LRB-2956/1
JK:wlj&jld:jf
2011 - 2012 LEGISLATURE
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
1An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a) 4., 71.34 (1k) (g), 71.45
2(2) (a) 10. and 77.92 (4); and
to create 71.07 (6n), 71.10 (4) (cq), 71.28 (6n), 71.30
3(3) (dp), 71.47 (6n) and 71.49 (1) (dp) of the statutes;
relating to: an income and
4franchise 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:
AB437,2,83
71.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
4(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
5(3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k), (5n), (5r), (5rm),
(6n), and
6(8r) and not passed through by a partnership, limited liability company, or
7tax-option corporation that has added that amount to the partnership's, company's,
8or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
AB437, s. 2
9Section
2. 71.07 (6n) of the statutes is created to read:
AB437,2,1010
71.07
(6n) Veteran employment credit. (a)
Definitions. In this subsection:
AB437,2,1111
1. "Claimant" means a person who files a claim under this subsection.
AB437,2,1412
2. "Disabled veteran" means a veteran who is verified by the department of
13veteran affairs to have a service-connected disability rating of at least 50 percent
14under
38 USC 1114 or
1134.
AB437,2,1715
3. "Full-time job" means a regular, nonseasonal full-time position in which an
16individual, as a condition of employment, is required to work at least 2,080 hours per
17year, including paid leave and holidays.
AB437,2,2018
4. "Part-time job" means a regular, nonseasonal part-time position in which
19an individual, as a condition of employment, is required to work fewer than 2,080
20hours per year, including paid leave and holidays.
AB437,2,2421
5. "Veteran" means a person who is verified by the department of veteran
22affairs to have served on active duty under honorable conditions in the U.S. armed
23forces, in forces incorporated as part of the U.S. armed forces, in the national guard,
24or in a reserve component of the U.S. armed forces.
AB437,3,4
1(b)
Filing claims. Subject to the limitations provided in this subsection, for
2taxable years beginning after December 31, 2011, a claimant may claim as a credit
3against the tax imposed under s. 71.02, up to the amount of the tax, an amount equal
4to any of the following:
AB437,3,85
1. Subject to par. (c) 4., for each disabled veteran the claimant hires in the
6taxable year to work a full-time job at the claimant's business in this state, $4,000
7in the taxable year in which the disabled veteran is hired and $2,000 in each of the
83 taxable years following the taxable year in which the disabled veteran is hired.
AB437,3,129
2. Subject to par. (c) 4., for each disabled veteran the claimant hires in the
10taxable year to work a part-time job at the claimant's business in this state, $2,000
11in the taxable year in which the disabled veteran is hired and $1,000 in each of the
123 taxable years following the taxable year in which the disabled veteran is hired.
AB437,3,2013
(c)
Limitations. 1. Partnerships, limited liability companies, and tax-option
14corporations may not claim the credit under this subsection, but the eligibility for,
15and the amount of, the credit are based on their hiring of disabled veterans, as
16described under par. (b). A partnership, limited liability company, or tax-option
17corporation shall compute the amount of credit that each of its partners, members,
18or shareholders may claim and shall provide that information to each of them.
19Partners, members of limited liability companies, and shareholders of tax-option
20corporations may claim the credit in proportion to their ownership interests.
AB437,3,2321
2. No credit may be claimed under this subsection in any taxable year in which
22the disabled veteran voluntarily or involuntarily leaves his or her employment with
23the claimant.
AB437,4,224
3. A claimant may claim a credit under this subsection only for hiring a disabled
25veteran who has received unemployment compensation benefits for at least one week
1prior to being hired by the claimant and who was eligible to receive such benefits at
2the time the benefits were paid.
AB437,4,43
4. With regard to a credit claimed under par. (b) 2., the amount that the
4claimant may claim is determined as follows:
AB437,4,65
a. Divide the number of hours that the disabled veteran worked for the
6claimant during the taxable year by 2,080.
AB437,4,87
b. Multiply the amount of the credit under par. (b) 2., as appropriate, by the
8number determined under subd. 4. a.
AB437,4,109
(d)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
10s. 71.28 (4), applies to the credit under this subsection.
AB437, s. 3
11Section
3. 71.10 (4) (cq) of the statutes is created to read:
AB437,4,1212
71.10
(4) (cq) Veteran employment credit under s. 71.07 (6n).
AB437,4,1815
71.21
(4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
16(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s),
17(3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm),
(6n), and (8r) and passed
18through to partners shall be added to the partnership's income.
AB437,5,221
71.26
(2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
22(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r),
23(3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm),
(6n), (8r),
24and (9s) and not passed through by a partnership, limited liability company, or
25tax-option corporation that has added that amount to the partnership's, limited
1liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k)
2(g).
AB437, s. 6
3Section
6. 71.28 (6n) of the statutes is created to read:
AB437,5,44
71.28
(6n) Veteran employment credit. (a)
Definitions. In this subsection:
AB437,5,55
1. "Claimant" means a veteran who files a claim under this subsection.
AB437,5,86
2. "Disabled veteran" means a veteran who is verified by the department of
7veteran affairs to have a service-connected disability rating of at least 50 percent
8under
38 USC 1114 or
1134.
AB437,5,119
3. "Full-time job" means a regular, nonseasonal full-time position in which an
10individual, as a condition of employment, is required to work at least 2,080 hours per
11year, including paid leave and holidays.
AB437,5,1412
4. "Part-time job" means a regular, nonseasonal part-time position in which
13an individual, as a condition of employment, is required to work fewer than 2,080
14hours per year, including paid leave and holidays.
AB437,5,1815
5. "Veteran" means a person who is verified by the department of veteran
16affairs to have served on active duty under honorable conditions in the U.S. armed
17forces, in forces incorporated as part of the U.S. armed forces, in the national guard,
18or in a reserve component of the U.S. armed forces.
AB437,5,2219
(b)
Filing claims. Subject to the limitations provided in this subsection, for
20taxable years beginning after December 31, 2011, a claimant may claim as a credit
21against the tax imposed under s. 71.23, up to the amount of the tax, an amount equal
22to any of the following:
AB437,6,223
1. For each disabled veteran the claimant hires in the taxable year to work a
24full-time job at the claimant's business in this state, $4,000 in the taxable year in
1which the disabled veteran is hired and $2,000 in each of the 3 taxable years
2following the taxable year in which the disabled veteran is hired.
AB437,6,63
2. Subject to par. (c) 4., for each disabled veteran the claimant hires in the
4taxable year to work a part-time job at the claimant's business in this state, $2,000
5in the taxable year in which the disabled veteran is hired and $1,000 in each of the
63 taxable years following the taxable year in which the disabled veteran is hired.
AB437,6,147
(c)
Limitations. 1. Partnerships, limited liability companies, and tax-option
8corporations may not claim the credit under this subsection, but the eligibility for,
9and the amount of, the credit are based on their hiring of disabled veterans, as
10described under par. (b). A partnership, limited liability company, or tax-option
11corporation shall compute the amount of credit that each of its partners, members,
12or shareholders may claim and shall provide that information to each of them.
13Partners, members of limited liability companies, and shareholders of tax-option
14corporations may claim the credit in proportion to their ownership interests.
AB437,6,1715
2. No credit may be claimed under this subsection in any taxable year in which
16the disabled veteran voluntarily or involuntarily leaves his or her employment with
17the claimant.
AB437,6,2118
3. A claimant may claim a credit under this subsection only for hiring a disabled
19veteran who has received unemployment compensation benefits for at least one week
20prior to being hired by the claimant and who was eligible to receive such benefits at
21the time the benefits were paid.