SB409-SSA1,9,1312 71.07 (5r) Postsecondary education credit. (a) Definitions. In this
13subsection:
SB409-SSA1,9,1614 1. "Claimant" means a sole proprietor, a partner, a member of a limited liability
15company, or a shareholder of a tax-option corporation who files a claim under this
16subsection.
SB409-SSA1,9,1717 2. "Course of instruction" has the meaning given in s. 38.50 (1) (c).
SB409-SSA1,9,1818 3. "Family member" has the meaning given in s. 157.061 (7).
SB409-SSA1,9,2119 4. "Managing employee" means an individual who wholly or partially exercises
20operational or managerial control over, or who directly or indirectly conducts, the
21operation of the claimant's business.
SB409-SSA1,9,2322 5. "Paid or incurred" includes any amount paid by the claimant to reimburse
23an individual for the tuition that the individual paid or incurred.
SB409-SSA1,9,2424 6. "Qualified postsecondary institution" means all of the following:
SB409-SSA1,9,25
1a. A University of Wisconsin System institution, a technical college system
2institution, or a regionally accredited 4-year nonprofit college or university having
3its regional headquarters and principal place of business in this state.
SB409-SSA1,10,54 b. A school approved under s. 38.50, if the delivery of education occurs in this
5state.
SB409-SSA1,10,86 (b) Filing claims. Subject to the limitations provided in this subsection, a
7claimant may claim as a credit against the tax imposed under s. 71.02 an amount
8equal to the following:
SB409-SSA1,10,129 1. Twenty-five percent of the tuition that the claimant paid or incurred for an
10individual to participate in an education program of a qualified postsecondary
11institution, if the individual was enrolled in a course of instruction and eligible for
12a grant from the Federal Pell Grant Program.
SB409-SSA1,10,1813 2. Thirty percent of the tuition that the claimant paid or incurred for an
14individual to participate in an education program of a qualified postsecondary
15institution, if the individual was enrolled in a course of instruction that relates to a
16projected worker shortage in this state, as determined by the local workforce
17development boards established under 29 USC 2832, and if the individual was
18eligible for a grant from the Federal Pell Grant Program.
SB409-SSA1,10,2119 (c) Limitations. 1. No credit may be allowed under par. (b) unless the claimant
20certifies to the department of revenue that the claimant will not be reimbursed for
21any amount of tuition for which the claimant claims a credit under par. (b).
SB409-SSA1,10,2422 2. A claimant may not claim the credit under par. (b) for any tuition amounts
23that the individual described under par. (b) excluded under s. 71.05 (6) (b) 28. or
24under section 127 of the Internal Revenue Code.
SB409-SSA1,11,3
13. A claimant may not claim the credit under par. (b) for any tuition amounts
2that the claimant paid or incurred for a family member of the claimant or for a family
3member of a managing employee unless all of the following apply:
SB409-SSA1,11,74 a. The family member was employed an average of at least 20 hours per week
5as an employee of the claimant, or the claimant's business, during the one-year
6period prior to commencing participation in the education program in connection
7with which the claimant claims a credit under par. (b).
SB409-SSA1,11,98 b. The family member is enrolled in a course of instruction that is substantially
9related to the claimant's business.
SB409-SSA1,11,1110 3m. A claimant may not claim the credit under par. (b) for any tuition amounts
11that the claimant paid or incurred for an individual who is not a resident of this state.
SB409-SSA1,11,1512 4. The claimant shall claim the credit for the taxable year in which the
13individual graduates from a course of instruction in an amount equal to the total
14amount the claimant paid or incurred under par. (b) for all taxable years in which
15the claimant paid or incurred such amounts related to that individual.
SB409-SSA1,11,2316 5. Partnerships, limited liability companies, and tax-option corporations may
17not claim the credit under this subsection, but the eligibility for, and the amount of,
18the credit are based on their payment of tuition under par. (b). A partnership, limited
19liability company, or tax-option corporation shall compute the amount of credit that
20each of its partners, members, or shareholders may claim and shall provide that
21information to each of them. Partners, members of limited liability companies, and
22shareholders of tax-option corporations may claim the credit in proportion to their
23ownership interest.
SB409-SSA1,11,2524 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
25s. 71.28 (4), applies to the credit under this subsection.
SB409-SSA1, s. 26
1Section 26. 71.10 (4) (cd) of the statutes is created to read:
SB409-SSA1,12,22 71.10 (4) (cd) Postsecondary education credit under s. 71.07 (5r).
SB409-SSA1, s. 27 3Section 27. 71.21 (4) of the statutes, as affected by 2009 Wisconsin Act 28, is
4amended to read:
SB409-SSA1,12,85 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
6(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s), (3t), (3w),
7(5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), and (8r) and passed through to partners shall
8be added to the partnership's income.
SB409-SSA1, s. 28 9Section 28. 71.26 (2) (a) 4. of the statutes, as affected by 2009 Wisconsin Act
1028
, is amended to read:
SB409-SSA1,12,1611 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
12(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3t),
13(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), and (8r) and not passed through by a
14partnership, limited liability company, or tax-option corporation that has added that
15amount to the partnership's, limited liability company's, or tax-option corporation's
16income under s. 71.21 (4) or 71.34 (1k) (g).
SB409-SSA1, s. 29 17Section 29. 71.28 (5r) of the statutes is created to read:
SB409-SSA1,12,1918 71.28 (5r) Postsecondary education credit. (a) Definitions. In this
19subsection:
SB409-SSA1,12,2020 1. "Claimant" means a corporation that files a claim under this subsection.
SB409-SSA1,12,2121 2. "Course of instruction" has the meaning given in s. 38.50 (1) (c).
SB409-SSA1,12,2222 3. "Family member" has the meaning given in s. 157.061 (7).
SB409-SSA1,12,2523 4. "Managing employee" means an individual who wholly or partially exercises
24operational or managerial control over, or who directly or indirectly conducts, the
25operation of the claimant's business.
SB409-SSA1,13,2
15. "Paid or incurred" includes any amount paid by the claimant to reimburse
2an individual for the tuition that the individual paid or incurred.
SB409-SSA1,13,33 6. "Qualified postsecondary institution" means all of the following:
SB409-SSA1,13,64 a. A University of Wisconsin System institution, a technical college system
5institution, or a regionally accredited 4-year nonprofit college or university having
6its regional headquarters and principal place of business in this state.
SB409-SSA1,13,87 b. A school approved under s. 38.50, if the delivery of education occurs in this
8state.
SB409-SSA1,13,119 (b) Filing claims. Subject to the limitations provided in this subsection, a
10claimant may claim as a credit against the tax imposed under s. 71.23 an amount
11equal to the following:
SB409-SSA1,13,1512 1. Twenty-five percent of the tuition that the claimant paid or incurred for an
13individual to participate in an education program of a qualified postsecondary
14institution, if the individual was enrolled in a course of instruction and eligible for
15a grant from the Federal Pell Grant Program.
SB409-SSA1,13,2116 2. Thirty percent of the tuition that the claimant paid or incurred for an
17individual to participate in an education program of a qualified postsecondary
18institution, if the individual was enrolled in a course of instruction that relates to a
19projected worker shortage in this state, as determined by the local workforce
20development boards established under 29 USC 2832, and if the individual was
21eligible for a grant from the Federal Pell Grant Program.
SB409-SSA1,13,2422 (c) Limitations. 1. No credit may be allowed under par. (b) unless the claimant
23certifies to the department of revenue that the claimant will not be reimbursed for
24any amount of tuition for which the claimant claims a credit under par. (b).
SB409-SSA1,14,3
12. A claimant may not claim the credit under par. (b) for any tuition amounts
2that the individual described under par. (b) excluded under section 127 of the
3Internal Revenue Code.
SB409-SSA1,14,64 3. A claimant may not claim the credit under par. (b) for any tuition amounts
5that the claimant paid or incurred for a family member of a managing employee
6unless all of the following apply:
SB409-SSA1,14,107 a. The family member was employed an average of at least 20 hours per week
8as an employee of the claimant, or the claimant's business, during the one-year
9period prior to commencing participation in the education program in connection
10with which the claimant claims a credit under par. (b).
SB409-SSA1,14,1211 b. The family member is enrolled in a course of instruction that is substantially
12related to the claimant's business.
SB409-SSA1,14,1413 3m. A claimant may not claim the credit under par. (b) for any tuition amounts
14that the claimant paid or incurred for an individual who is not a resident of this state.
SB409-SSA1,14,1815 4. The claimant shall claim the credit for the taxable year in which the
16individual graduates from a course of instruction in an amount equal to the total
17amount the claimant paid or incurred under par. (b) for all taxable years in which
18the claimant paid or incurred such amounts related to that individual.
SB409-SSA1,15,219 5. Partnerships, limited liability companies, and tax-option corporations may
20not claim the credit under this subsection, but the eligibility for, and the amount of,
21the credit are based on their payment of tuition under par. (b). A partnership, limited
22liability company, or tax-option corporation shall compute the amount of credit that
23each of its partners, members, or shareholders may claim and shall provide that
24information to each of them. Partners, members of limited liability companies, and

1shareholders of tax-option corporations may claim the credit in proportion to their
2ownership interest.
SB409-SSA1,15,43 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
4sub. (4), applies to the credit under this subsection.
SB409-SSA1, s. 30 5Section 30. 71.30 (3) (cd) of the statutes is created to read:
SB409-SSA1,15,66 71.30 (3) (cd) Postsecondary education credit under s. 71.28 (5r).
SB409-SSA1, s. 31 7Section 31. 71.34 (1k) (g) of the statutes, as affected by 2009 Wisconsin Act 28,
8is amended to read:
SB409-SSA1,15,129 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
10corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
11(3), (3g), (3h), (3n), (3p), (3q), (3r), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r),
12and (8r) and passed through to shareholders.
SB409-SSA1, s. 32 13Section 32. 71.45 (2) (a) 10. of the statutes, as affected by 2009 Wisconsin Act
1428
, is amended to read:
SB409-SSA1,15,2115 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
16computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3w), (5e), (5f),
17(5g), (5h), (5i), (5j), (5k), (5r), and (8r) and not passed through by a partnership,
18limited liability company, or tax-option corporation that has added that amount to
19the partnership's, limited liability company's, or tax-option corporation's income
20under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47
21(1), (3), (3t), (4), (4m), and (5).
SB409-SSA1, s. 33 22Section 33. 71.47 (5r) of the statutes is created to read:
SB409-SSA1,15,2423 71.47 (5r) Postsecondary education credit. (a) Definitions. In this
24subsection:
SB409-SSA1,15,2525 1. "Claimant" means a corporation that files a claim under this subsection.
SB409-SSA1,15,26
12. "Course of instruction" has the meaning given in s. 38.50 (1) (c).
SB409-SSA1,16,22 3. "Family member" has the meaning given in s. 157.061 (7).
SB409-SSA1,16,53 4. "Managing employee" means an individual who wholly or partially exercises
4operational or managerial control over, or who directly or indirectly conducts, the
5operation of the claimant's business.
SB409-SSA1,16,76 5. "Paid or incurred" includes any amount paid by the claimant to reimburse
7an individual for the tuition that the individual paid or incurred.
SB409-SSA1,16,88 6. "Qualified postsecondary institution" means all of the following:
SB409-SSA1,16,119 a. A University of Wisconsin System institution, a technical college system
10institution, or a regionally accredited 4-year nonprofit college or university having
11its regional headquarters and principal place of business in this state.
SB409-SSA1,16,1312 b. A school approved under s. 38.50, if the delivery of education occurs in this
13state.
SB409-SSA1,16,1614 (b) Filing claims. Subject to the limitations provided in this subsection, a
15claimant may claim as a credit against the tax imposed under s. 71.43 an amount
16equal to the following:
SB409-SSA1,16,2017 1. Twenty-five percent of the tuition that the claimant paid or incurred for an
18individual to participate in an education program of a qualified postsecondary
19institution, if the individual was enrolled in a course of instruction and eligible for
20a grant from the Federal Pell Grant Program.
SB409-SSA1,17,221 2. Thirty percent of the tuition that the claimant paid or incurred for an
22individual to participate in an education program of a qualified postsecondary
23institution, if the individual was enrolled in a course of instruction that relates to a
24projected worker shortage in this state, as determined by the local workforce

1development boards established under 29 USC 2832, and if the individual was
2eligible for a grant from the Federal Pell Grant Program.
SB409-SSA1,17,53 (c) Limitations. 1. No credit maybe allowed under par. (b) unless the claimant
4certifies to the department of revenue that the claimant will not be reimbursed for
5any amount of tuition for which the claimant claims a credit under par. (b).
SB409-SSA1,17,86 2. A claimant may not claim the credit under par. (b) for any tuition amounts
7that the individual described under par. (b) excluded under section 127 of the
8Internal Revenue Code.
SB409-SSA1,17,119 3. A claimant may not claim the credit under par. (b) for any tuition amounts
10that the claimant paid or incurred for a family member of a managing employee
11unless all of the following apply:
SB409-SSA1,17,1512 a. The family member was employed an average of at least 20 hours per week
13as an employee of the claimant, or the claimant's business, during the one-year
14period prior to commencing participation in the education program in connection
15with which the claimant claims a credit under par. (b).
SB409-SSA1,17,1716 b. The family member is enrolled in a course of instruction that is substantially
17related to the claimant's business.
SB409-SSA1,17,1918 3m. A claimant may not claim the credit under par. (b) for any tuition amounts
19that the claimant paid or incurred for an individual who is not a resident of this state.
SB409-SSA1,17,2320 4. The claimant shall claim the credit for the taxable year in which the
21individual graduates from a course of instruction in an amount equal to the total
22amount the claimant paid or incurred under par. (b) for all taxable years in which
23the claimant paid or incurred such amounts related to that individual.
SB409-SSA1,18,624 5. Partnerships, limited liability companies, and tax-option corporations may
25not claim the credit under this subsection, but the eligibility for, and the amount of,

1the credit are based on their payment of tuition under par. (b). A partnership, limited
2liability company, or tax-option corporation shall compute the amount of credit that
3each of its partners, members, or shareholders may claim and shall provide that
4information to each of them. Partners, members of limited liability companies, and
5shareholders of tax-option corporations may claim the credit in proportion to their
6ownership interest.
SB409-SSA1,18,87 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
8s. 71.28 (4), applies to the credit under this subsection.
SB409-SSA1, s. 34 9Section 34. 71.49 (1) (cd) of the statutes is created to read:
SB409-SSA1,18,1010 71.49 (1) (cd) Postsecondary education credit under s. 71.47 (5r).
SB409-SSA1, s. 35 11Section 35. 77.92 (4) of the statutes, as affected by 2009 Wisconsin Act 28, is
12amended to read:
SB409-SSA1,19,313 77.92 (4) "Net business income," with respect to a partnership, means taxable
14income as calculated under section 703 of the Internal Revenue Code; plus the items
15of income and gain under section 702 of the Internal Revenue Code, including taxable
16state and municipal bond interest and excluding nontaxable interest income or
17dividend income from federal government obligations; minus the items of loss and
18deduction under section 702 of the Internal Revenue Code, except items that are not
19deductible under s. 71.21; plus guaranteed payments to partners under section 707
20(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
21(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s),
22(3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), and (8r); and plus or minus, as
23appropriate, transitional adjustments, depreciation differences, and basis
24differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain,
25loss, and deductions from farming. "Net business income," with respect to a natural

1person, estate, or trust, means profit from a trade or business for federal income tax
2purposes and includes net income derived as an employee as defined in section 3121
3(d) (3) of the Internal Revenue Code.
SB409-SSA1, s. 36 4Section 36. 560.203 of the statutes is created to read:
SB409-SSA1,19,15 5560.203 Targeted microloans. The department shall create a pilot program
6for making microloans from the appropriation under s. 20.143 (1) (c) at nominal
7interest rates for the creation of new businesses. The department shall designate 2
8areas of the state, one urban and one rural, that are affected by high unemployment.
9Only residents of the areas designated by the department are eligible for loans under
10this section, and the amount of a loan under this section may not exceed $25,000.
11The department shall, through a competitive process, select a Wisconsin nonprofit
12finance corporation to administer the pilot program. The department shall partner
13with federal, state, regional, and local economic development entities to provide
14business training for applicants and borrowers under this section. The department
15may not make a loan under this section after July 31, 2013.
SB409-SSA1, s. 37 16Section 37. 560.205 (3) (d) of the statutes, as affected by 2009 Wisconsin Act
172
, is renumbered 560.205 (3) (d) (intro.) and amended to read:
SB409-SSA1,20,2018 560.205 (3) (d) Rules. (intro.) The department of commerce, in consultation
19with the department of revenue, shall promulgate rules to administer this section.
20The rules shall further define "bona fide angel investment" for purposes of s. 71.07
21(5d) (a) 1. The rules shall limit the aggregate amount of tax credits under s. 71.07
22(5d) that may be claimed for investments in businesses certified under sub. (1) at
23$3,000,000 per calendar year for calendar years beginning after December 31, 2004,
24and before January 1, 2008, $5,500,000 per calendar year for calendar years
25beginning after December 31, 2007, and before January 1, 2011 2010, $6,500,000 for

1calendar year 2010
, and $18,000,000 $20,000,000 per calendar year for calendar
2years beginning after December 31, 2010, plus, for taxable years beginning after
3December 31, 2010, an additional $250,000 for tax credits that may be claimed for
4investments in nanotechnology businesses certified under sub. (1). The rules shall
5also limit the aggregate amount of the tax credits under ss. 71.07 (5b), 71.28 (5b),
671.47 (5b), and 76.638 that may be claimed for investments paid to fund managers
7certified under sub. (2) at $3,500,000 per calendar year for calendar years beginning
8after December 31, 2004, and before January 1, 2008, $6,000,000 per calendar year
9for calendar years beginning after December 31, 2007, and before January 1, 2011
102010, $8,000,000 for calendar year 2010, and $18,500,000 $20,500,000 per calendar
11year for calendar years beginning after December 31, 2010, plus, for taxable years
12beginning after December 31, 2010, an additional $250,000 for tax credits that may
13be claimed for investments in nanotechnology businesses certified under sub. (1).
14The rules shall also provide that, for calendar years beginning after December 31,
152007, no person may receive a credit under ss. 71.07 (5b) and (5d), 71.28 (5b), 71.47
16(5b), or 76.638 unless the person's investment is kept in a certified business, or with
17a certified fund manager, for no less than 3 years. The rules shall permit the
18department to reallocate credits under this section that are unused in any calendar
19year to a person eligible for tax benefits, as defined under s. 560.2055 (1) (d) or
20560.799 (1) (c), if all of the following apply:
SB409-SSA1, s. 38 21Section 38. 560.205 (3) (d) 1. of the statutes is created to read:
SB409-SSA1,20,2322 560.205 (3) (d) 1. The department notifies the joint committee on finance in
23writing of its proposed reallocation.
SB409-SSA1, s. 39 24Section 39. 560.205 (3) (d) 2. of the statutes is created to read:
SB409-SSA1,20,2525 560.205 (3) (d) 2. One of the following is true:
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