which would be exempt under this
3paragraph if the assets were sold or otherwise disposed of at a gain is not deductible.
4In this paragraph, “wholly exempt income", for corporations subject to franchise or
5income taxes, includes amounts received from affiliated or subsidiary corporations
6for interest, dividends or capital gains that, because of the degree of common
7ownership, control or management between the payor and payee, are not subject to
8taxes under this chapter. In this paragraph, “wholly exempt income", for
9corporations subject to income taxation under this chapter, also includes interest on
10obligations of the United States. In this paragraph, “wholly exempt income" does not
11include income excludable, not recognized, exempt or deductible under specific
12provisions of this chapter. If any expense or amount otherwise deductible is
13indirectly related both to wholly exempt income or loss and to other income or loss,
14a reasonable proportion of the expense or amount shall be allocated to each type of
15income or loss, in light of all the facts and circumstances. This paragraph does not
16apply to the exclusion under par. (ag) 2.
AB2-ASA3,66 17Section 66. 71.28 (6) (h) of the statutes is amended to read:
AB2-ASA3,34,418 71.28 (6) (h) Any person, including a nonprofit entity described in section 501
19(c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under
20par. (a) 2m. or 3., in whole or in part, to another person who is subject to the taxes
21imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
22transfer, and submits with the notification a copy of the transfer documents, and the
23department certifies ownership of the credit with each transfer. The transferor may
24file a claim for more than one taxable year on a form prescribed by the department
25to compute all years of the credit under par. (a) 2m. or 3., at the time of the transfer

1request. The transferee may first use the credit to offset tax in the taxable year of the
2transferor in which the transfer occurs, and may use the credit only to offset tax in
3taxable years otherwise allowed to be claimed and carried forward by the original
4claimant.
AB2-ASA3,67 5Section 67 . 71.34 (1g) (c), (d), (e), (f), (g), (h) and (i) of the statutes are repealed.
AB2-ASA3,68 6Section 68 . 71.34 (1g) (j) 3. m. of the statutes is created to read:
AB2-ASA3,34,87 71.34 (1g) (j) 3. m. Sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of
8division U of P.L. 115-141.
AB2-ASA3,69 9Section 69 . 71.34 (1g) (j) 3. n. of the statutes is created to read: