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.
SB199,36,1710
2. "Qualified child care facility" means a facility that is used primarily to
11provide child care assistance, unless the facility is the operator's principal residence;
12that is licensed under s. 48.65 or 48.69; that is open to enrollment to the children of
13the employes of the claimant; that is not the claimant's principal trade or business,
14unless at least 30% of the enrollees of the facility are the children of the claimant's
15employes; and that does not discriminate in enrollment in favor of the children of the
16claimant's highly compensated employes, as defined in section
414 (q) of the Internal
17Revenue Code.
SB199,36,2018
(b) A person may claim as a credit against taxes imposed under s. 71.43, up to
19the amount of those taxes, an amount equal to 5% of that person's qualified child care
20expenditures, except that the credit may not exceed $15,000 a year.
SB199,36,2221
(c) Section 71.28 (4) (e) to (h), as it relates to the credit under s. 71.28 (4), relates
22to the credit under this subsection.
SB199, s. 60
23Section
60. 71.49 (1) (ea) of the statutes is created to read:
SB199,36,2424
71.49
(1) (ea) Child care credit under s. 71.47 (7).
SB199, s. 61
25Section
61. 71.49 (1) (f) of the statutes is amended to read:
SB199,37,4
171.49
(1) (f) The total of farmers' drought property tax credit under s. 71.47
2(1fd), farmland preservation credit under subch. IX, farmland tax relief credit under
3s. 71.47 (2m)
, day care center credit under s. 71.28 (5d) and estimated tax payments
4under s. 71.48.
SB199, s. 62
5Section
62. 77.92 (4) of the statutes is amended to read:
SB199,37,176
77.92
(4) "Net business income", with respect to a partnership, means taxable
7income as calculated under section
703 of the
internal revenue code Internal
8Revenue Code; plus the items of income and gain under section
702 of the
internal
9revenue code Internal Revenue Code; minus the items of loss and deduction under
10section
702 of the
internal revenue code Internal Revenue Code; plus payments
11treated as not made to partners under section
707 (a) of the
internal revenue code 12Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di),
13(2dj), (2dL), (2dr), (2ds), (2dx)
and, (3s)
, (5d) and (7g); but excluding income, gain, loss
14and deductions from farming. "Net business income", with respect to a natural
15person, estate or trust, means profit from a trade or business for federal income tax
16purposes and includes net income derived as an employe as defined in section
3121 17(d) (3) of the
internal revenue code Internal Revenue Code.
SB199,37,2519
(1)
Child care worker loan program. In the schedule under section 20.005 (3)
20of the statutes for the appropriation to the higher educational aids board under
21section 20.235 (2) (aa) of the statutes, as affected by the acts of 1999, the dollar
22amount is increased by $8,400 for fiscal year 1999-00 and the dollar amount is
23increased by $8,400 for fiscal year 2000-01 to increase the authorized FTE positions
24for the department by 0.5 position for the purpose of administering the child care
25worker loan repayment assistance program.
SB199,38,92
(1)
Child care credit; day care center credit. The treatment of sections 71.05
3(6) (a) 15., 71.07 (5d) and (7g), 71.08 (1) (intro.), 71.10 (4) (gc) and (i), 71.21 (4), 71.26
4(2) (a), 71.28 (5d) and (7), 71.30 (3) (ea) and (f), 71.34 (1) (g), 71.45 (2) (a) 10., 71.47
5(5d) and (7), 71.49 (1) (ea) and (f) and 77.92 (4) of the statutes first applies to taxable
6years beginning on January 1 of the year in which this subsection takes effect, except
7that if this subsection takes effect after July 31, the treatment of those sections first
8applies to taxable years beginning on January 1 of the year after the year in which
9this subsection takes effect.
SB199,38,1510
(2)
Child and department care expenses credit. The treatment of sections
1171.07 (6m) and 71.10 (4) (cm) of the statutes first applies to taxable years beginning
12on January 1 of the year in which this subsection takes effect, except that if this
13subsection takes effect after July 31, the treatment of those sections first applies to
14taxable years beginning on January 1 of the year following the year in which this
15subsection takes effect.