April 29, 2009 - Introduced by Representatives Fields, A. Williams, Staskunas,
Lothian, Jorgensen, Hilgenberg, Grigsby, Pasch
and Parisi, cosponsored by
Senators Erpenbach and Plale. Referred to Committee on Jobs, the Economy
and Small Business.
AB234,1,4 1An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a) 4., 71.34 (1k) (g), 71.45
2(2) (a) 10. and 77.92 (4); and to create 71.07 (5c), 71.10 (4) (cr), 71.28 (5c), 71.30
3(3) (dr), 71.47 (5c) and 71.49 (1) (cr) of the statutes; relating to: an income and
4franchise tax for hiring certain individuals.
Analysis by the Legislative Reference Bureau
This bill provides income and franchise tax credits for hiring the following
individuals:
1. A veteran who is entitled to compensation for a service-connected disability
and who is a member of a family receiving supplemental nutrition assistance.
2. An ex-felon.
3. An individual who is a vocational rehabilitation referral.
4. An individual who is participating in a program administered by any local
workforce development board in this state.
5. An individual who is at least 16 years of age, but no more than 17 years of
age, who is either a high school student or who graduates from high school during
the taxable year for which a credit is claimed, and who is a member of a family whose
Wisconsin taxable income is no more than 70 percent of the federal poverty line.

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:
AB234, s. 1 1Section 1. 71.05 (6) (a) 15. of the statutes, as affected by 2009 Wisconsin Act
22
, is amended to read:
AB234,2,83 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
4(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3r), (3s), (3t),
5(3w), (5c), (5e), (5f), (5h), (5i), (5j), and (5k) and not passed through by a partnership,
6limited liability company, or tax-option corporation that has added that amount to
7the partnership's, company's, or tax-option corporation's income under s. 71.21 (4)
8or 71.34 (1k) (g).
AB234, s. 2 9Section 2. 71.07 (5c) of the statutes is created to read:
AB234,2,1010 71.07 (5c) Job opportunities credit. (a) Definitions. In this subsection:
AB234,2,1111 1. "Adult employee" means any of the following:
AB234,2,1312a. A qualified veteran, as defined in section 51 (d) (3) of the Internal Revenue
13Code.
AB234,2,1514b. A qualified ex-felon, as defined in section 51 (d) (4) of the Internal Revenue
15Code.
AB234,2,1716 c. An individual who is a vocational rehabilitation referral, as defined in section
1751 (d) (6) of the Internal Revenue Code.
AB234,2,1818 2. "Claimant" means a person who files a claim under this subsection.
AB234,3,319 3. "Youth employee" means an individual who is at least 16 years of age, but
20no more than 17 years of age, who is either a high school student or graduates from
21high school during the taxable year for which a credit is claimed under this

1subsection, and who is a member of a family whose Wisconsin taxable income is no
2more than 70 percent of the federal poverty line, as defined under 42 USC 9902 (2),
3for a family the size of the individual's family.
AB234,3,84 (b) Filing claims. Subject to the limitations provided in this subsection, for
5taxable years beginning after December 31, 2008, a claimant may claim as a credit
6against the taxes imposed under s. 71.02, up to the amount of the taxes, any of the
7following amounts that the claimant paid in the taxable year to an individual whom
8the claimant hired in that taxable year, if the individual is employed in this state:
AB234,3,119 1. For taxable years beginning after December 31, 2008, but before January 1,
102010, 20 percent of the wages that the claimant paid to an adult employee, if the adult
11employee worked at least 400 hours in the taxable year, including paid leave.
AB234,3,1612 2. For taxable years beginning after December 31, 2008, but before January 1,
132010, 20 percent of the wages that the claimant paid to an individual who is
14participating in a program administered by a local workforce development board in
15this state, as established under 29 USC 2832, if the individual worked at least 400
16hours in the taxable year, including paid leave.
AB234,3,1917 3. For taxable years beginning after December 31, 2009, 20 percent of the wages
18that the claimant paid to an adult employee, if the adult employee worked at least
191,560 hours in the taxable year, including paid leave.
AB234,3,2420 4. For taxable years beginning after December 31, 2009, 20 percent of the wages
21that the claimant paid to an individual who is participating in a program
22administered by a local workforce development board in this state, as established
23under 29 USC 2832, if the individual worked at least 1,560 hours in the taxable year,
24including paid leave.
AB234,3,2525 5. Fifty percent of the monthly wages paid to a youth employee.
AB234,4,3
1(c) Limitations. 1. The maximum amount of the credit that a claimant may
2claim under par. (b) 1. and 3. in a taxable year shall not exceed an amount equal
3$2,500 for each adult employee described under par. (b) 1. and 3.
AB234,4,64 2. The maximum amount of the credits that may be claimed by all claimants
5under par. (b) 1. and 3. and ss. 71.28 (5c) (b) 1. and 3. and 71.47 (5c) (b) 1. and 3. in
6a calendar year is $6,000,000.
AB234,4,97 3. The maximum amount of the credit that a claimant may claim under par. (b)
82. and 4. in a taxable year shall not exceed an amount equal $2,000 for each employee
9described under par. (b) 2. and 4.
AB234,4,1210 4. The maximum amount of the credits that may be claimed by all claimants
11under par. (b) 2. and 4. and ss. 71.28 (5c) (b) 2. and 4. and 71.47 (5c) (b) 2. and 4. in
12a calendar year is $3,000,000.
AB234,4,1613 5. If an employee described in par. (b) 1. to 4. works for the claimant for less than
14365 consecutive days, the amount of any credit that the claimant claimed under this
15subsection shall be paid to the department in the manner prescribed by the
16department.
AB234,4,2117 6. The maximum amount of the credit that a claimant may claim under par. (b)
185. in the taxable year for a youth employee who works less than 35 hours a week
19during the taxable year, including paid leave, shall not exceed an amount equal to
20$200 for each such youth employee, multiplied by the number of months that the
21youth employee is employed by the claimant.
AB234,5,222 7. The maximum amount of the credit that a claimant may claim under par. (b)
235. in the taxable year for a youth employee who works 35 hours or more a week during
24the taxable year, including paid leave, shall not exceed an amount equal to $400 for

1each such youth employee, multiplied by the number of months that the youth
2employee is employed by the claimant.
AB234,5,53 8. The maximum amount of the credit that a claimant may claim under par. (b)
45. in a taxable year shall not exceed an amount equal $1,200 for each youth employee
5described under par. (b) 5.
AB234,5,86 9. The maximum amount of the credits that may be claimed by all claimants
7under par. (b) 5. and ss. 71.28 (5c) (b) 5. and 71.47 (5c) (b) 5. in a calendar year is
8$3,000,000.
AB234,5,169 10. 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 amounts under par. (b). A partnership,
12limited liability company, or tax-option corporation shall compute the amount of
13credit that each of its partners, members, or shareholders may claim and shall
14provide that information to each of them. Partners, members of limited liability
15companies, and shareholders of tax-option corporations may claim the credit in
16proportion to their ownership interests.
AB234,5,1817 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
18s. 71.28 (4), applies to the credit under this subsection.
AB234, s. 3 19Section 3. 71.10 (4) (cr) of the statutes is created to read:
AB234,5,2020 71.10 (4) (cr) Job opportunities credit under s. 71.07 (5c).
AB234, s. 4 21Section 4. 71.21 (4) of the statutes, as affected by 2009 Wisconsin Act 2, is
22amended to read:
AB234,6,223 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
24(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3r), (3s), (3t), (3w), (5c),

1(5e), (5f), (5g), (5h), (5i), (5j), and (5k) and passed through to partners shall be added
2to the partnership's income.
AB234, s. 5 3Section 5. 71.26 (2) (a) 4. of the statutes, as affected by 2009 Wisconsin Act 2,
4is amended to read:
AB234,6,105 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
6(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3r), (3t), (3w),
7(5c), (5e), (5f), (5g), (5h), (5i), (5j), and (5k) and not passed through by a partnership,
8limited liability company, or tax-option corporation that has added that amount to
9the partnership's, limited liability company's, or tax-option corporation's income
10under s. 71.21 (4) or 71.34 (1k) (g).
AB234, s. 6 11Section 6. 71.28 (5c) of the statutes is created to read:
AB234,6,1212 71.28 (5c) Job opportunities credit. (a) Definitions. In this subsection:
AB234,6,1313 1. "Adult employee" means any of the following:
AB234,6,1514a. A qualified veteran, as defined in section 51 (d) (3) of the Internal Revenue
15Code.
AB234,6,1716b. A qualified ex-felon, as defined in section 51 (d) (4) of the Internal Revenue
17Code.
AB234,6,1918 c. An individual who is a vocational rehabilitation referral, as defined in section
1951 (d) (6) of the Internal Revenue Code.
AB234,6,2020 2. "Claimant" means a person who files a claim under this subsection.
AB234,7,221 3. "Youth employee" means an individual who is at least 16 years of age, but
22no more than 17 years of age, who is either a high school student or graduates from
23high school during the taxable year for which a credit is claimed under this
24subsection, and who is a member of a family whose Wisconsin taxable income is no

1more than 70 percent of the federal poverty line, as defined under 42 USC 9902 (2),
2for a family the size of the individual's family.
AB234,7,73 (b) Filing claims. Subject to the limitations provided in this subsection, for
4taxable years beginning after December 31, 2008, a claimant may claim as a credit
5against the taxes imposed under s. 71.23, up to the amount of the taxes, any of the
6following amounts that the claimant paid in the taxable year to an individual whom
7the claimant hired in that taxable year, if the individual is employed in this state:
AB234,7,108 1. For taxable years beginning after December 31, 2008, but before January 1,
92010, 20 percent of the wages that the claimant paid to an adult employee, if the adult
10employee worked at least 400 hours in the taxable year, including paid leave.
AB234,7,1511 2. For taxable years beginning after December 31, 2008, but before January 1,
122010, 20 percent of the wages that the claimant paid to an individual who is
13participating in a program administered by a local workforce development board in
14this state, as established under 29 USC 2832, if the individual worked at least 400
15hours in the taxable year, including paid leave.
AB234,7,1816 3. For taxable years beginning after December 31, 2009, 20 percent of the wages
17that the claimant paid to an adult employee, if the adult employee worked at least
181,560 hours in the taxable year, including paid leave.
AB234,7,2319 4. For taxable years beginning after December 31, 2009, 20 percent of the wages
20that the claimant paid to an individual who is participating in a program
21administered by a local workforce development board in this state, as established
22under 29 USC 2832, if the individual worked at least 1,560 hours in the taxable year,
23including paid leave.
AB234,7,2424 5. Fifty percent of the monthly wages paid to a youth employee.
AB234,8,3
1(c) Limitations. 1. The maximum amount of the credit that a claimant may
2claim under par. (b) 1. and 3. in a taxable year shall not exceed an amount equal
3$2,500 for each adult employee described under par. (b) 1. and 3.
AB234,8,64 2. The maximum amount of the credits that may be claimed by all claimants
5under par. (b) 1. and 3. and ss. 71.07 (5c) (b) 1. and 3. and 71.47 (5c) (b) 1. and 3. in
6a calendar year is $6,000,000.
AB234,8,97 3. The maximum amount of the credit that a claimant may claim under par. (b)
82. and 4. in a taxable year shall not exceed an amount equal $2,000 for each employee
9described under par. (b) 2. and 4.
AB234,8,1210 4. The maximum amount of the credits that may be claimed by all claimants
11under par. (b) 2. and 4. and ss. 71.07 (5c) (b) 2. and 4. and 71.47 (5c) (b) 2. and 4. in
12a calendar year is $3,000,000.
AB234,8,1613 5. If an employee described in par. (b) 1. to 4. works for the claimant for less than
14365 consecutive days, the amount of any credit that the claimant claimed under this
15subsection shall be paid to the department in the manner prescribed by the
16department.
AB234,8,2117 6. The maximum amount of the credit that a claimant may claim under par. (b)
185. in the taxable year for a youth employee who works less than 35 hours a week
19during the taxable, including paid leave, year shall not exceed an amount equal to
20$200 for each such youth employee, multiplied by the number of months that the
21youth employee is employed by the claimant.
AB234,9,222 7. The maximum amount of the credit that a claimant may claim under par. (b)
235. in the taxable year for a youth employee who works 35 hours or more a week during
24the taxable year, including paid leave, shall not exceed an amount equal to $400 for

1each such youth employee, multiplied by the number of months that the youth
2employee is employed by the claimant.
AB234,9,53 8. The maximum amount of the credit that a claimant may claim under par. (b)
45. in a taxable year shall not exceed an amount equal $1,200 for each youth employee
5described under par. (b) 5.
AB234,9,86 9. The maximum amount of the credits that may be claimed by all claimants
7under par. (b) 5. and ss. 71.07 (5c) (b) 5. and 71.47 (5c) (b) 5. in a calendar year is
8$3,000,000.
AB234,9,169 10. 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 amounts under par. (b). A partnership,
12limited liability company, or tax-option corporation shall compute the amount of
13credit that each of its partners, members, or shareholders may claim and shall
14provide that information to each of them. Partners, members of limited liability
15companies, and shareholders of tax-option corporations may claim the credit in
16proportion to their ownership interests.
AB234,9,1817 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
18sub. (4), applies to the credit under this subsection.
AB234, s. 7 19Section 7. 71.30 (3) (dr) of the statutes is created to read:
AB234,9,2020 71.30 (3) (dr) Job opportunities credit under s. 71.28 (5c).
AB234, s. 8 21Section 8. 71.34 (1k) (g) of the statutes, as affected by 2009 Wisconsin Act 2,
22is amended to read:
AB234,9,2423 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
24corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),

1(3), (3g), (3h), (3n), (3p), (3r), (3t), (3w), (5c), (5e), (5f), (5g), (5h), (5i), (5j), and (5k) and
2passed through to shareholders.
AB234, s. 9 3Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2009 Wisconsin Act
42
, is amended to read:
AB234,10,115 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
6computed under s. 71.47 (1dd) to (1dy), (3h), (3n), (3p), (3r), (3w), (5c), (5e), (5f), (5g),
7(5h), (5i), (5j), and (5k) and not passed through by a partnership, limited liability
8company, or tax-option corporation that has added that amount to the partnership's,
9limited liability company's, or tax-option corporation's income under s. 71.21 (4) or
1071.34 (1k) (g) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4), and
11(5).
AB234, s. 10 12Section 10. 71.47 (5c) of the statutes is created to read:
AB234,10,1313 71.47 (5c) Job opportunities credit. (a) Definitions. In this subsection:
AB234,10,1414 1. "Adult employee" means any of the following:
AB234,10,1615a. A qualified veteran, as defined in section 51 (d) (3) of the Internal Revenue
16Code.
AB234,10,1817b. A qualified ex-felon, as defined in section 51 (d) (4) of the Internal Revenue
18Code.
AB234,10,2019 c. An individual who is a vocational rehabilitation referral, as defined in section
2051 (d) (6) of the Internal Revenue Code.
AB234,10,2121 2. "Claimant" means a person who files a claim under this subsection.
AB234,11,222 3. "Youth employee" means an individual who is at least 16 years of age, but
23no more than 17 years of age, who is either a high school student or graduates from
24high school during the taxable year for which a credit is claimed under this
25subsection, and who is a member of a family whose Wisconsin taxable income is no

1more than 70 percent of the federal poverty line, as defined under 42 USC 9902 (2),
2for a family the size of the individual's family.
AB234,11,73 (b) Filing claims. Subject to the limitations provided in this subsection, for
4taxable years beginning after December 31, 2008, a claimant may claim as a credit
5against the taxes imposed under s. 71.43, up to the amount of the taxes, any of the
6following amounts that the claimant paid in the taxable year to an individual whom
7the claimant hired in that taxable year, if the individual is employed in this state:
Loading...
Loading...