AB748: Bill Text

AB748,3,3 2. "Dentist" means a dentist, as defined in s. 447.01 (7), who is licensed under ch. 447, who practices general or pediatric dentistry, and who provides services to medical assistance recipients.

AB748,3,7 3. "High rate of service" means a rate of service provided by a dentist or a physician to medical assistance recipients that is at least 200 percent greater than the average rate of service provided by all dentists or physicians, as determined by the department of health and family services.

AB748,3,8 4. "Medical assistance" has the meaning given in s. 49.43 (8).

AB748,3,11 5. "Physician" means a physician, as defined in s. 448.01 (5), specializing in family medical practice, general internal medicine, or pediatrics and who provides services to medical assistance recipients.

AB748,3,13 6. "Rate of service" means the percentage of a dentist's or physician's patients who receive medical assistance.

AB748,3,19 7. "Unreimbursed costs" means the difference between either a physician's usual and customary charges for providing a service specified under s. 49.46 (2) (a) 1., and the amount paid to the physician under s. 49.45 (3) for providing such service to recipients of medical assistance, or the difference between a dentist's usual and customary charges for providing a dental service, and the amount paid to the dentist under s. 49.45 (3) for providing such service to recipients of medical assistance.

AB748,3,23 (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 the claimant's unreimbursed costs that are incurred in the taxable year to which the claim relates.

AB748,3,25 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

AB748,4,2 2. 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.

AB748,4,11 3. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, that credit shall be determined on the basis of their economic activity, not that of their partners, members, or shareholders. 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.

AB748,4,21 4. For a claimant who is a nonresident or part-year resident of this state and who is a single person or a married person filing a separate return, multiply the credit for which the claimant is eligible under par. (b) by a fraction the numerator of which is the individual's Wisconsin adjusted gross income and the denominator of which is the individual's federal adjusted gross income. If a claimant is married and files a joint return, and if the claimant or the claimant's spouse, or both, are nonresidents or part-year residents of this state, multiply the credit for which the claimant is eligible under par. (b) by a fraction the numerator of which is the couple's joint Wisconsin adjusted gross income and the denominator of which is the couple's joint federal adjusted gross income.

AB748,4,23 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

AB748, s. 4 Section 4. 71.10 (4) (cd) of the statutes is created to read:

AB748,5,2 71.10 (4) (cd) The high rate of medical and dental services tax credit under s. 71.07 (5r).

AB748, s. 5 Section 5. 71.21 (4) of the statutes is amended to read:

AB748,5,6 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3n), (3s), (3t), (3w), (5b), (5e), (5f), (5g), and (5h), and (5r) and passed through to partners shall be added to the partnership's income.

AB748, s. 6 Section 6. 71.26 (2) (a) of the statutes is amended to read:

AB748,5,25 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), and (5) minus, as provided under s. 71.28 (3) (c) 7., the amount of the credit under s. 71.28 (3) that the taxpayer added to income under this paragraph at the time that the taxpayer first claimed the credit plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3g), (3n), (3t), (3w), (5b), (5e), (5f), (5g), and (5h), and (5r) 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).

AB748, s. 7 Section 7. 71.28 (5r) of the statutes is created to read:

AB748,6,3 71.28 (5r) High rate of medical and dental services tax credit. (a) Definitions. In this subsection:

AB748,6,6 1. "Claimant" means a corporation that includes at least one physician or dentist who provides a high rate of service and that files a claim under this subsection.

AB748,6,9 2. "Dentist" means a dentist, as defined in s. 447.01 (7), who is licensed under ch. 447, who practices general or pediatric dentistry, and who provides services to medical assistance recipients.

AB748,6,13 3. "High rate of service" means a rate of service provided by a dentist or a physician to medical assistance recipients that is at least 200 percent greater than the average rate of service provided by all dentists or physicians, as determined by the department of health and family services.

AB748,6,14 4. "Medical assistance" has the meaning given in s. 49.43 (8).

AB748,6,17 5. "Physician" means a physician, as defined in s. 448.01 (5), specializing in family medical practice, general internal medicine, or pediatrics and who provides services to medical assistance recipients.

AB748,6,19 6. "Rate of service" means the percentage of a dentist's or physician's patients who receive medical assistance.

AB748,6,25 7. "Unreimbursed costs" means the difference between either a physician's usual and customary charges for providing a service specified under s. 49.46 (2) (a) 1., and the amount paid to the physician under s. 49.45 (3) for providing such service to recipients of medical assistance, or the difference between a dentist's usual and customary charges for providing a dental service, and the amount paid to the dentist under s. 49.45 (3) for providing such service to recipients of medical assistance.

AB748,7,4 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.23, up to the amount of those taxes, an amount equal to the claimant's unreimbursed costs that are incurred in the taxable year to which the claim relates.

AB748,7,6 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

AB748,7,8 2. 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.

AB748,7,17 3. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, that credit shall be determined on the basis of their economic activity, not that of their partners, members, or shareholders. 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.

AB748,7,23 4. The credits under this subsection may not be claimed by a partnership, except a publicly traded partnership treated as a corporation under s. 71.22 (1k), limited liability company, except a limited liability company treated as a corporation under s. 71.22 (1k), or tax-option corporation or by partners, including partners of a publicly traded partnership, members of a limited liability company, or shareholders of a tax-option corporation.

AB748,7,25 (d) Administration. Subsection (4) (g), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

AB748, s. 8 Section 8. 71.30 (3) (dr) of the statutes is created to read:

AB748,8,3 71.30 (3) (dr) The high rate of medical and dental services tax credit under s. 71.28 (5r).

AB748, s. 9 Section 9. 71.34 (1) (g) of the statutes is amended to read:

AB748,8,8 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), (3g), (3n), (3t), (3w), (5b), (5e), (5f), (5g), and (5h) , and (5r) and passed through to shareholders.

AB748, s. 10 Section 10. 71.45 (2) (a) 10. of the statutes is amended to read:

AB748,8,15 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dx), (3n), (3w), (5b), (5e), (5f), (5g), and (5h), and (5r) 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), (3t), (4), and (5).

AB748, s. 11 Section 11. 71.47 (5r) of the statutes is created to read:

AB748,8,18 71.47 (5r) High rate of medical and dental services tax credit. (a) Definitions. In this subsection:

AB748,8,21 1. "Claimant" means a corporation that includes at least one physician or dentist who provides a high rate of service and that files a claim under this subsection.

AB748,8,24 2. "Dentist" means a dentist, as defined in s. 447.01 (7), who is licensed under ch. 447, who practices general or pediatric dentistry, and who provides services to medical assistance recipients.

AB748,9,4 3. "High rate of service" means a rate of service provided by a dentist or a physician to medical assistance recipients that is at least 200 percent greater than the average rate of service provided by all dentists or physicians, as determined by the department of health and family services.

AB748,9,5 4. "Medical assistance" has the meaning given in s. 49.43 (8).

AB748,9,8 5. "Physician" means a physician, as defined in s. 448.01 (5), specializing in family medical practice, general internal medicine, or pediatrics and who provides services to medical assistance recipients.

AB748,9,10 6. "Rate of service" means the percentage of a dentist's or physician's patients who receive medical assistance.

AB748,9,16 7. "Unreimbursed costs" means the difference between either a physician's usual and customary charges for providing a service specified under s. 49.46 (2) (a) 1., and the amount paid to the physician under s. 49.45 (3) for providing such service to recipients of medical assistance, or the difference between a dentist's usual and customary charges for providing a dental service, and the amount paid to the dentist under s. 49.45 (3) for providing such service to recipients of medical assistance.

AB748,9,20 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.43, up to the amount of those taxes, an amount equal to the claimant's unreimbursed costs that are incurred in the taxable year to which the claim relates.

AB748,9,22 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

AB748,9,24 2. 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.

AB748,10,9 3. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, that credit shall be determined on the basis of their economic activity, not that of their partners, members, or shareholders. 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.

AB748,10,15 4. The credits under this subsection may not be claimed by a partnership, except a publicly traded partnership treated as a corporation under s. 71.22 (1k), limited liability company, except a limited liability company treated as a corporation under s. 71.22 (1k), or tax-option corporation or by partners, including partners of a publicly traded partnership, members of a limited liability company, or shareholders of a tax-option corporation.

AB748,10,17 (d) Administration. Section 71.28 (4) (g), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

AB748, s. 12 Section 12. 71.49 (1) (dr) of the statutes is created to read:

AB748,10,20 71.49 (1) (dr) The high rate of medical and dental services tax credit under s. 71.47 (5r).

AB748, s. 13 Section 13. 77.92 (4) of the statutes is amended to read:

AB748,11,11 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), (3g), (3s), (3n), (3t), (3w), (5b), (5e), (5f), (5g), and (5h), and (5r); 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 employee as defined in section 3121 (d) (3) of the Internal Revenue Code.

AB748, s. 14 Section 14. Initial applicability.

AB748,11,16 (1) This act first applies to taxable years beginning on January 1 of the year in which this subsection takes effect, except that if this subsection takes effect after July 31 this act first applies to taxable years beginning on January 1 of the year following the year in which this subsection takes effect.

AB748,11,17 (End)