AB516: Bill Text

AB516,17,7 (b) Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2000, any partner, member of a limited liability company, or a shareholder of a tax-option corporation may claim as a credit against taxes otherwise due under s. 71.02 an amount that is equal to 100% of the amount of the partner's, member's, or shareholder's productivity enhancement training expenses certified by the department of commerce under s. 560.157 in the taxable year for which the expenses are certified, but that is not to exceed $7,500.

AB516,17,9 (c) The carry-over provisions of section 71.28 (4) (e) and (f), as they apply to the credit under s. 71.28 (4), apply to the credit under this subsection.

AB516,17,14 (d) A partner, member of a limited liability company, or shareholder of a tax-option corporation may not claim the credit under par. (b) for any productivity enhancement training expenses that the partner, member, or shareholder deducted from gross income for Wisconsin income tax or franchise tax purposes under section 162 of the Internal Revenue Code.

AB516,17,22 (e) 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 productivity enhancement training expenses certified under s. 560.157. 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.

AB516,17,24 (f) 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.

AB516,18,4 (g) No credit may be claimed under this subsection for taxable years beginning after December 31, 2009. Credits claimed under this subsection for taxable years beginning before January 1, 2010, may be carried forward to taxable years beginning after December 31, 2009, as provided under s. 71.28 (4) (f).

AB516, s. 17 Section 17. 71.08 (1) (intro.) of the statutes is amended to read:

AB516,18,14 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), (5v), (6), and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m) and, (3), and (5v), and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m) and, (3), and (5v) 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:

AB516, s. 18 Section 18. 71.10 (4) (cd) of the statutes is created to read:

AB516,18,16 71.10 (4) (cd) Education credit under s. 71.07 (5r).

AB516, s. 19 Section 19. 71.10 (4) (cp) of the statutes is created to read:

AB516,18,19 71.10 (4) (cp) Industrial, service, and skilled trades apprenticeship credit under s. 71.07 (5d).

AB516, s. 20 Section 20. 71.10 (4) (k) of the statutes is created to read:

AB516,18,21 71.10 (4) (k) Productivity enhancement training credit under s. 71.07 (5v).

AB516, s. 21 Section 21. 71.21 (4) of the statutes, as affected by 2001 Wisconsin Act 16, is amended to read:

AB516,19,3 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (3g), and (3s) , (sd), (5r), and (5v) and passed through to partners shall be added to the partnership's income.

AB516, s. 22 Section 22. 71.26 (2) (a) of the statutes, as affected by 2001 Wisconsin Act 16, is amended to read:

AB516,19,20 71.26 (2) (a) Corporations in general. The "net income" of a corporation means the gross income as computed under the 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), (3), (4), (5), plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), and (3g) (1dx), (3g), (5d), (5r), and (5v) 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 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).

AB516, s. 23 Section 23. 71.28 (1dx) (b) 1. of the statutes is amended to read:

AB516,19,23 71.28 (1dx) (b) 1. Fifty percent of the amount expended by the person for environmental remediation in a development zone.

AB516, s. 24 Section 24. 71.28 (1dx) (b) 1m. of the statutes is created to read:

AB516,20,8 71.28 (1dx) (b) 1m. Fifty percent of the amount expended by a municipality, as defined in s. 292.01 (11), or an organization that is exempt from federal income taxation under section 501 (c) (3) of the Internal Revenue Code for environmental remediation in a development zone, if the municipality or organization has entered into an exclusive written agreement with the person claiming the credit that approves of the person claiming the credit based on the expenditures of the municipality or organization. The department shall promulgate rules to implement this subdivision.

AB516, s. 25 Section 25. 71.28 (1dx) (f) of the statutes is created to read:

AB516,20,13 71.28 (1dx) (f) Transfer of credits. Any person who is eligible to claim a credit under par. (b) 1. may transfer the right to claim the credit under par. (b) 1. to any other person who is subject to taxation under this subchapter. The department shall promulgate rules to implement this paragraph.

AB516, s. 26 Section 26. 71.28 (5d) of the statutes is created to read:

AB516,20,16 71.28 (5d) Industrial, service, and skilled trades apprenticeship credit. (a) In this subsection:

AB516,20,23 1. "Apprentice" means a person who participates in a 2-year to 5-year apprenticeship program, as determined and approved by the department, in which the person receives instruction leading to qualification as a skilled journeyman in any industrial manufacturing trade or private sector service occupation or receives instruction in the construction trades leading to qualification as a skilled journeyman carpenter, including a floor coverer, millwright, or pile driver; laborer; ironworker; or painter, including a taper.

AB516,20,25 2. "Claimant" means a person who files a claim under this subsection and who is a trades trainer, as determined and approved by the department.

AB516,21,1 3. "Department" means the department of workforce development.

AB516,21,9 (b) Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2001, a claimant may claim as a credit against the taxes imposed under s. 71.23 an amount that is equal to 5% of the wages that the claimant paid to an apprentice in the taxable year, but not to exceed $1,400, except that a claimant may claim as a credit against the taxes imposed under s. 71.23 an amount that is equal to 8% of the wages that the claimant paid to an apprentice in the taxable year in which the apprentice completes an apprenticeship program, but not to exceed $3,000.

AB516,21,13 (c) No claimant may receive a credit under this subsection unless the claimant enters into an agreement with the department permitting the department to post on the department's Internet site the claimant's name and address and the number of apprentices and journeymen employed by the claimant during the calendar year.

AB516,21,24 (d) This subsection does not apply to taxable years that begin after December 31, 2004, if the number of employers training apprentices in department-approved programs does not increase by more than 40% from January 1, 2002, to December 31, 2004, as determined by the department, except that a claimant who has claimed a credit for an apprentice's wages in any taxable year beginning before January 1, 2005, may continue to claim a credit for the apprentice's wages in succeeding taxable years, until the apprentice completes the apprenticeship program. As soon as practicable after December 31, 2004, the department shall certify to the department of revenue the number of employers training apprentices in approved programs on January 1, 2002, and the number of employers training apprentices in approved programs on December 31, 2004.

AB516,22,2 (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.

AB516,22,10 (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 wages 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.

AB516,22,12 (g) Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB516, s. 27 Section 27. 71.28 (5r) of the statutes is created to read:

AB516,22,14 71.28 (5r) Education credit. (a) In this subsection:

AB516,22,15 1. "Claimant" means a corporation that files a claim under this subsection.

AB516,22,17 2. "Degree-granting program" means an education program for which an associate, a bachelor's, or a graduate degree is awarded upon successful completion.

AB516,22,18 3. "Family member" has the meaning given in s. 157.061 (7).

AB516,22,21 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.

AB516,22,22 5. "Poverty line" has the meaning given in s. 49.001 (5).

AB516,22,23 6. "Qualified postsecondary institution" means all of the following:

AB516,23,3 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.

AB516,23,5 b. A school approved under s. 45.54, if the school has a physical presence, and the delivery of education occurs, in this state.

AB516,23,8 (b) Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2001, a claimant may claim as a credit against the tax imposed under s. 71.23 an amount equal to the following:

AB516,23,12 1. Fifty percent of the tuition that the claimant paid or incurred during the taxable year for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a degree-granting program.

AB516,23,18 2. Seventy-five percent of the tuition that the claimant paid or incurred during the taxable year for an individual to participate in an education program of a qualified postsecondary institution, if the individual was enrolled in a degree-granting program and if the individual's taxable income in the year prior to commencing participation in the education program in connection with which a credit is claimed is not more than 185% of the poverty line.

AB516,23,20 (c) A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant has excluded under section 127 of the Internal Revenue Code.

AB516,23,23 (d) 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:

AB516,24,2 1. The family member was employed an average of at least 20 hours a 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).

AB516,24,4 2. The family member is enrolled in a degree-granting program that is substantially related to the claimant's business.

AB516,24,6 3. The family member is making satisfactory progress towards completing the degree-granting program under subd. 2.

AB516,24,8 (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.

AB516,24,16 (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 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.

AB516,24,18 (g) Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB516, s. 28 Section 28. 71.28 (5v) of the statutes is created to read:

AB516,24,22 71.28 (5v) Productivity enhancement training credit. (a) In this subsection, "productivity enhancement training expenses" has the meaning given in s. 560.157 (1).

AB516,25,3 (b) Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2000, any corporation may claim as a credit against taxes otherwise due under s. 71.23 an amount that is equal to 100% of the amount of the corporation's productivity enhancement training expenses certified by the department of commerce under s. 560.157 in the taxable year for which the expenses are certified, but that is not to exceed $7,500.

AB516,25,5 (c) 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.

AB516,25,9 (d) A corporation may not claim the credit under par. (b) for any productivity enhancement training expenses that the corporation deducted from gross income for Wisconsin income tax or franchise tax purposes under section 162 of the Internal Revenue Code.

AB516,25,17 (e) 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 productivity enhancement training expenses certified under s. 560.157. 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.

AB516,25,19 (f) Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB516,25,23 (g) No credit may be claimed under this subsection for taxable years beginning after December 31, 2009. Credits claimed under this subsection for taxable years beginning before January 1, 2010, may be carried forward to taxable years beginning after December 31, 2009, as provided under sub. (4) (f).

AB516, s. 29 Section 29. 71.30 (3) (dg) of the statutes is created to read:

AB516,25,25 71.30 (3) (dg) The education credit under s. 71.28 (5r).

AB516, s. 30 Section 30. 71.30 (3) (dm) of the statutes is created to read:

AB516,26,3 71.30 (3) (dm) The industrial, service, and skilled trades apprenticeship credit under s. 71.28 (5d).

AB516, s. 31 Section 31. 71.30 (3) (g) of the statutes is created to read:

AB516,26,5 71.30 (3) (g) Productivity enhancement training credit under s. 71.28 (5v).

AB516, s. 32 Section 32. 71.34 (1) (g) of the statutes, as affected by 2001 Wisconsin Act 16, is amended to read:

AB516,26,10 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), (1dm), (1ds), (1dx), (3), and (3g), (5d), (5r), and (5v) and passed through to shareholders.

AB516, s. 33 Section 33. 71.45 (2) (a) 10. of the statutes is amended to read:

AB516,26,17 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dx), (5d), (5r), and (5v) 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).

AB516, s. 34 Section 34. 71.47 (5d) of the statutes is created to read:

AB516,26,20 71.47 (5d) Industrial, service, and skilled trades apprenticeship credit. (a) In this subsection:

AB516,27,2 1. "Apprentice" means a person who participates in a 2-year to 5-year apprenticeship program, as determined and approved by the department, in which the person receives instruction leading to qualification as a skilled journeyman in any industrial manufacturing trade or private sector service occupation or receives instruction in the construction trades leading to qualification as a skilled journeyman carpenter, including a floor coverer, millwright, or pile driver; laborer; ironworker; or painter, including a taper.

AB516,27,4 2. "Claimant" means a person who files a claim under this subsection and who is a trades trainer, as determined and approved by the department.

AB516,27,5 3. "Department" means the department of workforce development.

AB516,27,13 (b) Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2001, a claimant may claim as a credit against the taxes imposed under s. 71.43 an amount that is equal to 5% of the wages that the claimant paid to an apprentice in the taxable year, but not to exceed $1,400, except that a claimant may claim as a credit against the taxes imposed under s. 71.43 an amount that is equal to 8% of the wages that the claimant paid to an apprentice in the taxable year in which the apprentice completes an apprenticeship program, but not to exceed $3,000.

AB516,27,17 (c) No claimant may receive a credit under this subsection unless the claimant enters into an agreement with the department permitting the department to post on the department's Internet site the claimant's name and address and the number of apprentices and journeymen employed by the claimant during the calendar year.

AB516,28,3 (d) This subsection does not apply to taxable years that begin after December 31, 2004, if the number of employers training apprentices in department-approved programs does not increase by more than 40% from January 1, 2002, to December 31, 2004, as determined by the department, except that a claimant who has claimed a credit for an apprentice's wages in any taxable year beginning before January 1, 2005, may continue to claim a credit for the apprentice's wages in succeeding taxable years, until the apprentice completes the apprenticeship program. As soon as practicable after December 31, 2004, the department shall certify to the department of revenue the number of employers training apprentices in approved programs on January 1, 2002, and the number of employers training apprentices in approved programs on December 31, 2004.

AB516,28,5 (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.

AB516,28,13 (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 wages 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.

AB516,28,15 (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.

AB516, s. 35 Section 35. 71.47 (5r) of the statutes is created to read:

AB516,28,17 71.47 (5r) Education credit. (a) In this subsection:

AB516,28,18 1. "Claimant" means a corporation that files a claim under this subsection.

AB516,28,20 2. "Degree-granting program" means an educational program for which an associate, a bachelor's, or a graduate degree is awarded upon successful completion.