Assembly Bill 3
Modifications to the tax treatment of tax-option corporations that elect to pay tax at the entity level. (FE)
Became law
The governor signed it on Feb 18, 2021. It's .
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Introduced, passed
Jan 15, 2021
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Committee, passed
Approved
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Assembly vote, passed
Passed 94 to 0
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Senate vote, passed
Passed 32 to 0
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Governor, passed
Signed
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Law, here now
2021 Wisconsin Act 2
Latest entry in the official record, Feb 18, 2021: “Published 2-19-2021”
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Terms on this page
Wisconsin Act
The number a bill gets when it becomes law, like 2025 Wisconsin Act 12.
Official term: Act. More in the glossary
Legislative Reference Bureau
The Legislature's nonpartisan office that drafts bills and writes the summary at the top of each one.
Official term: LRB analysis. More in the glossary
Author
A lawmaker who formally puts a bill forward. The text itself is drafted by the Legislative Reference Bureau.
Official term: Author, coauthor. More in the glossary
Signed on in support
Lawmakers who back a bill without being one of its authors, often from the other chamber.
Official term: Cosponsor. More in the glossary
Cost estimate
A state agency's estimate of what a bill would cost or save.
Official term: Fiscal estimate. More in the glossary
Roll call
A vote where each lawmaker's yes or no is recorded by name.
Official term: Roll call vote. More in the glossary
What it does
Summary by the , the Legislature's nonpartisan drafting office. It's their wording, not ours.
This bill makes the following changes to the tax treatment of tax-option corporations that elect to pay income or franchise tax at the entity level:
1. The bill allows these corporations to exclude from tax 30 percent of the gains realized from the sale of assets held more than one year and the sale of all assets acquired from a decedent and 60 percent of the gains realized from the sale of farm assets held more than one year and the sale of all farm assets acquired from a decedent.
Read the full summary Show less
2. The bill limits the excess capital loss deduction for these corporations to $500. As such, under the bill, an electing tax-option corporation with a net loss after netting capital gains and losses may use up to $500 of the net loss to offset income.
A loss in excess of $500 may be carried forward to the next taxable year in which the corporation makes the election to pay tax at the entity level.
3. The bill provides that an exception from the general requirement to pay interest on the underpayment of estimated taxes for corporations whose Wisconsin net income is less than $250,000 does not apply to these corporations.
4. The bill provides that these corporations, when making quarterly estimated tax payments, compute the amount due using the standards applicable to taxpayers with net income of less than $250,000, regardless of the corporation's actual net income.
The bill applies to taxable years beginning after December 31, 2019.
Who's behind it
2 representatives are its . All 2 are Republicans.
3 more lawmakers .
See all 5 names Hide the names
Authors (2)
- John Macco · Republican, Assembly
- Bob Wittke · Republican, Assembly
Signed on in support (3)
- Chris Kapenga · Republican, Senate
- Dale Kooyenga · Republican, Senate
- Howard Marklein · Republican, Senate
What it would cost
State agencies filed a . Each opens as a PDF from the Legislature.
How lawmakers voted
There were 4 votes on this bill.
Assembly Committee on Ways and Means vote to recommend it
Passed, 12 to 0 · Feb 8, 2021
No member-by-member record exists for this vote. Committee votes and some older sessions record totals only.
Official motion: “Report passage recommended by Committee on Ways and Means, Ayes 12, Noes 0”. Official record · This vote on its own page
Joint Committee on Finance vote to recommend it
Passed, 15 to 0 · Feb 11, 2021
No member-by-member record exists for this vote. Committee votes and some older sessions record totals only.
Official motion: “Report passage, with emergency statement attached, pursuant to s.16.47 (2), Wisconsin Statutes, recommended by Joint Committee on Finance, Ayes 15, Noes 0”. Official record · This vote on its own page
Assembly vote to pass it
Passed, 94 to 0 · Feb 16, 2021 · 4 didn't vote
See how each of the 98 representatives voted Hide the names
D: Democrat, R: Republican
Yes (94)
- Adam Neylon (R, 15)
- Alex Dallman (R, 39)
- Amy Loudenbeck (R, 31)
- Barbara Dittrich (R, 99)
- Beth Meyers (D, 74)
- Bob Wittke (R, 63)
- Calvin Callahan (R, 35)
- Christine Sinicki (D, 20)
- Chuck Wichgers (R, 84)
- Cindi Duchow (R, 97)
- Clint Moses (R, 92)
- Cody Horlacher (R, 33)
- Dan Knodl (R, 24)
- Daniel Riemer (D, 7)
- Dave Armstrong (R, 67)
- Dave Considine (D, 81)
- Dave Murphy (R, 56)
- David Bowen (D, 10)
- David Steffen (R, 4)
- Deb Andraca (D, 23)
- Dianne Hesselbein (D, 27)
- Don Vruwink (D, 43)
- Donna Rozar (R, 69)
- Dora Drake (D, 4)
- Evan Goyke (D, 18)
- Francesca Hong (D, 76)
- Gae Magnafici (R, 28)
- Gary Tauchen (R, 6)
- Gordon Hintz (D, 54)
- Greta Neubauer (D, 66)
- James Edming (R, 87)
- Janel Brandtjen (R, 22)
- Jeff Mursau (R, 36)
- Jeremy Thiesfeldt (R, 52)
- Jesse James (R, 23)
- Jessie Rodriguez (R, 21)
- Jill Billings (D, 95)
- Jim Steineke (R, 5)
- Jimmy Anderson (D, 47)
- Jodi Emerson (D, 91)
- Joe Sanfelippo (R, 15)
- Joel Kitchens (R, 1)
- John Jagler (R, 13)
- John Macco (R, 88)
- John Spiros (R, 86)
- Jon Plumer (R, 42)
- Jonathan Brostoff (D, 19)
- Ken Skowronski (R, 82)
- Kevin Petersen (R, 57)
- Kristina Shelton (D, 90)
- LaKeshia Myers (D, 12)
- Lee Snodgrass (D, 52)
- Lisa Subeck (D, 79)
- Loren Oldenburg (R, 96)
- Marisabel Cabrera (D, 9)
- Mark Born (R, 37)
- Mark Spreitzer (D, 15)
- Michael Schraa (R, 53)
- Mike Kuglitsch (R, 84)
- Nancy VanderMeer (R, 70)
- Pat Snyder (R, 85)
- Paul Tittl (R, 25)
- Rachael Cabral-Guevara (R, 19)
- Rick Gundrum (R, 58)
- Rob Brooks (R, 59)
- Rob Summerfield (R, 68)
- Rob Swearingen (R, 34)
- Robin Vos (R, 33)
- Robyn Vining (D, 13)
- Ron Tusler (R, 3)
- Samantha Kerkman (R, 61)
- Samba Baldeh (D, 48)
- Sara Rodriguez (D, 13)
- Scott Allen (R, 82)
- Scott Krug (R, 72)
- Shae Sortwell (R, 2)
- Shannon Zimmerman (R, 30)
- Shelia Stubbs (D, 78)
- Sondy Pope (D, 80)
- Steve Doyle (D, 94)
- Sue Conley (D, 44)
- Supreme Moore Omokunde (D, 17)
- Sylvia Ortiz-Velez (D, 8)
- Terry Katsma (R, 26)
- Timothy Ramthun (R, 59)
- Tip McGuire (D, 64)
- Tod Ohnstad (D, 65)
- Todd Novak (R, 51)
- Tony Kurtz (R, 41)
- Travis Tranel (R, 49)
- Treig Pronschinske (R, 29)
- Tyler August (R, 31)
- Tyler Vorpagel (R, 27)
- Warren Petryk (R, 93)
Didn't vote (4)
- Gary Hebl (D, 46)
- Kalan Haywood (D, 16)
- Katrina Shankland (D, 71)
- Nick Milroy (D, 73)
Official motion: “PASSAGE”. Official record · This vote on its own page
Senate vote to pass it
Passed, 32 to 0 · Feb 16, 2021
See how each of the 32 senators voted Hide the names
D: Democrat, R: Republican
Yes (32)
- Alberta Darling (R, 8)
- André Jacque (R, 1)
- Bob Wirch (D, 22)
- Brad Pfaff (D, 32)
- Chris Kapenga (R, 33)
- Chris Larson (D, 7)
- Dale Kooyenga (R, 5)
- Dan Feyen (R, 20)
- Devin LeMahieu (R, 9)
- Duey Stroebel (R, 20)
- Eric Wimberger (R, 2)
- Howard Marklein (R, 17)
- Janet Bewley (D, 25)
- Janis Ringhand (D, 15)
- Jeff Smith (D, 31)
- Jerry Petrowski (R, 29)
- Joan Ballweg (R, 14)
- Jon Erpenbach (D, 27)
- Julian Bradley (R, 28)
- Kathleen Bernier (R, 23)
- Kelda Roys (D, 26)
- LaTonya Johnson (D, 6)
- Lena Taylor (D, 4)
- Mary Felzkowski (R, 12)
- Melissa Agard (D, 16)
- Patrick Testin (R, 24)
- Rob Cowles (R, 2)
- Rob Stafsholt (R, 10)
- Roger Roth (R, 19)
- Steve Nass (R, 11)
- Tim Carpenter (D, 3)
- Van Wanggaard (R, 21)
Official motion: “CONCURRENCE”. Official record · This vote on its own page
What happened
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Feb 18, 2021
The new law was published.
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Feb 18, 2021
The governor signed it. It became 2021 Wisconsin Act 2.
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Feb 18, 2021
Sent to the governor.
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Feb 16, 2021
The Senate passed it too, 32 to 0.
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Feb 16, 2021
Sent to the Senate Committee on Senate Organization.
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Feb 16, 2021
The Senate received it.
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Feb 16, 2021
The Assembly passed it, 94 to 0.
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Feb 11, 2021
Sent to the Assembly Committee on Rules.
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Feb 11, 2021
“Report passage, with emergency statement attached, pursuant to s.16.47 (2), Wisconsin Statutes, recommended by Joint Committee on Finance, Ayes 15, Noes 0” (the official wording)
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Feb 8, 2021
Sent to the Joint Committee on Finance.
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Feb 8, 2021
The committee voted to recommend passing it, 12 to 0.
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Jan 21, 2021
The committee held a public hearing.
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Jan 19, 2021
A state agency sent in its estimate of the cost.
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Jan 15, 2021
Sent to the Assembly Committee on Ways and Means.
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Jan 15, 2021
Introduced in the Assembly.
See the official record, word for word Hide the official record
- Jan 15, 2021 · Assembly
Introduced by Representatives Wittke and Macco; cosponsored by Senators Marklein, Kooyenga and Kapenga
- Jan 15, 2021 · Assembly
Read first time and referred to Committee on Ways and Means
- Jan 19, 2021 · Assembly
Fiscal estimate received
- Jan 21, 2021 · Assembly
Public hearing held
- Jan 21, 2021 · Assembly
Executive action taken
- Feb 8, 2021 · Assembly
Report passage recommended by Committee on Ways and Means, Ayes 12, Noes 0
- Feb 8, 2021 · Assembly
Referred to joint committee on Finance
- Feb 10, 2021 · Assembly
Executive action taken
- Feb 11, 2021 · Assembly
Report passage, with emergency statement attached, pursuant to s.16.47 (2), Wisconsin Statutes, recommended by Joint Committee on Finance, Ayes 15, Noes 0
- Feb 11, 2021 · Assembly
Referred to committee on Rules
- Feb 11, 2021 · Assembly
Placed on calendar 2-16-2021 by Committee on Rules
- Feb 16, 2021 · Assembly
Read a second time
- Feb 16, 2021 · Assembly
Ordered to a third reading
- Feb 16, 2021 · Assembly
Rules suspended
- Feb 16, 2021 · Assembly
Read a third time and passed, Ayes 94, Noes 0
- Feb 16, 2021 · Assembly
Ordered immediately messaged
- Feb 16, 2021 · Senate
Received from Assembly
- Feb 16, 2021 · Senate
Read first time and referred to committee on Senate Organization
- Feb 16, 2021 · Senate
Rules suspended to withdraw from committee on Senate Organization and take up
- Feb 16, 2021 · Senate
Read a second time
- Feb 16, 2021 · Senate
Ordered to a third reading
- Feb 16, 2021 · Senate
Rules suspended
- Feb 16, 2021 · Senate
Read a third time and concurred in, Ayes 32, Noes 0
- Feb 16, 2021 · Senate
Ordered immediately messaged
- Feb 16, 2021 · Assembly
Received from Senate concurred in
- Feb 18, 2021 · Assembly
Report correctly enrolled on 2-18-2021
- Feb 18, 2021 · Assembly
Presented to the Governor on 2-18-2021
- Feb 18, 2021 · Assembly
Report approved by the Governor on 2-18-2021. 2021 Wisconsin Act 2
- Feb 18, 2021 · Assembly
Published 2-19-2021
Terms on this page
Wisconsin Act
The number a bill gets when it becomes law, like 2025 Wisconsin Act 12.
Official term: Act. More in the glossary
Legislative Reference Bureau
The Legislature's nonpartisan office that drafts bills and writes the summary at the top of each one.
Official term: LRB analysis. More in the glossary
Author
A lawmaker who formally puts a bill forward. The text itself is drafted by the Legislative Reference Bureau.
Official term: Author, coauthor. More in the glossary
Signed on in support
Lawmakers who back a bill without being one of its authors, often from the other chamber.
Official term: Cosponsor. More in the glossary
Cost estimate
A state agency's estimate of what a bill would cost or save.
Official term: Fiscal estimate. More in the glossary
Roll call
A vote where each lawmaker's yes or no is recorded by name.
Official term: Roll call vote. More in the glossary
From the Wisconsin Legislature's official record, checked Sep 15, 2026. See the source
Wisconsin Act
The number a bill gets when it becomes law, like 2025 Wisconsin Act 12.
Official term: Act
Legislative Reference Bureau
The Legislature's nonpartisan office that drafts bills and writes the summary at the top of each one.
Official term: LRB analysis
Signed on in support
Lawmakers who back a bill without being one of its authors, often from the other chamber.
Official term: Cosponsor
Cost estimate
A state agency's estimate of what a bill would cost or save.
Official term: Fiscal estimate
Roll call
A vote where each lawmaker's yes or no is recorded by name.
Official term: Roll call vote