AB183-ASA1,3,2322
(h) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4),
23applies to the credit under this subsection.
AB183-ASA1,4,424
(i) Except as provided under par. (j), if the operation of a day care center under
25par. (b) 1. ceases within 5 years after the date on which the construction of the day
1care center is completed, a claimant who receives credits under par. (b) 1. and 2. for
2the construction and operation of such a day care center shall add to the claimant's
3liability for taxes imposed under s. 71.02 an amount equal to the total amount of the
4credits received under par. (b) 1. and 2. multiplied by the following percentage:
AB183-ASA1,4,65
1. If the operation of the day care center ceases during the first year after the
6date on which the construction of the day care center is completed, 100%.
AB183-ASA1,4,87
2. If the operation of the day care center ceases during the 2nd year after the
8date on which the construction of the day care center is completed, 80%.
AB183-ASA1,4,109
3. If the operation of the day care center ceases during the 3rd year after the
10date on which the construction of the day care center is completed, 60%.
AB183-ASA1,4,1211
4. If the operation of the day care center ceases during the 4th year after the
12date on which the construction of the day care center is completed, 40%.
AB183-ASA1,4,1413
5. If the operation of the day care center ceases during the 5th year after the
14date on which the construction of the day care center is completed, 20%.
AB183-ASA1,4,2115
(j) Paragraph (i) does not apply to a claimant whose business ceases operation
16within 5 years after the date on which the construction of the claimant's day care
17center is completed; or whose day care center ceases operation for not more than 30
18consecutive days in a taxable year; or who presents evidence to the department of
19revenue that the majority of the claimant's employees with children who are eligible
20to enroll in the claimant's day care center do not want to enroll their children in the
21claimant's day care center.
AB183-ASA1, s. 3
22Section
3. 71.10 (4) (cp) of the statutes is created to read:
AB183-ASA1,4,2323
71.10
(4) (cp) The day care center credit under s. 71.07 (5d).
AB183-ASA1,5,15
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).
AB183-ASA1,5,1717
71.28
(5d) Day care center credit. (a) In this subsection:
AB183-ASA1,5,1818
1. "Claimant" means a person who files a claim under this subsection.
AB183-ASA1,5,2019
2. "Equipment" means equipment that is depreciable property for income tax
20or franchise tax purposes.
AB183-ASA1,5,2221
(b) A claimant may claim as a credit against the tax imposed under s. 71.23 any
22of the following:
AB183-ASA1,6,223
1. An amount equal to 50% of the amount paid by the claimant during the
24taxable year to construct, and to purchase equipment for the use at, a licensed day
1care center under s. 48.65 that is owned and operated by the claimant to care for the
2children of the claimant's employees during the employees' working hours.
AB183-ASA1,6,83
2. An amount that is equal to the amount paid by the claimant to operate the
4claimant's day care center for the taxable year; minus any amount paid by an
5employee of the claimant to reimburse the claimant for any amount paid by the
6claimant under this subdivision; multiplied by 50%. A claimant may claim and be
7allocated a credit under this subdivision regardless of whether the claimant has
8claimed or been allocated a credit under subd. 1.
AB183-ASA1,6,149
3. An amount that is equal to the amount paid by the claimant during the
10taxable year to a licensed day care center under s. 48.65, other than a day care center
11as described under subd. 1., to provide care for the children of the claimant's
12employees during the employees' working hours; minus any amount paid by an
13employee of the claimant to reimburse the claimant for any amount paid by the
14claimant under this subdivision; multiplied by 50%.
AB183-ASA1,6,1615
(c) Except as provided in par. (d), the amount of the credit under this subsection
16shall not exceed $20,000 in a taxable year for each claimant.
AB183-ASA1,6,2117
(d) Claimants who jointly construct, equip, or operate a licensed day care center
18may jointly claim the credit as provided under this subsection. Claimants who jointly
19claim a credit under par. (b) may apportion the amount of the credit among the joint
20claimants in any manner that the joint claimants choose. The total amount of the
21credit for the joint claimants shall not exceed $20,000 in a taxable year.
AB183-ASA1,6,2322
(e) Subsection (4) (e), as it applies to the credit under sub. (4), applies to the
23credit under this subsection.
AB183-ASA1,7,424
(f) If a credit computed under this subsection is not entirely offset against
25income or franchise taxes otherwise due, the unused balance may be carried forward
1and credited against income or franchise taxes otherwise due for the following 5
2taxable years to the extent not offset by those taxes otherwise due in all intervening
3years between the year in which the expense was paid and the year in which the
4carry-forward credit is claimed.
AB183-ASA1,7,125
(g) Partnerships, limited liability companies, and tax-option corporations may
6not claim the credit under this subsection, but the eligibility for, and the amount of,
7the credit are based on their payment of expenses under par. (b). A partnership,
8limited liability company, or tax-option corporation shall compute the amount of
9credit that each of its partners, members, or shareholders may claim and shall
10provide that information to each of them. Partners, members of limited liability
11companies, and shareholders of tax-option corporations may claim the credit in
12proportion to their ownership interest.
AB183-ASA1,7,1413
(h) Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies
14to the credit under this subsection.
AB183-ASA1,7,2015
(i) Except as provided under par. (j), if the operation of a day care center under
16par. (b) 1. ceases within 5 years after the date on which the construction of the day
17care center is completed, a claimant who receives credits under par. (b) 1. and 2. for
18the construction and operation of such a day care center shall add to the claimant's
19liability for taxes imposed under s. 71.23 an amount equal to the total amount of the
20credits received under par. (b) 1. and 2. multiplied by the following percentage:
AB183-ASA1,7,2221
1. If the operation of the day care center ceases during the first year after the
22date on which the construction of the day care center is completed, 100%.
AB183-ASA1,7,2423
2. If the operation of the day care center ceases during the 2nd year after the
24date on which the construction of the day care center is completed, 80%.
AB183-ASA1,8,2
13. If the operation of the day care center ceases during the 3rd year after the
2date on which the construction of the day care center is completed, 60%.
AB183-ASA1,8,43
4. If the operation of the day care center ceases during the 4th year after the
4date on which the construction of the day care center is completed, 40%.
AB183-ASA1,8,65
5. If the operation of the day care center ceases during the 5th year after the
6date on which the construction of the day care center is completed, 20%.
AB183-ASA1,8,137
(j) Paragraph (i) does not apply to a claimant whose business ceases operation
8within 5 years after the date on which the construction of the claimant's day care
9center is completed; or whose day care center ceases operation for not more than 30
10consecutive days in a taxable year; or who presents evidence to the department of
11revenue that the majority of the claimant's employees with children who are eligible
12to enroll in the claimant's day care center do not want to enroll their children in the
13claimant's day care center.
AB183-ASA1, s. 6
14Section
6. 71.30 (3) (dm) of the statutes is created to read:
AB183-ASA1,8,1515
71.30
(3) (dm) The day care center credit under s. 71.28 (5d).
AB183-ASA1, s. 7
16Section
7. 71.45 (2) (a) 10. of the statutes is amended to read:
AB183-ASA1,8,2217
71.45
(2) (a) 10. By adding to federal taxable income the amount of credit
18computed under s. 71.47 (1dd) to (1dx)
and (5d) and not passed through by a
19partnership, limited liability company or tax-option corporation that has added that
20amount to the partnership's, limited liability company's or tax-option corporation's
21income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under
22s. 71.47 (1), (3), (4) and (5).
AB183-ASA1,8,2424
71.47
(5d) Day care center credit. (a) In this subsection:
AB183-ASA1,8,2525
1. "Claimant" means a person who files a claim under this subsection.
AB183-ASA1,9,2
12. "Equipment" means equipment that is depreciable property for income tax
2or franchise tax purposes.
AB183-ASA1,9,43
(b) A claimant may claim as a credit against the tax imposed under s. 71.43 any
4of the following:
AB183-ASA1,9,85
1. An amount equal to 50% of the amount paid by the claimant during the
6taxable year to construct, and to purchase equipment for the use at, a licensed day
7care center under s. 48.65 that is owned and operated by the claimant to care for the
8children of the claimant's employees during the employees' working hours.
AB183-ASA1,9,149
2. An amount that is equal to the amount paid by the claimant to operate the
10claimant's day care center for the taxable year; minus any amount paid by an
11employee of the claimant to reimburse the claimant for any amount paid by the
12claimant under this subdivision; multiplied by 50%. A claimant may claim and be
13allocated a credit under this subdivision regardless of whether the claimant has
14claimed or been allocated a credit under subd. 1.
AB183-ASA1,9,2015
3. An amount that is equal to the amount paid by the claimant during the
16taxable year to a licensed day care center under s. 48.65, other than a day care center
17as described under subd. 1., to provide care for the children of the claimant's
18employees during the employees' working hours; minus any amount paid by an
19employee of the claimant to reimburse the claimant for any amount paid by the
20claimant under this subdivision; multiplied by 50%.
AB183-ASA1,9,2221
(c) Except as provided in par. (d), the amount of the credit under this subsection
22shall not exceed $20,000 in a taxable year for each claimant.
AB183-ASA1,9,2523
(d) Claimants who jointly construct, equip, or operate a licensed day care center
24may jointly claim the credit as provided under this subsection. Claimants who jointly
25claim a credit under par. (b) may apportion the amount of the credit among the joint
1claimants in any manner that the joint claimants choose. The total amount of the
2credit for the joint claimants shall not exceed $20,000 in a taxable year.
AB183-ASA1,10,43
(e) Section 71.28 (4) (e), as it applies to the credit under s. 71.28 (4), applies to
4the credit under this subsection.
AB183-ASA1,10,105
(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 paid and the year in which the
10carry-forward credit is claimed.
AB183-ASA1,10,1811
(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 their payment of expenses 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.
AB183-ASA1,10,2019
(h) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4),
20applies to the credit under this subsection.
AB183-ASA1,11,221
(i) Except as provided under par. (j), if the operation of a day care center under
22par. (b) 1. ceases within 5 years after the date on which the construction of the day
23care center is completed, a claimant who receives credits under par. (b) 1. and 2. for
24the construction and operation of such a day care center shall add to the claimant's
1liability for taxes imposed under s. 71.43 an amount equal to the total amount of the
2credits received under par. (b) 1. and 2. multiplied by the following percentage:
AB183-ASA1,11,43
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%.
AB183-ASA1,11,65
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%.
AB183-ASA1,11,87
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%.
AB183-ASA1,11,109
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%.
AB183-ASA1,11,1211
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%.
AB183-ASA1,11,1913
(j) Paragraph (i) does not apply to a claimant whose business ceases operation
14within 5 years after the date on which the construction of the claimant's day care
15center is completed; or whose day care center ceases operation for not more than 30
16consecutive days in a taxable year; or who presents evidence to the department of
17revenue that the majority of the claimant's employees with children who are eligible
18to enroll in the claimant's day care center do not want to enroll their children in the
19claimant's day care center.
AB183-ASA1, s. 9
20Section
9. 71.49 (1) (dm) of the statutes is created to read:
AB183-ASA1,11,2121
71.49
(1) (dm) The day care center credit under s. 71.47 (5d).
AB183-ASA1,12,1223
77.92
(4) "Net business income", with respect to a partnership, means taxable
24income as calculated under section
703 of the Internal Revenue Code; plus the items
25of income and gain under section
702 of the Internal Revenue Code, including taxable
1state and municipal bond interest and excluding nontaxable interest income or
2dividend income from federal government obligations; minus the items of loss and
3deduction under section
702 of the Internal Revenue Code, except items that are not
4deductible under s. 71.21; plus guaranteed payments to partners under section
707 5(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
6(2di), (2dj), (2dL), (2dr), (2ds), (2dx)
and, (3s)
, and (5d); and plus or minus, as
7appropriate, transitional adjustments, depreciation differences and basis
8differences under s. 71.05 (13), (15), (16), (17) and (19); but excluding income, gain,
9loss and deductions from farming. "Net business income", with respect to a natural
10person, estate or trust, means profit from a trade or business for federal income tax
11purposes and includes net income derived as an employee as defined in section
3121 12(d) (3) of the Internal Revenue Code.
AB183-ASA1,12,1714
(1)
Day care center credit. This act first applies to taxable years beginning
15on January 1 of the year in which this subsection takes effect, except that if this
16subsection takes effect after July 31 this act first applies to taxable years beginning
17on January 1 of the year following the year in which this subsection takes effect.