LRB-2934/1
MES&JK:wlj:km
1999 - 2000 LEGISLATURE
March 7, 2000 - Introduced by Representatives Schneider, Ryba, Plale and
Musser, cosponsored by Senator Roessler. Referred to Committee on Ways
and Means.
AB844,1,5
1An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a), 71.34 (1) (g), 71.45 (2)
2(a) 10. and 77.92 (4); and
to create 71.07 (5s), 71.10 (4) (gv), 71.28 (5s), 71.30
3(3) (eon), 71.47 (5s) and 71.49 (1) (eon) of the statutes;
relating to: creating a
4nonrefundable income tax and franchise tax credit for information technology
5training.
Analysis by the Legislative Reference Bureau
This bill creates an individual income tax and corporate income tax and
franchise tax credit for training related to information technology. The credit is an
amount equal to 50% of the amount that a claimant pays for the claimant or the
claimant's spouse, dependent or employe to receive training related to information
technology. If the amount of the credit exceeds the claimant's tax liability, the state
will not issue a refund check, but the claimant may carry forward any remaining
credit to subsequent taxable years. A claimant who receives the credit, however,
must pay back the amount of the credit if the individual who receives the training
is not employed in this state in an occupation related to information technology
within one year after the individual completes the training or if the individual is
employed in that occupation for less than one year.
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:
AB844, s. 1
1Section
1. 71.05 (6) (a) 15. of the statutes is amended to read:
AB844,2,62
71.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
3(2di), (2dj), (2dL), (2dr), (2ds), (2dx)
and, (3s)
and (5s) and not passed through by a
4partnership, limited liability company or tax-option corporation that has added that
5amount to the partnership's, company's or tax-option corporation's income under s.
671.21 (4) or 71.34 (1) (g).
AB844, s. 2
7Section
2. 71.07 (5s) of the statutes is created to read:
AB844,2,88
71.07
(5s) Information technology training credit. (a) In this subsection:
AB844,2,119
1. "Claimant" means an individual, a sole proprietor, a partner, a member of
10a limited liability company or a shareholder of a tax-option corporation who files a
11claim under this subsection.
AB844,2,1212
2. "Information technology" has the meaning given in s. 16.97 (6).
AB844,2,1413
3. "Qualified institution" means any university, college, technical college or
14school approved under s. 45.54.
AB844,2,1915
(b) Subject to the limitations provided in this subsection, a claimant may claim
16as a credit against the tax imposed under s. 71.02 an amount equal to 50% of the
17amount that the claimant paid during the taxable year for the claimant or the
18claimant's spouse, dependent or employe to receive information technology training
19at a qualified institution.
AB844,3,3
1(c) The amount of the credit for each claimant under this subsection shall not
2exceed $2,500 in a taxable year for each individual for whom the claimant pays an
3amount as provided in par. (b).
AB844,3,64
(d) A claimant who receives a credit under par. (b) shall add to the claimant's
5liability for taxes imposed under s. 71.02 an amount that is equal to the total amount
6of the credits received under par. (b), if any of the following occur:
AB844,3,97
1. The individual who received the training as specified under par. (b) is not
8employed in this state in an occupation related to information technology within one
9year after the individual completes the training.
AB844,3,1210
2. The individual who received the training as specified under par. (b) is
11employed in this state in an occupation related to information technology for less
12than one year.
AB844,3,1513
(e) A claimant may not claim the credit under par. (b) for any amounts that the
14claimant excluded under s. 71.05 (6) (b) 28. or under section
127 of the Internal
15Revenue Code.
AB844,3,1716
(f) The carry-over provisions of s. 71.28 (4) (e) and (f), as they apply to the credit
17under s. 71.28 (4), apply to the credit under this subsection.
AB844,3,2518
(g) Partnerships, limited liability companies and tax-option corporations may
19not claim the credit under this subsection, but the eligibility for, and the amount of,
20the credit are based on their payment of the amount under par. (b). A partnership,
21limited liability company or tax-option corporation shall compute the amount of
22credit that each of its partners, members or shareholders may claim and shall
23provide that information to each of them. Partners, members of limited liability
24companies and shareholders of tax-option corporations may claim the credit in
25proportion to their ownership interest.
AB844,4,2
1(h) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4),
2applies to the credit under this subsection.
AB844, s. 3
3Section
3. 71.10 (4) (gv) of the statutes is created to read:
AB844,4,44
71.10
(4) (gv) Information technology training credit under s. 71.07 (5s).
AB844, s. 4
5Section
4. 71.21 (4) of the statutes is amended to read:
AB844,4,86
71.21
(4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
7(2dj), (2dL), (2ds), (2dx)
and, (3s)
and (5s) and passed through to partners shall be
8added to the partnership's income.
AB844, s. 5
9Section
5. 71.26 (2) (a) of the statutes is amended to read:
AB844,4,2510
71.26
(2) (a)
Corporations in general. The "net income" of a corporation means
11the gross income as computed under the
internal revenue code Internal Revenue
12Code as modified under sub. (3) minus the amount of recapture under s. 71.28 (1di)
13plus the amount of credit computed under s. 71.28 (1) and (3) to (5) plus the amount
14of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds)
and, (1dx)
15and (5s) and not passed through by a partnership, limited liability company or
16tax-option corporation that has added that amount to the partnership's, limited
17liability company's or tax-option corporation's income under s. 71.21 (4) or 71.34 (1)
18(g) plus the amount of losses from the sale or other disposition of assets the gain from
19which would be wholly exempt income, as defined in sub. (3) (L), if the assets were
20sold or otherwise disposed of at a gain and minus deductions, as computed under the
21internal revenue code Internal Revenue Code as modified under sub. (3), plus or
22minus, as appropriate, an amount equal to the difference between the federal basis
23and Wisconsin basis of any asset sold, exchanged, abandoned or otherwise disposed
24of in a taxable transaction during the taxable year, except as provided in par. (b) and
25s. 71.45 (2) and (5).
AB844, s. 6
1Section
6. 71.28 (5s) of the statutes is created to read:
AB844,5,22
71.28
(5s) Information technology training credit. (a) In this subsection:
AB844,5,33
1. "Claimant" means a corporation that files a claim under this subsection.
AB844,5,44
2. "Information technology" has the meaning given in s. 16.97 (6).
AB844,5,65
3. "Qualified institution" means any university, college, technical college or
6school approved under s. 45.54.
AB844,5,107
(b) Subject to the limitations provided in this subsection, a claimant may claim
8as a credit against the tax imposed under s. 71.23 an amount equal to 50% of the
9amount that the claimant paid during the taxable year for an employe to receive
10information technology training at a qualified institution.
AB844,5,1311
(c) The amount of the credit for each claimant under this subsection shall not
12exceed $2,500 in a taxable year for each employe for whom the claimant pays an
13amount as provided in par. (b).
AB844,5,1614
(d) A claimant who receives a credit under par. (b) shall add to the claimant's
15liability for taxes imposed under s. 71.23 an amount that is equal to the total amount
16of the credits received under par. (b), if any of the following occur:
AB844,5,1917
1. The employe who received the training as specified under par. (b) is not
18employed in this state in an occupation related to information technology within one
19year after the employe completes the training as provided under par. (b).
AB844,5,2120
2. The employe who received the training as specified under par. (b) is employed
21in this state in an occupation related to information technology for less than one year.
AB844,5,2422
(e) A claimant may not claim the credit under par. (b) for any amounts that the
23claimant has excluded under s. 71.05 (6) (b) 28. or under section
127 of the Internal
24Revenue Code.
AB844,6,2
1(f) The carry-over provisions of sub. (4) (e) and (f), as they apply to the credit
2under sub. (4), apply to the credit under this subsection.
AB844,6,103
(g) Partnerships, limited liability companies and tax-option corporations may
4not claim the credit under this subsection, but the eligibility for, and the amount of,
5the credit are based on their payment of the amount under par. (b). A partnership,
6limited liability company or tax-option corporation shall compute the amount of
7credit that each of its partners, members or shareholders may claim and shall
8provide that information to each of them. Partners, members of limited liability
9companies and shareholders of tax-option corporations may claim the credit in
10proportion to their ownership interest.
AB844,6,1211
(h) Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies
12to the credit under this subsection.
AB844, s. 7
13Section
7. 71.30 (3) (eon) of the statutes is created to read:
AB844,6,1414
71.30
(3) (eon) Information technology training credit under s. 71.28 (5s).
AB844, s. 8
15Section
8. 71.34 (1) (g) of the statutes is amended to read:
AB844,6,1816
71.34
(1) (g) An addition shall be made for credits computed by a tax-option
17corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx)
and, (3)
and (5s) 18and passed through to shareholders.
AB844, s. 9
19Section
9. 71.45 (2) (a) 10. of the statutes is amended to read:
AB844,6,2520
71.45
(2) (a) 10. By adding to federal taxable income the amount of credit
21computed under s. 71.47 (1dd) to (1dx)
and (5s) and not passed through by a
22partnership, limited liability company or tax-option corporation that has added that
23amount to the partnership's, limited liability company's or tax-option corporation's
24income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under
25s. 71.47 (1), (3), (4) and (5).
AB844, s. 10
1Section
10. 71.47 (5s) of the statutes is created to read:
AB844,7,22
71.47
(5s) Information technology training credit. (a) In this subsection:
AB844,7,33
1. "Claimant" means a corporation that files a claim under this subsection.
AB844,7,44
2. "Information technology" has the meaning given in s. 16.97 (6).
AB844,7,65
3. "Qualified institution" means any university, college, technical college or
6school approved under s. 45.54.
AB844,7,107
(b) Subject to the limitations provided in this subsection, a claimant may claim
8as a credit against the tax imposed under s. 71.43 an amount equal to 50% of the
9amount that the claimant paid during the taxable year for an employe to receive
10information technology training at a qualified institution.
AB844,7,1311
(c) The amount of the credit for each claimant under this subsection shall not
12exceed $2,500 in a taxable year for each employe for whom the claimant pays an
13amount as provided in par. (b).
AB844,7,1614
(d) A claimant who receives a credit under par. (b) shall add to the claimant's
15liability for taxes imposed under s. 71.43 an amount that is equal to the total amount
16of the credits received under par. (b), if any of the following occur:
AB844,7,1917
1. The employe who received the training as specified under par. (b) is not
18employed in this state in an occupation related to information technology within one
19year after the employe completes the training.