AB837: Bill Text

AB837,6,22 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB837, s. 7 Section 7. 71.30 (3) (cn) of the statutes is created to read:

AB837,6,24 71.30 (3) (cn) Youth summer employment credit under s. 71.28 (5c).

AB837, s. 8 Section 8. 71.34 (1) (g) of the statutes is amended to read:

AB837,7,3 71.34 (1) (g) An addition shall be made for credits computed by a tax-option corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g), (3n), (3t), (3w), (5b), (5c), (5e), (5f), (5g), and (5h) and passed through to shareholders.

AB837, s. 9 Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:

AB837,7,10 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dx), (3n), (3w), (5b), (5c), (5e), (5f), (5g), and (5h) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, limited liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4), and (5).

AB837, s. 10 Section 10. 71.47 (5c) of the statutes is created to read:

AB837,7,13 71.47 (5c) Youth summer employment credit. (a) Definitions. In this subsection:

AB837,7,14 1. "Claimant" means a person who files a claim under this subsection.

AB837,7,15 2. "Full time" means at least 35 hours a week.

AB837,7,16 3. "Part time" means less than 35 hours a week.

AB837,7,20 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of those taxes, an amount that is equal to the amount of the wages that the claimant paid in the taxable year to an employee, if all of the following apply:

AB837,7,22 1. The claimant paid the wages for work performed during the period beginning on July 1 and ending on the first Monday in September of the taxable year.

AB837,7,23 2. The employee is at least 15 years of age, but no more than 18 years of age.

AB837,8,2 3. The employee is either a high school student or graduates from high school during the taxable year prior to the first Monday in September and provides proof to the claimant that he or she is enrolled in a university or college located in this state and intends to begin instruction at the university or college in that taxable year.

AB837,8,4 4. The employee receives an hourly wage that is at least 20 percent more than the federal minimum hourly wage.

AB837,8,6 5. The student's most recent cumulative high school grade point average is at least 3.0 or the equivalent.

AB837,8,11 (c) Limitations. 1. The maximum amount that a claimant may claim under this subsection in any taxable year for any single employee who works full time is an amount that is equal to the lesser of $600 for each month that the employee is employed during the period described under par. (b) or 70 percent of the employee's monthly wages during that period.

AB837,8,16 2. The maximum amount that a claimant may claim under this subsection in any taxable year for any single employee who works part time is an amount that is equal to the lesser of $600 for each month that the employee is employed during the period described under par. (b) or 70 percent of the employee's monthly wages during that period.

AB837,8,18 3. The maximum amount that a claimant may claim under this subsection in any taxable year is $10,000.

AB837,9,2 4. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

AB837,9,4 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB837, s. 11 Section 11. 71.49 (1) (cn) of the statutes is created to read:

AB837,9,6 71.49 (1) (cn) Youth summer employment credit under s. 71.47 (5c).

AB837, s. 12 Section 12. 77.92 (4) of the statutes is amended to read:

AB837,9,22 77.92 (4) "Net business income," with respect to a partnership, means taxable income as calculated under section 703 of the Internal Revenue Code; plus the items of income and gain under section 702 of the Internal Revenue Code, including taxable state and municipal bond interest and excluding nontaxable interest income or dividend income from federal government obligations; minus the items of loss and deduction under section 702 of the Internal Revenue Code, except items that are not deductible under s. 71.21; plus guaranteed payments to partners under section 707 (c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3s), (3n), (3t), (3w), (5b), (5c), (5e), (5f), (5g), and (5h); and plus or minus, as appropriate, transitional adjustments, depreciation differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain, loss, and deductions from farming. "Net business income," with respect to a natural person, estate, or trust, means profit from a trade or business for federal income tax purposes and includes net income derived as an employee as defined in section 3121 (d) (3) of the Internal Revenue Code.

AB837, s. 13 Section 13. Initial applicability.

AB837,9,24 (1) This act first applies to taxable years beginning on January 1, 2008.

AB837,9,25 (End)