SB1100: Bill Text

SB1100,19,19 71.07 (4s) Retirement plan startup costs tax credit. (a) Definitions. In this subsection:

SB1100,19,21 1. “Claimant” means an eligible employer, as defined in section 45E (c) of the Internal Revenue Code, that files a claim under this subsection.

SB1100,19,23 2. “First credit year” has the meaning given in section 45E (d) (3) of the Internal Revenue Code.

SB1100,19,25 3. “Qualified startup costs” has the meaning given in section 45E (d) (1) of the Internal Revenue Code.

SB1100,20,4 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the taxes imposed under s. 71.02, up to the amount of the tax, an amount equal to 50 percent of the qualified startup costs paid or incurred by the claimant during the taxable year.

SB1100,20,6 (c) Limitations. 1. The credit claimed under this subsection in a taxable year may not exceed the greater of the following:

SB1100,20,7 a. $500.

SB1100,20,10 b. The lesser of $250 for each employee of the claimant who is not a highly compensated employee, as defined in section 414 (q) of the Internal Revenue Code, or $5,000.

SB1100,20,12 2. The credit under this subsection may be claimed only for 3 consecutive taxable years beginning with the first credit year.

SB1100,20,14 3. The rules under section 45E (e) (1) and (3) of the Internal Revenue Code apply to the credit under this subsection.

SB1100,20,16 4. No credit may be claimed under this subsection for an amount that is deducted under section 162 of the Internal Revenue Code.

SB1100,20,24 5. A partnership, limited liability company, or tax-option corporation may not claim the credit under this subsection, but the partners, members, and shareholders may claim the credit based on the payments of the qualified startup costs by the partnership, limited liability company, or tax-option corporation. The partnership, limited liability company, or tax-option corporation shall calculate the amount of the credit that may be claimed by each partner, member, or shareholder and shall provide that information to each of them. The partners, members, and shareholders may claim the credit in proportion to their ownership interests.

SB1100,21,2 (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.

SB1100,10 Section 10 . 71.07 (4w) of the statutes is created to read:

SB1100,21,4 71.07 (4w) Auto-enrollment tax credit. (a) Definitions. In this subsection:

SB1100,21,8 1. “Claimant” means an eligible employer, as defined in section 408 (p) (2) (C) (i) of the Internal Revenue Code, that includes an eligible automatic contribution arrangement in a qualified employer plan that is sponsored by the claimant and that files a claim under this subsection.

SB1100,21,10 2. “Eligible automatic contribution arrangement” has the meaning given in section 414 (w) (3) of the Internal Revenue Code.

SB1100,21,12 3. “Qualified employer plan” has the meaning given in section 4972 (d) (1) of the Internal Revenue Code.

SB1100,21,15 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the taxes imposed under s. 71.02, up to the amount of the tax, $500.

SB1100,21,21 (c) Limitations. 1. The credit under this subsection may be claimed only for 3 consecutive taxable years beginning with the first taxable year for which the claimant includes an eligible automatic contribution arrangement in a qualified employer plan that is sponsored by the claimant, except that no credit may be claimed in a taxable year if an eligible automatic contribution arrangement is not included in the qualified employer plan for that taxable year.

SB1100,22,6 2. A partnership, limited liability company, or tax-option corporation may not claim the credit under this subsection, but the partners, members, and shareholders may claim the credit based on the inclusion by the partnership, limited liability company, or tax-option corporation of an eligible automatic contribution arrangement in a qualified employer plan that is sponsored by the partnership, limited liability company, or tax-option corporation. The partnership, limited liability company, or tax-option corporation shall calculate the amount of the credit that may be claimed by each partner, member, or shareholder and shall provide that information to each of them. The partners, members, and shareholders may claim the credit in proportion to their ownership interests.

SB1100,22,8 (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.

SB1100,11 Section 11 . 71.10 (4) (ct) and (cu) of the statutes are created to read:

SB1100,22,10 71.10 (4) (ct) Retirement plan startup costs tax credit under s. 71.07 (4s).

SB1100,22,11 (cu) Auto-enrollment tax credit under s. 71.07 (4w).

SB1100,12 Section 12 . 71.21 (4) (a) of the statutes is amended to read:

SB1100,22,16 71.21 (4) (a) The amount of the credits computed by a partnership under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (4s), (4w), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and passed through to partners shall be added to the partnership's income.

SB1100,13 Section 13 . 71.26 (2) (a) 4. of the statutes, as affected by 2021 Wisconsin Act 127, is amended to read:

SB1100,22,24 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm), (1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (4s), (4w), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (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).

SB1100,14 Section 14 . 71.28 (4s) of the statutes is created to read:

SB1100,23,2 71.28 (4s) Retirement plan startup costs tax credit. (a) Definitions. In this subsection:

SB1100,23,4 1. “Claimant” means an eligible employer, as defined in section 45E (c) of the Internal Revenue Code, that files a claim under this subsection.

SB1100,23,6 2. “First credit year” has the meaning given in section 45E (d) (3) of the Internal Revenue Code.

SB1100,23,8 3. “Qualified startup costs” has the meaning given in section 45E (d) (1) of the Internal Revenue Code.

SB1100,23,12 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the taxes imposed under s. 71.23, up to the amount of the tax, an amount equal to 50 percent of the qualified startup costs paid or incurred by the claimant during the taxable year.

SB1100,23,14 (c) Limitations. 1. The credit claimed under this subsection in a taxable year may not exceed the greater the following:

SB1100,23,15 a. $500.

SB1100,23,18 b. The lesser of $250 for each employee of the claimant who is not a highly compensated employee, as defined in section 414 (q) of the Internal Revenue Code, or $5,000.

SB1100,23,20 2. The credit under this subsection may be claimed only for 3 consecutive taxable years beginning with the first credit year.

SB1100,23,22 3. The rules under section 45E (e) (1) and (3) of the Internal Revenue Code apply to the credit under this subsection.

SB1100,23,24 4. No credit may be claimed under this subsection for an amount that is deducted under section 162 of the Internal Revenue Code.

SB1100,24,8 5. A partnership, limited liability company, or tax-option corporation may not claim the credit under this subsection, but the partners, members, and shareholders may claim the credit based on the payment of the qualified startup costs by the partnership, limited liability company, or tax-option corporation. The partnership, limited liability company, or tax-option corporation shall calculate the amount of the credit that may be claimed by each partner, member, or shareholder and shall provide that information to each of them. The partners, members, and shareholders may claim the credit in proportion to their ownership interests.

SB1100,24,10 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB1100,15 Section 15 . 71.28 (4w) of the statutes is created to read:

SB1100,24,12 71.28 (4w) Auto-enrollment tax credit. (a) Definitions. In this subsection:

SB1100,24,16 1. “Claimant” means an eligible employer, as defined in section 408 (p) (2) (C) (i) of the Internal Revenue Code, that includes an eligible automatic contribution arrangement in a qualified employer plan that is sponsored by the claimant and that files a claim under this subsection.

SB1100,24,18 2. “Eligible automatic contribution arrangement” has the meaning given in section 414 (w) (3) of the Internal Revenue Code.

SB1100,24,20 3. “Qualified employer plan” has the meaning given in section 4972 (d) (1) of the Internal Revenue Code.

SB1100,24,23 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the taxes imposed under s. 71.23, up to the amount of the tax, $500.

SB1100,25,4 (c) Limitations. 1. The credit under this subsection may be claimed only for 3 consecutive taxable years beginning with the first taxable year for which the claimant includes an eligible automatic contribution arrangement in a qualified employer plan that is sponsored by the claimant, except that no credit may be claimed in a taxable year if an eligible automatic contribution arrangement is not included in the qualified employer plan for that taxable year.

SB1100,25,14 2. A partnership, limited liability company, or tax-option corporation may not claim the credit under this subsection, but the partners, members, and shareholders may claim the credit based on the inclusion by the partnership, limited liability company, or tax-option corporation of an eligible automatic contribution arrangement in a qualified employer plan that is sponsored by the partnership, limited liability company, or tax-option corporation. The partnership, limited liability company, or tax-option corporation shall calculate the amount of the credit that may be claimed by each partner, member, or shareholder and shall provide that information to each of them. The partners, members, and shareholders may claim the credit in proportion to their ownership interests.

SB1100,25,16 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB1100,16 Section 16 . 71.30 (3) (ct) and (cu) of the statutes are created to read:

SB1100,25,18 71.30 (3) (ct) Retirement plan startup costs tax credit under s. 71.28 (4s).

SB1100,25,19 (cu) Auto-enrollment tax credit under s. 71.28 (4w).

SB1100,17 Section 17 . 71.34 (1k) (g) of the statutes is amended to read:

SB1100,25,24 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), (3q), (3t), (3w), (3wm), (3y), (4), (4s), (4w), (5), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and passed through to shareholders.

SB1100,18 Section 18. 71.45 (2) (a) 10. of the statutes, as affected by 2021 Wisconsin Act 127, is amended to read:

SB1100,26,9 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), (3q), (3w), (3y), (4s), (4w), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (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).

SB1100,19 Section 19 . 71.47 (4s) of the statutes is created to read:

SB1100,26,12 71.47 (4s) Retirement plan startup costs tax credit. (a) Definitions. In this subsection:

SB1100,26,14 1. “Claimant” means an eligible employer, as defined in section 45E (c) of the Internal Revenue Code, that files a claim under this subsection.

SB1100,26,16 2. “First credit year” has the meaning given in section 45E (d) (3) of the Internal Revenue Code.

SB1100,26,18 3. “Qualified startup costs” has the meaning given in section 45E (d) (1) of the Internal Revenue Code.

SB1100,26,22 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of the tax, an amount equal to 50 percent of the qualified startup costs paid or incurred by the claimant during the taxable year.

SB1100,26,24 (c) Limitations. 1. The credit claimed under this subsection in a taxable year may not exceed the greater the following:

SB1100,26,25 a. $500.

SB1100,27,3 b. The lesser of $250 for each employee of the claimant who is not a highly compensated employee, as defined in section 414 (q) of the Internal Revenue Code, or $5,000.

SB1100,27,5 2. The credit under this subsection may be claimed only for 3 consecutive taxable years beginning with the first credit year.

SB1100,27,7 3. The rules under section 45E (e) (1) and (3) of the Internal Revenue Code apply to the credit under this subsection.

SB1100,27,9 4. No credit may be claimed under this subsection for an amount that is deducted under section 162 of the Internal Revenue Code.

SB1100,27,17 5. A partnership, limited liability company, or tax-option corporation may not claim the credit under this subsection, but the partners, members, and shareholders may claim the credit based on the payment of the qualified startup costs by the partnership, limited liability company, or tax-option corporation. The partnership, limited liability company, or tax-option corporation shall calculate the amount of the credit that may be claimed by each partner, member, or shareholder and shall provide that information to each of them. The partners, members, and shareholders may claim the credit in proportion to their ownership interests.

SB1100,27,19 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB1100,20 Section 20 . 71.47 (4w) of the statutes is created to read:

SB1100,27,21 71.47 (4w) Auto-enrollment tax credit. (a) Definitions. In this subsection:

SB1100,27,25 1. “Claimant” means an eligible employer, as defined in section 408 (p) (2) (C) (i) of the Internal Revenue Code, that includes an eligible automatic contribution arrangement in a qualified employer plan that is sponsored by the claimant and that files a claim under this subsection.

SB1100,28,2 2. “Eligible automatic contribution arrangement” has the meaning given in section 414 (w) (3) of the Internal Revenue Code.

SB1100,28,4 3. “Qualified employer plan” has the meaning given in section 4972 (d) (1) of the Internal Revenue Code.

SB1100,28,7 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of the tax, $500.

SB1100,28,13 (c) Limitations. 1. The credit under this subsection may be claimed only for 3 consecutive taxable years beginning with the first taxable year for which the claimant includes an eligible automatic contribution arrangement in a qualified employer plan that is sponsored by the claimant, except that no credit may be claimed in a taxable year if an eligible automatic contribution arrangement is not included in the qualified employer plan for that taxable year.

SB1100,28,23 2. A partnership, limited liability company, or tax-option corporation may not claim the credit under this subsection, but the partners, members, and shareholders may claim the credit based on the inclusion by the partnership, limited liability company, or tax-option corporation of an eligible automatic contribution arrangement in a qualified employer plan that is sponsored by the partnership, limited liability company, or tax-option corporation. The partnership, limited liability company, or tax-option corporation shall calculate the amount of the credit that may be claimed by each partner, member, or shareholder and shall provide that information to each of them. The partners, members, and shareholders may claim the credit in proportion to their ownership interests.

SB1100,28,25 (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.

SB1100,21 Section 21. 71.49 (1) (ct) and (cu) of the statutes are created to read:

SB1100,29,2 71.49 (1) (ct) Start-up retirement plan costs tax credit under s. 71.47 (4s).

SB1100,29,3 (cu) Auto-enrollment tax credit under s. 71.47 (4w).

SB1100,22 Section 22. 230.08 (2) (en) of the statutes is created to read:

SB1100,29,5 230.08 (2) (en) State treasurer; WisEARNS board: executive director and staff.

SB1100,23 Section 23 . Initial applicability.

SB1100,29,13 (1) Tax credits. The treatment of ss. 71.05 (6) (a) 15., 71.07 (4s) and (4w), 71.10 (4) (ct) and (cu), 71.21 (4) (a), 71.26 (2) (a) 4., 71.28 (4s) and (4w), 71.30 (3) (ct) and (cu), 71.34 (1k) (g), 71.45 (2) (a) 10., 71.47 (4s) and (4w), and 71.49 (1) (ct) and (cu) first applies to taxable years beginning on January 1 of the year in which this subsection takes effect, except that if this subsection takes effect after July 31, this act first applies to taxable years beginning on January 1 of the year following the year in which this subsection takes effect.