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Wisconsin Legislature: SB859: Bill Text
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SB859: Bill Text
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2025 - 2026 LEGISLATURE
LRB-5030/1
JK:skw
2025 SENATE BILL 859
January 16, 2026 - Introduced by Senator
Marklein
, cosponsored by Representative
Wittke
. Referred to Committee on Agriculture and Revenue.
SB859,1,8
1
An Act
to amend
71.01 (6) (n) 1., 71.07 (5) (a) (intro.), 71.07 (5) (a) 2., 71.07 (5)
2
(a) 3., 71.07 (5) (a) 4., 71.22 (4) (n) 1., 71.22 (4m) (n) 1., 71.26 (2) (b) 15. a., 71.26
3
(3) (e) 1., 71.34 (1g) (n) 1., 71.34 (1k) (h) 1., 71.42 (2) (n) 1., 71.65 (2) (b), 71.70
4
(1) and 71.72;
to create
71.01 (6) (o), 71.05 (21m), 71.22 (4) (o), 71.22 (4m) (o),
5
71.26 (2) (a) 13., 71.26 (2) (b) 16., 71.34 (1g) (o), 71.42 (2) (o) and 71.45 (2) (a)
6
25. of the statutes;
relating to:
adopting changes to the federal Internal
7
Revenue Code for state tax purposes and modifying administrative rules
8
related to such changes.
Analysis by the Legislative Reference Bureau
This bill adopts, for state income and franchise tax purposes, changes made to the federal Internal Revenue Code so that the state tax code, generally, conforms to the federal tax code. The bill also modifies rules promulgated by the Department of Revenue with regard to reporting non-wage payments, rents, and royalties, so that the rules also confirm with recent changes made to the federal Internal Revenue Code.
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.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SB859,1
1
Section
1
.
71.01 (6) (n) 1. of the statutes is amended to read:
SB859,2,6
2
71.01
(6)
(n) 1. For taxable years beginning after December 31, 2022,
and
3
before January 1, 2026,
for individuals and fiduciaries, except fiduciaries of nuclear
4
decommissioning trust or reserve funds, “Internal Revenue Code” means the
5
federal Internal Revenue Code as amended to December 31, 2022, except as
6
provided in subds. 2. and 3. and s. 71.98, and subject to subd. 4.
SB859,2
7
Section
2
.
71.01 (6) (o) of the statutes is created to read:
SB859,2,12
8
71.01
(6)
(o) 1. For taxable years beginning after December 31, 2025, for
9
individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or
10
reserve funds, “Internal Revenue Code” means the federal Internal Revenue Code
11
as amended to December 31, 2025, except as provided in subds. 2. and 3. and s.
12
71.98, and subject to subd. 4.
SB859,3,9
13
2. For purposes of this paragraph, “Internal Revenue Code” does not include
14
the following provisions of federal public laws for taxable years beginning after
15
December 31, 2025: section 422 of P.L.
108-357
; section 1351 of P.L.
109-58
; section
16
403 (q) of P.L.
109-135
; section 104 of P.L.
109-432
; section 11 (e) and (g) of P.L. 110-
17
172; section 301 of P.L.
110-245
; section 15351 of P.L.
110-246
; section 801 of
18
division C of P.L.
110-343
; sections 211, 212, 213, and 214 of P.L.
111-226
; section
19
2122 of P.L.
111-240
; sections 322 and 323 of P.L.
112-240
; section 1101 of P.L. 114-
1
74; sections 128, 143, 144, 169, 326, and 411 of division Q of P.L.
114-11
3; sections
2
11011, 11012, 13201 (a) to (e) and (g), 13221, 13301, 13304 (a), (b), and (d), 13531,
3
14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221,
4
14222, 14301, 14302, 14304, and 14401 of P.L.
115-9
7; sections 101 (d), 201 to 207,
5
and 302 of division U of P.L.
115-14
1; section 145 of division Q of P.L.
116-9
4;
6
sections 2304 and 2306 of P.L.
116-13
6; sections 111, 116, and 210 of division EE of
7
P.L.
116-26
0; section 9041 of P.L.
117-
2; section 13903 (b) of P.L.
117-16
9; and
8
sections 70105, 70301, 70303, 70307, 70312, 70321, 70322, 70323, 70341, 70342,
9
70351, 70353, 70354, 70421, 70425, 70426, 70434, 70509, and 70601 of P.L.
119-2
1.
SB859,3,13
10
3. For purposes of this paragraph, “Internal Revenue Code” does not include
11
amendments to the federal Internal Revenue Code, including provisions of federal
12
public laws that directly or indirectly affect the Internal Revenue Code, enacted
13
after December 31, 2025.
SB859,4,21
14
4. For purposes of this paragraph, the provisions of federal public laws that
15
directly or indirectly affect the Internal Revenue Code, as defined in this
16
paragraph, apply for Wisconsin purposes at the same time as for federal purposes,
17
except changes made by sections 1, 3, 4, and 5 of P.L.
106-519
; sections 101 and 102
18
of P.L.
108-357
; section 1310 of P.L.
109-58
; section 11146 of P.L.
109-59
; section 513
19
of P.L.
109-222
; sections 8233 and 8235 of P.L.
110-28
; section 302 of division A,
20
section 401 of division B, and sections 312, 322, 502 (c), and 707 of division C of P.L.
21
110-343
; sections 1232, 1251, 1501, and 1502 of division B of P.L.
111-5
; section 216
22
of P.L.
111-226
; sections 753, 754, and 760 of P.L.
111-312
; sections 104, 318, 326,
23
327, and 411 of P.L.
112-240
; sections 159 (a) and 221 of division A of P.L.
113-295
;
24
section 2 of P.L.
114-7
; section 305 of division P and sections 123, 125, 126, 127, 151,
1
152, 153, 165, 166, 167, 170, 171, 189, and 191 of division Q of P.L.
114-11
3; sections
2
13204, 13206, 13305 (a), 13601, and 13801 of P.L.
115-9
7; sections 40304, 40305,
3
40306, 40309, 40412, and 40414 of P.L.
115-12
3; section 101 (c) of division T of P.L.
4
115-14
1; sections 101 (e), 102, 301, and 401 (a) (47) and (195), (b) (13), (17), (22) and
5
(30), and (d) (1) (D) (v), (vi), (xiii) and (xvii) (II) and (4) (a) of division U of P.L. 115-
6
141; sections 101, 104, 114, 115, 116, 118, 130, 132, and 144 of division Q of P.L.
7
116-9
4; section 2307 of division A of P.L.
116-13
6; sections 106, 114, 115, 118 (a) and
8
(d), 133, 137, and 138 of division EE of P.L.
116-26
0; sections 5003, 9671, 9673, 9675
9
and 9708 of P.L.
117-
2; section 307 of division P of P.L.
117-10
3; section 4151 of
10
division FF of P.L.
117-32
8; section 2 of P.L.
118-14
6; sections 2, 3, and 4 of P.L. 118-
11
148; section 2 of P.L.
118-16
7; sections 2, 3, 4, and 5 of P.L.
118-16
8; section 202 of
12
P.L.
118-25
8; sections 70101, 70102, 70103, 70104, 70106, 70107, 70108, 70109,
13
70110, 70111, 70112, 70113, 70114, 70115, 70116, 70117, 70118, 70119, 70120,
14
70201, 70202, 70203, 70204, 70302, 70304, 70305, 70306, 70308, 70309, 70311,
15
70313, 70331, 70352, 70401, 70402, 70403, 70404, 70405, 70411, 70412, 70413,
16
70414, 70415, 70416, 70422, 70423, 70424, 70427, 70428, 70429, 70430, 70431,
17
70432, 70433, 70435, 70436, 70437, 70438, 70439, 70501, 70502, 70503, 70504,
18
70505, 70506, 70507, 70508, 70510, 70511, 70512, 70513, 70514, 70515, 70521,
19
70522, 70523, 70524, 70525, 70602, 70603, 70604, 70605, 70606, 70607, 71301,
20
71302, 71303, 71304, 71305, 71306, 71307, and 71308 of P.L.
119-2
1; and section 2
21
of P.L.
119-2
9 apply for taxable years beginning after December 31, 2025.
SB859,3
22
Section
3
.
71.05 (21m) of the statutes is created to read:
SB859,5,7
23
71.05
(21m)
Differences in statutes
. Except as otherwise provided in this
24
subchapter, to prevent the double inclusion or omission of any item of income, loss,
1
deduction, or basis, an addition or subtraction to income, as appropriate, shall be
2
made equal to the difference in income for the taxable year due to state and federal
3
differences, including differences arising from the difference in basis of assets
4
disposed of in a transaction in which gain or loss is recognized for state tax
5
purposes, different depreciation methods or difference in basis of depreciable
6
assets, different elections, or transitional adjustments due to differences in the
7
statutes.
SB859,4
8
Section
4
.
71.07 (5) (a) (intro.) of the statutes is amended to read:
SB859,5,11
9
71.07
(5)
(a) (intro.) Add the amounts allowed as itemized deductions under
10
the
internal revenue code
Internal Revenue Code without regard to section 68 of
11
the Internal Revenue Code,
except:
SB859,5
12
Section
5
.
71.07 (5) (a) 2. of the statutes is amended to read:
SB859,5,14
13
71.07
(5)
(a) 2. Taxes under section 164 or 216 (a) (1) of the
internal revenue
14
code
Internal Revenue Code
.
SB859,6
15
Section
6
.
71.07 (5) (a) 3. of the statutes is amended to read:
SB859,5,19
16
71.07
(5)
(a) 3. Casualty and theft deductions under section 165 (c) (3) of the
17
internal revenue code
Internal Revenue Code
, except for casualty losses that are
18
directly related to a presidentially declared disaster under
26 USC 7508A
or a state
19
declared disaster under section
165
(h) (5) of the Internal Revenue Code
.
SB859,7
20
Section
7
.
71.07 (5) (a) 4. of the statutes is amended to read:
SB859,5,22
21
71.07
(5)
(a) 4. Expenses to move from this state under section 217 of the
22
internal revenue code
Internal Revenue Code
.
SB859,8
23
Section
8
.
71.22 (4) (n) 1. of the statutes is amended to read:
SB859,6,4
24
71.22
(4)
(n) 1. For taxable years beginning after December 31, 2022,
and
1
before January 1, 2026,
“Internal Revenue Code” means the federal Internal
2
Revenue Code as amended to December 31, 2022, except as provided in subds. 2.
3
and 3. and subject to subd. 4., and except as provided in sub. (4m) and ss. 71.26 (2)
4
(b) and (3), 71.34 (1g), 71.42 (2), and 71.98.
SB859,9
5
Section
9
.
71.22 (4) (o) of the statutes is created to read:
SB859,6,10
6
71.22
(4)
(o) 1. For taxable years beginning after December 31, 2025,
7
“Internal Revenue Code” means the federal Internal Revenue Code as amended to
8
December 31, 2025, except as provided in subds. 2. and 3., and subject to subd. 4.,
9
and except as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34 (1g), 71.42 (2),
10
and 71.98.
SB859,7,2
11
2. For purposes of this paragraph, “Internal Revenue Code” does not include
12
the following provisions of federal public laws for taxable years beginning after
13
December 31, 2025: section 422 of P.L.
108-357
; section 1351 of P.L.
109-58
; section
14
403 (q) of P.L.
109-135
; section 104 of P.L.
109-432
; section 11 (e) and (g) of P.L. 110-
15
172; section 301 of P.L.
110-245
; section 15351 of P.L.
110-246
; section 801 of
16
division C of P.L.
110-343
; sections 211, 212, 213, and 214 of P.L.
111-226
; section
17
2122 of P.L.
111-240
; sections 322 and 323 of P.L.
112-240
; section 1101 of P.L. 114-
18
74; sections 128, 143, 144, 169, 326, and 411 of division Q of P.L.
114-113
; sections
19
11011, 11012, 13201 (a) to (e) and (g), 13221, 13301, 13304 (a), (b), and (d), 13531,
20
14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221,
21
14222, 14301, 14302, 14304, and 14401 of P.L.
115-97
; sections 101 (d) 201 to 207,
22
and 302 of division U of P.L.
115-141
; section 145 of division Q of P.L.
116-94
;
23
sections 2304 and 2306 of P.L.
116-136
; sections 111, 116, and 210 of division EE of
24
P.L.
116-260
; section 9041 of P.L.
117-2
; section 13903 (b) of P.L.
117-169
; and
1
sections 70105, 70301, 70303, 70307, 70312, 70321, 70322, 70323, 70341, 70342,
2
70351, 70353, 70354, 70421, 70425, 70426, 70434, 70509, and 70601 of P.L.
119-2
1.
SB859,7,6
3
3. For purposes of this paragraph, “Internal Revenue Code” does not include
4
amendments to the federal Internal Revenue Code, including provisions of federal
5
public laws that directly or indirectly affect the Internal Revenue Code, enacted
6
after December 31, 2025.
SB859,8,14
7
4. For purposes of this paragraph, the provisions of federal public laws that
8
directly or indirectly affect the Internal Revenue Code, as defined in this
9
paragraph, apply for Wisconsin purposes at the same time as for federal purposes,
10
except changes made by sections 1, 3, 4, and 5 of P.L.
106-519
; sections 101 and 102
11
of P.L.
108-357
; section 1310 of P.L.
109-58
; section 11146 of P.L.
109-59
; section 513
12
of P.L.
109-222
; sections 8233 and 8235 of P.L.
110-28
; section 302 of division A,
13
section 401 of division B, and sections 312, 322, 502 (c), and 707 of division C of P.L.
14
110-343
; sections 1232, 1251, 1501, and 1502 of division B of P.L.
111-5
; section 216
15
of P.L.
111-226
; sections 753, 754, and 760 of P.L.
111-312
; sections 104, 318, 326,
16
327, and 411 of P.L.
112-240
; sections 159 (a) and 221 of division A of P.L.
113-295
;
17
section 2 of P.L.
114-7
; section 305 of division P and sections 123, 125, 126, 127, 151,
18
152, 153, 165, 166, 167, 170, 171, 189, and 191 of division Q of P.L.
114-113
; sections
19
13204, 13206, 13305 (a), 13601, and 13801 of P.L.
115-97
; sections 40304, 40305,
20
40306, 40309, 40412, and 40414 of P.L.
115-123
; section 101 (c) of division T of P.L.
21
115-141
; sections 101 (e), 102, 301, and 401 (a) (47) and (195), (b) (13), (17), (22), and
22
(30), and (d) (1) (D) (v), (vi), (xiii), and (xvii) (II) and (4) (a) of division U of P.L. 115-
23
141; sections 101, 104, 114, 115, 116, 118, 130, 132, and 144 of division Q of P.L.
24
116-94
; section 2307 of division A of P.L.
116-136
; sections 106, 114, 115, 118 (a) and
1
(d), 133, 137, and 138 of division EE of P.L.
116-26
0; sections 5003, 9671, 9673,
2
9675, and 9708 of P.L.
117-
2; section 307 of division P of P.L.
117-10
3; section 4151
3
of division FF of P.L.
117-32
8; section 2 of P.L.
118-14
6; sections 2, 3, and 4 of P.L.
4
118-14
8; section 2 of P.L.
118-16
7; sections 2, 3, 4, and 5 of P.L.
118-16
8; section 202
5
of P.L.
118-25
8; sections 70101, 70102, 70103, 70104, 70106, 70107, 70108, 70109,
6
70110, 70111, 70112, 70113, 70114, 70115, 70116, 70117, 70118, 70119, 70120,
7
70201, 70202, 70203, 70204, 70302, 70304, 70305, 70306, 70308, 70309, 70311,
8
70313, 70331, 70352, 70401, 70402, 70403, 70404, 70405, 70411, 70412, 70413,
9
70414, 70415, 70416, 70422, 70423, 70424, 70427, 70428, 70429, 70430, 70431,
10
70432, 70433, 70435, 70436, 70437, 70438, 70439, 70501, 70502, 70503, 70504,
11
70505, 70506, 70507, 70508, 70510, 70511, 70512, 70513, 70514, 70515, 70521,
12
70522, 70523, 70524, 70525, 70602, 70603, 70604, 70605, 70606, 70607, 71301,
13
71302, 71303, 71304, 71305, 71306, 71307, and 71308 of P.L.
119-2
1; and section 2
14
of P.L.
119-2
9 apply for taxable years beginning after December 31, 2025.
SB859,10
15
Section
10
.
71.22 (4m) (n) 1. of the statutes is amended to read:
SB859,8,20
16
71.22
(4m)
(n) 1. For taxable years beginning after December 31, 2022,
and
17
before January 1, 2026,
“Internal Revenue Code,” for corporations that are subject
18
to a tax on unrelated business income under s. 71.26 (1) (a), means the federal
19
Internal Revenue Code as amended to December 31, 2022, except as provided in
20
subds. 2. and 3. and s. 71.98, and subject to subd. 4.
SB859,11
21
Section
11
.
71.22 (4m) (o) of the statutes is created to read:
SB859,9,2
22
71.22
(4m)
(o) 1. For taxable years beginning after December 31, 2025,
23
“Internal Revenue Code,” for corporations that are subject to a tax on unrelated
24
business income under s. 71.26 (1) (a), means the federal Internal Revenue Code as
1
amended to December 31, 2025, except as provided in subds. 2. and 3. and s. 71.98,
2
and subject to subd. 4.
SB859,9,18
3
2. For purposes of this paragraph, “Internal Revenue Code” does not include
4
the following provisions of federal public laws for taxable years beginning after
5
December 31, 2025: section 422 of P.L.
108-357
; section 1351 of P.L.
109-58
; section
6
403 (q) of P.L.
109-135
; section 104 of P.L.
109-432
; section 11 (e) and (g) of P.L. 110-
7
172; section 301 of P.L.
110-245
; section 15351 of P.L.
110-246
; section 801 of
8
division C of P.L.
110-343
; sections 211, 212, 213, and 214 of P.L.
111-226
; section
9
2122 of P.L.
111-240
; sections 322 and 323 of P.L.
112-240
; section 1101 of P.L. 114-
10
74; sections 128, 143, 144, 169, 326, and 411 of division Q of P.L.
114-113
; sections
11
11011, 11012, 13201 (a) to (e) and (g), 13221, 13301, 13304 (a), (b), and (d), 13531,
12
14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221,
13
14222, 14301, 14302, 14304, and 14401 of P.L.
115-97
; sections 101 (d) 201 to 207,
14
and 302 of division U of P.L.
115-141
; section 145 of division Q of P.L.
116-94
;
15
sections 2304 and 2306 of P.L.
116-136
; sections 111, 116, and 210 of division EE of
16
P.L.
116-260
; section 9041 of P.L.
117-2
; section 13903 (b) of P.L.
117-169
; and
17
sections 70105, 70301, 70303, 70307, 70312, 70321, 70322, 70323, 70341, 70342,
18
70351, 70353, 70354, 70421, 70425, 70426, 70434, 70509, and 70601 of P.L.
119-21
.
SB859,9,22
19
3. For purposes of this paragraph, “Internal Revenue Code” does not include
20
amendments to the federal Internal Revenue Code, including provisions of federal
21
public laws that directly or indirectly affect the Internal Revenue Code, enacted
22
after December 31, 2025.
SB859,9,24
23
4. For purposes of this paragraph, the provisions of federal public laws that
24
directly or indirectly affect the Internal Revenue Code, as defined in this
1
paragraph, apply for Wisconsin purposes at the same time as for federal purposes,
2
except changes made by sections 1, 3, 4, and 5 of P.L.
106-51
9; sections 101 and 102
3
of P.L.
108-35
7; section 1310 of P.L.
109-5
8; section 11146 of P.L.
109-5
9; section 513
4
of P.L.
109-22
2; sections 8233 and 8235 of P.L.
110-2
8; section 302 of division A,
5
section 401 of division B, and sections 312, 322, 502 (c), and 707 of division C of P.L.
6
110-34
3; sections 1232, 1251, 1501, and 1502 of division B of P.L.
111-
5; section 216
7
of P.L.
111-22
6; sections 753, 754, and 760 of P.L.
111-31
2; sections 104, 318, 326,
8
327, and 411 of P.L.
112-24
0; sections 159 (a) and 221 of division A of P.L.
113-29
5;
9
section 2 of P.L.
114-
7; section 305 of division P and sections 123, 125, 126, 127, 151,
10
152, 153, 165, 166, 167, 170, 171, 189, and 191 of division Q of P.L.
114-11
3; sections
11
13204, 13206, 13305 (a), 13601, and 13801 of P.L.
115-9
7; sections 40304, 40305,
12
40306, 40309, 40412, and 40414 of P.L.
115-12
3; section 101 (c) of division T of P.L.
13
115-14
1; sections 101 (e), 102, 301, and 401 (a) (47) and (195), (b) (13), (17), (22), and
14
(30), and (d) (1) (D) (v), (vi), (xiii), and (xvii) (II) and (4) (a) of division U of P.L. 115-
15
141; sections 101, 104, 114, 115, 116, 118, 130, 132, and 144 of division Q of P.L.
16
116-9
4; section 2307 of division A of P.L.
116-13
6; sections 106, 114, 115, 118 (a) and
17
(d), 133, 137, and 138 of division EE of P.L.
116-26
0; sections 5003, 9671, 9673,
18
9675, and 9708 of P.L.
117-
2; section 307 of division P of P.L.
117-10
3; section 4151
19
of division FF of P.L.
117-32
8; section 2 of P.L.
118-14
6; sections 2, 3, and 4 of P.L.
20
118-14
8; section 2 of P.L.
118-16
7; sections 2, 3, 4, and 5 of P.L.
118-16
8; section 202
21
of P.L.
118-25
8; sections 70101, 70102, 70103, 70104, 70106, 70107, 70108, 70109,
22
70110, 70111, 70112, 70113, 70114, 70115, 70116, 70117, 70118, 70119, 70120,
23
70201, 70202, 70203, 70204, 70302, 70304, 70305, 70306, 70308, 70309, 70311,
24
70313, 70331, 70352, 70401, 70402, 70403, 70404, 70405, 70411, 70412, 70413,
1
70414, 70415, 70416, 70422, 70423, 70424, 70427, 70428, 70429, 70430, 70431,
2
70432, 70433, 70435, 70436, 70437, 70438, 70439, 70501, 70502, 70503, 70504,
3
70505, 70506, 70507, 70508, 70510, 70511, 70512, 70513, 70514, 70515, 70521,
4
70522, 70523, 70524, 70525, 70602, 70603, 70604, 70605, 70606, 70607, 71301,
5
71302, 71303, 71304, 71305, 71306, 71307, and 71308 of P.L
. 119-
21; and section 2
6
of P.L
. 119-
29 apply for taxable years beginning after December 31, 2025.
SB859,12
7
Section
12
.
71.26 (2) (a) 13. of the statutes is created to read:
SB859,11,15
8
71.26
(2)
(a) 13. Except as otherwise provided in this subchapter, to prevent
9
the double inclusion or omission of any item of income, loss, deduction, or basis,
10
plus or minus, as appropriate, an amount equal to the difference in income for the
11
taxable year due to state and federal differences, including differences arising from
12
the difference in basis of assets disposed of in a transaction in which gain or loss is
13
recognized for state tax purposes, different depreciation methods or difference in
14
basis of depreciable assets, different elections, or transitional adjustments due to
15
differences in the statutes.
SB859,13
16
Section
13
.
71.26 (2) (b) 15. a. of the statutes is amended to read:
SB859,12,2
17
71.26
(2)
(b) 15. a. For taxable years beginning after December 31, 2022,
and
18
before January 1, 2026,
for a corporation, conduit, or common law trust that
19
qualifies as a regulated investment company, real estate mortgage investment
20
conduit, real estate investment trust, or financial asset securitization investment
21
trust under the Internal Revenue Code, “net income” means the federal regulated
22
investment company taxable income, federal real estate mortgage investment
23
conduit taxable income, federal real estate investment trust, or financial asset
1
securitization investment trust taxable income of the corporation, conduit, or trust
2
as determined under the Internal Revenue Code.
SB859,14
3
Section
14
.
71.26 (2) (b) 16. of the statutes is created to read:
SB859,12,12
4
71.26
(2)
(b) 16. a. For taxable years beginning after December 31, 2025, for a
5
corporation, conduit, or common law trust that qualifies as a regulated investment
6
company, real estate mortgage investment conduit, real estate investment trust, or
7
financial asset securitization investment trust under the Internal Revenue Code,
8
“net income” means the federal regulated investment company taxable income,
9
federal real estate mortgage investment conduit taxable income, federal real estate
10
investment trust, or financial asset securitization investment trust taxable income
11
of the corporation, conduit, or trust as determined under the Internal Revenue
12
Code.
SB859,12,15
13
b. For purposes of subd. 16. a., “Internal Revenue Code” means the federal
14
Internal Revenue Code as amended to December 31, 2025, except as provided in
15
subd. 16. c. and d. and s. 71.98, and subject to subd. 16. e.
SB859,13,7
16
c. For purposes of subd. 16. a., “Internal Revenue Code” does not include the
17
following provisions of federal public laws for taxable years beginning after
18
December 31, 2025: section 422 of P.L.
108-357
; section 1351 of P.L.
109-58
; section
19
403 (q) of P.L.
109-135
; section 104 of P.L.
109-432
; section 11 (e) and (g) of P.L. 110-
20
172; section 301 of P.L.
110-245
; section 15351 of P.L.
110-246
; section 801 of
21
division C of P.L.
110-343
; sections 211, 212, 213, and 214 of P.L.
111-226
; section
22
2122 of P.L.
111-240
; sections 322 and 323 of P.L.
112-240
; section 1101 of P.L. 114-
23
74; sections 128, 143, 144, 169, 326, and 411 of division Q of P.L.
114-113
; sections
24
11011, 11012, 13201 (a) to (e) and (g), 13221, 13301, 13304 (a), (b), and (d), 13531,
1
14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221,
2
14222, 14301, 14302, 14304, and 14401 of P.L.
115-9
7; sections 101 (d) 201 to 207,
3
and 302 of division U of P.L.
115-14
1; section 145 of division Q of P.L.
116-9
4;
4
sections 2304 and 2306 of P.L.
116-13
6; sections 111, 116, and 210 of division EE of
5
P.L.
116-26
0; section 9041 of P.L.
117-
2; section 13903 (b) of P.L.
117-16
9; and
6
sections 70105, 70301, 70303, 70307, 70312, 70321, 70322, 70323, 70341, 70342,
7
70351, 70353, 70354, 70421, 70425, 70426, 70434, 70509, and 70601 of P.L.
119-2
1.
SB859,13,10
8
d. For purposes of subd. 16. a., “Internal Revenue Code” does not include
9
amendments to the federal Internal Revenue Code enacted after December 31,
10
2025.
SB859,14,18
11
e. For purposes of subd. 16. a., the provisions of federal public laws that
12
directly or indirectly affect the Internal Revenue Code, as defined in this
13
subdivision, apply for Wisconsin purposes at the same time as for federal purposes,
14
except changes made by sections 1, 3, 4, and 5 of P.L.
106-519
; sections 101 and 102
15
of P.L.
108-357
; section 1310 of P.L.
109-58
; section 11146 of P.L.
109-59
; section 513
16
of P.L.
109-222
; sections 8233 and 8235 of P.L.
110-28
; section 302 of division A,
17
section 401 of division B, and sections 312, 322, 502 (c), and 707 of division C of P.L.
18
110-343
; sections 1232, 1251, 1501, and 1502 of division B of P.L.
111-5
; section 216
19
of P.L.
111-226
; sections 753, 754, and 760 of P.L.
111-312
; sections 104, 318, 326,
20
327, and 411 of P.L.
112-240
; sections 159 (a) and 221 of division A of P.L.
113-295
;
21
section 2 of P.L.
114-7
; section 305 of division P and sections 123, 125, 126, 127, 151,
22
152, 153, 165, 166, 167, 170, 171, 189, and 191 of division Q of P.L.
114-113
; sections
23
13204, 13206, 13305 (a), 13601, and 13801 of P.L.
115-97
; sections 40304, 40305,
24
40306, 40309, 40412, and 40414 of P.L.
115-123
; section 101 (c) of division T of P.L.
1
115-14
1; sections 101 (e), 102, 301, and 401 (a) (47) and (195), (b) (13), (17), (22), and
2
(30), and (d) (1) (D) (v), (vi), (xiii), and (xvii) (II) and (4) (a) of division U of P.L. 115-
3
141; sections 101, 104, 114, 115, 116, 118, 130, 132, and 144 of division Q of P.L.
4
116-9
4; section 2307 of division A of P.L.
116-13
6; sections 106, 114, 115, 118 (a) and
5
(d), 133, 137, and 138 of division EE of P.L.
116-26
0; sections 5003, 9671, 9673,
6
9675, and 9708 of P.L.
117-
2; section 307 of division P of P.L.
117-10
3; section 4151
7
of division FF of P.L.
117-32
8; section 2 of P.L.
118-14
6; sections 2, 3, and 4 of P.L.
8
118-14
8; section 2 of P.L.
118-16
7; sections 2, 3, 4, and 5 of P.L.
118-16
8; section 202
9
of P.L.
118-25
8; sections 70101, 70102, 70103, 70104, 70106, 70107, 70108, 70109,
10
70110, 70111, 70112, 70113, 70114, 70115, 70116, 70117, 70118, 70119, 70120,
11
70201, 70202, 70203, 70204, 70302, 70304, 70305, 70306, 70308, 70309, 70311,
12
70313, 70331, 70352, 70401, 70402, 70403, 70404, 70405, 70411, 70412, 70413,
13
70414, 70415, 70416, 70422, 70423, 70424, 70427, 70428, 70429, 70430, 70431,
14
70432, 70433, 70435, 70436, 70437, 70438, 70439, 70501, 70502, 70503, 70504,
15
70505, 70506, 70507, 70508, 70510, 70511, 70512, 70513, 70514, 70515, 70521,
16
70522, 70523, 70524, 70525, 70602, 70603, 70604, 70605, 70606, 70607, 71301,
17
71302, 71303, 71304, 71305, 71306, 71307, and 71308 of P.L.
119-2
1; and section 2
18
of P.L.
119-2
9 apply for taxable years beginning after December 31, 2025.
SB859,15
19
Section
15
.
71.26 (3) (e) 1. of the statutes is amended to read:
SB859,15,2
20
71.26
(3)
(e) 1. So that payments for wages, salaries, commissions and
21
bonuses of employees and officers may be deducted only if the name, address and
22
amount paid to each resident of this state to whom compensation
of $600 or more
23
that equals or exceeds the dollar amount in effect for the calendar year under
24
section
6041
(a) of the Internal Revenue Code
has been paid during the taxable year
1
is reported or if the department of revenue is satisfied that failure to report has
2
resulted in no revenue loss to this state.
SB859,16
3
Section
16
.
71.34 (1g) (n) 1. of the statutes is amended to read:
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