AB437: Bill Text

LRB-2956/1

JK:wlj&jld:jf

2011 - 2012 LEGISLATURE

2011 Assembly BILL 437

December 20, 2011 - Introduced by Representatives Wynn, Spanbauer, Jacque, Tranel, Knilans, Berceau, Kaufert, Fields, Brooks, C. Taylor and Sinicki, cosponsored by Senators Lassa, Schultz, T. Cullen, Carpenter, Taylor and S. Coggs. Referred to Committee on Veterans and Military Affairs.

AB437,1,4 An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a) 4., 71.34 (1k) (g), 71.45 (2) (a) 10. and 77.92 (4); and to create 71.07 (6n), 71.10 (4) (cq), 71.28 (6n), 71.30 (3) (dp), 71.47 (6n) and 71.49 (1) (dp) of the statutes; relating to: an income and franchise tax credit for hiring unemployed disabled veterans.

Analysis by the Legislative Reference Bureau

This bill creates an income and franchise tax credit for hiring unemployed veterans. Under the bill, a taxpayer may claim the following amounts as credits:

1. For each disabled veteran the taxpayer hires in the taxable year to work a full-time job in this state, $4,000 in the taxable year in which the disabled veteran is hired and $2,000 in each of the three taxable years following the taxable year in which the disabled veteran is hired.

2. For each disabled veteran the taxpayer hires in the taxable year to work a part-time job in this state, $2,000 in the taxable year in which the disabled veteran is hired and $1,000 in each of the three taxable years following the taxable year in which the disabled veteran is hired.

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:

AB437, s. 1 Section 1. 71.05 (6) (a) 15. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB437,2,8 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (6n), 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, company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).

AB437, s. 2 Section 2. 71.07 (6n) of the statutes is created to read:

AB437,2,10 71.07 (6n) Veteran employment credit. (a) Definitions. In this subsection:

AB437,2,11 1. "Claimant" means a person who files a claim under this subsection.

AB437,2,14 2. "Disabled veteran" means a veteran who is verified by the department of veteran affairs to have a service-connected disability rating of at least 50 percent under 38 USC 1114 or 1134.

AB437,2,17 3. "Full-time job" means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays.

AB437,2,20 4. "Part-time job" means a regular, nonseasonal part-time position in which an individual, as a condition of employment, is required to work fewer than 2,080 hours per year, including paid leave and holidays.

AB437,2,24 5. "Veteran" means a person who is verified by the department of veteran affairs to have served on active duty under honorable conditions in the U.S. armed forces, in forces incorporated as part of the U.S. armed forces, in the national guard, or in a reserve component of the U.S. armed forces.

AB437,3,4 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2011, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of the tax, an amount equal to any of the following:

AB437,3,8 1. Subject to par. (c) 4., for each disabled veteran the claimant hires in the taxable year to work a full-time job at the claimant's business in this state, $4,000 in the taxable year in which the disabled veteran is hired and $2,000 in each of the 3 taxable years following the taxable year in which the disabled veteran is hired.

AB437,3,12 2. Subject to par. (c) 4., for each disabled veteran the claimant hires in the taxable year to work a part-time job at the claimant's business in this state, $2,000 in the taxable year in which the disabled veteran is hired and $1,000 in each of the 3 taxable years following the taxable year in which the disabled veteran is hired.

AB437,3,20 (c) Limitations. 1. 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 hiring of disabled veterans, 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.

AB437,3,23 2. No credit may be claimed under this subsection in any taxable year in which the disabled veteran voluntarily or involuntarily leaves his or her employment with the claimant.

AB437,4,2 3. A claimant may claim a credit under this subsection only for hiring a disabled veteran who has received unemployment compensation benefits for at least one week prior to being hired by the claimant and who was eligible to receive such benefits at the time the benefits were paid.

AB437,4,4 4. With regard to a credit claimed under par. (b) 2., the amount that the claimant may claim is determined as follows:

AB437,4,6 a. Divide the number of hours that the disabled veteran worked for the claimant during the taxable year by 2,080.

AB437,4,8 b. Multiply the amount of the credit under par. (b) 2., as appropriate, by the number determined under subd. 4. a.

AB437,4,10 (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.

AB437, s. 3 Section 3. 71.10 (4) (cq) of the statutes is created to read:

AB437,4,12 71.10 (4) (cq) Veteran employment credit under s. 71.07 (6n).

AB437, s. 4 Section 4. 71.21 (4) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB437,4,18 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), (3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (6n), and (8r) and passed through to partners shall be added to the partnership's income.

AB437, s. 5 Section 5. 71.26 (2) (a) 4. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB437,5,2 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), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (6n), (8r), and (9s) 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).

AB437, s. 6 Section 6. 71.28 (6n) of the statutes is created to read:

AB437,5,4 71.28 (6n) Veteran employment credit. (a) Definitions. In this subsection:

AB437,5,5 1. "Claimant" means a veteran who files a claim under this subsection.

AB437,5,8 2. "Disabled veteran" means a veteran who is verified by the department of veteran affairs to have a service-connected disability rating of at least 50 percent under 38 USC 1114 or 1134.

AB437,5,11 3. "Full-time job" means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays.

AB437,5,14 4. "Part-time job" means a regular, nonseasonal part-time position in which an individual, as a condition of employment, is required to work fewer than 2,080 hours per year, including paid leave and holidays.

AB437,5,18 5. "Veteran" means a person who is verified by the department of veteran affairs to have served on active duty under honorable conditions in the U.S. armed forces, in forces incorporated as part of the U.S. armed forces, in the national guard, or in a reserve component of the U.S. armed forces.

AB437,5,22 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2011, a claimant may claim as a credit against the tax imposed under s. 71.23, up to the amount of the tax, an amount equal to any of the following:

AB437,6,2 1. For each disabled veteran the claimant hires in the taxable year to work a full-time job at the claimant's business in this state, $4,000 in the taxable year in which the disabled veteran is hired and $2,000 in each of the 3 taxable years following the taxable year in which the disabled veteran is hired.

AB437,6,6 2. Subject to par. (c) 4., for each disabled veteran the claimant hires in the taxable year to work a part-time job at the claimant's business in this state, $2,000 in the taxable year in which the disabled veteran is hired and $1,000 in each of the 3 taxable years following the taxable year in which the disabled veteran is hired.

AB437,6,14 (c) Limitations. 1. 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 hiring of disabled veterans, 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.

AB437,6,17 2. No credit may be claimed under this subsection in any taxable year in which the disabled veteran voluntarily or involuntarily leaves his or her employment with the claimant.

AB437,6,21 3. A claimant may claim a credit under this subsection only for hiring a disabled veteran who has received unemployment compensation benefits for at least one week prior to being hired by the claimant and who was eligible to receive such benefits at the time the benefits were paid.

AB437,6,23 4. With regard to a credit claimed under par. (b) 2., the amount that the claimant may claim is determined as follows:

AB437,6,25 a. Divide the number of hours that the disabled veteran worked for the claimant during the taxable year by 2,080.

AB437,7,2 b. Multiply the amount of the credit under par. (b) 2., as appropriate, by the number determined under subd. 4. a.

AB437,7,4 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB437, s. 7 Section 7. 71.30 (3) (dp) of the statutes is created to read:

AB437,7,6 71.30 (3) (dp) Veteran employment credit under s. 71.28 (6n).

AB437, s. 8 Section 8. 71.34 (1k) (g) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB437,7,12 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), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (6n), and (8r) and passed through to shareholders.

AB437, s. 9 Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB437,7,21 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), (3rm), (3rn), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (6n), (8r), and (9s) 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).

AB437, s. 10 Section 10. 71.47 (6n) of the statutes is created to read:

AB437,7,23 71.47 (6n) Veteran employment credit. (a) Definitions. In this subsection:

AB437,7,24 1. "Claimant" means a veteran who files a claim under this subsection.

AB437,8,3 2. "Disabled veteran" means a veteran who is verified by the department of veteran affairs to have a service-connected disability rating of at least 50 percent under 38 USC 1114 or 1134.

AB437,8,6 3. "Full-time job" means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays.

AB437,8,9 4. "Part-time job" means a regular, nonseasonal part-time position in which an individual, as a condition of employment, is required to work fewer than 2,080 hours per year, including paid leave and holidays.