LRB-3991/2
JK:bjk:nwn
2007 - 2008 LEGISLATURE
February 28, 2008 - Introduced by Representatives Davis, Kramer, Albers,
Jeskewitz, F. Lasee, Montgomery, Musser, Strachota, Tauchen, Vos, Vukmir
and Ballweg, cosponsored by Senators Schultz, Darling, Leibham and
Roessler. Referred to Committee on Health and Healthcare Reform.
AB894,1,5
1An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a), 71.34 (1) (g), 71.45 (2)
2(a) 10. and 77.92 (4); and
to create 71.07 (5n), 71.10 (4) (cr), 71.28 (5n), 71.30
3(3) (dr), 71.47 (5n), 71.49 (1) (dr), 73.03 (64) and 180.0121 (3) of the statutes;
4relating to: an income and franchise tax credit for providing health care
5benefits under a cafeteria plan.
Analysis by the Legislative Reference Bureau
This bill creates an income and franchise tax credit for employers who create
certain health care benefit plans (known as "cafeteria plans" under federal law) for
their employees. The credit is $200 and may be claimed for the taxable year in which
the employer creates the cafeteria plan. The bill also requires the Department of
Revenue to include with its income and franchise tax forms information about
cafeteria plans. In addition, the Department of Financial Institutions (DFI) must
provide information regarding cafeteria plans to each entity that submits articles of
incorporation with DFI.
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:
AB894,2,83
71.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
4(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3h), (3n), (3p), (3s), (3t), (3w), (5e),
5(5f), (5h), (5i), (5j),
and (5k)
, and (5n) and not passed through by a partnership,
6limited liability company, or tax-option corporation that has added that amount to
7the partnership's, company's, or tax-option corporation's income under s. 71.21 (4)
8or 71.34 (1) (g).
AB894, s. 2
9Section
2. 71.07 (5n) of the statutes is created to read:
AB894,2,1010
71.07
(5n) Cafeteria plan credit. (a)
Definitions. In this subsection:
AB894,2,1211
1. "Cafeteria plan" means a benefits plan described under section
125 of the
12Internal Revenue Code.
AB894,2,1313
2. "Claimant" means a person who files a claim under this subsection.
AB894,2,1714
(b)
Filing claims. Subject to the limitations provided in this subsection, a
15claimant may claim as a credit against the taxes imposed under s. 71.02, up to the
16amount of the taxes, $200 for the taxable year in which the claimant establishes a
17cafeteria plan for the claimant's employees.
AB894,2,2518
(c)
Limitations. Partnerships, limited liability companies, and tax-option
19corporations may not claim the credit under this subsection, but the eligibility for,
20and the amount of, the credit are based on providing the cafeteria plan as described
21under par. (b). A partnership, limited liability company, or tax-option corporation
22shall compute the amount of credit that each of its partners, members, or
23shareholders may claim and shall provide that information to each of them.
24Partners, members of limited liability companies, and shareholders of tax-option
25corporations may claim the credit in proportion to their ownership interests.
AB894,3,2
1(d)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
2s. 71.28 (4), applies to the credit under this subsection.
AB894, s. 3
3Section
3. 71.10 (4) (cr) of the statutes is created to read:
AB894,3,44
71.10
(4) (cr) Cafeteria plan credit under s. 71.07 (5n).
AB894,3,107
71.21
(4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
8(2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3h), (3n), (3p), (3s), (3t), (3w), (5e), (5f), (5g),
9(5h), (5i), (5j),
and (5k)
, and (5n) and passed through to partners shall be added to
10the partnership's income.
AB894,4,513
71.26
(2) (a)
Corporations in general. The "net income" of a corporation means
14the gross income as computed under the Internal Revenue Code as modified under
15sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
16computed under s. 71.28 (1), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c)
177., the amount of the credit under s. 71.28 (3) that the taxpayer added to income
18under this paragraph at the time that the taxpayer first claimed the credit plus the
19amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm),
20(1ds), (1dx), (3g), (3h), (3n), (3p), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j),
and (5k)
, and
21(5n) and not passed through by a partnership, limited liability company, or
22tax-option corporation that has added that amount to the partnership's, limited
23liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1)
24(g) plus the amount of losses from the sale or other disposition of assets the gain from
25which would be wholly exempt income, as defined in sub. (3) (L), if the assets were
1sold or otherwise disposed of at a gain and minus deductions, as computed under the
2Internal Revenue Code as modified under sub. (3), plus or minus, as appropriate, an
3amount equal to the difference between the federal basis and Wisconsin basis of any
4asset sold, exchanged, abandoned, or otherwise disposed of in a taxable transaction
5during the taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).
AB894, s. 6
6Section
6. 71.28 (5n) of the statutes is created to read:
AB894,4,77
71.28
(5n) Cafeteria plan credit. (a)
Definitions. In this subsection:
AB894,4,98
1. "Cafeteria plan" means a benefits plan described under section
125 of the
9Internal Revenue Code.
AB894,4,1010
2. "Claimant" means a person who files a claim under this subsection.
AB894,4,1411
(b)
Filing claims. Subject to the limitations provided in this subsection, a
12claimant may claim as a credit against the taxes imposed under s. 71.23, up to the
13amount of the taxes, $200 for the taxable year in which the claimant establishes a
14cafeteria plan for the claimant's employees.
AB894,4,2215
(c)
Limitations. Partnerships, limited liability companies, and tax-option
16corporations may not claim the credit under this subsection, but the eligibility for,
17and the amount of, the credit are based on providing the cafeteria plan as described
18under par. (b). A partnership, limited liability company, or tax-option corporation
19shall compute the amount of credit that each of its partners, members, or
20shareholders may claim and shall provide that information to each of them.
21Partners, members of limited liability companies, and shareholders of tax-option
22corporations may claim the credit in proportion to their ownership interests.
AB894,4,2423
(d)
Administration. Subsection (4) (e) to (h), as it applies to the credit under
24sub. (4), applies to the credit under this subsection.
AB894, s. 7
25Section
7. 71.30 (3) (dr) of the statutes is created to read:
AB894,5,1
171.30
(3) (dr) Cafeteria plan credit under s. 71.28 (5n).
AB894,5,74
71.34
(1) (g) An addition shall be made for credits computed by a tax-option
5corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g),
6(3h), (3n), (3p), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j),
and (5k)
, and (5n) and passed
7through to shareholders.
AB894,5,1610
71.45
(2) (a) 10. By adding to federal taxable income the amount of credit
11computed under s. 71.47 (1dd) to (1dx), (3h), (3n), (3p), (3w), (5e), (5f), (5g), (5h), (5i),
12(5j),
and (5k)
, and (5n) and not passed through by a partnership, limited liability
13company, or tax-option corporation that has added that amount to the partnership's,
14limited liability company's, or tax-option corporation's income under s. 71.21 (4) or
1571.34 (1) (g) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4), and
16(5).
AB894, s. 10
17Section
10. 71.47 (5n) of the statutes is created to read:
AB894,5,1818
71.47
(5n) Cafeteria plan credit. (a)
Definitions. In this subsection:
AB894,5,2019
1. "Cafeteria plan" means a benefits plan described under section
125 of the
20Internal Revenue Code.
AB894,5,2121
2. "Claimant" means a person who files a claim under this subsection.
AB894,5,2522
(b)
Filing claims. Subject to the limitations provided in this subsection, a
23claimant may claim as a credit against the taxes imposed under s. 71.43, up to the
24amount of the taxes, $200 for the taxable year in which the claimant establishes a
25cafeteria plan for the claimant's employees.
AB894,6,8
1(c)
Limitations. Partnerships, limited liability companies, and tax-option
2corporations may not claim the credit under this subsection, but the eligibility for,
3and the amount of, the credit are based on providing the cafeteria plan as described
4under par. (b). A partnership, limited liability company, or tax-option corporation
5shall compute the amount of credit that each of its partners, members, or
6shareholders may claim and shall provide that information to each of them.
7Partners, members of limited liability companies, and shareholders of tax-option
8corporations may claim the credit in proportion to their ownership interests.
AB894,6,109
(d)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
10s. 71.28 (4), applies to the credit under this subsection.
AB894, s. 11
11Section
11. 71.49 (1) (dr) of the statutes is created to read:
AB894,6,1212
71.49
(1) (dr) Cafeteria plan credit under s. 71.47 (5n).
AB894, s. 12
13Section
12. 73.03 (64) of the statutes is created to read:
AB894,6,1714
73.03
(64) To include information regarding the creation of cafeteria plans
15under
26 USC 125, and the tax benefits related to such plans under
26 USC 125 and
16ss. 71.07 (5n), 71.28 (5n), and 71.47 (5n), with income and franchise tax forms
17published by the department.
