Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB922 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	LRB-4106/1
2	2	KP:skw
3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 922
5	5	January 12, 2024 - Introduced by Representatives SORTWELL, MURPHY, O'CONNOR,
6	6	SCHMIDT and GOEBEN, cosponsored by Senator JACQUE. Referred to Committee
7	7	on Ways and Means.
8	8	*AUTHORS SUBJECT TO CHANGE*
9	9	AN ACT to renumber and amend 71.98 (3); and to create 71.98 (3) (b) and 71.98
10	10	(3) (c) of the statutes; relating to: adopting federal income tax provisions
11	11	related to depreciation and amortization.
12	12	Analysis by the Legislative Reference Bureau
13	13	This bill adopts, beginning in tax year 2023, for state income and franchise tax
14	14	purposes, the current federal Internal Revenue Code related to depreciation and
15	15	amortization, including provisions related to a depreciation allowance for certain
16	16	property, known as bonus depreciation. For state income and franchise tax purposes,
17	17	current law generally adopts the federal Internal Revenue Code provisions related
18	18	to depreciation and amortization in effect on January 1, 2014. Under the bill,
19	19	generally, a taxpayer may take a depreciation deduction equal to 80 percent of the
20	20	adjusted basis of qualified property placed in service during tax year 2023, and the
21	21	applicable deduction percentage is 60 percent for tax year 2024, 40 percent for tax
22	22	year 2025, and 20 percent for tax year 2026. Under current federal law, the bonus
23	23	depreciation allowance sunsets for tax year 2027.
24	24	For further information see the state fiscal estimate, which will be printed as
25	25	an appendix to this bill.
26	26	The people of the state of Wisconsin, represented in senate and assembly, do
27	27	enact as follows:
28	28	1
29	29	2
30	30	3 - 2 -2023 - 2024 Legislature LRB-4106/1
31	31	KP:skw
32	32	SECTION 1 ASSEMBLY BILL 922
33	33	SECTION 1. 71.98 (3) of the statutes is renumbered 71.98 (3) (a) and amended
34	34	to read:
35	35	71.98 (3) (a) For taxable years beginning after December 31, 2013, and before
36	36	January 1, 2023, and for purposes of computing depreciation and amortization, the
37	37	Internal Revenue Code means the federal Internal Revenue Code in effect for federal
38	38	purposes on January 1, 2014, except that sections 13201 (f), 13203, 13204, and 13205
39	39	of P.L. 115-97, section 2307 of division A of P.L. 116-136, and section 202 of division
40	40	EE of P.L. 116-260 apply at the same time as for federal purposes.
41	41	(d) For taxable years beginning after December 31, 2013, and for purposes of
42	42	computing depletion, the Internal Revenue Code means the federal Internal
43	43	Revenue Code in effect for federal purposes for the year in which the property is
44	44	placed in service.
45	45	SECTION 2. 71.98 (3) (b) of the statutes is created to read:
46	46	71.98 (3) (b) Notwithstanding ss. 71.01 (6) (m), 71.22 (4) (m), and 71.42 (2) (m),
47	47	for taxable years beginning after December 31, 2022, and for purposes of computing
48	48	depreciation, the Internal Revenue Code means the federal Internal Revenue Code
49	49	in effect for federal purposes for the year in which the property is placed in service,
50	50	except that property placed in service in taxable years beginning before January 1,
51	51	2023, shall continue to be depreciated as described in par. (a).
52	52	SECTION 3. 71.98 (3) (c) of the statutes is created to read:
53	53	71.98 (3) (c) Notwithstanding ss. 71.01 (6) (m), 71.22 (4) (m), and 71.42 (2) (m),
54	54	for taxable years beginning after December 31, 2022, and for purposes of computing
55	55	amortization, the Internal Revenue Code means the federal Internal Revenue Code
56	56	in effect for federal purposes for the year in which the amortized expense is made,
57	57	1
58	58	2
59	59	3
60	60	4
61	61	5
62	62	6
63	63	7
64	64	8
65	65	9
66	66	10
67	67	11
68	68	12
69	69	13
70	70	14
71	71	15
72	72	16
73	73	17
74	74	18
75	75	19
76	76	20
77	77	21
78	78	22
79	79	23
80	80	24 - 3 -2023 - 2024 Legislature
81	81	LRB-4106/1
82	82	KP:skw
83	83	SECTION 3
84	84	ASSEMBLY BILL 922
85	85	except that amortized expenses made in taxable years beginning before January 1,
86	86	2023, shall continue to be amortized as described in par. (a).
87	87	(END)
88	88	1
89	89	2
90	90	3