SB63: Bill Text

SB63,2,10 71.07 (5r) Postsecondary education credit. (a) Definitions. In this subsection:

SB63,2,13 1. "Claimant" means a sole proprietor, a partner, a member of a limited liability company, or a shareholder of a tax-option corporation who files a claim under this subsection.

SB63,2,15 2. "Course of instruction" means a course of instruction, as defined in s. 38.50 (1) (c), that is approved by the educational approval board under s. 38.50.

SB63,2,16 3. "Family member" has the meaning given in s. 157.061 (7).

SB63,2,19 4. "Managing employee" means an individual who wholly or partially exercises operational or managerial control over, or who directly or indirectly conducts, the operation of the claimant's business.

SB63,2,21 5. "Paid or incurred" includes any amount paid by the claimant to reimburse an individual for the tuition that the individual paid or incurred.

SB63,3,1 6. "Qualified postsecondary institution" means all of the following:

SB63,3,4 a. A University of Wisconsin System institution, a technical college system institution, or a regionally accredited 4-year nonprofit college or university having its regional headquarters and principal place of business in this state.

SB63,3,6 b. A school approved under s. 38.50, if the delivery of education occurs in this state.

SB63,3,9 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02 an amount equal to the following:

SB63,3,12 1. Twenty-five percent of the tuition that the claimant paid or incurred for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a course of instruction.

SB63,3,17 2. Thirty percent of the tuition that the claimant paid or incurred for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a course of instruction that relates to a projected worker shortage in this state, as determined by the local workforce development boards established under 29 USC 2832.

SB63,3,20 (c) Limitations. 1. No credit may be allowed under par. (b) unless the claimant certifies to the department of revenue that the claimant will not be reimbursed for any amount of tuition for which the claimant claims a credit under par. (b).

SB63,3,23 2. A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant excluded under s. 71.05 (6) (b) 28. or under section 127 of the Internal Revenue Code.

SB63,4,3 3. A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant paid or incurred for a family member of the claimant or for a family member of a managing employee unless all of the following apply:

SB63,4,7 a. The family member was employed an average of at least 20 hours per week as an employee of the claimant, or the claimant's business, during the one-year period prior to commencing participation in the education program in connection with which the claimant claims a credit under par. (b).

SB63,4,9 b. The family member is enrolled in a course of instruction that is substantially related to the claimant's business.

SB63,4,13 4. The claimant shall claim the credit for the taxable year in which the individual graduates from a course of instruction in an amount equal to the total amount the claimant paid or incurred under par. (b) for all taxable years in which the claimant paid or incurred such amounts related to that individual.

SB63,4,21 5. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of tuition under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.

SB63,4,23 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB63, s. 3 Section 3. 71.10 (4) (cd) of the statutes is created to read:

SB63,4,25 71.10 (4) (cd) Postsecondary education credit under s. 71.07 (5r).

SB63, s. 4 Section 4. 71.21 (4) of the statutes is amended to read:

SB63,5,5 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3h), (3n), (3p), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and, (5k), and (5r) and passed through to partners shall be added to the partnership's income.

SB63, s. 5 Section 5. 71.26 (2) (a) 4. of the statutes is amended to read:

SB63,5,12 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3g), (3h), (3n), (3p), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and, (5k), and (5r) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, limited liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).

SB63, s. 6 Section 6. 71.28 (5r) of the statutes is created to read:

SB63,5,15 71.28 (5r) Postsecondary education credit. (a) Definitions. In this subsection:

SB63,5,16 1. "Claimant" means a corporation that files a claim under this subsection.

SB63,5,18 2. "Course of instruction" means a course of instruction, as defined in s. 38.50 (1) (c), that is approved by the educational approval board under s. 38.50.

SB63,5,19 3. "Family member" has the meaning given in s. 157.061 (7).

SB63,5,22 4. "Managing employee" means an individual who wholly or partially exercises operational or managerial control over, or who directly or indirectly conducts, the operation of the claimant's business.

SB63,5,24 5. "Paid or incurred" includes any amount paid by the claimant to reimburse an individual for the tuition that the individual paid or incurred.

SB63,5,25 6. "Qualified postsecondary institution" means all of the following:

SB63,6,3 a. A University of Wisconsin System institution, a technical college system institution, or a regionally accredited 4-year nonprofit college or university having its regional headquarters and principal place of business in this state.

SB63,6,5 b. A school approved under s. 38.50, if the delivery of education occurs in this state.

SB63,6,8 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.23 an amount equal to the following:

SB63,6,11 1. Twenty-five percent of the tuition that the claimant paid or incurred for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a course of instruction.

SB63,6,16 2. Thirty percent of the tuition that the claimant paid or incurred for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a course of instruction that relates to a projected worker shortage in this state, as determined by the local workforce development boards established under 29 USC 2832.

SB63,6,19 (c) Limitations. 1. No credit may be allowed under par. (b) unless the claimant certifies to the department of revenue that the claimant will not be reimbursed for any amount of tuition for which the claimant claims a credit under par. (b).

SB63,6,21 2. A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant has excluded under section 127 of the Internal Revenue Code.

SB63,6,24 3. A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant paid or incurred for a family member of a managing employee unless all of the following apply:

SB63,7,4 a. The family member was employed an average of at least 20 hours per week as an employee of the claimant, or the claimant's business, during the one-year period prior to commencing participation in the education program in connection with which the claimant claims a credit under par. (b).

SB63,7,6 b. The family member is enrolled in a course of instruction that is substantially related to the claimant's business.

SB63,7,10 4. The claimant shall claim the credit for the taxable year in which the individual graduates from a course of instruction in an amount equal to the total amount the claimant paid or incurred under par. (b) for all taxable years in which the claimant paid or incurred such amounts related to that individual.

SB63,7,18 5. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of tuition under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.

SB63,7,20 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB63, s. 7 Section 7. 71.30 (3) (cd) of the statutes is created to read:

SB63,7,22 71.30 (3) (cd) Postsecondary education credit under s. 71.28 (5r).

SB63, s. 8 Section 8. 71.34 (1k) (g) of the statutes is amended to read:

SB63,8,2 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g), (3h), (3n), (3p), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and, (5k), and (5r) and passed through to shareholders.

SB63, s. 9 Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:

SB63,8,10 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dx), (3h), (3n), (3p), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and, (5k), and (5r) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, limited liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4), and (5).

SB63, s. 10 Section 10. 71.47 (5r) of the statutes is created to read:

SB63,8,13 71.47 (5r) Postsecondary education credit. (a) Definitions. In this subsection:

SB63,8,14 1. "Claimant" means a corporation that files a claim under this subsection.

SB63,8,16 2. "Course of instruction" means a course of instruction, as defined in s. 38.50 (1) (c), that is approved by the educational approval board under s. 38.50.

SB63,8,17 3. "Family member" has the meaning given in s. 157.061 (7).

SB63,8,20 4. "Managing employee" means an individual who wholly or partially exercises operational or managerial control over, or who directly or indirectly conducts, the operation of the claimant's business.

SB63,8,22 5. "Paid or incurred" includes any amount paid by the claimant to reimburse an individual for the tuition that the individual paid or incurred.

SB63,8,23 6. "Qualified postsecondary institution" means all of the following:

SB63,9,3 a. A University of Wisconsin System institution, a technical college system institution, or a regionally accredited 4-year nonprofit college or university having its regional headquarters and principal place of business in this state.

SB63,9,5 b. A school approved under s. 38.50, if the delivery of education occurs in this state.

SB63,9,8 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.43 an amount equal to the following:

SB63,9,11 1. Twenty-five percent of the tuition that the claimant paid or incurred for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a course of instruction.

SB63,9,16 2. Thirty percent of the tuition that the claimant paid or incurred for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a course of instruction that relates to a projected worker shortage in this state, as determined by the local workforce development boards established under 29 USC 2832.

SB63,9,19 (c) Limitations. 1. No credit maybe allowed under par. (b) unless the claimant certifies to the department of revenue that the claimant will not be reimbursed for any amount of tuition for which the claimant claims a credit under par. (b).

SB63,9,21 2. A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant excluded under section 127 of the Internal Revenue Code.

SB63,9,24 3. A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant paid or incurred for a family member of a managing employee unless all of the following apply:

SB63,10,4 a. The family member was employed an average of at least 20 hours per week as an employee of the claimant, or the claimant's business, during the one-year period prior to commencing participation in the education program in connection with which the claimant claims a credit under par. (b).

SB63,10,6 b. The family member is enrolled in a course of instruction that is substantially related to the claimant's business.

SB63,10,10 4. The claimant shall claim the credit for the taxable year in which the individual graduates from a course of instruction in an amount equal to the total amount the claimant paid or incurred under par. (b) for all taxable years in which the claimant paid or incurred such amounts related to that individual.

SB63,10,18 5. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of tuition under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.

SB63,10,20 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB63, s. 11 Section 11. 71.49 (1) (cd) of the statutes is created to read:

SB63,10,22 71.49 (1) (cd) Postsecondary education credit under s. 71.47 (5r).

SB63, s. 12 Section 12. 77.92 (4) of the statutes is amended to read:

SB63,11,14 77.92 (4) "Net business income," with respect to a partnership, means taxable income as calculated under section 703 of the Internal Revenue Code; plus the items of income and gain under section 702 of the Internal Revenue Code, including taxable state and municipal bond interest and excluding nontaxable interest income or dividend income from federal government obligations; minus the items of loss and deduction under section 702 of the Internal Revenue Code, except items that are not deductible under s. 71.21; plus guaranteed payments to partners under section 707 (c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3h), (3s), (3n), (3p), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and, (5k) , and (5r); and plus or minus, as appropriate, transitional adjustments, depreciation differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain, loss, and deductions from farming. "Net business income," with respect to a natural person, estate, or trust, means profit from a trade or business for federal income tax purposes and includes net income derived as an employee as defined in section 3121 (d) (3) of the Internal Revenue Code.

SB63, s. 13 Section 13. Initial applicability.

SB63,11,16 (1) This act first applies to taxable years beginning on January 1, 2009.

SB63,11,17 (End)