SE1 AB5: Bill Text

September 2011 Special Session

2011 - 2012 LEGISLATURE

Assembly BILL 5

October 11, 2011 - Introduced by Committee on Assembly Organization, by request of Governor Scott Walker, Representative Murtha, Senators Moulton and Lassa. Referred to Committee on Health.

AB5,1,5 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 (8s), 71.10 (4) (cf), 71.28 (8s), 71.30 (3) (cf), 71.47 (8s), 71.49 (1) (cf) and 73.16 of the statutes; relating to: an income and franchise tax credit for workplace wellness programs, granting rule-making authority, and requiring the exercise of rule-making authority.

Analysis by the Legislative Reference Bureau

This bill creates an income and franchise tax credit for workplace wellness programs. The amount of the credit is equal to 30 percent of the amount that an employer pays in the taxable year to provide a workplace wellness program to any of the employer's employees who are employed in this state. A workplace wellness program is a health or fitness program, as defined by administrative rule by the Department of Revenue, that is provided with health risk assessments.

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:

AB5, s. 1 Section 1. 71.05 (6) (a) 15. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB5,2,6 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), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), and (8r), and (8s) 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).

AB5, s. 2 Section 2. 71.07 (8s) of the statutes is created to read:

AB5,2,9 71.07 (8s) Workplace wellness program credit. (a) Definitions. In this subsection:

AB5,2,10 1. "Claimant" means a person who files a claim under this subsection.

AB5,2,15 2. "Health risk assessment" means a computer-based health-promotion tool consisting of a questionnaire; a biometric health screening to measure vital health statistics, including blood pressure, cholesterol, glucose, weight, and height; a formula for estimating health risks; an advice database; and a means to generate reports.

AB5,2,18 3. "Workplace wellness program" means a health or fitness program certified under s. 73.16 (3), and includes health risk assessments and one or more of the following programs or services:

AB5,2,19 a. Smoking cessation.

AB5,2,20 b. Weight management.

AB5,2,21 c. Stress management.

AB5,2,22 d. Worker injury prevention programs.

AB5,2,23 e. Health screenings.

AB5,2,24 f. Nutrition education.

AB5,2,25 g. Health or fitness incentive programs.

AB5,3,1 h. Vaccinations.

AB5,3,2 i. Employee physical examinations.

AB5,3,9 (b) Filing claims. Subject to the limitations provided in this subsection and s. 73.16, a claimant may claim as a credit against the taxes imposed under s. 71.02, up to the amount of those taxes, in each taxable year for 3 years, an amount that is equal to 30 percent of the amount that the claimant paid in the taxable year to provide a workplace wellness program to any of the claimant's employees who are employed in this state, not including any amount paid to acquire, construct, rehabilitate, remodel, or repair real property.

AB5,3,14 (c) Limitations. 1. Except as provided in s. 73.16 (2), the maximum amount of the credits that may be claimed under this subsection and ss. 71.28 (8s) and 71.47 (8s) in any taxable year is $2,500,000 for all claimants who employ 50 or fewer employees in the taxable year and $2,500,000 for all claimants who employ more than 50 employees in the taxable year.

AB5,3,22 2. 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.

AB5,3,24 (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.

AB5, s. 3 Section 3. 71.10 (4) (cf) of the statutes is created to read:

AB5,4,1 71.10 (4) (cf) Workplace wellness program credit under s. 71.07 (8s).

AB5, s. 4 Section 4. 71.21 (4) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB5,4,7 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), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), and (8r), and (8s) and passed through to partners shall be added to the partnership's income.

AB5, s. 5 Section 5. 71.26 (2) (a) 4. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB5,4,16 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), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (8r), (8s), and (9s) 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).

AB5, s. 6 Section 6. 71.28 (8s) of the statutes is created to read:

AB5,4,19 71.28 (8s) Workplace wellness program credit. (a) Definitions. In this subsection:

AB5,4,20 1. "Claimant" means a person who files a claim under this subsection.

AB5,4,25 2. "Health risk assessment" means a computer-based health-promotion tool consisting of a questionnaire; a biometric health screening to measure vital health statistics, including blood pressure, cholesterol, glucose, weight, and height; a formula for estimating health risks; an advice database; and a means to generate reports.

AB5,5,3 3. "Workplace wellness program" means a health or fitness program certified under s. 73.16 (3), and includes health risk assessments and one or more of the following programs or services:

AB5,5,4 a. Smoking cessation.

AB5,5,5 b. Weight management.

AB5,5,6 c. Stress management.

AB5,5,7 d. Worker injury prevention programs.

AB5,5,8 e. Health screenings.

AB5,5,9 f. Nutrition education.

AB5,5,10 g. Health or fitness incentive programs.

AB5,5,11 h. Vaccinations.

AB5,5,12 i. Employee physical examinations.

AB5,5,19 (b) Filing claims. Subject to the limitations provided in this subsection and s. 73.16, a claimant may claim as a credit against the taxes imposed under s. 71.23, up to the amount of those taxes, in each taxable year for 3 years, an amount that is equal to 30 percent of the amount that the claimant paid in the taxable year to provide a workplace wellness program to any of the claimant's employees who are employed in this state, not including any amount paid to acquire, construct, rehabilitate, remodel, or repair real property.

AB5,5,24 (c) Limitations. 1. Except as provided in s. 73.16 (2), the maximum amount of the credits that may be claimed under this subsection and ss. 71.07 (8s) and 71.47 (8s) in any taxable year is $2,500,000 for all claimants who employ 50 or fewer employees in the taxable year and $2,500,000 for all claimants who employ more than 50 employees in the taxable year.

AB5,6,8 2. 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.

AB5,6,10 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB5, s. 7 Section 7. 71.30 (3) (cf) of the statutes is created to read:

AB5,6,12 71.30 (3) (cf) Workplace wellness program credit under s. 71.28 (8s).

AB5, s. 8 Section 8. 71.34 (1k) (g) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB5,6,18 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), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), and (8r), and (8s) and passed through to shareholders.

AB5, s. 9 Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB5,7,2 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (8r), (8s), and (9s) 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), (4m), and (5).

AB5, s. 10 Section 10. 71.47 (8s) of the statutes is created to read:

AB5,7,5 71.47 (8s) Workplace wellness program credit. (a) Definitions. In this subsection:

AB5,7,6 1. "Claimant" means a person who files a claim under this subsection.

AB5,7,11 2. "Health risk assessment" means a computer-based health-promotion tool consisting of a questionnaire; a biometric health screening to measure vital health statistics, including blood pressure, cholesterol, glucose, weight, and height; a formula for estimating health risks; an advice database; and a means to generate reports.

AB5,7,14 3. "Workplace wellness program" means a health or fitness program certified under s. 73.16 (3), and includes health risk assessments and one or more of the following programs or services:

AB5,7,15 a. Smoking cessation.

AB5,7,16 b. Weight management.

AB5,7,17 c. Stress management.

AB5,7,18 d. Worker injury prevention programs.

AB5,7,19 e. Health screenings.

AB5,7,20 f. Nutrition education.

AB5,7,21 g. Health or fitness incentive programs.

AB5,7,22 h. Vaccinations.

AB5,7,23 i. Employee physical examinations.

AB5,8,5 (b) Filing claims. Subject to the limitations provided in this subsection and s. 73.16, a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of those taxes, in each taxable year for 3 years, an amount that is equal to 30 percent of the amount that the claimant paid in the taxable year to provide a workplace wellness program to any of the claimant's employees who are employed in this state, not including any amount paid to acquire, construct, rehabilitate, remodel, or repair real property.

AB5,8,10 (c) Limitations. 1. Except as provided in s. 73.16 (2), the maximum amount of the credits that may be claimed under this subsection and ss. 71.07 (8s) and 71.28 (8s) in any taxable year is $2,500,000 for all claimants who employ 50 or fewer employees in the taxable year and $2,500,000 for all claimants who employ more than 50 employees in the taxable year.

AB5,8,18 2. 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.

AB5,8,20 (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.

AB5, s. 11 Section 11. 71.49 (1) (cf) of the statutes is created to read:

AB5,8,22 71.49 (1) (cf) Workplace wellness program credit under s. 71.47 (8s).

AB5, s. 12 Section 12. 73.16 of the statutes is created to read:

AB5,9,2 73.16 Workplace wellness programs. (1) The department of revenue and the department of health services shall implement a program to certify workplace wellness programs developed by a business or independent provider as described under ss. 71.07 (8s), 71.28 (8s), and 71.47 (8s).

AB5,9,13 (2) If the department of health services certifies a workplace wellness program under sub. (1), the department of revenue shall determine the amount of workplace wellness program credits to allocate to the business providing the workplace wellness program. The total amount of workplace wellness program credits allocated to businesses in any year may not exceed $5,000,000. In any year, the department of revenue may not allocate more than $2,500,000 in credits to businesses with more than 50 employees, and may not allocate more than $2,500,000 in credits to businesses with 50 or fewer employees, except that the department may increase the allocation to businesses with 50 or fewer employees by the amount of any credits the department is not able to allocate to businesses with 50 or more employees.