Gov. Tony Evers on Monday, March 7, signed into law a bill that helps Wisconsin restaurants recover and rebound from the COVID-19 pandemic.
Assembly Bill 717 creates an income and franchise tax exemption for income received from Restaurant Revitalization Fund (RRF) grants.
The RRF grants, established under the federal American Rescue Plan Act, provided funding to help restaurants and other eligible businesses keep their doors open amid the COVID-19 pandemic.
Assembly Bill 717, now 2021 Wisconsin Act 156, also provides that expenses paid for by the proceeds of RRF grants that are deductible, conforming to the tax treatment adopted for Paycheck Protection Program forgiven loans and other pandemic assistance programs.
Evers also signed Senate Bill 339, now 2021 Wisconsin Act 157, which federalizes the state’s treatment of the net capital deduction by increasing the amount of ordinary income that may be offset by net capital losses from $500 to $3,000 beginning in tax year 2023.
The act also extends the increased maximum net capital loss offset to tax option corporations that chose entity-level taxation.