Amendment SSA1-SB199

SB199-SSA1, s. 15 Section 15. 71.07 (6n) of the statutes is created to read:

SB199-SSA1,11,3 71.07 (6n) Child and dependent care expenses credit. (a) Definitions. In this subsection:

SB199-SSA1,11,5 1. "Claimant" means an individual who is eligible for, and claims, the federal credit.

SB199-SSA1,11,8 2. "Federal credit" means the federal tax credit, for expenses for household and dependent care services necessary for gainful employment, under section 21 of the Internal Revenue Code.

SB199-SSA1,11,12 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, an amount equal to 50% of the amount of the credit claimed by the claimant under the federal credit in the year to which the claim relates.

SB199-SSA1,11,14 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

SB199-SSA1,12,2 2. For a claimant who is a nonresident or part-year resident of this state, multiply the credit for which the claimant is eligible under par. (b) by a fraction the numerator of which is the individual's wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual's total wages, salary, tips, unearned income and net earnings from a trade or business. In this subdivision, for married persons filing separately "wages, salary, tips, unearned income and net earnings from a trade or business" means the separate wages, salary, tips, unearned income and net earnings from a trade or business of each spouse, and for married persons filing jointly "wages, salary, tips, unearned income and net earnings from a trade or business" means the total wages, salary, tips, unearned income and net earnings from a trade or business of both spouses.

SB199-SSA1,12,4 (d) Administration. Section 71.07 (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

SB199-SSA1, s. 16 Section 16. 71.07 (7g) of the statutes is created to read:

SB199-SSA1,12,6 71.07 (7g) Child care credit. (a) In this subsection:

SB199-SSA1,12,18 1. "Qualified child care expenditures" means any amount that is not used in calculating the credits under subs. (2dd) and (5d) and that is paid to acquire, construct or rehabilitate property that is to be used as part of a qualified child care facility of the claimant, if the property may be depreciated or amortized under this subchapter and if the property is not part of the principal residence of the claimant or any employe of the claimant; any amount paid for the operating costs of a qualified child care facility of the claimant, including costs related to training employes, to scholarship programs and to providing increased compensation to employes who have higher levels of child care training; any amount paid under a contract with a child care facility to provide child care services to employes of the claimant; and any amount paid under a contract to provide child care resource and referral services to employes of the claimant.

SB199-SSA1,13,2 2. "Qualified child care facility" means a facility that is used primarily to provide child care assistance, unless the facility is the operator's principal residence; that is licensed under s. 48.65 or 48.69; that is open to enrollment to the children of the employes of the claimant; that is not the claimant's principal trade or business, unless at least 30% of the enrollees of the facility are the children of the claimant's employes; and that does not discriminate in enrollment in favor of the children of the claimant's highly compensated employes, as defined in section 414 (q) of the Internal Revenue Code.

SB199-SSA1,13,5 (b) A person may claim as a credit against taxes imposed under s. 71.02, up to the amount of those taxes, an amount equal to 5% of that person's qualified child care expenditures, except that the credit may not exceed $15,000 a year.

SB199-SSA1,13,7 (c) Section 71.28 (4) (e) to (h), as it relates to the credit under s. 71.28 (4), relates to the credit under this subsection.

SB199-SSA1, s. 17 Section 17. 71.10 (4) (cn) of the statutes is created to read:

SB199-SSA1,13,9 71.10 (4) (cn) The child and dependent expenses care credit under s. 71.07 (6n).

SB199-SSA1, s. 18 Section 18. 71.10 (4) (cp) of the statutes is created to read:

SB199-SSA1,13,11 71.10 (4) (cp) The day care center credit under s. 71.07 (5d).

SB199-SSA1, s. 19 Section 19. 71.10 (4) (gc) of the statutes is created to read:

SB199-SSA1,13,13 71.10 (4) (gc) The child care credit under s. 71.07 (7g).

SB199-SSA1, s. 20 Section 20. 71.21 (4) of the statutes is amended to read:

SB199-SSA1,13,17 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2ds), (2dx) and, (3s) , (5d) and (7g) and passed through to partners or members shall be added to the partnership's or limited liability company's income.

SB199-SSA1, s. 21 Section 21. 71.26 (2) (a) of the statutes is amended to read:

SB199-SSA1,14,9 71.26 (2) (a) Corporations in general. The "net income" of a corporation means the gross income as computed under the internal revenue code Internal Revenue Code as modified under sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit computed under s. 71.28 (1) and (3) to (5) plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds) and, (1dx), (5d) and (7) and not passed through by a partnership, limited liability company or tax-option corporation that has added that amount to the partnership's, limited liability company's or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from the sale or other disposition of assets the gain from which would be wholly exempt income, as defined in sub. (3) (L), if the assets were sold or otherwise disposed of at a gain and minus deductions, as computed under the internal revenue code Internal Revenue Code as modified under sub. (3), plus or minus, as appropriate, an amount equal to the difference between the federal basis and Wisconsin basis of any asset sold, exchanged, abandoned or otherwise disposed of in a taxable transaction during the taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).

SB199-SSA1, s. 22 Section 22. 71.28 (5d) of the statutes is created to read:

SB199-SSA1,14,11 71.28 (5d) Day care center credit. (a) In this subsection:

SB199-SSA1,14,12 1. "Claimant" means a person who files a claim under this subsection.

SB199-SSA1,14,14 2. "Equipment" means equipment that is depreciable property for income tax or franchise tax purposes.

SB199-SSA1,14,16 (b) A claimant may claim as a credit against the tax imposed under s. 71.23 any of the following:

SB199-SSA1,14,20 1. An amount equal to 50% of the amount paid by the claimant during the taxable year to construct, and purchase equipment for the use at, a licensed day care center under s. 48.65, that is owned and operated by the claimant to care for the children of the claimant's employes during the employes' working hours.

SB199-SSA1,15,2 2. An amount that is equal to the amount paid by the claimant to operate the claimant's day care center, as described under subd. 1., for the taxable year; minus any amount paid by an employe of the claimant to reimburse the claimant for any amount paid by the claimant under this subdivision; multiplied by 50%. A claimant may claim and be allocated a credit under this subdivision regardless of whether the claimant has claimed or been allocated a credit under subd. 1.

SB199-SSA1,15,8 3. An amount that is equal to the amount paid by the claimant during the taxable year to a licensed day care center under s. 48.65, other than a day care center as described under subd. 1., to provide care for the children of the claimant's employes during the employes' working hours; minus any amount paid by an employe of the claimant to reimburse the claimant for any amount paid by the claimant under this subdivision; multiplied by 50%.

SB199-SSA1,15,12 (c) Except as provided in par. (dm), the amount of the credit under this subsection shall not exceed $50,000 in a taxable year for each claimant and the total amount of the credit for all claimants under this subsection and ss. 71.07 (5d) and 71.47 (5d) shall not exceed $1,500,000 in a state fiscal year.

SB199-SSA1,15,21 (d) 1. No credit may be allowed under this subsection unless the claimant files annually an application with the department of revenue on or before March 1 and includes with that application a statement from the department of health and family services that verifies that the day care center under par. (b) is licensed under s. 48.65. A claimant may apply for and be allocated a credit under this subsection before the claimant pays expenses under par. (b), except that, if the claimant does not pay the expenses in the taxable year related to the credit, the claimant shall not receive the credit and the department of revenue may allocate the amount of the credit to another claimant.

SB199-SSA1,16,3 2. After March 1, the department shall allocate randomly the credits under this subsection and ss. 71.07 (5d) and 71.47 (5d). After the department has allocated the credits, the department shall compile a waiting list of claimants who were not allocated credits and shall allocate randomly any unused credits to the claimants on the waiting list. No credit may be allowed under this subsection after the department has awarded the total amount of the credit for all claimants under par. (c).

SB199-SSA1,16,10 (dm) Claimants who jointly construct, equip or operate a licensed day care center may jointly claim the credit as provided under this subsection, if the claimants file a joint application under par. (d) 1. Claimants who file a joint application and who are allocated a credit under par. (b) may apportion the amount of the credit among the joint claimants in any manner that the joint claimants choose, except that the total amount of the credit for the joint claimants shall not exceed $50,000 in a taxable year.

SB199-SSA1,16,12 (e) Subsection (4) (e), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB199-SSA1,16,18 (f) If a credit computed under this subsection is not entirely offset against income or franchise taxes otherwise due, the unused balance may be carried forward and credited against income or franchise taxes otherwise due for the following 5 taxable years to the extent not offset by those taxes otherwise due in all intervening years between the year in which the expense was paid and the year in which the carry-forward credit is claimed.

SB199-SSA1,16,20 (g) A partnership, limited liability company or tax-option corporation may claim the credit under this subsection as an entity.

SB199-SSA1,16,22 (h) Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB199-SSA1,17,3 (i) Except as provided under par. (j), if the operation of a day care center under par. (b) 1. ceases within 5 years after the date on which the construction of the day care center is completed, a claimant who receives credits under par. (b) 1. and 2. for the construction and operation of such a day care center shall add to the claimant's liability for taxes imposed under s. 71.23 an amount equal to the total amount of the credits received under par. (b) 1. and 2. multiplied by the following percentage:

SB199-SSA1,17,5 1. If the operation of the day care center ceases during the first year after the date on which the construction of the day care center is completed, 100%.

SB199-SSA1,17,7 2. If the operation of the day care center ceases during the 2nd year after the date on which the construction of the day care center is completed, 80%.

SB199-SSA1,17,9 3. If the operation of the day care center ceases during the 3rd year after the date on which the construction of the day care center is completed, 60%.

SB199-SSA1,17,11 4. If the operation of the day care center ceases during the 4th year after the date on which the construction of the day care center is completed, 40%.

SB199-SSA1,17,13 5. If the operation of the day care center ceases during the 5th year after the date on which the construction of the day care center is completed, 20%.

SB199-SSA1,17,20 (j) Paragraph (i) does not apply to a claimant whose business ceases operation within 5 years after the date on which the construction of the claimant's day care center is completed; or whose day care center ceases operation for not more than 30 consecutive days in a taxable year; or who presents evidence to the department of revenue that the majority of the claimant's employes with children who are eligible to enroll in the claimant's day center do not want to enroll their children in the claimant's day care center.

SB199-SSA1, s. 23 Section 23. 71.28 (7) of the statutes is created to read:

SB199-SSA1,17,22 71.28 (7) Child care credit. (a) In this subsection:

SB199-SSA1,18,9 1. "Qualified child care expenditures" means any amount that is not used in calculating the credits under subs. (1dd) and (5d) and that is paid to acquire, construct or rehabilitate property that is to be used as part of a qualified child care facility of the claimant, if the property may be depreciated or amortized under this subchapter and if the property is not part of the principal residence of the claimant or any employe of the claimant; any amount paid for the operating costs of a qualified child care facility of the claimant, including costs related to training employes, to scholarship programs and to providing increased compensation to employes who have higher levels of child care training; any amount paid under a contract with a child care facility to provide dependent care services to employes of the claimant; and any amount paid under a contract to provide child care resource and referral services to employes of the claimant.

SB199-SSA1,18,17 2. "Qualified child care facility" means a facility that is used primarily to provide child care assistance, unless the facility is the operator's principal residence; that is licensed under s. 48.65 or 48.69; that is open to enrollment to the children of the employes of the claimant; that is not the claimant's principal trade or business, unless at least 30% of the enrollees of the facility are the children of the claimant's employes; and that does not discriminate in enrollment in favor of the children of the claimant's highly compensated employes, as defined in section 414 (q) of the Internal Revenue Code.

SB199-SSA1,18,20 (b) A person may claim as a credit against taxes imposed under s. 71.23, up to the amount of those taxes, an amount equal to 5% of that person's qualified child care expenditures, except that the credit may not exceed $15,000 a year.

SB199-SSA1,18,22 (c) Subsection (4) (e) to (h), as it relates to the credit under sub. (4), relates to the credit under this subsection.

SB199-SSA1, s. 24 Section 24. 71.30 (3) (dm) of the statutes is created to read:

SB199-SSA1,18,24 71.30 (3) (dm) The day care center credit under s. 71.28 (5d).

SB199-SSA1, s. 25 Section 25. 71.30 (3) (ea) of the statutes is created to read:

SB199-SSA1,19,1 71.30 (3) (ea) The child care credit under s. 71.28 (7).

SB199-SSA1, s. 26 Section 26. 71.34 (1) (g) of the statutes is amended to read:

SB199-SSA1,19,5 71.34 (1) (g) An addition shall be made for credits computed by a tax-option corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx) and, (3), (5d) and (7) and passed through to shareholders.

SB199-SSA1, s. 27 Section 27. 71.45 (2) (a) 10. of the statutes is amended to read:

SB199-SSA1,19,12 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dx), (5d) and (7) and not passed through by a partnership, limited liability company or tax-option corporation that has added that amount to the partnership's, limited liability company's or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under s. 71.47 (1), (3), (4) and (5).

SB199-SSA1, s. 28 Section 28. 71.47 (5d) of the statutes is created to read:

SB199-SSA1,19,14 71.47 (5d) Day care center credit. (a) In this subsection:

SB199-SSA1,19,15 1. "Claimant" means a person who files a claim under this subsection.

SB199-SSA1,19,17 2. "Equipment" means equipment that is depreciable property for income tax or franchise tax purposes.

SB199-SSA1,19,19 (b) A claimant may claim as a credit against the tax imposed under s. 71.43 any of the following:

SB199-SSA1,19,23 1. An amount equal to 50% of the amount paid by the claimant during the taxable year to construct, and purchase equipment for the use at, a licensed day care center under s. 48.65, that is owned and operated by the claimant to care for the children of the claimant's employes during the employes' working hours.

SB199-SSA1,20,4 2. An amount that is equal to the amount paid by the claimant to operate the claimant's day care center, as described under subd. 1., for the taxable year; minus any amount paid by an employe of the claimant to reimburse the claimant for any amount paid by the claimant under this subdivision; multiplied by 50%. A claimant may claim and be allocated a credit under this subdivision regardless of whether the claimant has claimed or been allocated a credit under subd. 1.

SB199-SSA1,20,10 3. An amount that is equal to the amount paid by the claimant during the taxable year to a licensed day care center under s. 48.65, other than a day care center as described under subd. 1., to provide care for the children of the claimant's employes during the employes' working hours; minus any amount paid by an employe of the claimant to reimburse the claimant for any amount paid by the claimant under this subdivision; multiplied by 50%.

SB199-SSA1,20,14 (c) Except as provided in par. (dm), the amount of the credit under this subsection shall not exceed $50,000 in a taxable year for each claimant and the total amount of the credit for all claimants under this subsection and ss. 71.07 (5d) and 71.28 (5d) shall not exceed $1,500,000 in a state fiscal year.

SB199-SSA1,20,23 (d) 1. No credit may be allowed under this subsection unless the claimant files annually an application with the department of revenue on or before March 1 and includes with that application a statement from the department of health and family services that verifies that the day care center under par. (b) is licensed under s. 48.65. A claimant may apply for and be allocated a credit under this subsection before the claimant pays expenses under par. (b), except that, if the claimant does not pay the expenses in the taxable year related to the credit, the claimant shall not receive the credit and the department of revenue may allocate the amount of the credit to another claimant.

SB199-SSA1,21,5 2. After March 1, the department shall allocate randomly the credits under this subsection and ss. 71.07 (5d) and 71.28 (5d). After the department has allocated the credits, the department shall compile a waiting list of claimants who were not allocated credits and shall allocate randomly any unused credits to the claimants on the waiting list. No credit may be allowed under this subsection after the department has awarded the total amount of the credit for all claimants under par. (c).

SB199-SSA1,21,12 (dm) Claimants who jointly construct, equip or operate a licensed day care center may jointly claim the credit as provided under this subsection, if the claimants file a joint application under par. (d) 1. Claimants who file a joint application and who are allocated a credit under par. (b) may apportion the amount of the credit among the joint claimants in any manner that the joint claimants choose, except that the total amount of the credit for the joint claimants shall not exceed $50,000 in a taxable year.

SB199-SSA1,21,14 (e) Section 71.28 (4) (e), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB199-SSA1,21,20 (f) If a credit computed under this subsection is not entirely offset against income or franchise taxes otherwise due, the unused balance may be carried forward and credited against income or franchise taxes otherwise due for the following 5 taxable years to the extent not offset by those taxes otherwise due in all intervening years between the year in which the expense was paid and the year in which the carry-forward credit is claimed.

SB199-SSA1,21,22 (g) A partnership, limited liability company or tax-option corporation may claim the credit under this subsection as an entity.

SB199-SSA1,21,24 (h) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB199-SSA1,22,6 (i) Except as provided under par. (j), if the operation of a day care center under par. (b) 1. ceases within 5 years after the date on which the construction of the day care center is completed, a claimant who receives credits under par. (b) 1. and 2. for the construction and operation of such a day care center shall add to the claimant's liability for taxes imposed under s. 71.43 an amount equal to the total amount of the credits received under par. (b) 1. and 2. multiplied by the following percentage:

SB199-SSA1,22,8 1. If the operation of the day care center ceases during the first year after the date on which the construction of the day care center is completed, 100%.

SB199-SSA1,22,10 2. If the operation of the day care center ceases during the 2nd year after the date on which the construction of the day care center is completed, 80%.

SB199-SSA1,22,12 3. If the operation of the day care center ceases during the 3rd year after the date on which the construction of the day care center is completed, 60%.

SB199-SSA1,22,14 4. If the operation of the day care center ceases during the 4th year after the date on which the construction of the day care center is completed, 40%.

SB199-SSA1,22,16 5. If the operation of the day care center ceases during the 5th year after the date on which the construction of the day care center is completed, 20%.

SB199-SSA1,22,23 (j) Paragraph (i) does not apply to a claimant whose business ceases operation within 5 years after the date on which the construction of the claimant's day care center is completed; or whose day care center ceases operation for not more than 30 consecutive days in a taxable year; or who presents evidence to the department of revenue that the majority of the claimant's employes with children who are eligible to enroll in the claimant's day center do not want to enroll their children in the claimant's day care center.

SB199-SSA1, s. 29 Section 29. 71.47 (7) of the statutes is created to read:

SB199-SSA1,22,25 71.47 (7) Child care credit. (a) In this subsection:

SB199-SSA1,23,12 1. "Qualified child care expenditures" means any amount that is not used in calculating the credits under subs. (1dd) and (5d) and that is paid to acquire, construct or rehabilitate property that is to be used as part of a qualified child care facility of the claimant, if the property may be depreciated or amortized under this subchapter and if the property is not part of the principal residence of the claimant or any employe of the claimant; any amount paid for the operating costs of a qualified child care facility of the claimant, including costs related to training employes, to scholarship programs and to providing increased compensation to employes who have higher levels of child care training; any amount paid under a contract with a child care facility to provide child care services to employes of the claimant; and any amount paid under a contract to provide child care resource and referral services to employes of the claimant.

SB199-SSA1,23,20 2. "Qualified child care facility" means a facility that is used primarily to provide child care assistance, unless the facility is the operator's principal residence; that is licensed under s. 48.65 or 48.69; that is open to enrollment to the children of the employes of the claimant; that is not the claimant's principal trade or business, unless at least 30% of the enrollees of the facility are the children of the claimant's employes; and that does not discriminate in enrollment in favor of the children of the claimant's highly compensated employes, as defined in section 414 (q) of the Internal Revenue Code.

SB199-SSA1,23,23 (b) A person may claim as a credit against taxes imposed under s. 71.43, up to the amount of those taxes, an amount equal to 5% of that person's qualified child care expenditures, except that the credit may not exceed $15,000 a year.