MES:jld:jf
2007 - 2008 LEGISLATURE
November 29, 2007 - Introduced by Representatives Hines, Albers, Bies,
Gunderson, Musser
and A. Ott, cosponsored by Senators Leibham and
Schultz. Referred to Committee on Jobs and The Economy.
AB601,1,3 1An Act to create 71.07 (6f) and 71.10 (4) (cf) of the statutes; relating to: creating
2a nonrefundable individual income tax credit for individuals who earn an
3associate's or bachelor's degree.
Analysis by the Legislative Reference Bureau
This bill creates a nonrefundable individual income tax credit for all of the
income (wages, salary, or tips) received by an individual who is awarded an
associate's or bachelor's degree by an accredited college or university. Because the
credit is nonrefundable, it may be claimed only up to the amount of a claimant's
income tax liability. The credit may not be claimed by individuals who are
nonresidents or part-year residents of Wisconsin.
The credit must be claimed for two or four consecutive years, beginning with the
year that begins after the year in which the claimant's degree is awarded. If a
claimant who claims the credit for an associate's degree later earns a bachelor's
degree, he or she may claim the credit for two additional years. No individual may
claim the credit for more than four years.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB601, s. 1
1Section 1. 71.07 (6f) of the statutes is created to read:
AB601,2,32 71.07 (6f) Postsecondary degree tax credit. (a) Definitions. In this
3subsection:
AB601,2,54 1. "Claimant" means an individual who is awarded a degree and who claims
5a credit under this subsection.
AB601,2,86 2. "Degree" means an associate's degree or a bachelor's degree that is awarded
7to a claimant from a college or university that is regionally accredited and that is
8located in a state or territory of the United States.
AB601,2,109 3. "Income" means wages, salary, or tip income earned by a claimant in the year
10to which the claim relates.
AB601,2,1311 (b) Filing claims. Subject to the limitations provided in this subsection, a
12claimant may claim as a credit against the tax imposed under s. 71.02, up to the
13amount of those taxes, an amount equal to the claimant's income.
AB601,2,1514 (c) Limitations. 1. No credit may be allowed under this subsection unless it
15is claimed within the time period under s. 71.75 (2).
AB601,2,1716 2. No credit may be claimed by an individual who is a nonresident or part-year
17resident of this state.
AB601,2,2118 3. Except as provided in subd. 5., an individual who is awarded an associate's
19degree may only claim the credit under this subsection for 2 consecutive taxable
20years, beginning with the taxable year that begins after the year in which the
21individual is awarded his or her degree.
AB601,2,2522 4. Except as provided in subd. 5., an individual who is awarded a bachelor's
23degree may only claim the credit under this subsection for 4 consecutive taxable
24years, beginning with the taxable year that begins after the year in which the
25individual is awarded his or her degree.
AB601,3,4
15. If an individual who claims the credit described in subd. 3. subsequently
2earns a bachelor's degree, he or she may claim the credit described in subd. 4., but
3only for 2 consecutive taxable years, beginning with the taxable year that begins
4after the year in which the individual is awarded his or her bachelor's degree.
AB601,3,65 6. No individual may claim the credit under this subsection for more than 4
6taxable years.
AB601,3,87 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit
8under that subsection, applies to the credit under this subsection.
AB601, s. 2 9Section 2. 71.10 (4) (cf) of the statutes is created to read:
AB601,3,1010 71.10 (4) (cf) The postsecondary degree tax credit under s. 71.07 (6f).
AB601, s. 3 11Section 3. Initial applicability.
AB601,3,1512 (1) This act first applies to taxable years beginning on January 1 of the year
13in which this subsection takes effect, except that if this subsection takes effect after
14July 31 this act first applies to taxable years beginning on January 1 of the year
15following the year in which this subsection takes effect.
AB601,3,1616 (End)
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