SE1 AB5: Bill Text

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.

AB5,9,15 (3) The department of revenue and the department of health services shall promulgate rules to administer this section.

AB5, s. 13 Section 13. 77.92 (4) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB5,9,25 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), (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 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.

AB5, s. 14 Section 14. Initial applicability.

AB5,10,10 (1) This act first applies to taxable years beginning on January 1, 2012.

AB5,10,11 (End)