JK:sbb&wlj:rs
2011 - 2012 LEGISLATURE
February 9, 2012 - Introduced by Senator Grothman, cosponsored by
Representatives Jacque, Kerkman, Fields, Bies, Brooks, Mursau, Spanbauer,
Stroebel, Pridemore
and Toles. Referred to Committee on Economic
Development and Veterans and Military Affairs.
SB448,1,4 1An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a) 4., 71.34 (1k) (g), 71.45
2(2) (a) 10. and 77.92 (4); and to create 71.07 (5p), 71.10 (4) (cs), 71.28 (5p), 71.30
3(3) (dr), 71.47 (5p) and 71.49 (1) (dr) of the statutes; relating to: an income tax
4and franchise tax credit for training apprentices.
Analysis by the Legislative Reference Bureau
This bill creates an income tax and franchise tax credit for an employer that
pays wages to an apprentice who is participating in a two-year to five-year
apprenticeship program in which the apprentice is receiving instruction leading to
qualification as a skilled journeyman in any of the five industrial manufacturing
trades; any of the five private sector service occupations; or any of the five
construction trades; with the most projected job openings for new entrants, as
determined by the Department of Workforce Development. The amount of the credit
is 5 percent of the wages paid to an apprentice in a taxable year, but cannot exceed
$1,400, except that, in the taxable year in which the apprentice completes the
apprenticeship program, the amount of the credit is 8 percent of the wages paid to
an apprentice, but cannot exceed $3,000. Generally, no employer may claim the
credit for taxable years beginning after December 31, 2014, if the number of
employers training apprentices does not increase by more than 40 percent from
January 1, 2012, to December 31, 2014.

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:
SB448, s. 1 1Section 1. 71.05 (6) (a) 15. of the statutes, as affected by 2011 Wisconsin Act
232
, is amended to read:
SB448,2,83 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
4(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
5(3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k), (5n), (5p), (5r), (5rm), and
6(8r) and not passed through by a partnership, limited liability company, or
7tax-option corporation that has added that amount to the partnership's, company's,
8or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
SB448, s. 2 9Section 2. 71.07 (5p) of the statutes is created to read:
SB448,2,1110 71.07 (5p) Industrial, service, and skilled trades apprenticeship credit. (a)
11Definitions. In this subsection:
SB448,2,2012 1. "Apprentice" means a person who participates in a 2-year to 5-year
13apprenticeship program, as determined and approved by the department of
14workforce development, in which the person receives instruction leading to
15qualification as a skilled journeyman in an industrial manufacturing trade,
16construction trade, or private sector service occupation, if the apprenticeship
17program provides instruction related to any of the 5 manufacturing trades; any of the
185 construction trades; or any of the 5 private sector service occupations; with the most
19projected job openings for new entrants, as determined by the department of
20workforce development.
SB448,3,3
12. "Claimant" means a person who files a claim under this subsection and who
2is a trades trainer, as determined and approved by the department of workforce
3development.
SB448,3,124 (b) Filing claims. Subject to the limitations provided in this subsection, for
5taxable years beginning after December 31, 2011, a claimant may claim as a credit
6against the taxes imposed under s. 71.02 an amount equal to 5 percent of the wages
7the claimant paid to an apprentice in the taxable year, but the amount of the credit
8may not exceed $1,400 for each apprentice, except that a claimant may claim as a
9credit against the taxes imposed under s. 71.02 an amount equal to 8 percent of the
10wages the claimant paid to an apprentice in the taxable year in which the apprentice
11completes an apprenticeship program, but the amount of the credit may not exceed
12$3,000 for each apprentice.
SB448,3,1513 (c) Limitations. 1. With respect to an apprentice who is employed in a full-time
14job as an apprentice, no person may claim a credit under this subsection and sub.
15(2dx) or (2dy) for the same job.
SB448,4,216 2. This subsection does not apply to taxable years that begin after December
1731, 2014, if the number of employers training apprentices in programs approved by
18the department of workforce development does not increase by more than 40 percent
19from January 1, 2012, to December 31, 2014, as determined by the department of
20workforce development, except that a claimant who has claimed a credit for an
21apprentice's wages in any taxable year beginning before January 1, 2015, may
22continue to claim a credit for the apprentice's wages in succeeding taxable years,
23until the apprentice completes the apprenticeship program. As soon as practicable
24after December 31, 2014, the department of workforce development shall certify to
25the department of revenue the number of employers training apprentices in

1approved programs on January 1, 2012, and the number of employers training
2apprentices in approved programs on December 31, 2014.
SB448,4,103 3. Partnerships, limited liability companies, and tax-option corporations may
4not claim the credit under this subsection, but the eligibility for, and the amount of,
5the credit are based on their payment of wages under par. (b). A partnership, limited
6liability company, or tax-option corporation shall compute the amount of credit that
7each of its partners, members, or shareholders may claim and shall provide that
8information to each of them. Partners, members of limited liability companies, and
9shareholders of tax-option corporations may claim the credit in proportion to their
10ownership interests.
SB448,4,1211 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
12s. 71.28 (4), applies to the credit under this subsection.
SB448, s. 3 13Section 3. 71.10 (4) (cs) of the statutes is created to read:
SB448,4,1514 71.10 (4) (cs) Industrial, service, and skilled trades apprenticeship credit under
15s. 71.07 (5p).
SB448, s. 4 16Section 4. 71.21 (4) of the statutes, as affected by 2011 Wisconsin Act 32, is
17amended to read:
SB448,4,2118 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
19(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s),
20(3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5p), (5r), (5rm), and (8r) and passed
21through to partners shall be added to the partnership's income.
SB448, s. 5 22Section 5. 71.26 (2) (a) 4. of the statutes, as affected by 2011 Wisconsin Act 32,
23is amended to read:
SB448,5,524 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
25(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r),

1(3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5p), (5r), (5rm), (8r),
2and (9s) and not passed through by a partnership, limited liability company, or
3tax-option corporation that has added that amount to the partnership's, limited
4liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k)
5(g).
SB448, s. 6 6Section 6. 71.28 (5p) of the statutes is created to read:
SB448,5,87 71.28 (5p) Industrial, service, and skilled trades apprenticeship credit. (a)
8Definitions. In this subsection:
SB448,5,179 1. "Apprentice" means a person who participates in a 2-year to 5-year
10apprenticeship program, as determined and approved by the department of
11workforce development, in which the person receives instruction leading to
12qualification as a skilled journeyman in an industrial manufacturing trade,
13construction trade, or private sector service occupation, if the apprenticeship
14program provides instruction related to any of the 5 manufacturing trades; any of the
155 construction trades; or any of the 5 private sector service occupations; with the most
16projected job openings for new entrants, as determined by the department of
17workforce development.
SB448,5,2018 2. "Claimant" means a person who files a claim under this subsection and who
19is a trades trainer, as determined and approved by the department of workforce
20development.
SB448,6,421 (b) Filing claims. Subject to the limitations provided in this subsection, for
22taxable years beginning after December 31, 2011, a claimant may claim as a credit
23against the taxes imposed under s. 71.23 an amount equal to 5 percent of the wages
24the claimant paid to an apprentice in the taxable year, but the amount of the credit
25may not exceed $1,400 for each apprentice, except that a claimant may claim as a

1credit against the taxes imposed under s. 71.23 an amount equal to 8 percent of the
2wages the claimant paid to an apprentice in the taxable year in which the apprentice
3completes an apprenticeship program, but the amount of the credit may not exceed
4$3,000 for each apprentice.
SB448,6,75 (c) Limitations. 1. With respect to an apprentice who is employed in a full-time
6job as an apprentice, no person may claim a credit under this subsection and sub.
7(1dx) or (1dy) for the same job.
SB448,6,198 2. This subsection does not apply to taxable years that begin after December
931, 2014, if the number of employers training apprentices in programs approved by
10the department of workforce development does not increase by more than 40 percent
11from January 1, 2012, to December 31, 2014, as determined by the department of
12workforce development, except that a claimant who has claimed a credit for an
13apprentice's wages in any taxable year beginning before January 1, 2015, may
14continue to claim a credit for the apprentice's wages in succeeding taxable years,
15until the apprentice completes the apprenticeship program. As soon as practicable
16after December 31, 2014, the department of workforce development shall certify to
17the department of revenue the number of employers training apprentices in
18approved programs on January 1, 2012, and the number of employers training
19apprentices in approved programs on December 31, 2014.
SB448,7,220 3. Partnerships, limited liability companies, and tax-option corporations may
21not claim the credit under this subsection, but the eligibility for, and the amount of,
22the credit are based on their payment of wages under par. (b). A partnership, limited
23liability company, or tax-option corporation shall compute the amount of credit that
24each of its partners, members, or shareholders may claim and shall provide that
25information 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 interests.
SB448,7,43 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
4sub. (4), applies to the credit under this subsection.
SB448, s. 7 5Section 7. 71.30 (3) (dr) of the statutes is created to read:
SB448,7,76 71.30 (3) (dr) The industrial, service, and skilled trades apprenticeship credit
7under s. 71.28 (5p).
SB448, s. 8 8Section 8. 71.34 (1k) (g) of the statutes, as affected by 2011 Wisconsin Act 32,
9is amended to read:
SB448,7,1310 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
11corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
12(3), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j),
13(5k), (5n), (5p), (5r), (5rm), and (8r) and passed through to shareholders.
SB448, s. 9 14Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2011 Wisconsin Act
1532
, is amended to read:
SB448,7,2216 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
17computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn),
18(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5p), (5r), (5rm), (8r), and (9s) and not
19passed through by a partnership, limited liability company, or tax-option
20corporation that has added that amount to the partnership's, limited liability
21company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and
22the amount of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).
SB448, s. 10 23Section 10. 71.47 (5p) of the statutes is created to read:
SB448,7,2524 71.47 (5p) Industrial, service, and skilled trades apprenticeship credit. (a)
25Definitions. In this subsection:
SB448,8,9
11. "Apprentice" means a person who participates in a 2-year to 5-year
2apprenticeship program, as determined and approved by the department of
3workforce development, in which the person receives instruction leading to
4qualification as a skilled journeyman in an industrial manufacturing trade,
5construction trade, or private sector service occupation, if the apprenticeship
6program provides instruction related to any of the 5 manufacturing trades; any of the
75 construction trades; or any of the 5 private sector service occupations; with the most
8projected job openings for new entrants, as determined by the department of
9workforce development.
SB448,8,1210 2. "Claimant" means a person who files a claim under this subsection and who
11is a trades trainer, as determined and approved by the department of workforce
12development.
SB448,8,2113 (b) Filing claims. Subject to the limitations provided in this subsection, for
14taxable years beginning after December 31, 2011, a claimant may claim as a credit
15against the taxes imposed under s. 71.43 an amount equal to 5 percent of the wages
16the claimant paid to an apprentice in the taxable year, but the amount of the credit
17may not exceed $1,400 for each apprentice, except that a claimant may claim as a
18credit against the taxes imposed under s. 71.43 an amount equal to 8 percent of the
19wages the claimant paid to an apprentice in the taxable year in which the apprentice
20completes an apprenticeship program, but the amount of the credit may not exceed
21$3,000 for each apprentice.
SB448,8,2422 (c) Limitations. 1. With respect to an apprentice who is employed in a full-time
23job as an apprentice, no person may claim a credit under this subsection and sub.
24(1dx) or (1dy) for the same job.
SB448,9,12
12. This subsection does not apply to taxable years that begin after December
231, 2014, if the number of employers training apprentices in programs approved by
3the department of workforce development does not increase by more than 40 percent
4from January 1, 2012, to December 31, 2014, as determined by the department of
5workforce development, except that a claimant who has claimed a credit for an
6apprentice's wages in any taxable year beginning before January 1, 2015, may
7continue to claim a credit for the apprentice's wages in succeeding taxable years,
8until the apprentice completes the apprenticeship program. As soon as practicable
9after December 31, 2014, the department of workforce development shall certify to
10the department of revenue the number of employers training apprentices in
11approved programs on January 1, 2012, and the number of employers training
12apprentices in approved programs on December 31, 2014.
SB448,9,2013 3. Partnerships, limited liability companies, and tax-option corporations may
14not claim the credit under this subsection, but the eligibility for, and the amount of,
15the credit are based on their payment of wages under par. (b). A partnership, limited
16liability company, or tax-option corporation shall compute the amount of credit that
17each of its partners, members, or shareholders may claim and shall provide that
18information to each of them. Partners, members of limited liability companies, and
19shareholders of tax-option corporations may claim the credit in proportion to their
20ownership interests.
SB448,9,2221 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
22s. 71.28 (4), applies to the credit under this subsection.
SB448, s. 11 23Section 11. 71.49 (1) (dr) of the statutes is created to read:
SB448,9,2524 71.49 (1) (dr) Industrial, service, and skilled trades apprenticeship credit
25under s. 71.47 (5p).
SB448, s. 12
1Section 12. 77.92 (4) of the statutes, as affected by 2011 Wisconsin Act 32, is
2amended to read:
SB448,10,183 77.92 (4) "Net business income," with respect to a partnership, means taxable
4income as calculated under section 703 of the Internal Revenue Code; plus the items
5of income and gain under section 702 of the Internal Revenue Code, including taxable
6state and municipal bond interest and excluding nontaxable interest income or
7dividend income from federal government obligations; minus the items of loss and
8deduction under section 702 of the Internal Revenue Code, except items that are not
9deductible under s. 71.21; plus guaranteed payments to partners under section 707
10(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
11(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
12(3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5p), (5r), (5rm),
13and (8r); and plus or minus, as appropriate, transitional adjustments, depreciation
14differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but
15excluding income, gain, loss, and deductions from farming. "Net business income,"
16with respect to a natural person, estate, or trust, means profit from a trade or
17business for federal income tax purposes and includes net income derived as an
18employee as defined in section 3121 (d) (3) of the Internal Revenue Code.
SB448,10,1919 (End)
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