AB150-SA116,37,1615 71.26 (1m) Exemption from the income tax. The interest and income from the
16following obligations are exempt from the tax imposed under s. 71.23 (1):

AB150-SA116,37,1717 (a) Those issued under s. 66.39.

AB150-SA116,37,1818 (b) Those issued under s. 66.40.

AB150-SA116,37,1919 (c) Those issued under s. 66.431.

AB150-SA116,37,2020 (d) Those issued under s. 66.4325.

AB150-SA116,37,2321 (e) Those issued under s. 234.65 to fund an economic development loan to
22finance construction, renovation or development of property that would be exempt
23under s. 70.11 (36).

AB150-SA116,38,1

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1(f) Those issued under subch. II of ch. 229.".

AB150-SA116,38,104 71.26 (3) (b) Section 103 (relating to an exemption for interest) is excluded and
5replaced, for corporations subject to taxation under s. 71.23 (1), by the rule that any
6interest income not included in federal taxable income, except interest under sub.
7(1m), is added to federal taxable income and any interest income which is by federal
8law exempt from taxation by this state is excluded, and replaced, for corporations
9subject to taxation under s. 71.23 (2), by the rule that any interest income not
10included in federal taxable income is added to federal taxable income.

AB150-SA116,39,914 71.36 (1m) A tax-option corporation may deduct from its net income all
15amounts included in the Wisconsin adjusted gross income of its shareholders, the
16capital gain deduction under s. 71.05 (6) (b) 9. and all amounts not taxable to
17nonresident shareholders under ss. 71.04 (1) and (4) to (9) and 71.362. For purposes
18of this subsection, interest on federal obligations, obligations issued under ss. 66.39,
1966.40, 66.431 and 66.4325, obligations issued under s. 234.65 to fund an economic
20development loan to finance construction, renovation or development of property
21that would be exempt under s. 70.11 (36) and obligations issued under subch. II of
22ch. 229 is not included in shareholders' income. The proportionate share of the net
23loss of a tax-option corporation shall be attributed and made available to
24shareholders on a Wisconsin basis but subject to the limitation and carry-over rules

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1as prescribed by section 1366 (d) of the internal revenue code. Net operating losses
2of the corporation to the extent attributed or made available to a shareholder may
3not be used by the corporation for further tax benefit. For purposes of computing the
4Wisconsin adjusted gross income of shareholders, tax-option items shall be reported
5by the shareholders and those tax-option items, including capital gains and losses,
6shall retain the character they would have if attributed to the corporation, including
7their character as business income. In computing the tax liability of a shareholder,
8no credit against gross tax that would be available to the tax-option corporation if
9it were a nontax-option corporation may be claimed.".

AB150-SA116,39,1514 71.45 (1t) Exemption from the income tax. The interest and income from the
15following obligations are exempt from the tax imposed under s. 71.43 (1):

AB150-SA116,39,1616 (a) Those issued under s. 66.39.

AB150-SA116,39,1717 (b) Those issued under s. 66.40.

AB150-SA116,39,1818 (c) Those issued under s. 66.431.

AB150-SA116,39,1919 (d) Those issued under s. 66.4325.

AB150-SA116,39,2220 (e) Those issued under s. 234.65 to fund an economic development loan to
21finance construction, renovation or development of property that would be exempt
22under s. 70.11 (36).

AB150-SA116,39,2323 (f) Those issued under subch. II of ch. 229.".

AB150-SA116,40,72 71.45 (2) (a) 3. For insurers subject to taxation under s. 71.43 (1), by adding to
3federal taxable income the amount of any interest income, except interest under sub.
4(1t), that is not included in federal taxable income except the amount of any interest
5income which is by federal law exempt from taxation by this state and, for insurers
6subject to taxation under s. 71.43 (2), by adding to federal taxable income the amount
7of any interest income which is not included in federal taxable income.".

AB150-SA116,40,14 12"71.78 (4) (n) The state public defender and the department of administration
13for the purpose of collecting payment ordered under s. 48.275 (2), 757.66, 973.06 (1)
14(e) or 977.076 (1).".

AB150-SA116,41,10 8"(a) If the motor vehicle is assigned to and used by an employe of the dealer for
9whom the dealer is required to withhold amounts for federal income tax purposes,
10$96 per month for each motor vehicle registration plate held by the dealer,".

AB150-SA116,41,2317 77.56 (2) The loan by an automobile dealer of a motor vehicle to any school or
18school district for a driver training educational program conducted by the school or
19school district is exempt from the use tax. If the dealer makes any other use of the
20vehicle except retention, demonstration or display while holding it for sale in the
21regular course of business, the use is taxable to the dealer under s. 77.53 as of the
22time the property is first so used, and the sales price of the vehicle to the dealer is
23the measure of the tax.".