AB557: Bill Text

AB557, s. 11 Section 11. 71.08 (1) (intro.) of the statutes is amended to read:

AB557,9,25 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:

AB557, s. 12 Section 12. 71.10 (4) (k) of the statutes is created to read:

AB557,10,6 71.10 (4) (k) Productivity enhancement training credit under s. 71.07 (5v).

AB557, s. 13 Section 13. 71.21 (4) of the statutes, as affected by 2001 Wisconsin Act 16, is amended to read:

AB557,10,11 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (3g), and (3s) , and (5v) and passed through to partners shall be added to the partnership's income.

AB557, s. 14 Section 14. 71.26 (2) (a) of the statutes, as affected by 2001 Wisconsin Act 16, is amended to read:

AB557,11,3 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), 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).

AB557, s. 15 Section 15. 71.28 (1dx) (b) 1. of the statutes is amended to read:

AB557,11,6 71.28 (1dx) (b) 1. Fifty percent of the amount expended by the person for environmental remediation in a development zone.

AB557, s. 16 Section 16. 71.28 (1dx) (b) 1m. of the statutes is created to read:

AB557,11,15 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.

AB557, s. 17 Section 17. 71.28 (1dx) (f) of the statutes is created to read:

AB557,11,20 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.

AB557, s. 18 Section 18. 71.28 (5v) of the statutes is created to read:

AB557,11,24 71.28 (5v) Productivity enhancement training credit. (a) In this subsection, "productivity enhancement training expenses" has the meaning given in s. 560.157 (1).

AB557,12,6 (b) Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2001, 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.

AB557,12,8 (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.

AB557,12,12 (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.

AB557,12,20 (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.

AB557,12,22 (f) Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB557,13,2 (g) No credit may be claimed under this subsection for taxable years beginning after December 31, 2010. Credits claimed under this subsection for taxable years beginning before January 1, 2011, may be carried forward to taxable years beginning after December 31, 2010, as provided under sub. (4) (f).

AB557, s. 19 Section 19. 71.30 (3) (g) of the statutes is created to read:

AB557,13,4 71.30 (3) (g) Productivity enhancement training credit under s. 71.28 (5v).

AB557, s. 20 Section 20. 71.34 (1) (g) of the statutes, as affected by 2001 Wisconsin Act 16, is amended to read:

AB557,13,9 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), and (5v) and passed through to shareholders.

AB557, s. 21 Section 21. 71.45 (2) (a) 10. of the statutes is amended to read:

AB557,13,16 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dx) 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).

AB557, s. 22 Section 22. 71.47 (5v) of the statutes is created to read:

AB557,13,20 71.47 (5v) Productivity enhancement training credit. (a) In this subsection, "productivity enhancement training expenses" has the meaning given in s. 560.157 (1).

AB557,14,2 (b) Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2001, any corporation may claim as a credit against taxes otherwise due under s. 71.43 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 not to exceed $7,500.

AB557,14,4 (c) 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.

AB557,14,8 (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.

AB557,14,16 (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.

AB557,14,18 (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.

AB557,14,22 (g) No credit may be claimed under this subsection for taxable years beginning after December 31, 2010. Credits claimed under this subsection for taxable years beginning before January 1, 2011, may be carried forward to taxable years beginning after December 31, 2010 as provided under s. 71.28 (4) (f).

AB557, s. 23 Section 23. 71.49 (1) (g) of the statutes is created to read:

AB557,14,24 71.49 (1) (g) Productivity enhancement training credit under s. 71.47 (5v).

AB557, s. 24 Section 24. 77.92 (4) of the statutes, as affected by 2001 Wisconsin Act 16, is amended to read:

AB557,15,17 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), (2dm), (2dr), (2ds), (2dx), and (3g), and (3s), and (5v); 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.

AB557, s. 25 Section 25. 106.01 (12) of the statutes is created to read:

AB557,16,5 106.01 (12) From the appropriations under s. 20.445 (1) (a) and (g), the department shall allocate $150,000 in each fiscal year for apprenticeship marketing activities, including the development and distribution of promotional materials directed at encouraging employers to hire apprentices, educating high school career counselors on careers available in the skilled trades, encouraging the youth of this state to consider a career in the skilled trades, and otherwise promoting the availability and benefits of careers in the skilled trades. The department shall solicit contributions from private sources to assist in the provision of those promotional materials and shall credit any contributions received to the appropriation account under s. 20.445 (1) (g). The department shall seek the advice of and consult with the apprenticeship marketing council regarding the administration of the apprenticeship marketing activities provided under this subsection.

AB557, s. 26 Section 26. 106.01 (13) of the statutes is created to read:

AB557,16,14 106.01 (13) (a) In this subsection, "industrial, service, or skilled trades apprenticeship program" means a 2-year to 5-year apprenticeship program, as determined and approved by the department, in which an apprentice 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.

AB557,17,3 (b) From the appropriation under s. 20.445 (1) (a), the department shall allocate $300,000 in each fiscal year to contract with an organization to provide preapprenticeship basic skills training grants of up to $500 to persons who are eligible under this paragraph to receive those grants. A person is eligible to receive a grant under this paragraph if the person's family income does not exceed 165% of the poverty line for the continental United States, as revised annually by the federal department of health and human services under 42 USC 9902 (2), and if the person has previously failed a test for placement in an industrial, service, or skilled trades apprenticeship program, but wishes to participate in such a program. A person who receives a grant under this paragraph may use the grant moneys received to pay for the costs of tuition, fees, books, supplies, and materials, and for any other direct training costs, required to attend a preapprenticeship basic skills training program provided by an organization, a technical college, or a school approved by the educational approval board under s. 45.54.

AB557, s. 27 Section 27. 106.28 of the statutes is created to read:

AB557,17,9 106.28 Workplace diversity grant program. (1) The department shall administer a grant program under which local, nonprofit organizations that offer diversity training, basic employment skills development, or instruction in English as a 2nd language to employees and persons seeking employment may receive grants for the operation of those activities.

AB557,17,11 (2) A local, nonprofit organization is qualified for a grant under this section if any of the following applies:

AB557,17,15 (a) The governing body of the local, nonprofit organization is comprised of representatives of private sector employers and local governmental units or agencies, and the local, nonprofit organization assists local employees in meeting their workforce needs.

AB557,17,19 (b) The local, nonprofit organization assists persons who have been convicted of a crime, whether employed or not, in strengthening or developing their employment skills and in making or easing their transition from incarceration to work.

AB557,17,21 (c) The local, nonprofit organization assists any of the following persons, whether employed or not, in preparing for or gaining entry into the skilled trades:

AB557,17,23 1. Persons who are eligible for benefits under the Wisconsin works program under ss. 49.141 to 49.161.

AB557,17,24 2. Persons who are military veterans.

AB557,17,25 3. Persons who have been convicted of a crime.

AB557,18,1 4. Persons who are eligible for food stamps under s. 49.124.

AB557,18,2 5. Persons who are minority group members, as defined in s. 560.036 (1) (f).

AB557,18,5 (3) To the extent practicable, the department shall ensure that the grants under this section are awarded to local, nonprofit organizations from different geographic regions of the state.

AB557,18,9 (4) To qualify for an initial grant under this section, a local, nonprofit organization must apply to the department by December 1, 2002. The application shall describe how the organization qualifies for a grant under subs. (1) and (2) and how the organization will use the grant.

AB557,18,16 (5) The department shall promulgate emergency rules under s. 227.24 to establish criteria to be used in determining which qualified local, nonprofit organizations are eligible for grants under this section. Notwithstanding s. 227.24 (1) (a) and (3), the department is not required to provide evidence that promulgating an emergency rule under this subsection is necessary for the preservation of public peace, health, safety, or welfare, and is not required to provide a finding of emergency for a rule promulgated under this subsection.

AB557,18,18 (6) The department may not expend more than $30,000 as grants under this section for any given local, nonprofit organization.

AB557,18,20 (7) By January 1, 2003, the department shall begin making the grants under this section from the appropriation under s. 20.445 (1) (d).

AB557,19,2 (8) By September 1, 2003, the department shall report on the grant program under this section, including the uses that the initial grant recipients made of the grants and a recommendation on whether the grant program should be funded in the next biennium and, if so, a recommendation of an appropriate funding level and any changes that should be made to the program. The report shall be submitted to the appropriate standing committees of the legislature under s. 13.172 (3), to the joint committee on finance, and to the governor.

AB557, s. 28 Section 28. 560.157 of the statutes is created to read:

AB557,19,10 560.157 Productivity enhancement training expense certification. (1) Definition. In this section, "productivity enhancement training expenses" means expenses incurred by a business in providing training designed to increase the productivity of the business's employees and to promote or create jobs that require high degrees of skill to perform and that pay high wages. "Productivity enhancement training expenses" includes up to $2,000 in expenses incurred for needs assessment and consultation under sub. (4) (b).

AB557,19,15 (2) Program. The department shall develop, implement, and administer a productivity enhancement training expense certification program to assist businesses in providing training to their employees that is designed to improve the employees' productivity and to promote, and provide workers for, jobs within the businesses that require high degrees of skill to perform and that pay high wages.

AB557,19,18 (3) Certification. The department shall certify the productivity enhancement training expenses of a business for the tax credit under s. 71.07 (5v), 71.28 (5v), or 71.47 (5v), if the business meets the eligibility requirements under sub. (4).

AB557,19,20 (4) Eligibility. A business is eligible to have its productivity enhancement training expenses certified if all of the following apply:

AB557,19,22 (a) The business submits to the department a productivity enhancement training plan that the department finds does all of the following:

AB557,19,25 1. Provides for training of the business's employees that will increase the employees' productivity to achieve specific goals established as a result of the assessment and consultation under par. (b).

AB557,20,4 2. Provides for training of the business's employees that will result in the employees holding jobs within the business that require higher degrees of skill and that pay higher wages than their current jobs, as determined by the assessment and consultation under par. (b).

AB557,20,8 (b) Prior to providing any productivity enhancement training, the business receives needs assessment and consultation from an entity that is experienced in providing productivity assessment or business planning and that is approved by the department.

AB557,20,11 (c) Through the needs assessment and consultation under par. (b), the business and the entity agree on a training plan that is appropriate for the purposes specified under par. (a).

AB557,20,14 (d) The business submits to the department an accounting of the productivity enhancement training expenses incurred by the business under the plan under par. (a) and the department determines that the expenses were incurred under the plan.

AB557,20,21 (5) Reporting. (a) Each business that has its productivity enhancement training expenses certified under this section and that claims the tax credit under s. 71.07 (5v), 71.28 (5v), or 71.47 (5v), shall report to the department, no later March 1 of the year after the business receives the certification, on the results of its productivity enhancement training and on its success in meeting the goals established in its productivity enhancement training plan. The report shall be in the form prescribed by the department.

AB557,20,23 (b) Annually, the department shall estimate the amount of foregone state revenue because of the tax credits claimed by persons certified under this section.

AB557,21,2 (c) Annually by December 1, the department shall report to the legislature under s. 13.172 (2) on the effectiveness of the productivity enhancement training certification program and the tax credits under ss. 71.07 (5v), 71.28 (5v), and 71.47 (5v) in meeting the purposes of the program as specified in sub. (2).

AB557,21,6 (6) Application. The department shall, by rule, develop application procedures for productivity enhancement training certification. The application for certification shall show that the applicant satisfies the requirements under sub. (4) and commits to reporting under sub. (5) (a).

AB557,21,9 (7) Notification. The department shall notify the department of revenue of all businesses that are entitled to claim tax credits under ss. 71.07 (5v), 71.28 (5v), and 71.47 (5v).

AB557,21,12 (8) Transferability. The tax credits for which a business may have its productivity enhancement training expenses certified under this section are not transferable to another business or person.

AB557,21,14 (9) Sunset. No business may be certified under this section after December 31, 2010, or for tax credits for any tax year beginning after December 31, 2010.

AB557, s. 29 Section 29. 560.797 (4) (f) of the statutes is amended to read:

AB557,21,19 560.797 (4) (f) The tax benefits for which a person is certified as eligible under this subsection are not transferable to another person, business, or location, except as provided in s. 71.28 (1dx) (f) or to the extent permitted under section 383 of the internal revenue code.

AB557, s. 30 Section 30 . Nonstatutory provisions; workforce development.

AB557,22,2 (1) Apprenticeship marketing council; initial terms. Notwithstanding the length of terms specified for the members of the apprenticeship marketing council under section 15.227 (14) of the statutes, as created by this act, representing the interests of employees and the members of that council representing the interests of employers, the initial members of that council representing the interests of employees and the initial members of that council representing the interests of employers shall be appointed for the following terms:

AB557,22,4 (a) One member representing employees and one member representing employers, for terms expiring on July 1, 2003.

AB557,22,6 (b) One member representing employees and one member representing employers, for terms expiring on July 1, 2004.

AB557,22,8 (c) Two members representing employees and 2 members representing employers, for terms expiring on July 1, 2005.

AB557, s. 31 Section 31. Appropriation changes.

AB557,22,14 (1) Job retention skills development programs. There is transferred from the appropriation to the department of workforce development under section 20.445 (3) (md) of the statutes, as affected by the acts of 2001, to the appropriation to the technical college system college board under section 20.292 (1) (kd) of the statutes, as created by this act, $200,000 in fiscal year 2002-03.