AB941,11,43 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
4sub. (4), applies to the credit under this subsection.
AB941, s. 9 5Section 9. 71.30 (3) (dq) of the statutes is created to read:
AB941,11,66 71.30 (3) (dq) Educational improvement credit under s. 71.28 (5n).
AB941, s. 10 7Section 10. 71.34 (1k) (g) of the statutes, as affected by 2009 Wisconsin Act 28,
8is amended to read:
AB941,11,129 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
10corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
11(3), (3g), (3h), (3n), (3p), (3q), (3r), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n),
12and (8r) and passed through to shareholders.
AB941, s. 11 13Section 11. 71.45 (2) (a) 10. of the statutes, as affected by 2009 Wisconsin Act
1428
, is amended to read:
AB941,11,2115 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
16computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3w), (5e), (5f),
17(5g), (5h), (5i), (5j), (5k), (5n), and (8r) and not passed through by a partnership,
18limited liability company, or tax-option corporation that has added that amount to
19the partnership's, limited liability company's, or tax-option corporation's income
20under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47
21(1), (3), (3t), (4), (4m), and (5).
AB941, s. 12 22Section 12. 71.47 (5n) of the statutes is created to read:
AB941,11,2423 71.47 (5n) Educational improvement credit. (a) Definitions. In this
24subsection:
AB941,11,2525 1. "Claimant" means a person who files a claim under this subsection.
AB941,12,1
12. "Contribution" means a donation of cash, personal property, or services.
AB941,12,32 3. "Dependent" means a dependent as defined in section 152 of the Internal
3Revenue Code.
AB941,12,84 4. "Educational improvement organization" means an entity described in
5section 501 (c) (3) of the Internal Revenue Code that is exempt from federal income
6tax under section 501 (a) of the Internal Revenue Code and that spends at least 80
7percent of its annual receipts as grants to public schools for innovative educational
8programs.
AB941,12,99 5. "Eligible pupil" means any pupil to whom all of the following apply:
AB941,12,1010 a. The pupil has not attained the age of 21 or been graduated from high school.
AB941,12,1411 b. At the time the pupil first receives a scholarship from a scholarship-granting
12organization, he or she is a member of a household whose total annual household
13income during the year before the receipt of the scholarship does not exceed an
14amount equal to $40,000 plus $10,000 for each dependent.
AB941,12,1715 6. "Household" means an individual and his or her spouse and dependents who
16all have the same principal abode for more than 6 months during the year to which
17a claim under this subsection relates.
AB941,12,1918 7. "Household income" means all income received by all members of a
19household.
AB941,12,2220 8. "Innovative educational program" means an advanced academic or similar
21program that is not part of the regular academic program of a public school in this
22state, but that enhances the curriculum or academic program of the public school.
AB941,12,2323 9. "Private school" has the meaning given in s. 115.001 (3r).
AB941,12,2524 10. "Qualified school" means any public, private, or other school or program
25that provides elementary or secondary education, including kindergarten.
AB941,13,4
111. "Scholarship-granting organization" means an entity described in section
2501 (c) (3) of the Internal Revenue Code that is exempt from federal income tax under
3section 501 (a) of the Internal Revenue Code and that contributes at least 80 percent
4of its annual receipts to scholarship programs.
AB941,13,65 12. "Scholarship program" means a program to provide tuition for eligible
6students to attend a qualified school in this state.
AB941,13,117 (b) Filing claims. Subject to the limitations provided in this subsection, a
8claimant may claim as a credit against the tax imposed under s. 71.43, up to the
9amount of those taxes, an amount that is equal to 75 percent of any contribution
10made by the claimant during the taxable year to an educational improvement
11organization or to a scholarship-granting organization.
AB941,13,1312 (c) Limitations. 1. The amount of a credit that a claimant may receive under
13this subsection may not exceed $200,000 in a taxable year.
AB941,13,1514 2. The maximum amount of the credits that all claimants may receive under
15this subsection and ss. 71.07 (5n) and 71.28 (5n) in a taxable year is $12,000,000.
AB941,13,1816 3. The total amount of all credits awarded under this subsection and ss. 71.07
17(5n) and 71.28 (5n) for contributions to scholarship-granting organizations shall not
18exceed $30,000,000 for all taxable years.
AB941,13,2119 4. The total amount of all credits awarded under this subsection and ss. 71.07
20(5n) and 71.28 (5n) for contributions to educational improvement organizations shall
21not exceed $20,000,000 for all taxable years.
AB941,14,222 5. No claimant may claim a credit under this subsection unless the claimant
23first files an application for the credit with the department, in the manner prescribed
24by the department. The department shall allocate the credits claimed under this

1subsection and ss. 71.07 (5n) and 71.28 (5n) in the order in which the applications
2for such credits are received.
AB941,14,63 6. For purposes of determining the amount of any credit claimed under this
4subsection, the value of a contribution is equal to the net cost of the claimant's
5donation of cash or personal property or to the proportionate share of any wage paid
6by the claimant that is directly related to donating a service.
AB941,14,147 7. Partnerships, limited liability companies, and tax-option corporations may
8not claim the credit under this subsection, but the eligibility for, and the amount of,
9the credit are based on their payment of amounts under par. (b). A partnership,
10limited liability company, or tax-option corporation shall compute the amount of
11credit that each of its partners, members, or shareholders may claim and shall
12provide that information to each of them. Partners, members of limited liability
13companies, and shareholders of tax-option corporations may claim the credit in
14proportion to their ownership interests.
AB941,14,1615 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
16s. 71.28 (4), applies to the credit under this subsection.
AB941, s. 13 17Section 13. 71.49 (1) (dq) of the statutes is created to read:
AB941,14,1818 71.49 (1) (dq) Educational improvement credit under s. 71.47 (5n).
AB941, s. 14 19Section 14. 77.92 (4) of the statutes, as affected by 2009 Wisconsin Act 28, is
20amended to read:
AB941,15,1121 77.92 (4) "Net business income," with respect to a partnership, means taxable
22income as calculated under section 703 of the Internal Revenue Code; plus the items
23of income and gain under section 702 of the Internal Revenue Code, including taxable
24state and municipal bond interest and excluding nontaxable interest income or
25dividend income from federal government obligations; minus the items of loss and

1deduction under section 702 of the Internal Revenue Code, except items that are not
2deductible under s. 71.21; plus guaranteed payments to partners under section 707
3(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
4(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s),
5(3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), and (8r); and plus or minus, as
6appropriate, transitional adjustments, depreciation differences, and basis
7differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain,
8loss, and deductions from farming. "Net business income," with respect to a natural
9person, estate, or trust, means profit from a trade or business for federal income tax
10purposes and includes net income derived as an employee as defined in section 3121
11(d) (3) of the Internal Revenue Code.
AB941, s. 15 12Section 15. Initial applicability.
AB941,15,1613 (1) This act first applies to taxable years beginning on January 1 of the year
14in which this subsection takes effect, except that if this subsection takes effect after
15July 31 this act first applies to taxable years beginning on January 1 of the year
16following the year in which this subsection takes effect.
AB941,15,1717 (End)
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