LRBs0099/1
JK:jld:rs
2007 - 2008 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2007 ASSEMBLY BILL 235
June 18, 2007 - Offered by Representative Moulton.
AB235-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 (5i), 71.10 (4) (cs), 71.28 (5i), 71.30 (3)
3(epa), 71.47 (5i), 71.49 (1) (epa) and 560.204 of the statutes; relating to: an
4income and franchise tax credit for workplace wellness programs, granting
5rule-making authority, and requiring the exercise of rule-making authority.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB235-ASA1, s. 1 6Section 1. 71.05 (6) (a) 15. of the statutes is amended to read:
AB235-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), (3w), (5b), (5d), and
9(5e), (5f), and (5h), and (5i) and not passed through by a partnership, limited liability
10company, or tax-option corporation that has added that amount to the partnership's,
11company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).
AB235-ASA1, s. 2 12Section 2. 71.07 (5i) of the statutes is created to read:
AB235-ASA1,2,2
171.07 (5i) Workplace wellness program credit. (a) Definitions. In this
2subsection:
AB235-ASA1,2,33 1. "Claimant" means a person who files a claim under this subsection.
AB235-ASA1,2,84 2. "Health risk assessment" means a computer-based health-promotion tool
5consisting of a questionnaire; a biometric heath screening to measure vital health
6statistics, including blood pressure, cholesterol, glucose, weight, and height; a
7formula for estimating health risks; an advice database; and a means to generate
8reports.
AB235-ASA1,2,119 3. "Workplace wellness program" means a health or fitness program, as defined
10by rule under s. 560.204 (4), that is provided with health risk assessments and may
11include any of the following programs or services:
AB235-ASA1,2,1212 a. Smoking cessation.
AB235-ASA1,2,1313 b. Weight management.
AB235-ASA1,2,1414 c. Stress management.
AB235-ASA1,2,1515 d. Worker injury prevention programs.
AB235-ASA1,2,1616 e. Health screenings.
AB235-ASA1,2,1717 f. Nutrition education.
AB235-ASA1,2,1818 g. Health or fitness incentive programs.
AB235-ASA1,2,2119 (b) Filing claims. Subject to the limitations provided in this subsection and s.
20560.204, a claimant may claim as a credit against the taxes imposed under s. 71.02,
21up to the amount of those taxes, an amount that is equal to the following:
AB235-ASA1,3,222 1. For a workplace wellness program that the claimant first provides after
23December 31, 2007, 30 percent of the amount that the claimant paid in the taxable
24year to provide the workplace wellness program to the claimant's employees who are

1employed in this state, not including any amount paid to acquire, construct,
2rehabilitate, remodel, or repair real property.
AB235-ASA1,3,73 2. For a workplace wellness program that the claimant provided prior to
4January 1, 2008, to the claimant's employees who are employed in this state, 30
5percent of any increase in the claimant's expenditures related to expanding the
6workplace wellness program, not including any amount paid to acquire, construct,
7rehabilitate, remodel, or repair real property.
AB235-ASA1,3,128 (c) Limitations. 1. The maximum amount of the credits that may be claimed
9under this subsection and ss. 71.28 (5i) and 71.47 (5i) in any taxable year is
10$2,500,000 for all claimants who employ 50 or fewer employees in the taxable year
11and $2,500,000 for all claimants who employ more than 50 employees in the taxable
12year.
AB235-ASA1,3,1413 2. No claimant may claim the credit under this subsection for more than 3
14taxable years.
AB235-ASA1,3,2015 3. For purposes of par. (b) 2., the amount of a claimant's increased expenditures
16related to expanding a workplace wellness program is the amount the claimant paid
17to provide the workplace wellness program in the taxable year for which the claimant
18claims a credit under par. (b) 2., less the amount that the claimant paid to provide
19the workplace wellness program in the taxable year immediately preceding the
20taxable year for which the claimant first claimed a credit under par. (b) 2.
AB235-ASA1,4,321 4. Partnerships, limited liability companies, and tax-option corporations may
22not claim the credit under this subsection, but the eligibility for, and the amount of,
23the credit are based on their payment of amounts under par. (b). A partnership,
24limited liability company, or tax-option corporation shall compute the amount of
25credit that each of its partners, members, or shareholders may claim and shall

1provide that information to each of them. Partners, members of limited liability
2companies, and shareholders of tax-option corporations may claim the credit in
3proportion to their ownership interests.
AB235-ASA1,4,54 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
5s. 71.28 (4), applies to the credit under this subsection.
AB235-ASA1, s. 3 6Section 3. 71.10 (4) (cs) of the statutes is created to read:
AB235-ASA1,4,77 71.10 (4) (cs) Workplace wellness program credit under s. 71.07 (5i).
AB235-ASA1, s. 4 8Section 4. 71.21 (4) of the statutes is amended to read:
AB235-ASA1,4,119 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
10(2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3n), (3s), (3t), (3w), (5b), (5e), (5f), (5g), and (5h),
11and (5i)
and passed through to partners shall be added to the partnership's income.
AB235-ASA1, s. 5 12Section 5. 71.26 (2) (a) of the statutes is amended to read:
AB235-ASA1,5,513 71.26 (2) (a) Corporations in general. The "net income" of a corporation means
14the gross income as computed under the Internal Revenue Code as modified under
15sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
16computed under s. 71.28 (1), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c)
177., the amount of the credit under s. 71.28 (3) that the taxpayer added to income
18under this paragraph at the time that the taxpayer first claimed the credit plus the
19amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm),
20(1ds), (1dx), (3g), (3n), (3t), (3w), (5b), (5e), (5f), (5g), and (5h), and (5i) and not passed
21through by a partnership, limited liability company, or tax-option corporation that
22has added that amount to the partnership's, limited liability company's, or
23tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus the amount
24of losses from the sale or other disposition of assets the gain from which would be
25wholly exempt income, as defined in sub. (3) (L), if the assets were sold or otherwise

1disposed of at a gain and minus deductions, as computed under the Internal Revenue
2Code as modified under sub. (3), plus or minus, as appropriate, an amount equal to
3the difference between the federal basis and Wisconsin basis of any asset sold,
4exchanged, abandoned, or otherwise disposed of in a taxable transaction during the
5taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).
AB235-ASA1, s. 6 6Section 6. 71.28 (5i) of the statutes is created to read:
AB235-ASA1,5,87 71.28 (5i) Workplace wellness program credit. (a) Definitions. In this
8subsection:
AB235-ASA1,5,99 1. "Claimant" means a person who files a claim under this subsection.
AB235-ASA1,5,1410 2. "Health risk assessment" means a computer-based health-promotion tool
11consisting of a questionnaire; a biometric heath screening to measure vital health
12statistics, including blood pressure, cholesterol, glucose, weight, and height; a
13formula for estimating health risks; an advice database; and a means to generate
14reports.
AB235-ASA1,5,1715 3. "Workplace wellness program" means a health or fitness program, as defined
16by rule under s. 560.204 (4), that is provided with health risk assessments and may
17include any of the following programs or services:
AB235-ASA1,5,1818 a. Smoking cessation.
AB235-ASA1,5,1919 b. Weight management.
AB235-ASA1,5,2020 c. Stress management.
AB235-ASA1,5,2121 d. Worker injury prevention programs.
AB235-ASA1,5,2222 e. Health screenings.
AB235-ASA1,5,2323 f. Nutrition education.
AB235-ASA1,5,2424 g. Health or fitness incentive programs.
AB235-ASA1,6,3
1(b) Filing claims. Subject to the limitations provided in this subsection and s.
2560.204, a claimant may claim as a credit against the taxes imposed under s. 71.23,
3up to the amount of those taxes, an amount that is equal to the following:
AB235-ASA1,6,84 1. For a workplace wellness program that the claimant first provides after
5December 31, 2007, 30 percent of the amount that the claimant paid in the taxable
6year to provide the workplace wellness program to the claimant's employees who are
7employed in this state, not including any amount paid to acquire, construct,
8rehabilitate, remodel, or repair real property.
AB235-ASA1,6,139 2. For a workplace wellness program that the claimant provided prior to
10January 1, 2008, to the claimant's employees who are employed in this state, 30
11percent of any increase in the claimant's expenditures related to expanding the
12workplace wellness program, not including any amount paid to acquire, construct,
13rehabilitate, remodel, or repair real property.
AB235-ASA1,6,1814 (c) Limitations. 1. The maximum amount of the credits that may be claimed
15under this subsection and ss. 71.07 (5i) and 71.47 (5i) in any taxable year is
16$2,500,000 for all claimants who employ 50 or fewer employees in the taxable year
17and $2,500,000 for all claimants who employ more than 50 employees in the taxable
18year.
AB235-ASA1,6,2019 2. No claimant may claim the credit under this subsection for more than 3
20taxable years.
AB235-ASA1,7,221 3. For purposes of par. (b) 2., the amount of a claimant's increased expenditures
22related to expanding a workplace wellness program is the amount the claimant paid
23to provide the workplace wellness program in the taxable year for which the claimant
24claims a credit under par. (b) 2., less the amount that the claimant paid to provide

1the workplace wellness program in the taxable year immediately preceding the
2taxable year for which the claimant first claimed a credit under par. (b) 2.
AB235-ASA1,7,103 4. Partnerships, limited liability companies, and tax-option corporations may
4not claim the credit under this subsection, but the eligibility for, and the amount of,
5the credit are based on their payment of amounts under par. (b). A partnership,
6limited liability company, or tax-option corporation shall compute the amount of
7credit that each of its partners, members, or shareholders may claim and shall
8provide that information to each of them. Partners, members of limited liability
9companies, and shareholders of tax-option corporations may claim the credit in
10proportion to their ownership interests.
AB235-ASA1,7,1211 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
12sub. (4), applies to the credit under this subsection.
AB235-ASA1, s. 7 13Section 7. 71.30 (3) (epa) of the statutes is created to read:
AB235-ASA1,7,1414 71.30 (3) (epa) Workplace wellness program credit under s. 71.28 (5i).
AB235-ASA1, s. 8 15Section 8. 71.34 (1) (g) of the statutes is amended to read:
AB235-ASA1,7,1916 71.34 (1) (g) An addition shall be made for credits computed by a tax-option
17corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g),
18(3n), (3t), (3w), (5b), (5e), (5f), (5g), and (5h) , and (5i) and passed through to
19shareholders.
AB235-ASA1, s. 9 20Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:
AB235-ASA1,8,221 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
22computed under s. 71.47 (1dd) to (1dx), (3n), (3w), (5b), (5e), (5f), (5g), and (5h), and
23(5i)
and not passed through by a partnership, limited liability company, or tax-option
24corporation that has added that amount to the partnership's, limited liability

1company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) and
2the amount of credit computed under s. 71.47 (1), (3), (3t), (4), and (5).
AB235-ASA1, s. 10 3Section 10. 71.47 (5i) of the statutes is created to read:
AB235-ASA1,8,54 71.47 (5i) Workplace wellness program credit. (a) Definitions. In this
5subsection:
AB235-ASA1,8,66 1. "Claimant" means a person who files a claim under this subsection.
AB235-ASA1,8,117 2. "Health risk assessment" means a computer-based health-promotion tool
8consisting of a questionnaire; a biometric heath screening to measure vital health
9statistics, including blood pressure, cholesterol, glucose, weight, and height; a
10formula for estimating health risks; an advice database; and a means to generate
11reports.
AB235-ASA1,8,1412 3. "Workplace wellness program" means a health or fitness program, as defined
13by rule under s. 560.204 (4), and includes health risk assessments and may include
14any of the following programs or services:
AB235-ASA1,8,1515 a. Smoking cessation.
AB235-ASA1,8,1616 b. Weight management.
AB235-ASA1,8,1717 c. Stress management.
AB235-ASA1,8,1818 d. Worker injury prevention programs.
AB235-ASA1,8,1919 e. Health screenings.
AB235-ASA1,8,2020 f. Nutrition education.
AB235-ASA1,8,2121 g. Health or fitness incentive programs.
AB235-ASA1,8,2422 (b) Filing claims. Subject to the limitations provided in this subsection and s.
23560.204, a claimant may claim as a credit against the taxes imposed under s. 71.43,
24up to the amount of those taxes, an amount that is equal to the following:
AB235-ASA1,9,5
11. For a workplace wellness program that the claimant first provides after
2December 31, 2007, 30 percent of the amount that the claimant paid in the taxable
3year to provide the workplace wellness program to the claimant's employees who are
4employed in this state, not including any amount paid to acquire, construct,
5rehabilitate, remodel, or repair real property.
AB235-ASA1,9,106 2. For a workplace wellness program that the claimant provided prior to
7January 1, 2008, to the claimant's employees who are employed in this state, 30
8percent of any increase in the claimant's expenditures related to expanding the
9workplace wellness program, not including any amount paid to acquire, construct,
10rehabilitate, remodel, or repair real property.
AB235-ASA1,9,1511 (c) Limitations. 1. The maximum amount of the credits that may be claimed
12under this subsection and ss. 71.07 (5i) and 71.28 (5i) in any taxable year is
13$2,500,000 for all claimants who employ 50 or fewer employees in the taxable year
14and $2,500,000 for all claimants who employ more than 50 employees in the taxable
15year.
AB235-ASA1,9,1716 2. No claimant may claim the credit under this subsection for more than 3
17taxable years.
AB235-ASA1,9,2318 3. For purposes of par. (b) 2., the amount of a claimant's increased expenditures
19related to expanding a workplace wellness program is the amount the claimant paid
20to provide the workplace wellness program in the taxable year for which the claimant
21claims a credit under par. (b) 2., less the amount that the claimant paid to provide
22the workplace wellness program in the taxable year immediately preceding the
23taxable year for which the claimant first claimed a credit under par. (b) 2.
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