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:
SB482, s. 1 1Section 1. 71.05 (6) (a) 15. of the statutes is amended to read:
SB482,2,62 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 (5d) 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).
SB482, s. 2 7Section 2. 71.07 (5d) of the statutes is created to read:
SB482,2,88 71.07 (5d) Student sponsorship credit. (a) In this subsection:
SB482,2,119 1. "Claimant" means a sole proprietor, a partner, a member of a limited liability
10company or a shareholder of a tax-option corporation who files a claim under this
11subsection.
SB482,2,1312 2. "Qualified expenses" means expenses related to attending school including
13room and board, books and tuition.
SB482,2,1414 3. "Qualified student" means any of the following:
SB482,2,1715 a. A student who is a full-time undergraduate student enrolled in the
16University of Wisconsin System and who is eligible for a Wisconsin higher education
17grant under s. 39.435 for at least 2 semesters that the student is enrolled.
SB482,2,2118 b. A student who is a full-time undergraduate student enrolled in a regionally
19accredited 4-year private college or university in this state and who is eligible for a
20talent incentive grant under s. 39.435 (2) for at least 2 semesters that the student
21is enrolled.
SB482,3,4
1(b) Subject to the limitations provided in this subsection, a claimant may claim
2as a credit against the tax imposed under s. 71.02 an amount equal to $1,000 for every
3$3,000 of qualified expenses that the claimant pays on behalf of a qualified student
4in a taxable year.
SB482,3,75 (c) A claimant may claim credits under par. (b) for qualified expenses that are
6paid for no more than 10 semesters that the qualified student is enrolled as an
7undergraduate.
SB482,3,108 (d) A claimant may not claim the credit under par. (b) for any tuition amounts
9that the claimant excluded under s. 71.05 (6) (b) 28. or under section 127 of the
10Internal Revenue Code.
SB482,3,1211 (e) The carry-over provisions of s. 71.28 (4) (e) and (f), as they apply to the credit
12under s. 71.28 (4), apply to the credit under this subsection.
SB482,3,2013 (f) Partnerships, limited liability companies and tax-option corporations may
14not claim the credit under this subsection, but the eligibility for, and the amount of,
15the credit are based on their payment of qualified expenses under par. (b) 1. A
16partnership, limited liability company or tax-option corporation shall compute the
17amount of credit that each of its partners, members or shareholders may claim and
18shall provide that information to each of them. Partners, members of limited liability
19companies and shareholders of tax-option corporations may claim the credit in
20proportion to their ownership interest.
SB482,3,2221 (g) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4),
22applies to the credit under this subsection.
SB482, s. 3 23Section 3. 71.10 (4) (cp) of the statutes is created to read:
SB482,3,2424 71.10 (4) (cp) The student sponsorship credit under s. 71.07 (5d).
SB482, s. 4 25Section 4. 71.26 (2) (a) of the statutes is amended to read:
SB482,4,15
171.26 (2) (a) Corporations in general. The "net income" of a corporation means
2the gross income as computed under the internal revenue code as modified under
3sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
4computed under s. 71.28 (1) and (3) to (5) plus the amount of the credit computed
5under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds) and , (1dx) and (5d) and not passed
6through by a partnership, limited liability company or tax-option corporation that
7has added that amount to the partnership's, limited liability company's or tax-option
8corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from
9the sale or other disposition of assets the gain from which would be wholly exempt
10income, as defined in sub. (3) (L), if the assets were sold or otherwise disposed of at
11a gain and minus deductions, as computed under the internal revenue code as
12modified under sub. (3), plus or minus, as appropriate, an amount equal to the
13difference between the federal basis and Wisconsin basis of any asset sold,
14exchanged, abandoned or otherwise disposed of in a taxable transaction during the
15taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).
SB482, s. 5 16Section 5. 71.28 (5d) of the statutes is created to read:
SB482,4,1717 71.28 (5d) Student sponsorship credit. (a) In this subsection:
SB482,4,1818 1. "Claimant" means a corporation that files a claim under this subsection.
SB482,4,2019 2. "Qualified expenses" means expenses related to attending school including
20room and board, books and tuition.
SB482,4,2121 3. "Qualified student" means any of the following:
SB482,4,2422 a. A student who is a full-time undergraduate student enrolled in the
23University of Wisconsin System and who is eligible for a Wisconsin higher education
24grant under s. 39.435 for at least 2 semesters that the student is enrolled.
SB482,5,4
1b. A student who is a full-time undergraduate student enrolled in a regionally
2accredited 4-year private college or university in this state and who is eligible for a
3talent incentive grant under s. 39.435 (2) for at least 2 semesters that the student
4is enrolled.
SB482,5,85 (b) Subject to the limitations provided in this subsection, a claimant may claim
6as a credit against the tax imposed under s. 71.23 an amount equal to $1,000 for every
7$3,000 of qualified expenses that the claimant pays on behalf of a qualified student
8in a taxable year.
SB482,5,119 (c) A claimant may claim credits under par. (b) for qualified expenses that are
10paid for no more than 10 semesters that the qualified student is enrolled as an
11undergraduate.
SB482,5,1412 (d) A claimant may not claim the credit under par. (b) for any tuition amounts
13that the claimant excluded under s. 71.05 (6) (b) 28. or under section 127 of the
14Internal Revenue Code.
SB482,5,1615 (e) The carry-over provisions of sub. (4) (e) and (f), as they apply to the credit
16under sub. (4), apply to the credit under this subsection.
SB482,5,2417 (f) Partnerships, limited liability companies and tax-option corporations may
18not claim the credit under this subsection, but the eligibility for, and the amount of,
19the credit are based on their payment of qualified expenses under par. (b) 1. A
20partnership, limited liability company or tax-option corporation shall compute the
21amount of credit that each of its partners, members or shareholders may claim and
22shall provide that information to each of them. Partners, members of limited liability
23companies and shareholders of tax-option corporations may claim the credit in
24proportion to their ownership interest.
SB482,6,2
1(g) Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies
2to the credit under this subsection.
SB482, s. 6 3Section 6. 71.30 (3) (dm) of the statutes is created to read:
SB482,6,44 71.30 (3) (dm) The student sponsorship credit under s. 71.28 (5d).
SB482, s. 7 5Section 7. 71.45 (2) (a) 10. of the statutes is amended to read:
SB482,6,116 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
7computed under s. 71.47 (1dd) to (1dx) and (5d) and not passed through by a
8partnership, limited liability company or tax-option corporation that has added that
9amount to the partnership's, limited liability company's or tax-option corporation's
10income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under
11s. 71.47 (1), (3), (4) and (5).
SB482, s. 8 12Section 8. 71.47 (5d) of the statutes is created to read:
SB482,6,1313 71.47 (5d) Student sponsorship credit. (a) In this subsection:
SB482,6,1414 1. "Claimant" means a corporation that files a claim under this subsection.
SB482,6,1615 2. "Qualified expenses" means expenses related to attending school including
16room and board, books and tuition.
SB482,6,1717 3. "Qualified student" means any of the following:
SB482,6,2018 a. A student who is a full-time undergraduate student enrolled in the
19University of Wisconsin System and who is eligible for a Wisconsin higher education
20grant under s. 39.435 for at least 2 semesters that the student is enrolled.
SB482,6,2421 b. A student who is a full-time undergraduate student enrolled in a regionally
22accredited 4-year private college or university in this state and who is eligible for a
23talent incentive grant under s. 39.435 (2) for at least 2 semesters that the student
24is enrolled.
SB482,7,4
1(b) Subject to the limitations provided in this subsection, a claimant may claim
2as a credit against the tax imposed under s. 71.43 an amount equal to $1,000 for every
3$3,000 of qualified expenses that the claimant pays on behalf of a qualified student
4in a taxable year.
SB482,7,75 (c) A claimant may claim credits under par. (b) for qualified expenses that are
6paid for no more than 10 semesters that the qualified student is enrolled as an
7undergraduate.
SB482,7,108 (d) A claimant may not claim the credit under par. (b) for any tuition amounts
9that the claimant excluded under s. 71.05 (6) (b) 28. or under section 127 of the
10Internal Revenue Code.
SB482,7,1211 (e) The carry-over provisions of s. 71.28 (4) (e) and (f), as they apply to the credit
12under s. 71.28 (4), apply to the credit under this subsection.
SB482,7,2013 (f) Partnerships, limited liability companies and tax-option corporations may
14not claim the credit under this subsection, but the eligibility for, and the amount of,
15the credit are based on their payment of qualified expenses under par. (b) 1. A
16partnership, limited liability company or tax-option corporation shall compute the
17amount of credit that each of its partners, members or shareholders may claim and
18shall provide that information to each of them. Partners, members of limited liability
19companies and shareholders of tax-option corporations may claim the credit in
20proportion to their ownership interest.
SB482,7,2221 (g) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4),
22applies to the credit under this subsection.
SB482, s. 9 23Section 9. 71.49 (1) (dm) of the statutes is created to read:
SB482,7,2424 71.49 (1) (dm) The student sponsorship credit under s. 71.47 (5d).
SB482, s. 10
1Section 10. 77.92 (4) of the statutes, as affected by 1999 Wisconsin Act 9, is
2amended to read:
SB482,8,173 77.92 (4) "Net business income", with respect to a partnership, means taxable
4income as calculated under section 703 of the Internal Revenue Code; plus the items
5of income and gain under section 702 of the Internal Revenue Code, including taxable
6state and municipal bond interest and excluding nontaxable interest income or
7dividend income from federal government obligations; minus the items of loss and
8deduction under section 702 of the Internal Revenue Code, except items that are not
9deductible under s. 71.21; plus guaranteed payments to partners under section 707
10(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
11(2di), (2dj), (2dL), (2dr), (2ds), (2dx) and, (3s) and (5d); and plus or minus, as
12appropriate, transitional adjustments, depreciation differences and basis
13differences under s. 71.05 (13), (15), (16), (17) and (19); but excluding income, gain,
14loss and 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.
SB482, s. 11 18Section 11. Initial applicability.
SB482,8,1919 (1) This act first applies to taxable years beginning on January 1, 2000.
SB482,8,2020 (End)
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