SB112: Bill Text

LRB-0591/1

JK:amn

2017 - 2018 LEGISLATURE

2017 Senate BILL 112

March 16, 2017 - Introduced by Senators C. Larson, Johnson and L. Taylor, cosponsored by Representatives Brostoff, Sinicki, Goyke, Kessler, Berceau, Sargent and Zamarripa. Referred to Committee on Revenue, Financial Institutions and Rural Issues.

SB112,1,4 An Act to amend 71.05 (6) (a) 15., 71.21 (4) (a), 71.26 (2) (a) 4., 71.34 (1k) (g) and 71.45 (2) (a) 10.; and to create 71.07 (8b), 71.10 (4) (cs), 71.28 (8b), 71.30 (3) (cs), 71.47 (8b) and 71.49 (1) (cs) of the statutes; relating to: a tax credit for hiring certain apprentices from the Milwaukee Institute of Art and Design.

Analysis by the Legislative Reference Bureau

This bill allows a business to claim an income and franchise tax credit equal to $2,500 for each employee who is employed through the Milwaukee Institute of Art and Design apprenticeship program funded by an American Apprenticeship Initiative grant through the United States Department of Labor. To claim the credit, the business must be located in this state and engaged in a design apprenticeship activity consistent with the purposes for which the school received the grant. The maximum amount of the credit that may be claimed for all claimants and all taxable years is $750,000.

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:

SB112,1 Section 1. 71.05 (6) (a) 15. of the statutes is amended to read:

SB112,2,6 71.05 (6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (3y), (4k), (4n), (5e), (5f), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8b), 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).

SB112,2 Section 2. 71.07 (8b) of the statutes is created to read:

SB112,2,9 71.07 (8b) Apprenticeship program credit. (a) Definition. In this subsection, “claimant” means a person who files a claim under this subsection.

SB112,2,13 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim a credit against the taxes imposed under s. 71.02, up to the amount of the tax, an amount equal to $2,500 multiplied by the number of the claimant's employees who satisfy all of the following conditions:

SB112,2,17 1. In the taxable year for which the claimant claims a credit under this subsection, the employee is employed through the Milwaukee Institute of Art and Design apprentice program funded by an American apprenticeship initiative grant through the U.S. department of labor.

SB112,2,21 2. The employee is employed by a business owned by the claimant that is located in this state and that is engaged in a design apprenticeship activity consistent with the purposes for which the Milwaukee Institute of Art and Design received the grant described under subd. 1.

SB112,2,24 (c) Limitations. 1. No person may claim the credit under this subsection unless the person first applies for the credit with the department, in the manner prescribed by the department, and the department approves the credit.

SB112,3,5 2. The total amount of the credits that claimants may claim under this subsection and ss. 71.28 (8b) and 71.47 (8b) is $750,000. The department may adjust the amount of any credits claimed under this subsection and ss. 71.28 (8b) and 71.47 (8b) at the time that applications are made under subd. 1. and ss. 71.28 (8b) (c) 1. and 71.47 (8b) (c) 1. so that the limit under this subdivision is not exceeded.

SB112,3,13 3. 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 eligible employees 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.

SB112,3,15 (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.

SB112,3 Section 3. 71.10 (4) (cs) of the statutes is created to read:

SB112,3,17 71.10 (4) (cs) Apprenticeship program credit under s. 71.07 (8b).

SB112,4 Section 4. 71.21 (4) (a) of the statutes is amended to read:

SB112,3,22 71.21 (4) (a) The amount of the credits computed by a partnership under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (3y), (4k), (4n), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8b), and (8r) and passed through to partners shall be added to the partnership's income.

SB112,5 Section 5. 71.26 (2) (a) 4. of the statutes is amended to read:

SB112,4,4 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8b), (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).

SB112,6 Section 6. 71.28 (8b) of the statutes is created to read:

SB112,4,7 71.28 (8b) Apprenticeship program credit. (a) Definition. In this subsection, “claimant” means a person who files a claim under this subsection.

SB112,4,11 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim a credit against the taxes imposed under s. 71.23, up to the amount of the tax, an amount equal to $2,500 multiplied by the number of the claimant's employees who satisfy all of the following conditions:

SB112,4,15 1. In the taxable year for which the claimant claims a credit under this subsection, the employee is employed through the Milwaukee Institute of Art and Design apprentice program funded by an American apprenticeship initiative grant through the U.S. department of labor.

SB112,4,19 2. The employee is employed by a business owned by the claimant that is located in this state and that is engaged in a design apprenticeship activity consistent with the purposes for which the Milwaukee Institute of Art and Design received the grant described under subd. 1.

SB112,4,22 (c) Limitations. 1. No person may claim the credit under this subsection unless the person first applies for the credit with the department, in the manner prescribed by the department, and the department approves the credit.

SB112,5,2 2. The total amount of the credits that claimants may claim under this subsection and ss. 71.07 (8b) and 71.47 (8b) is $750,000. The department may adjust the amount of any credits claimed under this subsection and ss. 71.07 (8b) and 71.47 (8b) at the time that applications are made under subd. 1. and ss. 71.07 (8b) (c) 1. and 71.47 (8b) (c) 1. so that the limit under this subdivision is not exceeded.

SB112,5,10 3. 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 eligible employees 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.

SB112,5,12 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB112,7 Section 7. 71.30 (3) (cs) of the statutes is created to read:

SB112,5,14 71.30 (3) (cs) Apprenticeship program credit under s. 71.28 (8b).

SB112,8 Section 8. 71.34 (1k) (g) of the statutes is amended to read:

SB112,5,19 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (3y), (4), (5), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8b), and (8r) and passed through to shareholders.

SB112,9 Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:

SB112,6,2 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3w), (3y), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8b), (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).

SB112,10 Section 10. 71.47 (8b) of the statutes is created to read:

SB112,6,5 71.47 (8b) Apprenticeship program credit. (a) Definition. In this subsection, “claimant” means a person who files a claim under this subsection.

SB112,6,9 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim a credit against the taxes imposed under s. 71.43, up to the amount of the tax, an amount equal to $2,500 multiplied by the number of the claimant's employees who satisfy all of the following conditions:

SB112,6,13 1. In the taxable year for which the claimant claims a credit under this subsection, the employee is employed through the Milwaukee Institute of Art and Design apprentice program funded by an American apprenticeship initiative grant through the U.S. department of labor.

SB112,6,17 2. The employee is employed by a business owned by the claimant that is located in this state and that is engaged in a design apprenticeship activity consistent with the purposes for which the Milwaukee Institute of Art and Design received the grant described under subd. 1.

SB112,6,20 (c) Limitations. 1. No person may claim the credit under this subsection unless the person first applies for the credit with the department, in the manner prescribed by the department, and the department approves the credit.

SB112,6,25 2. The total amount of the credits that claimants may claim under this subsection and ss. 71.07 (8b) and 71.28 (8b) is $750,000. The department may adjust the amount of any credits claimed under this subsection and ss. 71.07 (8b) and 71.28 (8b) at the time that applications are made under subd. 1. and ss. 71.07 (8b) (c) 1. and 71.28 (8b) (c) 1. so that the limit under this subdivision is not exceeded.

SB112,7,8 3. 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 eligible employees 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.

SB112,7,10 (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.

SB112,11 Section 11. 71.49 (1) (cs) of the statutes is created to read:

SB112,7,12 71.49 (1) (cs) Apprenticeship program credit under s. 71.47 (8b).

SB112,12 Section 12. Initial applicability.

SB112,7,14 (1) This act first applies to taxable years beginning on January 1, 2017.

SB112,7,15 (End)