Amendment AA1-ASA1-SB55

SB55-ASA1-AA1,630,14 71.47 (1dx) (b) Credit. (intro.) Except or provided in s. 73.03 (35) and subject to s. 560.785, for any taxable year for which the person is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3) or, 560.797 (4) or 560.798 (3), any person may claim as a credit against taxes imposed on the person's income from the person's business activities in a development zone under this subchapter the following amounts:

SB55-ASA1-AA1, s. 2192g Section 2192g. 71.47 (1dx) (c) of the statutes is amended to read:

SB55-ASA1-AA1,631,2 71.47 (1dx) (c) Credit precluded. If the certification of a person for tax benefits under s. 560.765 (3) or, 560.797 (4) or 560.798 (3) is revoked, or if the person becomes ineligible for tax benefits under s. 560.795 (3), that person may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years and that person may not carry over unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years.

SB55-ASA1-AA1, s. 2192h Section 2192h. 71.47 (1dx) (d) of the statutes is amended to read:

SB55-ASA1-AA1,631,10 71.47 (1dx) (d) Carry-over precluded. If a person who is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3) or, 560.797 (4) or 560.798 (3) for tax benefits ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.".

SB55-ASA1-AA1,631,11 1254. Page 831, line 18: after that line insert:

SB55-ASA1-AA1,631,12 " Section 2193m. 71.47 (5r) of the statutes is created to read:

SB55-ASA1-AA1,631,13 71.47 (5r) Education credit. (a) In this subsection:

SB55-ASA1-AA1,631,14 1. "Claimant" means a corporation that files a claim under this subsection.

SB55-ASA1-AA1,631,16 2. "Degree-granting program" means an educational program for which an associate, a bachelor's, or a graduate degree is awarded upon successful completion.

SB55-ASA1-AA1,631,17 3. "Family member" has the meaning given in s. 157.061 (7).

SB55-ASA1-AA1,631,20 4. "Managing employee" means an individual who wholly or partially exercises operational or managerial control over, or who directly or indirectly conducts, the operation of the claimant's business.

SB55-ASA1-AA1,631,21 5. "Poverty line" has the meaning given under s. 49.001 (5).

SB55-ASA1-AA1,631,22 6. "Qualified postsecondary institution" means all of the following:

SB55-ASA1-AA1,632,3 a. A University of Wisconsin System institution, a technical college system institution, or a regionally accredited 4-year nonprofit college or university having its regional headquarters and principal place of business in this state.

SB55-ASA1-AA1,632,5 b. A school approved under s. 45.54, if the school has a physical presence, and the delivery of education occurs, in this state.

SB55-ASA1-AA1,632,7 (b) Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.43 an amount equal to the following:

SB55-ASA1-AA1,632,11 1. Fifty percent of the tuition that the claimant paid or incurred during the taxable year for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a degree-granting program.

SB55-ASA1-AA1,632,17 2. Seventy five percent of the tuition that the claimant paid or incurred during the taxable year for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a degree-granting program and if the individual's taxable income in the year prior to commencing participation in the education program in connection with which a credit is claimed is not more than 185% of the poverty line.

SB55-ASA1-AA1,632,19 (c) A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant excluded under section 127 of the Internal Revenue Code.

SB55-ASA1-AA1,632,22 (cm) A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant paid or incurred for a family member of a managing employee unless all of the following apply:

SB55-ASA1-AA1,633,2 1. The family member was employed an average of at least 20 hours a week as an employee of the claimant, or the claimant's business, during the one-year period prior to commencing participation in the education program in connection with which the claimant claims a credit under par. (b).

SB55-ASA1-AA1,633,4 2. The family member is enrolled in a degree-granting program that is substantially related to the claimant's business.

SB55-ASA1-AA1,633,6 3. The family member is making satisfactory progress towards completing the degree-granting program under subd. 2.

SB55-ASA1-AA1,633,8 (d) The carry-over provisions of s. 71.28 (4) (e) and (f), as they apply to the credit under s. 71.28 (4), apply to the credit under this subsection.

SB55-ASA1-AA1,633,16 (e) Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of tuition under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.

SB55-ASA1-AA1,633,18 (f) 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.

SB55-ASA1-AA1, s. 2193p Section 2193p. 71.49 (1) (dm) of the statutes is created to read:

SB55-ASA1-AA1,633,20 71.49 (1) (dm) The education credit under s. 71.47 (5r).".

SB55-ASA1-AA1,633,21 1255. Page 831, line 18: after that line insert:

SB55-ASA1-AA1,633,22 " Section 2193e. 71.47 (5d) of the statutes is created to read:

SB55-ASA1-AA1,633,24 71.47 (5d) Industrial, service, and skilled trades apprenticeship credit. (a) In this subsection:

SB55-ASA1-AA1,634,7 1. "Apprentice" means a person who participates in a 2-year to 5-year apprenticeship program, as determined and approved by the department, in which the person receives instruction leading to qualification as a skilled journeyman in any industrial manufacturing trade or private sector service occupation or receives instruction in the construction trades leading to qualification as a skilled journeyman carpenter, including a floor coverer, millwright, or pile driver; laborer; ironworker; or painter, including a taper.

SB55-ASA1-AA1,634,9 2. "Claimant" means a person who files a claim under this subsection and who is a trades trainer, as determined and approved by the department.

SB55-ASA1-AA1,634,10 3. "Department" means the department of workforce development.

SB55-ASA1-AA1,634,18 (b) Subject to the limitations provided in this subsection, for taxable years beginning after June 30, 2003, a claimant may claim as a credit against the taxes imposed under s. 71.43 an amount that is equal to 5% of the wages that the claimant paid to an apprentice in the taxable year, but not to exceed $1,400, except that a claimant may claim as a credit against the taxes imposed under s. 71.43 an amount that is equal to 8% of the wages that the claimant paid to an apprentice in the taxable year in which the apprentice completes an apprenticeship program, but not to exceed $3,000.

SB55-ASA1-AA1,634,22 (c) No claimant may receive a credit under this subsection unless the claimant enters into an agreement with the department permitting the department to post on the department's Internet site the claimant's name and address and the number of apprentices employed by the claimant during the calendar year.

SB55-ASA1-AA1,635,8 (d) This subsection does not apply to taxable years that begin after June 30, 2006, if the number of employers training apprentices in department-approved programs does not increase by more than 40% from July 1, 2003, to June 30, 2006, as determined by the department, except that a claimant who has claimed a credit for an apprentice's wages in any taxable year beginning before July 1, 2006, may continue to claim a credit for the apprentice's wages in succeeding taxable years, until the apprentice completes the apprenticeship program. As soon as practicable after June 30, 2006, the department shall certify to the department of revenue the number of employers training apprentices in approved programs on July 1, 2003, and the number of employers training apprentices in approved programs on June 30, 2006.

SB55-ASA1-AA1,635,10 (e) The carry-over provisions of s. 71.28 (4) (e) and (f), as they apply to the credit under s. 71.28 (4), apply to the credit under this subsection.

SB55-ASA1-AA1,635,18 (f) Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of wages under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

SB55-ASA1-AA1,635,20 (g) 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.

SB55-ASA1-AA1, s. 2193x Section 2193x. 71.49 (1) (dm) of the statutes is created to read:

SB55-ASA1-AA1,635,23 71.49 (1) (dm) Industrial, service, and skilled trades apprenticeship credit under s. 71.47 (5d).".

SB55-ASA1-AA1,635,24 1256. Page 831, line 18: after that line insert:

SB55-ASA1-AA1,636,1 " Section 2193e. 71.47 (5s) of the statutes is created to read:

SB55-ASA1-AA1,636,3 71.47 (5s) Conservation land, conservation easement tax credit. (a) Definitions. In this subsection:

SB55-ASA1-AA1,636,4 1. "Claimant" means a person who files a claim under this subsection.

SB55-ASA1-AA1,636,5 2. "Conservation easement" has the meaning given in s. 700.40 (1) (a).

SB55-ASA1-AA1,636,9 3. "Local governmental unit" means a political subdivision of this state, a special purpose district in this state, an instrumentality or corporation of such a political subdivision or special purpose district, a combination or subunit of any of the foregoing, or an instrumentality of the state and any of the foregoing.

SB55-ASA1-AA1,636,11 4. "Nonprofit conservation organization" has the meaning given in s. 23.0955 (1).

SB55-ASA1-AA1,636,13 5. "Qualified appraisal" means any appraisal meeting the requirements of the regulations prescribed under section 170 (a) (1) of the Internal Revenue Code.

SB55-ASA1-AA1,636,15 6. "Qualified conservation contribution" has the meaning given in section 170 (h) of the Internal Revenue Code.

SB55-ASA1-AA1,636,22 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.43 an amount equal to 50% of the value, based on a qualified appraisal, of property or a conservation easement, to the extent that the property or easement is a qualified conservation contribution, that is donated to the state, a local governmental unit, or a nonprofit conservation organization in the taxable year in which the donation is made or the easement is granted.

SB55-ASA1-AA1,636,24 (c) Limitations. 1. The maximum credit that a claimant may claim under this subsection in a taxable year is $100,000.

SB55-ASA1-AA1,637,2 2. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

SB55-ASA1-AA1,637,6 3. Section 71.28 (4) (e) and (f), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection, except that with regard to the carry-over provisions in s. 71.28 (4) (f) the maximum number of years that the credit under this subsection may be carried forward is 10 years.

SB55-ASA1-AA1,637,14 4. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on the amount calculated under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.

SB55-ASA1-AA1,637,19 (d) Administration. The department of revenue may enforce the credit under this subsection and may take any action, conduct any proceeding, and proceed as it is authorized in respect to taxes under this chapter. The income tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest, and penalties apply to the credit under this subsection.

SB55-ASA1-AA1, s. 2193u Section 2193u. 71.49 (1) (cs) of the statutes is created to read:

SB55-ASA1-AA1,637,22 71.49 (1) (cs) Conservation land, conservation easement tax credit under s. 71.47 (5s).".

SB55-ASA1-AA1,637,23 1257. Page 831, line 23: after that line insert:

SB55-ASA1-AA1,637,24 " Section 2200b. 71.93 (1) (a) 3. of the statutes is amended to read:

SB55-ASA1-AA1,638,3 71.93 (1) (a) 3. An amount that the department of health and family services may recover under s. 49.45 (2) (a) 10. or 49.497, if the department of health and family services has certified the amount under s. 49.85.".

SB55-ASA1-AA1,638,4 1258. Page 831, line 23: after that line insert:

SB55-ASA1-AA1,638,5 " Section 2195t. 71.59 (1m) of the statutes is amended to read:

SB55-ASA1-AA1,638,10 71.59 (1m) Permitted uses. The designation by the department of natural resources fish, wildlife, parks, and forestry of any farmland in this state, for which a claim under this section may be filed, as part of the ice age trail, under s. 23.17, is a permitted use under a farmland preservation agreement, or a certificate of a zoning authority, under sub. (1) (b).".

SB55-ASA1-AA1,638,11 1259. Page 831, line 23: after that line insert:

SB55-ASA1-AA1,638,12 " Section 2195m. 71.52 (6) of the statutes is amended to read:

SB55-ASA1-AA1,640,7 71.52 (6) "Income" means the sum of Wisconsin adjusted gross income and the following amounts, to the extent not included in Wisconsin adjusted gross income: maintenance payments (except foster care maintenance and supplementary payments excludable under section 131 of the internal revenue code), support money, cash public assistance (not including credit granted under this subchapter and amounts under s. 46.27), cash benefits paid by counties under s. 59.53 (21), the gross amount of any pension or annuity (including railroad retirement benefits, all payments received under the federal social security act and veterans disability pensions), nontaxable interest received from the federal government or any of its instrumentalities, nontaxable interest received on state or municipal bonds, worker's compensation, unemployment insurance, the gross amount of "loss of time" insurance, compensation and other cash benefits received from the United States for past or present service in the armed forces, scholarship and fellowship gifts or income, capital gains, gain on the sale of a personal residence excluded under section 121 of the internal revenue code, dividends, income of a nonresident or part-year resident who is married to a full-year resident, housing allowances provided to members of the clergy, the amount by which a resident manager's rent is reduced, nontaxable income of an American Indian, nontaxable income from sources outside this state and nontaxable deferred compensation. Intangible drilling costs, depletion allowances and depreciation, including first-year depreciation allowances under section 179 of the internal revenue code, amortization, contributions to individual retirement accounts under section 219 of the internal revenue code, contributions to Keogh plans, net operating loss carry-forwards and capital loss carry-forwards deducted in determining Wisconsin adjusted gross income shall be added to "income". "Income" does not include gifts from natural persons, cash reimbursement payments made under title XX of the federal social security act, surplus food or other relief in kind supplied by a governmental agency, the gain on the sale of a personal residence deferred under section 1034 of the internal revenue code or nonrecognized gain from involuntary conversions under section 1033 of the internal revenue code. Amounts not included in adjusted gross income but added to "income" under this subsection in a previous year and repaid may be subtracted from income for the year during which they are repaid. Scholarship and fellowship gifts or income that are included in Wisconsin adjusted gross income and that were added to household income for purposes of determining the credit under this subchapter in a previous year may be subtracted from income for the current year in determining the credit under this subchapter. Interest income received from the installment sale of business, farm, or rental real property which includes a claimant's former homestead, up to the amount of interest that is paid by the claimant on a mortgage to purchase another homestead, may be subtracted from income in determining the credit under this subchapter, except that notwithstanding s. 71.58 (7) (a), this provision does not apply to the definition of "income" under s. 71.58 (7). A marital property agreement or unilateral statement under ch. 766 has no effect in computing "income" for a person whose homestead is not the same as the homestead of that person's spouse.".

SB55-ASA1-AA1,640,9 1260. Page 832, line 7: delete the material beginning with that line and ending on page 833, line 16.

SB55-ASA1-AA1,640,10 1261. Page 833, line 16: after that line insert:

SB55-ASA1-AA1,640,11 " Section 2200w. 73.01 (3) (a) of the statutes is amended to read:

SB55-ASA1-AA1,640,17 73.01 (3) (a) The time and place of meetings and hearings of the commission shall be designated by the chairperson. Rooms for hearings outside the city of Madison shall be provided under s. 73.07. All hearings held in Milwaukee shall be held in the southeast district office of the department of natural resources fish, wildlife, parks, and forestry. The commission shall maintain permanent hearing rooms in Madison.".

SB55-ASA1-AA1,640,18 1262. Page 836, line 24: after that line insert:

SB55-ASA1-AA1,640,19 " Section 2206d. 73.0301 (1) (e) of the statutes is amended to read:

SB55-ASA1-AA1,641,3 73.0301 (1) (e) "Licensing department" means the department of administration; the board of commissioners of public lands; the department of commerce; the ethics board; the department of financial institutions; the department of health and family services; the department of natural resources fish, wildlife, parks, and forestry; the department of environmental management; the department of public instruction; the department of regulation and licensing; the department of workforce development; the office of the commissioner of insurance; or the department of transportation.".

SB55-ASA1-AA1,641,4 1263. Page 836, line 24: after that line insert:

SB55-ASA1-AA1,641,5 " Section 2205n. 73.03 (57) of the statutes is created to read:

SB55-ASA1-AA1,641,13 73.03 (57) (1y) To work with the department of natural resources and with the Gathering Waters Conservancy to prepare a report, no later than the first day of the 60th month beginning after the effective date of this subsection .... [revisor inserts date], on the effectiveness of the conservation land, conservation easement tax credit under ss. 71.07 (5s), 71.28 (5), and 71.47 (5s), and to submit the report to the speaker of the assembly and the president of the senate under s. 13.172 (3). The report shall also recommend modifications of the tax credit to encourage conservation donations.".

SB55-ASA1-AA1,641,14 1264. Page 838, line 16: after that line insert:

SB55-ASA1-AA1,641,15 " Section 2222. 74.35 (3) (c) of the statutes is amended to read:

SB55-ASA1-AA1,641,20 74.35 (3) (c) If the governing body of the taxation district determines that an unlawful tax has been paid and that the claim for recovery of the unlawful tax has complied with all legal requirements, the governing body shall allow the claim. The Except as provided in par. (cm), the taxation district treasurer shall pay the claim not later than 90 days after the claim is allowed.

SB55-ASA1-AA1, s. 2223 Section 2223. 74.35 (3) (cm) of the statutes is created to read:

SB55-ASA1-AA1,642,2 74.35 (3) (cm) A municipality may pay a refund under par. (c) of the taxes on property that is assessed under s. 70.995 in 5 annual installments, each of which except the last is equal to at least 20% of the sum of the refund and the interest on the refund, beginning in the year of the determination under par. (c), if all of the following conditions exist:

SB55-ASA1-AA1,642,4 1. The municipality's property tax levy for its general operations for the year for which the taxes to be refunded are due is less than $100,000,000.

SB55-ASA1-AA1,642,6 2. The refund is at least 0.0025% of the municipality's levy for its general operations for the year for which the taxes to be refunded are due.

SB55-ASA1-AA1,642,7 3. The refund is more than $10,000.

SB55-ASA1-AA1, s. 2223d Section 2223d. 74.35 (4) of the statutes is amended to read:

SB55-ASA1-AA1,642,12 74.35 (4) Interest. The amount of a claim filed under sub. (2) or an action commenced under sub. (3) may include interest computed from the date of filing the claim against the taxation district, at the rate of 0.8% per month , except as provided under s. 70.511 (2) (b).