Wisconsin ~ Multiple Taxes: Assembly Passes Budget Bill With Numerous Tax Provisions

The Wisconsin Assembly has passed the 2011 budget bill, which would make numerous sales and use, personal income, and corporation franchise and income tax changes, including those described below.

If enacted, the bill would authorize combined groups to share net business loss carryforwards incurred by group members before 2009, prohibit the Department of Revenue from disregarding the tax effect of an election to include a controlled business in a combined group (or from disallowing the election), create a qualified production activities income tax credit, modify references to the Internal Revenue Code (IRC) for tax years 2011 and thereafter to include IRC provisions enacted through December 31, 2010 (with exceptions), allow a deferral for long-term capital gain reinvested in a qualified Wisconsin business, provide an exclusion for qualifying gain from the sale of a Wisconsin capital asset, modify the percentages used to calculate the earned income tax credit for certain claimants, and make modifications to various other credits, including the jobs tax credit.

Sales and use tax changes in the bill include creating exemptions for advertising and promotional direct mail; snow-making and snow-grooming machines and equipment; modular and manufactured homes that are used in real property construction activities outside Wisconsin; and vegetable oil or animal fat that is converted into motor fuel that is exempt from the motor vehicle fuel tax as personal renewable fuel.

The bill text is available at http://legis.wisconsin.gov/.

A.B. 40, as passed by the Wisconsin Assembly on June 16, 2011; Summaries, Wisconsin Legislative Fiscal Bureau, June 2011

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