LRB-0471/1
MES:kjf:rs
2005 - 2006 LEGISLATURE
February 17, 2005 - Introduced by Representatives Wood, Kreibich, Hines,
Krawczyk, F. Lasee, McCormick, Moulton, Nass, Ott, Petrowski, Suder and
Vos, cosponsored by Senator Kanavas. Referred to Committee on Ways and
Means. Referred to Joint Survey Committee on Tax Exemptions.
AB106,1,2
1An Act to amend 71.05 (6) (b) 28. (intro.) of the statutes;
relating to: expanding
2the individual income tax deduction for college tuition expenses.
Analysis by the Legislative Reference Bureau
Current law provides a subtraction from federal adjusted gross income for an
amount paid, up to $3,000 per year per student, for tuition to attend a university,
college, technical college, or other school that is approved by the Educational
Approval Board and that is located in this state or that is subject to the
Minnesota-Wisconsin reciprocity agreement. The subtraction is phased out at
certain income levels. Also under current law, nonresidents and part-year residents
of this state may claim a prorated amount of the subtraction based on a fraction, the
numerator of which is the individual's wages, 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, income, and net earnings from a trade or business. The
subtraction is further limited to the total wages, income, and net earnings from a
trade or business taxable by this state.
Under this bill, the subtraction is expanded such that it may be claimed for
tuition expenses at any college, university, or technical college that is approved by
the Educational Approval Board and that is located in Minnesota, Illinois, Iowa, or
Michigan.
This bill will be referred to the Joint Survey Committee on Tax Exemptions for
a detailed analysis, which will be printed as an appendix to this bill.
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:
AB106, s. 1
1Section
1. 71.05 (6) (b) 28. (intro.) of the statutes is amended to read:
AB106,2,92
71.05
(6) (b) 28. (intro.) An amount paid by a claimant for tuition expenses for
3a student who is the claimant or who is the claimant's child and the claimant's
4dependent who is claimed under section
151 (c) of the Internal Revenue Code, to
5attend any university, college, technical college or a school approved under s. 45.54,
6that is located in Wisconsin
or to attend a public vocational school or public
7institution of higher education in, Minnesota
under the Minnesota-Wisconsin
8reciprocity agreement under s. 39.47,
Illinois, Iowa, or Michigan, calculated as
9follows:
AB106,2,1411
(1) This act first applies to taxable years beginning on January 1 of the year
12in which this subsection takes effect, except that if this subsection takes effect after
13July 31, this act first applies to taxable years beginning on January 1 of the year
14following the year in which this subsection takes effect.
