AB2,34,65 71.42 (2) (j) 3. n. Section 102 of division M and sections 110, 111, and 116 (b)
6of division O of P.L. 116-94.
AB2,75 7Section 75 . 71.42 (2) (k) 3. of the statutes is amended to read:
AB2,34,138 71.42 (2) (k) 3. For purposes of this paragraph, “Internal Revenue Code" does
9not include amendments to the federal Internal Revenue Code enacted after
10December 31, 2016, except that “Internal Revenue Code” includes sections 11024,
1111025, and 13543 of P.L. 115-97; sections 40307 and 40413 of P.L. 115-123; and
12section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L.
13116-94
.
AB2,76 14Section 76 . 71.42 (2) (L) 1. of the statutes is amended to read:
AB2,34,1815 71.42 (2) (L) 1. For taxable years beginning after December 31, 2017, and
16before January 1, 2021,
“Internal Revenue Code" means the federal Internal
17Revenue Code as amended to December 31, 2017, except as provided in subds. 2. to
184. and s. 71.98 and subject to subd. 5.
AB2,77 19Section 77. 71.42 (2) (L) 3. of the statutes is amended to read:
AB2,35,220 71.42 (2) (L) 3. For purposes of this paragraph, “Internal Revenue Code" does
21not include amendments to the federal Internal Revenue Code enacted after
22December 31, 2017, except that “Internal Revenue Code” includes sections 40307
23and 40413 of P.L. 115-123; section 1203 of P.L. 116-25; section 102 of division M,
24sections 108, 110, 111, 115, 116 (a) and (b), 204, 206, 302, and 601 of division O, section
251302 of division P, and sections 131, 202 (d), 204 (c), 205, and 301 of division Q of P.L.

1116-94; section 2 (b) of P.L. 116-98; and
sections 1106, 2202, 2203, 2204, 2205, 2206,
22307, 3608, 3609, 3701, and 3702 of division A of P.L. 116-136.
AB2,78 3Section 78 . 71.42 (2) (L) 5. of the statutes is amended to read:
AB2,35,94 71.42 (2) (L) 5. For purposes of this paragraph, the provisions of federal public
5laws that directly or indirectly affect the Internal Revenue Code, as defined in this
6paragraph, apply for Wisconsin purposes at the same time as for federal purposes,
7except that changes made by P.L. 115-63 and sections 11026, 11027, 11028, 13207,
813306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L. 115-97
9first apply for taxable years beginning after December 31, 2017
.
AB2,79 10Section 79 . 71.42 (2) (m) of the statutes is created to read:
AB2,35,1311 71.42 (2) (m) 1. For taxable years beginning after December 31, 2020, “Internal
12Revenue Code" means the federal Internal Revenue Code as amended to December
1331, 2019, except as provided in subds. 2. and 3. and s. 71.98 and subject to subd. 4.
AB2,36,1114 2. For purposes of this paragraph, “Internal Revenue Code" does not include
15the following provisions of federal public laws for taxable years beginning after
16December 31, 2020: section 13113 of P.L. 103-66; sections 1, 3, 4, and 5 of P.L.
17106-519; sections 101, 102, and 422 of P.L. 108-357; sections 1310 and 1351 of P.L.
18109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of
19P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L.
20110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section
2115351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections
22312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251,
231501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L.
24111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L.
25111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and

1411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division
2P of P.L. 114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to
3171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113; sections 11011, 11012,
413201 (a) to (e) and (g), 13206, 13221, 13301, 13304 (a), (b), and (d), 13531, 13601,
513801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215,
614221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97; sections 40304, 40305,
740306, and 40412 of P.L. 115-123; section 101 (c) of division T of P.L. 115-141;
8sections 101 (d) and (e), 102, 201 to 207, 301, 302, and 401 (a) (47) and (195), (b) (13),
9(17), (22) and (30), and (d) (1) (D) (v), (vi), and (xiii) and (xvii) (II) of division U of P.L.
10115-141; and section 301 of division O and sections 101, 102, 103, 104, 114, 115, 116,
11117, 118, 130, 132, and 145 of division Q of P.L. 116-94.
AB2,36,1712 3. For purposes of this paragraph, “Internal Revenue Code" does not include
13amendments to the federal Internal Revenue Code enacted after December 31, 2019,
14except that "Internal Revenue Code" includes sections 7001, 7002, 7003, 7004, and
157005 of division G of P.L. 116-127 and sections 1106, 2201, 2202, 2203, 2204, 2205,
162206, 2301, 2302, 2303, 2305, 2307, 2308, 3606, 3608, 3609, 3701, 3702, and 4007 of
17division A of P.L. 116-136.
AB2,36,2518 4. For purposes of this paragraph, the provisions of federal public laws that
19directly or indirectly affect the Internal Revenue Code, as defined in this paragraph,
20apply for Wisconsin purposes at the same time as for federal purposes, except that
21changes made by section 13516 of P.L. 115-97, sections 20101, 20102, 20104, 20201,
2240201, 40202, 40203, 40308, 40309, 40311, 40414, 41101, 41107, 41115, and 41116
23of P.L. 115-123, section 101 (a), (b), and (h) of division U of P.L. 115-141, section 1122
24of P.L. 116-92, sections 201, 202, and 204 (a) and (b) of division Q of P.L. 116-94, and
25section 2 of P.L. 116-98 apply for taxable years beginning after December 31, 2020.
AB2,80
1Section 80. 71.42 (2p) of the statutes is created to read:
AB2,37,32 71.42 (2p) For purposes of s. 71.42 (2) (b), 2013 stats., “Internal Revenue Code"
3includes section 109 of division U of P.L. 115-141.
AB2,81 4Section 81. 71.47 (6) (h) of the statutes is amended to read:
AB2,37,165 71.47 (6) (h) Any person, including a nonprofit entity described in section 501
6(c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under
7par. (a) 2m. or 3., in whole or in part, to another person who is subject to the taxes
8imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
9transfer, and submits with the notification a copy of the transfer documents, and the
10department certifies ownership of the credit with each transfer. The transferor may
11file a claim for more than one taxable year on a form prescribed by the department
12to compute all years of the credit under par. (a) 2m. or 3., at the time of the transfer
13request. The transferee may first use the credit to offset tax in the taxable year of the
14transferor in which the transfer occurs, and may use the credit only to offset tax in
15taxable years otherwise allowed to be claimed and carried forward by the original
16claimant.
AB2,82 17Section 82. 71.52 (1g) of the statutes is created to read:
AB2,38,218 71.52 (1g) “Earned income” means wages, salaries, tips, and other employee
19compensation that may be included in federal adjusted gross income for the taxable
20year, plus the amount of the claimant's net earnings from self-employment for the
21taxable year determined with regard to the deduction allowed to the taxpayer by
22section 164 (f) of the Internal Revenue Code. For purposes of this subsection, a
23claimant's earned income is computed without regard to any marital property laws
24and 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:
AB2,38,33 (a) Any amount received as a pension or annuity.
AB2,38,44(b) Any amount to which section 871 (a) of the Internal Revenue Code applies.
AB2,38,65 (c) Any amount received for services provided by an individual while the
6individual is an inmate at a penal institution.
AB2,38,117 (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.
AB2,83 12Section 83. 71.55 (10) of the statutes is amended to read:
AB2,38,2113 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).
AB2,84 22Section 84. 71.76 of the statutes is renumbered 71.76 (1) and amended to read:
AB2,39,1523 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.
AB2,85 16Section 85 . 71.76 (2) of the statutes is created to read: