AB726: Bill Text

AB726,3,7 2. "Private school contribution" means a contribution to a scholarship fund that is operated by, and is under the control of, a private school, as defined in s. 115.001 (3r), that operates any grade from kindergarten to grade 12, that meets all of the criteria under s. 118.165 (1), and that is used to pay the tuition and fees of a pupil who is enrolled in the private school.

AB726,3,11 3. "Public school contribution" means a contribution to a public school, as that term is used in s. 115.01 (1), that is used for academic and curricular physical education programs, but does not include a contribution that is used for extracurricular or organized competitive athletic programs.

AB726,3,15 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, the amount of a private school contribution, or the amount of a public school contribution, or both, in the year to which the claim relates.

AB726,3,19 (c) Limitations. 1. The maximum credit that may be claimed under this subsection by a claimant who files as a single individual or head of household is $1,000 for a private school contribution, and $1,000 for a public school contribution, in each year to which the claim relates.

AB726,3,23 2. The maximum credit that may be claimed under this subsection by claimants who are a married couple and file a joint return is $1,500 for a private school contribution, and $1,500 for a public school contribution, in each year to which the claim relates.

AB726,4,3 3. The maximum credit that may be claimed by each spouse of a married couple that files separately is 50 percent of each of the amounts specified in subd. 2., in each year to which the claim relates.

AB726,4,9 4. If a credit computed under this subsection is not entirely offset against Wisconsin income taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income taxes otherwise due for the following 5 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the credit was first claimed and the year in which the carry-forward credit is claimed.

AB726,4,11 5. A credit under this subsection may not be claimed by a nonresident or part-year resident of this state.

AB726,4,13 6. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

AB726,4,16 7. No credit may be allowed under this subsection for a taxable year covering a period of less than 12 months, except for a taxable year closed by reason of the death of the taxpayer.

AB726,4,18 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

AB726, s. 3 Section 3. 71.10 (4) (cg) of the statutes is created to read:

AB726,4,20 71.10 (4) (cg) The public and private school credits under s. 71.07 (6g).

AB726, s. 4 Section 4. 71.21 (4) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB726,5,2 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (6g), and (8r) and passed through to partners shall be added to the partnership's income.

AB726, s. 5 Section 5. 71.26 (2) (a) 4. of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB726,5,10 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (6g), and (8r) 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 (1k) (g).

AB726, s. 6 Section 6. 71.28 (6g) of the statutes is created to read:

AB726,5,13 71.28 (6g) Public and private school credits. (a) Definitions. In this subsection:

AB726,5,14 1. "Claimant" means a person who files a claim under this subsection.

AB726,5,19 2. "Private school contribution" means a contribution to a scholarship fund that is operated by, and is under the control of, a private school, as defined in s. 115.001 (3r), that operates any grade from kindergarten to grade 12, that meets all of the criteria under s. 118.165 (1), and that is used to pay the tuition and fees of a pupil who is enrolled in the private school.

AB726,5,23 3. "Public school contribution" means a contribution to a public school, as that term is used in s. 115.01 (1), that is used for academic and curricular physical education programs, but does not include a contribution that is used for extracurricular or organized competitive athletic programs.

AB726,6,2 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.23, up to the amount of those taxes, the amount of a private school contribution, or the amount of a public school contribution, or both, that the claimant paid in the taxable year.

AB726,6,4 (c) Limitations. 1. The maximum amount of the credit that a claimant may claim under this subsection in a taxable year is $150,000.

AB726,6,12 2. 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.

AB726,6,14 (d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB726,6,20 2. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 5 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.

AB726, s. 7 Section 7. 71.30 (3) (cg) of the statutes is created to read:

AB726,6,22 71.30 (3) (cg) The public and private school credits under s. 71.28 (6g).

AB726, s. 8 Section 8. 71.34 (1k) (g) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB726,7,4 71.34 (1k) (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), (1dy), (3), (3g), (3h), (3n), (3p), (3q), (3r), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (6g), and (8r) and passed through to shareholders.

AB726, s. 9 Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB726,7,13 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (6g), and (8r) 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 (1k) (g) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).

AB726, s. 10 Section 10. 71.47 (6g) of the statutes is created to read:

AB726,7,16 71.47 (6g) Public and private school credits. (a) Definitions. In this subsection:

AB726,7,17 1. "Claimant" means a person who files a claim under this subsection.

AB726,7,22 2. "Private school contribution" means a contribution to a scholarship fund that is operated by, and is under the control of, a private school, as defined in s. 115.001 (3r), that operates any grade from kindergarten to grade 12, that meets all of the criteria under s. 118.165 (1), and that is used to pay the tuition and fees of a pupil who is enrolled in the private school.

AB726,8,2 3. "Public school contribution" means a contribution to a public school, as that term is used in s. 115.01 (1), that is used for academic and curricular physical education programs, but does not include a contribution that is used for extracurricular or organized competitive athletic programs.

AB726,8,6 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.43, up to the amount of those taxes, the amount of a private school contribution, or the amount of a public school contribution, or both, that the claimant paid in the taxable year.

AB726,8,8 (c) Limitations. 1. The maximum amount of the credit that a claimant may claim under this subsection in a taxable year is $150,000.

AB726,8,16 2. 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.

AB726,8,18 (d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB726,8,24 2. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 5 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.

AB726, s. 11 Section 11. 71.49 (1) (cg) of the statutes is created to read:

AB726,9,1 71.49 (1) (cg) The public and private school credits under s. 71.47 (6g).

AB726, s. 12 Section 12. 77.92 (4) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB726,9,19 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), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (6g), and (8r); 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.

AB726, s. 13 Section 13. Initial applicability.

AB726,9,23 (1) This act first applies to taxable years beginning on January 1, 2011, except that, if this subsection takes effect on or after August 1, 2011, this act first applies to taxable years beginning on January 1, 2012.

AB726,9,24 (End)