SB199,23,2019 (e) Section 71.28 (4) (e), as it applies to the credit under s. 71.28 (4), applies to
20the credit under this subsection.
SB199,24,221 (f) If a credit computed under this subsection is not entirely offset against
22income or franchise taxes otherwise due, the unused balance may be carried forward
23and credited against income or franchise taxes otherwise due for the following 5
24taxable years to the extent not offset by those taxes otherwise due in all intervening

1years between the year in which the expense was incurred and the year in which the
2carry-forward credit is claimed.
SB199,24,103 (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 the amount paid or incurred 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.
SB199,24,1211 (h) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4),
12applies to the credit under this subsection.
SB199,24,1813 (i) If the operation of a day care center under par. (b) 1. ceases within 5 years
14after the date on which the construction of the day care center is completed, a
15claimant who receives credits under par. (b) 1. and 2. for the construction and
16operation of such a day care center shall add to the claimant's liability for taxes
17imposed under s. 71.02 an amount equal to the total amount of the credits received
18under par. (b) 1. and 2. multiplied by the following percentage:
SB199,24,2019 1. If the operation of the day care center ceases during the first year after the
20date on which the construction of the day care center is completed, 100%.
SB199,24,2221 2. If the operation of the day care center ceases during the 2nd year after the
22date on which the construction of the day care center is completed, 80%.
SB199,24,2423 3. If the operation of the day care center ceases during the 3rd year after the
24date on which the construction of the day care center is completed, 60%.
SB199,25,2
14. If the operation of the day care center ceases during the 4th year after the
2date on which the construction of the day care center is completed, 40%.
SB199,25,43 5. If the operation of the day care center ceases during the 5th year after the
4date on which the construction of the day care center is completed, 20%.
SB199, s. 44 5Section 44. 71.07 (6m) of the statutes is created to read:
SB199,25,76 71.07 (6m) Child and dependent care expenses credit. (a) Definitions. In this
7subsection:
SB199,25,98 1. "Claimant" means an individual who is eligible for, and claims, the federal
9credit.
SB199,25,1210 2. "Federal credit" means the federal tax credit, for expenses for household and
11dependent care services necessary for gainful employment, under section 21 of the
12Internal Revenue Code.
SB199,25,1613 (b) Filing claims. Subject to the limitations provided in this subsection, a
14claimant may claim as a credit against the tax imposed under s. 71.02, up to the
15amount of those taxes, an amount equal to 50% of the amount of the credit claimed
16by the claimant under the federal credit in the year to which the claim relates.
SB199,25,1817 (c) Limitations. 1. No credit may be allowed under this subsection unless it
18is claimed within the time period under s. 71.75 (2).
SB199,26,519 2. For a claimant who is a nonresident or part-year resident of this state,
20multiply the credit for which the claimant is eligible under par. (b) by a fraction the
21numerator of which is the individual's wages, salary, tips, unearned income and net
22earnings from a trade or business that are taxable by this state and the denominator
23of which is the individual's total wages, salary, tips, unearned income and net
24earnings from a trade or business. In this subdivision, for married persons filing
25separately "wages, salary, tips, unearned income and net earnings from a trade or

1business" means the separate wages, salary, tips, unearned income and net earnings
2from a trade or business of each spouse, and for married persons filing jointly "wages,
3salary, tips, unearned income and net earnings from a trade or business" means the
4total wages, salary, tips, unearned income and net earnings from a trade or business
5of both spouses.
SB199,26,76 (d) Administration. Section 71.07 (9e) (d), to the extent that it applies to the
7credit under that subsection, applies to the credit under this subsection.
SB199, s. 45 8Section 45. 71.07 (7g) of the statutes is created to read:
SB199,26,99 71.07 (7g) Child care credit. (a) In this subsection:
SB199,26,2110 1. "Qualified child care expenditures" means any amount that is not used in
11calculating the credits under subs. (2dd) and (5d) and that is paid to acquire,
12construct or rehabilitate property that is to be used as part of a qualified child care
13facility of the claimant, if the property may be depreciated or amortized under this
14subchapter and if the property is not part of the principal residence of the claimant
15or any employe of the claimant; any amount paid for the operating costs of a qualified
16child care facility of the claimant, including costs related to training employes, to
17scholarship programs and to providing increased compensation to employes who
18have higher levels of child care training; any amount paid under a contract with a
19child care facility to provide child care services to employes of the claimant; and any
20amount paid under a contract to provide child care resource and referral services to
21employes of the claimant.
SB199,27,422 2. "Qualified child care facility" means a facility that is used primarily to
23provide child care assistance, unless the facility is the operator's principal residence;
24that is licensed under s. 48.65 or 48.69; that is open to enrollment to the children of
25the employes of the claimant; that is not the claimant's principal trade or business,

1unless at least 30% of the enrollees of the facility are the children of the claimant's
2employes; and that does not discriminate in enrollment in favor of the children of the
3claimant's highly compensated employes, as defined in section 414 (q) of the Internal
4Revenue Code.
SB199,27,75 (b) A person may claim as a credit against taxes imposed under s. 71.02, up to
6the amount of those taxes, an amount equal to 5% of that person's qualified child care
7expenditures, except that the credit may not exceed $15,000 a year.
SB199,27,98 (c) Section 71.28 (4) (e) to (h), as it relates to the credit under s. 71.28 (4), relates
9to the credit under this subsection.
SB199, s. 46 10Section 46. 71.08 (1) (intro.) of the statutes is amended to read:
SB199,27,1911 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married
12couple filing jointly, trust or estate under s. 71.02, not considering the credits under
13ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3m), (3s), (5d),
14(6), (6m), (7g) and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m)
15and, (3), (5d) and (7) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m)
16and, (3), (5d) and (7) and subchs. VIII and IX and payments to other states under s.
1771.07 (7), is less than the tax under this section, there is imposed on that natural
18person, married couple filing jointly, trust or estate, instead of the tax under s. 71.02,
19an alternative minimum tax computed as follows:
SB199, s. 47 20Section 47. 71.10 (4) (cm) of the statutes is created to read:
SB199,27,2221 71.10 (4) (cm) The child and dependent expenses care credit under s. 71.07
22(6m).
SB199, s. 48 23Section 48. 71.10 (4) (gc) of the statutes is created to read:
SB199,27,2424 71.10 (4) (gc) Child care credit under s. 71.07 (7g).
SB199, s. 49 25Section 49. 71.10 (4) (i) of the statutes is amended to read:
SB199,28,6
171.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
2preservation credit under subch. IX, homestead credit under subch. VIII, farmland
3tax relief credit under s. 71.07 (3m), farmers' drought property tax credit under s.
471.07 (2fd), day care center credit under s. 71.07 (5d), earned income tax credit under
5s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under
6subch. X.
SB199, s. 50 7Section 50. 71.21 (4) of the statutes is amended to read:
SB199,28,108 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
9(2dj), (2dL), (2ds), (2dx) and, (3s) , (5d) and (7g) and passed through to partners or
10members
shall be added to the partnership's or limited liability company's income.
SB199, s. 51 11Section 51. 71.26 (2) (a) of the statutes is amended to read:
SB199,29,212 71.26 (2) (a) Corporations in general. The "net income" of a corporation means
13the gross income as computed under the internal revenue code Internal Revenue
14Code
as modified under sub. (3) minus the amount of recapture under s. 71.28 (1di)
15plus the amount of credit computed under s. 71.28 (1) and (3) to (5) plus the amount
16of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds) and, (1dx),
17(5d) and (7)
and not passed through by a partnership, limited liability company or
18tax-option corporation that has added that amount to the partnership's, limited
19liability company's or tax-option corporation's income under s. 71.21 (4) or 71.34 (1)
20(g) plus the amount of losses from the sale or other disposition of assets the gain from
21which would be wholly exempt income, as defined in sub. (3) (L), if the assets were
22sold or otherwise disposed of at a gain and minus deductions, as computed under the
23internal revenue code Internal Revenue Code as modified under sub. (3), plus or
24minus, as appropriate, an amount equal to the difference between the federal basis
25and Wisconsin basis of any asset sold, exchanged, abandoned or otherwise disposed

1of in a taxable transaction during the taxable year, except as provided in par. (b) and
2s. 71.45 (2) and (5).
SB199, s. 52 3Section 52. 71.28 (5d) of the statutes is created to read:
SB199,29,54 71.28 (5d) Day care center credit. (a) In this subsection, "claimant" means
5a person who files a claim under this subsection.
SB199,29,76 (b) A claimant may claim as a credit against the tax imposed under s. 71.23 any
7of the following:
SB199,29,118 1. An amount equal to 50% of the amount paid or incurred by the claimant
9during the taxable year to construct and equip a licensed day care center under s.
1048.65, that is owned and operated by the claimant, to care for the children of the
11claimant's employes during the employes' working hours.
SB199,29,1312 2. An amount equal to $50 a month for each child of a claimant's employe
13enrolled in the claimant's day care center under subd. 1. for the taxable year.
SB199,29,1714 3. An amount equal to 50% of the amount paid by the claimant during the
15taxable year to a licensed day care center under s. 48.65, other than a day care center
16under subd. 1., to provide care for the children of the claimant's employes during the
17employes' working hours.
SB199,29,2018 (c) The amount of the credit under this subsection shall not exceed $50,000 in
19a taxable year for each claimant, and the total amount of the credit under this
20subsection for all claimants shall not exceed $1,500,000 in a fiscal year.
SB199,30,221 (d) No credit may be allowed under this subsection unless the claimant files an
22application with the department of revenue before the end of the taxable year in
23which amounts are paid or expenses are incurred under par. (b) and includes with
24that application a statement from the department of health and family services that
25verifies that the day care center under par. (b) is licensed under s. 48.65. No credit

1may be allowed under this subsection after the department of revenue has awarded
2the total amount of the credit for all claimants under par. (c).
SB199,30,43 (e) Subsection (4) (e), as it applies to the credit under sub. (4), applies to the
4credit under this subsection.
SB199,30,105 (f) If a credit computed under this subsection is not entirely offset against
6income or franchise taxes otherwise due, the unused balance may be carried forward
7and credited against income or franchise taxes otherwise due for the following 5
8taxable years to the extent not offset by those taxes otherwise due in all intervening
9years between the year in which the expense was incurred and the year in which the
10carry-forward credit is claimed.
SB199,30,1811 (g) 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 the amount paid or incurred 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 interest.
SB199,30,2019 (h) Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies
20to the credit under this subsection.
SB199,31,221 (i) If the operation of a day care center under par. (b) 1. ceases within 5 years
22after the date on which the construction of the day care center is completed, a
23claimant who receives credits under par. (b) 1. and 2. for the construction and
24operation of such a day care center shall add to the claimant's liability for taxes

1imposed under s. 71.23 an amount equal to the total amount of the credits received
2under par. (b) 1. and 2. multiplied by the following percentage:
SB199,31,43 1. If the operation of the day care center ceases during the first year after the
4date on which the construction of the day care center is completed, 100%.
SB199,31,65 2. If the operation of the day care center ceases during the 2nd year after the
6date on which the construction of the day care center is completed, 80%.
SB199,31,87 3. If the operation of the day care center ceases during the 3rd year after the
8date on which the construction of the day care center is completed, 60%.
SB199,31,109 4. If the operation of the day care center ceases during the 4th year after the
10date on which the construction of the day care center is completed, 40%.
SB199,31,1211 5. If the operation of the day care center ceases during the 5th year after the
12date on which the construction of the day care center is completed, 20%.
SB199, s. 53 13Section 53. 71.28 (7) of the statutes is created to read:
SB199,31,1414 71.28 (7) Child care credit. (a) In this subsection:
SB199,32,215 1. "Qualified child care expenditures" means any amount that is not used in
16calculating the credits under subs. (1dd) and (5d) and that is paid to acquire,
17construct or rehabilitate property that is to be used as part of a qualified child care
18facility of the claimant, if the property may be depreciated or amortized under this
19subchapter and if the property is not part of the principal residence of the claimant
20or any employe of the claimant; any amount paid for the operating costs of a qualified
21child care facility of the claimant, including costs related to training employes, to
22scholarship programs and to providing increased compensation to employes who
23have higher levels of child care training; any amount paid under a contract with a
24child care facility to provide dependent care services to employes of the claimant; and

1any amount paid under a contract to provide child care resource and referral services
2to employes of the claimant.
SB199,32,103 2. "Qualified child care facility" means a facility that is used primarily to
4provide child care assistance, unless the facility is the operator's principal residence;
5that is licensed under s. 48.65 or 48.69; that is open to enrollment to the children of
6the employes of the claimant; that is not the claimant's principal trade or business,
7unless at least 30% of the enrollees of the facility are the children of the claimant's
8employes; and that does not discriminate in enrollment in favor of the children of the
9claimant's highly compensated employes, as defined in section 414 (q) of the Internal
10Revenue Code.
SB199,32,1311 (b) A person may claim as a credit against taxes imposed under s. 71.23, up to
12the amount of those taxes, an amount equal to 5% of that person's qualified child care
13expenditures, except that the credit may not exceed $15,000 a year.
SB199,32,1514 (c) Subsection (4) (e) to (h), as it relates to the credit under sub. (4), relates to
15the credit under this subsection.
SB199, s. 54 16Section 54. 71.30 (3) (ea) of the statutes is created to read:
SB199,32,1717 71.30 (3) (ea) Child care credit under s. 71.28 (7).
SB199, s. 55 18Section 55. 71.30 (3) (f) of the statutes is amended to read:
SB199,32,2219 71.30 (3) (f) The total of farmers' drought property tax credit under s. 71.28
20(1fd), farmland preservation credit under subch. IX, farmland tax relief credit under
21s. 71.28 (2m), day care center credit under s. 71.28 (5d) and estimated tax payments
22under s. 71.29.
SB199, s. 56 23Section 56. 71.34 (1) (g) of the statutes is amended to read:
SB199,33,3
171.34 (1) (g) An addition shall be made for credits computed by a tax-option
2corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx) and, (3), (5d)
3and (7)
and passed through to shareholders.
SB199, s. 57 4Section 57. 71.45 (2) (a) 10. of the statutes is amended to read:
SB199,33,105 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
6computed under s. 71.47 (1dd) to (1dx), (5d) and (7) and not passed through by a
7partnership, limited liability company or tax-option corporation that has added that
8amount to the partnership's, limited liability company's or tax-option corporation's
9income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under
10s. 71.47 (1), (3), (4) and (5).
SB199, s. 58 11Section 58. 71.47 (5d) of the statutes is created to read:
SB199,33,1312 71.47 (5d) Day care center credit. (a) In this subsection, "claimant" means
13a person who files a claim under this subsection.
SB199,33,1514 (b) A claimant may claim as a credit against the tax imposed under s. 71.43 any
15of the following:
SB199,33,1916 1. An amount equal to 50% of the amount paid or incurred by the claimant
17during the taxable year to construct and equip a licensed day care center under s.
1848.65, that is owned and operated by the claimant, to care for the children of the
19claimant's employes during the employes' working hours.
SB199,33,2120 2. An amount equal to $50 a month for each child of a claimant's employe
21enrolled in the claimant's day care center under subd. 1. for the taxable year.
SB199,33,2522 3. An amount equal to 50% of the amount paid by the claimant during the
23taxable year to a licensed day care center under s. 48.65, other than a day care center
24under subd. 1., to provide care for the children of the claimant's employes during the
25employes' working hours.
SB199,34,3
1(c) The amount of the credit under this subsection shall not exceed $50,000 in
2a taxable year for each claimant, and the total amount of the credit under this
3subsection for all claimants shall not exceed $1,500,000 in a fiscal year.
SB199,34,104 (d) No credit may be allowed under this subsection unless the claimant files an
5application with the department of revenue before the end of the taxable year in
6which amounts are paid or expenses are incurred under par. (b) and includes with
7that application a statement from the department of health and family services that
8verifies that the day care center under par. (b) is licensed under s. 48.65. No credit
9may be allowed under this subsection after the department of revenue has awarded
10the total amount of the credit for all claimants under par. (c).
SB199,34,1211 (e) Section 71.28 (4) (e), as it applies to the credit under s. 71.28 (4), applies to
12the credit under this subsection.
SB199,34,1813 (f) If a credit computed under this subsection is not entirely offset against
14income or franchise taxes otherwise due, the unused balance may be carried forward
15and credited against income or franchise taxes otherwise due for the following 5
16taxable years to the extent not offset by those taxes otherwise due in all intervening
17years between the year in which the expense was incurred and the year in which the
18carry-forward credit is claimed.
SB199,35,219 (g) Partnerships, limited liability companies and tax-option corporations may
20not claim the credit under this subsection, but the eligibility for, and the amount of,
21the credit are based on the amount paid or incurred under par. (b). A partnership,
22limited liability company or tax-option corporation shall compute the amount of
23credit that each of its partners, members or shareholders may claim and shall
24provide that information to each of them. Partners, members of limited liability

1companies and shareholders of tax-option corporations may claim the credit in
2proportion to their ownership interest.
SB199,35,43 (h) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4),
4applies to the credit under this subsection.
SB199,35,105 (i) If the operation of a day care center under par. (b) 1. ceases within 5 years
6after the date on which the construction of the day care center is completed, a
7claimant who receives credits under par. (b) 1. and 2. for the construction and
8operation of such a day care center shall add to the claimant's liability for taxes
9imposed under s. 71.43 an amount equal to the total amount of the credits received
10under par. (b) 1. and 2. multiplied by the following percentage:
SB199,35,1211 1. If the operation of the day care center ceases during the first year after the
12date on which the construction of the day care center is completed, 100%.
SB199,35,1413 2. If the operation of the day care center ceases during the 2nd year after the
14date on which the construction of the day care center is completed, 80%.
SB199,35,1615 3. If the operation of the day care center ceases during the 3rd year after the
16date on which the construction of the day care center is completed, 60%.
SB199,35,1817 4. If the operation of the day care center ceases during the 4th year after the
18date on which the construction of the day care center is completed, 40%.
SB199,35,2019 5. If the operation of the day care center ceases during the 5th year after the
20date on which the construction of the day care center is completed, 20%.
SB199, s. 59 21Section 59. 71.47 (7) of the statutes is created to read:
SB199,35,2222 71.47 (7) Child care credit. (a) In this subsection:
SB199,36,923 1. "Qualified child care expenditures" means any amount that is not used in
24calculating the credits under subs. (1dd) and (5d) and that is paid to acquire,
25construct or rehabilitate property that is to be used as part of a qualified child care

1facility of the claimant, if the property may be depreciated or amortized under this
2subchapter and if the property is not part of the principal residence of the claimant
3or any employe of the claimant; any amount paid for the operating costs of a qualified
4child care facility of the claimant, including costs related to training employes, to
5scholarship programs and to providing increased compensation to employes who
6have higher levels of child care training; any amount paid under a contract with a
7child care facility to provide child care services to employes of the claimant; and any
8amount paid under a contract to provide child care resource and referral services to
9employes of the claimant.
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