United States

Wisconsin: Conformity Legislation Signed Into Law

Apr 09, 2018
From KPMG TaxWatch

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Wisconsin Assembly Bill 259, which was signed into law on April 3, 2018, updates Wisconsin’s conformity to the Internal Revenue Code. Specifically, for taxable years beginning after December 31, 2016 and before January 1, 2018, for corporations, Internal Revenue Code means the Code as amended to December 31, 2016 with certain exceptions. One exception is that the Code includes certain changes made to federal law under P.L. 115-97 (the Tax Cuts and Jobs Act). Notably, Wisconsin will apply Section 11024 (increased contributions to able accounts); Section 11025. (rollovers to able programs from 529 programs); and Section 13543 (modification of treatment of s corporation conversions to c corporations).

For tax years beginning after December 31, 2017, for corporations, Internal Revenue Code means the Code as amended to December 31, 2017, again with various exceptions. There are numerous provisions of P.L. 115-97 that do not apply for Wisconsin tax purposes, including, but not limited to: Section 11011 (the deduction for qualified business income of pass-through entities under section 199A); Section 13201(a) (100 percent bonus depreciation); Section 13304(a), (b) and (d) (addressing deductions by employers of certain fringe benefits- note that Wisconsin does adopt Section 13304(c),which limits deductions for certain transportation fringe benefits); Section 13301 (limits on deducibility of business interest under section 163(j)); and Sections 14103, 14201 and 14202 (collectively, these sections address mandatory repatriation under section 965, new section 951A requiring inclusion of GILTI, and the deductions for GILTI and FDII under section 250). Please contact Brad Wilhelmson at 312.665.2076 with questions on Assembly Bill 259.

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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.