2025 - 2026 LEGISLATURE
LRB-2503/1
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2025 SENATE BILL 176
April 3, 2025 - Introduced by Senators QUINN, BRADLEY, FEYEN, JAMES, KEYESKI,
PFAFF, RATCLIFF, STAFSHOLT, TESTIN, TOMCZYK and WIMBERGER, cosponsored
by Representatives SUMMERFIELD, STEFFEN, GUSTAFSON, ARMSTRONG,
CALLAHAN, DITTRICH, GREEN, B. JACOBSON, J. JACOBSON, JOHNSON,
KAUFERT, KITCHENS, KREIBICH, MOSES, MURSAU, NOVAK, O'CONNOR,
SUBECK, SWEARINGEN, TUCKER, UDELL, VANDERMEER and WITTKE. Referred
to Committee on Agriculture and Revenue.
AN ACT to create 71.05 (1) (j), 71.26 (1) (j), 71.34 (1k) (q) and 71.45 (1) (dp) of
the statutes; relating to: an income and franchise tax exemption for
broadband expansion grants and for federal high-cost program funding for
broadband expansion.
Analysis by the Legislative Reference Bureau
This bill exempts from state income and franchise taxes income received in the
form of a grant issued by this state; a city, village, town, or county of this state; a
tribal government in this state; or the federal government for broadband expansion
in this state. The bill also exempts from income and franchise taxes income
received in the form of funding from the federal government for any high-cost
universal service funding for broadband expansion. Current law provides an
income and franchise tax exemption for income received in the form of allocations
issued by this state with moneys received from the federal coronavirus relief fund to
be used for broadband expansion. The bill prohibits claiming the exemptions under
the bill and the exemption under current law for the same grant.
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.
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SECTION 1
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:
SECTION 1. 71.05 (1) (j) of the statutes is created to read:
71.05 (1) (j) Grants and high-cost universal service funding for broadband
expansion. 1. Income received in the form of a grant issued by this state; a political
subdivision, as defined in s. 16.99 (3d), of this state; a tribal government in this
state; or the federal government; or an authorized representative of the state,
political subdivision, tribal government, or federal government; for broadband
expansion in this state.
2. Income received in the form of funding from any high-cost program
established by the federal communications commission under 47 USC 254, and the
regulations issued under that section, for broadband expansion in this state.
3. No person may claim the exemptions under this paragraph for amounts
claimed as an exemption under par. (h) 1.
SECTION 2. 71.26 (1) (j) of the statutes is created to read:
71.26 (1) (j) Grants and high-cost universal service funding for broadband
expansion. 1. Income received in the form of a grant issued by this state; a political
subdivision, as defined in s. 16.99 (3d), of this state; a tribal government in this
state; or the federal government; or an authorized representative of the state,
political subdivision, tribal government, or federal government; for broadband
expansion in this state.
2. Income received in the form of funding from any high-cost program
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established by the federal communications commission under 47 USC 254, and the
regulations issued under that section, for broadband expansion in this state.
3. No person may claim the exemptions under this paragraph for amounts
claimed as an exemption under sub. (3) (ag) 2. a.
SECTION 3. 71.34 (1k) (q) of the statutes is created to read:
71.34 (1k) (q) 1. A deduction shall be allowed for the amount of income
received in the form of a grant issued by this state; a political subdivision, as
defined in s. 16.99 (3d), of this state; a tribal government in this state; or the federal
government; or an authorized representative of the state, political subdivision,
tribal government, or federal government; for broadband expansion in this state.
2. A deduction shall be allowed for the amount of income received in the form
of funding from any high-cost program established by the federal communications
commission under 47 USC 254, and the regulations issued under that section, for
broadband expansion in this state.
3. No person may claim the deductions under this paragraph for amounts
claimed as an exemption under par. (af) 1.
SECTION 4. 71.45 (1) (dp) of the statutes is created to read:
71.45 (1) (dp) 1. Income received in the form of a grant issued by this state; a
political subdivision, as defined in s. 16.99 (3d), of this state; a tribal government in
this state; or the federal government; or an authorized representative of the state,
political subdivision, tribal government, or federal government; for broadband
expansion in this state.
2. Income received in the form of funding from any high-cost program
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SECTION 4
established by the federal communications commission under 47 USC 254, and the
regulations issued under that section, for broadband expansion in this state.
3. No person may claim the exemptions under this paragraph for amounts
claimed as an exemption under par. (d) 1.
SECTION 5. Initial applicability.
(1) GRANTS AND HIGH-COST PROGRAM FUNDING FOR BROADBAND EXPANSION.
This act first applies to taxable years beginning after December 31, 2024.
(END)
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