AB234: Bill Text

2009 Assembly BILL 234

April 29, 2009 - Introduced by Representatives Fields, A. Williams, Staskunas, Lothian, Jorgensen, Hilgenberg, Grigsby, Pasch and Parisi, cosponsored by Senators Erpenbach and Plale. Referred to Committee on Jobs, the Economy and Small Business.

AB234,1,4 An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a) 4., 71.34 (1k) (g), 71.45 (2) (a) 10. and 77.92 (4); and to create 71.07 (5c), 71.10 (4) (cr), 71.28 (5c), 71.30 (3) (dr), 71.47 (5c) and 71.49 (1) (cr) of the statutes; relating to: an income and franchise tax for hiring certain individuals.

Analysis by the Legislative Reference Bureau

This bill provides income and franchise tax credits for hiring the following individuals:

1. A veteran who is entitled to compensation for a service-connected disability and who is a member of a family receiving supplemental nutrition assistance.

2. An ex-felon.

3. An individual who is a vocational rehabilitation referral.

4. An individual who is participating in a program administered by any local workforce development board in this state.

5. An individual who is at least 16 years of age, but no more than 17 years of age, who is either a high school student or who graduates from high school during the taxable year for which a credit is claimed, and who is a member of a family whose Wisconsin taxable income is no more than 70 percent of the federal poverty line.

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:

AB234, s. 1 Section 1. 71.05 (6) (a) 15. of the statutes, as affected by 2009 Wisconsin Act 2, is amended to read:

AB234,2,8 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3r), (3s), (3t), (3w), (5c), (5e), (5f), (5h), (5i), (5j), and (5k) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).

AB234, s. 2 Section 2. 71.07 (5c) of the statutes is created to read:

AB234,2,10 71.07 (5c) Job opportunities credit. (a) Definitions. In this subsection:

AB234,2,11 1. "Adult employee" means any of the following:

AB234,2,13 a. A qualified veteran, as defined in section 51 (d) (3) of the Internal Revenue Code.

AB234,2,15 b. A qualified ex-felon, as defined in section 51 (d) (4) of the Internal Revenue Code.

AB234,2,17 c. An individual who is a vocational rehabilitation referral, as defined in section 51 (d) (6) of the Internal Revenue Code.

AB234,2,18 2. "Claimant" means a person who files a claim under this subsection.

AB234,3,3 3. "Youth employee" means an individual who is at least 16 years of age, but no more than 17 years of age, who is either a high school student or graduates from high school during the taxable year for which a credit is claimed under this subsection, and who is a member of a family whose Wisconsin taxable income is no more than 70 percent of the federal poverty line, as defined under 42 USC 9902 (2), for a family the size of the individual's family.

AB234,3,8 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the taxes imposed under s. 71.02, up to the amount of the taxes, any of the following amounts that the claimant paid in the taxable year to an individual whom the claimant hired in that taxable year, if the individual is employed in this state:

AB234,3,11 1. For taxable years beginning after December 31, 2008, but before January 1, 2010, 20 percent of the wages that the claimant paid to an adult employee, if the adult employee worked at least 400 hours in the taxable year, including paid leave.

AB234,3,16 2. For taxable years beginning after December 31, 2008, but before January 1, 2010, 20 percent of the wages that the claimant paid to an individual who is participating in a program administered by a local workforce development board in this state, as established under 29 USC 2832, if the individual worked at least 400 hours in the taxable year, including paid leave.

AB234,3,19 3. For taxable years beginning after December 31, 2009, 20 percent of the wages that the claimant paid to an adult employee, if the adult employee worked at least 1,560 hours in the taxable year, including paid leave.

AB234,3,24 4. For taxable years beginning after December 31, 2009, 20 percent of the wages that the claimant paid to an individual who is participating in a program administered by a local workforce development board in this state, as established under 29 USC 2832, if the individual worked at least 1,560 hours in the taxable year, including paid leave.

AB234,3,25 5. Fifty percent of the monthly wages paid to a youth employee.

AB234,4,3 (c) Limitations. 1. The maximum amount of the credit that a claimant may claim under par. (b) 1. and 3. in a taxable year shall not exceed an amount equal $2,500 for each adult employee described under par. (b) 1. and 3.

AB234,4,6 2. The maximum amount of the credits that may be claimed by all claimants under par. (b) 1. and 3. and ss. 71.28 (5c) (b) 1. and 3. and 71.47 (5c) (b) 1. and 3. in a calendar year is $6,000,000.

AB234,4,9 3. The maximum amount of the credit that a claimant may claim under par. (b) 2. and 4. in a taxable year shall not exceed an amount equal $2,000 for each employee described under par. (b) 2. and 4.

AB234,4,12 4. The maximum amount of the credits that may be claimed by all claimants under par. (b) 2. and 4. and ss. 71.28 (5c) (b) 2. and 4. and 71.47 (5c) (b) 2. and 4. in a calendar year is $3,000,000.

AB234,4,16 5. If an employee described in par. (b) 1. to 4. works for the claimant for less than 365 consecutive days, the amount of any credit that the claimant claimed under this subsection shall be paid to the department in the manner prescribed by the department.

AB234,4,21 6. The maximum amount of the credit that a claimant may claim under par. (b) 5. in the taxable year for a youth employee who works less than 35 hours a week during the taxable year, including paid leave, shall not exceed an amount equal to $200 for each such youth employee, multiplied by the number of months that the youth employee is employed by the claimant.

AB234,5,2 7. The maximum amount of the credit that a claimant may claim under par. (b) 5. in the taxable year for a youth employee who works 35 hours or more a week during the taxable year, including paid leave, shall not exceed an amount equal to $400 for each such youth employee, multiplied by the number of months that the youth employee is employed by the claimant.

AB234,5,5 8. The maximum amount of the credit that a claimant may claim under par. (b) 5. in a taxable year shall not exceed an amount equal $1,200 for each youth employee described under par. (b) 5.

AB234,5,8 9. The maximum amount of the credits that may be claimed by all claimants under par. (b) 5. and ss. 71.28 (5c) (b) 5. and 71.47 (5c) (b) 5. in a calendar year is $3,000,000.

AB234,5,16 10. 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 amounts 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.

AB234,5,18 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB234, s. 3 Section 3. 71.10 (4) (cr) of the statutes is created to read:

AB234,5,20 71.10 (4) (cr) Job opportunities credit under s. 71.07 (5c).

AB234, s. 4 Section 4. 71.21 (4) of the statutes, as affected by 2009 Wisconsin Act 2, is amended to read:

AB234,6,2 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3r), (3s), (3t), (3w), (5c), (5e), (5f), (5g), (5h), (5i), (5j), and (5k) and passed through to partners shall be added to the partnership's income.

AB234, s. 5 Section 5. 71.26 (2) (a) 4. of the statutes, as affected by 2009 Wisconsin Act 2, is amended to read:

AB234,6,10 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3r), (3t), (3w), (5c), (5e), (5f), (5g), (5h), (5i), (5j), and (5k) 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 (1k) (g).

AB234, s. 6 Section 6. 71.28 (5c) of the statutes is created to read:

AB234,6,12 71.28 (5c) Job opportunities credit. (a) Definitions. In this subsection:

AB234,6,13 1. "Adult employee" means any of the following:

AB234,6,15 a. A qualified veteran, as defined in section 51 (d) (3) of the Internal Revenue Code.

AB234,6,17 b. A qualified ex-felon, as defined in section 51 (d) (4) of the Internal Revenue Code.

AB234,6,19 c. An individual who is a vocational rehabilitation referral, as defined in section 51 (d) (6) of the Internal Revenue Code.

AB234,6,20 2. "Claimant" means a person who files a claim under this subsection.

AB234,7,2 3. "Youth employee" means an individual who is at least 16 years of age, but no more than 17 years of age, who is either a high school student or graduates from high school during the taxable year for which a credit is claimed under this subsection, and who is a member of a family whose Wisconsin taxable income is no more than 70 percent of the federal poverty line, as defined under 42 USC 9902 (2), for a family the size of the individual's family.

AB234,7,7 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the taxes imposed under s. 71.23, up to the amount of the taxes, any of the following amounts that the claimant paid in the taxable year to an individual whom the claimant hired in that taxable year, if the individual is employed in this state:

AB234,7,10 1. For taxable years beginning after December 31, 2008, but before January 1, 2010, 20 percent of the wages that the claimant paid to an adult employee, if the adult employee worked at least 400 hours in the taxable year, including paid leave.

AB234,7,15 2. For taxable years beginning after December 31, 2008, but before January 1, 2010, 20 percent of the wages that the claimant paid to an individual who is participating in a program administered by a local workforce development board in this state, as established under 29 USC 2832, if the individual worked at least 400 hours in the taxable year, including paid leave.

AB234,7,18 3. For taxable years beginning after December 31, 2009, 20 percent of the wages that the claimant paid to an adult employee, if the adult employee worked at least 1,560 hours in the taxable year, including paid leave.

AB234,7,23 4. For taxable years beginning after December 31, 2009, 20 percent of the wages that the claimant paid to an individual who is participating in a program administered by a local workforce development board in this state, as established under 29 USC 2832, if the individual worked at least 1,560 hours in the taxable year, including paid leave.

AB234,7,24 5. Fifty percent of the monthly wages paid to a youth employee.

AB234,8,3 (c) Limitations. 1. The maximum amount of the credit that a claimant may claim under par. (b) 1. and 3. in a taxable year shall not exceed an amount equal $2,500 for each adult employee described under par. (b) 1. and 3.

AB234,8,6 2. The maximum amount of the credits that may be claimed by all claimants under par. (b) 1. and 3. and ss. 71.07 (5c) (b) 1. and 3. and 71.47 (5c) (b) 1. and 3. in a calendar year is $6,000,000.

AB234,8,9 3. The maximum amount of the credit that a claimant may claim under par. (b) 2. and 4. in a taxable year shall not exceed an amount equal $2,000 for each employee described under par. (b) 2. and 4.

AB234,8,12 4. The maximum amount of the credits that may be claimed by all claimants under par. (b) 2. and 4. and ss. 71.07 (5c) (b) 2. and 4. and 71.47 (5c) (b) 2. and 4. in a calendar year is $3,000,000.

AB234,8,16 5. If an employee described in par. (b) 1. to 4. works for the claimant for less than 365 consecutive days, the amount of any credit that the claimant claimed under this subsection shall be paid to the department in the manner prescribed by the department.

AB234,8,21 6. The maximum amount of the credit that a claimant may claim under par. (b) 5. in the taxable year for a youth employee who works less than 35 hours a week during the taxable, including paid leave, year shall not exceed an amount equal to $200 for each such youth employee, multiplied by the number of months that the youth employee is employed by the claimant.

AB234,9,2 7. The maximum amount of the credit that a claimant may claim under par. (b) 5. in the taxable year for a youth employee who works 35 hours or more a week during the taxable year, including paid leave, shall not exceed an amount equal to $400 for each such youth employee, multiplied by the number of months that the youth employee is employed by the claimant.

AB234,9,5 8. The maximum amount of the credit that a claimant may claim under par. (b) 5. in a taxable year shall not exceed an amount equal $1,200 for each youth employee described under par. (b) 5.

AB234,9,8 9. The maximum amount of the credits that may be claimed by all claimants under par. (b) 5. and ss. 71.07 (5c) (b) 5. and 71.47 (5c) (b) 5. in a calendar year is $3,000,000.

AB234,9,16 10. 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 amounts 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.

AB234,9,18 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB234, s. 7 Section 7. 71.30 (3) (dr) of the statutes is created to read:

AB234,9,20 71.30 (3) (dr) Job opportunities credit under s. 71.28 (5c).

AB234, s. 8 Section 8. 71.34 (1k) (g) of the statutes, as affected by 2009 Wisconsin Act 2, is amended to read:

AB234,9,24 71.34 (1k) (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), (1dy), (3), (3g), (3h), (3n), (3p), (3r), (3t), (3w), (5c), (5e), (5f), (5g), (5h), (5i), (5j), and (5k) and passed through to shareholders.

AB234, s. 9 Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2009 Wisconsin Act 2, is amended to read:

AB234,10,11 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dy), (3h), (3n), (3p), (3r), (3w), (5c), (5e), (5f), (5g), (5h), (5i), (5j), and (5k) 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 (1k) (g) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4), and (5).

AB234, s. 10 Section 10. 71.47 (5c) of the statutes is created to read:

AB234,10,13 71.47 (5c) Job opportunities credit. (a) Definitions. In this subsection:

AB234,10,14 1. "Adult employee" means any of the following:

AB234,10,16 a. A qualified veteran, as defined in section 51 (d) (3) of the Internal Revenue Code.

AB234,10,18 b. A qualified ex-felon, as defined in section 51 (d) (4) of the Internal Revenue Code.

AB234,10,20 c. An individual who is a vocational rehabilitation referral, as defined in section 51 (d) (6) of the Internal Revenue Code.

AB234,10,21 2. "Claimant" means a person who files a claim under this subsection.

AB234,11,2 3. "Youth employee" means an individual who is at least 16 years of age, but no more than 17 years of age, who is either a high school student or graduates from high school during the taxable year for which a credit is claimed under this subsection, and who is a member of a family whose Wisconsin taxable income is no more than 70 percent of the federal poverty line, as defined under 42 USC 9902 (2), for a family the size of the individual's family.

AB234,11,7 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of the taxes, any of the following amounts that the claimant paid in the taxable year to an individual whom the claimant hired in that taxable year, if the individual is employed in this state: