LRB-1412/3
JK:jld:pg
2007 - 2008 LEGISLATURE
April 10, 2007 - Introduced by Representatives Moulton, Kramer, Sheridan, Van
Roy, Vukmir, Nygren, Vruwink, Albers, Musser, Wood, Petersen, Davis, M.
Williams, A. Ott, Petrowski, LeMahieu, Gunderson, Montgomery, Kestell,
Molepske, Townsend, Hines and Kleefisch, cosponsored by Senators Lassa,
Roessler, Plale, Darling, Schultz and Leibham. Referred to Committee on
Small Business.
AB235,1,5
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) (gxx), 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.
Analysis by the Legislative Reference Bureau
This bill creates an income and franchise tax credit for workplace wellness
programs. The amount of the credit is equal to 30 percent of the amount that an
employer pays in the taxable year to provide a workplace wellness program to any
of the employer's employees who are employed in this state. A workplace wellness
program is a health or fitness program, as defined by administrative rule by the
Department of Commerce, that is provided with health risk assessments.
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:
AB235, s. 1
6Section
1. 71.05 (6) (a) 15. of the statutes is amended to read:
AB235,2,5
171.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
2(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3n), (3s), (3t), (3w), (5b), (5d),
and 3(5e), (5f),
and (5h)
, and (5i) and not passed through by a partnership, limited liability
4company, or tax-option corporation that has added that amount to the partnership's,
5company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).
AB235, s. 2
6Section
2. 71.07 (5i) of the statutes is created to read:
AB235,2,87
71.07
(5i) Workplace wellness program credit. (a)
Definitions. In this
8subsection:
AB235,2,99
1. "Claimant" means a person who files a claim under this subsection.
AB235,2,1410
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.
AB235,2,1715
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
17includes the following programs or services:
AB235,2,1818
a. Smoking cessation.
AB235,2,1919
b. Weight management.
AB235,2,2020
c. Stress management.
AB235,2,2121
d. Worker injury prevention programs.
AB235,2,2222
e. Health screenings.
AB235,2,2323
f. Nutrition education.
AB235,2,2424
g. Health or fitness incentive programs.
AB235,3,7
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. 71.02,
3up to the amount of those taxes, in each taxable year for 3 years, an amount that is
4equal to 30 percent of the amount that the claimant paid in the taxable year to
5provide a workplace wellness program to any of the claimant's employees who are
6employed in this state, not including any amount paid to acquire, construct,
7rehabilitate, remodel, or repair real property.
AB235,3,128
(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.
AB235,3,2013
2. Partnerships, limited liability companies, and tax-option corporations may
14not claim the credit under this subsection, but the eligibility for, and the amount of,
15the credit are based on their payment of amounts under par. (b). A partnership,
16limited liability company, or tax-option corporation shall compute the amount of
17credit that each of its partners, members, or shareholders may claim and shall
18provide that information to each of them. Partners, members of limited liability
19companies, and shareholders of tax-option corporations may claim the credit in
20proportion to their ownership interests.
AB235,3,2221
(d)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
22s. 71.28 (4), applies to the credit under this subsection.
AB235, s. 3
23Section
3. 71.10 (4) (gxx) of the statutes is created to read:
AB235,3,2424
71.10
(4) (gxx) Workplace wellness program credit under s. 71.07 (5i).
AB235, s. 4
25Section
4. 71.21 (4) of the statutes is amended to read:
AB235,4,3
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), (3w), (5b), (5e), (5f), (5g),
and (5h)
,
3and (5i) and passed through to partners shall be added to the partnership's income.
AB235, s. 5
4Section
5. 71.26 (2) (a) of the statutes is amended to read:
AB235,4,225
71.26
(2) (a)
Corporations in general. The "net income" of a corporation means
6the gross income as computed under the Internal Revenue Code as modified under
7sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
8computed under s. 71.28 (1), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c)
97., the amount of the credit under s. 71.28 (3) that the taxpayer added to income
10under this paragraph at the time that the taxpayer first claimed the credit plus the
11amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm),
12(1ds), (1dx), (3g), (3n), (3t), (3w), (5b), (5e), (5f), (5g),
and (5h)
, and (5i) and not passed
13through by a partnership, limited liability company, or tax-option corporation that
14has added that amount to the partnership's, limited liability company's, or
15tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus the amount
16of losses from the sale or other disposition of assets the gain from which would be
17wholly exempt income, as defined in sub. (3) (L), if the assets were sold or otherwise
18disposed of at a gain and minus deductions, as computed under the Internal Revenue
19Code as modified under sub. (3), plus or minus, as appropriate, an amount equal to
20the difference between the federal basis and Wisconsin basis of any asset sold,
21exchanged, abandoned, or otherwise disposed of in a taxable transaction during the
22taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).
AB235, s. 6
23Section
6. 71.28 (5i) of the statutes is created to read:
AB235,4,2524
71.28
(5i) Workplace wellness program credit. (a)
Definitions. In this
25subsection:
AB235,5,1
11. "Claimant" means a person who files a claim under this subsection.
AB235,5,62
2. "Health risk assessment" means a computer-based health-promotion tool
3consisting of a questionnaire; a biometric heath screening to measure vital health
4statistics, including blood pressure, cholesterol, glucose, weight, and height; a
5formula for estimating health risks; an advice database; and a means to generate
6reports.
AB235,5,97
3. "Workplace wellness program" means a health or fitness program, as defined
8by rule under s. 560.204 (4), that is provided with health risk assessments and
9includes the following programs or services:
AB235,5,1010
a. Smoking cessation.
AB235,5,1111
b. Weight management.
AB235,5,1212
c. Stress management.
AB235,5,1313
d. Worker injury prevention programs.
AB235,5,1414
e. Health screenings.
AB235,5,1515
f. Nutrition education.
AB235,5,1616
g. Health or fitness incentive programs.
AB235,5,2317
(b)
Filing claims. Subject to the limitations provided in this subsection and s.
18560.204, a claimant may claim as a credit against the taxes imposed under s. 71.23,
19up to the amount of those taxes, in each taxable year for 3 years, an amount that is
20equal to 30 percent of the amount that the claimant paid in the taxable year to
21provide a workplace wellness program to any of the claimant's employees who are
22employed in this state, not including any amount paid to acquire, construct,
23rehabilitate, remodel, or repair real property.
AB235,6,324
(c)
Limitations. 1. The maximum amount of the credits that may be claimed
25under this subsection and ss. 71.07 (5i) and 71.47 (5i) in any taxable year is
1$2,500,000 for all claimants who employ 50 or fewer employees in the taxable year
2and $2,500,000 for all claimants who employ more than 50 employees in the taxable
3year.
AB235,6,114
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.
AB235,6,1312
(d)
Administration. Subsection (4) (e) to (h), as it applies to the credit under
13sub. (4), applies to the credit under this subsection.
AB235, s. 7
14Section
7. 71.30 (3) (epa) of the statutes is created to read:
AB235,6,1515
71.30
(3) (epa) Workplace wellness program credit under s. 71.28 (5i).
AB235, s. 8
16Section
8. 71.34 (1) (g) of the statutes is amended to read:
AB235,6,2017
71.34
(1) (g) An addition shall be made for credits computed by a tax-option
18corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g),
19(3n), (3t), (3w), (5b), (5e), (5f), (5g),
and (5h)
, and (5i) and passed through to
20shareholders.
AB235, s. 9
21Section
9. 71.45 (2) (a) 10. of the statutes is amended to read:
AB235,7,222
71.45
(2) (a) 10. By adding to federal taxable income the amount of credit
23computed under s. 71.47 (1dd) to (1dx), (3n), (3w), (5b), (5e), (5f), (5g),
and (5h)
, and
24(5i) and not passed through by a partnership, limited liability company, or tax-option
25corporation 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, s. 10
3Section
10. 71.47 (5i) of the statutes is created to read: