Amendment SSA1-SB409

SB409-SSA1,9,13 71.07 (5r) Postsecondary education credit. (a) Definitions. In this subsection:

SB409-SSA1,9,16 1. "Claimant" means a sole proprietor, a partner, a member of a limited liability company, or a shareholder of a tax-option corporation who files a claim under this subsection.

SB409-SSA1,9,17 2. "Course of instruction" has the meaning given in s. 38.50 (1) (c).

SB409-SSA1,9,18 3. "Family member" has the meaning given in s. 157.061 (7).

SB409-SSA1,9,21 4. "Managing employee" means an individual who wholly or partially exercises operational or managerial control over, or who directly or indirectly conducts, the operation of the claimant's business.

SB409-SSA1,9,23 5. "Paid or incurred" includes any amount paid by the claimant to reimburse an individual for the tuition that the individual paid or incurred.

SB409-SSA1,9,24 6. "Qualified postsecondary institution" means all of the following:

SB409-SSA1,9,25 a. A University of Wisconsin System institution, a technical college system institution, or a regionally accredited 4-year nonprofit college or university having its regional headquarters and principal place of business in this state.

SB409-SSA1,10,5 b. A school approved under s. 38.50, if the delivery of education occurs in this state.

SB409-SSA1,10,8 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02 an amount equal to the following:

SB409-SSA1,10,12 1. Twenty-five percent of the tuition that the claimant paid or incurred for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a course of instruction and eligible for a grant from the Federal Pell Grant Program.

SB409-SSA1,10,18 2. Thirty percent of the tuition that the claimant paid or incurred for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a course of instruction that relates to a projected worker shortage in this state, as determined by the local workforce development boards established under 29 USC 2832, and if the individual was eligible for a grant from the Federal Pell Grant Program.

SB409-SSA1,10,21 (c) Limitations. 1. No credit may be allowed under par. (b) unless the claimant certifies to the department of revenue that the claimant will not be reimbursed for any amount of tuition for which the claimant claims a credit under par. (b).

SB409-SSA1,10,24 2. A claimant may not claim the credit under par. (b) for any tuition amounts that the individual described under par. (b) excluded under s. 71.05 (6) (b) 28. or under section 127 of the Internal Revenue Code.

SB409-SSA1,11,3 3. A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant paid or incurred for a family member of the claimant or for a family member of a managing employee unless all of the following apply:

SB409-SSA1,11,7 a. The family member was employed an average of at least 20 hours per week as an employee of the claimant, or the claimant's business, during the one-year period prior to commencing participation in the education program in connection with which the claimant claims a credit under par. (b).

SB409-SSA1,11,9 b. The family member is enrolled in a course of instruction that is substantially related to the claimant's business.

SB409-SSA1,11,11 3m. A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant paid or incurred for an individual who is not a resident of this state.

SB409-SSA1,11,15 4. The claimant shall claim the credit for the taxable year in which the individual graduates from a course of instruction in an amount equal to the total amount the claimant paid or incurred under par. (b) for all taxable years in which the claimant paid or incurred such amounts related to that individual.

SB409-SSA1,11,23 5. 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 tuition 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 interest.

SB409-SSA1,11,25 (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.

SB409-SSA1, s. 26 Section 26. 71.10 (4) (cd) of the statutes is created to read:

SB409-SSA1,12,2 71.10 (4) (cd) Postsecondary education credit under s. 71.07 (5r).

SB409-SSA1, s. 27 Section 27. 71.21 (4) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

SB409-SSA1,12,8 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), and (8r) and passed through to partners shall be added to the partnership's income.

SB409-SSA1, s. 28 Section 28. 71.26 (2) (a) 4. of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

SB409-SSA1,12,16 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), 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, limited liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).

SB409-SSA1, s. 29 Section 29. 71.28 (5r) of the statutes is created to read:

SB409-SSA1,12,19 71.28 (5r) Postsecondary education credit. (a) Definitions. In this subsection:

SB409-SSA1,12,20 1. "Claimant" means a corporation that files a claim under this subsection.

SB409-SSA1,12,21 2. "Course of instruction" has the meaning given in s. 38.50 (1) (c).

SB409-SSA1,12,22 3. "Family member" has the meaning given in s. 157.061 (7).

SB409-SSA1,12,25 4. "Managing employee" means an individual who wholly or partially exercises operational or managerial control over, or who directly or indirectly conducts, the operation of the claimant's business.

SB409-SSA1,13,2 5. "Paid or incurred" includes any amount paid by the claimant to reimburse an individual for the tuition that the individual paid or incurred.

SB409-SSA1,13,3 6. "Qualified postsecondary institution" means all of the following:

SB409-SSA1,13,6 a. A University of Wisconsin System institution, a technical college system institution, or a regionally accredited 4-year nonprofit college or university having its regional headquarters and principal place of business in this state.

SB409-SSA1,13,8 b. A school approved under s. 38.50, if the delivery of education occurs in this state.

SB409-SSA1,13,11 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.23 an amount equal to the following:

SB409-SSA1,13,15 1. Twenty-five percent of the tuition that the claimant paid or incurred for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a course of instruction and eligible for a grant from the Federal Pell Grant Program.

SB409-SSA1,13,21 2. Thirty percent of the tuition that the claimant paid or incurred for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a course of instruction that relates to a projected worker shortage in this state, as determined by the local workforce development boards established under 29 USC 2832, and if the individual was eligible for a grant from the Federal Pell Grant Program.

SB409-SSA1,13,24 (c) Limitations. 1. No credit may be allowed under par. (b) unless the claimant certifies to the department of revenue that the claimant will not be reimbursed for any amount of tuition for which the claimant claims a credit under par. (b).

SB409-SSA1,14,3 2. A claimant may not claim the credit under par. (b) for any tuition amounts that the individual described under par. (b) excluded under section 127 of the Internal Revenue Code.

SB409-SSA1,14,6 3. A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant paid or incurred for a family member of a managing employee unless all of the following apply:

SB409-SSA1,14,10 a. The family member was employed an average of at least 20 hours per week as an employee of the claimant, or the claimant's business, during the one-year period prior to commencing participation in the education program in connection with which the claimant claims a credit under par. (b).

SB409-SSA1,14,12 b. The family member is enrolled in a course of instruction that is substantially related to the claimant's business.

SB409-SSA1,14,14 3m. A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant paid or incurred for an individual who is not a resident of this state.

SB409-SSA1,14,18 4. The claimant shall claim the credit for the taxable year in which the individual graduates from a course of instruction in an amount equal to the total amount the claimant paid or incurred under par. (b) for all taxable years in which the claimant paid or incurred such amounts related to that individual.

SB409-SSA1,15,2 5. 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 tuition 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 interest.

SB409-SSA1,15,4 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB409-SSA1, s. 30 Section 30. 71.30 (3) (cd) of the statutes is created to read:

SB409-SSA1,15,6 71.30 (3) (cd) Postsecondary education credit under s. 71.28 (5r).

SB409-SSA1, s. 31 Section 31. 71.34 (1k) (g) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

SB409-SSA1,15,12 71.34 (1k) (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), (1dy), (3), (3g), (3h), (3n), (3p), (3q), (3r), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), and (8r) and passed through to shareholders.

SB409-SSA1, s. 32 Section 32. 71.45 (2) (a) 10. of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

SB409-SSA1,15,21 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), 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, 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).

SB409-SSA1, s. 33 Section 33. 71.47 (5r) of the statutes is created to read:

SB409-SSA1,15,24 71.47 (5r) Postsecondary education credit. (a) Definitions. In this subsection:

SB409-SSA1,15,25 1. "Claimant" means a corporation that files a claim under this subsection.

SB409-SSA1,15,26 2. "Course of instruction" has the meaning given in s. 38.50 (1) (c).

SB409-SSA1,16,2 3. "Family member" has the meaning given in s. 157.061 (7).

SB409-SSA1,16,5 4. "Managing employee" means an individual who wholly or partially exercises operational or managerial control over, or who directly or indirectly conducts, the operation of the claimant's business.

SB409-SSA1,16,7 5. "Paid or incurred" includes any amount paid by the claimant to reimburse an individual for the tuition that the individual paid or incurred.

SB409-SSA1,16,8 6. "Qualified postsecondary institution" means all of the following:

SB409-SSA1,16,11 a. A University of Wisconsin System institution, a technical college system institution, or a regionally accredited 4-year nonprofit college or university having its regional headquarters and principal place of business in this state.

SB409-SSA1,16,13 b. A school approved under s. 38.50, if the delivery of education occurs in this state.

SB409-SSA1,16,16 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.43 an amount equal to the following:

SB409-SSA1,16,20 1. Twenty-five percent of the tuition that the claimant paid or incurred for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a course of instruction and eligible for a grant from the Federal Pell Grant Program.

SB409-SSA1,17,2 2. Thirty percent of the tuition that the claimant paid or incurred for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a course of instruction that relates to a projected worker shortage in this state, as determined by the local workforce development boards established under 29 USC 2832, and if the individual was eligible for a grant from the Federal Pell Grant Program.

SB409-SSA1,17,5 (c) Limitations. 1. No credit maybe allowed under par. (b) unless the claimant certifies to the department of revenue that the claimant will not be reimbursed for any amount of tuition for which the claimant claims a credit under par. (b).

SB409-SSA1,17,8 2. A claimant may not claim the credit under par. (b) for any tuition amounts that the individual described under par. (b) excluded under section 127 of the Internal Revenue Code.

SB409-SSA1,17,11 3. A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant paid or incurred for a family member of a managing employee unless all of the following apply:

SB409-SSA1,17,15 a. The family member was employed an average of at least 20 hours per week as an employee of the claimant, or the claimant's business, during the one-year period prior to commencing participation in the education program in connection with which the claimant claims a credit under par. (b).

SB409-SSA1,17,17 b. The family member is enrolled in a course of instruction that is substantially related to the claimant's business.

SB409-SSA1,17,19 3m. A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant paid or incurred for an individual who is not a resident of this state.

SB409-SSA1,17,23 4. The claimant shall claim the credit for the taxable year in which the individual graduates from a course of instruction in an amount equal to the total amount the claimant paid or incurred under par. (b) for all taxable years in which the claimant paid or incurred such amounts related to that individual.

SB409-SSA1,18,6 5. 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 tuition 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 interest.

SB409-SSA1,18,8 (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.

SB409-SSA1, s. 34 Section 34. 71.49 (1) (cd) of the statutes is created to read:

SB409-SSA1,18,10 71.49 (1) (cd) Postsecondary education credit under s. 71.47 (5r).

SB409-SSA1, s. 35 Section 35. 77.92 (4) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

SB409-SSA1,19,3 77.92 (4) "Net business income," with respect to a partnership, means taxable income as calculated under section 703 of the Internal Revenue Code; plus the items of income and gain under section 702 of the Internal Revenue Code, including taxable state and municipal bond interest and excluding nontaxable interest income or dividend income from federal government obligations; minus the items of loss and deduction under section 702 of the Internal Revenue Code, except items that are not deductible under s. 71.21; plus guaranteed payments to partners under section 707 (c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), and (8r); and plus or minus, as appropriate, transitional adjustments, depreciation differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain, loss, and deductions from farming. "Net business income," with respect to a natural person, estate, or trust, means profit from a trade or business for federal income tax purposes and includes net income derived as an employee as defined in section 3121 (d) (3) of the Internal Revenue Code.

SB409-SSA1, s. 36 Section 36. 560.203 of the statutes is created to read:

SB409-SSA1,19,15 560.203 Targeted microloans. The department shall create a pilot program for making microloans from the appropriation under s. 20.143 (1) (c) at nominal interest rates for the creation of new businesses. The department shall designate 2 areas of the state, one urban and one rural, that are affected by high unemployment. Only residents of the areas designated by the department are eligible for loans under this section, and the amount of a loan under this section may not exceed $25,000. The department shall, through a competitive process, select a Wisconsin nonprofit finance corporation to administer the pilot program. The department shall partner with federal, state, regional, and local economic development entities to provide business training for applicants and borrowers under this section. The department may not make a loan under this section after July 31, 2013.

SB409-SSA1, s. 37 Section 37. 560.205 (3) (d) of the statutes, as affected by 2009 Wisconsin Act 2, is renumbered 560.205 (3) (d) (intro.) and amended to read:

SB409-SSA1,20,20 560.205 (3) (d) Rules. (intro.) The department of commerce, in consultation with the department of revenue, shall promulgate rules to administer this section. The rules shall further define "bona fide angel investment" for purposes of s. 71.07 (5d) (a) 1. The rules shall limit the aggregate amount of tax credits under s. 71.07 (5d) that may be claimed for investments in businesses certified under sub. (1) at $3,000,000 per calendar year for calendar years beginning after December 31, 2004, and before January 1, 2008, $5,500,000 per calendar year for calendar years beginning after December 31, 2007, and before January 1, 2011 2010, $6,500,000 for calendar year 2010, and $18,000,000 $20,000,000 per calendar year for calendar years beginning after December 31, 2010, plus, for taxable years beginning after December 31, 2010, an additional $250,000 for tax credits that may be claimed for investments in nanotechnology businesses certified under sub. (1). The rules shall also limit the aggregate amount of the tax credits under ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638 that may be claimed for investments paid to fund managers certified under sub. (2) at $3,500,000 per calendar year for calendar years beginning after December 31, 2004, and before January 1, 2008, $6,000,000 per calendar year for calendar years beginning after December 31, 2007, and before January 1, 2011 2010, $8,000,000 for calendar year 2010, and $18,500,000 $20,500,000 per calendar year for calendar years beginning after December 31, 2010, plus, for taxable years beginning after December 31, 2010, an additional $250,000 for tax credits that may be claimed for investments in nanotechnology businesses certified under sub. (1). The rules shall also provide that, for calendar years beginning after December 31, 2007, no person may receive a credit under ss. 71.07 (5b) and (5d), 71.28 (5b), 71.47 (5b), or 76.638 unless the person's investment is kept in a certified business, or with a certified fund manager, for no less than 3 years. The rules shall permit the department to reallocate credits under this section that are unused in any calendar year to a person eligible for tax benefits, as defined under s. 560.2055 (1) (d) or 560.799 (1) (c), if all of the following apply:

SB409-SSA1, s. 38 Section 38. 560.205 (3) (d) 1. of the statutes is created to read:

SB409-SSA1,20,23 560.205 (3) (d) 1. The department notifies the joint committee on finance in writing of its proposed reallocation.

SB409-SSA1, s. 39 Section 39. 560.205 (3) (d) 2. of the statutes is created to read:

SB409-SSA1,20,25 560.205 (3) (d) 2. One of the following is true: