Amendment ASA1-AB107

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2011 - 2012 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO 2011 ASSEMBLY BILL 107

September 22, 2011 - Offered by Representative Petryk.

AB107-ASA1,1,4 An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a) 4., 71.34 (1k) (g), 71.45 (2) (a) 10. and 77.92 (4); and to create 71.07 (5p), 71.10 (4) (ct), 71.28 (5p), 71.30 (3) (dt), 71.47 (5p), 71.49 (1) (dt) and 238.18 of the statutes; relating to: a small business expansion income and franchise tax credit.

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

AB107-ASA1, s. 1 Section 1. 71.05 (6) (a) 15. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB107-ASA1,1,12 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k), (5n), (5p), (5r), (5rm), 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).

AB107-ASA1, s. 2 Section 2. 71.07 (5p) of the statutes is created to read:

AB107-ASA1,2,3 71.07 (5p) Small business expansion credit. (a) Definitions. In this subsection:

AB107-ASA1,2,5 1. "Claimant" means a person who files a claim under this subsection and is certified under s. 238.18 (2).

AB107-ASA1,2,6 2. "Full-time job" has the meaning given in s. 238.18 (1) (a).

AB107-ASA1,2,7 3. "Small business" has the meaning given in s. 238.18 (1) (b).

AB107-ASA1,2,14 (b) Filing claims. Subject to the limitations provided in this subsection and s. 238.18, for taxable years beginning after December 31, 2011, a claimant may claim as a credit against the taxes imposed under s. 71.02, up to the amount of the taxes, an amount equal to the actual cost of improvements to real property and acquisitions of personal property reported to the department under s. 238.18 (3) (a), if such real and personal property is subject to taxation under ch. 70, made by the claimant's small business in the taxable year, multiplied by one of the following:

AB107-ASA1,2,16 1. If the small business employs one more employee in a full-time job in the taxable year than it did in the previous taxable year, 0.002.

AB107-ASA1,2,18 2. If the small business employs 2 more employees in full-time jobs in the taxable year than it did in the previous taxable year, 0.004.

AB107-ASA1,2,20 3. If the small business employs 3 more employees in full-time jobs in the taxable year than it did in the previous taxable year, 0.006.

AB107-ASA1,2,22 4. If the small business employs 4 more employees in full-time jobs in the taxable year than it did in the previous taxable year, 0.008.

AB107-ASA1,2,24 5. If the small business employs at least 5 more employees in full-time jobs in the taxable year than it did in the previous taxable year, 0.01.

AB107-ASA1,3,10 (c) Limitations. 1. A claimant may only claim a credit under this subsection for 2 consecutive taxable years. The amount that the claimant may claim as a credit under this subsection for the 2nd taxable year is equal to the amount that the claimant claimed as a credit under this subsection for the first taxable year, except that, if the claimant employs more or fewer employees in full-time jobs in the 2nd taxable year than in the first taxable year, the amount that the claimant may claim as a credit under this subsection for the 2nd taxable year is based on the number of employees that it employs in full-time jobs in the 2nd taxable year that is in excess of the number of employees that it employed in full-time jobs in the taxable year previous to the first taxable year.

AB107-ASA1,3,18 2. 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.

AB107-ASA1,3,20 (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.

AB107-ASA1, s. 3 Section 3. 71.10 (4) (ct) of the statutes is created to read:

AB107-ASA1,3,22 71.10 (4) (ct) Small business expansion credit under s. 71.07 (5p).

AB107-ASA1, s. 4 Section 4. 71.21 (4) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB107-ASA1,4,4 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), (3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5p), (5r), (5rm), and (8r) and passed through to partners shall be added to the partnership's income.

AB107-ASA1, s. 5 Section 5. 71.26 (2) (a) 4. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB107-ASA1,4,13 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), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5p), (5r), (5rm), (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).

AB107-ASA1, s. 6 Section 6. 71.28 (5p) of the statutes is created to read:

AB107-ASA1,4,16 71.28 (5p) Small business expansion credit. (a) Definitions. In this subsection:

AB107-ASA1,4,18 1. "Claimant" means a person who files a claim under this subsection and is certified under s. 238.18 (2).

AB107-ASA1,4,19 2. "Full-time job" has the meaning given in s. 238.18 (1) (a).

AB107-ASA1,4,20 3. "Small business" has the meaning given in s. 238.18 (1) (b).

AB107-ASA1,5,2 (b) Filing claims. Subject to the limitations provided in this subsection and s. 238.18, for taxable years beginning after December 31, 2011, a claimant may claim as a credit against the taxes imposed under s. 71.23, up to the amount of the taxes, an amount equal to the actual cost of improvements to real property and acquisitions of personal property reported to the department under s. 238.18 (3) (a), if such real and personal property is subject to taxation under ch. 70, made by the claimant's small business in the taxable year, multiplied by one of the following:

AB107-ASA1,5,4 1. If the small business employs one more employee in a full-time job in the taxable year than it did in the previous taxable year, 0.002.

AB107-ASA1,5,6 2. If the small business employs 2 more employees in full-time jobs in the taxable year than it did in the previous taxable year, 0.004.

AB107-ASA1,5,8 3. If the small business employs 3 more employees in full-time jobs in the taxable year than it did in the previous taxable year, 0.006.

AB107-ASA1,5,10 4. If the small business employs 4 more employees in full-time jobs in the taxable year than it did in the previous taxable year, 0.008.

AB107-ASA1,5,12 5. If the small business employs at least 5 more employees in full-time jobs in the taxable year than it did in the previous taxable year, 0.01.

AB107-ASA1,5,22 (c) Limitations. 1. A claimant may only claim a credit under this subsection for 2 consecutive taxable years. The amount that the claimant may claim as a credit under this subsection for the 2nd taxable year is equal to the amount that the claimant claimed as a credit under this subsection for the first taxable year, except that, if the claimant employs more or fewer employees in full-time jobs in the 2nd taxable year than in the first taxable year, the amount that the claimant may claim as a credit under this subsection for the 2nd taxable year is based on the number of employees that it employs in full-time jobs in the 2nd taxable year that is in excess of the number of employees that it employed in full-time jobs in the taxable year previous to the first taxable year.

AB107-ASA1,6,5 2. 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.

AB107-ASA1,6,7 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB107-ASA1, s. 7 Section 7. 71.30 (3) (dt) of the statutes is created to read:

AB107-ASA1,6,9 71.30 (3) (dt) Small business expansion credit under s. 71.28 (5p).

AB107-ASA1, s. 8 Section 8. 71.34 (1k) (g) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB107-ASA1,6,15 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), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5p), (5r), (5rm), and (8r) and passed through to shareholders.

AB107-ASA1, s. 9 Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB107-ASA1,6,24 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), (3rm), (3rn), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5p), (5r), (5rm), (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).

AB107-ASA1, s. 10 Section 10. 71.47 (5p) of the statutes is created to read:

AB107-ASA1,7,2 71.47 (5p) Small business expansion credit. (a) Definitions. In this subsection: