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2005 - 2006 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 2,
TO 2005 ASSEMBLY BILL 954
February 28, 2006 - Offered by Representative Moulton.
AB954-ASA2,1,6
1An Act to amend 71.05 (6) (a) 15., 71.08 (1) (intro.), 71.21 (4), 71.26 (2) (a), 71.34
2(1) (g), 71.45 (2) (a) 10. and 77.92 (4); and
to create 71.07 (5e), 71.10 (4) (gxx),
371.28 (5e), 71.30 (3) (epa), 71.47 (5e), 71.49 (1) (epa) and 560.204 of the statutes;
4relating to: an income and franchise tax credit for workplace wellness
5programs, granting rule-making authority, and requiring the exercise of
6rule-making authority.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB954-ASA2, s. 1
7Section
1. 71.05 (6) (a) 15. of the statutes is amended to read:
AB954-ASA2,1,128
71.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
9(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3n), (3s), (3t), (5b),
and (5d)
, and (5e) 10and not passed through by a partnership, limited liability company, or tax-option
11corporation that has added that amount to the partnership's, company's, or
12tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).
AB954-ASA2,2,32
71.07
(5e) Workplace wellness program credit. (a)
Definitions. In this
3subsection:
AB954-ASA2,2,44
1. "Claimant" means a person who files a claim under this subsection.
AB954-ASA2,2,65
2. "Workplace wellness program" means a health or fitness program, as defined
6by rule under s. 560.204 (4), and includes the following programs or services:
AB954-ASA2,2,77
a. Smoking cessation.
AB954-ASA2,2,88
b. Weight management.
AB954-ASA2,2,99
c. Stress management.
AB954-ASA2,2,1010
d. Health risk assessments.
AB954-ASA2,2,1111
e. Health screenings.
AB954-ASA2,2,1212
f. Nutrition education.
AB954-ASA2,2,1313
g. Health or fitness incentive programs.
AB954-ASA2,2,2014
(b)
Filing claims. Subject to the limitations provided in this subsection and s.
15560.204, a claimant may claim as a credit against the taxes imposed under s. 71.02
16or 71.08, up to the amount of those taxes, in each taxable year for 3 years, an amount
17that is equal to 30 percent of the amount the claimant paid in the taxable year to
18provide a workplace wellness program to any of the claimant's employees who are
19employed in this state, not including any amount paid to acquire, construct,
20rehabilitate, remodel, or repair real property.
AB954-ASA2,2,2521
(c)
Limitations. 1. The maximum amount of the credits that may be claimed
22under this subsection and ss. 71.28 (5e) and 71.47 (5e) in any taxable year is
23$1,000,000 for all claimants who employ 50 or fewer employees in the taxable year
24and $1,000,000 for all claimants who employ more than 50 employees in the taxable
25year.
AB954-ASA2,3,8
12. Partnerships, limited liability companies, and tax-option corporations may
2not claim the credit under this subsection, but the eligibility for, and the amount of,
3the credit are based on their payment of amounts under par. (b). A partnership,
4limited liability company, or tax-option corporation shall compute the amount of
5credit that each of its partners, members, or shareholders may claim and shall
6provide that information to each of them. Partners, members of limited liability
7companies, and shareholders of tax-option corporations may claim the credit in
8proportion to their ownership interests.
AB954-ASA2,3,109
(d)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
10s. 71.28 (4), applies to the credit under this subsection.
AB954-ASA2,3,2113
71.08
(1) Imposition. (intro.) If the tax imposed on a natural person, married
14couple filing jointly, trust, or estate under s. 71.02, not considering the credits under
15ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3m), (3n), (3s),
16(3t), (5b), (5d),
(5e), (6), (6e), and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds),
17(1dx), (1fd), (2m), (3), (3n), and (3t) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds),
18(1dx), (1fd), (2m), (3), (3n), and (3t) and subchs. VIII and IX and payments to other
19states under s. 71.07 (7), is less than the tax under this section, there is imposed on
20that natural person, married couple filing jointly, trust, or estate, instead of the tax
21under s. 71.02, an alternative minimum tax computed as follows:
AB954-ASA2, s. 4
22Section
4. 71.10 (4) (gxx) of the statutes is created to read:
AB954-ASA2,3,2323
71.10
(4) (gxx) Workplace wellness program credit under s. 71.07 (5e).
AB954-ASA2,4,3
171.21
(4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
2(2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3n), (3s), (3t), (5b),
(5e), and (5g) and passed
3through to partners shall be added to the partnership's income.
AB954-ASA2,4,236
71.26
(2) (a)
Corporations in general. The "net income" of a corporation means
7the gross income as computed under the Internal Revenue Code as modified under
8sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
9computed under s. 71.28 (1), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c)
107., the amount of the credit under s. 71.28 (3) that the taxpayer added to income
11under this paragraph at the time that the taxpayer first claimed the credit plus the
12amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm),
13(1ds), (1dx), (3g), (3n), (3t), (5b),
(5e), and (5g) and not passed through by a
14partnership, limited liability company, or tax-option corporation that has added that
15amount to the partnership's, limited liability company's, or tax-option corporation's
16income under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from the sale or
17other disposition of assets the gain from which would be wholly exempt income, as
18defined in sub. (3) (L), if the assets were sold or otherwise disposed of at a gain and
19minus deductions, as computed under the Internal Revenue Code as modified under
20sub. (3), plus or minus, as appropriate, an amount equal to the difference between
21the federal basis and Wisconsin basis of any asset sold, exchanged, abandoned, or
22otherwise disposed of in a taxable transaction during the taxable year, except as
23provided in par. (b) and s. 71.45 (2) and (5).
AB954-ASA2,5,2
171.28
(5e) Workplace wellness program credit. (a)
Definitions. In this
2subsection:
AB954-ASA2,5,33
1. "Claimant" means a person who files a claim under this subsection.
AB954-ASA2,5,54
2. "Workplace wellness program" means a health or fitness program, as defined
5by rule under s. 560.204 (4), and includes the following programs or services:
AB954-ASA2,5,66
a. Smoking cessation.
AB954-ASA2,5,77
b. Weight management.
AB954-ASA2,5,88
c. Stress management.
AB954-ASA2,5,99
d. Health risk assessments.
AB954-ASA2,5,1010
e. Health screenings.
AB954-ASA2,5,1111
f. Nutrition education.
AB954-ASA2,5,1212
g. Health or fitness incentive programs.
AB954-ASA2,5,1913
(b)
Filing claims. Subject to the limitations provided in this subsection and s.
14560.204, a claimant may claim as a credit against the taxes imposed under s. 71.23,
15up to the amount of those taxes, in each taxable year for 3 years, an amount that is
16equal to 30 percent of the amount the claimant paid in the taxable year to provide
17a workplace wellness program to any of the claimant's employees who are employed
18in this state, not including any amount paid to acquire, construct, rehabilitate,
19remodel, or repair real property.
AB954-ASA2,5,2420
(c)
Limitations. 1. The maximum amount of the credits that may be claimed
21under this subsection and ss. 71.07 (5e) and 71.47 (5e) in any taxable year is
22$1,000,000 for all claimants who employ 50 or fewer employees in the taxable year
23and $1,000,000 for all claimants who employ more than 50 employees in the taxable
24year.
AB954-ASA2,6,8
12. Partnerships, limited liability companies, and tax-option corporations may
2not claim the credit under this subsection, but the eligibility for, and the amount of,
3the credit are based on their payment of amounts under par. (b). A partnership,
4limited liability company, or tax-option corporation shall compute the amount of
5credit that each of its partners, members, or shareholders may claim and shall
6provide that information to each of them. Partners, members of limited liability
7companies, and shareholders of tax-option corporations may claim the credit in
8proportion to their ownership interests.
AB954-ASA2,6,109
(d)
Administration. Subsection (4) (e) to (h), as it applies to the credit under
10sub. (4), applies to the credit under this subsection.
AB954-ASA2, s. 8
11Section
8. 71.30 (3) (epa) of the statutes is created to read:
AB954-ASA2,6,1212
71.30
(3) (epa) Workplace wellness program credit under s. 71.28 (5e).
AB954-ASA2,6,1715
71.34
(1) (g) An addition shall be made for credits computed by a tax-option
16corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g),
17(3n), (3t), (5b),
(5e), and (5g) and passed through to shareholders.
AB954-ASA2,6,2520
71.45
(2) (a) 10. By adding to federal taxable income the amount of credit
21computed under s. 71.47 (1dd) to (1dx), (3n), (5b),
(5e), and (5g) and not passed
22through by a partnership, limited liability company, or tax-option corporation that
23has added that amount to the partnership's, limited liability company's, or
24tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) and the amount of
25credit computed under s. 71.47 (1), (3), (3t), (4), and (5).
AB954-ASA2,7,32
71.47
(5e) Workplace wellness program credit. (a)
Definitions. In this
3subsection:
AB954-ASA2,7,44
1. "Claimant" means a person who files a claim under this subsection.
AB954-ASA2,7,65
2. "Workplace wellness program" means a health or fitness program, as defined
6by rule under s. 560.204 (4), and includes the following programs or services:
AB954-ASA2,7,77
a. Smoking cessation.
AB954-ASA2,7,88
b. Weight management.
AB954-ASA2,7,99
c. Stress management.
AB954-ASA2,7,1010
d. Health risk assessments.