Instructions For Completing Wisconsin Schedule I

10. Modification of Placed in Service Rule for Bonus

(b) Wisconsin – Depreciation for natural gas distribution lines is

Depreciation Property

determined under the provisions of the Internal Revenue Code

in effect on December 31, 2000.

(a) Federal – In the case of multiple units of property subject to the

same lease, property will qualify as placed in service on the date

17. Natural Gas Gathering Lines Treated as 7-Year Property

of sale if it is sold within three months after the final unit is

placed in service, so long as the period between the time the first

(a) Federal – For property placed in service after April 11, 2005,

and last units are placed in service does not exceed 12 months.

there is a 7-year recovery period for MACRS and a class life of

(Public Law 108-357)

14 years for the alternative depreciation system for natural gas

gathering lines. (Public Law 109-58)

(b) Wisconsin – The special rule for multiple units of property

subject to the same lease does not apply for Wisconsin.

(b) Wisconsin – Depreciation for natural gas gathering lines is

determined under the provisions of the Internal Revenue Code

11. Dispositions of Transmission Property to Implement Federal

in effect on December 31, 2000.

Regulatory Commission or State Electric Restructuring

18. Small Refiner Exception to Oil Depletion Deduction

(a) Federal – Taxpayers may elect to recognize gain from qualifying

electric transmission transactions ratably over an eight-year

(a) Federal – For purposes of the small refiner exception to the oil

period if the amount realized is used to purchase exempt utility

depletion deduction, the current 50,000-barrel-per-day limitation

property. (Public Law 108-357)

is increased to 75,000. The refinery limitation on claiming

independent producer status is based on average daily production

(b) Wisconsin – Gain is recognized to the extent the sales price (and

for the taxable year. (Public Law 109-58)

any other consideration received) exceeds the seller’s basis in

the property, unless the gain is deferred or not recognized under

(b) Wisconsin – The treatment of the oil depletion deduction is

a special tax provision.

determined under the provisions of the Internal Revenue Code

in effect on December 31, 2004.

12. Treatment of Disaster Mitigation Grants

19. Amortization of Geological and Geophysical Expenditures

(a) Federal – Federal Emergency Management Agency (FEMA)

disaster mitigation grants to or for the benefit of the owner of

(a) Federal – Effective for amounts paid or incurred in taxable years

property for hazard mitigation are exempt from taxation. (Pub-

beginning after August 8, 2005, amortization of geological and

lic Law 109-7)

geophysical expenditures is allowed as a deduction ratably over

a 24-month period using the half-year convention. (Public

(b) Wisconsin – FEMA disaster mitigation grants are subject to

Law 109-58)

Wisconsin income tax.

(b) Wisconsin – The amortization of geological and geophysical

13. Electric Transmission Property

expenditures is determined under the provisions of the Internal

Revenue Code in effect on December 31, 2000.

(a) Federal – For property placed in service after April 11, 2005,

depreciable property used in the transmission of 69 or more

20. Energy Efficient Commercial Buildings Deduction

kilovolts of electricity for sale is 15-year property for MACRS

purposes and is assigned a 30-year class life for purposes of the

(a) Federal – Effective for property placed in service after Decem-

alternative depreciation system. (Public Law 109-58)

ber 31, 2005, a formula-based deduction is allowed equal to the

energy-efficient commercial building property expenditures

(b) Wisconsin – Depreciation is determined under the provisions of

made if the expenditures reduce the energy and power consump-

the Internal Revenue Code in effect on December 31, 2000.

tion of a commercial building by 50% (Public Law 109-58)

14. Amortization for Certain Atmospheric Pollution Control

(b) Wisconsin – The treatment of energy-efficient commercial

Facilities

building property expenditures is determined under the provisions

of the Internal Revenue Code in effect on December 31, 2000.

(a) Federal – For facilities placed in service after April 11, 2005,

the amortization period is 84 months for certified air pollution

21. Termination of Deduction for Clean-Fuel Vehicles and

facilities used in connection with an electric generation plan

Certain Refueling Property

which was not in operation before January 1, 1976. (Public

Law 109-58)

(a) Federal – The deduction for clean-fuel vehicles and certain

refueling property terminates for property placed in service

(b) Wisconsin – Amortization is determined under the provisions of

after December 31, 2005. (Public Law 109-58)

the Internal Revenue Code in effect on December 31, 2000.

(b) Wisconsin – The deduction for clean-fuel vehicles and certain

15. Expensing for Equipment Used in Refining of Liquid Fuels

refueling property terminates for property placed in service

after December 31, 2006.

(a) Federal – For qualifying refineries placed in service after

August 8, 2005, an election is available to treat 50% of the cost

22. Recapture of Section 197 Amortization

of any qualified refinery property as an expense. (Public

Law 109-58)

(a) Federal – For dispositions of property after August 8, 2005, if

multiple sec. 197 intangibles are sold or otherwise disposed of

(b) Wisconsin – The election to treat 50% of the cost of any

in a single transaction or a series of related transactions, the

qualified refinery property as an expense is not available.

seller must calculate recapture as if all of the sec. 197 intangibles

were a single asset. (Public Law 109-58)

16. Natural Gas Distribution Lines Treated as 15-Year Property

(b) Wisconsin – The treatment of the sale or other disposition of

(a) Federal – For property placed in service after April 11, 2005,

sec. 197 intangibles is determined under the provisions of the

there is a 15-year recovery period for MACRS and a 35-year

Internal Revenue Code in effect on December 31, 2004.

class life for purposes of the alternative depreciation system for

natural gas distribution lines. (Public Law 109-58)

Instructions For Completing Wisconsin Schedule I - 2005 Page 3

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