Amendment AA1-ASA1-SB55

SB55-ASA1-AA1,585,18 a. One hundred percent of the amount paid by the individual for medical care insurance. In this subdivision, "medical care insurance" means a medical care insurance policy that covers the individual, his or her spouse, and the individual's dependents and provides surgical, medical, hospital, major medical, or other health service coverage, and includes payments made for medical care benefits under a self-insured plan, but "medical care insurance" does not include hospital indemnity policies or policies with ancillary benefits such as accident benefits or benefits for loss of income resulting from a total or partial inability to work because of illness, sickness, or injury.

SB55-ASA1-AA1,585,21 b. From the amount calculated under subd. 34. a., subtract the amounts deducted from gross income for medical care insurance in the calculation of federal adjusted gross income.

SB55-ASA1-AA1,586,8 c. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 34. a. or b., by a fraction the numerator of which is the individual's wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual's total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 34. c., for married persons filing separately "wages, salary, tips, unearned income, and net earnings from a trade or business" means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly "wages, salary, tips, unearned income, and net earnings from a trade or business" means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.

SB55-ASA1-AA1,586,11 d. Reduce the amount calculated under subd. 34. a., b., or c. to the individual's aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.".

SB55-ASA1-AA1,586,12 975. Page 730, line 23: after "(5)" insert "or 560.798 (3)".

SB55-ASA1-AA1,586,13 976. Page 731, line 2: after "(e)" insert "or 560.798".

SB55-ASA1-AA1,586,14 977. Page 732, line 16: after "(5)" insert "or 560.798 (3)".

SB55-ASA1-AA1,586,15 978. Page 733, line 18: after "(5)" insert "or 560.798 (3)".

SB55-ASA1-AA1,586,16 979. Page 734, line 2: after "(5)" insert "or 560.798 (3)".

SB55-ASA1-AA1,586,17 980. Page 734, line 8: after that line insert:

SB55-ASA1-AA1,586,18 " Section 2146m. 71.07 (2dx) (a) 2. of the statutes is amended to read:

SB55-ASA1-AA1,586,22 71.07 (2dx) (a) 2. "Development zone" means a development zone under s. 560.70, a development opportunity zone under s. 560.795 or , an enterprise development zone under s. 560.797, or an agricultural development zone under s. 560.798.".

SB55-ASA1-AA1,586,23 981. Page 734, line 22: after that line insert:

SB55-ASA1-AA1,586,24 " Section 2147d. 71.07 (2dx) (b) (intro.) of the statutes is amended to read:

SB55-ASA1-AA1,587,5 71.07 (2dx) (b) Credit. (intro.) Except as provided in s. 73.03 (35) and subject to s. 560.785, for any taxable year for which the person is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3) or, 560.797 (4) or 560.798 (3), any person may claim as a credit against taxes imposed on the person's income from the person's business activities in a development zone the following amounts:

SB55-ASA1-AA1, s. 2147g Section 2147g. 71.07 (2dx) (c) of the statutes is amended to read:

SB55-ASA1-AA1,587,16 71.07 (2dx) (c) Credit precluded. If the certification of a person for tax benefits under s. 560.765 (3) or, 560.797 (4) or 560.798 (3) is revoked, or if the person becomes ineligible for tax benefits under s. 560.795 (3), that person may not claim credits under this subsection for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years and that person may not carry over unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the person becomes ineligible for tax benefits; or succeeding taxable years.

SB55-ASA1-AA1, s. 2147h Section 2147h. 71.07 (2dx) (d) of the statutes is amended to read:

SB55-ASA1-AA1,587,24 71.07 (2dx) (d) Carry-over precluded. If a person who is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3) or, 560.797 (4) or 560.798 (3) for tax benefits ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.".

SB55-ASA1-AA1,588,1 982. Page 735, line 20: after that line insert:

SB55-ASA1-AA1,588,2 " Section 2148m. 71.07 (5r) of the statutes is created to read:

SB55-ASA1-AA1,588,3 71.07 (5r) Education credit. (a) In this subsection:

SB55-ASA1-AA1,588,6 1. "Claimant" means a sole proprietor, a partner, a member of a limited liability company, or a shareholder of a tax-option corporation who files a claim under this subsection.

SB55-ASA1-AA1,588,8 2. "Degree-granting program" means an educational program for which an associate, a bachelor's, or a graduate degree is awarded upon successful completion.

SB55-ASA1-AA1,588,9 3. "Family member" has the meaning given in s. 157.061 (7).

SB55-ASA1-AA1,588,12 4. "Managing employee" means an individual who wholly or partially exercises operational or managerial control over, or who directly or indirectly conducts, the operation of the claimant's business.

SB55-ASA1-AA1,588,13 5. "Poverty line" has the meaning given under s. 49.001 (5).

SB55-ASA1-AA1,588,14 6. "Qualified postsecondary institution" means all of the following:

SB55-ASA1-AA1,588,17 a. A University of Wisconsin System institution, a technical college system institution, or a regionally accredited 4-year nonprofit college or university having its regional headquarters and principal place of business in this state.

SB55-ASA1-AA1,588,19 b. A school approved under s. 45.54, if the school has a physical presence, and the delivery of education occurs, in this state.

SB55-ASA1-AA1,588,21 (b) Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02 an amount equal to the following:

SB55-ASA1-AA1,589,2 1. Fifty percent of the tuition that the claimant paid or incurred during the taxable year for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a degree-granting program.

SB55-ASA1-AA1,589,8 2. Seventy five percent of the tuition that the claimant paid or incurred during the taxable year for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a degree-granting program and if the individual's taxable income in the year prior to commencing participation in the education program in connection with which a credit is claimed is not more than 185% of the poverty line.

SB55-ASA1-AA1,589,11 (c) A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant excluded under s. 71.05 (6) (b) 28. or under section 127 of the Internal Revenue Code.

SB55-ASA1-AA1,589,14 (cm) A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant paid or incurred for a family member of the claimant or for a family member of a managing employee unless all of the following apply:

SB55-ASA1-AA1,589,18 1. The family member was employed an average of at least 20 hours a week as an employee of the claimant, or the claimant's business, during the one-year period prior to commencing participation in the education program in connection with which the claimant claims a credit under par. (b).

SB55-ASA1-AA1,589,20 2. The family member is enrolled in a degree-granting program that is substantially related to the claimant's business.

SB55-ASA1-AA1,589,22 3. The family member is making satisfactory progress towards completing the degree-granting program under subd. 2.

SB55-ASA1-AA1,589,24 (d) The carry-over provisions of s. 71.28 (4) (e) and (f), as they apply to the credit under s. 71.28 (4), apply to the credit under this subsection.

SB55-ASA1-AA1,590,8 (e) Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of tuition under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.

SB55-ASA1-AA1,590,10 (f) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.".

SB55-ASA1-AA1,590,11 983. Page 735, line 20: after that line insert:

SB55-ASA1-AA1,590,12 " Section 2148n. 71.07 (5d) of the statutes is created to read:

SB55-ASA1-AA1,590,14 71.07 (5d) Industrial, service, and skilled trades apprenticeship credit. (a) In this subsection:

SB55-ASA1-AA1,590,21 1. "Apprentice" means a person who participates in a 2-year to 5-year apprenticeship program, as determined and approved by the department, in which the person receives instruction leading to qualification as a skilled journeyman in any industrial manufacturing trade or private sector service occupation or receives instruction in the construction trades leading to qualification as a skilled journeyman carpenter, including a floor coverer, millwright, or pile driver; laborer; ironworker; or painter, including a taper.

SB55-ASA1-AA1,590,23 2. "Claimant" means a person who files a claim under this subsection and who is a trades trainer, as determined and approved by the department.

SB55-ASA1-AA1,590,24 3. "Department" means the department of workforce development.

SB55-ASA1-AA1,591,8 (b) Subject to the limitations provided in this subsection, for taxable years beginning after June 30, 2003, a claimant may claim as a credit against the taxes imposed under s. 71.02 an amount that is equal to 5% of the wages that the claimant paid to an apprentice in the taxable year, but not to exceed $1,400, except that a claimant may claim as a credit against the taxes imposed under s. 71.02 an amount that is equal to 8% of the wages that the claimant paid to an apprentice in the taxable year in which the apprentice completes an apprenticeship program, but not to exceed $3,000.

SB55-ASA1-AA1,591,12 (c) No claimant may receive a credit under this subsection unless the claimant enters into an agreement with the department permitting the department to post on the department's Internet site the claimant's name and address and the number of apprentices employed by the claimant during the calendar year.

SB55-ASA1-AA1,591,23 (d) This subsection does not apply to taxable years that begin after June 30, 2006, if the number of employers training apprentices in department-approved programs does not increase by more than 40% from July 1, 2003, to June 30, 2006, as determined by the department, except that a claimant who has claimed a credit for an apprentice's wages in any taxable year beginning before July 1, 2006, may continue to claim a credit for the apprentice's wages in succeeding taxable years, until the apprentice completes the apprenticeship program. As soon as practicable after June 30, 2006, the department shall certify to the department of revenue the number of employers training apprentices in approved programs on July 1, 2003, and the number of employers training apprentices in approved programs on June 30, 2006.

SB55-ASA1-AA1,591,25 (e) The carry-over provisions of s. 71.28 (4) (e) and (f), as they apply to the credit under s. 71.28 (4), apply to the credit under this subsection.

SB55-ASA1-AA1,592,8 (f) Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of wages under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

SB55-ASA1-AA1,592,10 (g) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.".

SB55-ASA1-AA1,592,11 984. Page 735, line 20: after that line insert:

SB55-ASA1-AA1,592,12 " Section 2148m. 71.07 (5) (a) 15. of the statutes is amended to read:

SB55-ASA1-AA1,592,18 71.07 (5) (a) 15. The amount claimed as a deduction for medical care insurance under section 213 of the Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 17. to 20. and 34. and the amount claimed as a deduction for a long-term care insurance policy under section 213 (d) (1) (D) of the Internal Revenue Code, as defined in section 7702B (b) of the Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 26.".

SB55-ASA1-AA1,592,19 985. Page 735, line 20: after that line insert:

SB55-ASA1-AA1,592,20 " Section 2148p. 71.07 (5s) of the statutes is created to read:

SB55-ASA1-AA1,592,22 71.07 (5s) Conservation land, conservation easement tax credit. (a) Definitions. In this subsection:

SB55-ASA1-AA1,593,3 1. "Claimant" means an individual, a sole proprietor, a partner, a member of a limited liability company, or a shareholder of a tax-option corporation who files a claim under this subsection.

SB55-ASA1-AA1,593,4 2. "Conservation easement" has the meaning given in s. 700.40 (1) (a).

SB55-ASA1-AA1,593,8 3. "Local governmental unit" means a political subdivision of this state, a special purpose district in this state, an instrumentality or corporation of such a political subdivision or special purpose district, a combination or subunit of any of the foregoing, or an instrumentality of the state and any of the foregoing.

SB55-ASA1-AA1,593,10 4. "Nonprofit conservation organization" has the meaning given in s. 23.0955 (1).

SB55-ASA1-AA1,593,12 5. "Qualified appraisal" means any appraisal meeting the requirements of the regulations prescribed under section 170 (a) (1) of the Internal Revenue Code.

SB55-ASA1-AA1,593,14 6. "Qualified conservation contribution" has the meaning given in section 170 (h) of the Internal Revenue Code.

SB55-ASA1-AA1,593,21 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02 an amount equal to 50% of the value, based on a qualified appraisal, of property or a conservation easement, to the extent that the property or easement is a qualified conservation contribution, that is donated to the state, a local governmental unit, or a nonprofit conservation organization in the taxable year in which the donation is made or the easement is granted.

SB55-ASA1-AA1,593,23 (c) Limitations. 1. The maximum credit that a claimant may claim under this subsection in a taxable year is $100,000.

SB55-ASA1-AA1,593,25 2. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

SB55-ASA1-AA1,594,4 3. Section 71.28 (4) (e) and (f), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection, except that with regard to the carry-over provisions in s. 71.28 (4) (f) the maximum number of years that the credit under this subsection may be carried forward is 10 years.

SB55-ASA1-AA1,594,12 4. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on the amount calculated under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.

SB55-ASA1-AA1,594,14 (5) Part-year residents and nonresidents of this state are not eligible for the credit under this subsection.

SB55-ASA1-AA1,594,19 (d) Administration. The department of revenue may enforce the credit under this subsection and may take any action, conduct any proceeding, and proceed as it is authorized in respect to taxes under this chapter. The income tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest, and penalties apply to the credit under this subsection.".

SB55-ASA1-AA1,594,20 986. Page 737, line 24: after that line insert:

SB55-ASA1-AA1,594,21 " Section 2150m. 71.10 (4) (cd) of the statutes is created to read:

SB55-ASA1-AA1,594,22 71.10 (4) (cd) The education credit under s. 71.07 (5r).".

SB55-ASA1-AA1,594,23 987. Page 737, line 24: after that line insert:

SB55-ASA1-AA1,594,24 " Section 2150s. 71.10 (4) (cp) of the statutes is created to read:

SB55-ASA1-AA1,595,2 71.10 (4) (cp) Industrial, service, and skilled trades apprenticeship credit under s. 71.07 (5d).".

SB55-ASA1-AA1,595,3 988. Page 737, line 24: after that line insert:

SB55-ASA1-AA1,595,4 " Section 2150t. 71.10 (3) (a) (title) of the statutes is created to read:

SB55-ASA1-AA1,595,5 71.10 (3) (a) (title) Voluntary payments.

SB55-ASA1-AA1, s. 2150tb Section 2150tb. 71.10 (3) (a) of the statutes is renumbered 71.10 (3) (a) 1. and amended to read:

SB55-ASA1-AA1,595,14 71.10 (3) (a) 1. `Designation on return.' Every Any individual filing an income tax return who has a tax liability or is entitled to a tax refund may designate on the return an additional payment in the amount of $1 or a deduction from any refund due that individual in the amount of $1 for the Wisconsin election campaign fund for the use of eligible candidates under s. 11.50. If the individuals filing a married couple files a joint return have a tax liability or are entitled to a tax refund, each individual spouse may make a designation of $1 under this subsection.

SB55-ASA1-AA1, s. 2150tc Section 2150tc. 71.10 (3) (a) 2. and 3. of the statutes are created to read:

SB55-ASA1-AA1,595,18 71.10 (3) (a) 2. `Designation added to tax owed.' If the individual owes any tax, the individual shall remit in full the tax due and an additional $1 for the Wisconsin election campaign fund when the individual files a tax return.

SB55-ASA1-AA1,595,22 3. `Designation deducted from refund.' Except as provided under par. (c) if the individual is owed a refund for that year after crediting under ss. 71.75 (9) and 71.80 (3), the department of revenue shall deduct $1 for the Wisconsin election campaign fund from the amount of the refund.

SB55-ASA1-AA1, s. 2150te Section 2150te. 71.10 (3) (b) of the statutes is renumbered 71.10 (3) (f) and amended to read:

SB55-ASA1-AA1,596,17 71.10 (3) (f) Administration, certification of amounts confidentiality. The secretary of revenue shall provide a place for those designations on the face of the individual income tax return and shall provide next to that place a statement that a designation will not increase tax liability or reduce a refund. Annually on August 15, the secretary of revenue shall certify to the elections board, the department of administration and the state treasurer under s. 11.50 the total amount of received from all designations made during the preceding fiscal year. If any individual attempts to place any condition or restriction upon a designation, that individual is deemed not to have made a designation on his or her tax return Amounts designated for the Wisconsin election campaign fund under this subsection are not subject to refund to the taxpayer unless the taxpayer submits information to the satisfaction of the department of revenue within 18 months after the date taxes are due or the date the return is filed, whichever is later, that the amount designated is clearly in error. Any refund granted by the department of revenue under this subdivision shall be deducted from the moneys received under this subsection in the fiscal year that the refund is certified. The names of persons making designations under this subsection shall be strictly confidential.

SB55-ASA1-AA1, s. 2150tf Section 2150tf. 71.10 (3) (bm) of the statutes is created to read: