Senate Bill 859 seeks to update Wisconsin's state income and franchise tax laws to align with the federal Internal Revenue Code (IRC) as amended through December 31, 2025. The bill introduces new provisions that specify which federal public laws will be excluded from the state definition of the IRC for taxable years beginning after December 31, 2025. It also modifies existing language to clarify the treatment of itemized deductions and other tax-related provisions, ensuring consistency with federal regulations. For example, it replaces references to the "internal revenue code" with "Internal Revenue Code" and specifies that certain deductions related to casualty losses and moving expenses will be treated in accordance with the IRC.

Additionally, the bill establishes a new section aimed at preventing the double inclusion or omission of income items by accounting for differences between state and federal tax laws. It amends existing sections to clarify how net income for qualifying entities will be determined based on their federal taxable income for specific taxable years. Furthermore, the bill changes the reporting requirements for wage payments by updating the threshold to align with the IRC. Overall, these amendments and new provisions are designed to streamline tax compliance for individuals and corporations while ensuring clarity in tax reporting and adherence to federal standards.

Statutes affected:
Bill Text: 71.01(6)(n)1, 71.01, 71.07(5)(a)(intro.), 71.07, 71.07(5)(a)2, 71.07(5)(a)3, 71.07(5)(a)4, 71.22(4)(n)1, 71.22, 71.22(4m)(n)1, 71.26(2)(b)15.a, 71.26, 71.26(3)(e)1, 71.34(1g)(n)1, 71.34