LRB-0809/1
KRP&MES:emw&wlj
2017 - 2018 LEGISLATURE
December 7, 2017 - Introduced by Representatives Genrich, Crowley, Spreitzer,
Young, Goyke, Hebl, C. Taylor, Kolste, Anderson, Subeck, Zamarripa,
Riemer, Berceau, Brostoff, Sargent, Billings, Shankland, Ohnstad,
Considine, Zepnick, Sinicki and Vruwink, cosponsored by Senators Johnson,
L. Taylor, Larson and Carpenter. Referred to Committee on Ways and
Means.
AB726,1,5
1An Act to amend 71.05 (6) (a) 15., 71.21 (4) (a), 71.26 (2) (a) 4., 71.34 (1k) (g) and
271.45 (2) (a) 10.; and
to create 71.07 (8g), 71.10 (4) (em), 71.28 (8g), 71.30 (3)
3(am), 71.47 (8g) and 71.49 (1) (am) of the statutes;
relating to: creating a
4nonrefundable individual and corporate income and franchise tax credit for
5costs paid to eliminate exposure to a lead hazard in a dwelling.
Analysis by the Legislative Reference Bureau
This bill creates a nonrefundable individual income tax credit and a corporate
income and franchise tax credit for costs paid to eliminate a lead hazard in a dwelling
or residential condominium unit in this state (residence).
Under this bill, an owner of a residence may claim a credit for all costs paid, up
to $1,500 per dwelling unit, to permanently eliminate a lead hazard in a residence.
A dwelling may contain more than one dwelling unit. To claim the credit, a claimant
must meet all of the following conditions:
1. A certified professional must investigate the residence and determine that
a lead hazard exists.
2. The lead hazard abatement activities in the residence must be conducted in
accordance with rules promulgated by the Department of Health Services.
3. A certified professional must do one or both of the following: 1) issue a
certificate confirming that the residence is free from lead-bearing paint on the date
of the inspection; or 2) execute a document certifying that the lead hazard abatement
activities permanently eliminated all lead hazards in the residence.
At the option of the owner, the owner may, at the same time the owner
remediates lead hazards in a residence, also remediate any lead hazards present in
the residence's utility service connections and claim a credit for those costs.
The credit is nonrefundable, meaning that it may be claimed only up to the
amount of a taxpayer's income or franchise tax liability. If the amount of the credit
for which a claimant is eligible exceeds the claimant's tax liability, the claimant may
carry forward the excess credit amount for up to the following seven taxable years.
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:
AB726,2,83
71.05
(6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the
4credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
5(3rm), (3rn), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5e), (5f), (5h), (5i), (5j), (5k), (5r),
6(5rm), (6n),
(8g), and (8r) and not passed through by a partnership, limited liability
7company, or tax-option corporation that has added that amount to the partnership's,
8company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
AB726,2
9Section
2. 71.07 (8g) of the statutes is created to read:
AB726,2,1110
71.07
(8g) Lead hazard abatement tax credit. (a)
Definitions. In this
11subsection:
AB726,2,1512
1. “Certificate of lead-free status" means a certificate of lead-free status, as
13defined in s. 254.11 (4g), that is issued in accordance with the rules promulgated by
14the department of health services under s. 254.179 (1) and has not been revoked by
15the department of health services.
AB726,2,1616
2. “Claimant" means a person who files a claim under this subsection.
AB726,3,2
13. “Condominium unit" means a unit, as defined in s. 703.02 (15), that is a
2dwelling unit.
AB726,3,63
4. “Dwelling" means any structure, all or part of which is designed or used for
4human habitation and includes a structure owned and occupied by members of a
5housing cooperative incorporated under ch. 185 or organized under ch. 193. A
6“dwelling" may contain one or more dwelling units.
AB726,3,97
5. “Dwelling unit" means a structure or that part of a structure that is designed,
8used, or intended to be used as a home, residence, or sleeping place by one person or
9by 2 or more persons maintaining a common household, to the exclusion of all others.
AB726,3,1110
6. “Extended dwelling" means a dwelling and the dwelling's utility service
11connections.
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7. “First effective" means:
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a. With respect to a certificate of lead-free status, the date listed on the
14certificate as the certificate's effective date.
AB726,3,1615
b. With respect to proof of successful abatement, the date on which the
16document is executed.
AB726,3,1717
8. “Lead-bearing paint hazard" has the meaning given in s. 254.11 (8d).
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9. “Lead hazard" has the meaning given in s. 254.11 (8g).
AB726,3,2219
10. “Lead hazard abatement" means lead hazard abatement, as defined in s.
20254.11 (8j), that is conducted in accordance with the rules promulgated by the
21department of health services under s. 254.172 (1) by a person certified by the
22department of health services under s. 254.176 (1).
AB726,3,2523
11. “Lead investigation" means a lead investigation, as defined in s. 254.11 (8s),
24that is conducted in accordance with the rules promulgated by the department of
25health services under s. 254.167.
AB726,4,1
112. “Lead risk assessor" has the meaning given in s. 254.11 (9g).
AB726,4,62
13. “Proof of successful abatement" means a document executed by a certified
3lead risk assessor or other person certified under s. 254.176 that certifies a finding
4by the assessor that lead hazard abatement in or on a dwelling, extended dwelling,
5or condominium unit permanently eliminated all lead hazards in the dwelling,
6extended dwelling, or condominium unit.
AB726,4,107
14. “Utility service connections" means improvements to real property
8necessary to connect a dwelling or a structure of a condominium, as defined in s.
9703.02 (4), to utility services, including heat, light, water, power,
10telecommunications services, and sewer services.
AB726,4,1811
(b)
Filing claims. Subject to the limitations and conditions provided in this
12subsection, for a taxable year in which a certificate of lead-free status or proof of
13successful abatement described under par. (c) 2. is first effective, a claimant may
14claim as a credit against the tax imposed under s. 71.02, up to the amount of those
15taxes, an amount equal to the amount the claimant paid for lead hazard abatement
16in or on a dwelling, extended dwelling, or condominium unit in this state owned by
17the claimant to which the certificate of lead-free status or proof of successful
18abatement relates.
AB726,5,219
(c)
Limitations and conditions. 1. Before commencing lead hazard abatement
20for which a credit may be claimed under this subsection, a claimant shall have a
21certified lead risk assessor or other person certified by the department of health
22services under s. 254.176 conduct a lead investigation of the dwelling, extended
23dwelling, or condominium unit to which the credit relates and determine that a
24lead-bearing paint hazard or lead hazard exists in or on the dwelling, extended
25dwelling, or condominium unit. In calculating the amount of the credit under this
1subsection, a claimant may not use any amounts paid for lead hazard abatement
2before the lead investigation and determination is completed.
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2. A claimant shall submit with the claimant's tax return all of the following
4that are applicable to the claimant's claim:
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a. If the lead investigation described under subd. 1. identified the presence of
6a lead-bearing paint hazard in or on the dwelling or condominium unit, a copy of a
7certificate of lead-free status issued with respect to the dwelling or condominium
8unit that is first effective in the taxable year to which the claim relates.
AB726,5,139
b. If the lead investigation described under subd. 1. identified the presence of
10a lead hazard other than a lead-bearing paint hazard in or on the dwelling, extended
11dwelling, or condominium unit, proof of successful abatement issued with respect to
12the dwelling, extended dwelling, or condominium unit that is first effective in the
13taxable year to which the claim relates.
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3. A certificate of lead-free status described under subd. 2. a. that is issued with
15respect to a dwelling shall cover the entire dwelling.
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4. Proof of successful abatement described under subd. 2. b. that is issued with
17respect to a dwelling or extended dwelling shall cover the entire dwelling or extended
18dwelling.
AB726,5,2419
5. To claim a credit under this subsection with respect to a condominium unit,
20in addition to a copy of the certificate of lead-free status and the proof of successful
21abatement described under subd. 2., a claimant shall submit with the claimant's tax
22return a copy of a certificate of lead-free status issued with respect to the
23condominium's common elements, as defined in s. 703.02 (2), except that the
24certificate need not cover any utility service connections that are common elements.
AB726,6,11
16. Notwithstanding par. (b), if a residential condominium's association, as
2defined in s. 703.02 (1m), paid for lead hazard abatement in or on the condominium's
3common elements, as defined in s. 703.02 (2), the association may claim a credit
4under this subsection even if the association does not own the common elements and
5even if the common elements do not constitute a dwelling or extended dwelling, or,
6at the option of the association, the condominium's unit owners, as defined in s.
7703.02 (17), may claim the credit in proportion to their percentage interests in the
8common elements, as determined under s. 703.13. If the association elects to allow
9the unit owners to claim the credit, the association shall compute the amount of the
10credit that each of the unit owners may claim and shall provide that information to
11each of them.
AB726,6,1312
7. A claimant may only claim a credit under this subsection within the time
13period specified under s. 71.75 (2).
AB726,6,1914
8. The maximum aggregate amount that one or more claimants may claim
15under this subsection and ss. 71.28 (8g) and 71.47 (8g) with respect to a particular
16dwelling, extended dwelling, or condominium unit is $1,500 per dwelling, extended
17dwelling, or condominium unit, except that, if the dwelling or extended dwelling
18contains more than one dwelling unit, the maximum aggregate amount is $1,500 per
19dwelling unit.
AB726,6,2120
9. Part-year residents and nonresidents of this state are not eligible for the
21credit under this subsection.
AB726,7,722
10. Partnerships, limited liability companies, and tax-option corporations may
23not claim the credit under this subsection, but the eligibility for, and the amount of,
24the credit are based on their payment of amounts described under par. (b), except
25that for each dwelling, extended dwelling, or condominium unit owned by the entity
1the aggregate amount of credits that the entity may compute may not exceed the
2limitation under subd. 8. A partnership, limited liability company, or tax-option
3corporation shall compute the amount of the credit that each of its partners,
4members, or shareholders may claim and shall provide that information to each of
5them. Partners, members of limited liability companies, and shareholders of
6tax-option corporations may claim the credit in proportion to their ownership
7interests.
AB726,7,158
11. Housing cooperatives incorporated under ch. 185 or organized under ch. 193
9may not claim the credit under this subsection, but the eligibility for, and the amount
10of, the credit are based on their payment of amounts described under par. (b), except
11that for each dwelling, extended dwelling, or condominium unit owned by the entity
12the aggregate amount of credits that the entity may compute may not exceed the
13limitation under subd. 8. A housing cooperative shall compute the amount of the
14credit that each of its members may claim and shall provide that information to each
15of them. Members may claim the credit in proportion to their ownership interests.
AB726,7,2016
12. If 2 or more persons own a dwelling, extended dwelling, or condominium
17unit, each person may claim a credit under par. (b) in proportion to the person's
18ownership interest, except that the aggregate amount of the credits claimed by all
19persons who own the dwelling, extended dwelling, or condominium unit may not
20exceed the limitation under subd. 8.
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(d)
Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
22credit under s. 71.28 (4), applies to the credit under this subsection.
AB726,8,223
2. If a credit computed under this subsection is not entirely offset against taxes
24otherwise due, the unused balance may be carried forward and credited against
25taxes otherwise due for the following 7 taxable years to the extent not offset by taxes
1otherwise due in all intervening years between the year in which the expense was
2incurred and the year in which the carry-forward credit is claimed.
AB726,3
3Section
3. 71.10 (4) (em) of the statutes is created to read:
AB726,8,44
71.10
(4) (em) Lead hazard abatement tax credit under s. 71.07 (8g).
AB726,8,107
71.21
(4) (a) The amount of the credits computed by a partnership under s.
871.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w),
9(3wm), (3y), (4k), (4n), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n),
(8g), and
10(8r) and passed through to partners shall be added to the partnership's income.
AB726,8,1813
71.26
(2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
14(1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (3wm), (3y), (5e),
15(5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8r),
(8g), and (9s) and not passed
16through by a partnership, limited liability company, or tax-option corporation that
17has added that amount to the partnership's, limited liability company's, or
18tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
AB726,6
19Section
6. 71.28 (8g) of the statutes is created to read:
AB726,8,2120
71.28
(8g) Lead hazard abatement tax credit. (a)
Definitions. In this
21subsection:
AB726,8,2522
1. “Certificate of lead-free status" means a certificate of lead-free status, as
23defined in s. 254.11 (4g), that is issued in accordance with the rules promulgated by
24the department of health services under s. 254.179 (1) and has not been revoked by
25the department of health services.
AB726,9,1
12. “Claimant" means a person who files a claim under this subsection.
AB726,9,32
3. “Condominium unit" means a unit, as defined in s. 703.02 (15), that is a
3dwelling unit.
AB726,9,74
4. “Dwelling" means any structure, all or part of which is designed or used for
5human habitation and includes a structure owned and occupied by members of a
6housing cooperative incorporated under ch. 185 or organized under ch. 193. A
7“dwelling" may contain one or more dwelling units.
AB726,9,108
5. “Dwelling unit" means a structure or that part of a structure that is designed,
9used, or intended to be used as a home, residence, or sleeping place by one person or
10by 2 or more persons maintaining a common household, to the exclusion of all others.
AB726,9,1211
6. “Extended dwelling" means a dwelling and the dwelling's utility service
12connections.
AB726,9,1313
7. “First effective" means:
AB726,9,1514
a. With respect to a certificate of lead-free status, the date listed on the
15certificate as the certificate's effective date.
AB726,9,1716
b. With respect to proof of successful abatement, the date on which the
17document is executed.
AB726,9,1818
8. “Lead-bearing paint hazard" has the meaning given in s. 254.11 (8d).
AB726,9,1919
9. “Lead hazard" has the meaning given in s. 254.11 (8g).
AB726,9,2320
10. “Lead hazard abatement" means lead hazard abatement, as defined in s.
21254.11 (8j), that is conducted in accordance with the rules promulgated by the
22department of health services under s. 254.172 (1) by a person certified by the
23department of health services under s. 254.176 (1).