January 2011 Special Session
2011 - 2012 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 4,
TO ASSEMBLY BILL 7
January 25, 2011 - Offered by Representative Hintz.
1An Act to create
71.645 and 560.2057 of the statutes; relating to: tax benefits
2for hiring new employees and granting rule-making authority.
Analysis by the Legislative Reference Bureau
Under this substitute amendment, generally, a business that hires new
full-time employees may begin to receive a tax benefit, if it applies to the Department
of Commerce to receive that benefit. Under the substitute amendment, an eligible
business may, rather than submit the amount as withholding taxes, retain an
amount that is equal to the increase in the business's payroll attributable to new
employees with full-time jobs. A business is only eligible for the tax benefits if it
employs no more than ten employees during the year. Under the substitute
amendment, the Department of Revenue (DOR) considers all amounts retained as
tax benefits to be amounts submitted to DOR as withholding taxes.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
471.645 Job creation tax benefit.
Subject to the limitations provided in this 5
section and s. 560.2057, and notwithstanding any other provision in this subchapter,
for taxable years beginning after December 31, 2010, a person who is certified to 2
receive tax benefits under s. 560.2057 (2) may, rather than submit the income 3
withholding taxes of any eligible employees, as defined under s. 560.2057 (1) (b), 4
retain those taxes as a tax benefit. The person shall report this amount to the 5
department, in the manner prescribed by the department, and, for purposes of this 6
chapter, the department shall treat all amounts retained under this section as if the 7
amounts had been withheld pursuant to this subchapter.
AB7-ASA4, s. 2
560.2057 of the statutes is created to read:
9560.2057 Job creation tax benefit. (1) Definitions.
In this section:
(a) "Business" means any organization or enterprise operated for profit, 11
including a proprietorship, partnership, firm, business trust, joint venture, 12
syndicate, corporation, limited liability company, or association.
(b) "Eligible employee" means an individual employed in a full-time job by a 14
person certified in sub. (2), if all of the following apply:
1. The individual begins employment with the person certified in sub. (2) after 16
February 3, 2011, and before January 1, 2012.
2. The individual certifies to the department, in the manner prescribed by the 18
department, that the individual has not been employed for more than 40 hours 19
during the 60-day period ending on the date that the individual begins his or her 20
employment with the person certified in sub. (2).
3. The individual is not employed by the person certified in sub. (2) to replace 22
another employee of the person unless the other employee separated from his or her 23
employment with the person voluntarily or unless person terminated the other 24
employee for cause.
4. The individual is not an individual described in 26 USC 51
(c) "Full-time job" means a regular, nonseasonal full-time position, in this 2
state, in which an individual, as a condition of employment, is required to work at 3
least 2,080 hours per year, including paid leave and holidays. "Full-time job" does 4
not include initial training before an employment position begins.
(d) "Tax benefits" means the job creation tax benefit under s. 71.645.
The department may certify a person to receive tax benefits 7
under this section if all of the following apply:
(a) The person is operating or intends to operate a business in this state.
(b) The person's business employs no more than 10 employees during the 10
taxable year for which the person seeks to claim tax benefits under this section.
(c) The person applies under this section.
(a) A person may not claim the tax benefits under this section 13
and the tax credits under ss. 71.07 (3q), 71.28 (3q), and 71.47 (3q) for amounts related 14
to the same employees.
(b) The maximum amount of tax benefits that may be awarded under this 16
section is $10,000,000.
(c) If an eligible employee does not work for the person certified under sub. (2) 18
for at least 30 days during the taxable year for which the person receives the tax 19
benefits, the person shall repay the amount of the tax benefits received for that 20
employee in the manner prescribed by rule by the department.
21(4) Duties of the department.
(a) The department of commerce shall notify 22
the department of revenue when the department of commerce certifies a person to 23
receive tax benefits.
(b) The department of commerce shall notify the department of revenue within 25
30 days of revoking a certification made under sub. (2).
(c) The department shall annually verify the information submitted to the 2
department by the person claiming tax benefits under s. 71.645.
(d) The department shall promulgate rules for the implementation and 4
operation of this section, including rules relating to the conditions for the revocation 5
of a certification under par. (b).
(1) Job creation tax benefits.
The department of commerce may use the 8
procedure under section 227.24 of the statutes to promulgate rules under section 9
560.2057 (4) (d) of the statutes, as created by this act. Notwithstanding section 10
227.24 (1) (c) and (2) of the statutes, emergency rules promulgated under this 11
subsection remain in effect until July 1, 2011, or the date on which permanent rules 12
take effect, whichever is sooner. Notwithstanding section 227.24 (1) (a) and (3) of the 13
statutes, the department is not required to provide evidence that promulgating a rule 14
under this subsection as an emergency rule is necessary for the preservation of the 15
public peace, health, safety, or welfare and is not required to provide a finding of 16
emergency for a rule promulgated under this subsection.
Notwithstanding sections 227.137 (2) and 227.138 (2) of the statutes, 18
if the secretary of administration requires the department of commerce to prepare 19
an economic impact report for the rules required under section 560.2057 (4) (d) of the 20
statutes, as created by this act, the department may submit the proposed rules to the 21
legislature for review under section 227.19 (2) of the statutes before the department 22
completes the economic impact report and before the department receives a copy of 23
the report and approval under section 227.138 (2) of the statutes.