SB482: Bill Text

SB482,5,8 (b) 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 $1,000 for every $3,000 of qualified expenses that the claimant pays on behalf of a qualified student in a taxable year.

SB482,5,11 (c) A claimant may claim credits under par. (b) for qualified expenses that are paid for no more than 10 semesters that the qualified student is enrolled as an undergraduate.

SB482,5,14 (d) A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant excluded under s. 71.05 (6) (b) 28. or under section 127 of the Internal Revenue Code.

SB482,5,16 (e) The carry-over provisions of sub. (4) (e) and (f), as they apply to the credit under sub. (4), apply to the credit under this subsection.

SB482,5,24 (f) 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 qualified expenses under par. (b) 1. 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.

SB482,6,2 (g) Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB482, s. 6 Section 6. 71.30 (3) (dm) of the statutes is created to read:

SB482,6,4 71.30 (3) (dm) The student sponsorship credit under s. 71.28 (5d).

SB482, s. 7 Section 7. 71.45 (2) (a) 10. of the statutes is amended to read:

SB482,6,11 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dx) and (5d) 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).

SB482, s. 8 Section 8. 71.47 (5d) of the statutes is created to read:

SB482,6,13 71.47 (5d) Student sponsorship credit. (a) In this subsection:

SB482,6,14 1. "Claimant" means a corporation that files a claim under this subsection.

SB482,6,16 2. "Qualified expenses" means expenses related to attending school including room and board, books and tuition.

SB482,6,17 3. "Qualified student" means any of the following:

SB482,6,20 a. A student who is a full-time undergraduate student enrolled in the University of Wisconsin System and who is eligible for a Wisconsin higher education grant under s. 39.435 for at least 2 semesters that the student is enrolled.

SB482,6,24 b. A student who is a full-time undergraduate student enrolled in a regionally accredited 4-year private college or university in this state and who is eligible for a talent incentive grant under s. 39.435 (2) for at least 2 semesters that the student is enrolled.

SB482,7,4 (b) 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 $1,000 for every $3,000 of qualified expenses that the claimant pays on behalf of a qualified student in a taxable year.

SB482,7,7 (c) A claimant may claim credits under par. (b) for qualified expenses that are paid for no more than 10 semesters that the qualified student is enrolled as an undergraduate.

SB482,7,10 (d) A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant excluded under s. 71.05 (6) (b) 28. or under section 127 of the Internal Revenue Code.

SB482,7,12 (e) The carry-over provisions of s. 71.28 (4) (e) and (f), as they apply to the credit under s. 71.28 (4), apply to the credit under this subsection.

SB482,7,20 (f) 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 qualified expenses under par. (b) 1. 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.

SB482,7,22 (g) 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.

SB482, s. 9 Section 9. 71.49 (1) (dm) of the statutes is created to read:

SB482,7,24 71.49 (1) (dm) The student sponsorship credit under s. 71.47 (5d).

SB482, s. 10 Section 10. 77.92 (4) of the statutes, as affected by 1999 Wisconsin Act 9, is amended to read:

SB482,8,17 77.92 (4) "Net business income", with respect to a partnership, means taxable income as calculated under section 703 of the Internal Revenue Code; 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), (2dr), (2ds), (2dx) and, (3s) and (5d); 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 employe as defined in section 3121 (d) (3) of the Internal Revenue Code.

SB482, s. 11 Section 11. Initial applicability.

SB482,8,19 (1) This act first applies to taxable years beginning on January 1, 2000.

SB482,8,20 (End)