LRB-1127/1
MES:cmh&kg:jf
1999 - 2000 LEGISLATURE
February 2, 1999 - Introduced by Representatives Musser, Hasenohrl, Powers,
Owens, Plale, Pettis, Freese, Turner, F. Lasee, Hahn, Gunderson, Albers,
Goetsch, Porter and
Kreibich, cosponsored by Senators Wirch, Breske,
Clausing, Drzewiecki and Roessler. Referred to Committee on Veterans and
Military Affairs.
AB81,1,5
1An Act to amend 71.05 (6) (a) 15., 71.08 (1) (intro.), 71.10 (4) (i), 71.21 (4), 71.26
2(2) (a), 71.30 (3) (f), 71.34 (1) (g), 71.45 (2) (a) 10., 71.49 (1) (f) and 77.92 (4); and
3to create 20.835 (2) (a), 71.07 (5dv), 71.28 (5dv) and 71.47 (5dv) of the statutes;
4relating to: creating an income tax credit and franchise tax credit for hiring
5disabled veterans and making an appropriation.
Analysis by the Legislative Reference Bureau
This bill creates an income tax and franchise tax credit for businesses that hire
disabled veterans. Sole proprietorships, corporations and insurers may claim the
credit. Partnerships, limited liability companies and tax-option corporations
compute the credit but pass it on to the partners, members and shareholders in
proportion to their ownership interests. The credit, in respect to each disabled
veteran who is hired after the bill becomes law, is the veteran's percentage of
disability multiplied by the wages or salary paid to the veteran. The credit is
refundable (a check will be issued by the state if the credit exceeds the business' tax
liability). The credit is added to the taxpayer's income so that the taxpayer does not
get both a business expense deduction and a credit for the wages and salaries paid.
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:
AB81, s. 1
1Section
1. 20.835 (2) (a) of the statutes is created to read:
AB81,2,32
20.835
(2) (a)
Disabled veterans hiring credit. A sum sufficient to make the
3payments under ss. 71.07 (5dv) (c), 71.28 (5dv) (c) and 71.47 (5dv) (c).
AB81, s. 2
4Section
2. 71.05 (6) (a) 15. of the statutes is amended to read:
AB81,2,95
71.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
6(2di), (2dj), (2dL), (2dr), (2ds), (2dx)
and, (3s)
and (5dv) and not passed through by
7a partnership, limited liability company or tax-option corporation that has added
8that amount to the partnership's, company's or tax-option corporation's income
9under s. 71.21 (4) or 71.34 (1) (g).
AB81, s. 3
10Section
3. 71.07 (5dv) of the statutes is created to read:
AB81,2,1111
71.07
(5dv) Disabled veterans hiring credit. (a) In this subsection:
AB81,2,1212
1. "Claimant" means a person who files a claim under this subsection.
AB81,2,1413
2. "Disabled veteran" means a person who is eligible for compensation under
1438 USC 310.
AB81,2,1615
3. "Percentage of disability" means the percentage determined under
38 USC
16314 (a) to (j).
AB81,2,1817
(b) Subject to the limitations provided in this subsection, a claimant may claim
18as a credit against the tax imposed under s. 71.02 an amount calculated as follows:
AB81,2,2019
1. For each disabled veteran whom the claimant hires after the effective date
20of this subdivision .... [revisor inserts date], determine the wages and salary paid.
AB81,3,2
12. Multiply the amount under subd. 1. by the disabled veteran's percentage of
2disability.
AB81,3,33
3. Add the amounts under subd. 2. for all disabled veterans.
AB81,3,84
(c) If the allowable amount of the claim under this subsection exceeds the
5income taxes otherwise due on the claimant's income, the amount of the claim that
6is not used to offset those taxes shall be certified by the department of revenue to the
7department of administration for payment by check, share draft or other draft drawn
8from the appropriation under s. 20.835 (2) (a).
AB81,3,169
(d) 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 is based on their payment of wages and salaries. A partnership, limited
12liability company or corporation shall compute the amount of credit that each of its
13partners, members or shareholders may claim and shall provide that information to
14each of them. Partners, members of limited liability companies and shareholders of
15tax-option corporations may claim the credit in proportion to their ownership
16interest.
AB81,3,1817
(e) Section 71.28 (4) (g) and (h) as it relates to the credit under s. 71.28 (4)
18relates to the credit under this subsection.
AB81, s. 4
19Section
4. 71.08 (1) (intro.) of the statutes is amended to read:
AB81,4,320
71.08
(1) Imposition. (intro.) If the tax imposed on a natural person, married
21couple filing jointly, trust or estate under s. 71.02, not considering the credits under
22ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3m), (3s),
(5dv), 23(6) and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m)
and, (3)
and
24(5dv) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m)
and, (3)
and
25(5dv) and subchs. VIII and IX and payments to other states under s. 71.07 (7), is less
1than the tax under this section, there is imposed on that natural person, married
2couple filing jointly, trust or estate, instead of the tax under s. 71.02, an alternative
3minimum tax computed as follows:
AB81, s. 5
4Section
5. 71.10 (4) (i) of the statutes is amended to read:
AB81,4,105
71.10
(4) (i) The total of claim of right credit under s. 71.07 (1), farmland
6preservation credit under subch. IX, homestead credit under subch. VIII, farmland
7tax relief credit under s. 71.07 (3m), farmers' drought property tax credit under s.
871.07 (2fd), earned income tax credit under s. 71.07 (9e),
disabled veterans hiring
9credit under s. 71.07 (5dv), estimated tax payments under s. 71.09, and taxes
10withheld under subch. X.
AB81, s. 6
11Section
6. 71.21 (4) of the statutes is amended to read:
AB81,4,1412
71.21
(4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
13(2dj), (2dL), (2ds), (2dx)
and, (3s)
and (5dv) and passed through to partners shall be
14added to the partnership's income.
AB81, s. 7
15Section
7. 71.26 (2) (a) of the statutes is amended to read:
AB81,5,516
71.26
(2) (a)
Corporations in general. The "net income" of a corporation means
17the gross income as computed under the internal revenue code as modified under
18sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
19computed under s. 71.28 (1) and (3) to (5) plus the amount of the credit computed
20under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds)
and
, (1dx)
and (5dv) and not
21passed through by a partnership, limited liability company or tax-option corporation
22that has added that amount to the partnership's, limited liability company's or
23tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus the amount
24of losses from the sale or other disposition of assets the gain from which would be
25wholly exempt income, as defined in sub. (3) (L), if the assets were sold or otherwise
1disposed of at a gain and minus deductions, as computed under the internal revenue
2code as modified under sub. (3), plus or minus, as appropriate, an amount equal to
3the difference between the federal basis and Wisconsin basis of any asset sold,
4exchanged, abandoned or otherwise disposed of in a taxable transaction during the
5taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).
AB81, s. 8
6Section
8. 71.28 (5dv) of the statutes is created to read:
AB81,5,77
71.28
(5dv) Disabled veterans hiring credit. (a) In this subsection:
AB81,5,88
1. "Claimant" means a person who files a claim under this subsection.
AB81,5,109
2. "Disabled veteran" means a person who is eligible for compensation under
1038 USC 310.
AB81,5,1211
3. "Percentage of disability" means the percentage determined under
38 USC
12314 (a) to (j).
AB81,5,1413
(b) Subject to the limitations provided in this subsection, a claimant may claim
14as a credit against the taxes imposed under s. 71.23 an amount calculated as follows:
AB81,5,1615
1. For each disabled veteran whom the claimant hires after the effective date
16of this subdivision .... [revisor inserts date], determine the wages and salary paid.
AB81,5,1817
2. Multiply the amount under subd. 1. by the disabled veteran's percentage of
18disability.
AB81,5,1919
3. Add the amounts under subd. 2. for all disabled veterans.
AB81,5,2420
(c) If the allowable amount of the claim under this subsection exceeds the
21amount of taxes otherwise due under this subchapter, the allowable amount of the
22claim that is not used to offset taxes shall be certified by the department of revenue
23to the department of administration for payment by check, share draft or other draft
24drawn from the appropriation under s. 20.835 (2) (a).
AB81,6,8
1(d) 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 is based on their payment of wages and salaries. A partnership, limited
4liability company or corporation shall compute the amount of credit that each of its
5partners, members or shareholders may claim and shall provide that information to
6each of them. Partners, members of limited liability companies and shareholders of
7tax-option corporations may claim the credit in proportion to their ownership
8interest.
AB81,6,109
(e) Subsection (4) (g) and (h) as it relates to the credit under sub. (4) relates to
10the credit under this subsection.
AB81, s. 9
11Section
9. 71.30 (3) (f) of the statutes is amended to read:
AB81,6,1512
71.30
(3) (f) The total of farmers' drought property tax credit under s. 71.28
13(1fd), farmland preservation credit under subch. IX, farmland tax relief credit under
14s. 71.28 (2m)
, disabled veterans hiring credit under s. 71.28 (5dv) and estimated tax
15payments under s. 71.29.
AB81, s. 10
16Section
10. 71.34 (1) (g) of the statutes is amended to read:
AB81,6,1917
71.34
(1) (g) An addition shall be made for credits computed by a tax-option
18corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx)
and, (3)
and
19(5dv) and passed through to shareholders.
AB81, s. 11
20Section
11. 71.45 (2) (a) 10. of the statutes is amended to read:
AB81,7,221
71.45
(2) (a) 10. By adding to federal taxable income the amount of credit
22computed under s. 71.47 (1dd) to (1dx)
and (5dv) and not passed through by a
23partnership, limited liability company or tax-option corporation that has added that
24amount to the partnership's, limited liability company's or tax-option corporation's
1income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under
2s. 71.47 (1), (3), (4) and (5).
AB81, s. 12
3Section
12. 71.47 (5dv) of the statutes is created to read:
AB81,7,44
71.47
(5dv) Disabled veterans hiring credit. (a) In this subsection:
AB81,7,55
1. "Claimant" means a person who files a claim under this subsection.
AB81,7,76
2. "Disabled veteran" means a person who is eligible for compensation under
738 USC 310.
AB81,7,98
3. "Percentage of disability" means the percentage determined under
38 USC
9314 (a) to (j).
AB81,7,1110
(b) Subject to the limitations provided in this subsection, a claimant may claim
11as a credit against the taxes imposed under s. 71.43 an amount calculated as follows:
AB81,7,1312
1. For each disabled veteran whom the claimant hires after the effective date
13of this subdivision .... [revisor inserts date], determine the wages and salary paid.
AB81,7,1514
2. Multiply the amount under subd. 1. by the disabled veteran's percentage of
15disability.
AB81,7,1616
3. Add the amounts under subd. 2. for all disabled veterans.
AB81,7,2117
(c) If the allowable amount of the claim under this subsection exceeds the
18amount of taxes otherwise due under this subchapter, the allowable amount of the
19claim that is not used to offset taxes shall be certified by the department of revenue
20to the department of administration for payment by check, share draft or other draft
21drawn from the appropriation under s. 20.835 (2) (a).
AB81,8,422
(d) Partnerships, limited liability companies and tax-option corporations may
23not claim the credit under this subsection, but the eligibility for, and the amount of,
24the credit is based on their payment of wages and salaries. A partnership, limited
25liability company or corporation shall compute the amount of credit that each of its
1partners, members or shareholders may claim and shall provide that information to
2each of them. Partners, members of limited liability companies and shareholders of
3tax-option corporations may claim the credit in proportion to their ownership
4interest.
AB81,8,65
(e) Section 71.28 (4) (g) and (h) as it relates to the credit under s. 71.28 (4)
6relates to the credit under this subsection.
AB81, s. 13
7Section
13. 71.49 (1) (f) of the statutes is amended to read:
AB81,8,118
71.49
(1) (f) The total of farmers' drought property tax credit under s. 71.47
9(1fd), farmland preservation credit under subch. IX, farmland tax relief credit under
10s. 71.47 (2m)
, disabled veterans hiring credit under s. 71.47 (5dv) and estimated tax
11payments under s. 71.48.
AB81, s. 14
12Section
14. 77.92 (4) of the statutes is amended to read: