AB314: Bill Text

The bill also creates a nonrefundable individual income tax credit for a scholarship recipient who graduates from an institution within the University of Wisconsin System, a technical college district school, or a private institution of higher education with a bachelor's degree, an associate degree, or vocational diploma and who resides and works in this state.

The amount for which an individual may claim a credit, which is defined as an "eligible amount," is an amount equal to 50 percent of all tuition and fees charged one full-time student by the institution or school attended by the scholarship recipient for the years in which the scholarship recipient received an academic excellence higher education scholarship or, in the case of a scholarship recipient who attended a private institution of higher education, an amount equal to 50 percent of the tuition and fees charged one full-time resident undergraduate student at the University of Wisconsin-Madison for the years in which the scholarship recipient received an academic excellence higher education scholarship.

The credit may be claimed only for the five taxable years following the claimant's graduation, and the claimant may claim only one-fifth of the eligible amount each year. To claim the credit, a claimant must be a full-year resident of this state for the year to which the claim relates, and the majority of the wages earned by the claimant in the year to which the claim relates must have been earned in this state.

Because the credit is nonrefundable, no refund is paid if the amount of credit for which a claimant is eligible exceeds his or her tax liability.

In addition, the bill reduces the number of academic excellence higher education scholarships that may be awarded in an academic year to one scholarship for each high school with an enrollment of at least 300 pupils but fewer than 1,500 pupils, to two scholarships for each high school with an enrollment of 1,500 or more pupils, and to not more than 70 scholarships statewide for high schools with enrollments of fewer than 300 pupils. The bill, however, does not affect the scholarships for schools operated by the WCBVI or the WESPDHH.

Finally, the bill requires a pupil to have a GPA of at least 3.500 and a score of at least 30 on the American College Test (commonly referred to as the ACT) in order to qualify for an academic excellence higher education scholarship. The bill, however, does not apply the GPA and ACT score requirements to a pupil of a school operated by the WCBVI or the WESPDHH.

For further information see the state and local 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:

AB314,1 Section 1. 39.41 (1m) (a) 1. of the statutes is amended to read:

AB314,3,10 39.41 (1m) (a) 1. For each high school with an enrollment of at least 80 300 pupils but less fewer than 500 1,500 pupils, designate the senior with the highest grade point average in all subjects, but not less than 3.500 or the equivalent, and with a score of at least 30 on the American college test as a scholar. If the senior with the highest grade point average in all subjects does not have a score of at least 30 on the American college test, the school board or governing body shall designate the senior with the next highest grade point average in all subjects, but not less than 3.500 or the equivalent, and with a score of at least 30 on the American college test as a scholar.

AB314,2 Section 2. 39.41 (1m) (a) 2. of the statutes is repealed.

AB314,3 Section 3. 39.41 (1m) (a) 3. of the statutes is repealed.

AB314,4 Section 4. 39.41 (1m) (a) 4. of the statutes is repealed.

AB314,5 Section 5. 39.41 (1m) (a) 5. of the statutes is amended to read:

AB314,4,10 39.41 (1m) (a) 5. For each high school with an enrollment of 2,000 1,500 or more pupils, designate the 5 2 seniors with the 5 2 highest grade point averages in all subjects, but not less than 3.500 or the equivalent, and with scores of at least 30 on the American college test as scholars. If any of the seniors with the highest grade point average in all subjects does not have a score of at least 30 on the American college test, the school board or governing body shall designate the senior with the next highest grade point average in all subjects, but not less than 3.500 or the equivalent, and with a score of at least 30 on the American college test as a scholar.

AB314,6 Section 6. 39.41 (1m) (a) 6. of the statutes is repealed.

AB314,7 Section 7. 39.41 (1m) (b) of the statutes is amended to read:

AB314,4,24 39.41 (1m) (b) Subject to par. (e), by February 25 of each school year, the school board of each school district operating one or more high schools and the governing body of each private high school and of each tribal high school may, for each high school with an enrollment of less fewer than 80 300 pupils, nominate the senior with the highest grade point average in all subjects, but not less than 3.500 or the equivalent, and with a score of not less than 30 on the American college test who may be designated as a scholar by the executive secretary under par. (c) 3. If the senior with the highest grade point average in all subjects does not have a score of at least 30 on the American college test, the school board or governing body shall nominate the senior with the next highest grade point average in all subjects, but not less than 3.500 or the equivalent, and with a score of at least 30 on the American college test for designation as a scholar.

AB314,8 Section 8. 39.41 (1m) (c) 3. of the statutes is amended to read:

AB314,5,2 39.41 (1m) (c) 3. Designate not more than 10 70 seniors nominated under par. (b) as scholars.

AB314,9 Section 9. 39.41 (1m) (c) 4. of the statutes is amended to read:

AB314,5,7 39.41 (1m) (c) 4. For each public, private, or tribal high school with an enrollment of at least 80 300 pupils, notify the school board of the school district operating the public high school or the governing body of the private or tribal high school of the number of scholars to be designated under par. (a).

AB314,10 Section 10. 39.41 (1m) (d) of the statutes is renumbered 39.41 (1m) (d) 1. and amended to read:

AB314,5,20 39.41 (1m) (d) 1. By February 25 of each school year, if 2 or more seniors from the same high school of at least 80 300 pupils have the same grade point average and, except for the limitation on the number of designated scholars, are otherwise eligible for designation under par. (a), the faculty of the high school shall select the applicable number of seniors for designation under par. (a) as scholars and shall certify, in order of priority, any remaining seniors with the same grade point average and with scores of at least 30 on the American college test as alternates for the scholars or, if there is no remaining senior with the same grade point average and with a score of at least 30 on the American college test, any remaining seniors with the next highest grade point average, but not less than 3.800 3.500 or the equivalent, and with scores of at least 30 on the American college test as alternates for the scholars.

AB314,6,8 2. If a senior from that high school designated as a scholar under par. (a) does not qualify for a higher education scholarship under sub. (2) (a) or (3) (a), an alternate for the scholar from the scholar's high school with the same grade point average as any senior from that high school designated as a scholar under par. (a) and with a score of at least 30 on the American college test shall be eligible for a higher education scholarship as a scholar under sub. (2) (a) or (3) (a) until the scholarship may be awarded by the board. If an alternate with the same grade point average as a scholar under par. (a) and with a score of at least 30 on the American college test does not qualify for a higher education scholarship under sub. (2) (a) or (3) (a), an alternate with the next highest grade point average, but not less than 3.800 3.500 or the equivalent, and with a score of at least 30 on the American college test shall be eligible for a higher education scholarship as a scholar under sub. (2) (a) or (3) (a) until the scholarship may be awarded by the board.

AB314,11 Section 11. 39.41 (1m) (e) of the statutes is renumbered 39.41 (1m) (e) 1. and amended to read:

AB314,6,17 39.41 (1m) (e) 1. If 2 or more seniors from the same high school of less fewer than 80 300 pupils have the same grade point average and, except for the limitation of one nominated senior, are otherwise eligible for nomination under par. (b), the faculty of the high school shall select the senior who may be nominated by the school board of the school district operating the public high school or the governing body of the private or tribal high school for designation under par. (b) (c) 4. as a scholar by the executive secretary.

AB314,7,5 2. If that a senior is designated as a scholar by the executive secretary, but under par. (c) 4. does not qualify for a higher education scholarship under sub. (2) (a) or (3) (a), the faculty of the high school shall select, in order of priority, one or more of the remaining seniors with the same grade point average and with a score of at least 30 on the American college test for certification as a scholar or, if there is no remaining senior with the same grade point average and with a score of at least 30 on the American college test, one or more of the remaining seniors with the next highest grade point average, but not less than 3.800 3.500 or the equivalent, and with a score of at least 30 on the American college test for certification as a scholar, and the school board of the school district operating the high school or the governing body of the private or tribal high school shall certify to the board one or more of these seniors as eligible for a higher education scholarship as a scholar under sub. (2) (a) or (3) (a) until the scholarship may be awarded by the board.

AB314,12 Section 12. 39.41 (1m) (g) of the statutes is amended to read:

AB314,7,15 39.41 (1m) (g) Notwithstanding par. (a), if a high school of at least 80 300 pupils closes or merges in the 1991-92 school year or in any school year thereafter, the school board of the school district operating the high school or the governing body of the private or tribal high school shall, subject to par. (d), for each of the 2 school years following the closure or merger, designate the same number of scholars from among the pupils enrolled in the high school at the time of closure or merger as the number of scholars designated for that high school in the school year the high school closed or merged. Any seniors designated under this paragraph shall be eligible for an original scholarship under this section.

AB314,13 Section 13. 39.41 (1m) (h) of the statutes is repealed.

AB314,14 Section 14. 39.41 (1m) (i) of the statutes is repealed.

AB314,15 Section 15. 39.41 (1m) (j) of the statutes is amended to read:

AB314,7,23 39.41 (1m) (j) In the event that If 2 or more seniors from the same high school of at least 80 300 pupils have the same grade point average and are otherwise eligible for designation under par. (a), the school board of the school district operating the high school or the governing body of the private or tribal high school shall make the designation of the faculty of the high school for purposes of par. (d) or (i).

AB314,16 Section 16. 39.41 (2) (a) of the statutes is amended to read:

AB314,8,10 39.41 (2) (a) If a designated scholar under sub. (1m) is admitted to and enrolls, on a full-time basis, by September 30 of the academic year immediately following the school year in which the senior was designated a scholar, in an institution within the University of Wisconsin System or in a technical college district school that is participating in the program under this section, the scholar shall receive a higher education scholarship that exempts the scholar from 50 percent of all tuition and fees, including segregated fees, at the institution or district school for one year, except that the maximum scholarship for a scholar who receives an original scholarship for the 1996-97 academic year or for any academic year thereafter may not exceed $2,250 per academic year.

AB314,17 Section 17. 39.41 (2) (b) of the statutes is amended to read:

AB314,8,23 39.41 (2) (b) For each year that a scholar who receives a scholarship under par. (a) is enrolled full time, maintains at least a 3.000 grade point average, or the equivalent as determined by the institution or district school, and makes satisfactory progress toward an associate degree, a bachelor's degree, or a vocational diploma, the student scholar shall be exempt from 50 percent of all tuition and fees, including segregated fees, in the subsequent year or, if the scholar does not enroll in a participating institution of higher education in the subsequent year, in the 2nd year following the year in which the scholar received the scholarship, except that the maximum scholarship for a scholar who receives an original scholarship for the 1996-97 academic year or for any academic year thereafter may not exceed $2,250 per academic year. No scholar is eligible for an exemption for more than 4 years in the University of Wisconsin System or more than 3 years at a district school.

AB314,18 Section 18. 39.41 (2) (c) of the statutes is amended to read:

AB314,9,6 39.41 (2) (c) Subject to sub. (4), for each year the student that a scholar is exempt from tuition and fees under par. (a) or (b), the board shall pay the institution or district school, on behalf of the student scholar, an amount equal to 50% 25 percent of the student's scholar's tuition and fees, except that the maximum payment for a student who receives an original scholarship for the 1996-97 academic year or for any academic year thereafter may not exceed $1,125 per academic year.

AB314,19 Section 19. 39.41 (3) (a) of the statutes is amended to read:

AB314,9,17 39.41 (3) (a) If a designated scholar under sub. (1m) is admitted to and enrolls, on a full-time basis, by September 30 of the academic year immediately following the school year in which the senior was designated a scholar, in a private institution of higher education that is located in this state and participating in the program under this section, the board shall pay the institution, on behalf of the pupil scholar, an amount equal to 50% 25 percent of the tuition and fees charged a resident undergraduate at the University of Wisconsin-Madison in the same academic year, except that the maximum payment for a pupil who receives an original scholarship for the 1996-97 academic year or for any academic year thereafter may not exceed $1,125 per academic year.

AB314,20 Section 20. 39.41 (3) (b) of the statutes is amended to read:

AB314,9,25 39.41 (3) (b) For each year that a scholar who receives a scholarship under par. (a) is enrolled full time, maintains at least a 3.000 grade point average, or the equivalent as determined by the private institution, and makes satisfactory progress toward a bachelor's degree, the student scholar is eligible for a higher education scholarship as determined under par. (a) in the subsequent year or, if the scholar does not enroll in a participating institution of higher education in the subsequent year, in the 2nd year following the year in which the scholar received the scholarship. No scholar is eligible for a higher education scholarship for more than 4 years at a private institution of higher education.

AB314,21 Section 21. 39.41 (3m) of the statutes is created to read:

AB314,10,7 39.41 (3m) (a) In addition to receiving a scholarship under sub. (2), if the scholar graduates from an institution within the University of Wisconsin System or a technical college district school with a bachelor's degree, an associate degree, or a vocational diploma, the scholar may claim the credit under s. 71.07 (5p).

AB314,10,11 (b) In addition to receiving a scholarship under sub. (3), if the scholar graduates from a private institution of higher education located in this state with a bachelor's degree, an associate degree, or a vocational diploma, the scholar may claim the credit under s. 71.07 (5p).

AB314,22 Section 22. 71.07 (5p) of the statutes is created to read:

AB314,10,14 71.07 (5p) Academic scholarship tax credit. (a) Definitions. In this subsection:

AB314,10,18 1. "Claimant" means an individual who files a claim under this subsection, who has received a scholarship under s. 39.41 (2) or (3), and who has graduated from the institution or school with regard to which he or she received the scholarship, as described in s. 39.41 (3m) (a) or (b).

AB314,11,2 2. "Eligible amount" means 50 percent of all tuition and fees, including segregated fees, that would have been charged to a single full-time student by the institution or school attended by an individual who received a higher education scholarship under s. 39.41 (2) for the years in which the individual received the scholarship under that subsection, or 50 percent of all tuition and fees charged a single full-time resident undergraduate at the University of Wisconsin-Madison for the years in which an individual who received a scholarship under s. 39.41 (3) attended a private institution of higher education located in this state for the years in which the individual received the scholarship under that subsection.

AB314,11,8 (b) Filing claims. Subject to the conditions and 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, one-fifth of an eligible amount in the taxable year that immediately follows the year in which the individual graduates, as described in s. 39.41 (3m) (a) or (b), and an additional one-fifth of an eligible amount in each of the next 4 successive taxable years.

AB314,11,12 (c) Conditions and limitations. 1. No individual may file a claim under this subsection unless he or she submits to the department with his or her tax return, on a form prepared by the department, information regarding the calculation of that individual's eligible amount.

AB314,11,16 2. No individual may file a claim under this subsection unless he or she was a full-year resident of this state in the year to which the claim relates, and the majority of the wages he or she earned during the year to which the claim relates were earned in this state.

AB314,11,18 3. No credit may be allowed under this subsection unless it is claimed within the period specified under s. 71.75 (2).

AB314,11,23 4. No individual may file a claim under this subsection for any taxable year other than the taxable year that begins immediately after the taxable year in which the claimant graduates from the institution or school with regard to which he or she received the scholarship, as described in s. 39.41 (3m) (a) or (b), and the next 4 successive taxable years.

AB314,11,25 (d) Administration. Subsection (5m) (d), as it applies to the credit under that subsection, applies to the credit under this subsection.

AB314,23 Section 23. 71.10 (4) (cs) of the statutes is created to read:

AB314,12,2 71.10 (4) (cs) Academic scholarship tax credit under s. 71.07 (5p).

AB314,24 Section 24. Initial applicability.

AB314,12,9 (1) Academic excellence higher education scholarships. The treatment of section 39.41 (1m) (a) 1., 2., 3., 4., 5., and 6., (b), (c) 3. and 4., (d), (e), (g), (h), (i), and (j), (2) (a), (b), and (c), (3) (a) and (b), and (3m) of the statutes first applies to students who enroll in an institution within the University of Wisconsin System, a technical college district school, or a private institution of higher education in the 2016-17 academic year.

AB314,12,11 (2) Academic scholarship tax credit. The treatment of section 71.07 (5p) first applies to taxable years beginning after December 31, 2017.

AB314,12,12 (End)