LRBs0638/1
MES:jlg:ijs
1997 - 1998 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 1997 ASSEMBLY BILL 901
March 17, 1998 - Offered by
Committee on Agriculture.
AB901-ASA1,1,5
1An Act to amend 71.05 (6) (a) 15., 71.08 (1) (intro.), 71.21 (4), 71.26 (2) (a), 71.34
2(1) (g), 71.45 (2) (a) 10. and 77.92 (4); and
to create 71.07 (3e), 71.10 (4) (cm),
371.28 (2e), 71.30 (3) (cm), 71.47 (2e) and 71.49 (1) (cm) of the statutes;
relating
4to: creating a nonrefundable income and franchise tax credit for agricultural
5education expenses.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB901-ASA1,1,128
71.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
9(2di), (2dj), (2dL), (2dr), (2ds), (2dx)
, (3e) and (3s) and not passed through by a
10partnership, limited liability company or tax-option corporation that has added that
11amount to the partnership's, company's or tax-option corporation's income under s.
1271.21 (4) or 71.34 (1) (g).
AB901-ASA1,2,22
71.07
(3e) Farmland education tax credit. (a)
Definitions. In this subsection:
AB901-ASA1,2,33
1. "Agricultural use" has the meaning given in s. 91.01 (1).
AB901-ASA1,2,44
2. "Claimant" has the meaning given in sub. (3m) (a) 1.
AB901-ASA1,2,55
3. "Department" means the department of revenue.
AB901-ASA1,2,76
4. "Educational expenses" means amounts paid by the claimant for tuition and
7textbooks that relate to the claimant's attendance at an eligible institution.
AB901-ASA1,2,138
5. "Eligible institution" means a center or institution within the University of
9Wisconsin System, a technical college that is located in this state or any institution
10of higher education located in this state that grants a bachelor's or higher degree and
11that is accredited by the North Central Association of Colleges and Schools, the
12Independent Schools Association of the Central States or the Wisconsin Nonpublic
13School Accrediting Association.
AB901-ASA1,2,1514
6. "Farming" means being actively engaged in a trade or business that involves
15the agricultural use of farmland.
AB901-ASA1,2,1616
7. "Farmland" has the meaning given in sub. (3m) (a) 3.
AB901-ASA1,2,1817
8. "Livestock" means cattle, swine, sheep, goats and other species of animals
18that may be used in the production of food for human consumption.
AB901-ASA1,2,2319
(b)
Filing claims. Subject to the limitations provided in this subsection, a
20claimant may claim as a credit against the tax imposed under s. 71.02, up to the
21amount of those taxes, an amount equal to 5% of the educational expenses incurred
22by the claimant, in the year to which the claim relates, for the claimant to attend
23courses in the fields of agriculture or farm management at an eligible institution.
AB901-ASA1,2,2424
(c)
Limitations. No credit may be allowed under this subsection:
AB901-ASA1,3,2
11. Unless a claim is filed with the department in conformity with the filing
2requirements in s. 71.03 (6) and (7).
AB901-ASA1,3,33
2. Unless it is claimed within the time period under s. 71.75 (2).
AB901-ASA1,3,64
3. If the department determines that ownership of the farmland has been
5transferred to the claimant for the purpose of maximizing benefits under this
6subsection.
AB901-ASA1,3,87
4. If the department determines that the claimant is not farming in the year
8to which the claim relates.
AB901-ASA1,3,119
(d)
Change of business, carry-over, administration, timeliness, nonclaimants. 10Section 71.28 (4) (e), (f), (g), (h) and (i), as it applies to the credit under s. 71.28 (4),
11applies to the credit under this subsection.
AB901-ASA1,3,2114
71.08
(1) Imposition. (intro.) If the tax imposed on a natural person, married
15couple filing jointly, trust or estate under s. 71.02, not considering the credits under
16ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd),
(3e), (3m), (6) and
17(9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd) and (2m) and 71.47 (1dd),
18(1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd) and (2m) and subchs. VIII and IX and
19payments to other states under s. 71.07 (7), is less than the tax under this section,
20there is imposed on that natural person, married couple filing jointly, trust or estate,
21instead of the tax under s. 71.02, an alternative minimum tax computed as follows:
AB901-ASA1, s. 4
22Section
4. 71.10 (4) (cm) of the statutes is created to read:
AB901-ASA1,3,2323
71.10
(4) (cm) Farmland education tax credit under s. 71.07 (3e).
AB901-ASA1,4,3
171.21
(4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
2(2dj), (2dL), (2ds), (2dx)
, (3e) and (3s) and passed through to partners shall be added
3to the partnership's income.
AB901-ASA1,4,206
71.26
(2) (a)
Corporations in general. The "net income" of a corporation means
7the gross income as computed under the internal revenue code as modified under
8sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
9computed under s. 71.28 (1) and (3) to (5) plus the amount of the credit computed
10under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds)
and
, (1dx)
and (2e) and not passed
11through by a partnership, limited liability company or tax-option corporation that
12has added that amount to the partnership's, limited liability company's or tax-option
13corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from
14the sale or other disposition of assets the gain from which would be wholly exempt
15income, as defined in sub. (3) (L), if the assets were sold or otherwise disposed of at
16a gain and minus deductions, as computed under the internal revenue code as
17modified under sub. (3), plus or minus, as appropriate, an amount equal to the
18difference between the federal basis and Wisconsin basis of any asset sold,
19exchanged, abandoned or otherwise disposed of in a taxable transaction during the
20taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).
AB901-ASA1,4,2222
71.28
(2e) Farmland education tax credit. (a)
Definitions. In this subsection:
AB901-ASA1,4,2323
1. "Agricultural use" has the meaning given in s. 91.01 (1).
AB901-ASA1,4,2424
2. "Claimant" has the meaning given in sub. (2m) (a) 1.
AB901-ASA1,4,2525
3. "Department" means the department of revenue.
AB901-ASA1,5,3
14. "Educational expenses" means amounts paid by the claimant for tuition and
2textbooks that relate to the claimant's employe's attendance at an eligible
3institution.
AB901-ASA1,5,94
5. "Eligible institution" means a center or institution within the University of
5Wisconsin System, a technical college that is located in this state or any institution
6of higher education located in this state that grants a bachelor's or higher degree and
7that is accredited by the North Central Association of Colleges and Schools, the
8Independent Schools Association of the Central States or the Wisconsin Nonpublic
9School Accrediting Association.
AB901-ASA1,5,1110
6. "Farming" means being actively engaged in a trade or business that involves
11the agricultural use of farmland.
AB901-ASA1,5,1212
7. "Farmland" has the meaning given in sub. (2m) (a) 3.
AB901-ASA1,5,1413
8. "Livestock" means cattle, swine, sheep, goats and other species of animals
14that may be used in the production of food for human consumption.
AB901-ASA1,5,2015
(b)
Filing claims. Subject to the limitations provided in this subsection, a
16claimant may claim as a credit against the tax imposed under s. 71.23, up to the
17amount of those taxes, an amount equal to 5% of the educational expenses incurred
18by the claimant, in the year to which the claim relates, for the claimant's employes
19to attend courses in the fields of agriculture or farm management at an eligible
20institution.
AB901-ASA1,5,2121
(c)
Limitations. No credit may be allowed under this subsection:
AB901-ASA1,5,2322
1. Unless a claim is filed with the department in conformity with the filing
23requirements in s. 71.24 (1), (6) and (7).
AB901-ASA1,6,3
12. If the department determines that ownership of the farmland has been
2transferred to the claimant for the purpose of maximizing benefits under this
3subsection.
AB901-ASA1,6,54
3. If the department determines that the claimant is not farming in the year
5to which the claim relates.
AB901-ASA1,6,86
(d)
Change of business, carry-over, administration, timeliness, nonclaimants. 7Subsection (4) (e), (f), (g), (h) and (i), as it applies to the credit under sub. (4), applies
8to the credit under this subsection.
