LRB-0203/1
JK:amn
2019 - 2020 LEGISLATURE
January 29, 2019 - Introduced by Senators Feyen, Darling and Nass, cosponsored
by Representatives Rohrkaste, Gundrum, Horlacher, Kulp, Ramthun,
Rodriguez and Skowronski. Referred to Committee on Agriculture, Revenue
and Financial Institutions.
SB14,1,4 1An Act to amend 71.05 (6) (a) 15., 71.10 (4) (i), 71.21 (4) (a), 71.26 (2) (a) 4., 71.30
2(3) (f), 71.34 (1k) (g), 71.45 (2) (a) 10. and 71.49 (1) (f); and to create 20.835 (2)
3(cq), 71.07 (5p), 71.28 (5p) and 71.47 (5p) of the statutes; relating to: an income
4and franchise tax credit for paid interns and making an appropriation.
Analysis by the Legislative Reference Bureau
This bill allows a person to claim an income and franchise tax credit equal to
$2,500 for each intern who performs work in this state for the person and for whom
the person provides compensation for performing the work. No person may claim the
credit for more than 40 interns in any taxable year. If the amount of the credit
exceeds the person's tax liability, the person receives a refund of the excess amount.
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:
SB14,1 5Section 1. 20.835 (2) (cq) of the statutes is created to read:
SB14,1,76 20.835 (2) (cq) Paid intern credit. A sum sufficient to make the payments under
7ss. 71.07 (5p), 71.28 (5p), and 71.47 (5p).
SB14,2
1Section 2. 71.05 (6) (a) 15. of the statutes is amended to read:
SB14,2,82 71.05 (6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the
3credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
4(3rm), (3rn), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5e), (5f), (5h), (5i), (5j), (5k), (5p),
5(5r), (5rm), (6n), (8r), and (10) and not passed through by a partnership, limited
6liability company, or tax-option corporation that has added that amount to the
7partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or
871.34 (1k) (g).
SB14,3 9Section 3. 71.07 (5p) of the statutes is created to read:
SB14,2,1010 71.07 (5p) Paid intern credit. (a) Definitions. In this subsection:
SB14,2,1111 1. “Claimant” means a person who files a claim under this subsection.
SB14,2,1612 2. “Intern” means a student or trainee who is employed in this state by the
13claimant for at least 8 weeks, but not more than 52 weeks, not including a migrant
14worker, as defined in s. 103.90 (5), or an individual employed by a seasonal employer,
15as defined in s. 108.02 (23), or by a temporary help company, as defined in s. 108.02
16(24m).
SB14,2,2117 (b) Filing claims. Subject to the limitations provided in this subsection, for
18taxable years beginning after December 31, 2018, a claimant may claim as a credit
19against the tax imposed under s. 71.02 an amount equal to $2,500 for each intern who
20performs works in this state for the claimant during the taxable year and for whom
21the claimant provides compensation to perform such work.
SB14,2,2322 (c) Limitations. 1. No claimant may claim the credit under this subsection for
23more than 40 interns in any taxable year.
SB14,3,624 2. Partnerships, limited liability companies, and tax-option corporations may
25not claim the credit under this subsection, but the eligibility for, and the amount of,

1the credit are based on their payment of amounts described under par. (b). A
2partnership, limited liability company, or tax-option corporation shall compute the
3amount of credit that each of its partners, members, or shareholders may claim and
4shall provide that information to each of them. Partners, members of limited liability
5companies, and shareholders of tax-option corporations may claim the credit in
6proportion to their ownership interests.
SB14,3,87 (d) Administration. 1. Section 71.28 (4) (g) and (h), as it applies to the credit
8under s. 71.28 (4), applies to the credit under this subsection.
SB14,3,149 2. If the allowable amount of the claim under this subsection exceeds the taxes
10otherwise due on the claimant's income under s. 71.02, the amount of the claim that
11is not used to offset those taxes shall be certified by the department of revenue to the
12department of administration for payment by check, share draft, or other draft
13drawn from the appropriation under s. 20.835 (2) (cq). Notwithstanding s. 71.82, no
14interest shall be paid on amounts certified under this subdivision.
SB14,4 15Section 4. 71.10 (4) (i) of the statutes is amended to read:
SB14,4,616 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
17preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
18beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief
19credit under s. 71.07 (3m), dairy manufacturing facility investment credit under s.
2071.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment
21credit under s. 71.07 (3r), woody biomass harvesting and processing credit under s.
2271.07 (3rm), food processing plant and food warehouse investment credit under s.
2371.07 (3rn), business development credit under s. 71.07 (3y), research credit under
24s. 71.07 (4k) (e) 2. a., film production services credit under s. 71.07 (5f), film
25production company investment credit under s. 71.07 (5h), paid intern credit under

1s. 71.07 (5p),
veterans and surviving spouses property tax credit under s. 71.07 (6e),
2enterprise zone jobs credit under s. 71.07 (3w), electronics and information
3technology manufacturing zone credit under s. 71.07 (3wm), beginning farmer and
4farm asset owner tax credit under s. 71.07 (8r), earned income tax credit under s.
571.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch.
6X.
SB14,5 7Section 5. 71.21 (4) (a) of the statutes is amended to read:
SB14,4,118 71.21 (4) (a) The amount of the credits computed by a partnership under s.
971.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w),
10(3wm), (3y), (4k), (4n), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5p), (5r), (5rm), (6n), (8r),
11and (10) and passed through to partners shall be added to the partnership's income.
SB14,6 12Section 6. 71.26 (2) (a) 4. of the statutes is amended to read:
SB14,4,1813 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
14(1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (3wm), (3y), (5e),
15(5f), (5g), (5h), (5i), (5j), (5k), (5p), (5r), (5rm), (6n), (8r), (9s), and (10) and not passed
16through by a partnership, limited liability company, or tax-option corporation that
17has added that amount to the partnership's, limited liability company's, or
18tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
SB14,7 19Section 7. 71.28 (5p) of the statutes is created to read:
SB14,4,2020 71.28 (5p) Paid intern credit. (a) Definitions. In this subsection:
SB14,4,2121 1. “Claimant” means a person who files a claim under this subsection.
SB14,5,222 2. “Intern” means a student or trainee who is employed in this state by the
23claimant for at least 8 weeks, but not more than 52 weeks, not including a migrant
24worker, as defined in s. 103.90 (5), or an individual employed by a seasonal employer,

1as defined in s. 108.02 (23), or by a temporary help company, as defined in s. 108.02
2(24m).
SB14,5,73 (b) Filing claims. Subject to the limitations provided in this subsection, for
4taxable years beginning after December 31, 2018, a claimant may claim as a credit
5against the tax imposed under s. 71.23 an amount equal to $2,500 for each intern who
6performs works in this state for the claimant during the taxable year and for whom
7the claimant provides compensation to perform such work.
SB14,5,98 (c) Limitations. 1. No claimant may claim the credit under this subsection for
9more than 40 interns in any taxable year.
SB14,5,1710 2. Partnerships, limited liability companies, and tax-option corporations may
11not claim the credit under this subsection, but the eligibility for, and the amount of,
12the credit are based on their payment of amounts described under par. (b). A
13partnership, limited liability company, or tax-option corporation shall compute the
14amount of credit that each of its partners, members, or shareholders may claim and
15shall provide that information to each of them. Partners, members of limited liability
16companies, and shareholders of tax-option corporations may claim the credit in
17proportion to their ownership interests.
SB14,5,1918 (d) Administration. 1. Subsection (4) (g) and (h), as it applies to the credit
19under sub. (4), applies to the credit under this subsection.
SB14,5,2520 2. If the allowable amount of the claim under this subsection exceeds the taxes
21otherwise due on the claimant's income under s. 71.23, the amount of the claim that
22is not used to offset those taxes shall be certified by the department of revenue to the
23department of administration for payment by check, share draft, or other draft
24drawn from the appropriation under s. 20.835 (2) (cq). Notwithstanding s. 71.82, no
25interest shall be paid on amounts certified under this subdivision.
SB14,8
1Section 8. 71.30 (3) (f) of the statutes is amended to read:
SB14,6,132 71.30 (3) (f) The total of farmland preservation credit under subch. IX,
3farmland tax relief credit under s. 71.28 (2m), dairy manufacturing facility
4investment credit under s. 71.28 (3p), jobs credit under s. 71.28 (3q), meat processing
5facility investment credit under s. 71.28 (3r), woody biomass harvesting and
6processing credit under s. 71.28 (3rm), food processing plant and food warehouse
7investment credit under s. 71.28 (3rn), enterprise zone jobs credit under s. 71.28
8(3w), electronics and information technology manufacturing zone credit under s.
971.28 (3wm), business development credit under s. 71.28 (3y), research credit under
10s. 71.28 (4) (k) 1., film production services credit under s. 71.28 (5f), film production
11company investment credit under s. 71.28 (5h), paid intern credit under s. 71.28 (5p),
12beginning farmer and farm asset owner tax credit under s. 71.28 (8r), and estimated
13tax payments under s. 71.29.
SB14,9 14Section 9. 71.34 (1k) (g) of the statutes is amended to read:
SB14,6,1815 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
16corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3p), (3q), (3r),
17(3rm), (3rn), (3t), (3w), (3wm), (3y), (4), (5), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5p),
18(5r), (5rm), (6n), (8r), and (10) and passed through to shareholders.
SB14,10 19Section 10. 71.45 (2) (a) 10. of the statutes is amended to read:
SB14,7,220 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
21computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn),
22(3w), (3y), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5p), (5r), (5rm), (6n), (8r), (9s), and (10)
23and not passed through by a partnership, limited liability company, or tax-option
24corporation that has added that amount to the partnership's, limited liability

1company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and
2the amount of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).
SB14,11 3Section 11. 71.47 (5p) of the statutes is created to read:
SB14,7,44 71.47 (5p) Paid intern credit. (a) Definitions. In this subsection:
SB14,7,55 1. “Claimant” means a person who files a claim under this subsection.
SB14,7,106 2. “Intern” means a student or trainee who is employed in this state by the
7claimant for at least 8 weeks, but not more than 52 weeks, not including a migrant
8worker, as defined in s. 103.90 (5), or an individual employed by a seasonal employer,
9as defined in s. 108.02 (23), or by a temporary help company, as defined in s. 108.02
10(24m).
SB14,7,1511 (b) Filing claims. Subject to the limitations provided in this subsection, for
12taxable years beginning after December 31, 2018, a claimant may claim as a credit
13against the tax imposed under s. 71.43 an amount equal to $2,500 for each intern who
14performs works in this state for the claimant during the taxable year and for whom
15the claimant provides compensation to perform such work.
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