Wisconsin Bill Grants Tax Deduction for Forgiven PPP Loans

Dated Feb. 19, 2021

Citations: A.B. 2; Act 1

SUMMARY BY TAX ANALYSTS

Wisconsin A.B. 2, signed into law as Act 1 in response to COVID-19, conforms the state's tax code to provisions in the federal Consolidated Appropriations Act, 2021 (P.L. 116-260), including the tax treatment of forgiven Paycheck Protection Program loans, allowing eligible businesses to deduct the forgiven amount of those loans from their state tax burden.

Gov. Tony Evers (D) announced he had signed the bill in a press release.

Date of enactment:
Date of publication*:

2021 WISCONSIN ACT

AN ACT to repeal 71.01 (6) (c), (d), (e), (f), (g), (h) and (i), 71.05 (1) (ae), 71.05 (6) (b) 17. and 18., 71.05 (6) (b) 20., 36., 37., 39., 40. and 41., 71.22 (4) (c), (d), (e), (f), (g), (h) and (i), 71.22 (4m) (c), (d), (e), (f), (g), (h) and (i), 71.26 (2) (b) 3., 4., 5., 6., 7., 8. and 9., 71.34 (1g) (c), (d), (e), (f), (g), (h) and (i), 71.42 (2) (c), (d), (e), (f), (g), (h) and (i), 77.51 (13gm) (a) 1. and 2., 77.51 (13gm) (d) 1. and 77.51 (13gm) (d) 3. and 4.; to renumber and amend 71.05 (6) (b) 4., 71.26 (3) (ag), 71.76 and 77.51 (13gm) (a) (intro.); to amend 48.561 (3) (a) 3., 48.561 (3) (b), 59.25 (3) (i), 66.0602 (3) (h) 2. a., 66.0602 (6) (a), 66.0602 (6) (b), 66.1105 (6m) (d) 4., 70.46 (4), 70.855 (4) (b), 70.995 (8) (c) 1., 70.995 (8) (d), 70.995 (14) (b), 71.01 (6) (k) 3., 71.01 (6) (L) 1., 71.01 (6) (L) 3., 71.01 (6) (L) 4., 71.05 (1) (am), 71.05 (1) (an), 71.05 (6) (b) 19. c., 71.05 (6) (b) 19. d., 71.07 (5) (a) 15., 71.07 (9m) (h), 71.22 (4) (k) 3., 71.22 (4) (L) 1., 71.22 (4) (L) 3., 71.22 (4) (L) 4., 71.22 (4m) (k) 3., 71.22 (4m) (L) 1., 71.22 (4m) (L) 3., 71.22 (4m) (L) 4., 71.26 (2) (b) 10. d., 71.26 (2) (b) 11. d., 71.26 (2) (b) 12. a., 71.26 (2) (b) 12. d., 71.26 (2) (b) 12. e., 71.26 (3) (L), 71.28 (6) (h), 71.34 (1g) (k) 3., 71.34 (1g) (L) 1., 71.34 (1g) (L) 3., 71.34 (1g) (L) 4., 71.42 (2) (k) 3., 71.42 (2) (L) 1., 71.42 (2) (L) 3., 71.42 (2) (L) 5., 71.47 (6) (h), 71.55 (10), 71.77 (7) (b), 71.83 (1) (a) 6., 71.98 (3), 73.0305, 73.09 (4) (c), 73.09 (5), 74.315 (1), 74.315 (2), 74.315 (3), 76.04 (1), 76.07 (1), 76.075, 76.13 (1), 76.13 (3), 76.28 (4) (b), 76.28 (11), 76.39 (4) (d), 76.48 (5), 77.51 (13gm) (b), 77.51 (13gm) (c), 77.51 (13gm) (d) 2., 77.51 (13gm) (d) 5., 77.52 (2m) (b), 77.54 (6) (am) 2., 77.54 (9a) (f), 77.54 (9m), 79.02 (1), 79.02 (2) (b), 79.02 (3) (a), 79.02 (3) (e), 79.035 (6), 79.035 (7) (b), 79.05 (1) (am) and 79.05 (2m); and to create 70.11 (4) (b) 3., 71.01 (6) (j) 3. m., 71.01 (6) (j) 3. n., 71.01 (6) (m), 71.01 (7g), 71.05 (1) (h), 71.05 (1) (hn), 71.05 (6) (b) 4. a. to c., 71.05 (6) (b) 19. cm., 71.05 (6) (b) 19. dm., 71.05 (6) (b) 54., 71.22 (4) (j) 3. m., 71.22 (4) (j) 3. n., 71.22 (4) (m), 71.22 (4m) (j) 3. m., 71.22 (4m) (j) 3. n., 71.22 (4m) (m), 71.22 (5g), 71.26 (2) (b) 13., 71.26 (2) (b) 14., 71.26 (3) (ag) 2., 71.26 (3) (ag) 3., 71.34 (1g) (j) 3. m., 71.34 (1g) (j) 3. n., 71.34 (1g) (m), 71.34 (1k) (af), 71.34 (1k) (ah), 71.34 (1u), 71.42 (2) (j) 3. m., 71.42 (2) (j) 3. n., 71.42 (2) (m), 71.42 (2p), 71.45 (1) (d), 71.45 (1) (dm), 71.45 (2) (a) 22., 71.45 (2) (a) 23., 71.52 (1g), 71.76 (2), 74.315 (1m) and 77.61 (5) (b) 8m. of the statutes; relating to: various changes to the laws administered and enforced by the Department of Revenue.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SECTION 1. 48.561 (3) (a) 3. of the statutes is amended to read:

48.561 (3) (a) 3. Through a deduction of $20,101,300 from any state payment due that county under s. 79.035, 79.04, or 79.08 79.02 (1), as provided in par. (b).

SECTION 2. 48.561 (3) (b) of the statutes is amended to read:

48.561 (3) (b) The department of administration shall collect the amount specified in par. (a) 3. from a county having a population of 750,000 or more by deducting all or part of that amount from any state payment due that county under s. 79.035, 79.04, or 79.08 79.02 (1). The department of administration shall notify the department of revenue, by September 15 of each year, of the amount to be deducted from the state payments due under s. 79.035, 79.04, or 79.08 79.02 (1). The department of administration shall credit all amounts collected under this paragraph to the appropriation account under s. 20.437 (1) (kw) and shall notify the county from which those amounts are collected of that collection. The department may not expend any moneys from the appropriation account under s. 20.437 (1) (cx) for providing services to children and families under s. 48.48 (17) until the amounts in the appropriation account under s. 20.437 (1) (kw) are exhausted.

SECTION 3. 59.25 (3) (i) of the statutes is amended to read:

59.25 (3) (i) Make annually, on the 3rd Monday of March, a certified statement, and forward the statement to each municipal clerk in the county, showing the amount of money paid from the county treasury during the year next preceding to each municipal treasurer in the county. The statement shall specify the date of each payment, the amount thereof and the account upon which the payment was made. It shall be unlawful for any county treasurer to pay to the treasurer of any town any money in the hands of the county treasurer belonging to the town from the 3rd Monday of March until 10 days after the annual town meeting except upon the written order of the town board.

SECTION 4. 66.0602 (3) (h) 2. a. of the statutes is amended to read:

66.0602(3)(h) 2. a. The total charges assessed by the joint fire department or the joint emergency medical services district for the current year increase, relative to the total charges assessed by the joint fire department or the joint emergency medical services district for the previous year, by a percentage that is less than or equal to the percentage change in the U.S. consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor, for the 12 months ending on September 30 August 31 of the year of the levy, plus 2 percent.

SECTION 5. 66.0602 (6) (a) of the statutes is amended to read:

66.0602 (6) (a) Reduce the amount of county and municipal aid payments the payment to the political sub division under s. 79.035 79.02 (1) in the following year by an amount equal to the amount of the penalized excess.

SECTION 6. 66.0602 (6) (b) of the statutes is amended to read:

66.0602 (6) (b) Ensure that the amount of any reductions in county and municipal aid payments under par. (a) lapses to the general fund.

SECTION 7. 66.1105 (6m) (d) 4. of the statutes is amended to read:

66.1105 (6m) (d) 4. If an annual report is not timely filed under par. (c), the department of revenue shall notify the city that the report is past due. If the city does not file the report within 60 days of the date on the notice, except as provided in this subdivision, the department shall charge the city a fee of $100 per day for each day that the report is past due, up to a maximum penalty of $6,000 per report. If the city does not pay within 30 days of issuance, the department of revenue shall reduce and withhold the amount of the shared revenue payments to the city under subch. I of ch. 79 s. 79.02 (1), in the following year, by an amount equal to the unpaid penalty.

SECTION 8. 70.11 (4) (b) 3. of the statutes is created to read:

70.11 (4) (b) 3. Leasing all or part of property described in par. (a) that is owned by a church or religious association or institution to an educational association or institution exempt under par. (a) does not render the property taxable, regardless of how the lessor uses the leasehold income.

SECTION 9. 70.46 (4) of the statutes is amended to read:

70.46 (4) No board of review may be constituted unless it includes at least one voting member who, within 2 years of the board's first meeting, has attended at least one member completes in each year a training session under s. 73.03 (55) and unless that member is the municipality's chief executive officer or that officer's designee. The municipal clerk shall provide an affidavit to the department of revenue stating whether the requirement under this subsection has been fulfilled.

SECTION 10. 70.855 (4) (b) of the statutes is amended to read:

70.855 (4) (b) If the department of revenue does not receive the fee imposed on a municipality under par. (a) by March 31 of the year following the department's determination under sub. (2) (b), the department shall reduce the distribution made to the municipality under s. 79.02 (2) (b) (1) by the amount of the fee and shall transfer that amount to the appropriation under s. 20.566 (2) (ga).

SECTION 11. 70.995 (8) (c) 1. of the statutes is amended to read:

70.995 (8) (c) 1. All objections to the amount, valuation, taxability, or change from assessment under this section to assessment under s. 70.32 (1) of property shall be first made in writing on a form prescribed by the department of revenue that specifies that the objector shall set forth the reasons for the objection, the objector's estimate of the correct assessment, and the basis under s. 70.32 (1) for the objector's estimate of the correct assessment. An objection shall be filed with the state board of assessors within the time prescribed in par. (b) 1. A $45 $200 fee shall be paid when the objection is filed unless a fee has been paid in respect to the same piece of property and that appeal has not been finally adjudicated. The objection is not filed until the fee is paid. Neither the state board of assessors nor the tax appeals commission may waive the requirement that objections be in writing. Persons who own land and improvements to that land may object to the aggregate value of that land and improvements to that land, but no person who owns land and improvements to that land may object only to the valuation of that land or only to the valuation of improvements to that land.

SECTION 12. 70.995 (8) (d) of the statutes is amended to read:

70.995 (8) (d) A municipality may file an objection with the state board of assessors to the amount, valuation, or taxability under this section or to the change from assessment under this section to assessment under s. 70.32 (1) of a specific property having a situs in the municipality, whether or not the owner of the specific property in question has filed an objection. Objection shall be made on a form prescribed by the department and filed with the board within the time prescribed in par. (b) 1. If the person assessed files an objection and the municipality affected does not file an objection, the municipalty affected may file an appeal to that objection within 15 days after the person's objection is filed. A $45 $200 filing fee shall be paid when the objection is filed unless a fee has been paid in respect to the same piece of property and that appeal has not been finally adjudicated. The objection is not filed until the fee is paid. The board shall forthwith notify the person assessed of the objection filed by the municipality.

SECTION 13. 70.995 (14) (b) of the statutes is amended to read:

70.995 (14) (b) If the department of revenue does not receive the fee imposed on a municipality under par. (a) by March 31 of each year, the department shall reduce the distribution made to the municipality under s. 79.02 (2)(b) (1) by the amount of the fee.

SECTION 14. 71.01 (6) (c), (d), (e), (f), (g), (h) and (i) of the statutes are repealed.

SECTION 15. 71.01 (6) (j) 3. m. of the statutes is created to read:

71.01 (6) (j) 3. m. Sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of P.L. 115-141.

SECTION 16. 71.01 (6) (j) 3. n. of the statutes is created to read:

71.01 (6) (j) 3. n. Section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94.

SECTION 17. 71.01 (6) (k) 3. of the statutes is amended to read:

71.01 (6) (k) 3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2016, except that “Internal Revenue Code” includes sections 11024, 11025, and 13543 of P.L. 115-97; sections 40307 and 40413 of P.L. 115-123; sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of P.L. 115-141; and section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94.

SECTION 18. 71.01 (6) (L) 1. of the statutes is amended to read:

71.01 (6) (L) 1. For taxable years beginning after December 31, 2017, and before January 1, 2021, for individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, “Internal Revenue Code” means the federal Internal Revenue Code as amended to December 31, 2017, except as provided in subds. 2. and 3. and s. 71.98 and subject to subd. 4.

SECTION 19. 71.01 (6) (L) 3. of the statutes is amended to read:

71.01 (6) (L) 3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2017, except that “Internal Revenue Code” includes sections 40307, 40413, and 41113 of P.L. 115-123; sections 101 (m), (n), (o), (p), and (q), 104 (a), 109, 401 (a) (54) and (b) (15) (A), (B), and (C), 19, 20, 23, 26, 27, and 28 of division U of P.L. 115-141; sections 102 and 104 of division M, sections 102, 103, 106, 107, 108, 109, 110, 111, 113, 114, 115, 116, 201, 204, 205, 206, 302, 401, and 601 of division O, section 1302 of division P, and sections 131, 202 (d), and 205 of division Q of P.L. 116-94; sections 1106, 2202, 2203, 2204, 2205, 2206, 2307, 3608, 3609, 3701, and 3702 of division A of P.L. 116-136; and sections 202, 208, 209, 211, and 214 of division EE and sections 276 (a) and (b), 277, 278 (a), (b), (c), and (d), 280, and 285 of division N of P.L. 116-260.

SECTION 20. 71.01 (6) (L) 4. of the statutes is amended to read:

71.01 (6) (L) 4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by P.L. 115-63 and sections 11026, 11027, 11028, 13207, 13306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L. 115-97 first apply for taxable years beginning after December 31, 2017.

SECTION 21. 71.01 (6) (m) of the statutes is created to read:

71.01 (6) (m) 1. For taxable years beginning after December 31, 2020, for individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, “Internal Revenue Code” means the federal Internal Revenue Code as amended to December 31, 2020, except as provided in subds. 2. and 3. and s. 71.98 and subject to subd. 4.

2. For purposes of this paragraph, “Internal Revenue Code” does not include the following provisions of federal public laws for taxable years beginning after December 31, 2020: section 13113 of P.L. 103-66; sections 1, 3, 4, and 5 of P.L. 106-519; sections 101, 102, and 422 of P.L. 108-357; sections 1310 and 1351 of P.L. 109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L. 110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section 15351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251, 1501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L. 111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L. 111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and 411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division P of P.L. 114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113; sections 11011, 11012, 13201 (a) to (e) and (g), 13206, 13221, 13301, 13304 (a), (b), and (d), 13531, 13601, 13801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97; sections 40304, 40305, 40306, and 40412 of P.L. 115-123; section 101 (c) of division T of P.L. 115-141; sections 101 (d) and (e), 102, 201 to 207, 301, 302, and 401 (a) (47) and (195), (b) (13), (17), (22) and (30), and (d) (1) (D) (v), (vi), and (xiii) and (xvii) (II) of division U of P.L. 115-141; sections 104, 114, 115, 116, 130, and 145 of division Q of P.L. 116-94; sections 2304 and 2306 of P.L. 116-136; and sections 111, 114, 115, 116, 118 (a) and (d), 133, 137, 138, and 210 of division EE of P.L. 116-260.

3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2020.

4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by sections 20101, 20102, 20104, 20201, 40201, 40202, 40203, 40308, 40309, 40311, 40414, 41101, 41107, 41114, 41115, and 41116 of P.L. 115-123; section 101 (a), (b), and (h) of division U of P.L. 115-141; section 1203 of P.L. 116-25; section 1122 of P.L. 116-92; section 301 of division O, section 1302 of division P, and sections 101, 102, 103, 117, 118, 132, 201, 202 (a), (b), and (c), 204 (a), (b), and (c), 301, and 302 of division Q of P.L. 116-94; section 2 of P.L. 116-98; and sections 301, 302, and 304 of division EE of P.L. 116-260 apply for taxable years beginning after December 31, 2020.

SECTION 22. 71.01 (7g) of the statutes is created to read:

71.01 (7g) For purposes of s. 71.01 (6) (b), 2013 stats., “Internal Revenue Code” includes section 109 of division U of P.L. 115-141.

SECTION 23. 71.05 (1) (ae) of the statutes is repealed.

SECTION 24. 71.05 (1) (am) of the statutes is amended to read:

71.05 (1) (am) Military retirement systems. All retirement payments received from the U.S. military employee retirement system, to the extent that such payments are not exempt under par. (a) or (ae) or sub. (6) (b) 54.

SECTION 25. 71.05 (1) (an) of the statutes is amended to read:

71.05 (1) (an) Uniformed services retirement benefits. All retirement payments received from the U.S. government that relate to service with the coast guard, the commissioned corps of the national oceanic and atmospheric administration, or the commissioned corps of the public health service, to the extent that such payments are not exempt under par. (a), (ae), or (am) or sub. (6) (b) 54.

SECTION 26. 71.05 (1) (h) of the statutes is created to read:

71.05 (1) (h) Wisconsin allocations from the federal coronavirus relief fund. Income received in the form of allocations issued by this state with moneys received from the coronavirus relief fund authorized under 42 USC 801 to be used for any of the following purposes:

1. Broadband expansion.

2. Privately owned movie theater grants.

3. A nonprofit grant program.

4. A tourism grants program.

5. A cultural organization grant program.

6. Music and performance venue grants.

7. Lodging industry grants.

8. Low-income home energy assistance.

9. A rental assistance program.

10. Supplemental child care grants.

11. A food insecurity initiative.

12. A farm support program.

13. Grants to small businesses.

14. Ethanol industry assistance.

15. Wisconsin Eye.

SECTION 26. 71.05 (1) (hn) of the statutes is created to read:

71.05 (1) (hn) Wisconsin grants awarded during and related to the pandemic. Income received in the form of a grant issued by the Wisconsin Economic Development Corporation during and related to the COVID-19 pandemic under the ethnic minority emergency grant program. Amounts otherwise deductible under this chapter that are paid directly or indirectly with the grant money are deductible.

SECTION 27. 71.05 (6) (b) 4. of the statutes is renumbered 71.05 (6) (b) 4. (intro.) and amended to read:

71.05 (6) (b) 4. (intro.) Disability payments other than disability payments that are paid from a retirement plan, the payments from which are exempt under sub. (1) (ae), (am), and (an), and (b) 54., if the individual either is single or is married and files a joint return, to the extent those payments are excludable under section 105 (d) of the Internal Revenue Code as it existed immediately prior to its repeal in 1983 by section 122 (b) of P.L. 98-21, except that if an individual is divorced during the taxable year that individual may subtract an amount only if that person is disabled and the amount that may be subtracted then is $100 for each week that payments are received or the amount of disability pay reported as income, whichever is less. If the exclusion under this subdivision is claimed on a joint return and only one of the spouses is disabled, the maximum exclusion is $100 for each week that payments are received or the amount of disability pay reported as income, whichever is less. and is under 65 years of age before the close of the taxable year to which the subtraction relates, retired on disability, and, when the individual retired, was permanently and totally disabled. In this subdivision, “permanently and totally disabled” means an individual who is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. An individual shall not be considered permanently and totally disabled for purposes of this subdivision unless proof is furnished in such form and manner, and at such times, as prescribed by the department. The exclusion under this subdivision shall be determined as follows:

SECTION 28. 71.05 (6) (b) 4. a. to c. of the statutes are created to read:

71.05 (6) (b) 4. a. If the individual is single and the individual's federal adjusted gross income in the year to which the subtraction relates is less than $20,200, the maximum subtraction is $100 for each week that payments are received or the amount of disability pay reported as income, whichever is less.

b. If the individual is married and filing a joint return and the couple's federal adjusted gross income in the year to which the subtraction relates is less than $20,200, or $25,400 if both spouses are disabled, the maximum subtraction is $100 for each week that payments are received, per spouse if both spouses are disabled, or the amount of disability pay reported as income, whichever is less.

c. If the federal adjusted gross income of the individual, or individuals if filing a joint return, for the taxable year, determined without regard to this subdivision, exceeds $15,000, the amount subtracted under this subdivision for the taxable year shall be reduced by an amount equal to the excess of the federal adjusted gross income over $15,000.

SECTION 29. 71.05 (6) (b) 17. and 18. of the statutes are repealed.

SECTION 30. 71.05 (6) (b) 19. c. of the statutes is amended to read:

71.05 (6) (b) 19. c. For taxable years beginning before January 1, 2021, for a person who is a nonresident or a part-year resident of this state, modify the amount calculated under subd. 19. b. by multiplying the amount by a fraction the numerator of which is the person's net earnings from a trade or business that are taxable by this state and the denominator of which is the person's total net earnings from a trade or business.

SECTION 31. 71.05 (6) (b) 19. cm. of the statutes is created to read:

71.05 (6) (b) 19. cm. For taxable years beginning after December 31, 2020, for a person who is a nonresident or a part-year resident of this state, modify the amount calculated under subd. 19. b. by multiplying the amount by a fraction the numerator of which is the person's wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the person's total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 19. cm., for married persons filing separately “wages, salary, tips, unearned income, and net earnings from a trade or business” means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income, and net earnings from a trade or business” means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.

SECTION 32. 71.05 (6) (b) 19. d. of the statutes is amended to read:

71.05 (6) (b) 19. d. Reduce For taxable years beginning before January 1, 2021, reduce the amount calculated under subd. 19. b. or c. to the person's aggregate net earnings from a trade or business that are taxable by this state.

SECTION 33. 71.05 (6) (b) 19. dm. of the statutes is created to read:

71.05 (6) (b) 19. dm. For taxable years beginning after December 31, 2020, reduce the amount calculated under subd. 19. b. or cm. to the person's aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.

SECTION 34. 71.05 (6) (b) 20., 36., 37., 39., 40. and 41. of the statutes are repealed.

SECTION 35. 71.05 (6) (b) 54. of the statutes is created to read:

71.05 (6) (b) 54. Except for a payment that is exempt under sub. (1) (a), (am), or (an), or that is exempt as a railroad retirement benefit, for taxable years beginning after December 31, 2020, up to $5,000 of payments or distributions received each year by an individual from a qualified retirement plan under the Internal Revenue Code or from an individual retirement account established under 26 USC 408, if all of the following conditions apply:

a. The individual is at least 65 years of age before the close of the taxable year to which the exemption claim relates.

b. If the individual is single or files as head of household, his or her federal adjusted gross income in the year to which the exemption claim relates is less than $15,000.

c. If the individual is married and is a joint filer, the couple's federal adjusted gross income in the year to which the exemption claim relates is less than $30,000.

d. If the individual is married and files a separate return, the sum of both spouses' federal adjusted gross income in the year to which the exemption claim relates is less than $30,000.

SECTION 36. 71.07 (5) (a) 15. of the statutes is amended to read:

71.07 (5) (a) 15. The amount claimed as a deduction for medical care insurance under section 213 of the Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 17. to 20. 19., 35., 36., 37., 38., 39., 40., 41., and 42. and the amount claimed as a deduction for a long-term care insurance policy under section 213 (d) (1) (D) of the Internal Revenue Code, as defined in section 7702B (b) of the Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 26.

SECTION 37. 71.07 (9m) (h) of the statutes is amended to read:

71.07 (9m) (h) Any person, including a nonprofit entity described in section 501 (c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under par. (a) 2m. or 3., in whole or in part, to another person who is subject to the taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and submits with the notification a copy of the transfer documents, and the department certifies ownership of the credit with each transfer. The transferor may file a claim for more than one taxable year on a form prescribed by the department to compute all years of the credit under par. (a) 2m. or 3., at the time of the transfer request. The transferee may first use the credit to offset tax in the taxable year of the transferor in which the transfer occurs and may use the credit only to offset tax in taxable years otherwise allowed to be claimed and carried forward by the original claimant.

SECTION 38. 71.22 (4) (c), (d), (e), (f), (g), (h) and (i) of the statutes are repealed.

SECTION 39. 71.22 (4) (j) 3. m. of the statutes is created to read:

71.22 (4) (j) 3. m. Sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of P.L. 115-141.

SECTION 40. 71.22 (4) (j) 3. n. of the statutes is created to read:

71.22 (4) (j) 3. n. Section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94.

SECTION 41. 71.22 (4) (k) 3. of the statutes is amended to read:

71.22 (4) (k) 3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2016, except that “Internal Revenue Code” includes sections 11024, 11025, and 13543 of P.L. 115-97; sections 40307 and 40413 of P.L. 115-123, sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of 115-141; and section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94.

SECTION 42. 71.22 (4) (L) 1. of the statutes is amended to read:

71.22 (4) (L) 1. For taxable years beginning after December 31, 2017, and before January 1, 2021, “Internal Revenue Code” means the federal Internal Revenue Code as amended to December 31, 2017, except as provided in subds. 2. and 3. and subject to subd. 4., and except as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34 (1g), 71.42 (2), and 71.98.

SECTION 43. 71.22 (4) (L) 3. of the statutes is amended to read:

71.22 (4) (L) 3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2017, except that “Internal Revenue Code” includes sections 40307, 40413, and 41113 of P.L. 115-123; sections 101 (m), (n), (o), (p), and (q), 104 (a), 109, 401 (a) (54) and (b) (15) (A), (B), and (C), 19, 20, 23, 26, 27, and 28 of division U of P.L. 115-141; sections 102 and 104 of division M, sections 102, 103, 106, 107, 108, 109, 110, 111, 113, 114, 115, 116, 201, 204, 205, 206, 302, 401, and 601 of division O, section 1302 of division P, and sections 131, 202 (d), and 205 of division Q of P.L. 116-94; sections 1106, 2202, 2203, 2204, 2205, 2206, 2307, 3608, 3609, 3701, and 3702 of division A of P.L. 116-136; and sections 202, 208, 209, 211, and 214 of division EE and sections 276 (a) and (b), 277, 278 (a), (b), (c), and (d), 280, and 285 of division N of P.L. 116-260.

SECTION 44. 71.22 (4) (L) 4. of the statutes is amended to read:

71.22 (4) (L) 4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by P.L. 115-63 and sections 11026, 11027, 11028, 13207, 13306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L. 115-97 first apply for taxable years beginning after December 31, 2017.

SECTION 45. 71.22 (4) (m) of the statutes is created to read:

71.22 (4) (m) 1. For taxable years beginning after December 31, 2020, “Internal Revenue Code” means the federal Internal Revenue Code as amended to December 31, 2020, except as provided in subds. 2. and 3. and subject to subd. 4., and except as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34 (1g), 71.42 (2), and 71.98.

3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2020.

SECTION 46. 71.22 (4m) (c), (d), (e), (f), (g), (h) and (i) of the statutes are repealed.

SECTION 47. 71.22 (4m) (j) 3. m. of the statutes is created to read:

71.22 (4m) (j) 3. m. Sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of P.L. 115-141.

SECTION 48. 71.22 (4m) (j) 3. n. of the statutes is created to read:

71.22 (4m) (j) 3. n. Section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94.

SECTION 49. 71.22 (4m) (k) 3. of the statutes is amended to read:

71.22 (4m) (k) 3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2016, except that “Internal Revenue Code” includes sections 11024, 11025, and 13543 of P.L. 115-97; sections 40307 and 40413 of P.L. 115-123; sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of P.L. 115-141; and section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94.

SECTION 50. 71.22 (4m) (L) 1. of the statutes is amended to read:

71.22 (4m) (L) 1. For taxable years beginning after December 31, 2017, and before January 1, 2021, “Internal Revenue Code”, for corporations that are subject to a tax on unrelated business income under s. 71.26 (1) (a), means the federal Internal Revenue Code as amended to December 31, 2017, except as provided in subds. 2. and 3. and s. 71.98 and subject to subd. 4.

SECTION 51. 71.22 (4m) (L) 3. of the statutes is amended to read:

71.22 (4m) (L) 3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2017, except that “Internal Revenue Code” includes sections 40307, 40413, and 41113 of P.L. 115-123; sections 101 (m), (n), (o), (p), and (q), 104 (a), 109, 401 (a) (54) and (b) (15) (A), (B), and (C), 19, 20, 23, 26, 27, and 28 of division U of P.L. 115-141; sections 102 and 104 of division M, sections 102, 103, 106, 107, 108, 109, 110, 111, 113, 114, 115, 116, 201, 204, 205, 206, 302, 401, and 601 of division O, section 1302 of division P, and sections 131, 202 (d), and 205 of division Q of P.L. 116-94; sections 1106, 2202, 2203, 2204, 2205, 2206, 2307, 3608, 3609, 3701, and 3702 of division A of P.L. 116-136; and sections 202, 208, 209, 211, and 214 of division EE and sections 276 (a) and (b), 277, 278 (a), (b), (c), and (d), 280, and 285 of division N of P.L. 116-260.

SECTION 52. 71.22 (4m) (L) 4. of the statutes is amended to read:

71.22 (4m) (L) 4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by P.L. 115-63 and sections 11026, 11027, 11028, 13207, 13306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L. 115-97 first apply for taxable years beginning after December 31, 2017.

SECTION 53. 71.22 (4m) (m) of the statutes is created to read:

71.22 (4m) (m) 1. For taxable years beginning after December 31, 2020, “Internal Revenue Code,” for corporations that are subject to a tax on unrelated business income under s. 71.26 (1) (a), means the federal Internal Revenue Code as amended to December 31, 2020, except as provided in subds. 2. and 3. and s. 71.98 and subject to subd. 4.

3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2020.

SECTION 54. 71.22 (5g) of the statutes is created to read:

71.22 (5g) For purposes of s. 71.22 (4) (b) and (4m) (b), 2013 stats., “Internal Revenue Code” includes section 109 of division U of P.L. 115-141.

SECTION 55. 71.26 (2) (b) 3., 4., 5., 6., 7., 8. and 9. of the statutes are repealed.

SECTION 56. 71.26 (2) (b) 10. d. of the statutes is amended to read:

71.26 (2) (b) 10. d. For purposes of subd. 10. a., “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2013, except that “Internal Revenue Code” includes the provisions of P.L. 113-97, P.L. 113-159, P.L. 113-168, section 302901 of P.L. 113-287, sections 171, 172, and 201 to 221 of P.L. 113-295, sections 102, 105, and 207 of division B of P.L. 113-295, P.L. 114-14, P.L. 114-26, section 2004 of P.L. 114-41, sections 503 and 504 of P.L. 114-74, sections 103, 104, 124, 168, 184, 185, 190, 204, 303, 306, 336, and 341 of division Q of P.L. 114-113, and P.L. 114-239, sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of P.L. 115-141, and section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94.

SECTION 57. 71.26 (2) (b) 11. d. of the statutes is amended to read:

71.26 (2) (b) 11. d. For purposes of subd. 11. a., “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2016, except that “Internal Revenue Code” includes sections 11024, 11025, and 13543 of P.L. 115-97; sections 40307 and 40413 of P.L. 115-123; sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of P.L. 115-141; and section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94.

SECTION 58. 71.26 (2) (b) 12. a. of the statutes is amended to read:

71.26 (2) (b) 12. a. For taxable years beginning after December 31, 2017, and before January 1, 2021, for a corporation, conduit, or common law trust which qualifies as a regulated investment company, real estate mortgage investment conduit, real estate investment trust, or financial asset securitization investment trust under the Internal Revenue Code, “net income” means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income, federal real estate investment trust or financial asset securitization investment trust taxable income of the corporation, conduit, or trust as determined under the Internal Revenue Code.

SECTION 59. 71.26 (2) (b) 12. d. of the statutes is amended to read:

71.26 (2) (b) 12. d. For purposes of subd. 12. a., “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2017, except that “Internal Revenue Code” includes sections 40307, 40413, and 41113 of P.L. 115-123; sections 101 (m), (n), (o), (p), and (q), 104 (a), 109, 401 (a) (54) and (b) (15) (A), (B), and (C), 19, 20, 23, 26, 27, and 28 of division U of P.L. 115-141; sections 102 and 104 of division M, sections 102, 103, 106, 107, 108, 109, 110, 111, 113, 114, 115, 116, 201, 204, 205, 206, 302, 401, and 601 of division O, section 1302 of division P, and sections 131, 202 (d), and 205 of division Q of P.L. 116-94; sections 1106, 2202, 2203, 2204, 2205, 2206, 2307, 3608, 3609, 3701, and 3702 of division A of P.L. 116-136; and sections 202, 208, 209, 211, and 214 of division EE and sections 276 (a) and (b), 277, 278 (a), (b), (c), and (d), 280, and 285 of division N of P.L. 116-260.

SECTION 60. 71.26 (2) (b) 12. e. of the statutes is amended to read:

71.26 (2) (b) 12. e. For purposes of subd. 12. a., the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this subdivision, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by P.L. 115-63 and sections 11026, 11027, 11028, 13207, 13306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L. 115-97 first apply for taxable years beginning after December 31, 2017.

SECTION 61. 71.26 (2) (b) 13. of the statutes is created to read:

71.26 (2) (b) 13. a. For taxable years beginning after December 31, 2020, for a corporation, conduit, or common law trust that qualifies as a regulated investment company, real estate mortgage investment conduit, real estate investment trust, or financial asset securitization investment trust under the Internal Revenue Code, “net income” means the federal regulated investment company taxable income, federal real estate mortgage investment conduit taxable income, federal real estate investment trust, or financial asset securitization investment trust taxable income of the corporation, conduit, or trust as determined under the Internal Revenue Code.

b. For purposes of subd. 13. a., “Internal Revenue Code” means the federal Internal Revenue Code as amended to December 31, 2020, except as provided in subd. 13. c. and d. and s. 71.98 and subject to subd. 13. e.

c. For purposes of subd. 13. a., “Internal Revenue Code” does not include the following provisions of federal public laws for taxable years beginning after December 31, 2020: section 13113 of P.L. 103-66; sections 1, 3, 4, and 5 of P.L. 106-519; sections 101, 102, and 422 of P.L. 108-357; sections 1310 and 1351 of P.L. 109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L. 110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section 15351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251, 1501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L. 111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L. 111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and 411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division P of P.L. 114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113; sections 11011, 11012, 13201 (a) to (e) and (g), 13206, 13221, 13301, 13304 (a), (b), and (d), 13531, 13601, 13801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97; sections 40304, 40305, 40306, and 40412 of P.L. 115-123; section 101 (c) of division T of P.L. 115-141; sections 101 (d) and (e), 102, 201 to 207, 301, 302, and 401 (a) (47) and (195), (b) (13), (17), (22) and (30), and (d) (1) (D) (v), (vi), and (xiii) and (xvii) (II) of division U of P.L. 115-141; sections 104, 114, 115, 116, 130, and 145 of division Q of P.L. 116-94; sections 2304 and 2306 of P.L. 116-136; and sections 111, 114, 115, 116, 118 (a) and (d), 133, 137, 138, and 210 of division EE of P.L. 116-260.

d. For purposes of subd. 13. a., “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2020.

e. For purposes of subd. 13. a., the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this subdivision, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by sections 20101, 20102, 20104, 20201, 40201, 40202, 40203, 40308, 40309, 40311, 40414, 41101, 41107, 41114, 41115, and 41116 of P.L. 115-123; section 101 (a), (b), and (h) of division U of P.L. 115-141; section 1203 of P.L. 116-25; section 1122 of P.L. 116-92; section 301 of division O, section 1302 of division P, and sections 101, 102, 103, 117, 118, 132, 201, 202 (a), (b), and (c), 204 (a), (b), and (c), 301, and 302 of division Q of P.L. 116-94; section 2 of P.L. 116-98; and sections 301, 302, and 304 of division EE of P.L. 116-260 apply for taxable years beginning after December 31, 2020.

SECTION 62. 71.26 (2) (b) 14. of the statutes is created to read:

71.26 (2) (b) 14. For purposes of s. 71.26 (2) (b) 2., 2013 stats., “Internal Revenue Code” includes section 109 of division U of P.L. 115-141.

SECTION 63. 71.26 (3) (ag) of the statutes is renumbered 71.26 (3) (ag) (intro.) and amended to read:

71.26 (3) (ag) (intro.) Section 61 (relating to the definition of gross income) is modified to exclude income the following:

1. Income received by the original policyholder or original certificate holder who has a catastrophic or life-threatening illness or condition from the sale of a life insurance policy or certificate, or the sale of the death benefit under a life insurance policy or certificate, under a life settlement contract, as defined in s. 632.69 (1) (k). In this paragraph, “catastrophic or life-threatening illness or condition” includes AIDS, as defined in s. 49.686 (1) (a), and HIV infection, as defined in s. 49.686 (1) (d).

SECTION 64. 71.26 (3) (ag) 2. of the statutes is created to read:

71.26 (3) (ag) 2. Income received in the form of allocations issued by this state with moneys received from the coronavirus relief fund authorized under 42 USC 801 to be used for any of the following purposes:

a. Broadband expansion.

b. Privately owned movie theater grants.

c. A nonprofit grant program.

d. A tourism grants program.

e. A cultural organization grant program.

f. Music and performance venue grants.

g. Lodging industry grants.

h. Low-income home energy assistance.

i. A rental assistance program.

j. Supplemental child care grants.

k. A food insecurity initiative.

L. A farm support program.

m. Grants to small businesses.

n. Ethanol industry assistance.

o. Wisconsin Eye.

SECTION 64e. 71.26 (3) (ag) 3. of the statutes is created to read:

71.26 (3) (ag) 3. Income received in the form of a grant issued by the Wisconsin Economic Development Corporation during and related to the COVID-19 pandemic under the ethnic minority emergency grant program. Amounts otherwise deductible under this chapter that are paid directly or indirectly with the grant money are deductible.

SECTION 65. 71.26 (3) (L) of the statutes is amended to read:

71.26 (3) (L) Section 265 is excluded and replaced by the rule that any amount otherwise deductible under this chapter that is directly or indirectly related to income wholly exempt from taxes imposed by this chapter or to losses from the sale or other disposition of assets the gain from which would be exempt under this paragraph if the assets were sold or otherwise disposed of at a gain is not deductible. In this paragraph, “wholly exempt income”, for corporations subject to franchise or income taxes, includes amounts received from affiliated or subsidiary corporations for interest, dividends or capital gains that, because of the degree of common ownership, control or management between the payor and payee, are not subject to taxes under this chapter. In this paragraph, “wholly exempt income”, for corporations subject to income taxation under this chapter, also includes interest on obligations of the United States. In this paragraph, “wholly exempt income” does not include income excludable, not recognized, exempt or deductible under specific provisions of this chapter. If any expense or amount otherwise deductible is indirectly related both to wholly exempt income or loss and to other income or loss, a reasonable proportion of the expense or amount shall be allocated to each type of income or loss, in light of all the facts and circumstances. This paragraph does not apply to the exclusion under par. (ag) 2. or 3.

SECTION 66. 71.28 (6) (h) of the statutes is amended to read:

71.28 (6) (h) Any person, including a nonprofit entity described in section 501 (c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under par. (a) 2m. or 3., in whole or in part, to another person who is subject to the taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and submits with the notification a copy of the transfer documents, and the department certifies ownership of the credit with each transfer. The transferor may file a claim for more than one taxable year on a form prescribed by the department to compute all years of the credit under par. (a) 2m. or 3., at the time of the transfer request. The transferee may first use the credit to offset tax in the taxable year of the transferor in which the transfer occurs, and may use the credit only to offset tax in taxable years otherwise allowed to be claimed and carried forward by the original claimant.

SECTION 67. 71.34 (1g) (c), (d), (e), (f), (g), (h) and (i) of the statutes are repealed.

SECTION 68. 71.34 (1g) (j) 3. m. of the statutes is created to read:

71.34 (1g) (j) 3. m. Sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of P.L. 115-141.

SECTION 69. 71.34 (1g) (j) 3. n. of the statutes is created to read:

71.34 (1g) (j) 3. n. Section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94.

SECTION 70. 71.34 (1g) (k) 3. of the statutes is amended to read:

71.34 (1g) (k) 3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2016, except that “Internal Revenue Code” includes sections 11024, 11025, and 13543 of P.L. 115-97; sections 40307 and 40413 of P.L. 115-123; sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of P.L. 115-141; and section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94.

SECTION 71. 71.34 (1g) (L) 1. of the statutes is amended to read:

71.34 (1g) (L) 1. For taxable years beginning after December 31, 2017, and before January 1, 2021, for tax option corporations, “Internal Revenue Code” means the federal Internal Revenue Code as amended to December 31, 2017, except as provided in subds. 2., 3., and 5. and s. 71.98 and subject to subd. 4.

SECTION 72. 71.34 (1g) (L) 3. of the statutes is amended to read:

71.34 (1g) (L) 3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2017, except that “Internal Revenue Code” includes sections 40307, 40413, and 41113 of P.L. 115-123; sections 101 (m), (n), (o), (p), and (q), 104 (a), 109, 401 (a) (54) and (b) (15) (A), (B), and (C), 19, 20, 23, 26, 27, and 28 of division U of P.L. 115-141; sections 102 and 104 of division M, sections 102, 103, 106, 107, 108, 109, 110, 111, 113, 114, 115, 116, 201, 204, 205, 206, 302, 401, and 601 of division O, section 1302 of division P, and sections 131, 202 (d), and 205 of division Q of P.L. 116-94; sections 1106, 2202, 2203, 2204, 2205, 2206, 2307, 3608, 3609, 3701, and 3702 of division A of P.L. 116-136; and sections 202, 208, 209, 211, and 214 of division EE and sections 276 (a) and (b), 277, 278 (a), (b), (c), and (d), 280, and 285 of division N of P.L. 116-260.

SECTION 73. 71.34 (1g) (L) 4. of the statutes is amended to read:

71.34 (1g) (L) 4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by P.L. 115-63 and sections 11026, 11027, 11028, 13207, 13306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L. 115-97 first apply for taxable years beginning after December 31, 2017.

SECTION 74. 71.34 (1g) (m) of the statutes is created to read:

71.34 (1g) (m) 1. For taxable years beginning after December 31, 2020, for tax option corporations, “Internal Revenue Code” means the federal Internal Revenue Code as amended to December 31, 2020, except as provided in subds. 2., 3., and 5. and s. 71.98 and subject to subd. 4.

3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2020.

5. For purposes of this paragraph, section 1366 (f) of the Internal Revenue Code (relating to pass-through of items to shareholders) is modified by substituting the tax under s. 71.35 for the taxes under sections 1374 and 1375 of the Internal Revenue Code.

SECTION 75. 71.34 (1k) (af) of the statutes is created to read:

71.34 (1k) (af) Section 61 of the Internal Revenue Code is modified so that income received in the form of allocations issued by this state with moneys received from the coronavirus relief fund authorized under 42 USC 801 to be used for any of the following purposes is not taxable income:

1. Broadband expansion.

2. Privately owned movie theater grants.

3. A nonprofit grant program.

4. A tourism grants program.

5. A cultural organization grant program.

6. Music and performance venue grants.

7. Lodging industry grants.

8. Low-income home energy assistance.

9. A rental assistance program.

10. Supplemental child care grants.

11. A food insecurity initiative.

12. A farm support program.

13. Grants to small businesses.

14. Ethanol industry assistance.

15. Wisconsin Eye.

SECTION 75m. 71.34 (1k) (ah) of the statutes is created to read:

71.34 (1k) (ah) Section 61 of the Internal Revenue Code is modified so that income received in the form of a grant issued by the Wisconsin Economic Development Corporation during and related to the COVID-19 pandemic under the ethnic minority emergency grant program is not taxable income. Amounts otherwise deductible under this chapter that are paid directly or indirectly with the grant money are deductible.

SECTION 76. 71.34 (1u) of the statutes is created to read:

71.34 (1u) For purposes of s. 71.34 (1g) (b), 2013 stats., “Internal Revenue Code” includes section 109 of division U of P.L. 115-141.

SECTION 77. 71.42 (2) (c), (d), (e), (f), (g), (h) and (i) of the statutes are repealed.

SECTION 78. 71.42 (2) (j) 3. m. of the statutes is created to read:

71.42 (2) (j) 3. m. Sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of P.L. 115-141.

SECTION 79. 71.42 (2) (j) 3. n. of the statutes is created to read:

71.42 (2) (j) 3. n. Section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94.

SECTION 80. 71.42 (2) (k) 3. of the statutes is amended to read:

71.42 (2) (k) 3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2016, except that “Internal Revenue Code” includes sections 11024, 11025, and 13543 of P.L. 115-97; sections 40307 and 40413 of P.L. 115-123; sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of P.L. 115-141; and section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94.

SECTION 81. 71.42 (2) (L) 1. of the statutes is amended to read:

71.42 (2) (L) 1. For taxable years beginning after December 31, 2017, and before January 1, 2021, “Internal Revenue Code” means the federal Internal Revenue Code as amended to December 31, 2017, except as provided in subds. 2. to 4. and s. 71.98 and subject to subd. 5.

SECTION 82. 71.42 (2) (L) 3. of the statutes is amended to read:

71.42 (2) (L) 3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2017, except that “Internal Revenue Code” includes sections 40307, 40413, and 41113 of P.L. 115-123; sections 101 (m), (n), (o), (p), and (q), 104 (a), 109, 401 (a) (54) and (b) (15) (A), (B), and (C), 19, 20, 23, 26, 27, and 28 of division U of P.L. 115-141; sections 102 and 104 of division M, sections 102, 103, 106, 107, 108, 109, 110, 111, 113, 114, 115, 116, 201, 204, 205, 206, 302, 401, and 601 of division O, section 1302 of division P, and sections 131, 202 (d), and 205 of division Q of P.L. 116-94; sections 1106, 2202, 2203, 2204, 2205, 2206, 2307, 3608, 3609, 3701, and 3702 of division A of P.L. 116-136; and sections 202, 208, 209, 211, and 214 of division EE and sections 276 (a) and (b), 277, 278 (a), (b), (c), and (d), 280, and 285 of division N of P.L. 116-260.

SECTION 83. 71.42 (2) (L) 5. of the statutes is amended to read:

71.42 (2) (L) 5. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by P.L. 115-63 and sections 11026, 11027, 11028, 13207, 13306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L. 115-97 first apply for taxable years beginning after December 31, 2017.

SECTION 84. 71.42 (2) (m) of the statutes is created to read:

71.42 (2) (m) 1. For taxable years beginning after December 31, 2020, “Internal Revenue Code” means the federal Internal Revenue Code as amended to December 31, 2020, except as provided in subds. 2. and 3. and s. 71.98 and subject to subd. 4.

2. For purposes of this paragraph, “Internal Revenue Code” does not include the following provisions of federal public laws for taxable years beginning after December 31, 2020: section 13113 of P.L. 103-66; sections 1, 3, 4, and 5 of P.L. 106-519; sections 101, 102, and 422 of P.L. 108-357; sections 1310 and 1351 of P.L. 109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L. 110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section 15351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251, 1501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L. 111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L. 111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and 411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division P of P.L. 114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113; sections 11011, 11012, 13201 (a) to (e) and (g), 13206, 13221, 13301, 13304 (a), (b), and (d), 13531, 13601, 13801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97; sections 40304, 40305, 40306, and 40412 of P.L. 115-123; section 101 (c) of division T of P.L. 115-141; sections 101 (d) and (e), 102, 201 to 207, 301, 302, and 401 (a) (47) and (195), (b) (13), (17), (22) and (30), and (d) (1) (D) (v), (vi), and (xiii) and (xvii) (II) of division U of P.L. 115-141; sections 104, 114, 115, 116, 130, and 145 of division Q of P.L. 116-94; sections 2304 and 2306 of P.L.116-136; and sections 111, 114, 115, 116, 118 (a) and (d), 133, 137, 138, and 210 of division EE of P.L. 116-260.

3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2020.

4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by sections 20101, 20102, 20104, 20201, 40201, 40202, 40203, 40308, 40309, 40311, 40414, 41101, 41107, 41114, 41115, and 41116 of P.L. 115-123; section 101 (a), (b), and (h) of division U of P.L. 115-141; section 1203 of 116-25; section 1122 of P.L. 116-92; section 301 of division O, section 1302 of division P, and sections 101, 102, 103, 117, 118, 132, 201, 202 (a), (b), and (c), 204 (a), (b), and (c), 301, and 302 of division Q of P.L. 116-94; section 2 of P.L. 116-98; and sections 301, 302, and 304 of division EE of P.L. 116-260 apply for taxable years beginning after December 31, 2020.

SECTION 85. 71.42 (2p) of the statutes is created to read:

71.42 (2p) For purposes of s. 71.42 (2) (b), 2013 stats., “Internal Revenue Code” includes section 109 of division U of P.L. 115-141.

SECTION 86. 71.45 (1) (d) of the statutes is created to read:

71.45 (1) (d) Income received in the form of allocations issued by this state with moneys received from the coronavirus relief fund authorized under 42 USC 801 to be used for any of the following purposes:

1. Broadband expansion.

2. Privately owned movie theater grants.

3. A nonprofit grant program.

4. A tourism grants program.

5. A cultural organization grant program.

6. Music and performance venue grants.

7. Lodging industry grants.

8. Low-income home energy assistance.

9. A rental assistance program.

10. Supplemental child care grants.

11. A food insecurity initiative.

12. A farm support program.

13. Grants to small businesses.

14. Ethanol industry assistance.

15. Wisconsin Eye.

SECTION 86m. 71.45 (1) (dm) of the statutes is created to read:

71.45 (1) (dm) Income received in the form of a grant issued by the Wisconsin Economic Development Corporation during and related to the COVID-19 pandemic under the ethnic minority emergency grant program. Amounts otherwise deductible under this chapter that are paid directly or indirectly with the grant money are deductible.

SECTION 87. 71.45 (2) (a) 22. of the statutes is created to read:

71.45 (2) (a) 22. By subtracting from federal taxable income, to the extent included in federal taxable income, income received in the form of allocations issued by this state with moneys received from the coronavirus relief fund authorized under 42 USC 801 to be used for any of the following purposes:

a. Broadband expansion.

b. Privately owned movie theater grants.

c. A nonprofit grant program.

d. A tourism grants program.

e. A cultural organization grant program.

f. Music and performance venue grants.

g. Lodging industry grants.

h. Low-income home energy assistance.

i. A rental assistance program.

j. Supplemental child care grants.

k. A food insecurity initiative.

L. A farm support program.

m. Grants to small businesses.

n. Ethanol industry assistance.

o. Wisconsin Eye.

SECTION 87n. 71.45 (2) (a) 23. of the statutes is created to read:

71.45 (2) (a) 23. By subtracting from federal taxable income, to the extent included in federal taxable income, income received in the form of a grant issued by the Wisconsin Economic Development Corporation during and related to the COVID-19 pandemic under the ethnic minority emergency grant program. Amounts otherwise deductible under this chapter that are paid directly or indirectly with the grant money are deductible.

SECTION 88. 71.47 (6) (h) of the statutes is amended to read:

71.47 (6) (h) Any person, including a nonprofit entity described in section 501 (c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under par. (a) 2m. or 3., in whole or in part, to another person who is subject to the taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and submits with the notification a copy of the transfer documents, and the department certifies ownership of the credit with each transfer. The transferor may file a claim for more than one taxable year on a form prescribed by the department to compute all years of the credit under par. (a) 2m. or 3., at the time of the transfer request. The transferee may first use the credit to offset tax in the taxable year of the transferor in which the transfer occurs, and may use the credit only to offset tax in taxable years otherwise allowed to be claimed and carried forward by the original claimant.

SECTION 89. 71.52 (1g) of the statutes is created to read:

71.52 (1g) “Earned income” means wages, salaries, tips, and other employee compensation that may be included in federal adjusted gross income for the taxable year, plus the amount of the claimant's net earnings from self-employment for the taxable year determined with regard to the deduction allowed to the taxpayer by section 164 (f) of the Internal Revenue Code. For purposes of this subsection, a claimant's earned income is computed without regard to any marital property laws and a claimant may elect to treat amounts excluded from federal adjusted gross income as earned income, as provided under section 112 of the Internal Revenue Code. “Earned income” does not include the following:

(a) Any amount received as a pension or annuity.

(b) Any amount to which section 871 (a) of the Internal Revenue Code applies.

(d) Any amount received for service performed in work activities under paragraphs (4) or (7) of section 407

(d) of the Social Security Act to which the claimant is assigned under any state program under part A of title IV of the Social Security Act. This paragraph applies only to amounts subsidized under any such state program.

SECTION 90. 71.55 (10) of the statutes is amended to read:

71.55 (10) FARMERS. Notwithstanding the provision in s. 71.52 (6) that requires the addition of certain disqualified losses to income, such an addition may not be made by a claimant who is a farmer whose primary income is from farming and whose farming generates less than $250,000 in gross receipts from the operation of farm premises in the year to which the claim relates. For purposes of this subsection, a claimant's primary income is from farming if the claimant's gross income from farming for the year to which the claim relates is greater than 50 percent of the claimant's total gross income from all sources for the year to which the claim relates. In this subsection, “gross income” has the meaning given in s. 71.03 (1).

SECTION 91. 71.76 of the statutes is renumbered 71.76 (1) and amended to read:

71.76 (1) If for any year the amount of federal net income tax payable, of a credit claimed or carried forward, of a net operating loss carried forward or of a capital loss carried forward of any taxpayer as reported to the internal revenue service is changed or corrected by the internal revenue service or other officer of the United States, such taxpayer shall report such changes or corrections to the department within 90 180 days after its final determination and shall concede the accuracy of such determination or state how the determination is erroneous. Such changes or corrections need not be reported unless they affect the amount of net tax payable under this chapter, of a credit calculated under this chapter, of a Wisconsin net operating loss carried forward, of a Wisconsin net business loss carried forward or of a capital loss carried forward under this chapter. Any taxpayer submitting an amended return to the internal revenue service, or to another state if there has been allowed a credit against Wisconsin taxes for taxes paid to that state, shall also file, within 90 180 days of such filing date, an amended return if any information contained on the amended return affects the amount of net tax payable under this chapter of a credit calculated under this chapter, of a Wisconsin net operating loss carried forward, of a Wisconsin net business loss carried forward or of a capital loss carried forward under this chapter.

SECTION 92. 71.76 (2) of the statutes is created to read:

71.76 (2) In the case of any partnership adjustments, as defined under section 6241 of the Internal Revenue Code and including adjustments under section 6225 of the Internal Revenue Code, the partnership and its partners shall report such changes or corrections to the department within 180 days after the final determination by the internal revenue service and shall concede the accuracy of such determination or state how the determination is erroneous. The partnership and its partners shall submit amended returns, as applicable, for each reviewed year, as defined under section 6225 of the Internal Revenue Code, to which such partnership adjustments relate.

SECTION 93. 71.77 (7) (b) of the statutes is amended to read:

71.77 (7) (b) If notice of assessment or refund is given to the taxpayer within 90 180 days of the date on which the department receives a report from the taxpayer under s. 71.76 or within such other period specified in a written agreement entered into prior to the expiration of such 90 180 days by the taxpayer and the department. If the taxpayer does not report to the department as required under s. 71.76, the department may make an assessment against the taxpayer or refund to the taxpayer within 4 years after discovery by the department.

SECTION 94. 71.83 (1) (a) 6. of the statutes is amended to read:

71.83 (1) (a) 6. 'Retirement plans.' Any natural person who is liable for a penalty for federal income tax purposes under section 72 (m) (5), (q), (t), and (v), 4973, 4974, 4975, or 4980A of the Internal Revenue Code is liable for 33 percent of the federal penalty unless the income received is exempt from taxation under s. 71.05 (1) (a) or (ae) (6) (b) 54. The penalties provided under this subdivision shall be assessed, levied, and collected in the same manner as income or franchise taxes.

SECTION 95. 71.98 (3) of the statutes is amended to read:

71.98 (3) DEPRECIATION, DEPLETION, AND AMORTIZATION. For taxable years beginning after December 31, 2013, and for purposes of computing depreciation and amortization, the Internal Revenue Code means the federal Internal Revenue Code in effect for federal purposes on January 1, 2014, except that sections 13201 (f), 13203, 13204, and 13205 of P.L. 115-97 and, section 2307 of division A of P.L. 116-136, and section 202 of division EE of P.L. 116-260 apply at the same time as for federal purposes. For taxable years beginning after December 31, 2013, and for purposes of computing depletion, the Internal Revenue Code means the federal Internal Revenue Code in effect for federal purposes for the year in which the property is placed in service.

SECTION 96. 73.0305 of the statutes is amended to read:

73.0305 Revenue limits calculations. The department of revenue shall annually determine and certify to the state superintendent of public instruction, no later than the 4th Monday in June at the superintendent's request, the allowable rate of increase under subch. VII of ch. 121. The allowable rate of increase is the percentage change, if not negative, in the consumer price index for all urban consumers, U.S. city average, between the preceding March 31 and the 2nd preceding March 31, as computed by the federal department of labor.

SECTION 97. 73.09 (4) (c) of the statutes is amended to read:

73.09 (4) (c) Recertification is contingent upon submission of an application for renewal, at least 60 days before the expiration date of the current certificate, attesting to the completion of the requirements specified in par. (b). Persons applying for renewal on the basis of attendance at the meetings called by the department under s. 73.06 (1) and by meeting continuing education requirements shall submit a $20 recertification fee, in an amount determined by the department not to exceed $75, with their applications.

SECTION 98. 73.09 (5) of the statutes is amended to read:

73.09 (5) EXAMINATIONS. As provided in subs. (1) and (2), the department of revenue shall prepare and administer examinations for each level of certification. A person applying for an examination under this subsection shall submit a $20 an examination fee with the person's application. If the department administers and grades the examinations, the fee shall be the amount equal to the department's best estimate of the actual cost to administer and grade the examinations, but no greater than $75. If a test service provider administers and grades the examinations, the fee shall be the amount equal to the department's best estimate of the provider's actual cost to administer and grade the examinations, but no greater than $75. The department of revenue shall grant certification to each person who passes the examination for that level.

SECTION 99. 74.315 (1) of the statutes is amended to read:

74.315 (1) SUBMISSION. No later than October 1 of each year, the taxation district clerk shall submit to the department of revenue, on a form prescribed by the department, a listing of all the omitted taxes under s. 70.44 to be included on the taxation district's next tax roll, if the total of all such omitted taxes exceeds $5,000 for any single description of property are $250 or more.

SECTION 100. 74.315 (1m) of the statutes is created to read:

74.315 (1m) AMOUNT COLLECTED FROM PROPERTY IN A TAX INCREMENTAL DISTRICT. A tax may not be included on a form submitted under sub. (1) if the tax was levied on a property within a tax incremental district, as defined in s. 60.85 (1) (n) or 66.1105 (2) (k), unless the current value of the tax incremental district is lower than the tax incremental base, as defined in s. 60.85 (1) (m) or 66.1105 (2) (j), in the assessment year for which the tax was collected.

SECTION 101. 74.315 (2) of the statutes is amended to read:

74.315 (2) EQUALIZED VALUATION AMOUNT DETERMINED. After receiving the form under sub. (1), but no later than November 15, the department of revenue shall determine the amount of any change in the taxation district's equalized valuation that results from considering the valuation represented by the taxes described under sub. (1) taxes to be shared with each taxing jurisdiction for which the taxation district collected taxes and determine the amount of taxes collected under s. 70.44 to be shared with each taxing jurisdiction for which the taxation district collected taxes. The department's determination under this subsection is subject to review only under s. 227.53.

SECTION 102. 74.315 (3) of the statutes is amended to read:

74.315 (3) NOTICE AND DISTRIBUTION. If the department of revenue determines under sub. (2) that the taxation district's equalized valuation changed as a result of considering the valuation represented by the taxes described under sub. (1), the The department shall notify the taxation district and the taxation district shall distribute the resulting collections under ss. 74.23 (1) (a) 5., 74.25 (1) (a) 4m., and 74.30 (1) (dm) resulting from the determinations made under sub. (2).

SECTION 103. 76.04 (1) of the statutes is amended to read:

76.04 (1) Every company defined in s. 76.02 shall, annually, file a true and accurate statement in such manner and form and setting forth such facts as the department shall deem necessary to enforce ss. 76.01 to 76.26. The annual reports for railroad companies shall be filed on or before April 15 and for conservation and regulation companies, air carriers and pipeline companies on or before May 1.

SECTION 104. 76.07 (1) of the statutes is amended to read:

76.07 (1) DUTY OF DEPARTMENT. The department on or before August 1 September 15 in each year in the case of railroad companies, and on or before September 15 in the case of air carrier companies, conservation and regulation companies and pipeline companies, shall, according to its best knowledge and judgment, ascertain and determine the full market value of the property of each company within the state.

SECTION 105. 76.075 of the statutes is amended to read:

76.075 Adjustments of assessments. Within 4 years after the due date, or extended due date, of the report under s. 76.04, any person subject to taxation under this subchapter may request the department to make, or the department may make, an adjustment to the data under s. 76.07 (4g) or (4r) submitted by the person. If an adjustment under this section results in an increase in the tax due under this subchapter, the person shall pay the amount of the tax increase plus interest on that amount at the rate of 1 percent per month from the due date or extended due date of the report under s. 76.04 until the date of final determination and interest at the rate of 1.5 percent per month from the date of final determination until the date of payment. If an adjustment under this section results in a decrease in the tax due under this subchapter, the department shall refund the appropriate amount plus interest at the rate of 0.75 0.25 percent per month from the due date or extended due date under s. 76.04 until the date of refund. Sections 71.74 (1) and (2) and 71.75 (6) and (7), as they apply to income and franchise tax adjustments, apply to adjustments under this section. Review of the adjustments is as stated in s. 76.08.

SECTION 106. 76.13 (1) of the statutes is amended to read:

76.13 (1) The department shall compute and levy a tax upon the property of each company defined in s. 76.02, as assessed in the manner specified in ss. 76.07 and 76.08, at the average net rate of taxation determined under s. 76.126. The amount of tax to be paid by each such company shall be extended upon a tax roll opposite the description of the property of the respective companies. The tax rolls for all companies required to be assessed on or before August 1 in each year under s. 76.07 (1) shall be completed on or before August 10, and for all companies required to be assessed on or before September 15 in each year under s. 76.07 (1) shall be completed on or before October 1; and the department shall thereupon attach to each such roll a certificate signed by the secretary of revenue, which shall be as follows:

“I hereby certify that the foregoing tax roll includes the property of all railroad companies, air carrier companies, conservation and regulation companies or pipeline companies, as the case may be, defined in s. 76.02, liable to taxation in this state; that the valuation of the property of each company as set down in said tax roll is the full market value thereof as assessed by the department of revenue, except as changed by court judgment, and that the taxes thereon charged in said tax roll have been assessed and levied at the average net rate of taxation in this state, as required by law”.

SECTION 107. 76.13 (3) of the statutes is amended to read:

76.13 (3) If the Dane County circuit court, after such roll is delivered to the secretary of administration, increases or decreases the assessment of any company, the department shall immediately redetermine the tax of the company on the basis of the revised assessment, and shall certify and deliver the revised assessment to the secretary of administration as a revision of the tax roll. If the amount of tax upon the assessment as determined by the court is less than the amount paid by the company, the secretary of administration shall refund the excess to the company with interest at the rate of 9 3 percent per year. If the amount of the tax upon the assessment as determined by the court is in excess of the amount of the tax as determined by the department, interest shall be paid on the additional amount at the rate of 12 percent per year from the date of entry of judgment to the date the judgment becomes final, and at 1.5 percent per month thereafter until paid.

SECTION 108. 76.28 (4) (b) of the statutes is amended to read:

76.28 (4) (b) In the case of overpayments of license fees by any light, heat and power company under par. (a), the department shall certify the overpayments to the department of administration, which shall audit the amount of the overpayments and the secretary of administration shall pay the amounts determined by means of the audit. All refunds of license fees under this subsection shall bear interest at the annual rate of 9 3 percent from the date of the original payment to the date when the refund is made. The time for making additional levies of license fees or claims for refunds of excess license fees paid, in respect to any year, shall be limited to 4 years after the time the report for such year was filed.

SECTION 109. 76.28 (11) of the statutes is amended to read:

76.28 (11) PAYMENT BEFORE CONTESTING. No action or proceeding, except a petition for redetermination under sub. (4), may be brought by a light, heat or power company against this state to contest any assessment of a tax under this section unless the taxpayer first pays to this state the amount of tax assessed. If the taxpayer prevails in an action or proceeding, this state shall settle with the taxpayer, including payment of interest at 9 3 percent per year on the amount of the money paid from the date of payment until the date of judgment.

SECTION 110. 76.39 (4) (d) of the statutes is amended to read:

76.39 (4) (d) All refunds shall be certified by the department to the department of administration which shall audit the amount of the refunds and the secretary of administration shall pay the amount, together with interest at the rate of 9 3 percent per year from the date payment was made. All additional taxes shall bear interest at the rate of 12 percent per year from the time they should have been paid to the date upon which the additional taxes shall become delinquent if unpaid.

SECTION 111. 76.48 (5) of the statutes is amended to read:

76.48 (5) Additional assessments may be made, if notice of such assessment is given, within 4 years of the date the annual return was filed, but if no return was filed, or if the return filed was incorrect and was filed with intent to defeat or evade the tax, an additional assessment may be made at any time upon the discovery of gross revenues by the department. Refunds may be made if a claim for the refund is filed in writing with the department within 4 years of the date the annual return was filed. Refunds shall bear interest at the rate of 9 3 percent per year and shall be certified by the department to the secretary of administration who shall audit the amounts of such overpayments and pay the amount audited. Additional assessments shall bear interest at the rate of 12 percent per year from the time they should have been paid to the date upon which they shall become delinquent if unpaid.

SECTION 112. 77.51 (13gm) (a) (intro.) of the statutes is renumbered 77.51 (13gm) (a) and amended to read:

77.51 (13gm) (a) “Retailer engaged in business in this state” does not include a retailer who has no activities as described in sub. (13g), except for activities described in sub. (13g) (c), unless the retailer meets either of the following criteria retailer's annual gross sales into this state exceed $100,000 in the previous year or current calendar year:.

SECTION 113. 77.51 (13gm) (a) 1. and 2. of the statutes are repealed.

SECTION 114. 77.51 (13gm) (b) of the statutes is amended to read:

77.51 (13gm) (b) If an out-of-state retailer's annual gross sales into this state exceed $100,000 in the previous calendar year or the retailer's annual number of separate sales transactions into this state is 200 or more in the previous year, the retailer shall register with the department and collect the taxes administered under s. 77.52 or 77.53 on sales sourced to this state under s. 77.522 for the entire current calendar year.

SECTION 115. 77.51 (13gm) (c) of the statutes is amended to read:

77.51 (13gm) (c) If an out-of-state retailer's annual gross sales into this state are $100,000 or less in the previous calendar year and the retailer's annual number of separate sales transactions into this state is less than 200 in the previous year, the retailer is not required to register with the department and collect the taxes administered under s. 77.52 or 77.53 on sales sourced to this state under s. 77.522 until the retailer's gross sales or transactions meet the criteria in par. (a) 1. or 2. exceed $100,000 for the current calendar year, at which time the retailer shall register with the department and collect the tax for the remainder of the current calendar year.

SECTION 116. 77.51 (13gm) (d) 1. of the statutes is repealed.

SECTION 117. 77.51 (13gm) (d) 2. of the statutes is amended to read:

77.51 (13gm) (d) 2. The annual amounts described in this subsection include “Gross sales” includes both taxable and nontaxable sales.

SECTION 118. 77.51 (13gm) (d) 3. and 4. of the statutes are repealed.

SECTION 119. 77.51 (13gm) (d) 5. of the statutes is amended to read:

77.51 (13gm) (d) 5. An out-of-state retailer's annual amounts gross sales include all sales into this state by the retailer on behalf of other persons and all sales into this state by another person on the retailer's behalf.

SECTION 120. 77.52 (2m) (b) of the statutes is amended to read:

77.52 (2m) (b) With respect to the type of services subject to tax under sub. (2) (a) 7., 10., 11., and 20. and except as provided in s. 77.54 (60) (b) and (bm) 2., all tangible personal property or items, property, or goods under s. 77.52 sub. (1) (b), (c), or (d) physically transferred, or transferred electronically, to the customer in conjunction with the selling, performing, or furnishing of the service is a sale of tangible personal property or items, property, or goods under s. 77.52 sub. (1) (b), (c), or (d) separate from the selling, performing, or furnishing of the service, regardless of whether the purchaser claims an exemption on its purchase of the service. This paragraph does not apply to services provided by veterinarians.

SECTION 121. 77.54 (6) (am) 2. of the statutes is amended to read:

77.54 (6) (am) 2. Containers, labels, sacks, cans, boxes, drums, bags or other packaging and shipping materials for use in packing, packaging or shipping tangible personal property or items or property under s. 77.52 (1) (b) or (c), if the containers, labels, sacks, cans, boxes, drums, bags, or other packaging and shipping materials are used by the purchaser to transfer merchandise to customers or physically transferred to the customer in conjunction with the selling, performing, or furnishing of the type of services under s. 77.52 (2) (a) 7., 10., 11., or 20. that are exempt from or not subject to taxation under this subchapter. This subdivision does not apply to services provided by veterinarians.

SECTION 122. 77.54 (9a) (f) of the statutes is amended to read:

77.54 (9a) (f) Any corporation, community chest, fund, or foundation or association organized and operated exclusively for religious, charitable, scientific or educational purposes, or for the prevention of cruelty to children or animals, except hospital service insurance corporations under s. 613.80 (2), no part of the net income of which inures to the benefit of any private stockholder, shareholder, member or corporation that is exempt from federal income tax under section 501 (c) (3) of the Internal Revenue Code and has received a determination letter from the internal revenue service. The exemption under this paragraph applies to churches and religious organizations that meet the requirements of section 501 (c) (3) but are not required to apply for and obtain tax-exempt status from the internal revenue service.

SECTION 123. 77.54 (9m) of the statutes is amended to read:

77.54 (9m) The sales price from the sale of and the storage, use, or other consumption of tangible personal property, or items or property under s. 77.52 (1) (b) or (c), sold to a construction contractor that, in fulfillment of a real property construction activity, transfers the tangible personal property, or items or property under s. 77.52 (1) (b) or (c), to an entity described under sub. (9a) (b), (c), (d), (em), (f), or (fc) or (9g), a technical college district, the University of Wisconsin Hospitals and Clinics Authority, the Board of Regents of the University of Wisconsin System, an institution, as defined in s. 36.05 (9), a college campus, as defined in s. 36.05 (6m), or the University of Wisconsin-Extension, if such tangible personal property, or items or property, becomes a component of a facility in this state that is owned by the entity. In this subsection, “facility” means any building, shelter, parking lot, parking garage, athletic field, athletic park, storm sewer, water supply system, or sewerage and waste water treatment facility, but does not include a highway, street, or road.

SECTION 124. 77.61 (5) (b) 8m. of the statutes is created to read:

77.61 (5) (b) 8m. The state auditor and the employees of the legislative audit bureau to the extent necessary for the bureau to carry out its duties under s. 13.94.

SECTION 125. 79.02 (1) of the statutes is amended to read:

79.02 (1) The Except as provided in sub. (2) (b), the department of administration, upon certification by the department of revenue, shall distribute shared revenue payments to each municipality and county on the 4th Monday in July and the 3rd Monday in November.

SECTION 126. 79.02 (2) (b) of the statutes is amended to read:

79.02 (2) (b) Subject to ss. 59.605 (4) and 70.995 (14) (b), payments in July shall equal 15 percent of the municipality's or county's estimated payments under ss. 79.035 and 79.04 and 100 percent of the municipality's estimated payments under s. 79.05. Upon certification by the department of revenue, the estimated payment under s. 79.05 may be distributed before the 4th Monday in July.

SECTION 127. 79.02 (3) (a) of the statutes is amended to read:

79.02 (3) (a) Subject to s. 59.605 (4), payments to each municipality and county in November shall equal that municipality's or county's entitlement under ss. 79.035, 79.04, and 79.05 for the current year, minus the amount distributed to the municipality or county in July under sub. (2) (b).

SECTION 128. 79.02 (3) (e) of the statutes is amended to read:

79.02 (3) (e) For the distribution in 2004 and subsequent years, the total amount of the November payments to each county and municipality under s. 79.035 sub. (1) shall be reduced by an amount equal to the amount of supplements paid from the appropriation accounts under s. 20.435 (4) (b) and (gm) that the county or municipality received for the fiscal year in which a payment is made under this section, as determined under s. 49.45 (51).

SECTION 129. 79.035 (6) of the statutes is amended to read:

79.035 (6) Beginning with the distributions in 2016 and ending with the distributions in 2035, the annual payment under this section s. 79.02 (1) to a county in which a sports and entertainment arena, as defined in s. 229.41 (11e), is located shall be the amount otherwise determined for the county under this section, minus $4,000,000.

SECTION 130. 79.035 (7) (b) of the statutes is amended to read:

79.035 (7) (b) Beginning with the first payment due under this section s. 79.02 (1) after the county or municipality receives a grant under s. 16.047 (4m), the department of administration shall apply the reduction determined under par. (a) for each county and municipality by reducing 10 consecutive annual payments under this section s. 79.02 (1) to the county or municipality by equal amounts. If in any year the reduction under this paragraph for a county or municipality exceeds the payment under this section for the county or municipality, the department of administration shall apply the excess amount of the reduction to the payment to the county or municipality under s. 79.04.

SECTION 131. 79.05 (1) (am) of the statutes is amended to read:

79.05 (1) (am) “Inflation factor” means a percentage equal to the average annual percentage change in the U.S. consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor, for the 12 months ending on September 30 August 31 of the year before the statement under s. 79.015, except that the percentage under this paragraph shall not be less than zero.

SECTION 132. 79.05 (2m) of the statutes is amended to read:

79.05 (2m) Annually, on November October 1, the department of revenue shall certify the appropriate percentage change in the consumer price index that is to be used in the requirement under sub. (1) (am) to the joint committee on finance.

SECTION 133. Initial applicability.

(1) HOMESTEAD CREDIT. The treatment of ss. 71.52 (1g) and 71.55 (10) first applies to claims filed for taxable years beginning after December 31, 2020.

(2) RETIREMENT INCOME EXCLUSION. The treatment of ss. 71.05 (1) (ae), (am), and (an) and (6) (b) 54. and 71.83 (1) (a) 6. and the amendment of s. 71.05 (6) (b) 4. (as it relates to the retirement income exclusion) first apply to taxable years beginning after December 31, 2020.

(3) REDUCTIONS IN SHARED REVENUE. The treatment of ss. 48.561 (3) (a) 3. and (b), 66.0602 (6) (a) and (b), 66.1105 (6m) (d) 4., 70.855 (4) (b), 70.995 (14) (b), 79.02 (3) (e), and 79.035 (6) and (7) (b) first applies to the distributions made in the year following publication.

(4) INTEREST RATE ON UTILITY TAX REFUNDS. The treatment of ss. 76.075, 76.13 (3), 76.28 (4) (b) and (11), 76.39 (4) (d), and 76.48 (5) first applies to refunds paid on the effective date of this subsection regardless of the taxable periods to which the refunds pertain.

(5) PROPERTY OF A CHURCH OR RELIGIOUS ASSOCIATION. The treatment of s. 70.11 (4) (b) 3. first applies to the property tax assessments as of January 1, 2021.

(6) UNIVERSITY OF WISCONSIN HOSPITALS AND CLINICS AUTHORITY. The treatment of s. 77.54 (9m) first applies to contracts entered into on the effective date of this subsection.

(6m) INCOME FROM GRANTS. The treatment of ss. 71.05 (1) (hn), 71.26 (3) (ag) 3. and (L), 71.34 (1k) (ah), and 71.45 (1) (dm) and (2) (a) 23. first applies to taxable years beginning after December 31, 2019, and before January 1, 2022.

(7) INCOME FROM THE CORONAVIRUS RELIEF FUND. The treatment of ss. 71.05 (1) (h), 71.26 (3) (ag) 2. and (L), 71.34 (1k) (af), and 71.45 (1) (d) and (2) (a) 22. first applies to taxable years beginning after December 31, 2018.

SECTION 134. Effective dates. This act takes effect on the day after publication, except as follows:

(1) OBJECTIONS TO MANUFACTURING ASSESSMENTS. The treatment of s. 70.995 (8) (c) 1. and (d) takes effect on the first January 1 after publication.

(2) BOARD OF REVIEW TRAINING. The treatment of s. 70.46 (4) takes effect on the first January 1 after publication.

(3) OMITTED PROPERTY. The treatment of s. 74.315 (1), (1m), (2), and (3) takes effect on the first January 1 after publication.

(4) ASSESSOR CERTIFICATION FEES. The treatment of s. 73.09 (4) (c) and (5) takes effect on the first January 1 after publication.

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