Amendment ASA1-AB235

LRBs0099/1

JK:jld:rs

2007 - 2008 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO 2007 ASSEMBLY BILL 235

June 18, 2007 - Offered by Representative Moulton.

AB235-ASA1,1,5 An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a), 71.34 (1) (g), 71.45 (2) (a) 10. and 77.92 (4); and to create 71.07 (5i), 71.10 (4) (cs), 71.28 (5i), 71.30 (3) (epa), 71.47 (5i), 71.49 (1) (epa) and 560.204 of the statutes; relating to: an income and franchise tax credit for workplace wellness programs, granting rule-making authority, and requiring the exercise of rule-making authority.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB235-ASA1, s. 1 Section 1. 71.05 (6) (a) 15. of the statutes is amended to read:

AB235-ASA1,1,11 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3n), (3s), (3t), (3w), (5b), (5d), and (5e), (5f), and (5h), and (5i) 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 (1) (g).

AB235-ASA1, s. 2 Section 2. 71.07 (5i) of the statutes is created to read:

AB235-ASA1,2,2 71.07 (5i) Workplace wellness program credit. (a) Definitions. In this subsection:

AB235-ASA1,2,3 1. "Claimant" means a person who files a claim under this subsection.

AB235-ASA1,2,8 2. "Health risk assessment" means a computer-based health-promotion tool consisting of a questionnaire; a biometric heath screening to measure vital health statistics, including blood pressure, cholesterol, glucose, weight, and height; a formula for estimating health risks; an advice database; and a means to generate reports.

AB235-ASA1,2,11 3. "Workplace wellness program" means a health or fitness program, as defined by rule under s. 560.204 (4), that is provided with health risk assessments and may include any of the following programs or services:

AB235-ASA1,2,12 a. Smoking cessation.

AB235-ASA1,2,13 b. Weight management.

AB235-ASA1,2,14 c. Stress management.

AB235-ASA1,2,15 d. Worker injury prevention programs.

AB235-ASA1,2,16 e. Health screenings.

AB235-ASA1,2,17 f. Nutrition education.

AB235-ASA1,2,18 g. Health or fitness incentive programs.

AB235-ASA1,2,21 (b) Filing claims. Subject to the limitations provided in this subsection and s. 560.204, a claimant may claim as a credit against the taxes imposed under s. 71.02, up to the amount of those taxes, an amount that is equal to the following:

AB235-ASA1,3,2 1. For a workplace wellness program that the claimant first provides after December 31, 2007, 30 percent of the amount that the claimant paid in the taxable year to provide the workplace wellness program to the claimant's employees who are employed in this state, not including any amount paid to acquire, construct, rehabilitate, remodel, or repair real property.

AB235-ASA1,3,7 2. For a workplace wellness program that the claimant provided prior to January 1, 2008, to the claimant's employees who are employed in this state, 30 percent of any increase in the claimant's expenditures related to expanding the workplace wellness program, not including any amount paid to acquire, construct, rehabilitate, remodel, or repair real property.

AB235-ASA1,3,12 (c) Limitations. 1. The maximum amount of the credits that may be claimed under this subsection and ss. 71.28 (5i) and 71.47 (5i) in any taxable year is $2,500,000 for all claimants who employ 50 or fewer employees in the taxable year and $2,500,000 for all claimants who employ more than 50 employees in the taxable year.

AB235-ASA1,3,14 2. No claimant may claim the credit under this subsection for more than 3 taxable years.

AB235-ASA1,3,20 3. For purposes of par. (b) 2., the amount of a claimant's increased expenditures related to expanding a workplace wellness program is the amount the claimant paid to provide the workplace wellness program in the taxable year for which the claimant claims a credit under par. (b) 2., less the amount that the claimant paid to provide the workplace wellness program in the taxable year immediately preceding the taxable year for which the claimant first claimed a credit under par. (b) 2.

AB235-ASA1,4,3 4. 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 payment of amounts 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.

AB235-ASA1,4,5 (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.

AB235-ASA1, s. 3 Section 3. 71.10 (4) (cs) of the statutes is created to read:

AB235-ASA1,4,7 71.10 (4) (cs) Workplace wellness program credit under s. 71.07 (5i).

AB235-ASA1, s. 4 Section 4. 71.21 (4) of the statutes is amended to read:

AB235-ASA1,4,11 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3n), (3s), (3t), (3w), (5b), (5e), (5f), (5g), and (5h), and (5i) and passed through to partners shall be added to the partnership's income.

AB235-ASA1, s. 5 Section 5. 71.26 (2) (a) of the statutes is amended to read:

AB235-ASA1,5,5 71.26 (2) (a) Corporations in general. The "net income" of a corporation means the gross income as computed under the Internal Revenue Code as modified under sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit computed under s. 71.28 (1), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c) 7., the amount of the credit under s. 71.28 (3) that the taxpayer added to income under this paragraph at the time that the taxpayer first claimed the credit plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3g), (3n), (3t), (3w), (5b), (5e), (5f), (5g), and (5h), and (5i) 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 (1) (g) plus the amount of losses from the sale or other disposition of assets the gain from which would be wholly exempt income, as defined in sub. (3) (L), if the assets were sold or otherwise disposed of at a gain and minus deductions, as computed under the Internal Revenue Code as modified under sub. (3), plus or minus, as appropriate, an amount equal to the difference between the federal basis and Wisconsin basis of any asset sold, exchanged, abandoned, or otherwise disposed of in a taxable transaction during the taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).

AB235-ASA1, s. 6 Section 6. 71.28 (5i) of the statutes is created to read:

AB235-ASA1,5,8 71.28 (5i) Workplace wellness program credit. (a) Definitions. In this subsection:

AB235-ASA1,5,9 1. "Claimant" means a person who files a claim under this subsection.

AB235-ASA1,5,14 2. "Health risk assessment" means a computer-based health-promotion tool consisting of a questionnaire; a biometric heath screening to measure vital health statistics, including blood pressure, cholesterol, glucose, weight, and height; a formula for estimating health risks; an advice database; and a means to generate reports.

AB235-ASA1,5,17 3. "Workplace wellness program" means a health or fitness program, as defined by rule under s. 560.204 (4), that is provided with health risk assessments and may include any of the following programs or services:

AB235-ASA1,5,18 a. Smoking cessation.

AB235-ASA1,5,19 b. Weight management.

AB235-ASA1,5,20 c. Stress management.

AB235-ASA1,5,21 d. Worker injury prevention programs.

AB235-ASA1,5,22 e. Health screenings.

AB235-ASA1,5,23 f. Nutrition education.

AB235-ASA1,5,24 g. Health or fitness incentive programs.

AB235-ASA1,6,3 (b) Filing claims. Subject to the limitations provided in this subsection and s. 560.204, a claimant may claim as a credit against the taxes imposed under s. 71.23, up to the amount of those taxes, an amount that is equal to the following:

AB235-ASA1,6,8 1. For a workplace wellness program that the claimant first provides after December 31, 2007, 30 percent of the amount that the claimant paid in the taxable year to provide the workplace wellness program to the claimant's employees who are employed in this state, not including any amount paid to acquire, construct, rehabilitate, remodel, or repair real property.

AB235-ASA1,6,13 2. For a workplace wellness program that the claimant provided prior to January 1, 2008, to the claimant's employees who are employed in this state, 30 percent of any increase in the claimant's expenditures related to expanding the workplace wellness program, not including any amount paid to acquire, construct, rehabilitate, remodel, or repair real property.

AB235-ASA1,6,18 (c) Limitations. 1. The maximum amount of the credits that may be claimed under this subsection and ss. 71.07 (5i) and 71.47 (5i) in any taxable year is $2,500,000 for all claimants who employ 50 or fewer employees in the taxable year and $2,500,000 for all claimants who employ more than 50 employees in the taxable year.

AB235-ASA1,6,20 2. No claimant may claim the credit under this subsection for more than 3 taxable years.

AB235-ASA1,7,2 3. For purposes of par. (b) 2., the amount of a claimant's increased expenditures related to expanding a workplace wellness program is the amount the claimant paid to provide the workplace wellness program in the taxable year for which the claimant claims a credit under par. (b) 2., less the amount that the claimant paid to provide the workplace wellness program in the taxable year immediately preceding the taxable year for which the claimant first claimed a credit under par. (b) 2.

AB235-ASA1,7,10 4. 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 payment of amounts 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.

AB235-ASA1,7,12 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB235-ASA1, s. 7 Section 7. 71.30 (3) (epa) of the statutes is created to read:

AB235-ASA1,7,14 71.30 (3) (epa) Workplace wellness program credit under s. 71.28 (5i).

AB235-ASA1, s. 8 Section 8. 71.34 (1) (g) of the statutes is amended to read:

AB235-ASA1,7,19 71.34 (1) (g) An addition shall be made for credits computed by a tax-option corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g), (3n), (3t), (3w), (5b), (5e), (5f), (5g), and (5h) , and (5i) and passed through to shareholders.

AB235-ASA1, s. 9 Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:

AB235-ASA1,8,2 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dx), (3n), (3w), (5b), (5e), (5f), (5g), and (5h), and (5i) 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 (1) (g) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4), and (5).

AB235-ASA1, s. 10 Section 10. 71.47 (5i) of the statutes is created to read:

AB235-ASA1,8,5 71.47 (5i) Workplace wellness program credit. (a) Definitions. In this subsection:

AB235-ASA1,8,6 1. "Claimant" means a person who files a claim under this subsection.

AB235-ASA1,8,11 2. "Health risk assessment" means a computer-based health-promotion tool consisting of a questionnaire; a biometric heath screening to measure vital health statistics, including blood pressure, cholesterol, glucose, weight, and height; a formula for estimating health risks; an advice database; and a means to generate reports.

AB235-ASA1,8,14 3. "Workplace wellness program" means a health or fitness program, as defined by rule under s. 560.204 (4), and includes health risk assessments and may include any of the following programs or services:

AB235-ASA1,8,15 a. Smoking cessation.

AB235-ASA1,8,16 b. Weight management.

AB235-ASA1,8,17 c. Stress management.

AB235-ASA1,8,18 d. Worker injury prevention programs.

AB235-ASA1,8,19 e. Health screenings.

AB235-ASA1,8,20 f. Nutrition education.

AB235-ASA1,8,21 g. Health or fitness incentive programs.

AB235-ASA1,8,24 (b) Filing claims. Subject to the limitations provided in this subsection and s. 560.204, a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of those taxes, an amount that is equal to the following:

AB235-ASA1,9,5 1. For a workplace wellness program that the claimant first provides after December 31, 2007, 30 percent of the amount that the claimant paid in the taxable year to provide the workplace wellness program to the claimant's employees who are employed in this state, not including any amount paid to acquire, construct, rehabilitate, remodel, or repair real property.

AB235-ASA1,9,10 2. For a workplace wellness program that the claimant provided prior to January 1, 2008, to the claimant's employees who are employed in this state, 30 percent of any increase in the claimant's expenditures related to expanding the workplace wellness program, not including any amount paid to acquire, construct, rehabilitate, remodel, or repair real property.

AB235-ASA1,9,15 (c) Limitations. 1. The maximum amount of the credits that may be claimed under this subsection and ss. 71.07 (5i) and 71.28 (5i) in any taxable year is $2,500,000 for all claimants who employ 50 or fewer employees in the taxable year and $2,500,000 for all claimants who employ more than 50 employees in the taxable year.

AB235-ASA1,9,17 2. No claimant may claim the credit under this subsection for more than 3 taxable years.

AB235-ASA1,9,23 3. For purposes of par. (b) 2., the amount of a claimant's increased expenditures related to expanding a workplace wellness program is the amount the claimant paid to provide the workplace wellness program in the taxable year for which the claimant claims a credit under par. (b) 2., less the amount that the claimant paid to provide the workplace wellness program in the taxable year immediately preceding the taxable year for which the claimant first claimed a credit under par. (b) 2.