LRBs0521/2
JK:jld&wlj:rs
2005 - 2006 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2005 ASSEMBLY BILL 954
February 13, 2006 - Offered by Representative Moulton.
AB954-ASA1,1,5
1An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a), 71.34 (1) (g), 71.45 (2)
2(a) 10. and 77.92 (4); and
to create 71.07 (5e), 71.10 (4) (gxx), 71.28 (5e), 71.30
3(3) (epa), 71.47 (5e) and 71.49 (1) (epa) of the statutes;
relating to: an income
4and franchise tax credit for workplace wellness programs and requiring the
5exercise of rule-making authority.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB954-ASA1, s. 1
6Section
1. 71.05 (6) (a) 15. of the statutes is amended to read:
AB954-ASA1,1,117
71.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
8(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3n), (3s), (3t), (5b),
and (5d)
, and (5e) 9and not passed through by a partnership, limited liability company, or tax-option
10corporation that has added that amount to the partnership's, company's, or
11tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).
AB954-ASA1,2,2
171.07
(5e) Workplace wellness program credit. (a)
Definitions. In this
2subsection:
AB954-ASA1,2,33
1. "Claimant" means a person who files a claim under this subsection.
AB954-ASA1,2,54
2. "Workplace wellness program" means a health or fitness program, as defined
5by rule by the department, and includes the following programs or services:
AB954-ASA1,2,66
a. Smoking cessation.
AB954-ASA1,2,77
b. Weight management.
AB954-ASA1,2,88
c. Stress management.
AB954-ASA1,2,99
d. Health risk assessments.
AB954-ASA1,2,1010
e. Health screenings.
AB954-ASA1,2,1111
f. Nutrition education.
AB954-ASA1,2,1212
g. Health or fitness incentive programs.
AB954-ASA1,2,1813
(b)
Filing claims. Subject to the limitations provided in this subsection, a
14claimant may claim as a credit against the taxes imposed under s. 71.02, up to the
15amount of those taxes, in each taxable year for 3 years, an amount that is equal to
1630 percent of the amount the claimant paid in the taxable year to provide a workplace
17wellness program to any of the claimant's employees who are employed in this state,
18not including any amount paid for capital improvements.
AB954-ASA1,3,319
(c)
Limitations. 1. The maximum amount of the credits that may be claimed
20under this subsection and ss. 71.28 (5e) and 71.47 (5e) in any taxable year is
21$1,000,000 for all claimants who employ 50 or fewer employees in the taxable year
22and $1,000,000 for all claimants who employ more than 50 employees in the taxable
23year. If the amount of the credits claimed under this subsection in any taxable year
24exceeds the maximum amount provided under this subdivision, the department
25shall reduce the amount of each credit claimed in proportion to the total amount of
1all credits claimed. No credit may be claimed under this subsection unless the
2claimant files an application for the credit with the department on the form and in
3the manner prescribed by the department by rule.
AB954-ASA1,3,114
2. Partnerships, limited liability companies, and tax-option corporations may
5not claim the credit under this subsection, but the eligibility for, and the amount of,
6the credit are based on their payment of amounts under par. (b). A partnership,
7limited liability company, or tax-option corporation shall compute the amount of
8credit that each of its partners, members, or shareholders may claim and shall
9provide that information to each of them. Partners, members of limited liability
10companies, and shareholders of tax-option corporations may claim the credit in
11proportion to their ownership interests.
AB954-ASA1,3,1312
(d)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
13s. 71.28 (4), applies to the credit under this subsection.
AB954-ASA1, s. 3
14Section
3. 71.10 (4) (gxx) of the statutes is created to read:
AB954-ASA1,3,1515
71.10
(4) (gxx) Workplace wellness program credit under s. 71.07 (5e).
AB954-ASA1,3,2018
71.21
(4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
19(2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3n), (3s), (3t), (5b),
(5e), and (5g) and passed
20through to partners shall be added to the partnership's income.
AB954-ASA1,4,1523
71.26
(2) (a)
Corporations in general. The "net income" of a corporation means
24the gross income as computed under the Internal Revenue Code as modified under
25sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
1computed under s. 71.28 (1), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c)
27., the amount of the credit under s. 71.28 (3) that the taxpayer added to income
3under this paragraph at the time that the taxpayer first claimed the credit plus the
4amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm),
5(1ds), (1dx), (3g), (3n), (3t), (5b),
(5e), and (5g) and not passed through by a
6partnership, limited liability company, or tax-option corporation that has added that
7amount to the partnership's, limited liability company's, or tax-option corporation's
8income under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from the sale or
9other disposition of assets the gain from which would be wholly exempt income, as
10defined in sub. (3) (L), if the assets were sold or otherwise disposed of at a gain and
11minus deductions, as computed under the Internal Revenue Code as modified under
12sub. (3), plus or minus, as appropriate, an amount equal to the difference between
13the federal basis and Wisconsin basis of any asset sold, exchanged, abandoned, or
14otherwise disposed of in a taxable transaction during the taxable year, except as
15provided in par. (b) and s. 71.45 (2) and (5).
AB954-ASA1,4,1817
71.28
(5e) Workplace wellness program credit. (a)
Definitions. In this
18subsection:
AB954-ASA1,4,1919
1. "Claimant" means a person who files a claim under this subsection.
AB954-ASA1,4,2120
2. "Workplace wellness program" means a health or fitness program, as defined
21by rule by the department, and includes the following programs or services:
AB954-ASA1,4,2222
a. Smoking cessation.
AB954-ASA1,4,2323
b. Weight management.
AB954-ASA1,4,2424
c. Stress management.
AB954-ASA1,4,2525
d. Health risk assessments.
AB954-ASA1,5,1
1e. Health screenings.
AB954-ASA1,5,22
f. Nutrition education.
AB954-ASA1,5,33
g. Health or fitness incentive programs.
AB954-ASA1,5,94
(b)
Filing claims. Subject to the limitations provided in this subsection, a
5claimant may claim as a credit against the taxes imposed under s. 71.23, up to the
6amount of those taxes, in each taxable year for 3 years, an amount that is equal to
730 percent of the amount the claimant paid in the taxable year to provide a workplace
8wellness program to any of the claimant's employees who are employed in this state,
9not including any amount paid for capital improvements.
AB954-ASA1,5,1910
(c)
Limitations. 1. The maximum amount of the credits that may be claimed
11under this subsection and ss. 71.07 (5e) and 71.47 (5e) in any taxable year is
12$1,000,000 for all claimants who employ 50 or fewer employees in the taxable year
13and $1,000,000 for all claimants who employ more than 50 employees in the taxable
14year. If the amount of the credits claimed under this subsection in any taxable year
15exceeds the maximum amount provided under this subdivision, the department
16shall reduce the amount of each credit claimed in proportion to the total amount of
17all credits claimed. No credit may be claimed under this subsection unless the
18claimant files an application for the credit with the department on the form and in
19the manner prescribed by the department by rule.
AB954-ASA1,6,220
2. Partnerships, limited liability companies, and tax-option corporations may
21not claim the credit under this subsection, but the eligibility for, and the amount of,
22the credit are based on their payment of amounts under par. (b). A partnership,
23limited liability company, or tax-option corporation shall compute the amount of
24credit that each of its partners, members, or shareholders may claim and shall
25provide 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 interests.
AB954-ASA1,6,43
(d)
Administration. Subsection (4) (e) to (h), as it applies to the credit under
4sub. (4), applies to the credit under this subsection.
AB954-ASA1, s. 7
5Section
7. 71.30 (3) (epa) of the statutes is created to read:
AB954-ASA1,6,66
71.30
(3) (epa) Workplace wellness program credit under s. 71.28 (5e).
AB954-ASA1,6,119
71.34
(1) (g) An addition shall be made for credits computed by a tax-option
10corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g),
11(3n), (3t), (5b),
(5e), and (5g) and passed through to shareholders.
AB954-ASA1,6,1914
71.45
(2) (a) 10. By adding to federal taxable income the amount of credit
15computed under s. 71.47 (1dd) to (1dx), (3n), (5b),
(5e), and (5g) and not passed
16through by a partnership, limited liability company, or tax-option corporation that
17has added that amount to the partnership's, limited liability company's, or
18tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) and the amount of
19credit computed under s. 71.47 (1), (3), (3t), (4), and (5).
AB954-ASA1,6,2221
71.47
(5e) Workplace wellness program credit. (a)
Definitions. In this
22subsection:
AB954-ASA1,6,2323
1. "Claimant" means a person who files a claim under this subsection.
AB954-ASA1,6,2524
2. "Workplace wellness program" means a health or fitness program, as defined
25by rule by the department, and includes the following programs or services:
AB954-ASA1,7,1
1a. Smoking cessation.
AB954-ASA1,7,22
b. Weight management.
AB954-ASA1,7,33
c. Stress management.
AB954-ASA1,7,44
d. Health risk assessments.