LRB-1666/1
JK:kjf
2017 - 2018 LEGISLATURE
March 9, 2017 - Introduced by Senator Shilling, cosponsored by Representatives
Doyle, Pope, Sargent, Considine, Crowley, Billings and Sinicki. Referred to
Committee on Revenue, Financial Institutions and Rural Issues.
SB106,1,4 1An Act to amend 71.05 (6) (a) 15., 71.21 (4) (a), 71.26 (2) (a) 4., 71.34 (1k) (g) and
271.45 (2) (a) 10.; and to create 71.07 (8b), 71.10 (4) (cs), 71.28 (8b), 71.30 (3) (cs),
371.47 (8b) and 71.49 (1) (cs) of the statutes; relating to: an income and
4franchise tax credit for businesses that recycle mattresses.
Analysis by the Legislative Reference Bureau
This bill creates an income and franchise tax credit for a business that recycles
mattresses in this state. The credit is equal to 10 percent of the amount a business
pays in the taxable year for machinery and equipment used exclusively to recycle
mattresses. If the amount of the credit exceeds the claimant's tax liability, the
claimant does not receive a refund, but may claim the amount of the unused credit
in subsequent taxable years.
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:
SB106,1 5Section 1. 71.05 (6) (a) 15. of the statutes is amended to read:
SB106,2,46 71.05 (6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the
7credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),

1(3rm), (3rn), (3s), (3t), (3w), (3y), (4k), (4n), (5e), (5f), (5h), (5i), (5j), (5k), (5r), (5rm),
2(6n), (8b), and (8r) and not passed through by a partnership, limited liability
3company, or tax-option corporation that has added that amount to the partnership's,
4company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
SB106,2 5Section 2. 71.07 (8b) of the statutes is created to read:
SB106,2,66 71.07 (8b) Mattress recycling credit. (a) Definitions. In this subsection:
SB106,2,77 1. “Claimant” means a person who files a claim under this subsection.
SB106,2,98 2. “Used exclusively” means used to the exclusion of all other uses except for
9use not exceeding 5 percent of total use.
SB106,2,1510 (b) Filing claims. Subject to the limitations provided in this subsection, for
11taxable years beginning after December 31, 2016, a claimant may claim as a credit
12against the taxes imposed under s. 71.02, up to the amount of the tax, an amount
13equal to 10 percent of the amount the claimant paid in the taxable year for machinery
14and equipment used exclusively to recycle mattresses, if the claimant is engaged in
15the business of recycling mattresses in this state.
SB106,2,2316 (c) Limitations. Partnerships, limited liability companies, and tax-option
17corporations may not claim the credit under this subsection, but the eligibility for,
18and the amount of, the credit are based on their payment of amounts under par. (b).
19A partnership, limited liability company, or tax-option corporation shall compute
20the amount of credit that each of its partners, members, or shareholders may claim
21and shall provide that information to each of them. Partners, members of limited
22liability companies, and shareholders of tax-option corporations may claim the
23credit in proportion to their ownership interests.
SB106,2,2524 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
25s. 71.28 (4), applies to the credit under this subsection.
SB106,3
1Section 3. 71.10 (4) (cs) of the statutes is created to read:
SB106,3,22 71.10 (4) (cs) Mattress recycling credit under s. 71.07 (8b).
SB106,4 3Section 4. 71.21 (4) (a) of the statutes is amended to read:
SB106,3,74 71.21 (4) (a) The amount of the credits computed by a partnership under s.
571.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w),
6(3y), (4k), (4n), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8b), and (8r) and
7passed through to partners shall be added to the partnership's income.
SB106,5 8Section 5. 71.26 (2) (a) 4. of the statutes is amended to read:
SB106,3,149 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
10(1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h),
11(5i), (5j), (5k), (5r), (5rm), (6n), (8b), (8r), and (9s) and not passed through by a
12partnership, limited liability company, or tax-option corporation that has added that
13amount to the partnership's, limited liability company's, or tax-option corporation's
14income under s. 71.21 (4) or 71.34 (1k) (g).
SB106,6 15Section 6. 71.28 (8b) of the statutes is created to read:
SB106,3,1616 71.28 (8b) Mattress recycling credit. (a) Definitions. In this subsection:
SB106,3,1717 1. “Claimant” means a person who files a claim under this subsection.
SB106,3,1918 2. “Used exclusively” means used to the exclusion of all other uses except for
19use not exceeding 5 percent of total use.
SB106,3,2520 (b) Filing claims. Subject to the limitations provided in this subsection, for
21taxable years beginning after December 31, 2016, a claimant may claim as a credit
22against the taxes imposed under s. 71.23, up to the amount of the tax, an amount
23equal to 10 percent of the amount the claimant paid in the taxable year for machinery
24and equipment used exclusively to recycle mattresses, if the claimant is engaged in
25the business of recycling mattresses in this state.
SB106,4,8
1(c) Limitations. 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 payment of amounts under par. (b).
4A partnership, limited liability company, or tax-option corporation shall compute
5the amount of credit that each of its partners, members, or shareholders may claim
6and shall provide that information to each of them. Partners, members of limited
7liability companies, and shareholders of tax-option corporations may claim the
8credit in proportion to their ownership interests.
SB106,4,109 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
10sub. (4), applies to the credit under this subsection.
SB106,7 11Section 7. 71.30 (3) (cs) of the statutes is created to read:
SB106,4,1212 71.30 (3) (cs) Mattress recycling credit under s. 71.28 (8b).
SB106,8 13Section 8. 71.34 (1k) (g) of the statutes is amended to read:
SB106,4,1714 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
15corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3p), (3q), (3r),
16(3rm), (3rn), (3t), (3w), (3y), (4), (5), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n),
17(8b), and (8r) and passed through to shareholders.
SB106,9 18Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:
SB106,4,2519 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
20computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn),
21(3w), (3y), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8r), (8b), and (9s) and
22not passed through by a partnership, limited liability company, or tax-option
23corporation that has added that amount to the partnership's, limited liability
24company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and
25the amount of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).
SB106,10
1Section 10. 71.47 (8b) of the statutes is created to read:
SB106,5,22 71.47 (8b) Mattress recycling credit. (a) Definitions. In this subsection:
SB106,5,33 1. “Claimant” means a person who files a claim under this subsection.
SB106,5,54 2. “Used exclusively” means used to the exclusion of all other uses except for
5use not exceeding 5 percent of total use.
SB106,5,116 (b) Filing claims. Subject to the limitations provided in this subsection, for
7taxable years beginning after December 31, 2016, a claimant may claim as a credit
8against the taxes imposed under s. 71.43, up to the amount of the tax, an amount
9equal to 10 percent of the amount the claimant paid in the taxable year for machinery
10and equipment used exclusively to recycle mattresses, if the claimant is engaged in
11the business of recycling mattresses in this state.
SB106,5,1912 (c) Limitations. Partnerships, limited liability companies, and tax-option
13corporations may not claim the credit under this subsection, but the eligibility for,
14and the amount of, the credit are based on their payment of amounts under par. (b).
15A partnership, limited liability company, or tax-option corporation shall compute
16the amount of credit that each of its partners, members, or shareholders may claim
17and shall provide that information to each of them. Partners, members of limited
18liability companies, and shareholders of tax-option corporations may claim the
19credit in proportion to their ownership interests.
SB106,5,2120 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
21s. 71.28 (4), applies to the credit under this subsection.
SB106,11 22Section 11. 71.49 (1) (cs) of the statutes is created to read:
SB106,5,2323 71.49 (1) (cs) Mattress recycling credit under s. 71.47 (8b).
SB106,5,2424 (End)
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