September 2011 Special Session
2011 - 2012 LEGISLATURE
October 11, 2011 - Introduced by Committee on Assembly Organization, by request
of Governor Scott Walker, Representative Murtha, Senators Moulton and
Lassa. Referred to Committee on Health.
AB5,1,5 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 (8s), 71.10 (4) (cf), 71.28 (8s), 71.30
3(3) (cf), 71.47 (8s), 71.49 (1) (cf) and 73.16 of the statutes; relating to: an income
4and franchise tax credit for workplace wellness programs, granting
5rule-making authority, and requiring the exercise of rule-making authority.
Analysis by the Legislative Reference Bureau
This bill creates an income and franchise tax credit for workplace wellness
programs. The amount of the credit is equal to 30 percent of the amount that an
employer pays in the taxable year to provide a workplace wellness program to any
of the employer's employees who are employed in this state. A workplace wellness
program is a health or fitness program, as defined by administrative rule by the
Department of Revenue, that is provided with health risk assessments.
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:
AB5, s. 1 6Section 1. 71.05 (6) (a) 15. of the statutes, as affected by 2011 Wisconsin Act
732
, is amended to read:
AB5,2,6
171.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
2(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
3(3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), and (8r),
4and (8s)
and not passed through by a partnership, limited liability company, or
5tax-option corporation that has added that amount to the partnership's, company's,
6or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
AB5, s. 2 7Section 2. 71.07 (8s) of the statutes is created to read:
AB5,2,98 71.07 (8s) Workplace wellness program credit. (a) Definitions. In this
9subsection:
AB5,2,1010 1. "Claimant" means a person who files a claim under this subsection.
AB5,2,1511 2. "Health risk assessment" means a computer-based health-promotion tool
12consisting of a questionnaire; a biometric health screening to measure vital health
13statistics, including blood pressure, cholesterol, glucose, weight, and height; a
14formula for estimating health risks; an advice database; and a means to generate
15reports.
AB5,2,1816 3. "Workplace wellness program" means a health or fitness program certified
17under s. 73.16 (3), and includes health risk assessments and one or more of the
18following programs or services:
AB5,2,1919 a. Smoking cessation.
AB5,2,2020 b. Weight management.
AB5,2,2121 c. Stress management.
AB5,2,2222 d. Worker injury prevention programs.
AB5,2,2323 e. Health screenings.
AB5,2,2424 f. Nutrition education.
AB5,2,2525 g. Health or fitness incentive programs.
AB5,3,1
1h. Vaccinations.
AB5,3,22 i. Employee physical examinations.
AB5,3,93 (b) Filing claims. Subject to the limitations provided in this subsection and s.
473.16, a claimant may claim as a credit against the taxes imposed under s. 71.02, up
5to the amount of those taxes, in each taxable year for 3 years, an amount that is equal
6to 30 percent of the amount that the claimant paid in the taxable year to provide a
7workplace wellness program to any of the claimant's employees who are employed
8in this state, not including any amount paid to acquire, construct, rehabilitate,
9remodel, or repair real property.
AB5,3,1410 (c) Limitations. 1. Except as provided in s. 73.16 (2), the maximum amount
11of the credits that may be claimed under this subsection and ss. 71.28 (8s) and 71.47
12(8s) in any taxable year is $2,500,000 for all claimants who employ 50 or fewer
13employees in the taxable year and $2,500,000 for all claimants who employ more
14than 50 employees in the taxable year.
AB5,3,2215 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.
AB5,3,2423 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
24s. 71.28 (4), applies to the credit under this subsection.
AB5, s. 3 25Section 3. 71.10 (4) (cf) of the statutes is created to read:
AB5,4,1
171.10 (4) (cf) Workplace wellness program credit under s. 71.07 (8s).
AB5, s. 4 2Section 4. 71.21 (4) of the statutes, as affected by 2011 Wisconsin Act 32, is
3amended to read:
AB5,4,74 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
5(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s),
6(3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), and (8r), and (8s) and
7passed through to partners shall be added to the partnership's income.
AB5, s. 5 8Section 5. 71.26 (2) (a) 4. of the statutes, as affected by 2011 Wisconsin Act 32,
9is amended to read:
AB5,4,1610 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
11(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r),
12(3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (8r), (8s),
13and (9s) and not passed through by a partnership, limited liability company, or
14tax-option corporation that has added that amount to the partnership's, limited
15liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k)
16(g).
AB5, s. 6 17Section 6. 71.28 (8s) of the statutes is created to read:
AB5,4,1918 71.28 (8s) Workplace wellness program credit. (a) Definitions. In this
19subsection:
AB5,4,2020 1. "Claimant" means a person who files a claim under this subsection.
AB5,4,2521 2. "Health risk assessment" means a computer-based health-promotion tool
22consisting of a questionnaire; a biometric health screening to measure vital health
23statistics, including blood pressure, cholesterol, glucose, weight, and height; a
24formula for estimating health risks; an advice database; and a means to generate
25reports.
AB5,5,3
13. "Workplace wellness program" means a health or fitness program certified
2under s. 73.16 (3), and includes health risk assessments and one or more of the
3following programs or services:
AB5,5,44 a. Smoking cessation.
AB5,5,55 b. Weight management.
AB5,5,66 c. Stress management.
AB5,5,77 d. Worker injury prevention programs.
AB5,5,88 e. Health screenings.
AB5,5,99 f. Nutrition education.
AB5,5,1010 g. Health or fitness incentive programs.
AB5,5,1111 h. Vaccinations.
AB5,5,1212 i. Employee physical examinations.
AB5,5,1913 (b) Filing claims. Subject to the limitations provided in this subsection and s.
1473.16, a claimant may claim as a credit against the taxes imposed under s. 71.23, up
15to the amount of those taxes, in each taxable year for 3 years, an amount that is equal
16to 30 percent of the amount that the claimant paid in the taxable year to provide a
17workplace wellness program to any of the claimant's employees who are employed
18in this state, not including any amount paid to acquire, construct, rehabilitate,
19remodel, or repair real property.
AB5,5,2420 (c) Limitations. 1. Except as provided in s. 73.16 (2), the maximum amount
21of the credits that may be claimed under this subsection and ss. 71.07 (8s) and 71.47
22(8s) in any taxable year is $2,500,000 for all claimants who employ 50 or fewer
23employees in the taxable year and $2,500,000 for all claimants who employ more
24than 50 employees in the taxable year.
AB5,6,8
12. Partnerships, limited liability companies, and tax-option corporations may
2not claim the credit under this subsection, but the eligibility for, and the amount of,
3the credit are based on their payment of amounts under par. (b). A partnership,
4limited liability company, or tax-option corporation shall compute the amount of
5credit that each of its partners, members, or shareholders may claim and shall
6provide that information to each of them. Partners, members of limited liability
7companies, and shareholders of tax-option corporations may claim the credit in
8proportion to their ownership interests.
AB5,6,109 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
10sub. (4), applies to the credit under this subsection.
AB5, s. 7 11Section 7. 71.30 (3) (cf) of the statutes is created to read:
AB5,6,1212 71.30 (3) (cf) Workplace wellness program credit under s. 71.28 (8s).
AB5, s. 8 13Section 8. 71.34 (1k) (g) of the statutes, as affected by 2011 Wisconsin Act 32,
14is amended to read:
AB5,6,1815 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
16corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
17(3), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j),
18(5k), (5n), (5r), (5rm), and (8r), and (8s) and passed through to shareholders.
AB5, s. 9 19Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2011 Wisconsin Act
2032
, is amended to read:
AB5,7,221 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
22computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn),
23(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (8r), (8s), and (9s) and not
24passed through by a partnership, limited liability company, or tax-option
25corporation that has added that amount to the partnership's, limited liability

1company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and
2the amount of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).
AB5, s. 10 3Section 10. 71.47 (8s) of the statutes is created to read:
AB5,7,54 71.47 (8s) Workplace wellness program credit. (a) Definitions. In this
5subsection:
AB5,7,66 1. "Claimant" means a person who files a claim under this subsection.
AB5,7,117 2. "Health risk assessment" means a computer-based health-promotion tool
8consisting of a questionnaire; a biometric health screening to measure vital health
9statistics, including blood pressure, cholesterol, glucose, weight, and height; a
10formula for estimating health risks; an advice database; and a means to generate
11reports.
AB5,7,1412 3. "Workplace wellness program" means a health or fitness program certified
13under s. 73.16 (3), and includes health risk assessments and one or more of the
14following programs or services:
AB5,7,1515 a. Smoking cessation.
AB5,7,1616 b. Weight management.
AB5,7,1717 c. Stress management.
AB5,7,1818 d. Worker injury prevention programs.
AB5,7,1919 e. Health screenings.
AB5,7,2020 f. Nutrition education.
AB5,7,2121 g. Health or fitness incentive programs.
AB5,7,2222 h. Vaccinations.
AB5,7,2323 i. Employee physical examinations.
AB5,8,524 (b) Filing claims. Subject to the limitations provided in this subsection and s.
2573.16, a claimant may claim as a credit against the taxes imposed under s. 71.43, up

1to the amount of those taxes, in each taxable year for 3 years, an amount that is equal
2to 30 percent of the amount that the claimant paid in the taxable year to provide a
3workplace wellness program to any of the claimant's employees who are employed
4in this state, not including any amount paid to acquire, construct, rehabilitate,
5remodel, or repair real property.
AB5,8,106 (c) Limitations. 1. Except as provided in s. 73.16 (2), the maximum amount
7of the credits that may be claimed under this subsection and ss. 71.07 (8s) and 71.28
8(8s) in any taxable year is $2,500,000 for all claimants who employ 50 or fewer
9employees in the taxable year and $2,500,000 for all claimants who employ more
10than 50 employees in the taxable year.
AB5,8,1811 2. Partnerships, limited liability companies, and tax-option corporations may
12not claim the credit under this subsection, but the eligibility for, and the amount of,
13the credit are based on their payment of amounts under par. (b). A partnership,
14limited liability company, or tax-option corporation shall compute the amount of
15credit that each of its partners, members, or shareholders may claim and shall
16provide that information to each of them. Partners, members of limited liability
17companies, and shareholders of tax-option corporations may claim the credit in
18proportion to their ownership interests.
AB5,8,2019 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
20s. 71.28 (4), applies to the credit under this subsection.
AB5, s. 11 21Section 11. 71.49 (1) (cf) of the statutes is created to read:
AB5,8,2222 71.49 (1) (cf) Workplace wellness program credit under s. 71.47 (8s).
AB5, s. 12 23Section 12. 73.16 of the statutes is created to read:
AB5,9,2 2473.16 Workplace wellness programs. (1) The department of revenue and
25the department of health services shall implement a program to certify workplace

1wellness programs developed by a business or independent provider as described
2under ss. 71.07 (8s), 71.28 (8s), and 71.47 (8s).
AB5,9,13 3(2) If the department of health services certifies a workplace wellness program
4under sub. (1), the department of revenue shall determine the amount of workplace
5wellness program credits to allocate to the business providing the workplace
6wellness program. The total amount of workplace wellness program credits
7allocated to businesses in any year may not exceed $5,000,000. In any year, the
8department of revenue may not allocate more than $2,500,000 in credits to
9businesses with more than 50 employees, and may not allocate more than $2,500,000
10in credits to businesses with 50 or fewer employees, except that the department may
11increase the allocation to businesses with 50 or fewer employees by the amount of
12any credits the department is not able to allocate to businesses with 50 or more
13employees.
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