LRB-2108/1
MES:cmh&jlg:lp
1999 - 2000 LEGISLATURE
March 4, 1999 - Introduced by Representatives Black, Powers, Carpenter, Sinicki,
J. Lehman, Ryba, Bock, Hasenohrl, Pocan, Lassa, Meyer, Schooff, Cullen,
Plouff
and Boyle, cosponsored by Senators Robson, Baumgart, Plache,
Risser, Erpenbach
and Clausing. Referred to Committee on Ways and Means.
AB166,1,3 1An Act to amend 71.08 (1) (intro.); and to create 71.07 (6m) and 71.10 (4) (cm)
2of the statutes; relating to: creating a nonrefundable individual income tax
3credit for certain expenses related to child or dependent care.
Analysis by the Legislative Reference Bureau
Under current federal law there is an individual income tax credit for a portion
of qualifying child or dependent care expenses that are paid for the purpose of
enabling a taxpayer to be gainfully employed. An eligible claimant must maintain
a household for a "qualifying individual", which is defined as a dependent under the
age of 13, a disabled spouse or another disabled individual who is a dependent of the
taxpayer. The federal credit is nonrefundable, meaning that no refund is paid if the
amount of the credit exceeds the taxpayer's tax liability. The maximum credit is $720
if the taxpayer has one qualifying individual or $1,440 if the taxpayer has more than
one qualifying individual.
This bill creates a nonrefundable individual income tax credit that is equal to
50% of the amount that is claimed by an individual under this federal credit.
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:
AB166, s. 1
1Section 1. 71.07 (6m) of the statutes is created to read:
AB166,2,32 71.07 (6m) Child and dependent care expenses credit. (a) Definitions. In this
3subsection:
AB166,2,54 1. "Claimant" means an individual who is eligible for, and claims, the federal
5credit.
AB166,2,86 2. "Federal credit" means the federal tax credit, for expenses for household and
7dependent care services necessary for gainful employment, under section 21 of the
8Internal Revenue Code.
AB166,2,129 (b) Filing claims. Subject to the limitations provided in this subsection, a
10claimant may claim as a credit against the tax imposed under s. 71.02, up to the
11amount of those taxes, an amount equal to 50% of the amount of the credit claimed
12by the claimant under the federal credit in the year to which the claim relates.
AB166,2,1413 (c) Limitations. 1. No credit may be allowed under this subsection unless it
14is claimed within the time period under s. 71.75 (2).
AB166,3,215 2. For a claimant who is a nonresident or part-year resident of this state,
16multiply the credit for which the claimant is eligible under par. (b) by a fraction the
17numerator of which is the individual's wages, salary, tips, unearned income and net
18earnings from a trade or business that are taxable by this state and the denominator
19of which is the individual's total wages, salary, tips, unearned income and net
20earnings from a trade or business. In this subdivision, for married persons filing
21separately "wages, salary, tips, unearned income and net earnings from a trade or
22business" means the separate wages, salary, tips, unearned income and net earnings
23from a trade or business of each spouse, and for married persons filing jointly "wages,
24salary, tips, unearned income and net earnings from a trade or business" means the

1total wages, salary, tips, unearned income and net earnings from a trade or business
2of both spouses.
AB166,3,43 (d) Administration. Section 71.07 (9e) (d), to the extent that it applies to the
4credit under that subsection, applies to the credit under this subsection.
AB166, s. 2 5Section 2. 71.08 (1) (intro.) of the statutes is amended to read:
AB166,3,146 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married
7couple filing jointly, trust or estate under s. 71.02, not considering the credits under
8ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3m), (3s), (6),
9(6m)
and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m) and (3) and
1071.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m) and (3) and subchs. VIII
11and IX and payments to other states under s. 71.07 (7), is less than the tax under this
12section, there is imposed on that natural person, married couple filing jointly, trust
13or estate, instead of the tax under s. 71.02, an alternative minimum tax computed
14as follows:
AB166, s. 3 15Section 3. 71.10 (4) (cm) of the statutes is created to read:
AB166,3,1716 71.10 (4) (cm) The child and dependent expenses care credit under s. 71.07
17(6m).
AB166, s. 4 18Section 4. Initial applicability.
AB166,3,2219 (1) This act first applies to taxable years beginning on January 1 of the year
20in which this subsection takes effect, except that if this subsection takes effect after
21July 31, this act first applies to taxable years beginning on January 1 of the year
22following the year in which this subsection takes effect.
AB166,3,2323 (End)
Loading...
Loading...