SB52,8,521 2. No credit may be allowed under par. (b) 2. unless the claimant obtains
22written certification from a qualified postsecondary institution that the taxable
23income of the individual for whom the claimant has paid or incurred tuition during
24the taxable year for the individual to participate in an education program of the
25qualified postsecondary institution is not more than 185 percent of the poverty line

1and includes a copy of the certification with the claimant's return. For purposes of
2this subdivision and par. (b) 2., if an individual for whom the claimant has paid or
3incurred tuition is claimed as a dependent on another person's tax return, the
4individual's taxable income shall be the taxable income of the person on whose return
5the individual is claimed as a dependent.
SB52,8,86 3. No credit may be allowed under par. (b) unless the claimant certifies to the
7department of revenue that the claimant will not be reimbursed for any amount of
8tuition for which the claimant claims a credit under par. (b).
SB52,8,109 4. A claimant may not claim the credit under par. (b) for any tuition amounts
10that the claimant has excluded under section 127 of the Internal Revenue Code.
SB52,8,1311 5. A claimant may not claim the credit under par. (b) for any tuition amounts
12that the claimant paid or incurred for a family member of a managing employee
13unless all of the following apply:
SB52,8,1714 a. The family member was employed an average of at least 20 hours per week
15as an employee of the claimant, or the claimant's business, during the one-year
16period prior to commencing participation in the education program in connection
17with which the claimant claims a credit under par. (b).
SB52,8,1918 b. The family member is enrolled in a degree-granting program that is
19substantially related to the claimant's business.
SB52,8,2120 c. The family member is making satisfactory progress towards completing the
21degree-granting program under subd. 5. b.
SB52,8,2322 (d) Administration. 1. The carry-over provisions of sub. (4) (e) and (f), as they
23apply to the credit under sub. (4), apply to the credit under this subsection.
SB52,9,624 2. Partnerships, limited liability companies, and tax-option corporations may
25not claim the credit under this subsection, but the eligibility for, and the amount of,

1the credit are based on their payment of tuition under par. (b). A partnership, limited
2liability company, or tax-option corporation shall compute the amount of credit that
3each of its partners, members, or shareholders may claim and shall provide that
4information to each of them. Partners, members of limited liability companies, and
5shareholders of tax-option corporations may claim the credit in proportion to their
6ownership interest.
SB52,9,87 3. Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies
8to the credit under this subsection.
SB52,9,139 4. The department of revenue shall biennially submit a report to the legislature
10under s. 13.172 (2) that identifies each qualified postsecondary institution for which
11it has received written certification from a claimant under par. (c). The report shall
12specify the total amount of the tuition for each such institution that is claimed as a
13credit under this subsection in the previous biennium.
SB52, s. 7 14Section 7. 71.30 (3) (cd) of the statutes is created to read:
SB52,9,1515 71.30 (3) (cd) The education credit under s. 71.28 (5r).
SB52, s. 8 16Section 8. 71.34 (1k) (g) of the statutes is amended to read:
SB52,9,2017 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
18corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g),
19(3h), (3n), (3p), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k), and (5r) and passed
20through to shareholders.
SB52, s. 9 21Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:
SB52,9,2522 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
23computed under s. 71.47 (1dd) to (1dx), (3h), (3n), (3p), (3w), (5e), (5f), (5g), (5h), (5i),
24(5j), and (5k), and (5r) and not passed through by a partnership, limited liability
25company, or tax-option corporation that has added that amount to the partnership's,

1limited liability company's, or tax-option corporation's income under s. 71.21 (4) or
271.34 (1k) (g) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4), and
3(5).
SB52, s. 10 4Section 10. 71.47 (5r) of the statutes is created to read:
SB52,10,55 71.47 (5r) Education credit. (a) Definitions. In this subsection:
SB52,10,66 1. "Claimant" means a corporation that files a claim under this subsection.
SB52,10,87 2. "Degree-granting program" means an educational program for which an
8associate, a bachelor's, or a graduate degree is awarded upon successful completion.
SB52,10,99 3. "Family member" has the meaning given in s. 157.061 (7).
SB52,10,1210 4. "Managing employee" means an individual who wholly or partially exercises
11operational or managerial control over, or who directly or indirectly conducts, the
12operation of the claimant's business.
SB52,10,1413 5. "Paid or incurred" includes any amount paid by the claimant to reimburse
14an individual for the tuition that the individual paid or incurred.
SB52,10,1515 6. "Poverty line" has the meaning given in s. 49.001 (5).
SB52,10,1616 7. "Qualified postsecondary institution" means all of the following:
SB52,10,1917 a. A University of Wisconsin System institution, a technical college system
18institution, or a regionally accredited 4-year nonprofit college or university having
19its regional headquarters and principal place of business in this state.
SB52,10,2120 b. A school approved under s. 38.50, if the delivery of education occurs in this
21state.
SB52,10,2422 (b) Filing claims. Subject to the limitations provided in this subsection, a
23claimant may claim as a credit against the tax imposed under s. 71.43, up to the
24amount of the tax, an amount equal to the following:
SB52,11,4
11. Fifty percent of the tuition that the claimant paid or incurred during the
2taxable year for an individual to participate in an education program of a qualified
3postsecondary institution, if the individual was enrolled in a degree-granting
4program.
SB52,11,105 2. Seventy-five percent of the tuition that the claimant paid or incurred during
6the taxable year for an individual to participate in an education program of a
7qualified postsecondary institution, if the individual was enrolled in a
8degree-granting program and if the individual's taxable income in the year prior to
9commencing participation in the education program in connection with which a
10credit is claimed is not more than 185 percent of the poverty line.
SB52,11,1511 (c) Limitations. 1. No credit may be allowed under par. (b) unless the claimant
12obtains written certification from a qualified postsecondary institution concerning
13the amount of tuition paid or incurred during the taxable year for which the claimant
14is claiming a credit under this subsection and includes a copy of the certification with
15the claimant's return.
SB52,11,2516 2. No credit may be allowed under par. (b) 2. unless the claimant obtains
17written certification from a qualified postsecondary institution that the taxable
18income of the individual for whom the claimant has paid or incurred tuition during
19the taxable year for the individual to participate in an education program of the
20qualified postsecondary institution is not more than 185 percent of the poverty line
21and includes a copy of the certification with the claimant's return. For purposes of
22this subdivision and par. (b) 2., if an individual for whom the claimant has paid or
23incurred tuition is claimed as a dependent on another person's tax return, the
24individual's taxable income shall be the taxable income of the person on whose return
25the individual is claimed as a dependent.
SB52,12,3
13. No credit maybe allowed under par. (b) unless the claimant certifies to the
2department of revenue that the claimant will not be reimbursed for any amount of
3tuition for which the claimant claims a credit under par. (b).
SB52,12,54 4. A claimant may not claim the credit under par. (b) for any tuition amounts
5that the claimant excluded under section 127 of the Internal Revenue Code.
SB52,12,86 5. A claimant may not claim the credit under par. (b) for any tuition amounts
7that the claimant paid or incurred for a family member of a managing employee
8unless all of the following apply:
SB52,12,129 a. The family member was employed an average of at least 20 hours per week
10as an employee of the claimant, or the claimant's business, during the one-year
11period prior to commencing participation in the education program in connection
12with which the claimant claims a credit under par. (b).
SB52,12,1413 b. The family member is enrolled in a degree-granting program that is
14substantially related to the claimant's business.
SB52,12,1615 c. The family member is making satisfactory progress towards completing the
16degree-granting program under subd. 5. b.
SB52,12,1817 (d) Administration. 1. The carry-over provisions of s. 71.28 (4) (e) and (f), as
18they apply to the credit under s. 71.28 (4), apply to the credit under this subsection.
SB52,13,219 2. Partnerships, limited liability companies, and tax-option corporations may
20not claim the credit under this subsection, but the eligibility for, and the amount of,
21the credit are based on their payment of tuition under par. (b). A partnership, limited
22liability company, or tax-option corporation shall compute the amount of credit that
23each of its partners, members, or shareholders may claim and shall provide that
24information to each of them. Partners, members of limited liability companies, and

1shareholders of tax-option corporations may claim the credit in proportion to their
2ownership interest.
SB52,13,43 3. Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4),
4applies to the credit under this subsection.
SB52,13,95 4. The department of revenue shall biennially submit a report to the legislature
6under s. 13.172 (2) that identifies each qualified postsecondary institution for which
7it has received written certification from a claimant under par. (c). The report shall
8specify the total amount of the tuition for each such institution that is claimed as a
9credit under this subsection in the previous biennium.
SB52, s. 11 10Section 11. 71.49 (1) (cd) of the statutes is created to read:
SB52,13,1111 71.49 (1) (cd) The education credit under s. 71.47 (5r).
SB52, s. 12 12Section 12. 77.92 (4) of the statutes is amended to read:
SB52,14,313 77.92 (4) "Net business income," with respect to a partnership, means taxable
14income as calculated under section 703 of the Internal Revenue Code; plus the items
15of income and gain under section 702 of the Internal Revenue Code, including taxable
16state and municipal bond interest and excluding nontaxable interest income or
17dividend income from federal government obligations; minus the items of loss and
18deduction under section 702 of the Internal Revenue Code, except items that are not
19deductible under s. 71.21; plus guaranteed payments to partners under section 707
20(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
21(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3h), (3s), (3n), (3p), (3t), (3w), (5e),
22(5f), (5g), (5h), (5i), (5j), and (5k), and (5r); and plus or minus, as appropriate,
23transitional adjustments, depreciation differences, and basis differences under s.
2471.05 (13), (15), (16), (17), and (19); but excluding income, gain, loss, and deductions
25from farming. "Net business income," with respect to a natural person, estate, or

1trust, means profit from a trade or business for federal income tax purposes and
2includes net income derived as an employee as defined in section 3121 (d) (3) of the
3Internal Revenue Code.
SB52, s. 13 4Section 13. Initial applicability.
SB52,14,65 (1) Education credit. This act first applies to taxable years beginning on July
61, 2009.
SB52,14,77 (End)
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