AB732,3,66 b. A member of a limited liability company.

AB732,3,77 c. A member of a tax-option corporation.

AB732,3,88 2. "Frame" includes:

AB732,3,99 a. Every part of a motorcycle, except the tires.

AB732,3,1110 b. In the case of a truck, the control system and the fuel and drive train,
11excluding any comfort features located in the cab or the tires.

AB732,3,1412 c. In the case of a generator, the control modules, fuel train, fuel scrubbing
13process, fuel mixers, generator, heat exchangers, exhaust train, and similar
14components.

AB732,3,2015 3. "Vehicle" means any vehicle or frame, including parts, accessories, and
16component technologies, in which or on which an engine is mounted for use in mobile
17or stationary applications. "Vehicle" includes any truck, tractor, motorcycle,
18snowmobile, all-terrain vehicle, boat, personal watercraft, generator, construction
19equipment, mechanical drive for a stationary engine, lawn and garden maintenance
20equipment, automobile, van, sports utility vehicle, motor home, bus, or aircraft.

AB732,3,2321 (b) Filing claims. Subject to the limitations provided in this subsection, for
22taxable years beginning after December 31, 2011, a claimant may claim as a credit
23against the taxes imposed under s. 71.02 any of the following:

AB732,4,1224 1. An amount equal to 15 percent of qualified research expenses, as defined in
25section 41 of the Internal Revenue Code, that the claimant's partnership, limited

---

1liability company, or tax-option corporation paid during the taxable year, except that
2"qualified research expenses" includes only expenses paid by the entity for research
3directly or indirectly related to designing internal combustion engines for vehicles,
4including expenses related to designing vehicles that are powered by such engines
5and improving production processes for such engines and vehicles, incurred for
6research conducted in this state for the taxable year, except that the entity may elect
7the alternative computation under section 41 (c) (4) of the Internal Revenue Code
8and that election applies until the department permits its revocation, except as
9provided in s. 71.28 (4) (af), and except that "qualified research expenses" does not
10include compensation used in computing the credit under s. 71.28 (1dj) and (1dx).
11Section 41 (h) of the Internal Revenue Code does not apply to the credit under this
12subdivision.

AB732,4,2313 2. An amount equal to 15 percent of the amount paid or incurred by the
14claimant's partnership, limited liability company, or tax-option corporation during
15the taxable year to construct and equip new facilities or expand existing facilities
16used in this state for qualified research, as defined in section 41 of the Internal
17Revenue Code, except that "qualified research expenses" includes only expenses paid
18or incurred by the claimant for research directly or indirectly related to designing
19internal combustion engines for vehicles, including expenses related to designing
20vehicles that are powered by such engines and improving production processes for
21such engines and vehicles. Eligible amounts include only amounts paid or incurred
22for tangible, depreciable property but do not include amounts paid or incurred for
23replacement property.

AB732,5,724 (c) Limitations. Partnerships, limited liability companies, and tax-option
25corporations may not claim the credit under this subsection, but the eligibility for,

---

1and the amount of, the credit are based on their payment of amounts under par. (b).
2A partnership, limited liability company, or tax-option corporation shall compute
3the amount of credit that each of its partners, members, or shareholders may claim
4and shall provide that information to each of them. Partners, members of limited
5liability companies, and shareholders of tax-option corporations may claim the
6credit in proportion to their allocation of the deductions of the qualified research
7expenses used to determine the credit.

AB732,5,98 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
9s. 71.28 (4), applies to the credit under this subsection.

AB732,5,1111 71.10 (4) (ds) Research and research facilities credit under s. 71.07 (5a).

AB732,5,1714 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
15(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s),
16(3t), (3w), (5a), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), and (8r) and passed
17through to partners shall be added to the partnership's income.

AB732,6,220 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
21(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r),
22(3rm), (3rn), (3t), (3w), (4) (ad) 2m., (5) (ad) 2m., (5e), (5f), (5g), (5h), (5i), (5j), (5k),
23(5n), (5r), (5rm), (8r), and (9s) and not passed through by a partnership, limited
24liability company, or tax-option corporation that has added that amount to the

---

1partnership's, limited liability company's, or tax-option corporation's income under
2s. 71.21 (4) or 71.34 (1k) (g).

AB732,6,115 71.28 (4) (ab) 3. "Vehicle" means any vehicle or frame, including parts,
6accessories, and component technologies, in which or on which an engine is mounted
7for use in mobile or stationary applications. "Vehicle" includes any truck, tractor,
8motorcycle, snowmobile, all-terrain vehicle, boat, personal watercraft, generator,
9construction equipment, mechanical drive for a stationary engine, lawn and garden
10maintenance equipment, automobile, van, sports utility vehicle, motor home, bus, or
11aircraft.

AB732,7,213 71.28 (4) (ad) 1. Except as provided in subds. 2., 2m., and 3., any corporation
14may credit against taxes otherwise due under this chapter an amount equal to 5
15percent of the amount obtained by subtracting from the corporation's qualified
16research expenses, as defined in section 41 of the Internal Revenue Code, except that
17"qualified research expenses" includes only expenses incurred by the claimant,
18incurred for research conducted in this state for the taxable year, except that a
19taxpayer may elect the alternative computation under section 41 (c) (4) of the
20Internal Revenue Code and that election applies until the department permits its
21revocation, except as provided in par. (af), and except that "qualified research
22expenses" does not include compensation used in computing the credit under subs.
23(1dj) and (1dx), the corporation's base amount, as defined in section 41 (c) of the
24Internal Revenue Code, except that gross receipts used in calculating the base
25amount means gross receipts from sales attributable to Wisconsin under s. 71.25 (9)

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1(b) 1. and 2., (df) 1. and 2., (dh) 1., 2., and 3., (dj), and (dk). Section 41 (h) of the
2Internal Revenue Code does not apply to the credit under this paragraph.

AB732,7,214 71.28 (4) (ad) 2. For taxable years beginning after June 30, 2007, and before
5January 1, 2012, any corporation may credit against taxes otherwise due under this
6chapter an amount equal to 10 percent of the amount obtained by subtracting from
7the corporation's qualified research expenses, as defined in section 41 of the Internal
8Revenue Code, except that "qualified research expenses" includes only expenses
9incurred by the claimant for research related to designing internal combustion
10engines for vehicles, including expenses related to designing vehicles that are
11powered by such engines and improving production processes for such engines and
12vehicles, incurred for research conducted in this state for the taxable year, except
13that a taxpayer may elect the alternative computation under section 41 (c) (4) of the
14Internal Revenue Code and that election applies until the department permits its
15revocation, except as provided in par. (af), and except that "qualified research
16expenses" does not include compensation used in computing the credit under subs.
17(1dj) and (1dx), the corporation's base amount, as defined in section 41 (c) of the
18Internal Revenue Code, except that gross receipts used in calculating the base
19amount means gross receipts from sales attributable to Wisconsin under s. 71.25 (9)
20(b) 1. and 2., (df) 1. and 2., (dh) 1., 2., and 3., (dj), and (dk). Section 41 (h) of the
21Internal Revenue Code does not apply to the credit under this paragraph.

AB732,8,1223 71.28 (4) (ad) 2m. For taxable years beginning after December 31, 2011, any
24corporation may claim as a credit against taxes otherwise due under s. 71.23 an
25amount equal to 15 percent of the corporation's qualified research expenses, as

---

1defined in section 41 of the Internal Revenue Code, that the corporation paid during
2the taxable year, except that "qualified research expenses" includes only expenses
3paid by the claimant for research directly or indirectly related to designing internal
4combustion engines for vehicles, including expenses related to designing vehicles
5that are powered by such engines and improving production processes for such
6engines and vehicles, incurred for research conducted in this state for the taxable
7year, except that a taxpayer may elect the alternative computation under section 41
8(c) (4) of the Internal Revenue Code and that election applies until the department
9permits its revocation, except as provided in par. (af), and except that "qualified
10research expenses" does not include compensation used in computing the credit
11under subs. (1dj) and (1dx). Section 41 (h) of the Internal Revenue Code does not
12apply to the credit under this paragraph.

AB732,8,1814 71.28 (4) (af) Computation. If in any taxable year a corporation claims a credit
15under par. (ad) 1., 2., 2m., or 3., or any combination of those credits, the corporation
16may use a different computation method to calculate each of the credits and may
17choose to change the computation method once for each credit without the
18department's approval.

AB732,9,221 71.28 (4) (i) Nonclaimants Limitations. 1. The credits under this subsection
22par. (ad) 1., 2., and 3. may not be claimed by a partnership, except a publicly traded
23partnership treated as a corporation under s. 71.22 (1k), limited liability company,
24except a limited liability company treated as a corporation under s. 71.22 (1k), or
25tax-option corporation or by partners, including partners of a publicly traded

---

1partnership, members of a limited liability company or shareholders of a tax-option
2corporation.

AB732,9,124 71.28 (4) (i) 2. Partnerships, limited liability companies, and tax-option
5corporations may not claim the credit under par. (ad) 2m., but the eligibility for, and
6the amount of, the credit are based on their payment of amounts under par. (ad) 2m.
7A partnership, limited liability company, or tax-option corporation shall compute
8the amount of credit that each of its partners, members, or shareholders may claim
9and shall provide that information to each of them. Partners, members of limited
10liability companies, and shareholders of tax-option corporations may claim the
11credit in proportion to their allocation of the deductions of the qualified research
12expenses used to determine the credit.

AB732,9,1514 71.28 (4m) (c) Limitations. Subsection (4) (b) to (d) and (i) 1., as it applies to
15the credit under sub. (4), applies to the credit under this subsection.

AB732,9,2418 71.28 (5) (ab) 3. "Vehicle" means any vehicle or frame, including parts,
19accessories, and component technologies, in which or on which an engine is mounted
20for use in mobile or stationary applications. "Vehicle" includes any truck, tractor,
21motorcycle, snowmobile, all-terrain vehicle, boat, personal watercraft, generator,
22construction equipment, mechanical drive for a stationary engine, lawn and garden
23maintenance equipment, automobile, van, sports utility vehicle, motor home, bus, or
24aircraft.

AB732,10,8

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171.28 (5) (ad) 1. Except as provided in subds. 2., 2m., and 3., for taxable year
21986 and subsequent years, any corporation may credit against taxes otherwise due
3under this chapter an amount equal to 5 percent of the amount paid or incurred by
4that corporation during the taxable year to construct and equip new facilities or
5expand existing facilities used in this state for qualified research, as defined in
6section 41 of the Internal Revenue Code. Eligible amounts include only amounts
7paid or incurred for tangible, depreciable property but do not include amounts paid
8or incurred for replacement property.

AB732,10,2110 71.28 (5) (ad) 2. For taxable years beginning after June 30, 2007, and before
11January 1, 2012, any corporation may credit against taxes otherwise due under this
12chapter an amount equal to 10 percent of the amount paid or incurred by that
13corporation during the taxable year to construct and equip new facilities or expand
14existing facilities used in this state for qualified research, as defined in section 41 of
15the Internal Revenue Code, except that "qualified research expenses" includes only
16expenses paid or incurred by the claimant for research related to designing internal
17combustion engines for vehicles, including expenses related to designing vehicles
18that are powered by such engines and improving production processes for such
19engines and vehicles. Eligible amounts include only amounts paid or incurred for
20tangible, depreciable property but do not include amounts paid or incurred for
21replacement property.

AB732,11,923 71.28 (5) (ad) 2m. For taxable years beginning after December 31, 2011, any
24corporation may claim as a credit against taxes otherwise due under s. 71.23 an
25amount equal to 15 percent of the amount paid or incurred by that corporation during

---

1the taxable year to construct and equip new facilities or expand existing facilities
2used in this state for qualified research, as defined in section 41 of the Internal
3Revenue Code, except that "qualified research expenses" includes only expenses paid
4or incurred by the claimant for research directly or indirectly related to designing
5internal combustion engines for vehicles, including expenses related to designing
6vehicles that are powered by such engines and improving production processes for
7such engines and vehicles. Eligible amounts include only amounts paid or incurred
8for tangible, depreciable property but do not include amounts paid or incurred for
9replacement property.

AB732,11,1611 71.28 (5) (c) Limitations. 1. The credits under par. (ad) 1., 2., and 3. may not
12be claimed by a partnership, except a publicly traded partnership treated as a
13corporation under s. 71.22 (1k), limited liability company, except a limited liability
14company treated as a corporation under s. 71.22 (1k), or tax-option corporation or
15by partners, including partners of a publicly traded partnership, members of a
16limited liability company, or shareholders of a tax-option corporation.

AB732,11,2517 2. Partnerships, limited liability companies, and tax-option corporations may
18not claim the credit under par. (ad) 2m., but the eligibility for, and the amount of, the
19credit are based on their payment of amounts under par. (ad) 2m. A partnership,
20limited liability company, or tax-option corporation shall compute the amount of
21credit that each of its partners, members, or shareholders may claim and shall
22provide that information to each of them. Partners, members of limited liability
23companies, and shareholders of tax-option corporations may claim the credit in
24proportion to their allocation of the deductions of the qualified research expenses
25used to determine the credit.

AB732,12,73 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
4corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
5(3), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (4) (ad) 2m., (5) (ad) 2m.,
6(5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), and (8r) and passed through to
7shareholders.

AB732,12,1811 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
12computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn),
13(3w), (4) (ad) 2m., (5) (ad) 2m., (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (8r),
14and (9s) and not passed through by a partnership, limited liability company, or
15tax-option corporation that has added that amount to the partnership's, limited
16liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k)
17(g) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4) (ad) 2m., (4m),
18and (5) (ad) 2m.

AB732,13,221 71.47 (4) (ab) 3. "Vehicle" means any vehicle or frame, including parts,
22accessories, and component technologies, in which or on which an engine is mounted
23for use in mobile or stationary applications. "Vehicle" includes any truck, tractor,
24motorcycle, snowmobile, all-terrain vehicle, boat, personal watercraft, generator,
25construction equipment, mechanical drive for a stationary engine, lawn and garden

---

1maintenance equipment, automobile, van, sports utility vehicle, motor home, bus, or
2aircraft.

AB732,13,184 71.47 (4) (ad) 1. Except as provided in subds. 2., 2m., and 3., any corporation
5may credit against taxes otherwise due under this chapter an amount equal to 5
6percent of the amount obtained by subtracting from the corporation's qualified
7research expenses, as defined in section 41 of the Internal Revenue Code, except that
8"qualified research expenses" includes only expenses incurred by the claimant,
9incurred for research conducted in this state for the taxable year, except that a
10taxpayer may elect the alternative computation under section 41 (c) (4) of the
11Internal Revenue Code and that election applies until the department permits its
12revocation, except as provided in par. (af), and except that "qualified research
13expenses" does not include compensation used in computing the credit under subs.
14(1dj) and (1dx), the corporation's base amount, as defined in section 41 (c) of the
15Internal Revenue Code, except that gross receipts used in calculating the base
16amount means gross receipts from sales attributable to Wisconsin under s. 71.25 (9)
17(b) 1. and 2., (df) 1. and 2., (dh) 1., 2., and 3., (dj), and (dk). Section 41 (h) of the
18Internal Revenue Code does not apply to the credit under this paragraph.

AB732,14,1220 71.47 (4) (ad) 2. For taxable years beginning after June 30, 2007, and before
21January 1, 2012, any corporation may credit against taxes otherwise due under this
22chapter an amount equal to 10 percent of the amount obtained by subtracting from
23the corporation's qualified research expenses, as defined in section 41 of the Internal
24Revenue Code, except that "qualified research expenses" includes only expenses
25incurred by the claimant for research related to designing internal combustion

---

1engines for vehicles, including expenses related to designing vehicles that are
2powered by such engines and improving production processes for such engines and
3vehicles, incurred for research conducted in this state for the taxable year, except
4that a taxpayer may elect the alternative computation under section 41 (c) (4) of the
5Internal Revenue Code and that election applies until the department permits its
6revocation, except as provided in par. (af), and except that "qualified research
7expenses" does not include compensation used in computing the credit under subs.
8(1dj) and (1dx), the corporation's base amount, as defined in section 41 (c) of the
9Internal Revenue Code, except that gross receipts used in calculating the base
10amount means gross receipts from sales attributable to Wisconsin under s. 71.25 (9)
11(b) 1. and 2., (df) 1. and 2., (dh) 1., 2., and 3., (dj), and (dk). Section 41 (h) of the
12Internal Revenue Code does not apply to the credit under this paragraph.

AB732,15,314 71.47 (4) (ad) 2m. For taxable years beginning after December 31, 2011, any
15corporation may claim as a credit against taxes otherwise due under s. 71.43 an
16amount equal to 15 percent of the corporation's qualified research expenses, as
17defined in section 41 of the Internal Revenue Code, that the corporation paid during
18the taxable year, except that "qualified research expenses" includes only expenses
19paid by the claimant for research directly or indirectly related to designing internal
20combustion engines for vehicles, including expenses related to designing vehicles
21that are powered by such engines and improving production processes for such
22engines and vehicles, incurred for research conducted in this state for the taxable
23year, except that a taxpayer may elect the alternative computation under section 41
24(c) (4) of the Internal Revenue Code and that election applies until the department
25permits its revocation, except as provided in par. (af), and except that "qualified

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1research expenses" does not include compensation used in computing the credit
2under subs. (1dj) and (1dx). Section 41 (h) of the Internal Revenue Code does not
3apply to the credit under this paragraph.

AB732,15,95 71.47 (4) (af) Computation. If in any taxable year a corporation claims a credit
6under par. (ad) 1., 2., 2m., or 3., or any combination of those credits, the corporation
7may use a different computation method to calculate each of the credits and may
8choose to change the computation method once for each credit without the
9department's approval.

AB732,15,1812 71.47 (4) (i) Nonclaimants Limitations. 1. The credits under this subsection
13par. (ad) 1., 2., and 3. may not be claimed by a partnership, except a publicly traded
14partnership treated as a corporation under s. 71.22 (1k), limited liability company,
15except a limited liability company treated as a corporation under s. 71.22 (1k), or
16tax-option corporation or by partners, including partners of a publicly traded
17partnership, members of a limited liability company or shareholders of a tax-option
18corporation.

AB732,16,320 71.47 (4) (i) 2. Partnerships, limited liability companies, and tax-option
21corporations may not claim the credit under par. (ad) 2m., but the eligibility for, and
22the amount of, the credit are based on their payment of amounts under par. (ad) 2m.
23A partnership, limited liability company, or tax-option corporation shall compute
24the amount of credit that each of its partners, members, or shareholders may claim
25and shall provide that information to each of them. Partners, members of limited

---

1liability companies, and shareholders of tax-option corporations may claim the
2credit in proportion to their allocation of the deductions of the qualified research
3expenses used to determine the credit.

AB732,16,65 71.47 (4m) (c) Limitations. Section 71.28 (4) (b) to (d) and (i) 1., as it applies
6to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB732,16,159 71.47 (5) (ab) 3. "Vehicle" means any vehicle or frame, including parts,
10accessories, and component technologies, in which or on which an engine is mounted
11for use in mobile or stationary applications. "Vehicle" includes any truck, tractor,
12motorcycle, snowmobile, all-terrain vehicle, boat, personal watercraft, generator,
13construction equipment, mechanical drive for a stationary engine, lawn and garden
14maintenance equipment, automobile, van, sports utility vehicle, motor home, bus, or
15aircraft.

AB732,16,2417 71.47 (5) (ad) 1. Except as provided in subds. 2., 2m., and 3., for taxable year
181986 and subsequent years, any corporation may credit against taxes otherwise due
19under this chapter an amount equal to 5 percent of the amount paid or incurred by
20that corporation during the taxable year to construct and equip new facilities or
21expand existing facilities used in this state for qualified research, as defined in
22section 41 of the Internal Revenue Code. Eligible amounts include only amounts
23paid or incurred for tangible, depreciable property but do not include amounts paid
24or incurred for replacement property.

AB732,17,12

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171.47 (5) (ad) 2. For taxable years beginning after June 30, 2007, and before
2January 1, 2012, any corporation may credit against taxes otherwise due under this
3chapter an amount equal to 10 percent of the amount paid or incurred by that
4corporation during the taxable year to construct and equip new facilities or expand
5existing facilities used in this state for qualified research, as defined in section 41 of
6the Internal Revenue Code, except that "qualified research expenses" includes only
7expenses paid or incurred by the claimant for research related to designing internal
8combustion engines for vehicles, including expenses related to designing vehicles
9that are powered by such engines and improving production processes for such
10engines and vehicles. Eligible amounts include only amounts paid or incurred for
11tangible, depreciable property but do not include amounts paid or incurred for
12replacement property.

AB732,17,2514 71.47 (5) (ad) 2m. For taxable years beginning after December 31, 2011, any
15corporation may claim as a credit against taxes otherwise due under s. 71.43 an
16amount equal to 15 percent of the amount paid or incurred by that corporation during
17the taxable year to construct and equip new facilities or expand existing facilities
18used in this state for qualified research, as defined in section 41 of the Internal
19Revenue Code, except that "qualified research expenses" includes only expenses paid
20or incurred by the claimant for research directly or indirectly related to designing
21internal combustion engines for vehicles, including expenses related to designing
22vehicles that are powered by such engines and improving production processes for
23such engines and vehicles. Eligible amounts include only amounts paid or incurred
24for tangible, depreciable property but do not include amounts paid or incurred for
25replacement property.

AB732,18,72 71.47 (5) (c) Limitations. 1. The credits under par. (ad) 1., 2., and 3. may not
3be claimed by a partnership, except a publicly traded partnership treated as a
4corporation under s. 71.22 (1k), limited liability company, except a limited liability
5company treated as a corporation under s. 71.22 (1k), or tax-option corporation or
6by partners, including partners of a publicly traded partnership, members of a
7limited liability company, or shareholders of a tax-option corporation.

AB732,18,168 2. Partnerships, limited liability companies, and tax-option corporations may
9not claim the credit under par. (ad) 2m., but the eligibility for, and the amount of, the
10credit are based on their payment of amounts under par. (ad) 2m. A partnership,
11limited liability company, or tax-option corporation shall compute the amount of
12credit that each of its partners, members, or shareholders may claim and shall
13provide that information to each of them. Partners, members of limited liability
14companies, and shareholders of tax-option corporations may claim the credit in
15proportion to their allocation of the deductions of the qualified research expenses
16used to determine the credit.

AB732,19,919 77.92 (4) "Net business income," with respect to a partnership, means taxable
20income as calculated under section 703 of the Internal Revenue Code; plus the items
21of income and gain under section 702 of the Internal Revenue Code, including taxable
22state and municipal bond interest and excluding nontaxable interest income or
23dividend income from federal government obligations; minus the items of loss and
24deduction under section 702 of the Internal Revenue Code, except items that are not
25deductible under s. 71.21; plus guaranteed payments to partners under section 707

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1(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
2(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
3(3rm), (3rn), (3s), (3t), (3w), (5a), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm),
4and (8r); and plus or minus, as appropriate, transitional adjustments, depreciation
5differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but
6excluding income, gain, loss, and deductions from farming. "Net business income,"
7with respect to a natural person, estate, or trust, means profit from a trade or
8business for federal income tax purposes and includes net income derived as an
9employee as defined in section 3121 (d) (3) of the Internal Revenue Code.