Restaurant Revitalization Grants

​On March 7, 2022, Governor Tony Evers signed 2021 Wisconsin Act 156. The Act provides that income received in the form of a grant issued by the restaurant revitalization fund under section 5003 of Public Law 117-2 (American Rescue Plan Act of 2021), is exempt from Wisconsin income and franchise taxes. In addition, expenses paid for with the grants and deducted in the computation of federal adjusted gross income are not required to be added back on the Wisconsin return.

The Act first applies to taxable years beginning after December 31, 2020. Therefore, taxpayers may amend their 2021 Wisconsin returns if they have already filed and included these grants in income.

Instructions to the 2021 Wisconsin income and franchise tax returns have been updated to provide information about how to report this new exemption from income. The 2021 tax forms and instructions are available here: ​​https://www.revenue.wi.gov/Pages/Form/2021-TaxForms.aspx

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Applicable Laws and Rules

This document provides statements or interpretations of the following laws and regulations enacted as of March 9, 2022:​ secs. 71.05, 71.26, 71.34, and 71.45, Wis. Stats., and secs. 705 and 1366, IRC.

Laws enacted and in effect after this date, new administrative rules, and court decisions may change the interpretations in this document. Guidance issued prior to this date, that is contrary to the information in this document is superseded by this document, according to sec. 73.16(2)(a), Wis. Stats.

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The department welcomes your input on our guidance. Submit comments on this guidance document.

Guidance Document Number: 100304

March 9, 2022