AB555, s. 6 7Section 6. 71.28 (5d) of the statutes is created to read:
AB555,5,98 71.28 (5d) Industrial, service, and skilled trades apprenticeship credit. (a)
9In this subsection:
AB555,5,1710 1. "Apprentice" means a person who participates in a 2-year to 5-year
11apprenticeship program, as determined and approved by the department, in which
12the person receives instruction leading to qualification as a skilled journeyman in an
13industrial manufacturing trade, construction trade, or private sector service
14occupation, if the apprenticeship program provides instruction related to any of the
155 manufacturing trades; any of the 5 construction trades; or any of the 5 private
16sector service occupations; with the most projected job openings for new entrants, as
17determined by the department.
AB555,5,1918 2. "Claimant" means a person who files a claim under this subsection and who
19is a trades trainer, as determined and approved by the department.
AB555,5,2020 3. "Department" means the department of workforce development.
AB555,6,321 (b) Subject to the limitations provided in this subsection, for taxable years
22beginning after December 31, 2001, a claimant may claim as a credit against the
23taxes imposed under s. 71.23 an amount that is equal to 5% of the wages that the
24claimant paid to an apprentice in the taxable year, but not to exceed $1,400, except
25that a claimant may claim as a credit against the taxes imposed under s. 71.23 an

1amount that is equal to 8% of the wages that the claimant paid to an apprentice in
2the taxable year in which the apprentice completes an apprenticeship program, but
3not to exceed $3,000.
AB555,6,144 (c) This subsection does not apply to taxable years that begin after December
531, 2004, if the number of employers training apprentices in department-approved
6programs does not increase by more than 40% from January 1, 2002, to December
731, 2004, as determined by the department, except that a claimant who has claimed
8a credit for an apprentice's wages in any taxable year beginning before January 1,
92005, may continue to claim a credit for the apprentice's wages in succeeding taxable
10years, until the apprentice completes the apprenticeship program. As soon as
11practicable after December 31, 2004, the department shall certify to the department
12of revenue the number of employers training apprentices in approved programs on
13January 1, 2002, and the number of employers training apprentices in approved
14programs on December 31, 2004.
AB555,6,1615 (d) The carry-over provisions of sub. (4) (e) and (f), as they apply to the credit
16under sub. (4), apply to the credit under this subsection.
AB555,6,2417 (e) Partnerships, limited liability companies, and tax-option corporations may
18not claim the credit under this subsection, but the eligibility for, and the amount of,
19the credit are based on their payment of wages under par. (b). A partnership, limited
20liability company, or tax-option corporation shall compute the amount of credit that
21each of its partners, members, or shareholders may claim and shall provide that
22information to each of them. Partners, members of limited liability companies, and
23shareholders of tax-option corporations may claim the credit in proportion to their
24ownership interests.
AB555,7,2
1(f) Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies
2to the credit under this subsection.
AB555, s. 7 3Section 7. 71.30 (3) (dm) of the statutes is created to read:
AB555,7,54 71.30 (3) (dm) The industrial, service, and skilled trades apprenticeship credit
5under s. 71.28 (5d).
AB555, s. 8 6Section 8. 71.34 (1) (g) of the statutes, as affected by 2001 Wisconsin Act 16,
7is amended to read:
AB555,7,108 71.34 (1) (g) An addition shall be made for credits computed by a tax-option
9corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), and
10(3g), and (5d) and passed through to shareholders.
AB555, s. 9 11Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:
AB555,7,1712 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
13computed under s. 71.47 (1dd) to (1dx), and (5d) and not passed through by a
14partnership, limited liability company or tax-option corporation that has added that
15amount to the partnership's, limited liability company's, or tax-option corporation's
16income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under
17s. 71.47 (1), (3), (4), and (5).
AB555, s. 10 18Section 10. 71.47 (5d) of the statutes is created to read:
AB555,7,2019 71.47 (5d) Industrial, service, and skilled trades apprenticeship credit. (a)
20In this subsection:
AB555,8,321 1. "Apprentice" means a person who participates in a 2-year to 5-year
22apprenticeship program, as determined and approved by the department, in which
23the person receives instruction leading to qualification as a skilled journeyman in
24any industrial manufacturing trade, construction trade, or private sector service
25occupation, if the apprenticeship program provides instruction related to any of the

15 manufacturing trades; any of the 5 construction trades; or any of the 5 private
2sector service occupations; with the most projected job openings for new entrants, as
3determined by the department.
AB555,8,54 2. "Claimant" means a person who files a claim under this subsection and who
5is a trades trainer, as determined and approved by the department.
AB555,8,66 3. "Department" means the department of workforce development.
AB555,8,147 (b) Subject to the limitations provided in this subsection, for taxable years
8beginning after December 31, 2001, a claimant may claim as a credit against the
9taxes imposed under s. 71.43 an amount that is equal to 5% of the wages that the
10claimant paid to an apprentice in the taxable year, but not to exceed $1,400, except
11that a claimant may claim as a credit against the taxes imposed under s. 71.43 an
12amount that is equal to 8% of the wages that the claimant paid to an apprentice in
13the taxable year in which the apprentice completes an apprenticeship program, but
14not to exceed $3,000.
AB555,8,2515 (c) This subsection does not apply to taxable years that begin after December
1631, 2004, if the number of employers training apprentices in department-approved
17programs does not increase by more than 40% from January 1, 2002, to December
1831, 2004, as determined by the department, except that a claimant who has claimed
19a credit for an apprentice's wages in any taxable year beginning before January 1,
202005, may continue to claim a credit for the apprentice's wages in succeeding taxable
21years, until the apprentice completes the apprenticeship program. As soon as
22practicable after December 31, 2004, the department shall certify to the department
23of revenue the number of employers training apprentices in approved programs on
24January 1, 2002, and the number of employers training apprentices in approved
25programs on December 31, 2004.
AB555,9,2
1(d) The carry-over provisions of s. 71.28 (4) (e) and (f), as they apply to the credit
2under s. 71.28 (4), apply to the credit under this subsection.
AB555,9,103 (e) Partnerships, limited liability companies, and tax-option corporations may
4not claim the credit under this subsection, but the eligibility for, and the amount of,
5the credit are based on their payment of wages under par. (b). A partnership, limited
6liability company, or tax-option corporation shall compute the amount of credit that
7each of its partners, members, or shareholders may claim and shall provide that
8information to each of them. Partners, members of limited liability companies, and
9shareholders of tax-option corporations may claim the credit in proportion to their
10ownership interests.
AB555,9,1211 (f) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4),
12applies to the credit under this subsection.
AB555, s. 11 13Section 11. 71.49 (1) (dm) of the statutes is created to read:
AB555,9,1514 71.49 (1) (dm) Industrial, service, and skilled trades apprenticeship credit
15under s. 71.47 (5d).
AB555, s. 12 16Section 12. 77.92 (4) of the statutes, as affected by 2001 Wisconsin Act 16, is
17amended to read:
AB555,9,2518 77.92 (4) "Net business income", with respect to a partnership, means taxable
19income as calculated under section 703 of the Internal Revenue Code; plus the items
20of income and gain under section 702 of the Internal Revenue Code, including taxable
21state and municipal bond interest and excluding nontaxable interest income or
22dividend income from federal government obligations; minus the items of loss and
23deduction under section 702 of the Internal Revenue Code, except items that are not
24deductible under s. 71.21; plus guaranteed payments to partners under section 707
25(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),

1(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), and (3g), and (3s), and (5d); and plus or
2minus, as appropriate, transitional adjustments, depreciation differences, and basis
3differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain,
4loss, and deductions from farming. "Net business income", with respect to a natural
5person, estate, or trust, means profit from a trade or business for federal income tax
6purposes and includes net income derived as an employee as defined in section 3121
7(d) (3) of the Internal Revenue Code.
AB555,10,88 (End)
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