LRB-5494/1
JK:skw
2021 - 2022 LEGISLATURE
March 10, 2022 - Introduced by Senator Jacque. Referred to Committee on Human
Services, Children and Families.
SB1101,1,4 1An Act to amend 71.05 (6) (a) 15., 71.21 (4) (a), 71.26 (2) (a) 4., 71.34 (1k) (g) and
271.45 (2) (a) 10.; and to create 71.07 (4p), 71.10 (4) (ft), 71.28 (4p), 71.30 (3) (dc),
371.47 (4p) and 71.49 (1) (dc) of the statutes; relating to: a pediatric cancer
4research tax credit.
Analysis by the Legislative Reference Bureau
This bill creates an income and franchise tax credit for contributions made by
a business entity to a pediatric cancer research institution. The bill requires the
institution to use the contribution exclusively and directly for pediatric cancer
research and defines a “pediatric cancer research institution” as a hospital located
in this state that is actively conducting pediatric cancer research, as certified by the
secretary of health services.
Under the bill, the maximum amount of the credit that an entity may claim in
any taxable year is $2,500,000. If the amount of the credit exceeds the entity's tax
liability, the entity does not receive a refund, but, instead, may claim the remaining,
unused credit against the entity's tax liability in subsequent years.
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:
SB1101,1
1Section 1. 71.05 (6) (a) 15. of the statutes is amended to read:
SB1101,2,72 71.05 (6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the
3credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t),
4(3w), (3wm), (3y), (4k), (4n), (4p), (5e), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and
5not passed through by a partnership, limited liability company, or tax-option
6corporation that has added that amount to the partnership's, company's, or
7tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
SB1101,2 8Section 2. 71.07 (4p) of the statutes is created to read:
SB1101,2,109 71.07 (4p) Pediatric cancer research credit. (a) Definitions. In this
10subsection:
SB1101,2,1311 1. “Claimant” means a sole proprietor, partner of a partnership, member of a
12limited liability company, or shareholder of a tax-option corporation who files a claim
13under this subsection.
SB1101,2,1614 2. “Pediatric cancer research institution” means a hospital located in this state
15that is actively conducting pediatric cancer research, as certified by the secretary of
16of health services.
SB1101,2,2017 (b) Filing claims. Subject to the limitations under this subsection, for taxable
18years beginning after December 31, 2021, a claimant may claim as a credit against
19the tax imposed under s. 71.02 the amount that the claimant paid in the taxable year
20as a contribution to a pediatric cancer research institution.
SB1101,3,421 (c) Limitations. 1. Partnerships, limited liability companies, and tax-option
22corporations may not claim the credit under this subsection, but the eligibility for,
23and the amount of, the credit are based on their payment of amounts under par. (b).
24A partnership, limited liability company, or tax-option corporation shall compute
25the amount of credit that each of its partners, members, or shareholders may claim

1and shall provide that information to each of them. Partners of partnerships,
2members of limited liability companies, and shareholders of tax-option corporations
3may claim the credit in proportion to their ownership interest or as specially
4allocated in their organizational documents.
SB1101,3,65 2. The maximum amount that a claimant may claim under this subsection for
6a taxable year is $2,500,000.
SB1101,3,873. No claimant may claim both a deduction under section 170 of the Internal
8Revenue Code and a credit under this subsection for the same contribution.
SB1101,3,109 (d) Administration. 1. Section 71.28 (4) (e) to (h), as it applies to the credit
10under s. 71.28 (4), applies to the credit under this subsection.
SB1101,3,1811 2. The secretary of health services, in consultation with the department of
12revenue, shall establish a program for certifying entities as eligible to receive
13contributions for purposes of the credit under this subsection. A pediatric cancer
14research institution that receives a contribution pursuant to this subsection shall
15use the contribution exclusively and directly for pediatric cancer research. A
16claimant shall indicate to the pediatric cancer research institution at the time of
17making the claimant's contribution that the claimant intends to claim the credit
18under this subsection for that contribution.
SB1101,3 19Section 3. 71.10 (4) (ft) of the statutes is created to read:
SB1101,3,2020 71.10 (4) (ft) Pediatric cancer research credit under s. 71.07 (4p).
SB1101,4 21Section 4. 71.21 (4) (a) of the statutes is amended to read:
SB1101,3,2522 71.21 (4) (a) The amount of the credits computed by a partnership under s.
2371.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n),
24(4p), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and passed through to
25partners shall be added to the partnership's income.
SB1101,5
1Section 5. 71.26 (2) (a) 4. of the statutes is amended to read:
SB1101,4,72 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
3(1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (4p), (5e), (5g), (5i), (5j), (5k),
4(5r), (5rm), (6n), (9s), and (10) and not passed through by a partnership, limited
5liability company, or tax-option corporation that has added that amount to the
6partnership's, limited liability company's, or tax-option corporation's income under
7s. 71.21 (4) or 71.34 (1k) (g).
SB1101,6 8Section 6. 71.28 (4p) of the statutes is created to read:
SB1101,4,109 71.28 (4p) Pediatric cancer research credit. (a) Definitions. In this
10subsection:
SB1101,4,1311 1. “Claimant” means a sole proprietor, partner of a partnership, member of a
12limited liability company, or shareholder of a tax-option corporation who files a claim
13under this subsection.
SB1101,4,1614 2. “Pediatric cancer research institution” means a hospital located in this state
15that is actively conducting pediatric cancer research, as certified by the secretary of
16health services.
SB1101,4,2017 (b) Filing claims. Subject to the limitations under this subsection, for taxable
18years beginning after December 31, 2021, a claimant may claim as a credit against
19the tax imposed under s. 71.23 the amount that the claimant paid in the taxable year
20as a contribution to a pediatric cancer research institution.
SB1101,5,421 (c) Limitations. 1. Partnerships, limited liability companies, and tax-option
22corporations may not claim the credit under this subsection, but the eligibility for,
23and the amount of, the credit are based on their payment of amounts under par. (b).
24A partnership, limited liability company, or tax-option corporation shall compute
25the amount of credit that each of its partners, members, or shareholders may claim

1and shall provide that information to each of them. Partners of partnerships,
2members of limited liability companies, and shareholders of tax-option corporations
3may claim the credit in proportion to their ownership interest or as specially
4allocated in their organizational documents.
SB1101,5,65 2. The maximum amount that a claimant may claim under this subsection for
6a taxable year is $2,500,000.
SB1101,5,873. No claimant may claim both a deduction under section 170 of the Internal
8Revenue Code and a credit under this subsection for the same contribution.
SB1101,5,109 (d) Administration. 1. Subsection (4) (e) to (h), as it applies to the credit under
10sub. (4), applies to the credit under this subsection.
SB1101,5,1811 2. The secretary of health services, in consultation with the department of
12revenue, shall establish a program for certifying entities as eligible to receive
13contributions for purposes of the credit under this subsection. A pediatric cancer
14research institution that receives a contribution pursuant to this subsection shall
15use the contribution exclusively and directly for pediatric cancer research. A
16claimant shall indicate to the pediatric cancer research institution at the time of
17making the claimant's contribution that the claimant intends to claim the credit
18under this subsection for that contribution.
SB1101,7 19Section 7. 71.30 (3) (dc) of the statutes is created to read:
SB1101,5,2020 71.30 (3) (dc) Pediatric cancer research credit under s. 71.28 (4p).
SB1101,8 21Section 8. 71.34 (1k) (g) of the statutes is amended to read:
SB1101,5,2522 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
23corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w),
24(3wm), (3y), (4), (4p), (5), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and passed
25through to shareholders.
SB1101,9
1Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:
SB1101,6,82 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
3computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3w), (3y), (4p), (5e), (5g),
4(5i), (5j), (5k), (5r), (5rm), (6n), (9s), and (10) and not passed through by a partnership,
5limited liability company, or tax-option corporation that has added that amount to
6the partnership's, limited liability company's, or tax-option corporation's income
7under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47
8(1), (3), (3t), (4), (4m), and (5).
SB1101,10 9Section 10. 71.47 (4p) of the statutes is created to read:
SB1101,6,1110 71.47 (4p) Pediatric cancer research credit. (a) Definitions. In this
11subsection:
SB1101,6,1412 1. “Claimant” means a sole proprietor, partner of a partnership, member of a
13limited liability company, or shareholder of a tax-option corporation who files a claim
14under this subsection.
SB1101,6,1715 2. “Pediatric cancer research institution” means a hospital located in this state
16that is actively conducting pediatric cancer research, as certified by the secretary of
17health services.
SB1101,6,2118 (b) Filing claims. Subject to the limitations under this subsection, for taxable
19years beginning after December 31, 2021, a claimant may claim as a credit against
20the tax imposed under s. 71.43 the amount that the claimant paid in the taxable year
21as a contribution to a pediatric cancer research institution.
SB1101,7,522 (c) Limitations. 1. Partnerships, limited liability companies, and tax-option
23corporations may not claim the credit under this subsection, but the eligibility for,
24and the amount of, the credit are based on their payment of amounts under par. (b).
25A partnership, limited liability company, or tax-option corporation shall compute

1the amount of credit that each of its partners, members, or shareholders may claim
2and shall provide that information to each of them. Partners of partnerships,
3members of limited liability companies, and shareholders of tax-option corporations
4may claim the credit in proportion to their ownership interest or as specially
5allocated in their organizational documents.
SB1101,7,76 2. The maximum amount that a claimant may claim under this subsection for
7a taxable year is $2,500,000.
SB1101,7,983. No claimant may claim both a deduction under section 170 of the Internal
9Revenue Code and a credit under this subsection for the same contribution.
SB1101,7,1110 (d) Administration. 1. Section 71.28 (4) (e) to (h), as it applies to the credit
11under s. 71.28 (4), applies to the credit under this subsection.
SB1101,7,1912 2. The secretary of health services, in consultation with the department of
13revenue, shall establish a program for certifying entities as eligible to receive
14contributions for purposes of the credit under this subsection. A pediatric cancer
15research institution that receives a contribution pursuant to this subsection shall
16use the contribution exclusively and directly for pediatric cancer research. A
17claimant shall indicate to the pediatric cancer research institution at the time of
18making the claimant's contribution that the claimant intends to claim the credit
19under this subsection for that contribution.
SB1101,11 20Section 11. 71.49 (1) (dc) of the statutes is created to read:
SB1101,7,2121 71.49 (1) (dc) Pediatric cancer research credit under s. 71.47 (4p).
SB1101,7,2222 (End)
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