SB199: Bill Text

SB199,25,9 1. "Claimant" means an individual who is eligible for, and claims, the federal credit.

SB199,25,12 2. "Federal credit" means the federal tax credit, for expenses for household and dependent care services necessary for gainful employment, under section 21 of the Internal Revenue Code.

SB199,25,16 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, an amount equal to 50% of the amount of the credit claimed by the claimant under the federal credit in the year to which the claim relates.

SB199,25,18 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

SB199,26,5 2. For a claimant who is a nonresident or part-year resident of this state, multiply the credit for which the claimant is eligible under par. (b) by a fraction the numerator of which is the individual's wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual's total wages, salary, tips, unearned income and net earnings from a trade or business. In this subdivision, for married persons filing separately "wages, salary, tips, unearned income and net earnings from a trade or business" means the separate wages, salary, tips, unearned income and net earnings from a trade or business of each spouse, and for married persons filing jointly "wages, salary, tips, unearned income and net earnings from a trade or business" means the total wages, salary, tips, unearned income and net earnings from a trade or business of both spouses.

SB199,26,7 (d) Administration. Section 71.07 (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

SB199, s. 45 Section 45. 71.07 (7g) of the statutes is created to read:

SB199,26,9 71.07 (7g) Child care credit. (a) In this subsection:

SB199,26,21 1. "Qualified child care expenditures" means any amount that is not used in calculating the credits under subs. (2dd) and (5d) and that is paid to acquire, construct or rehabilitate property that is to be used as part of a qualified child care facility of the claimant, if the property may be depreciated or amortized under this subchapter and if the property is not part of the principal residence of the claimant or any employe of the claimant; any amount paid for the operating costs of a qualified child care facility of the claimant, including costs related to training employes, to scholarship programs and to providing increased compensation to employes who have higher levels of child care training; any amount paid under a contract with a child care facility to provide child care services to employes of the claimant; and any amount paid under a contract to provide child care resource and referral services to employes of the claimant.

SB199,27,4 2. "Qualified child care facility" means a facility that is used primarily to provide child care assistance, unless the facility is the operator's principal residence; that is licensed under s. 48.65 or 48.69; that is open to enrollment to the children of the employes of the claimant; that is not the claimant's principal trade or business, unless at least 30% of the enrollees of the facility are the children of the claimant's employes; and that does not discriminate in enrollment in favor of the children of the claimant's highly compensated employes, as defined in section 414 (q) of the Internal Revenue Code.

SB199,27,7 (b) A person may claim as a credit against taxes imposed under s. 71.02, up to the amount of those taxes, an amount equal to 5% of that person's qualified child care expenditures, except that the credit may not exceed $15,000 a year.

SB199,27,9 (c) Section 71.28 (4) (e) to (h), as it relates to the credit under s. 71.28 (4), relates to the credit under this subsection.

SB199, s. 46 Section 46. 71.08 (1) (intro.) of the statutes is amended to read:

SB199,27,19 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married couple filing jointly, trust or estate under s. 71.02, not considering the credits under ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3m), (3s), (5d), (6), (6m), (7g) and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m) and, (3), (5d) and (7) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m) and, (3), (5d) and (7) and subchs. VIII and IX and payments to other states under s. 71.07 (7), is less than the tax under this section, there is imposed on that natural person, married couple filing jointly, trust or estate, instead of the tax under s. 71.02, an alternative minimum tax computed as follows:

SB199, s. 47 Section 47. 71.10 (4) (cm) of the statutes is created to read:

SB199,27,22 71.10 (4) (cm) The child and dependent expenses care credit under s. 71.07 (6m).

SB199, s. 48 Section 48. 71.10 (4) (gc) of the statutes is created to read:

SB199,27,24 71.10 (4) (gc) Child care credit under s. 71.07 (7g).

SB199, s. 49 Section 49. 71.10 (4) (i) of the statutes is amended to read:

SB199,28,6 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under subch. IX, homestead credit under subch. VIII, farmland tax relief credit under s. 71.07 (3m), farmers' drought property tax credit under s. 71.07 (2fd), day care center credit under s. 71.07 (5d), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

SB199, s. 50 Section 50. 71.21 (4) of the statutes is amended to read:

SB199,28,10 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2ds), (2dx) and, (3s) , (5d) and (7g) and passed through to partners or members shall be added to the partnership's or limited liability company's income.

SB199, s. 51 Section 51. 71.26 (2) (a) of the statutes is amended to read:

SB199,29,2 71.26 (2) (a) Corporations in general. The "net income" of a corporation means the gross income as computed under the internal revenue code 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) and (3) to (5) plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds) and, (1dx), (5d) and (7) 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 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).

SB199, s. 52 Section 52. 71.28 (5d) of the statutes is created to read:

SB199,29,5 71.28 (5d) Day care center credit. (a) In this subsection, "claimant" means a person who files a claim under this subsection.

SB199,29,7 (b) A claimant may claim as a credit against the tax imposed under s. 71.23 any of the following:

SB199,29,11 1. An amount equal to 50% of the amount paid or incurred by the claimant during the taxable year to construct and equip a licensed day care center under s. 48.65, that is owned and operated by the claimant, to care for the children of the claimant's employes during the employes' working hours.

SB199,29,13 2. An amount equal to $50 a month for each child of a claimant's employe enrolled in the claimant's day care center under subd. 1. for the taxable year.

SB199,29,17 3. An amount equal to 50% of the amount paid by the claimant during the taxable year to a licensed day care center under s. 48.65, other than a day care center under subd. 1., to provide care for the children of the claimant's employes during the employes' working hours.

SB199,29,20 (c) The amount of the credit under this subsection shall not exceed $50,000 in a taxable year for each claimant, and the total amount of the credit under this subsection for all claimants shall not exceed $1,500,000 in a fiscal year.

SB199,30,2 (d) No credit may be allowed under this subsection unless the claimant files an application with the department of revenue before the end of the taxable year in which amounts are paid or expenses are incurred under par. (b) and includes with that application a statement from the department of health and family services that verifies that the day care center under par. (b) is licensed under s. 48.65. No credit may be allowed under this subsection after the department of revenue has awarded the total amount of the credit for all claimants under par. (c).

SB199,30,4 (e) Subsection (4) (e), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB199,30,10 (f) If a credit computed under this subsection is not entirely offset against income or franchise taxes otherwise due, the unused balance may be carried forward and credited against income or franchise taxes otherwise due for the following 5 taxable years to the extent not offset by those taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.

SB199,30,18 (g) 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 the amount paid or incurred 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.

SB199,30,20 (h) Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB199,31,2 (i) If the operation of a day care center under par. (b) 1. ceases within 5 years after the date on which the construction of the day care center is completed, a claimant who receives credits under par. (b) 1. and 2. for the construction and operation of such a day care center shall add to the claimant's liability for taxes imposed under s. 71.23 an amount equal to the total amount of the credits received under par. (b) 1. and 2. multiplied by the following percentage:

SB199,31,4 1. If the operation of the day care center ceases during the first year after the date on which the construction of the day care center is completed, 100%.

SB199,31,6 2. If the operation of the day care center ceases during the 2nd year after the date on which the construction of the day care center is completed, 80%.

SB199,31,8 3. If the operation of the day care center ceases during the 3rd year after the date on which the construction of the day care center is completed, 60%.

SB199,31,10 4. If the operation of the day care center ceases during the 4th year after the date on which the construction of the day care center is completed, 40%.

SB199,31,12 5. If the operation of the day care center ceases during the 5th year after the date on which the construction of the day care center is completed, 20%.

SB199, s. 53 Section 53. 71.28 (7) of the statutes is created to read:

SB199,31,14 71.28 (7) Child care credit. (a) In this subsection:

SB199,32,2 1. "Qualified child care expenditures" means any amount that is not used in calculating the credits under subs. (1dd) and (5d) and that is paid to acquire, construct or rehabilitate property that is to be used as part of a qualified child care facility of the claimant, if the property may be depreciated or amortized under this subchapter and if the property is not part of the principal residence of the claimant or any employe of the claimant; any amount paid for the operating costs of a qualified child care facility of the claimant, including costs related to training employes, to scholarship programs and to providing increased compensation to employes who have higher levels of child care training; any amount paid under a contract with a child care facility to provide dependent care services to employes of the claimant; and any amount paid under a contract to provide child care resource and referral services to employes of the claimant.

SB199,32,10 2. "Qualified child care facility" means a facility that is used primarily to provide child care assistance, unless the facility is the operator's principal residence; that is licensed under s. 48.65 or 48.69; that is open to enrollment to the children of the employes of the claimant; that is not the claimant's principal trade or business, unless at least 30% of the enrollees of the facility are the children of the claimant's employes; and that does not discriminate in enrollment in favor of the children of the claimant's highly compensated employes, as defined in section 414 (q) of the Internal Revenue Code.

SB199,32,13 (b) A person may claim as a credit against taxes imposed under s. 71.23, up to the amount of those taxes, an amount equal to 5% of that person's qualified child care expenditures, except that the credit may not exceed $15,000 a year.

SB199,32,15 (c) Subsection (4) (e) to (h), as it relates to the credit under sub. (4), relates to the credit under this subsection.

SB199, s. 54 Section 54. 71.30 (3) (ea) of the statutes is created to read:

SB199,32,17 71.30 (3) (ea) Child care credit under s. 71.28 (7).

SB199, s. 55 Section 55. 71.30 (3) (f) of the statutes is amended to read:

SB199,32,22 71.30 (3) (f) The total of farmers' drought property tax credit under s. 71.28 (1fd), farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.28 (2m), day care center credit under s. 71.28 (5d) and estimated tax payments under s. 71.29.

SB199, s. 56 Section 56. 71.34 (1) (g) of the statutes is amended to read:

SB199,33,3 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), (1ds), (1dx) and, (3), (5d) and (7) and passed through to shareholders.

SB199, s. 57 Section 57. 71.45 (2) (a) 10. of the statutes is amended to read:

SB199,33,10 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dx), (5d) and (7) 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), (4) and (5).

SB199, s. 58 Section 58. 71.47 (5d) of the statutes is created to read:

SB199,33,13 71.47 (5d) Day care center credit. (a) In this subsection, "claimant" means a person who files a claim under this subsection.

SB199,33,15 (b) A claimant may claim as a credit against the tax imposed under s. 71.43 any of the following:

SB199,33,19 1. An amount equal to 50% of the amount paid or incurred by the claimant during the taxable year to construct and equip a licensed day care center under s. 48.65, that is owned and operated by the claimant, to care for the children of the claimant's employes during the employes' working hours.

SB199,33,21 2. An amount equal to $50 a month for each child of a claimant's employe enrolled in the claimant's day care center under subd. 1. for the taxable year.

SB199,33,25 3. An amount equal to 50% of the amount paid by the claimant during the taxable year to a licensed day care center under s. 48.65, other than a day care center under subd. 1., to provide care for the children of the claimant's employes during the employes' working hours.

SB199,34,3 (c) The amount of the credit under this subsection shall not exceed $50,000 in a taxable year for each claimant, and the total amount of the credit under this subsection for all claimants shall not exceed $1,500,000 in a fiscal year.

SB199,34,10 (d) No credit may be allowed under this subsection unless the claimant files an application with the department of revenue before the end of the taxable year in which amounts are paid or expenses are incurred under par. (b) and includes with that application a statement from the department of health and family services that verifies that the day care center under par. (b) is licensed under s. 48.65. No credit may be allowed under this subsection after the department of revenue has awarded the total amount of the credit for all claimants under par. (c).

SB199,34,12 (e) Section 71.28 (4) (e), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB199,34,18 (f) If a credit computed under this subsection is not entirely offset against income or franchise taxes otherwise due, the unused balance may be carried forward and credited against income or franchise taxes otherwise due for the following 5 taxable years to the extent not offset by those taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.

SB199,35,2 (g) 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 the amount paid or incurred 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.

SB199,35,4 (h) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB199,35,10 (i) If the operation of a day care center under par. (b) 1. ceases within 5 years after the date on which the construction of the day care center is completed, a claimant who receives credits under par. (b) 1. and 2. for the construction and operation of such a day care center shall add to the claimant's liability for taxes imposed under s. 71.43 an amount equal to the total amount of the credits received under par. (b) 1. and 2. multiplied by the following percentage:

SB199,35,12 1. If the operation of the day care center ceases during the first year after the date on which the construction of the day care center is completed, 100%.

SB199,35,14 2. If the operation of the day care center ceases during the 2nd year after the date on which the construction of the day care center is completed, 80%.

SB199,35,16 3. If the operation of the day care center ceases during the 3rd year after the date on which the construction of the day care center is completed, 60%.

SB199,35,18 4. If the operation of the day care center ceases during the 4th year after the date on which the construction of the day care center is completed, 40%.

SB199,35,20 5. If the operation of the day care center ceases during the 5th year after the date on which the construction of the day care center is completed, 20%.

SB199, s. 59 Section 59. 71.47 (7) of the statutes is created to read:

SB199,35,22 71.47 (7) Child care credit. (a) In this subsection:

SB199,36,9 1. "Qualified child care expenditures" means any amount that is not used in calculating the credits under subs. (1dd) and (5d) and that is paid to acquire, construct or rehabilitate property that is to be used as part of a qualified child care facility of the claimant, if the property may be depreciated or amortized under this subchapter and if the property is not part of the principal residence of the claimant or any employe of the claimant; any amount paid for the operating costs of a qualified child care facility of the claimant, including costs related to training employes, to scholarship programs and to providing increased compensation to employes who have higher levels of child care training; any amount paid under a contract with a child care facility to provide child care services to employes of the claimant; and any amount paid under a contract to provide child care resource and referral services to employes of the claimant.

SB199,36,17 2. "Qualified child care facility" means a facility that is used primarily to provide child care assistance, unless the facility is the operator's principal residence; that is licensed under s. 48.65 or 48.69; that is open to enrollment to the children of the employes of the claimant; that is not the claimant's principal trade or business, unless at least 30% of the enrollees of the facility are the children of the claimant's employes; and that does not discriminate in enrollment in favor of the children of the claimant's highly compensated employes, as defined in section 414 (q) of the Internal Revenue Code.

SB199,36,20 (b) A person may claim as a credit against taxes imposed under s. 71.43, up to the amount of those taxes, an amount equal to 5% of that person's qualified child care expenditures, except that the credit may not exceed $15,000 a year.

SB199,36,22 (c) Section 71.28 (4) (e) to (h), as it relates to the credit under s. 71.28 (4), relates to the credit under this subsection.

SB199, s. 60 Section 60. 71.49 (1) (ea) of the statutes is created to read:

SB199,36,24 71.49 (1) (ea) Child care credit under s. 71.47 (7).

SB199, s. 61 Section 61. 71.49 (1) (f) of the statutes is amended to read:

SB199,37,4 71.49 (1) (f) The total of farmers' drought property tax credit under s. 71.47 (1fd), farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.47 (2m), day care center credit under s. 71.28 (5d) and estimated tax payments under s. 71.48.

SB199, s. 62 Section 62. 77.92 (4) of the statutes is amended to read:

SB199,37,17 77.92 (4) "Net business income", with respect to a partnership, means taxable income as calculated under section 703 of the internal revenue code Internal Revenue Code; plus the items of income and gain under section 702 of the internal revenue code Internal Revenue Code; minus the items of loss and deduction under section 702 of the internal revenue code Internal Revenue Code; plus payments treated as not made to partners under section 707 (a) of the internal revenue code Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx) and, (3s), (5d) and (7g); 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 employe as defined in section 3121 (d) (3) of the internal revenue code Internal Revenue Code.

SB199, s. 63 Section 63. Appropriation changes.

SB199,37,25 (1) Child care worker loan program. In the schedule under section 20.005 (3) of the statutes for the appropriation to the higher educational aids board under section 20.235 (2) (aa) of the statutes, as affected by the acts of 1999, the dollar amount is increased by $8,400 for fiscal year 1999-00 and the dollar amount is increased by $8,400 for fiscal year 2000-01 to increase the authorized FTE positions for the department by 0.5 position for the purpose of administering the child care worker loan repayment assistance program.

SB199, s. 64 Section 64. Initial applicability.