Wisconsin 2023-2024 Regular Session Status: Enacted

AB 406 — Relating to: adopting changes to the federal Internal Revenue Code for state tax purposes. (FE)

Last action — Published 10-26-2023

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced September 06, 2023. Enacted.

Signed by Governor Tony Evers (Democratic) on October 26, 2023.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 6 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

464 added · 1152 removed

Plain-language change summary

The recent amendments to Bill AB 406 involve changes to how the state tax code aligns with federal tax updates. The amended version removes references to certain federal tax changes made by acts in 2017 and modifies the provisions to focus on more recent laws, specifically from 2021 to 2023. This matters because it ensures that state tax laws reflect current federal standards, which can impact tax exemptions and benefits for local residents and businesses. By updating these references, the bill aims to simplify tax compliance and potentially enhance the tax benefits available to small businesses.

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- 2024 LEGISLATURE LRBs0102/1 JK:wlj/klm/cjs ASSEMBLY SUBSTITUTE AMENDMENT 1, TO ASSEMBLY BILL 406 September 14, 2023 - Offered by Representative K ATSMA .
- 2024 LEGISLATURE LRB-4108/1 JK:cdc&amn ASSEMBLY BILL 406 September 6, 2023 - Introduced by Representative KATSMA , cosponsored by Senator M ARKLEIN .
Referred to Committee on Ways and Means.
Referred to Joint Survey Committee on Tax Exemptions.
to amend 71.26 (2) (b) 11.
to amend 71.01 (6) (m) 1., 71.22 (4) (m) 1., 71.22 (4m) (m) 1., 71.34 (1g) (m) 1.
c., 71.26 (2) (b) 11.
and 71.42 (2) (m) 1.;
d., 71.26 (2) (b) 11.
and to create 71.01 (6) (n), 71.01 (6) (o), 71.22 (4) (n), 71.22 (4) (o), 71.22 (4m) (n), 71.22 (4m) (o), 71.34 (1g) (n), 71.34 (1g) (o), 71.42 (2) (n), 71.42 (2) (o) and 71.98 (5) (b) of the statutes;
e., 71.26 (2) (b) 12.
c., 71.26 (2) (b) 12.
d., 71.26 (2) (b) 12.
e., 71.26 (2) (b) 13.
a., 71.26 (2) (b) 13.
d.
and 71.26 (2) (b) 13.
e.;
to repeal and recreate 71.01 (6) (k), 71.01 (6) (L), 71.01 (6) (m), 71.22 (4) (k), 71.22 (4) (L), 71.22 (4) (m), 71.22 (4m) (k), 71.22 (4m) (L), 71.22 (4m) (m), 71.34 (1g) (k), 71.34 (1g) (L), 71.34 (1g) (m), 71.42 (2) (k), 71.42 (2) (L) and 71.42 (2) (m);
and to create 71.01 (6) (n), 71.22 (4) (n), 71.22 (4m) (n), 71.26 (2) (b) 15., 71.34 (1g) (n), 71.42 (2) (n) and 71.98 (5) (b) of the statutes;
Analysis by the Legislative Reference Bureau This bill adopts, for state income and franchise tax purposes, certain changes made to the Internal Revenue Code by federal acts adopted in 2021 and 2022.
Analysis by the Legislative Reference Bureau This bill adopts, for state income and franchise tax purposes, certain changes made to the Internal Revenue Code by the following federal acts:
For example, the bill updates the state law reference to the federal Internal Revenue Code regarding the exclusion for gain from certain small business stock so that the exclusion allowed under state law is always in compliance with the exclusion under federal law.
1.
LRBs0102/1 - 2024 Legislature - 2 - JK:wlj/klm/cjs The bill does not adopt changes made by the federal Tax Cuts and Jobs Act, enacted in December 2017.
The American Rescue Plan Act of 2021.
The bill also does not include changes to federal law regarding student loan forgiveness.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
S ECTION 1.
71.01 (6) (k) of the statutes is repealed and recreated to read:
71.01(6) (k) 1.
For taxable years beginning after December 31, 2016, and before January 1, 2018, 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, 2016, except as provided in subds.
and 3.
The Infrastructure Investment and Jobs Act.
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, 2016:
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.
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109-135;
section 513 of P.L.
109-222;
section 104 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;
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;
and LRBs0102/1 - 2024 Legislature - 3 - JK:wlj/klm/cjs SECTION 1 sections 112, 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 326, and 411 of division Q of P.L.
114-113.
For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code, including provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, enacted after December 31, 2016, except that “Internal Revenue Code” includes sections 11024, 11025, and 13543 of P.L.
The Consolidated Appropriations Act of 2022.
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;
section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L.
116-94;
and section 9707 of P.L.
117-2.
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 as follows:
The Inflation Reduction Act of 2022.
a.
5.
Changes made by section 4007 (b) of P.L.
The Consolidated Appropriations Act of 2023.
114-41, section 1102 of P.L.
The bill also updates the reference to the federal Internal Revenue Code regarding the exclusion for gain from certain small business stock so that the exclusion allowed under state law is always in compliance with the exclusion under federal law.
114-74, and sections 105, 111, 113 to 115, 133, 301, 302, 304, 305, 308, 311, 313 to 323, 325, 331, and 343 to 345 of division Q of P.L.
Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.
114-113 first apply for taxable years beginning after December 31, 2016.
- 2024 Legislature - 2 - LRB-4108/1 JK:cdc&amn ASSEMBLY BILL 406 For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
b.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
Changes made by section 1201 of P.L.
SECTION 1.
108-173 and section 307 of P.L.
71.01 (6) (m) 1.
109-432 first apply for taxable years beginning after December 31, 2010.
of the statutes is amended to read:
S ECTION 2.
71.01 (6) (m) 1.
71.01 (6) (L) of the statutes is repealed and recreated to read:
For taxable years beginning after December 31, 2020, and before January 1, 2022, 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.
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 LRBs0102/1 - 2024 Legislature - 4 - JK:wlj/klm/cjs SECTION 2 Internal Revenue Code as amended to December 31, 2017, except as provided in subds.
71.98, and subject to subd.
71.98 and subject to subd.
SECTION 2.
71.01 (6) (n) of the statutes is created to read:
71.01(6) (n) 1.
For taxable years beginning after December 31, 2021, and before January 1, 2023, 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, 2021, except as provided in subds.
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, 2017:
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;
section 104 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, 1251, 1501, and 1502 of division B of P.L.
111-5;
sections 211, 212, 213, 214, and 216 of P.L.
111-226;
section 2122 of P.L.
111-240;
sections 754 and 760 ofP.L.
111-312;
sections 104, 318, 322, 323, 326, 327, and 411ofP.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, 326, and 411 of division Q of P.L.
114-113;
and 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.
3.
For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code, including provisions of federal public laws that directly or indirectly affect the 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.
LRBs0102/1 - 2024 Legislature - 5 - JK:wlj/klm/cjs SECTION 2 115-141;
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;
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;
and sections 9701, 9702, 9703, 9704, 9705, 9706, and 9707 of P.L.
117-2.
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 as follows:
a.
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.
b.
Changes made by section 1201 of P.L.
108-173 and section 307 of P.L.
109-432 first apply for taxable years beginning after December 31, 2010.
c.
Changes made by section 13113 of P.L.
103-66;
section 1241 of division B of P.L.
111-5;
section 2011 of P.L.
111-240;
section 753 of P.L.
111-312;
and section 324 of P.L.
112-240 first apply for taxable years beginning after December 31, 2018.
S ECTION 3.
71.01 (6) (m) of the statutes is repealed and recreated to read:
71.01 (6) (m) 1.
For taxable years beginning after December 31, 2020, and before January 1, 2023, 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.
71.98, and subject to subd.
71.98 and subject to subd.
LRBs0102/1 - 2024 Legislature - 6 - JK:wlj/klm/cjs SECTION 3 2.
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:
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, 2021:
section 104 of P.L.
sections 104 and 307 of P.L.
111-5;
LRB-4108/1 - 2024 Legislature - 3 - JK:cdc&amn SECTION 2 ASSEMBLY BILL 406 111-5;
sections 754 and 760 ofP.L.
sections 754 and 760 of P.L.
sections 104, 318, 322, 323, 326, 327, and 411ofP.L.
section 1106 of P.L.
112-95;
sections 104, 318, 322, 323, 326, 327, and 411 of P.L.
sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 326, and 411 of division Q of P.L.
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.
and sections 111, 114, 115, 116, 118 (a) and (d), 133, 137, 138, and 210 of division EE of P.L.
sections 111, 114, 115, 116, 118 (a) and (d), 133, 137, 138, and 210 of division EE of P.L.
116-260.
116-260;
P.L.
117-6;
P.L.
117-44;
P.L.
117-52;
section 307 of division P of P.L.
117-103;
P.L.
117-167;
P.L.
117-263;
and P.L.
117-286.
For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code, including provisions of federal LRBs0102/1 - 2024 Legislature - 7 - JK:wlj/klm/cjs SECTION 3 public laws that directly or indirectly affect the Internal Revenue Code, enacted after December 31, 2020, except that “Internal Revenue Code” includes sections 9671, 9701, 9702, 9703, 9704, 9705, 9706, and 9707 of P.L.
For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2021.
117-2;
and sections 80501, 80504, and 80602 of division H of P.L.
117-58.
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 as follows:
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 section 9671 of P.L.
a.
117-2;
Changes made by sections 20101, 20102, 20104, 20201, 40201, 40202, 40203, 40308, 40309, 40311, 40414, 41101, 41107, 41114, 41115, and 41116 of P.L.
and sections 80501 and 80504 of division H of P.L.
115-123;
117-58 apply for taxable years beginning after December 31, 2021.
section 101 (a), (b), and (h) of division U of P.L.
SECTION 3.
115-141;
71.01 (6) (o) of the statutes is created to read:
section 1203 of P.L.
- 2024 Legislature - 4 - LRB-4108/1 JK:cdc&amn ASSEMBLY BILL 406 S ECTION 3 71.01 (6) (o) 1.
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.
b.
Changes made by section 1201 of P.L.
108-173 and section 307 of P.L.
109-432 first apply for taxable years beginning after December 31, 2010.
S ECTION 4.
71.01 (6) (n) of the statutes is created to read:
71.01 (6) (n) 1.
71.98, and subject to subd.
71.98 and subject to subd.
LRBs0102/1 - 2024 Legislature - 8 - JK:wlj/klm/cjs SECTION 4 2.
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, 2022:
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, 2021:
section 104 of P.L.
sections 104 and 307 of P.L.
section 2122 of P.L.
sections 2011 and 2122 of P.L.
sections 754 and 760 ofP.L.
sections 754 and 760 of P.L.
sections 104, 318, 322, 323, 326, 327, and 411ofP.L.
section 1106 of P.L.
112-95;
sections 104, 318, 322, 323, 326, 327, and 411 of P.L.
sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 326, and 411 of division Q of P.L.
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.
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.
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) LRB-4108/1 - 2024 Legislature - 5 - JK:cdc&amn SECTION 3 ASSEMBLY BILL 406 and (xvii) (II) of division U of P.L.
sections 5003, 9041, 9673, 9675, and 9708 of P.L.
P.L.
117-2;
117-6;
P.L.
117-44;
P.L.
117-52;
section 13903 (b) of P.L.
P.L.
117-169;
117-167;
and section 4151 of division FF of P.L.
P.L.
117-263;
P.L.
117-286;
and section 4151 of P.L.
LRBs0102/1 - 2024 Legislature - 9 - JK:wlj/klm/cjs SECTION 4 3.
3.
For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code, including provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, enacted after December 31, 2022.
For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2022.
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 as follows:
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 9623 and 9624 of P.L.
a.
Changes made by sections 5001, 5002, 5005, 9623, 9624, and 9672 of P.L.
section 2 of P.L.
sections 80401, 80402, and 80601 of division H of P.L.
117-6;
117-58;
and sections 80401, 80402, and 80601 of division H of P.L.
sections 13203, 13303, and 13801 of P.L.
117-58 apply for taxable years beginning after December 31, 2022.
117-169;
b.
and sections 102, 111, 114, 124, 126, and 605 of division T of P.L.
Changes made by section 1201 of P.L.
117-328 apply for taxable years beginning after December 31, 2022.
108-173 and section 307 of P.L.
SECTION 4.
109-432 apply for taxable years beginning after December 31, 2010.
71.22 (4) (m) 1.
S ECTION 5.
of the statutes is amended to read:
71.22 (4) (k) of the statutes is repealed and recreated to read:
71.22 (4) (m) 1.
71.22(4) (k) 1.
For taxable years beginning after December 31, 2020, and before January 1, 2022, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2020, except as provided in subds.
For taxable years beginning after December 31, 2016, and before January 1, 2018, “Internal Revenue Code” means the federal Internal Revenue Code as amended to December 31, 2016, except as provided in subds.
SECTION 5.
71.22 (4) (n) of the statutes is created to read:
71.22(4) (n) 1.
For taxable years beginning after December 31, 2021, and before January 1, 2023, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2021, except as provided in subds.
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, 2016:
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;
section 104 of P.L.
109-432;
sections 8233 and 8235 of P.L.
110-28;
LRBs0102/1 - 2024 Legislature - 10 - JK:wlj/klm/cjs SECTION 5 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;
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;
and sections 112, 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 326, and 411 of division Q of P.L.
114-113.
3.
For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code, including provisions of federal public laws that directly or indirectly affect the 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;
section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L.
116-94;
and section 9707 of P.L.
117-2.
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 as follows:
a.
Changes made by section 4007 (b) of P.L.
114-41, section 1102 of P.L.
114-74, and sections 105, 111, 113 to 115, 133, 301, 302, 304, 305, 308, 311, 313 to 323, 325, 331, and 343 to 345 of division Q of P.L.
114-113 first apply for taxable years beginning after December 31, 2016.
LRBs0102/1 - 2024 Legislature - 11 - JK:wlj/klm/cjs SECTION 5 b.
Changes made by section 1201 of P.L.
108-173 and section 307 of P.L.
109-432 first apply for taxable years beginning after December 31, 2010.
S ECTION 6.
71.22 (4) (L) of the statutes is repealed and recreated 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 subject to subd.
and subject - 2024 Legislature - 6 - LRB-4108/1 JK:cdc&amn ASSEMBLY BILL 406 S ECTION 5 to subd.
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, 2017:
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, 2021:
section 104 of P.L.
sections 104 and 307 of P.L.
section 2122 of P.L.
sections 2011 and 2122 of P.L.
sections 754 and 760 ofP.L.
sections 754 and 760 of P.L.
sections 104, 318, 322, 323, 326, 327, and 411ofP.L.
section 1106 of P.L.
112-95;
sections 104, 318, 322, 323, 326, 327, and 411 of P.L.
sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 326, and 411 of division Q of P.L.
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.
and 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.
LRBs0102/1 - 2024 Legislature - 12 - JK:wlj/klm/cjs SECTION 6 3.
For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code, including provisions of federal public laws that directly or indirectly affect the 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;
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;
and sections 9701, 9702, 9703, 9704, 9705, 9706, and 9707 of P.L.
117-2.
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 as follows:
a.
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.
b.
Changes made by section 1201 of P.L.
108-173 and section 307 of P.L.
109-432 first apply for taxable years beginning after December 31, 2010.
c.
Changes made by section 13113 of P.L.
103-66;
section 1241 of division B of P.L.
111-5;
section 2011 of P.L.
111-240;
section 753 of P.L.
111-312;
and section 324 of P.L.
112-240 first apply for taxable years beginning after December 31, 2018.
LRBs0102/1 - 2024 Legislature - 13 - JK:wlj/klm/cjs SECTION 7 S ECTION 7.
71.22 (4) (m) of the statutes is repealed and recreated to read:
71.22 (4) (m) 1.
For taxable years beginning after December 31, 2020, and before January 1, 2023, “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.
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:
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;
section 104 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, 1251, 1501, and 1502 of division B of P.L.
111-5;
sections 211, 212, 213, 214, and 216 of P.L.
111-226;
section 2122 of P.L.
111-240;
sections 754 and 760 ofP.L.
111-312;
sections 104, 318, 322, 323, 326, 327, and 411ofP.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, 326, and 411 of division Q of P.L.
114-113;
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) LRBs0102/1 - 2024 Legislature - 14 - JK:wlj/klm/cjs S ECTION 7 (1) (D) (v), (vi), and (xiii) and (xvii) (II) of division U of P.L.
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.
and section 307 of division P of P.L.
P.L.
117-103.
LRB-4108/1 - 2024 Legislature - 7 - JK:cdc&amn SECTION 5 ASSEMBLY BILL 406 117-6;
P.L.
117-44;
P.L.
117-52;
section 307 of division P of P.L.
117-103;
P.L.
117-167;
P.L.
117-263;
and P.L.
117-286.
For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code, including provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, enacted after December 31, 2020, except that “Internal Revenue Code” includes sections 9671, 9701, 9702, 9703, 9704, 9705, 9706, and 9707 of P.L.
For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2021.
117-2;
and sections 80501, 80504, and 80602 of division H of P.L.
117-58.
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 as follows:
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 section 9671 of P.L.
a.
117-2;
Changes made by sections 20101, 20102, 20104, 20201, 40201, 40202, 40203, 40308, 40309, 40311, 40414, 41101, 41107, 41114, 41115, and 41116 of P.L.
and sections 80501 and 80504 of division H of P.L.
115-123;
117-58 apply for taxable years beginning after December 31, 2021.
section 101 (a), (b), and (h) of division U of P.L.
SECTION 6.
115-141;
71.22 (4) (o) of the statutes is created to read:
section 1203 of P.L.
71.22 (4) (o) 1.
116-25;
For taxable years beginning after December 31, 2022, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2022, except as provided in subds.
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.
b.
Changes made by section 1201 of P.L.
108-173 and section 307 of P.L.
109-432 first apply for taxable years beginning after December 31, 2010.
S ECTION 8.
71.22 (4) (n) of the statutes is created to read:
LRBs0102/1 - 2024 Legislature - 15 - JK:wlj/klm/cjs SECTION 8 71.22 (4) (n) 1.
For taxable years beginning after December 31, 2022, “Internal Revenue Code” means the federal Internal Revenue Code as amended to December 31, 2022, except as provided in subds.
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, 2022:
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, 2021:
section 104 of P.L.
sections 104 and 307 of P.L.
section 2122 of P.L.
sections 2011 and 2122 of P.L.
sections 754 and 760 ofP.L.
sections 754 and 760 of P.L.
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Action History

  1. Published 10-26-2023

  2. Report approved by the Governor on 10-25-2023. 2023 Wisconsin Act 36

  3. Presented to the Governor on 10-23-2023

  4. Report correctly enrolled on 10-19-2023

  5. LRB correction (Assembly Substitute Amendment 1)

  6. Received from Senate concurred in

  7. Ordered immediately messaged

  8. Read a third time and concurred in, Ayes 32, Noes 0

  9. Rules suspended to give bill its third reading

  10. Ordered to a third reading

  11. Senate Amendment 1 rejected, Ayes 22, Noes 10

  12. Read a second time

  13. Senate Amendment 1 offered by Senators Roys, Larson, Smith, Agard, Carpenter, Hesselbein, L. Johnson, Pfaff, Spreitzer, Taylor and Wirch

  14. Placed on calendar 10-17-2023 pursuant to Senate Rule 18(1)

  15. Public hearing requirement waived by committee on Senate Organization, pursuant to Senate Rule 18 (1m), Ayes 5, Noes 0

  16. Available for scheduling

  17. Received from Assembly

  18. Ordered immediately messaged

  19. Read a third time and passed, Ayes 97, Noes 0

  20. Rules suspended

  21. Ordered to a third reading

  22. Assembly Substitute Amendment 1 adopted

  23. Read a second time

  24. Representative Steffen added as a coauthor

  25. Report of Joint Survey Committee on Tax Exemptions received, Ayes 9, Noes 0

  26. Executive action taken by joint survey committee on Tax Exemptions

  27. Placed on calendar 10-17-2023 by Committee on Rules

  28. Referred to committee on Rules

  29. Report passage as amended recommended by Committee on Ways and Means, Ayes 12, Noes 0

  30. Report Assembly Substitute Amendment 1 adoption recommended by Committee on Ways and Means, Ayes 12, Noes 0

  31. Executive action taken

  32. Public hearing held

  33. Fiscal estimate received

  34. Assembly Substitute Amendment 1 offered by Representative Katsma

  35. Read first time and referred to Joint Survey Committee on Tax Exemptions

  36. Read first time and referred to Committee on Ways and Means

  37. Introduced by Representative Katsma; cosponsored by Senator Marklein

Sponsors

  • Katsma · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 131 not signed on

Sponsors (1)

  • Katsma

Co-sponsors (0)

None.

Not signed on (131)

131 members have not signed on to this bill.

Show all 131 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

PASSAGE

Passed 97 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Republican 44000
Democrat 24000
Unaffiliated 29000
Total 97000
% of votes cast 100%0%0%0%
How each member voted (97)
Member Party Vote
BALDEH — Yea
BINSFELD — Yea
BODDEN — Yea
BRANDTJEN — Yea
CABRERA — Yea
CONLEY — Yea
CONSIDINE — Yea
EDMING — Yea
GOYKE — Yea
JOHNSON — Yea
KATSMA — Yea
MACCO — Yea
MAGNAFICI — Yea
MICHALSKI — Yea
MYERS — Yea
OHNSTAD — Yea
OLDENBURG — Yea
PETRYK — Yea
PLUMER — Yea
RETTINGER — Yea
RIEMER — Yea
ROZAR — Yea
SCHMIDT — Yea
SCHRAA — Yea
SCHUTT — Yea
SHANKLAND — Yea
SHELTON — Yea
SPEAKER — Yea
ANDERSON, J — Yea
Anderson, Clinton Democrat Yea
Andraca, Deb Democrat Yea
Bare, Mike Democrat Yea
Billings, Jill Democrat Yea
Clancy, Ryan Democrat Yea
Doyle, Steve Democrat Yea
Drake, Dora Democrat Yea
Emerson, Jodi Democrat Yea
Haywood, Kalan Democrat Yea
Hong, Francesca Democrat Yea
Jacobson, Jenna Democrat Yea
Joers, Alex Democrat Yea
Madison, Darrin Democrat Yea
McGuire, Tip Democrat Yea
Moore Omokunde, Supreme Democrat Yea
Neubauer, Greta Democrat Yea
Ortiz-Velez, Sylvia Democrat Yea
Palmeri, Lori Democrat Yea
Ratcliff, Melissa Democrat Yea
Sinicki, Christine Democrat Yea
Snodgrass, Lee Democrat Yea
Stubbs, Shelia Democrat Yea
Subeck, Lisa Democrat Yea
Vining, Robyn Democrat Yea
Allen, Scott Republican Yea
Armstrong, David Republican Yea
August, Tyler Republican Yea
Behnke, Elijah Republican Yea
Born, Mark Republican Yea
Brooks, Robert Republican Yea
Callahan, Calvin Republican Yea
Dallman, Alex Republican Yea
Dittrich, Barbara Republican Yea
Donovan, Bob Republican Yea
Duchow, Cindi Republican Yea
Goeben, Joy Republican Yea
Green, Chanz Republican Yea
Gundrum, Rick Republican Yea
Gustafson, Nate Republican Yea
Hurd, Karen Republican Yea
Kitchens, Joel Republican Yea
Krug, Scott Republican Yea
Kurtz, Tony Republican Yea
Maxey, Dave Republican Yea
Melotik, Paul Republican Yea
Moses, Clint Republican Yea
Murphy, David Republican Yea
Mursau, Jeffrey Republican Yea
Nedweski, Amanda Republican Yea
Neylon, Adam Republican Yea
O'Connor, Jerry Republican Yea
Penterman, William Republican Yea
Petersen, Kevin Republican Yea
Pronschinske, Treig Republican Yea
Rodriguez, Jessie Republican Yea
Snyder, Patrick Republican Yea
Sortwell, Shae Republican Yea
Spiros, John Republican Yea
Steffen, David Republican Yea
Summerfield, Rob Republican Yea
Swearingen, Rob Republican Yea
Tittl, Paul Republican Yea
Tranel, Travis Republican Yea
Tusler, Ron Republican Yea
VanderMeer, Nancy Republican Yea
Wichgers, Chuck Republican Yea
Wittke, Robert Republican Yea
Zimmerman, Shannon Republican Yea

Official roll call →

CONCURRENCE

Passed 32 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 5000
Republican 19000
Democrat 8001
Total 32001
% of votes cast 97%0%0%3%
How each member voted (33)
Member Party Vote
AGARD — Yea
BALLWEG — Yea
JOHNSON — Yea
STROEBEL — Yea
COWLES — Yea
Carpenter, Tim Democrat Yea
Hesselbein, Dianne Democrat Yea
Larson, Chris Democrat Yea
Pfaff, Brad Democrat Yea
Roys, Kelda Democrat Yea
Smith, Jeff Democrat Yea
Spreitzer, Mark Democrat Yea
Taylor, Sequanna Democrat Not Voting
Wirch, Robert Democrat Yea
Bradley, Julian Republican Yea
Cabral-Guevara, Rachael Republican Yea
Felzkowski, Mary Republican Yea
Feyen, Dan Republican Yea
Hutton, Rob Republican Yea
Jacque, André Republican Yea
Jagler, John Republican Yea
James, Jesse Republican Yea
Kapenga, Chris Republican Yea
Knodl, Daniel Republican Yea
LeMahieu, Devin Republican Yea
Marklein, Howard Republican Yea
Nass, Steve Republican Yea
Quinn, Romaine Republican Yea
Stafsholt, Rob Republican Yea
Testin, Patrick Republican Yea
Tomczyk, Cory Republican Yea
Wanggaard, Van Republican Yea
Wimberger, Eric Republican Yea

Official roll call →

Subjects

taxation
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Frequently asked questions

Who sponsors AB 406?
AB 406 is sponsored by Katsma.
What is the current status of AB 406?
This bill has been enacted into law. Introduced September 06, 2023. Enacted.
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