LRB-1112/2
MES:nwn:rs
2011 - 2012 LEGISLATURE
October 4, 2011 - Introduced by Senators Zipperer, Darling and C. Larson,
cosponsored by Representatives
A. Ott, Strachota, Brooks and Honadel.
Referred to Committee on Public Health, Human Services, and Revenue.
SB210,1,3
1An Act to create 71.07 (8m) and 71.10 (4) (cs) of the statutes;
relating to:
2creating a nonrefundable individual income tax credit for certain amounts paid
3for amino acid-based elemental formula.
Analysis by the Legislative Reference Bureau
This bill creates a nonrefundable individual income tax credit for 50 percent of
the amount spent by a claimant for amino acid-based elemental formula. The
formula is a type of hypoallergenic formula that may be recommended by a physician
for use by a child who has a milk allergy and is unable to tolerate soy protein.
The credit may be claimed only for amounts spent to purchase formula, in the
year to which the claim relates, for use by an individual who is claimed as a
dependent on the claimant's federal income tax return, is under 19 years old, and
whose physician certifies in writing that the individual should use such a formula.
The maximum credit amount that a claimant may claim each year for each
dependent is $5,000. The credit may not be claimed for any amount paid by the
claimant that is reimbursable by any person.
Because the credit is nonrefundable, it may be claimed only up to the amount
of a claimant's income tax liability. For claimants who are nonresidents or part-year
residents of Wisconsin, the credit that may be claimed is prorated based on the ratio
of the claimant's Wisconsin adjusted gross income to federal adjusted gross income.
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:
SB210, s. 1
1Section
1. 71.07 (8m) of the statutes is created to read:
SB210,2,32
71.07
(8m) Amino acid-based elemental formula tax credit. (a)
Definitions. 3In this subsection:
SB210,2,44
1. "Claimant" means an individual who files a claim under this subsection.
SB210,2,55
2. "Elemental formula" means an amino acid-based elemental formula.
SB210,2,76
3. "Physician" means a person licensed to practice medicine and surgery under
7ch. 448.
SB210,2,108
4. "Treated individual" means an individual who is a dependent, under section
9151 (c) of the Internal Revenue Code, of a claimant and is under 19 years of age at
10the close of the taxable year to which the claim relates.
SB210,2,1511
(b)
Filing claims. Subject to the limitations provided in this subsection, a
12claimant may claim as a credit against the tax imposed under s. 71.02, up to the
13amount of those taxes, an amount equal to 50 percent of any amount paid for
14elemental formula in the year to which the claim relates if the elemental formula is
15for the use of a treated individual.
SB210,2,1716
(c)
Limitations. 1. The maximum credit that may be claimed each year under
17this subsection by a claimant is $5,000 for each treated individual.
SB210,2,1918
2. No credit may be allowed under this subsection unless it is claimed within
19the time period under s. 71.75 (2).
SB210,2,2120
3. No credit may be allowed under this subsection for an amount paid by a
21claimant if that amount is reimbursable by any person.
SB210,3,3
14. A claimant may claim a credit under this subsection only if a physician
2certifies to the claimant, in writing, that the treated individual should use an
3elemental formula.
SB210,3,114
5. If a part-year resident or a nonresident of this state files a claim under this
5subsection, the maximum credit amount in subd. 1. shall be multiplied by a fraction,
6the numerator of which is the individual's and his or her spouse's Wisconsin adjusted
7gross income and the denominator of which is the individual's and his or her spouse's
8federal adjusted gross income. In this subdivision, for married persons filing
9separately "adjusted gross income" means the separate adjusted gross income of
10each spouse, and for married persons filing jointly "adjusted gross income" means the
11total adjusted gross income of both spouses.
SB210,3,1312
(d)
Administration. Subsection (9e) (d), to the extent that it applies to the credit
13under that subsection, applies to the credit under this subsection.
SB210, s. 2
14Section
2. 71.10 (4) (cs) of the statutes is created to read:
SB210,3,1615
71.10
(4) (cs) Amino acid-based elemental formula tax credit under s. 71.07
16(8m).
SB210,3,2118
(1) This act first applies to taxable years beginning on January 1 of the year
19in which this subsection takes effect, except that if this subsection takes effect on or
20after August 1 this act first applies to taxable years beginning on January 1 of the
21year following the year in which this subsection takes effect.
