2005 - 2006 LEGISLATURE
January 30, 2006 - Introduced by Representatives Moulton, Davis, Nischke,
Musser, Townsend, Mursau, Krawczyk, Albers, Kreibich, Underheim
and F.
Lasee
, cosponsored by Senators Roessler and Zien. Referred to Committee on
Ways and Means.
AB955,1,5 1An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a), 71.34 (1) (g), 71.45 (2)
2(a) 10. and 77.92 (4); and to create 71.07 (5e), 71.10 (4) (gxx), 71.28 (5e), 71.30
3(3) (epa), 71.47 (5e) and 71.49 (1) (epa) of the statutes; relating to: an income
4and franchise tax credit for information technology equipment used to
5maintain medical records in electronic form.
Analysis by the Legislative Reference Bureau
This bill creates an income and franchise tax credit for health care providers in
an amount that is equal to the amount that the health care provider paid in the
taxable year for information technology hardware or software that is used to
maintain medical records in electronic form.
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:
AB955, s. 1 6Section 1. 71.05 (6) (a) 15. of the statutes is amended to read:
AB955,2,37 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
8(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3n), (3s), (3t), (5b), and (5d), (5e),

1and (5g)
and not passed through by a partnership, limited liability company, or
2tax-option corporation that has added that amount to the partnership's, company's,
3or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).
AB955, s. 2 4Section 2. 71.07 (5e) of the statutes is created to read:
AB955,2,65 71.07 (5e) Electronic medical records credit. (a) Definitions. In this
6subsection, "claimant" means a person who files a claim under this subsection.
AB955,2,127 (b) Filing claims. Subject to the limitations provided in this subsection, a
8claimant may claim as a credit against the taxes imposed under s. 71.02, up to the
9amount of those taxes, an amount equal to the amount the claimant paid in the
10taxable year for information technology hardware or software that is used to
11maintain medical records in electronic form, if the claimant is a health care provider,
12as defined in s. 146.81 (1).
AB955,2,1513 (c) Limitations. 1. The maximum amount of the credits that may be claimed
14under this subsection and ss. 71.28 (5e) and 71.47 (5e) in a taxable year is
15$10,000,000.
AB955,2,2316 2. Partnerships, limited liability companies, and tax-option corporations may
17not claim the credit under this subsection, but the eligibility for, and the amount of,
18the credit are based on their payment of amounts under par. (b). A partnership,
19limited liability company, or tax-option corporation shall compute the amount of
20credit that each of its partners, members, or shareholders may claim and shall
21provide that information to each of them. Partners, members of limited liability
22companies, and shareholders of tax-option corporations may claim the credit in
23proportion to their ownership interests.
AB955,2,2524 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
25s. 71.28 (4), applies to the credit under this subsection.
AB955, s. 3
1Section 3. 71.10 (4) (gxx) of the statutes is created to read:
AB955,3,22 71.10 (4) (gxx) Electronic medical records credit under s. 71.07 (5e).
AB955, s. 4 3Section 4. 71.21 (4) of the statutes, as affected by 2005 Wisconsin Act 74, is
4amended to read:
AB955,3,75 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
6(2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3n), (3s), (3t), (5b), (5e), and (5g) and passed
7through to partners shall be added to the partnership's income.
AB955, s. 5 8Section 5. 71.26 (2) (a) of the statutes, as affected by 2005 Wisconsin Act 74,
9is amended to read:
AB955,4,210 71.26 (2) (a) Corporations in general. The "net income" of a corporation means
11the gross income as computed under the Internal Revenue Code as modified under
12sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
13computed under s. 71.28 (1), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c)
147., the amount of the credit under s. 71.28 (3) that the taxpayer added to income
15under this paragraph at the time that the taxpayer first claimed the credit plus the
16amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm),
17(1ds), (1dx), (3g), (3n), (3t), (5b), (5e), and (5g) and not passed through by a
18partnership, limited liability company, or tax-option corporation that has added that
19amount to the partnership's, limited liability company's, or tax-option corporation's
20income under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from the sale or
21other disposition of assets the gain from which would be wholly exempt income, as
22defined in sub. (3) (L), if the assets were sold or otherwise disposed of at a gain and
23minus deductions, as computed under the Internal Revenue Code as modified under
24sub. (3), plus or minus, as appropriate, an amount equal to the difference between
25the federal basis and Wisconsin basis of any asset sold, exchanged, abandoned, or

1otherwise disposed of in a taxable transaction during the taxable year, except as
2provided in par. (b) and s. 71.45 (2) and (5).
AB955, s. 6 3Section 6. 71.28 (5e) of the statutes is created to read:
AB955,4,54 71.28 (5e) Electronic medical records credit. (a) Definitions. In this
5subsection, "claimant" means a person who files a claim under this subsection.
AB955,4,116 (b) Filing claims. Subject to the limitations provided in this subsection, a
7claimant may claim as a credit against the taxes imposed under s. 71.23, up to the
8amount of those taxes, an amount equal to the amount the claimant paid in the
9taxable year for information technology hardware or software that is used to
10maintain medical records in electronic form, if the claimant is a health care provider,
11as defined in s. 146.81 (1).
AB955,4,1412 (c) Limitations. 1. The maximum amount of the credits that may be claimed
13under this subsection and ss. 71.07 (5e) and 71.47 (5e) in a taxable year is
14$10,000,000.
AB955,4,2215 2. Partnerships, limited liability companies, and tax-option corporations may
16not claim the credit under this subsection, but the eligibility for, and the amount of,
17the credit are based on their payment of amounts under par. (b). A partnership,
18limited liability company, or tax-option corporation shall compute the amount of
19credit that each of its partners, members, or shareholders may claim and shall
20provide that information to each of them. Partners, members of limited liability
21companies, and shareholders of tax-option corporations may claim the credit in
22proportion to their ownership interests.
AB955,4,2423 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
24sub. (4), applies to the credit under this subsection.
AB955, s. 7 25Section 7. 71.30 (3) (epa) of the statutes is created to read:
AB955,5,1
171.30 (3) (epa) Electronic medical records credit under s. 71.28 (5e).
AB955, s. 8 2Section 8. 71.34 (1) (g) of the statutes, as affected by 2005 Wisconsin Act 74,
3is amended to read:
AB955,5,64 71.34 (1) (g) An addition shall be made for credits computed by a tax-option
5corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g),
6(3n), (3t), (5b), (5e), and (5g) and passed through to shareholders.
AB955, s. 9 7Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2005 Wisconsin Act
874
, is amended to read:
AB955,5,149 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
10computed under s. 71.47 (1dd) to (1dx), (3n), (5b), (5e), and (5g) and not passed
11through by a partnership, limited liability company, or tax-option corporation that
12has added that amount to the partnership's, limited liability company's, or
13tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) and the amount of
14credit computed under s. 71.47 (1), (3), (3t), (4), and (5).
AB955, s. 10 15Section 10. 71.47 (5e) of the statutes is created to read:
AB955,5,1716 71.47 (5e) Electronic medical records credit. (a) Definitions. In this
17subsection, "claimant" means a person who files a claim under this subsection.
AB955,5,2318 (b) Filing claims. Subject to the limitations provided in this subsection, a
19claimant may claim as a credit against the taxes imposed under s. 71.43, up to the
20amount of those taxes, an amount equal to the amount the claimant paid in the
21taxable year for information technology hardware or software that is used to
22maintain medical records in electronic form, if the claimant is a health care provider,
23as defined in s. 146.81 (1).
AB955,6,3
1(c) Limitations. 1. The maximum amount of the credits that may be claimed
2under this subsection and ss. 71.07 (5e) and 71.28 (5e) in a taxable year is
3$10,000,000.
AB955,6,114 2. Partnerships, limited liability companies, and tax-option corporations may
5not claim the credit under this subsection, but the eligibility for, and the amount of,
6the credit are based on their payment of amounts under par. (b). A partnership,
7limited liability company, or tax-option corporation shall compute the amount of
8credit that each of its partners, members, or shareholders may claim and shall
9provide that information to each of them. Partners, members of limited liability
10companies, and shareholders of tax-option corporations may claim the credit in
11proportion to their ownership interests.
AB955,6,1312 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
13s. 71.28 (4), applies to the credit under this subsection.
AB955, s. 11 14Section 11. 71.49 (1) (epa) of the statutes is created to read:
AB955,6,1515 71.49 (1) (epa) Electronic medical records credit under s. 71.47 (5e).
AB955, s. 12 16Section 12. 77.92 (4) of the statutes, as affected by 2005 Wisconsin Act 74, is
17amended to read:
AB955,7,718 77.92 (4) "Net business income," with respect to a partnership, means taxable
19income as calculated under section 703 of the Internal Revenue Code; plus the items
20of income and gain under section 702 of the Internal Revenue Code, including taxable
21state and municipal bond interest and excluding nontaxable interest income or
22dividend income from federal government obligations; minus the items of loss and
23deduction under section 702 of the Internal Revenue Code, except items that are not
24deductible under s. 71.21; plus guaranteed payments to partners under section 707
25(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),

1(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3s), (3n), (3t), (5b), (5e), and (5g);
2and plus or minus, as appropriate, transitional adjustments, depreciation
3differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but
4excluding income, gain, loss, and deductions from farming. "Net business income,"
5with respect to a natural person, estate, or trust, means profit from a trade or
6business for federal income tax purposes and includes net income derived as an
7employee as defined in section 3121 (d) (3) of the Internal Revenue Code.
AB955, s. 13 8Section 13. Initial applicability.
AB955,7,99 (1) This act first applies to taxable years beginning on January 1, 2008.
AB955,7,1010 (End)
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