2021 - 2022 LEGISLATURE
LRB-1103/1
JK:cdc&klm
2021 ASSEMBLY BILL 16
January 25, 2021 - Introduced by Representatives RAMTHUN, VANDERMEER, BORN,
BROOKS, CALLAHAN, DITTRICH, EDMING, HORLACHER, KURTZ, MILROY, MURSAU,
ROZAR, SPIROS, THIESFELDT, TRANEL and ZIMMERMAN, cosponsored by Senators
JACQUE, L. TAYLOR, KOOYENGA and NASS. Referred to Committee on Ways and
Means.
1 AN ACT to amend 71.07 (6m) (c) 4.; and to create 71.05 (6) (b) 34m. of the
2 statutes; relating to: broadening the applicability of an individual income tax
3 subtraction for certain reserve components of the armed forces and national
4 guard.
Analysis by the Legislative Reference Bureau
Under current law, members of a reserve component of the U.S. armed forces
who are called into active federal service or special state service may subtract from
federal adjusted gross income any amount of military pay they receive that is paid
while the member is on active duty. Eligibility to claim the subtraction is dependent
on the members being activated under specified sections of the U.S. Code.
This bill expands current law by making members of a reserve component of the
U.S. armed forces or national guard eligible to claim the subtraction if they are
activated by the secretary of a military department under an additional section of the
U.S. Code that relates to orders to active duty for preplanned missions in support of
the combatant commands.
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.
 2021 - 2022 Legislature -2- LRB-1103/1
JK:cdc&klm
ASSEMBLY BILL 16
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:
1 SECTION 1. 71.05 (6) (b) 34m. of the statutes is created to read:
2 71.05 (6) (b) 34m. Any amount of basic, special, and incentive pay income or
3 compensation, as those terms are used in 37 USC chapters 3 and 5, received from the
4 federal government by a person who is a member of a reserve component of the U.S.
5 armed forces or national guard, after being called into active federal service under
6 the provisions of 10 USC 12304b that is paid to the person for a period of time during
7 which the person is on active duty.
8 SECTION 2. 71.07 (6m) (c) 4. of the statutes is amended to read:
9 71.07 (6m) (c) 4. No credit may be claimed under this subsection by an
10 individual who claims the subtraction under s. 71.05 (6) (b) 34. and 34m.
11 SECTION 3.0Initial applicability.
12 (1) This act first applies retroactively to income and compensation received on
13 October 1, 2019.
14 (END)


Statutes affected:
Bill Text: 71.07(6m)(c)4, 71.07