AB320,4,224 1. The family member was employed an average of at least 20 hours a week as
25an employee of the claimant, or the claimant's business, during the one-year period

1prior to commencing participation in the education program in connection with
2which the claimant claims a credit under par. (b).
AB320,4,43 2. The family member is enrolled in a degree-granting program that is
4substantially related to the claimant's business.
AB320,4,65 3. The family member is making satisfactory progress towards completing the
6degree-granting program under subd. 2.
AB320,4,87 (d) The carry-over provisions of s. 71.28 (4) (e) and (f), as they apply to the credit
8under s. 71.28 (4), apply to the credit under this subsection.
AB320,4,169 (e) Partnerships, limited liability companies, and tax-option corporations may
10not claim the credit under this subsection, but the eligibility for, and the amount of,
11the credit are based on their payment of tuition under par. (b). A partnership, limited
12liability company, or tax-option corporation shall compute the amount of credit that
13each of its partners, members, or shareholders may claim and shall provide that
14information to each of them. Partners, members of limited liability companies, and
15shareholders of tax-option corporations may claim the credit in proportion to their
16ownership interest.
AB320,4,1817 (f) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4),
18applies to the credit under this subsection.
AB320, s. 3 19Section 3. 71.10 (4) (cd) of the statutes is created to read:
AB320,4,2020 71.10 (4) (cd) The education credit under s. 71.07 (5r).
AB320, s. 4 21Section 4. 71.21 (4) of the statutes is amended to read:
AB320,4,2422 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
23(2dj), (2dL), (2ds), (2dx) and, (3s) , and (5r) and passed through to partners shall be
24added to the partnership's income.
AB320, s. 5 25Section 5. 71.26 (2) (a) of the statutes is amended to read:
AB320,5,15
171.26 (2) (a) Corporations in general. The "net income" of a corporation means
2the gross income as computed under the internal revenue code as modified under
3sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
4computed under s. 71.28 (1) and (3) to (5) plus the amount of the credit computed
5under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds) and , (1dx), and (5r) and not passed
6through by a partnership, limited liability company, or tax-option corporation that
7has added that amount to the partnership's, limited liability company's , or
8tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus the amount
9of losses from the sale or other disposition of assets the gain from which would be
10wholly exempt income, as defined in sub. (3) (L), if the assets were sold or otherwise
11disposed of at a gain and minus deductions, as computed under the internal revenue
12code as modified under sub. (3), plus or minus, as appropriate, an amount equal to
13the difference between the federal basis and Wisconsin basis of any asset sold,
14exchanged, abandoned, or otherwise disposed of in a taxable transaction during the
15taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).
AB320, s. 6 16Section 6. 71.28 (5r) of the statutes is created to read:
AB320,5,1717 71.28 (5r) Education credit. (a) In this subsection:
AB320,5,1818 1. "Claimant" means a corporation that files a claim under this subsection.
AB320,5,2019 2. "Degree-granting program" means an education program for which an
20associate, a bachelor's, or a graduate degree is awarded upon successful completion.
AB320,5,2121 3. "Family member" has the meaning given in s. 157.061 (7).
AB320,5,2422 4. "Managing employee" means an individual who wholly or partially exercises
23operational or managerial control over, or who directly or indirectly conducts, the
24operation of the claimant's business.
AB320,5,2525 5. "Poverty line" has the meaning given under s. 49.001 (5).
AB320,6,1
16. "Qualified postsecondary institution" means all of the following:
AB320,6,42 a. A University of Wisconsin System institution, a technical college system
3institution, or a regionally accredited 4-year nonprofit college or university having
4its regional headquarters and principal place of business in this state.
AB320,6,65 b. A school approved under s. 45.54, if the school has a physical presence, and
6the delivery of education occurs, in this state.
AB320,6,87 (b) Subject to the limitations provided in this subsection, a claimant may claim
8as a credit against the tax imposed under s. 71.23 an amount equal to the following:
AB320,6,129 1. Fifty percent of the tuition that the claimant paid or incurred during the
10taxable year for an individual to participate in an education program of a qualified
11postsecondary institution, if the individual was enrolled in a degree-granting
12program.
AB320,6,1813 2. Seventy five percent of the tuition that the claimant paid or incurred during
14the taxable year for an individual to participate in an education program of a
15qualified postsecondary institution, if the individual was enrolled in a
16degree-granting program and if the individual's taxable income in the year prior to
17commencing participation in the education program in connection with which a
18credit is claimed is not more than 185% of the poverty line.
AB320,6,2019 (c) A claimant may not claim the credit under par. (b) for any tuition amounts
20that the claimant has excluded under section 127 of the Internal Revenue Code.
AB320,6,2321 (cm) A claimant may not claim the credit under par. (b) for any tuition amounts
22that the claimant paid or incurred for a family member of a managing employee
23unless all of the following apply:
AB320,7,224 1. The family member was employed an average of at least 20 hours a week as
25an employee of the claimant, or the claimant's business, during the one-year period

1prior to commencing participation in the education program in connection with
2which the claimant claims a credit under par. (b).
AB320,7,43 2. The family member is enrolled in a degree-granting program that is
4substantially related to the claimant's business.
AB320,7,65 3. The family member is making satisfactory progress towards completing the
6degree-granting program under subd. 2.
AB320,7,87 (d) The carry-over provisions of sub. (4) (e) and (f), as they apply to the credit
8under sub. (4), apply to the credit under this subsection.
AB320,7,169 (e) Partnerships, limited liability companies, and tax-option corporations may
10not claim the credit under this subsection, but the eligibility for, and the amount of,
11the credit are based on their payment of tuition under par. (b). A partnership, limited
12liability company, or tax-option corporation shall compute the amount of credit that
13each of its partners, members, or shareholders may claim and shall provide that
14information to each of them. Partners, members of limited liability companies, and
15shareholders of tax-option corporations may claim the credit in proportion to their
16ownership interest.
AB320,7,1817 (f) Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies
18to the credit under this subsection.
AB320, s. 7 19Section 7. 71.30 (3) (dm) of the statutes is created to read:
AB320,7,2020 71.30 (3) (dm) The education credit under s. 71.28 (5r).
AB320, s. 8 21Section 8. 71.34 (1) (g) of the statutes is amended to read:
AB320,7,2422 71.34 (1) (g) An addition shall be made for credits computed by a tax-option
23corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx) and, (3), and
24(5r)
and passed through to shareholders.
AB320, s. 9 25Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:
AB320,8,6
171.45 (2) (a) 10. By adding to federal taxable income the amount of credit
2computed under s. 71.47 (1dd) to (1dx) and (5r) and not passed through by a
3partnership, limited liability company, or tax-option corporation that has added that
4amount to the partnership's, limited liability company's, or tax-option corporation's
5income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under
6s. 71.47 (1), (3), (4), and (5).
AB320, s. 10 7Section 10. 71.47 (5r) of the statutes is created to read:
AB320,8,88 71.47 (5r) Education credit. (a) In this subsection:
AB320,8,99 1. "Claimant" means a corporation that files a claim under this subsection.
AB320,8,1110 2. "Degree-granting program" means an educational program for which an
11associate, a bachelor's, or a graduate degree is awarded upon successful completion.
AB320,8,1212 3. "Family member" has the meaning given in s. 157.061 (7).
AB320,8,1513 4. "Managing employee" means an individual who wholly or partially exercises
14operational or managerial control over, or who directly or indirectly conducts, the
15operation of the claimant's business.
AB320,8,1616 5. "Poverty line" has the meaning given under s. 49.001 (5).
AB320,8,1717 6. "Qualified postsecondary institution" means all of the following:
AB320,8,2018 a. A University of Wisconsin System institution, a technical college system
19institution, or a regionally accredited 4-year nonprofit college or university having
20its regional headquarters and principal place of business in this state.
AB320,8,2221 b. A school approved under s. 45.54, if the school has a physical presence, and
22the delivery of education occurs, in this state.
AB320,8,2423 (b) Subject to the limitations provided in this subsection, a claimant may claim
24as a credit against the tax imposed under s. 71.43 an amount equal to the following:
AB320,9,4
11. Fifty percent of the tuition that the claimant paid or incurred during the
2taxable year for an individual to participate in an education program of a qualified
3postsecondary institution, if the individual was enrolled in a degree-granting
4program.
AB320,9,105 2. Seventy five percent of the tuition that the claimant paid or incurred during
6the taxable year for an individual to participate in an education program of a
7qualified postsecondary institution, if the individual was enrolled in a
8degree-granting program and if the individual's taxable income in the year prior to
9commencing participation in the education program in connection with which a
10credit is claimed is not more than 185% of the poverty line.
AB320,9,1211 (c) A claimant may not claim the credit under par. (b) for any tuition amounts
12that the claimant excluded under section 127 of the Internal Revenue Code.
AB320,9,1513 (cm) A claimant may not claim the credit under par. (b) for any tuition amounts
14that the claimant paid or incurred for a family member of a managing employee
15unless all of the following apply:
AB320,9,1916 1. The family member was employed an average of at least 20 hours a week as
17an employee of the claimant, or the claimant's business, during the one-year period
18prior to commencing participation in the education program in connection with
19which the claimant claims a credit under par. (b).
AB320,9,2120 2. The family member is enrolled in a degree-granting program that is
21substantially related to the claimant's business.
AB320,9,2322 3. The family member is making satisfactory progress towards completing the
23degree-granting program under subd. 2.
AB320,9,2524 (d) The carry-over provisions of s. 71.28 (4) (e) and (f), as they apply to the credit
25under s. 71.28 (4), apply to the credit under this subsection.
AB320,10,8
1(e) Partnerships, limited liability companies, and tax-option corporations may
2not claim the credit under this subsection, but the eligibility for, and the amount of,
3the credit are based on their payment of tuition under par. (b). A partnership, limited
4liability company, or tax-option corporation shall compute the amount of credit that
5each of its partners, members, or shareholders may claim and shall provide that
6information to each of them. Partners, members of limited liability companies, and
7shareholders of tax-option corporations may claim the credit in proportion to their
8ownership interest.
AB320,10,109 (f) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4),
10applies to the credit under this subsection.
AB320, s. 11 11Section 11. 71.49 (1) (dm) of the statutes is created to read:
AB320,10,1212 71.49 (1) (dm) The education credit under s. 71.47 (5r).
AB320, s. 12 13Section 12. 77.92 (4) of the statutes is amended to read:
AB320,11,314 77.92 (4) "Net business income", with respect to a partnership, means taxable
15income as calculated under section 703 of the Internal Revenue Code; plus the items
16of income and gain under section 702 of the Internal Revenue Code, including taxable
17state and municipal bond interest and excluding nontaxable interest income or
18dividend income from federal government obligations; minus the items of loss and
19deduction under section 702 of the Internal Revenue Code, except items that are not
20deductible under s. 71.21; plus guaranteed payments to partners under section 707
21(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
22(2di), (2dj), (2dL), (2dr), (2ds), (2dx) and, (3s), and (5r); and plus or minus, as
23appropriate, transitional adjustments, depreciation differences, and basis
24differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain,
25loss, and deductions from farming. "Net business income", with respect to a natural

1person, estate, or trust, means profit from a trade or business for federal income tax
2purposes and includes net income derived as an employe as defined in section 3121
3(d) (3) of the Internal Revenue Code.
AB320, s. 13 4Section 13. Initial applicability.
AB320,11,85 (1) Education credit. This act first applies to taxable years beginning on
6January 1 of the year in which this subsection takes effect, except that if this
7subsection takes effect after July 31 this act first applies to taxable years beginning
8on January 1 of the year following the year in which this subsection takes effect.
AB320,11,99 (End)
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