SB14: Bill Text

LRB-0203/1

JK:amn

2019 - 2020 LEGISLATURE

2019 Senate BILL 14

January 29, 2019 - Introduced by Senators Feyen, Darling and Nass, cosponsored by Representatives Rohrkaste, Gundrum, Horlacher, Kulp, Ramthun, Rodriguez and Skowronski. Referred to Committee on Agriculture, Revenue and Financial Institutions.

SB14,1,4 An Act to amend 71.05 (6) (a) 15., 71.10 (4) (i), 71.21 (4) (a), 71.26 (2) (a) 4., 71.30 (3) (f), 71.34 (1k) (g), 71.45 (2) (a) 10. and 71.49 (1) (f); and to create 20.835 (2) (cq), 71.07 (5p), 71.28 (5p) and 71.47 (5p) of the statutes; relating to: an income and franchise tax credit for paid interns and making an appropriation.

Analysis by the Legislative Reference Bureau

This bill allows a person to claim an income and franchise tax credit equal to $2,500 for each intern who performs work in this state for the person and for whom the person provides compensation for performing the work. No person may claim the credit for more than 40 interns in any taxable year. If the amount of the credit exceeds the person's tax liability, the person receives a refund of the excess amount.

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:

SB14,1 Section 1. 20.835 (2) (cq) of the statutes is created to read:

SB14,1,7 20.835 (2) (cq) Paid intern credit. A sum sufficient to make the payments under ss. 71.07 (5p), 71.28 (5p), and 71.47 (5p).

SB14,2 Section 2. 71.05 (6) (a) 15. of the statutes is amended to read:

SB14,2,8 71.05 (6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5e), (5f), (5h), (5i), (5j), (5k), (5p), (5r), (5rm), (6n), (8r), and (10) 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).

SB14,3 Section 3. 71.07 (5p) of the statutes is created to read:

SB14,2,10 71.07 (5p) Paid intern credit. (a) Definitions. In this subsection:

SB14,2,11 1. “Claimant” means a person who files a claim under this subsection.

SB14,2,16 2. “Intern” means a student or trainee who is employed in this state by the claimant for at least 8 weeks, but not more than 52 weeks, not including a migrant worker, as defined in s. 103.90 (5), or an individual employed by a seasonal employer, as defined in s. 108.02 (23), or by a temporary help company, as defined in s. 108.02 (24m).

SB14,2,21 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2018, a claimant may claim as a credit against the tax imposed under s. 71.02 an amount equal to $2,500 for each intern who performs works in this state for the claimant during the taxable year and for whom the claimant provides compensation to perform such work.

SB14,2,23 (c) Limitations. 1. No claimant may claim the credit under this subsection for more than 40 interns in any taxable year.

SB14,3,6 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 described 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.

SB14,3,8 (d) Administration. 1. Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB14,3,14 2. If the allowable amount of the claim under this subsection exceeds the taxes otherwise due on the claimant's income under s. 71.02, the amount of the claim that is not used to offset those taxes shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation under s. 20.835 (2) (cq). Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subdivision.

SB14,4 Section 4. 71.10 (4) (i) of the statutes is amended to read:

SB14,4,6 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief credit under s. 71.07 (3m), dairy manufacturing facility investment credit under s. 71.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment credit under s. 71.07 (3r), woody biomass harvesting and processing credit under s. 71.07 (3rm), food processing plant and food warehouse investment credit under s. 71.07 (3rn), business development credit under s. 71.07 (3y), research credit under s. 71.07 (4k) (e) 2. a., film production services credit under s. 71.07 (5f), film production company investment credit under s. 71.07 (5h), paid intern credit under s. 71.07 (5p), veterans and surviving spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s. 71.07 (3w), electronics and information technology manufacturing zone credit under s. 71.07 (3wm), beginning farmer and farm asset owner tax credit under s. 71.07 (8r), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

SB14,5 Section 5. 71.21 (4) (a) of the statutes is amended to read:

SB14,4,11 71.21 (4) (a) The amount of the credits computed by a partnership under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5p), (5r), (5rm), (6n), (8r), and (10) and passed through to partners shall be added to the partnership's income.

SB14,6 Section 6. 71.26 (2) (a) 4. of the statutes is amended to read:

SB14,4,18 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (3wm), (3y), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5p), (5r), (5rm), (6n), (8r), (9s), and (10) 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).

SB14,7 Section 7. 71.28 (5p) of the statutes is created to read:

SB14,4,20 71.28 (5p) Paid intern credit. (a) Definitions. In this subsection:

SB14,4,21 1. “Claimant” means a person who files a claim under this subsection.

SB14,5,2 2. “Intern” means a student or trainee who is employed in this state by the claimant for at least 8 weeks, but not more than 52 weeks, not including a migrant worker, as defined in s. 103.90 (5), or an individual employed by a seasonal employer, as defined in s. 108.02 (23), or by a temporary help company, as defined in s. 108.02 (24m).

SB14,5,7 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2018, a claimant may claim as a credit against the tax imposed under s. 71.23 an amount equal to $2,500 for each intern who performs works in this state for the claimant during the taxable year and for whom the claimant provides compensation to perform such work.

SB14,5,9 (c) Limitations. 1. No claimant may claim the credit under this subsection for more than 40 interns in any taxable year.

SB14,5,17 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 described 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.

SB14,5,19 (d) Administration. 1. Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB14,5,25 2. If the allowable amount of the claim under this subsection exceeds the taxes otherwise due on the claimant's income under s. 71.23, the amount of the claim that is not used to offset those taxes shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation under s. 20.835 (2) (cq). Notwithstanding s. 71.82, no interest shall be paid on amounts certified under this subdivision.

SB14,8 Section 8. 71.30 (3) (f) of the statutes is amended to read:

SB14,6,13 71.30 (3) (f) The total of farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.28 (2m), dairy manufacturing facility investment credit under s. 71.28 (3p), jobs credit under s. 71.28 (3q), meat processing facility investment credit under s. 71.28 (3r), woody biomass harvesting and processing credit under s. 71.28 (3rm), food processing plant and food warehouse investment credit under s. 71.28 (3rn), enterprise zone jobs credit under s. 71.28 (3w), electronics and information technology manufacturing zone credit under s. 71.28 (3wm), business development credit under s. 71.28 (3y), research credit under s. 71.28 (4) (k) 1., film production services credit under s. 71.28 (5f), film production company investment credit under s. 71.28 (5h), paid intern credit under s. 71.28 (5p), beginning farmer and farm asset owner tax credit under s. 71.28 (8r), and estimated tax payments under s. 71.29.

SB14,9 Section 9. 71.34 (1k) (g) of the statutes is amended to read:

SB14,6,18 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (3wm), (3y), (4), (5), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5p), (5r), (5rm), (6n), (8r), and (10) and passed through to shareholders.

SB14,10 Section 10. 71.45 (2) (a) 10. of the statutes is amended to read:

SB14,7,2 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3w), (3y), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5p), (5r), (5rm), (6n), (8r), (9s), and (10) 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).

SB14,11 Section 11. 71.47 (5p) of the statutes is created to read:

SB14,7,4 71.47 (5p) Paid intern credit. (a) Definitions. In this subsection:

SB14,7,5 1. “Claimant” means a person who files a claim under this subsection.

SB14,7,10 2. “Intern” means a student or trainee who is employed in this state by the claimant for at least 8 weeks, but not more than 52 weeks, not including a migrant worker, as defined in s. 103.90 (5), or an individual employed by a seasonal employer, as defined in s. 108.02 (23), or by a temporary help company, as defined in s. 108.02 (24m).

SB14,7,15 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2018, a claimant may claim as a credit against the tax imposed under s. 71.43 an amount equal to $2,500 for each intern who performs works in this state for the claimant during the taxable year and for whom the claimant provides compensation to perform such work.