AB894: Bill Text

AB894, s. 6 Section 6. 71.28 (5n) of the statutes is created to read:

AB894,4,7 71.28 (5n) Cafeteria plan credit. (a) Definitions. In this subsection:

AB894,4,9 1. "Cafeteria plan" means a benefits plan described under section 125 of the Internal Revenue Code.

AB894,4,10 2. "Claimant" means a person who files a claim under this subsection.

AB894,4,14 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the taxes imposed under s. 71.23, up to the amount of the taxes, $200 for the taxable year in which the claimant establishes a cafeteria plan for the claimant's employees.

AB894,4,22 (c) Limitations. 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 providing the cafeteria plan as described 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.

AB894,4,24 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB894, s. 7 Section 7. 71.30 (3) (dr) of the statutes is created to read:

AB894,5,1 71.30 (3) (dr) Cafeteria plan credit under s. 71.28 (5n).

AB894, s. 8 Section 8. 71.34 (1) (g) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

AB894,5,7 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), (3h), (3n), (3p), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k), and (5n) and passed through to shareholders.

AB894, s. 9 Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

AB894,5,16 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dx), (3h), (3n), (3p), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k), and (5n) 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).

AB894, s. 10 Section 10. 71.47 (5n) of the statutes is created to read:

AB894,5,18 71.47 (5n) Cafeteria plan credit. (a) Definitions. In this subsection:

AB894,5,20 1. "Cafeteria plan" means a benefits plan described under section 125 of the Internal Revenue Code.

AB894,5,21 2. "Claimant" means a person who files a claim under this subsection.

AB894,5,25 (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 the taxes, $200 for the taxable year in which the claimant establishes a cafeteria plan for the claimant's employees.

AB894,6,8 (c) Limitations. 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 providing the cafeteria plan as described 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.

AB894,6,10 (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.

AB894, s. 11 Section 11. 71.49 (1) (dr) of the statutes is created to read:

AB894,6,12 71.49 (1) (dr) Cafeteria plan credit under s. 71.47 (5n).

AB894, s. 12 Section 12. 73.03 (64) of the statutes is created to read:

AB894,6,17 73.03 (64) To include information regarding the creation of cafeteria plans under 26 USC 125, and the tax benefits related to such plans under 26 USC 125 and ss. 71.07 (5n), 71.28 (5n), and 71.47 (5n), with income and franchise tax forms published by the department.

AB894, s. 13 Section 13. 77.92 (4) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

AB894,7,10 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), (3h), (3s), (3n), (3p), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k), and (5n); 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.

AB894, s. 14 Section 14. 180.0121 (3) of the statutes is created to read:

AB894,7,15 180.0121 (3) The department shall provide written information regarding the creation of cafeteria plans under 26 USC 125, and the tax benefits related to such plans under 26 USC 125 and ss. 71.07 (5n), 71.28 (5n), and 71.47 (5n), to each entity that submits articles of incorporation to the department for filing.

AB894, s. 15 Section 15. Initial applicability.

AB894,7,17 (1) This act first applies to taxable years beginning on January 1, 2008.

AB894,7,18 (End)