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This bill creates an income and franchise tax credit for hiring unemployed
veterans. Under the bill, a taxpayer may claim the following amounts as credits:
1. For each disabled veteran the taxpayer hires in the taxable year to work a
full-time job in this state, $4,000 in the taxable year in which the disabled veteran
is hired and $2,000 in each of the three taxable years following the taxable year in
which the disabled veteran is hired.
2. For each disabled veteran the taxpayer hires in the taxable year to work a
part-time job in this state, $2,000 in the taxable year in which the disabled veteran
is hired and $1,000 in each of the three taxable years following the taxable year in
which the disabled veteran is hired.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB369, s. 1
1Section 1. 71.05 (6) (a) 15. of the statutes, as affected by 2011 Wisconsin Act
232
, is amended to read:
SB369,2,83 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
4(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
5(3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (6n), and
6(8r) and not passed through by a partnership, limited liability company, or
7tax-option corporation that has added that amount to the partnership's, company's,
8or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
SB369, s. 2 9Section 2. 71.07 (6n) of the statutes is created to read:
SB369,2,1010 71.07 (6n) Veteran employment credit. (a) Definitions. In this subsection:
SB369,2,1111 1. "Claimant" means a person who files a claim under this subsection.
SB369,2,1412 2. "Disabled veteran" means a veteran who is verified by the department of
13veteran affairs to have a service-connected disability rating of at least 50 percent
14under 38 USC 1114 or 1134.
SB369,2,1715 3. "Full-time job" means a regular, nonseasonal full-time position in which an
16individual, as a condition of employment, is required to work at least 2,080 hours per
17year, including paid leave and holidays.
SB369,2,2018 4. "Part-time job" means a regular, nonseasonal part-time position in which
19an individual, as a condition of employment, is required to work fewer than 2,080
20hours per year, including paid leave and holidays.
SB369,2,2421 5. "Veteran" means a person who is verified by the department of veteran
22affairs to have served on active duty under honorable conditions in the U.S. armed
23forces, in forces incorporated as part of the U.S. armed forces, in the national guard,
24or in a reserve component of the U.S. armed forces.
SB369,3,4
1(b) Filing claims. Subject to the limitations provided in this subsection, for
2taxable years beginning after December 31, 2011, a claimant may claim as a credit
3against the tax imposed under s. 71.02, up to the amount of the tax, an amount equal
4to any of the following:
SB369,3,85 1. Subject to par. (c) 4., for each disabled veteran the claimant hires in the
6taxable year to work a full-time job at the claimant's business in this state, $4,000
7in the taxable year in which the disabled veteran is hired and $2,000 in each of the
83 taxable years following the taxable year in which the disabled veteran is hired.
SB369,3,129 2. Subject to par. (c) 4., for each disabled veteran the claimant hires in the
10taxable year to work a part-time job at the claimant's business in this state, $2,000
11in the taxable year in which the disabled veteran is hired and $1,000 in each of the
123 taxable years following the taxable year in which the disabled veteran is hired.
SB369,3,2013 (c) Limitations. 1. Partnerships, limited liability companies, and tax-option
14corporations may not claim the credit under this subsection, but the eligibility for,
15and the amount of, the credit are based on their hiring of disabled veterans, as
16described under par. (b). A partnership, limited liability company, or tax-option
17corporation shall compute the amount of credit that each of its partners, members,
18or shareholders may claim and shall provide that information to each of them.
19Partners, members of limited liability companies, and shareholders of tax-option
20corporations may claim the credit in proportion to their ownership interests.
SB369,3,2321 2. No credit may be claimed under this subsection in any taxable year in which
22the disabled veteran voluntarily or involuntarily leaves his or her employment with
23the claimant.
SB369,4,224 3. A claimant may claim a credit under this subsection only for hiring a disabled
25veteran who has received unemployment compensation benefits for at least one week

1prior to being hired by the claimant and who was eligible to receive such benefits at
2the time the benefits were paid.
SB369,4,43 4. With regard to a credit claimed under par. (b) 2., the amount that the
4claimant may claim is determined as follows:
SB369,4,65 a. Divide the number of hours that the disabled veteran worked for the
6claimant during the taxable year by 2,080.
SB369,4,87 b. Multiply the amount of the credit under par. (b) 2., as appropriate, by the
8number determined under subd. 4. a.
SB369,4,109 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
10s. 71.28 (4), applies to the credit under this subsection.
SB369, s. 3 11Section 3. 71.10 (4) (cq) of the statutes is created to read:
SB369,4,1212 71.10 (4) (cq) Veteran employment credit under s. 71.07 (6n).
SB369, s. 4 13Section 4. 71.21 (4) of the statutes, as affected by 2011 Wisconsin Act 32, is
14amended to read:
SB369,4,1815 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
16(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s),
17(3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (6n), and (8r) and passed
18through to partners shall be added to the partnership's income.
SB369, s. 5 19Section 5. 71.26 (2) (a) 4. of the statutes, as affected by 2011 Wisconsin Act 32,
20is amended to read:
SB369,5,221 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
22(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r),
23(3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (6n), (8r),
24and (9s) and not passed through by a partnership, limited liability company, or
25tax-option corporation that has added that amount to the partnership's, limited

1liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k)
2(g).
SB369, s. 6 3Section 6. 71.28 (6n) of the statutes is created to read:
SB369,5,44 71.28 (6n) Veteran employment credit. (a) Definitions. In this subsection:
SB369,5,55 1. "Claimant" means a veteran who files a claim under this subsection.
SB369,5,86 2. "Disabled veteran" means a veteran who is verified by the department of
7veteran affairs to have a service-connected disability rating of at least 50 percent
8under 38 USC 1114 or 1134.
SB369,5,119 3. "Full-time job" means a regular, nonseasonal full-time position in which an
10individual, as a condition of employment, is required to work at least 2,080 hours per
11year, including paid leave and holidays.
SB369,5,1412 4. "Part-time job" means a regular, nonseasonal part-time position in which
13an individual, as a condition of employment, is required to work fewer than 2,080
14hours per year, including paid leave and holidays.
SB369,5,1815 5. "Veteran" means a person who is verified by the department of veteran
16affairs to have served on active duty under honorable conditions in the U.S. armed
17forces, in forces incorporated as part of the U.S. armed forces, in the national guard,
18or in a reserve component of the U.S. armed forces.
SB369,5,2219 (b) Filing claims. Subject to the limitations provided in this subsection, for
20taxable years beginning after December 31, 2011, a claimant may claim as a credit
21against the tax imposed under s. 71.23, up to the amount of the tax, an amount equal
22to any of the following:
SB369,6,223 1. For each disabled veteran the claimant hires in the taxable year to work a
24full-time job at the claimant's business in this state, $4,000 in the taxable year in

1which the disabled veteran is hired and $2,000 in each of the 3 taxable years
2following the taxable year in which the disabled veteran is hired.
SB369,6,63 2. Subject to par. (c) 4., for each disabled veteran the claimant hires in the
4taxable year to work a part-time job at the claimant's business in this state, $2,000
5in the taxable year in which the disabled veteran is hired and $1,000 in each of the
63 taxable years following the taxable year in which the disabled veteran is hired.
SB369,6,147 (c) Limitations. 1. Partnerships, limited liability companies, and tax-option
8corporations may not claim the credit under this subsection, but the eligibility for,
9and the amount of, the credit are based on their hiring of disabled veterans, as
10described under par. (b). A partnership, limited liability company, or tax-option
11corporation shall compute the amount of credit that each of its partners, members,
12or shareholders may claim and shall provide that information to each of them.
13Partners, members of limited liability companies, and shareholders of tax-option
14corporations may claim the credit in proportion to their ownership interests.
SB369,6,1715 2. No credit may be claimed under this subsection in any taxable year in which
16the disabled veteran voluntarily or involuntarily leaves his or her employment with
17the claimant.
SB369,6,2118 3. A claimant may claim a credit under this subsection only for hiring a disabled
19veteran who has received unemployment compensation benefits for at least one week
20prior to being hired by the claimant and who was eligible to receive such benefits at
21the time the benefits were paid.
SB369,6,2322 4. With regard to a credit claimed under par. (b) 2., the amount that the
23claimant may claim is determined as follows:
SB369,6,2524 a. Divide the number of hours that the disabled veteran worked for the
25claimant during the taxable year by 2,080.
SB369,7,2
1b. Multiply the amount of the credit under par. (b) 2., as appropriate, by the
2number determined under subd. 4. a.
SB369,7,43 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
4sub. (4), applies to the credit under this subsection.
SB369, s. 7 5Section 7. 71.30 (3) (dp) of the statutes is created to read:
SB369,7,66 71.30 (3) (dp) Veteran employment credit under s. 71.28 (6n).
SB369, s. 8 7Section 8. 71.34 (1k) (g) of the statutes, as affected by 2011 Wisconsin Act 32,
8is amended to read:
SB369,7,129 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
10corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
11(3), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j),
12(5k), (5n), (5r), (5rm), (6n), and (8r) and passed through to shareholders.
SB369, s. 9 13Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2011 Wisconsin Act
1432
, is amended to read:
SB369,7,2115 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
16computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn),
17(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (6n), (8r), and (9s) and not
18passed through by a partnership, limited liability company, or tax-option
19corporation that has added that amount to the partnership's, limited liability
20company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and
21the amount of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).
SB369, s. 10 22Section 10. 71.47 (6n) of the statutes is created to read:
SB369,7,2323 71.47 (6n) Veteran employment credit. (a) Definitions. In this subsection:
SB369,7,2424 1. "Claimant" means a veteran who files a claim under this subsection.
SB369,8,3
12. "Disabled veteran" means a veteran who is verified by the department of
2veteran affairs to have a service-connected disability rating of at least 50 percent
3under 38 USC 1114 or 1134.
SB369,8,64 3. "Full-time job" means a regular, nonseasonal full-time position in which an
5individual, as a condition of employment, is required to work at least 2,080 hours per
6year, including paid leave and holidays.
SB369,8,97 4. "Part-time job" means a regular, nonseasonal part-time position in which
8an individual, as a condition of employment, is required to work fewer than 2,080
9hours per year, including paid leave and holidays.
SB369,8,1310 5. "Veteran" means a person who is verified by the department of veteran
11affairs to have served on active duty under honorable conditions in the U.S. armed
12forces, in forces incorporated as part of the U.S. armed forces, in the national guard,
13or in a reserve component of the U.S. armed forces.
SB369,8,1714 (b) Filing claims. Subject to the limitations provided in this subsection, for
15taxable years beginning after December 31, 2011, a claimant may claim as a credit
16against the tax imposed under s. 71.43, up to the amount of the tax, an amount equal
17to any of the following:
SB369,8,2118 1. For each disabled veteran the claimant hires in the taxable year to work a
19full-time job at the claimant's business in this state, $4,000 in the taxable year in
20which the disabled veteran is hired and $2,000 in each of the 3 taxable years
21following the taxable year in which the disabled veteran is hired.
SB369,8,2522 2. Subject to par. (c) 4., for each disabled veteran the claimant hires in the
23taxable year to work a part-time job at the claimant's business in this state, $2,000
24in the taxable year in which the disabled veteran is hired and $1,000 in each of the
253 taxable years following the taxable year in which the disabled veteran is hired.
SB369,9,8
1(c) Limitations. 1. Partnerships, limited liability companies, and tax-option
2corporations may not claim the credit under this subsection, but the eligibility for,
3and the amount of, the credit are based on their hiring of disabled veterans, as
4described under par. (b). A partnership, limited liability company, or tax-option
5corporation shall compute the amount of credit that each of its partners, members,
6or shareholders may claim and shall provide that information to each of them.
7Partners, members of limited liability companies, and shareholders of tax-option
8corporations may claim the credit in proportion to their ownership interests.
SB369,9,119 2. No credit may be claimed under this subsection in any taxable year in which
10the disabled veteran voluntarily or involuntarily leaves his or her employment with
11the claimant.
SB369,9,1512 3. A claimant may claim a credit under this subsection only for hiring a disabled
13veteran who has received unemployment compensation benefits for at least one week
14prior to being hired by the claimant and who was eligible to receive such benefits at
15the time the benefits were paid.
SB369,9,1716 4. With regard to a credit claimed under par. (b) 2., the amount that the
17claimant may claim is determined as follows:
SB369,9,1918 a. Divide the number of hours that the disabled veteran worked for the
19claimant during the taxable year by 2,080.
SB369,9,2120 b. Multiply the amount of the credit under par. (b) 2., as appropriate, by the
21number determined under subd. 4. a.
SB369,9,2322 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
23s. 71.28 (4), applies to the credit under this subsection.
SB369, s. 11 24Section 11. 71.49 (1) (dp) of the statutes is created to read:
SB369,9,2525 71.49 (1) (dp) Veteran employment credit under s. 71.47 (6n).
SB369, s. 12
1Section 12. 77.92 (4) of the statutes, as affected by 2011 Wisconsin Act 32, is
2amended to read:
SB369,10,183 77.92 (4) "Net business income," with respect to a partnership, means taxable
4income as calculated under section 703 of the Internal Revenue Code; plus the items
5of income and gain under section 702 of the Internal Revenue Code, including taxable
6state and municipal bond interest and excluding nontaxable interest income or
7dividend income from federal government obligations; minus the items of loss and
8deduction under section 702 of the Internal Revenue Code, except items that are not
9deductible under s. 71.21; plus guaranteed payments to partners under section 707
10(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
11(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
12(3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (6n),
13and (8r); and plus or minus, as appropriate, transitional adjustments, depreciation
14differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but
15excluding income, gain, loss, and deductions from farming. "Net business income,"
16with respect to a natural person, estate, or trust, means profit from a trade or
17business for federal income tax purposes and includes net income derived as an
18employee as defined in section 3121 (d) (3) of the Internal Revenue Code.
SB369, s. 13 19Section 13. Nonstatutory provisions.
SB369,11,1120 (1) Joint finance review. No later than June 30, 2013, the department of
21workforce development, in conjunction with the department of revenue, shall submit
22to the joint committee on finance a report describing the impact of the tax credits
23under sections 71.07 (6n), 71.28 (6n), and 71.47 (6n) of the statutes, as created by this
24act, on unemployed veterans in this state and shall make a recommendation to the
25committee as to whether the tax credits should continue. The report shall also

1specify the number and type of businesses that have claimed the credits under
2sections 71.07 (6n), 71.28 (6n), and 71.47 (6n) of the statutes, as created by this act.
3If the cochairpersons of the committee do not notify the department of workforce
4development and the department of revenue within 14 working days after the
5submittal date of the report that the committee has scheduled a meeting for the
6purpose of reviewing the report's recommendation, the recommendation may be
7implemented. If, within 14 working days after the submittal date of the report, the
8cochairpersons of the committee notify the department of workforce development
9and the department of revenue that the committee has scheduled a meeting for the
10purpose of reviewing the recommendation, the recommendation may be
11implemented only upon approval of the committee.
SB369,11,1212 (End)
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