Wisconsin 2021-2022 Regular Session Status: Enacted Bipartisan · 14 R · 4 D cosponsors

AB 717 — Relating to: an income and franchise tax exemption for restaurant revitalization grants. (FE)

Last action — Published 3-8-2022

  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 November 17, 2021. Enacted.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Likely to advance 98% · high confidence

  • Enacted

    Current position in the legislative process.

  • 29 sponsors

    29 primary, 0 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (14 R · 4 D) — cross-party backing.

  • Cleared a recorded vote

    Passed 5 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Bill Text

What changed in the latest version

87 added · 31 removed

Plain-language change summary

The recent amendments to Assembly Bill 717 clarify how restaurant revitalization grants will be treated for tax purposes. Specifically, the language was adjusted to better reflect the relevant sections of federal tax law, ensuring that amounts received as grants will not be subject to state income and franchise taxes for certain business entities, like tax-option corporations and partnerships. This change simplifies compliance for restaurants and could provide them with crucial financial relief, helping them to recover after the challenges posed by the pandemic.

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Latest
- 2022 LEGISLATURE LRBa1008/1 JK:cdc ASSEMBLY AMENDMENT 1, TO ASSEMBLY BILL 717 November 29, 2021 - Offered by RepresentativITTKE.
- 2022 LEGISLATURE LRB-4359/1 JK:cjs ASSEMBLY BILL 717 November 17, 2021 - Introduced by Representatives W ITTK, KATSMA, KUGLITSCH, M ACCO , ZIMMERMAN , A LLEN, A RMSTRONG , BRANDTJEN , D ITTRIC, D OYLE, D UCHOW , EDMING, HORLACHER , KURTZ, MOSES, M URSAU, NOVAK, OLDENBURG , P ENTERMAN , OZAR , CHRAA , NODGRASS , WEARINGEN , THIESFELDT, VRUWINK, W ICHGERS, KNODL , SPREITZERand S UBECK , cosponsored by Senators ROTH, W ANGGAARD , BALLWEG, BERNIER, ARLING and JACQUE .
At the locations indicated, amend the bill as follows:
Referred to Committee on Ways and Means.
1.
A N A CT to amend 71.26 (3) (L);
Page 2, line 2:
and to create 71.05 (1) (hp), 71.26 (3) (ag) 4., 71.34 (1k) (ai), 71.45 (1) (dn) and 71.45 (2) (a) 24.
delete “pursuant to" and substitute “under section 5003 of".
of the statutes;
2.
relating to:
Page 2, line 5:
an income and franchise tax exemption for restaurant revitalization grants.
after “deductible." insert “Amounts excluded under this paragraph by a tax-option corporation or partnership shall be treated as tax-exempt income for purposes of sections 705 and 1366 of the Internal Revenue Code.".
Analysis by the Legislative Reference Bureau This bill creates an income and franchise tax exemption for income received in the form of a grant from the Restaurant Revitalization Fund established by the federal American Rescue Plan Act of 2021.
3.
Current law provides similar exemptions for income received in the form of allocations issued by the state with moneys received from the federal Coronavirus Relief Fund and used for a number of purposes, including broadband expansion, privately owned movie theater grants, music and performance venue grants, and lodging industry grants.
Page 2, line 8:
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.
delete “pursuant to" and substitute “under section 5003 of".
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
4.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
Page 2, line 10:
SECTION 1.
after “deductible." insert “Amounts excluded under this subdivision by a tax-option corporation or partnership shall be treated as tax-exempt income for purposes of sections 705 and 1366 of the Internal Revenue Code.".
71.05 (1) (hp) of the statutes is created to read:
5.
- 2022 Legislature - 2 - LRB-4359/1 JK:cjs ASSEMBLY BILL 717 SECTION 1 71.05 (1) (hp) Grants from the federal restaurant revitalization fund.
Page 3, line 9:
Income received in the form of a grant from the restaurant revitalization fund pursuant to the federal American Rescue Plan Act of 2021, P.L.
delete “pursuant to" and substitute “under section 5003 of".
117-2.
LRBa1008/1 - 2022 Legislature - 2 - JK:cdc 6.
Amounts otherwise deductible under this chapter that are paid directly or indirectly with the grant money are deductible.
Page 3, line 11:
SECTION 2.
after “deductible." insert “Amounts excluded under this paragraph by a tax-option corporation or partnership shall be treated as tax-exempt income for purposes of sections 705 and 1366 of the Internal Revenue Code.".
71.26 (3) (ag) 4.
7.
of the statutes is created to read:
Page 3, line 14:
71.26 (3) (ag) 4.
delete “pursuant to" and substitute “under section 5003 of".
Income received in the form of a grant from the restaurant revitalization fund pursuant to the federal American Rescue Plan Act of 2021, P.L.
8.
117-2.
Page 3, line 16:
Amounts otherwise deductible under this chapter that are paid directly or indirectly with the grant money are deductible.
after “deductible." insert “Amounts excluded under this paragraph by a tax-option corporation or partnership shall be treated as tax-exempt income for purposes of sections 705 and 1366 of the Internal Revenue Code.".
SECTION 3.
9.
71.26 (3) (L) of the statutes, as affected by 2021 Wisconsin Act 1, is amended to read:
Page 3, line 20:
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.
delete “pursuant to" and substitute “under section 5003 of".
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.
10.
In this paragraph, “wholly exempt income", for corporations subject to income taxation under this chapter, also includes interest on obligations of the United States.
Page 3, line 22:
In this paragraph, “wholly exempt income" does not include income excludable, not recognized, exempt or deductible under specific LRB-4359/1 - 2022 Legislature - 3 - JK:cjs SECTION 3 ASSEMBLY BILL 717 provisions of this chapterIf 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.
after “deductible." insert “Amounts excluded under this subdivision by a tax-option corporation or partnership shall be treated as tax-exempt income for purposes of sections 705 and 1366 of the Internal Revenue Code.".
This paragraph does not apply to the exclusion under par.
(ag, 3., or 4.
SECTION 4.
71.34 (1k) (ai) of the statutes is created to read:
71.34 (1k) (ai) Section 61 of the Internal Revenue Code is modified so that income received in the form of a grant from the restaurant revitalization fund, pursuant to the federal American Rescue Plan Act of 2021, P.L.
117-2, is not taxable income.
Amounts otherwise deductible under this chapter that are paid directly or indirectly with the grant money are deductible.
SECTION 5.
71.45 (1) (dn) of the statutes is created to read:
Show all 52 changed rows (12 more)
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Latest
71.45 (1) (dn) Income received in the form of a grant from the restaurant revitalization fund pursuant to the federal American Rescue Plan Act of 2021, P.L.
117-2.
Amounts otherwise deductible under this chapter that are paid directly or indirectly with the grant money are deductible.
SECTION 6.
71.45 (2) (a) 24.
of the statutes is created to read:
71.45 (2) (a) 24.
By subtracting from federal taxable income, to the extent included in federal taxable income, income received in the form of a grant from the restaurant revitalization fund pursuant to the federal American Rescue Plan Act of 2021, P.L.
117-2.
Amounts otherwise deductible under this chapter that are paid directly or indirectly with the grant money are deductible.
SECTION 7.0Initial applicability.
(1) This act first applies to taxable years beginning after December 31, 2020.
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Action History

  1. Published 3-8-2022

  2. Report approved by the Governor on 3-7-2022. 2021 Wisconsin Act 156

  3. Presented to the Governor on 3-3-2022

  4. Report correctly enrolled on 2-25-2022

  5. Received from Senate concurred in

  6. Ordered immediately messaged

  7. Read a third time and concurred in, Ayes 30, Noes 2

  8. Rules suspended

  9. Ordered to a third reading

  10. Read a second time

  11. Placed on calendar 2-15-2022 pursuant to Senate Rule 18(1)

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

  13. Available for scheduling

  14. Report concurrence recommended by Joint Committee on Finance, Ayes 14, Noes 1

  15. Executive action taken

  16. Withdrawn from committee on Senate Organization and rereferred to joint committee on Finance pursuant to Senate Rule 46(2)(c)

  17. Available for scheduling

  18. Read first time and referred to committee on Senate Organization

  19. Received from Assembly

  20. Ordered immediately messaged

  21. Read a third time and passed

  22. Rules suspended

  23. Ordered to a third reading

  24. Assembly Amendment 1 adopted

  25. Read a second time

  26. Placed on calendar 1-20-2022 by Committee on Rules

  27. Referred to committee on Rules

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

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

  30. Representatives Cabrera and Drake added as coauthors

  31. Representative Considine added as a coauthor

  32. Representatives Vining and Shankland added as coauthors

  33. Representative Andraca added as a coauthor

  34. Executive action taken

  35. Representative Haywood added as a coauthor

  36. Representative Ohnstad added as a coauthor

  37. Representative Conley added as a coauthor

  38. Representative Hong added as a coauthor

  39. Public hearing held

  40. Representative Shelton added as a coauthor

  41. Assembly Amendment 1 offered by Representative Wittke

  42. Fiscal estimate received

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

  44. Introduced by Representatives Wittke, Katsma, Kuglitsch, Macco, Zimmerman, Allen, Armstrong, Brandtjen, Dittrich, Doyle, Duchow, Edming, Horlacher, Kurtz, Moses, Mursau, Novak, Oldenburg, Penterman, Rozar, Schraa, Snodgrass, Swearingen, Thiesfeldt, Vruwink, Wichgers, Knodl, Spreitzer and Subeck; cosponsored by Senators Roth, Wanggaard, Ballweg, Bernier, Darling and Jacque

Sponsors

Sponsorship breakdown

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29 sponsors · 0 co-sponsors · 103 not signed on

Sponsors (29)

Co-sponsors (0)

None.

Not signed on (103)

103 members have not signed on to this bill.

Show all 103 →

"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

CONCURRENCE

Passed 30 Yea · 2 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 9201
Republican 13000
Democrat 8000
Total 30201
% of votes cast 91%6%0%3%
How each member voted (33)
Member Party Vote
AGARD — Yea
RINGHAND — Yea
BALLWEG — Yea
ROTH — Yea
BERNIER — Yea
BEWLEY — Yea
DARLING — Yea
ERPENBACH — Yea
PETROWSKI — Yea
COWLES — Nay
STROEBEL — Nay
KOOYENGA — Not Voting
Carpenter, Tim Democrat Yea
Johnson, LaTonya Democrat Yea
Larson, Chris Democrat Yea
Pfaff, Brad Democrat Yea
Roys, Kelda Democrat Yea
Smith, Jeff Democrat Yea
Taylor, Sequanna Democrat Yea
Wirch, Robert Democrat Yea
Bradley, Julian Republican Yea
Felzkowski, Mary Republican Yea
Feyen, Dan Republican Yea
Jacque, André Republican Yea
Jagler, John Republican Yea
Kapenga, Chris Republican Yea
LeMahieu, Devin Republican Yea
Marklein, Howard Republican Yea
Nass, Steve Republican Yea
Stafsholt, Rob Republican Yea
Testin, Patrick Republican Yea
Wanggaard, Van Republican Yea
Wimberger, Eric Republican Yea

Official roll call →

Subjects

taxation labor
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors AB 717?
AB 717 is sponsored by Subeck, Lisa (Democrat), Spreitzer, Mark (Democrat), Knodl, Daniel (Republican), Wichgers, Chuck (Republican), Vruwink, Thiesfeldt, Swearingen, Rob (Republican), Snodgrass, Lee (Democrat), Schraa, Rozar, Penterman, William (Republican), Oldenburg, Novak, Todd (Republican), Mursau, Jeffrey (Republican), Moses, Clint (Republican), Kurtz, Tony (Republican), Horlacher, Edming, Duchow, Cindi (Republican), Doyle, Steve (Democrat), Dittrich, Barbara (Republican), Brandtjen, Armstrong, David (Republican), Allen, Scott (Republican), Zimmerman, Shannon (Republican), Macco, Kuglitsch, Katsma, and Wittke, Robert (Republican).
What is the current status of AB 717?
This bill has been enacted into law. Introduced November 17, 2021. Enacted.
Where can I track AB 717?
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