Instructions for 2023 Schedule 4W:  
                   Wisconsin Subtractions from Federal Income

Purpose of Schedule 4W 

Corporations complete Schedule 4W to report subtraction modifications that are needed to account for differences 
between taxable income under Wisconsin law and under federal law. The corporation files Schedule 4W with its 
Wisconsin Form 4.  

Line-by-Line Instructions 

■ Line 1. Wisconsin Subtraction Modification for Dividends – Enter the total from line 4 of Schedule 4Y. See the 
Schedule 4Y instructions for an explanation of dividends that are eligible for the subtraction.  

■ Line 2. Related Entity Expenses –  If the corporation made an addition modification for related entity expenses on 
Schedule 4V, line 3, this is where you report the amount that qualifies for a deduction. Enter the amount of the 
expenses from Schedule 4V, line 3, that are deductible using the criteria described in Conditions for Deducting Re-
lated Entity Expenses, below.  

For corporations that are partners, members, or beneficiaries of pass-through entities, also include the amount of 
allowable related entity expense reported on line 22b of Schedule 3K-1 and on line 14b of Schedule 2K-1, as appli-
cable. 

Conditions for Deducting Related Entity Expenses. Section 71.80(23)(a)3., Wis. Stats., provides that a   related 
entity expense that was added back on Schedule 4V, line 3, qualifies for a deduction if all the following conditions are 
met: 
• The primary motivation for the transaction was one or more business purposes other than the avoidance or 
  reduction of state income or franchise taxes; 
• The transaction changed the economic position of the taxpayer in a meaningful way apart from tax effects; and 
• The expenses were paid, accrued, or incurred using terms that reflect an arm’s length relationship. 

Factors that may indicate that the expense does not qualify for a deduction include the following:   

• There was no actual transfer of funds from the taxpayer to the related entity, or the funds were substantially 
  returned to the taxpayer, either directly or indirectly. 
• If the transaction was entered on the advice of a tax advisor, the advisor’s fee was determined by reference to 
  the tax savings. 
• The related entity does not regularly engage in similar transactions with unrelated parties on terms substantially 
  similar to those of the subject transaction. 
• The transaction was not entered into at terms comparable to arm’s length as determined by Treas. Reg. 1.482-
  1(b). 
• There was no realistic expectation of profit from the transaction apart from the tax benefits. 
• The transaction resulted in improper matching of income and expenses. 
• An expense for the transaction was accrued under FIN 48. 

The statutes (sec. 71.80(23)(a)1. and 2., Wis. Stats.) provide some additional conditions under which a related entity 
expense may qualify for a deduction, subject to some important exceptions. Those conditions are: 
• If the expense was paid to a related entity that is merely acting as a conduit between the taxpayer and an unre-
  lated entity, or 

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                                      2023 Schedule 4W Instructions 
 
• If the related entity was subject to a tax measured by net income or receipts and the net income or receipts of 
  the transaction were included in its tax base. 

More Information on Related Entity Expenses. For more information on the deductibility of related entity expenses, 
see the Schedule RT instructions. Even if you weren’t required to file Schedule RT for the expenses you added back 
on Schedule 4V, the instructions to Schedule RT provide helpful information regarding deductibility of related entity 
expenses. 

■ Line 3. Income from Related Entities Whose Expenses Were Disallowed – If the corporation has income from 
a related entity which paid, accrued, or incurred expenses to the corporation, and that related entity could not deduct 
those expenses according to the instructions for line 2, the corporation may subtract the corresponding income from 
its taxable income. 

To claim a subtraction on line 3, the corporation must obtain Schedule RT-1 from the related entity and include 
Schedule RT-1 with Schedule 4W. See the Schedule RT-1 instructions for further details. 

■ Line 4. Subpart F, and Section 965(a) Income –  

• Enter income from controlled foreign corporations under Subpart F of the Internal Revenue Code as reported 
  on Form 1120, Schedule C, line 16, column (a).  
• Do not include Previously Taxed Income (PTI) required to be reported on Form 1120, Reconciliation of Net In-
  come (Loss) per Income Statement of Includible Corporations With Taxable Income per Return.  An addition 
  adjustment for PTI should not be netted against a Subpart F income subtraction.  Report PTI as an addition on 
  Schedule 4V, line 4. 
• Enter section 965(a) inclusion as reported on Form 1120. 

Line 5. Global intangible low-taxed income (GILTI) -Enter GILTI as reported on Form 1120, Schedule C, line 17, 
column (a). 

■ Line 6. Foreign Dividend Gross-Up – Enter foreign dividend gross-up reported on Form 1120, Schedule C, line 
18, column (a).  

■ Line 7. Nontaxable Income – Enter nontaxable income included in computing federal taxable income. Include a 
schedule with your return showing the payers and amounts of nontaxable income and explaining why that income 
isn’t taxable. 

Interest, dividends, and capital gains from the disposition of intangible assets are nontaxable if both of the following 
are true: 
• The operations of the payer are not unitary with those of the payee, and 
• The payer and payee are not related as parent company and subsidiary or affiliates and the investment activity 
  from which the income is received is not an integral part of a unitary business. 

Income may also be nontaxable under the principles of the U.S. Supreme Court decision in Allied-Signal v. Director, 
Div. of Taxation, 504 U.S. 768 (1992), if the investment is passive and does not serve an operational function. 

For corporations subject to the Wisconsin income tax rather than the franchise tax, nontaxable income also includes 
interest on United States government obligations. 

Franchise tax applies to: 

•  All domestic corporations (those organized under Wisconsin law), and 

•  Foreign corporations (those not organized under Wisconsin law) doing business in Wisconsin or buying or selling 
  lottery prizes if the winning tickets were originally bought in Wisconsin, except where taxation is exempted by 
  statute or barred by federal law. 

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                                           2023 Schedule 4W Instructions 
 
The tax rate is 7.9%. Income from obligations of the United States government and its instrumentalities is included in 
income under the franchise tax law. 

Income tax applies only to foreign corporations which are not subject to the franchise tax and which own property in 
Wisconsin or whose business in Wisconsin is exclusively in foreign or interstate commerce. The tax rate is 7.9%. 
Income from obligations of the United States government and its instrumentalities is not included in income under the 
income tax law. 

 CAUTION:         Expenses related to nontaxable  income  aren’t deductible and  must be  added to federal taxable 
 income on Schedule 4V, line 5. 
                                                                                                                          
■ Line 8. Foreign Taxes – Enter foreign taxes paid or accrued during the year, but only if the income on which the 
tax is based is included in Wisconsin taxable income. Do not enter amounts that were deducted from federal taxable 
income or amounts included on Schedule 4W, line 6.  

■ Line 9. Cost Depletion – For taxable years beginning on or after January 1, 2014, Wisconsin allows percentage 
depletion, so an adjustment is generally not required. 

■ Line 10. Basis, Section 179, Depreciation Difference, Amortization of Assets –   
 
Enter the amount by which the Wisconsin deduction for depreciation or amortization exceeds the federal deduction 
for depreciation or amortization. Provide a schedule showing the computation details. These differences can happen 
because of IRC sections not adopted for Wisconsin purposes and electing a different depreciation method under the 
Internal Revenue Code in effect for Wisconsin purposes. For further information about the differences between fed-
eral and Wisconsin basis and depreciation, see the section titled Conformity with Internal Revenue Code and Excep-
tions in the Form 4 instructions, as applicable. 
 
■ Line 11. Basis Differences –  
 
• Enter the amount by which the Wisconsin basis of assets disposed of exceeds the federal basis. See the instruc-
  tions for Schedule 4V, line 7, for an example. Provide a schedule showing the computation details. 
 
• Investment in a Wisconsin Qualified Opportunity Fund (QOF) 
    
   A corporation may qualify for a basis adjustment under sec.  71.26(3)(vm), Wis. Stats., if all of the following 
   conditions are met: 
    
     •            In a previous year, the corporation deferred paying tax on a capital gain by investing in a Wisconsin 
                  QOF. 
     •            For the year in which the corporation invested in the Wisconsin QOF, the Wisconsin QOF properly 
                  filed Wisconsin Form WQOF and provided a copy to the corporation. Exception: Form WQOF is not 
                  required for taxable years beginning prior to January 1, 2020. 
     •            The corporation held the investment in the Wisconsin QOF for at least 5 years. 
     •            For the taxable year beginning in 2023, the corporation qualifies for the federal exclusion under sec. 
                  1400Z-2(b)(2)(B)(iii), IRC, or sec. 1400Z-2(b)(2)(B)(iv), IRC. 
    
   If the above conditions are met, the corporation may use the following worksheet to calculate its subtraction. 
     
                                                      Worksheet                                    Amount 
     Line 1 – If the investment in the WI QOF was held for at least 5 years but less than 7        
     years, enter 10%. If the investment in the WI QOF was held for 7 years or more, enter 
     15%. 
     Line 2 – Amount of deferred gains from the investment in a WI QOF.                            
     Line 3 – Multiply line 2 by line 1. This is the amount of the corporation's basis adjustment  
     to include on Schedule 4W, line 11. 
•  

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                                           2023 Schedule 4W Instructions 
 
■ Line 12. Federal Wage Credits –   Enter wages that aren’t deductible in computing federal income because they 
are being used in computing federal credits based on wages. See page 8 of Wisconsin Tax Bulletin 214 for additional 
information. 

■ Line 13. Federal Research Credit Expenses –   Enter research expenses that aren’t deductible in computing fed-
eral income because they are being used in computing the federal credit for increasing research activities. 

■ Line 14. Financial institution loan exemption –  Qualifying financial institutions enter the total amount of the 
interest, fees, and penalties derived from the issuance of a commercial loan. 

■ Line 15. Other Subtractions –   Enter any other subtractions from federal income that are not specifically listed in 
lines 1-14 above, except for the insurance company adjustment, which is reported on line 16.  

  CAUTION: Do not enter subtractions on line 15 that are specifically designated on lines 1 -14 above. For example, 
  if a depreciation adjustment is passed through from a partnership on Schedule 3K-1, enter the amount on Schedule 
  4W, line 10, not on line 15. 
                                                                                                                         
 Other subtractions may include: 

•  Adjustments required as a result of changes made to the Internal Revenue Code which don’t apply for Wisconsin. 
   For Wisconsin, the Internal Revenue Code means the federal Internal Revenue Code as of December 31, 2022, 
   with the following exceptions.  
    
   •   Provisions of the Internal Revenue Code Not Adopted by Wisconsin include: 
 
   o  Sections 1, 3, 4, and 5 of P.L. 106-519, which repealed foreign sales corporation provisions and replaced 
       with extraterritorial income provisions. 
   o  Sections 101,  102, and  422 of P.L.  108-357, which repealed the  exclusion for extraterritorial  income, 
       domestic production activities deduction, and the creation of sec. 965 – incentives to reinvest foreign earnings 
       in the U.S. 
   o  Sections 1310 and 1351 of P.L. 109-58, which  provides for the  modification to special rules for  nuclear 
       decommissioning costs, repeal of the limitation on contract research expenses paid so small businesses, 
       universities, and federal laboratories. 
   o  Section 11146 of P.L. 109-59, the tax treatment of state ownership of railroad real estate investment trust. 
   o  Section 403(q) of P.L. 109-135, which provides incentives to reinvest foreign earnings from controlled foreign 
       corporations in the U.S. 
   o  Section 513 of P.L.109-222, which repeals foreign sales corporation/extraterritorial income exclusion binding 
       contract relief. 
   o  Sections 104 of P.L. 109-432, which increases the rates of the alternative incremental credit and provides a 
       new alternative simplified credit.  
   o  Sections 8233 and 8235 of P.L. 110-28, which created a special rule for banks required to change from the 
       reserve method of accounting in becoming tax-option (S) corporations and the elimination of all earnings and 
       profits attributable to pre-1983 years. 
   o  Section 11(e) and (g) of P.L. 110-172, which provides clerical amendments to research credits for controlled 
       corporations and common control, and clerical amendments to the FSC Repeal and Extraterritorial Income 
       Exclusion Act of 2000. 
   o  Section 301 of P.L. 110-245, which provides for tax responsibilities of expatriation. 
   o  Section 15351 of P.L. 110-246, limits the amount of farm losses that may offset non-farming business income 
       to $300,000. 
   o  Section 302 of division A, section 401 of division B, and sections 312, 322, 502(c), 707, and 801 of division 
       C of P.L. 110-343, which limits executive compensation for employers participating in troubled assets relief 
       program for the  taxable year  in which the troubled assets exceed $300,000,000.   Caps the  domestic 
       production activities deduction at  6% for  oil-related  activities. The deduction for income attributable to 
       domestic production activities in Puerto Rico applies to the first 8 taxable years beginning before January 1, 

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                                     2023 Schedule 4W Instructions 
 
  2010.  Tax incentives for investment in the District of Columbia includes exclusion for gain on sale of an asset 
  held from more than 5 years. Defines wages for purposes of the domestic production activities deduction.  
  Creates sec. 198A to provide for expensing  of disaster expenses for control  of hazardous substances. 
  Specifies treatment of nonqualified deferred compensation plans maintained by foreign corporations.   
 o  Sections 1232, 1251, 1501, and 1502 of division B of P.L. 111-5, which suspends the special rules for original 
  issue discount on high yield obligations issued during the period 9/1/2008 and 12/31/2009.  Provides that no 
  built-in-gain tax is imposed on a tax-option (S) Corporation for a taxable year beginning in 2009 and 2010 if 
  the seventh taxable year in the corporation's recognition period preceded such taxable year. Tax-exempt 
  obligations held by financial institutions, in an amount not to exceed 2 percent of the adjusted basis of the 
  financial institution's assets, are not taken into account for determining the portion of the financial institutions 
  interest expense subject to the pro rata interest disallowance rule of sec. 265(b). Modification of the small 
  insurer exception to tax-exempt interest expense allocation rules for financial institutions. 
 o  Sections 211, 212, 213, 214, and 216 of P.L. 111-226, which adopts a matching rule to prevent the separation 
  of foreign taxes from the associated foreign income, denies a foreign tax credit for the disqualified portion of 
  any foreign income tax paid in connection with a covered asset acquisition, provides a separate application 
  of foreign tax credit limitation to items resourced under treaties, limits the amount of foreign taxes deemed 
  paid with respect to sec. 956 inclusions, treats a foreign corporation as a member of an affiliated group for 
  interest allocation and apportionment purposes in more than 50% of gross income is effectively connected 
  income and at least 80% of either the vote or value of all outstanding stock is owned directly or indirectly by 
  members of the affiliated group.   
 o  Section 2122 of P.L. 111-240, which clarifies the income sourcing rules for guaranteed fees. 
 o  Sections 754 and 760 of P.L. 111-312, which specifies certain tax incentives for investments in the District 
  of Columbia and specifies that gross income does not include gain on certain small business stock. 
 o  Sections 104, 318, 322, 323, 326, 327, and 411 of P.L. 112-240, which makes the alternative minimum tax 
  exemption permanent and indexed for inflation, extends through 2013 the deduction with respect to income 
  attributable to domestic production activities in Puerto Rico, extends the subpart F exception for  active 
  financing  income, extends the look-thru treatment of payments between related controlled foreign 
  corporations under foreign personal holding company, extends through 2013 the reduction in tax-option (S) 
  Corporation built-in gains tax and clarifies treatment of installment sales, provides a 60% exclusion for gain 
  on small business stock acquired before 2019, and extends through 2013 the rules that allow gain certain 
  sales of electric transmission property to be recognized ratably over 8 taxable years. 
 o  Public Law. 114-7, relating to contributions for relief of slain New York Police Detectives. 
 o  Section 1101 of P.L. 114-74 relating to partnership rules. 
 o  Section 305 of division P of P.L. 114-113, relating to the transportation costs of independent refiners. 
 o  Sections 123, 125-128, 143, 144, 151-153, 165-167, 169-171, 189, 191, 326, and 411 of division Q of P.L. 
  114-113:  
  o  Section  123, relating to  extension of 15-year  straight-line cost recovery for qualified leasehold 
                  improvements, qualified restaurant buildings and improvements, and qualified retail improvements. 
  o  Section  125,  relating  to  the  extension  of  treatment  of  certain  dividends  of  regulated  investment 
                  companies. 
  o  Section 126, relating to the extension of exclusion of 100 percent of gain on certain small business stock. 
  o  Section 127, relating to the extension of reduction in S-corporation recognition period for built-in gains 
                  tax. 
  o  Section 128, relating to the extension of subpart F exception for active financing income. 
  o  Section 143, relating to the extension and modification of bonus depreciation. 
  o  Section 144, relating to the extension of look-thru treatment of payments between related controlled 
                  foreign corporations under foreign personal holding company rules. 
  o  Section 151, relating to the extension and modification of exclusion from gross income of discharge of 
                  qualified principal residence indebtedness. 
  o  Section 152, relating to the extension of mortgage insurance premiums treated as qualified residence 
                  interest. 
  o  Section 153, relating  to the extension  of above-the-line  deduction for qualified tuition and related 
                  expenses. 
  o  Section 165, relating to the extension of classification of certain racehorses as 3-year property. 

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                                                  2023 Schedule 4W Instructions 
 
  o  Section 166, relating to the extension of 7-year recovery period for motorsports entertainment complexes. 
  o  Section 167, relating to the extension and modification of accelerated depreciation for business property 
                  on an Indian reservation. 
  o  Section  169,  relating  to  the  extension  of  special  expensing  rules  for  certain  film  and  television 
                  productions; special expensing for live theatrical productions. 
  o  Section  170, relating to the extension  of  deduction  allowable with respect to  income  attributable to 
                  domestic production activities in Puerto Rico. 
  o  Section 171, relating to the extension and modification of empowerment zone tax incentives. 
  o  Section 189, relating to the extension of special allowance for second generation biofuel plant property. 
  o  Section 191, relating to the extension of special rule for sales or dispositions to implement FERC or State 
                  electric restructuring policy for qualified electric utilities. 
  o   
  o  Section 326, relating to the dividends derived from RICs and REITs ineligible for deduction for United 
                  States source portion of dividends from certain foreign corporations. 
  o  Section 411, relating to the partnership audit rules. 
 
 o  Sections 11011, 11012, 13201 (a) to (e) and (g), 13206, 13221, 13301, 13304 (a), (b), and (d), 13531, 13601, 
  13801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 
  14302, 14304, and 14401 of P.L. 115−97: 
  o  Section 11011, relating to the 20% deduction for domestic qualified business income. 
  o  Section 11012, relating to the limitation on losses for taxpayers other than corporations. 
  o  Section 13201 (a) to (e) and (g), relating to the temporary 100% expensing for certain business assets 
                  (bonus depreciation). 
  o  Section 13206, relating to the amortization of research and experimental expenditures beginning in 2022. 
  o  Section 13221, relating to special rules for the taxable year of inclusion. 
  o  Section 13301, relating to the 30% taxable income limitation for the deduction of interest. 
  o  Section 13304(a), (b), and (d) relating to the limit on the deduction by employers of fringe benefits (meals, 
                  entertainment, and transportation). 
  o  Section 13531, relating to the limitation on deductions for FDIC premiums. 
  o  Section 13601, relating to the modification of the limitation on excessive employee remuneration.  
  o  Section 13801, relating to the production period for beer, wine, and distilled spirits. 
  o  Section 14101, relating to the deduction for the foreign-source portion of dividends received by domestic 
                  corporations from specified 10% owned foreign corporations. 
  o  Section 14102, relating to the special rules for sale or transfers involving specified 10% owned foreign 
                  corporations. 
  o  Section 14103, relating to the treatment of deferred foreign income upon transition to a participation 
                  exemption system of taxation. 
  o  Section 14201, relating to the current year global intangible low-taxed income by U.S. shareholders. 
  o  Section 14202, relating to the deduction for foreign derived intangible income and global intangible low-
                  taxed income. 
  o  Section 14211, relating to the elimination of the inclusion of foreign base company oil related income. 
  o  Section 14212, relating to the repeal of the inclusion based on withdrawal of previously excluded subpart 
                  F income from qualified investment. 
  o  Section  14213, relating to the  modification  of stock  attribution rules for determining the status as a 
                  controlled foreign corporation. 
  o  Section 14214, relating to the modification of the definition of a U.S. shareholder. 
  o  Section 14215, relating to the elimination of the requirement that a corporation must be controlled for 30 
                  days before the subpart F inclusions apply. 
  o  Section 14221, relating to the limitations on income shifting through intangible property transfers. 
  o  Section 14222, relating to certain related party amounts paid or accrued in hybrid transactions or with 

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                                            2023 Schedule 4W Instructions 
 
                  hybrid entities.  
  o  Section 14301, relating to the repeal of section 902 – indirect foreign tax credits, and determination of 
                  the deemed paid credit for subpart F inclusions under sec. 960 on a current year basis. 
  o  Section 14302, relating to the separate foreign tax credit limitation basket for foreign branch income. 
  o  Section 14304, relating to the election to increase the percentage of domestic taxable income offset by 
                  the overall domestic loss treated as foreign source. 
  o  Section 14401, relating to the base erosion anti-abuse tax.  
 o  Sections 40304, 40305, 40306, and 40412 of P.L. 115-123: 
  o  Section 40304, relating to the extension of classification of certain racehorses as 3-year property. 
  o  Section  40305, relating to the  extension  of 7-year  recovery period for  motor-sports entertainment 
                  complexes. 
  o  Section 40306, relating to the extension of accelerated depreciation for business property on an Indian 
                  reservation. 
  o  Section 40412, relating to the extension of special allowance for second generation biofuel plant property. 
 o  Section 101 (c) of division T of P.L. 115-141, relating to the application of section 199 to certain qualified 
  payments paid after 2017 for payments received by a patron from a specified agricultural or horticultural 
  cooperative for qualified production activities income.  
 o  Sections 101 (d) and (e), 102, 201 to 207, 301, 302, and 401 (a) (47) and (195), (b) (13), (17), (22) and 
  (30), and (d) (1) (D) (v), (vi), and (xiii) and (xvii) (II) of division U of P.L. 115-141: 
  o  Sections 101 (d) and (e) and 102, relating to technical corrections to bonus depreciation, alternative 
                  minimum tax requirements for qualified Indian reservation property, and qualified production activities 
                  income  made  by  the  Protecting  Americans  from  Tax  Hikes  Act  of  2015  and  the  Consolidated 
                  Appropriations Act, 2016. 
  o  Sections 201 to 207 relating to partnership audit rules. 
  o  Sections 301 and 302, relating to amendments to regulatory requirements for partnership returns and 
                  the definition of qualified small power production facilities made by the Bipartisan Budget Act of 2015 
                  and the Energy Policy Act of 2005. 
  o  Section 401 (a) (47) and (195), (b) (13), (17), (22) and (30), and (d) (1) (D) (v), (vi), and (xiii) and (xvii) 
                  (II), relating  to clerical corrections and  deadwood-related  provisions to the following: exempt facility 
                  bonds, tax-exempt enterprise zone facility bonds, the special allowance for qualified disaster assistance 
                  property, reducing the dividends received deduction where portfolio stock is debt financed, exemption 
                  from tax on corporations, certain trusts, etc., requirements of domestic international sales corporations, 
                  dividends received by corporations, rules applied to deductions for dividends received,  the foreign tax 
                  credit, and dividends received by corporations.  
 o  Sections 104, 114, 115, 116, 130, and 145 of division Q of P.L. 116-94. 
  o  Section 104, relating to the deduction of qualified tuition and related expenses. 
  o  Section 114, relating to the classification of certain racehorses as 3-year property. 
  o  Section 115, relating to the 7-year recovery period for motorsports entertainment complexes. 
  o  Section 116, relating to the accelerated depreciation for business property on Indian reservations. 
  o  Section 130, relating to special allowance for second generation biofuel plant property. 
  o  Section 145, relating to look-thru rule for related controlled foreign corporations. 
 o  Sections 2304 and 2306 of P.L. 116-136: 
  o  Section 2304, relating to the modification of limitations on losses for taxpayers other than corporations. 
  o  Section 2306, relating to the modifications of limitation on business interest. 
 o  Sections 111, 114, 115, 116, 118 (a) and (d), 133, 137, 138, and 210 of division EE of P.L. 116-260. 
  o  Section 111, relating to the look-thru rule for related controlled foreign corporations. 
  o  Section 114, relating to the exclusion from gross income of discharge of qualified principal residence 
                  indebtedness. 
  o  Section 115, relating to the 7-year recovery period for motorsports entertainment complexes. 
  o  Section 116, relating to the expensing rules for certain productions. 
  o  Section 118 (a) and (d), relating to empowerment zone tax incentives. 
  o  Section 133, relating to the treatment of mortgage insurance premiums as qualified residence interest. 
  o  Section 137, relating to the classification of certain racehorses as 3-year property. 
  o  Section 138, relating to the accelerated depreciation for business property on Indian reservations. 
  o  Section 210, relating to temporary allowance of full deduction for business meals. 

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                                         2023 Schedule 4W Instructions 
 
 • Section 5003, 9041, 9673, 9675, and 9708 of P.L. 117-2. 
   o  Section 5003, relating to additional restaurant revitalization grant funds. 
   o  Section 9041, relating to the excess business loss limitation extension for noncorporate taxpayers to 
                  December 31, 2026. 
   o  Section  9673, relating to  restaurant revitalization  grants not  being included in gross  income  and 
                  deductions allowed. 
   o  Section 9675, relating to the exclusion from income for most student loans discharged after December 
                  31, 2020, and before January 1, 2026. 
   o  Section 9708, relating to the expanded definition of "covered employee" for publicly held corporations 
                  deducting excessive employee remuneration. 
 • Section 13903(b) of P.L.  117-169, relating  to the extension of the  excess business loss  limitation for 
   noncorporate taxpayers through December 32, 2028. 
 Changes made by the following public laws apply for Wisconsin purposes for taxable years beginning after 
 December 31, 2010: 
                   
 • Section 1201 of P.L. 108-173, relating to health savings accounts. 
 • Section 307 of P.L. 109-432, relating to the exclusion from gross income of a one-time distribution from 
   individual retirement accounts to fund health savings accounts. 
    
 Changes made by the following public laws apply for Wisconsin purposes for taxable years beginning after 
 December 31, 2022: 

 • Sections 5001, 5002, 5005, 9623, 9624, and 9672 of P.L. 117-2 
   o  Section 5001, relating to the addition of certain nonprofit entities and internet publishing organizations 
                  to the list of eligible entities to receive a paycheck protection program loan. 
   o  Section 5002, relating to additional appropriations for targeted economic injury disaster loan advances. 
   o  Section 5005, relating to additional appropriations for shuttered venue operator grants and a reduction 
                  in the amount of a paycheck protection program loans received. 
   o  Section 9623, relating to allowing a married individual who files as married filing separate and lives 
                  apart from their spouse for the last 6 months of the year or has a divorce or separation instrument with 
                  the other spouse by the end of the tax year to claim the earned income credit. 
   o  Section 9624, relating to permanently raising the investment income limit to $10,000, and allowing 
                  adjustments for inflation in subsequent years for purposes of claiming the earned income credit.  
   o  Section 9672, relating to targeted economic injury disaster loan advances received under sec. 331 of 
                  Division N of P.L. 116-260 not being included in gross income, allowing deductions, not reducing tax 
                  attributes, and allowing a basis increase.  For partnerships and S corporations, any amount forgiven 
                  are treated as tax-exempt for purposes of sec. 705 and 1366, IRC. 
 • Section 2 of P.L. 117-6, relating to the extension of paycheck protection program loan funding to June 30, 
   2021. 
 • The following sections of Division H of P.L. 117-58: 
   o  Section 80401, relating to the addition of qualified broadband projects to the list of federally exempt 
                  facility bonds. 
   o  Section 80402, relating to the addition of qualified carbon dioxide capture facilities to the list of federally 
                  exempt facility bonds. 
   o  Section 80601, relating to including certain contributions received by a regulated public utility which 
                  provides water or sewerage disposal services in the definition of a "contribution to the capital of the 
                  taxpayer" for purposes of excluding the contribution from gross income of a corporation. 
 • Adjustments required as a result of making different elections for Wisconsin and federal purposes. See page 
   8 of Wisconsin Tax Bulletin 214. 
 • Separately stated  items of expense and adjustments for differences between the federal  and  Wisconsin 
   treatment of any items of an S corporation that opts out of Wisconsin tax-option status. 
 • For credit unions, an adjustment to remove income from non-public deposits from Wisconsin income as 
   described in the instructions to Schedule CU-1. 
 • The amount of net income of an out-of-state business from performing disaster relief work.  See Publication 
   411 – Disaster Relief, for more information 
 • Entity-Level Tax Election Made by a Partnership – If the corporation is a partner in a partnership that makes 
   the entity level tax election, make an adjustment to remove the items of income, gain, loss, or deduction that 

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                                        2023 Schedule 4W Instructions 
 
     were included in federal taxable income before net operating loss and special deductions.  If the partnership 
     makes the election, the box on Schedule 3K-1, Part C, box 3 will be checked.  Include a copy of the Schedule 
     3K-1 and all supplemental schedules with your return. 
  •  Income received from the state of Wisconsin with money received from the coronavirus relief fund author-
     ized under 42 USC 801 to be used for any of the following purposes: 
                              
     o  Grants to small businesses                 o  Lodging industry grants 
     o  A farm support program                     o  Low-income home energy assistance 
     o  Broadband expansion                        o  A rental assistance program 
     o  Privately owned movie theater grants       o  Supplemental child care grants 
     o  A nonprofit grant program                  o  A food insecurity initiative 
     o  A tourism grants program                   o  Ethanol industry assistance 
     o  A cultural organization grant program      o  Wisconsin Eye 
     o  Music and performance venue grants 

  •  Income received in the form of a grant issued by the Wisconsin Economic Development Corporation during 
     and related to the COVID-19 pandemic under the ethnic minority emergency grant program.   
     
   Note: For Wisconsin, expenses paid for with these programs and deducted in the computation of federal ad-
   justed gross income are not required to be added back on the Wisconsin return. Income from these programs 
   is included in federal income according to sec. 61, IRC, unless an exception applies. Income from these pro-
   grams included in federal income should be excluded for Wisconsin by making a subtraction modification. For 
   the description, use "Wisconsin COVID-19 Program Funds." 
   
■ Line 16. Nontaxable Income from Life Insurance Operations –   If the corporation is an insurance company that 
has both life insurance operations and non-life insurance operations, enter the amount of nontaxable income from 
life insurance operations as computed on Schedule 4I, line 13. See the Schedule 4I instructions for details.  
 
Additional Information and Assistance

Web Resources.      

The Department of Revenue’s web page, available at revenue.wi.gov, has several resources to provide additional 
information and assistance, including: 

• Related forms and their instructions  
• Common questions  
• Publications on specific tax topics 
• The Wisconsin Tax Bulletin  
• A home page specifically for combined reporting topics 
• Links to the Wisconsin Statutes and Administrative Code 
 
Contact Information.  

If you cannot find the answer to your question in the resources available on the Department of Revenue’s web page, 
contact the Department using any of the following methods: 

• E-mail your question to: DORFranchise@wisconsin.gov  
• Call (608) 266-2772  

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                               2023 Schedule 4W Instructions 
 
  (Telephone help is also available using TTY equipment. Call the Wisconsin Telecommunications Relay System 
  at 711 or, if no answer, (800) 947-3529. These numbers are to be used only when calling with TTY equipment.) 
• Send a fax to (608) 267-0834 
• Write to the Audit Bureau, Wisconsin Department of Revenue, Mail Stop 3-107, PO Box 8906, Madison, WI 
  53708-8906 
 
                               Applicable Laws and Rules 
 This document provides statements or interpretations of the  following laws and regulations in effect as of 
 December 1, 2023:  Chapter 71 Wis. Stats., and Chapter Tax 2, Wis. Adm. Code 

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