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An Income and Franchise Tax Exemption for Restaurant Revitalization Grants

This act provides tax relief by exempting income from federal restaurant revitalization grants from state income and franchise taxes. Specifically, businesses receiving these grants under the federal American Rescue Plan Act of 2021 are not required to report the grant money as taxable income for Wisconsin state taxes. Additionally, expenses paid directly or indirectly with these grants remain deductible. The tax exemption applies to corporations, partnerships, and tax-option corporations, and the exempted income is treated as tax-exempt for purposes of federal provisions. The act retroactively applies to taxable years starting after December 31, 2020.