AB641,10,1918 71.07 (5r) Postsecondary education credit. (a) Definitions. In this
19subsection:

AB641,10,2220 1. "Claimant" means a sole proprietor, a partner, a member of a limited liability
21company, or a shareholder of a tax-option corporation who files a claim under this
22subsection.

AB641,10,2323 2. "Course of instruction" has the meaning given in s. 38.50 (1) (c).

AB641,10,2424 3. "Family member" has the meaning given in s. 157.061 (7).

AB641,11,3

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14. "Managing employee" means an individual who wholly or partially exercises
2operational or managerial control over, or who directly or indirectly conducts, the
3operation of the claimant's business.

AB641,11,54 5. "Paid or incurred" includes any amount paid by the claimant to reimburse
5an individual for the tuition that the individual paid or incurred.

AB641,11,66 6. "Qualified postsecondary institution" means all of the following:

AB641,11,97 a. A University of Wisconsin System institution, a technical college system
8institution, or a regionally accredited 4-year nonprofit college or university having
9its regional headquarters and principal place of business in this state.

AB641,11,1110 b. A school approved under s. 38.50, if the delivery of education occurs in this
11state.

AB641,11,1412 (b) Filing claims. Subject to the limitations provided in this subsection, a
13claimant may claim as a credit against the tax imposed under s. 71.02 an amount
14equal to the following:

AB641,11,1815 1. Twenty-five percent of the tuition that the claimant paid or incurred for an
16individual to participate in an education program of a qualified postsecondary
17institution, if the individual was enrolled in a course of instruction and eligible for
18a grant from the Federal Pell Grant Program.

AB641,11,2419 2. Thirty percent of the tuition that the claimant paid or incurred for an
20individual to participate in an education program of a qualified postsecondary
21institution, if the individual was enrolled in a course of instruction that relates to a
22projected worker shortage in this state, as determined by the local workforce
23development boards established under 29 USC 2832, and if the individual was
24eligible for a grant from the Federal Pell Grant Program.

AB641,12,3

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1(c) Limitations. 1. No credit may be allowed under par. (b) unless the claimant
2certifies to the department of revenue that the claimant will not be reimbursed for
3any amount of tuition for which the claimant claims a credit under par. (b).

AB641,12,64 2. A claimant may not claim the credit under par. (b) for any tuition amounts
5that the individual described under par. (b) excluded under s. 71.05 (6) (b) 28. or
6under section 127 of the Internal Revenue Code.

AB641,12,97 3. A claimant may not claim the credit under par. (b) for any tuition amounts
8that the claimant paid or incurred for a family member of the claimant or for a family
9member of a managing employee unless all of the following apply:

AB641,12,1310 a. The family member was employed an average of at least 20 hours per week
11as an employee of the claimant, or the claimant's business, during the one-year
12period prior to commencing participation in the education program in connection
13with which the claimant claims a credit under par. (b).

AB641,12,1514 b. The family member is enrolled in a course of instruction that is substantially
15related to the claimant's business.

AB641,12,1716 3m. A claimant may not claim the credit under par. (b) for any tuition amounts
17that the claimant paid or incurred for an individual who is not a resident of this state.

AB641,12,2118 4. The claimant shall claim the credit for the taxable year in which the
19individual graduates from a course of instruction in an amount equal to the total
20amount the claimant paid or incurred under par. (b) for all taxable years in which
21the claimant paid or incurred such amounts related to that individual.

AB641,13,422 5. Partnerships, limited liability companies, and tax-option corporations may
23not claim the credit under this subsection, but the eligibility for, and the amount of,
24the credit are based on their payment of tuition under par. (b). A partnership, limited
25liability company, or tax-option corporation shall compute the amount of credit that

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1each of its partners, members, or shareholders may claim and shall provide that
2information to each of them. Partners, members of limited liability companies, and
3shareholders of tax-option corporations may claim the credit in proportion to their
4ownership interest.

AB641,13,65 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
6s. 71.28 (4), applies to the credit under this subsection.

AB641,13,88 71.10 (4) (cd) Postsecondary education credit under s. 71.07 (5r).

AB641,13,1411 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
12(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s), (3t), (3w),
13(5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), and (8r) and passed through to partners shall
14be added to the partnership's income.

AB641,13,2217 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
18(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3t),
19(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), and (8r) and not passed through by a
20partnership, limited liability company, or tax-option corporation that has added that
21amount to the partnership's, limited liability company's, or tax-option corporation's
22income under s. 71.21 (4) or 71.34 (1k) (g).

AB641,13,2524 71.28 (5r) Postsecondary education credit. (a) Definitions. In this
25subsection:

AB641,14,1

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11. "Claimant" means a corporation that files a claim under this subsection.

AB641,14,22 2. "Course of instruction" has the meaning given in s. 38.50 (1) (c).

AB641,14,33 3. "Family member" has the meaning given in s. 157.061 (7).

AB641,14,64 4. "Managing employee" means an individual who wholly or partially exercises
5operational or managerial control over, or who directly or indirectly conducts, the
6operation of the claimant's business.

AB641,14,87 5. "Paid or incurred" includes any amount paid by the claimant to reimburse
8an individual for the tuition that the individual paid or incurred.

AB641,14,99 6. "Qualified postsecondary institution" means all of the following:

AB641,14,1210 a. A University of Wisconsin System institution, a technical college system
11institution, or a regionally accredited 4-year nonprofit college or university having
12its regional headquarters and principal place of business in this state.

AB641,14,1413 b. A school approved under s. 38.50, if the delivery of education occurs in this
14state.

AB641,14,1715 (b) Filing claims. Subject to the limitations provided in this subsection, a
16claimant may claim as a credit against the tax imposed under s. 71.23 an amount
17equal to the following:

AB641,14,2118 1. Twenty-five percent of the tuition that the claimant paid or incurred for an
19individual to participate in an education program of a qualified postsecondary
20institution, if the individual was enrolled in a course of instruction and eligible for
21a grant from the Federal Pell Grant Program.

AB641,15,222 2. Thirty percent of the tuition that the claimant paid or incurred for an
23individual to participate in an education program of a qualified postsecondary
24institution, if the individual was enrolled in a course of instruction that relates to a
25projected worker shortage in this state, as determined by the local workforce

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1development boards established under 29 USC 2832, and if the individual was
2eligible for a grant from the Federal Pell Grant Program.

AB641,15,53 (c) Limitations. 1. No credit may be allowed under par. (b) unless the claimant
4certifies to the department of revenue that the claimant will not be reimbursed for
5any amount of tuition for which the claimant claims a credit under par. (b).

AB641,15,86 2. A claimant may not claim the credit under par. (b) for any tuition amounts
7that the individual described under par. (b) excluded under section 127 of the
8Internal Revenue Code.

AB641,15,119 3. A claimant may not claim the credit under par. (b) for any tuition amounts
10that the claimant paid or incurred for a family member of a managing employee
11unless all of the following apply:

AB641,15,1512 a. The family member was employed an average of at least 20 hours per week
13as an employee of the claimant, or the claimant's business, during the one-year
14period prior to commencing participation in the education program in connection
15with which the claimant claims a credit under par. (b).

AB641,15,1716 b. The family member is enrolled in a course of instruction that is substantially
17related to the claimant's business.

AB641,15,1918 3m. A claimant may not claim the credit under par. (b) for any tuition amounts
19that the claimant paid or incurred for an individual who is not a resident of this state.

AB641,15,2320 4. The claimant shall claim the credit for the taxable year in which the
21individual graduates from a course of instruction in an amount equal to the total
22amount the claimant paid or incurred under par. (b) for all taxable years in which
23the claimant paid or incurred such amounts related to that individual.

AB641,16,624 5. Partnerships, limited liability companies, and tax-option corporations may
25not claim the credit under this subsection, but the eligibility for, and the amount of,

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1the credit are based on their payment of tuition under par. (b). A partnership, limited
2liability company, or tax-option corporation shall compute the amount of credit that
3each of its partners, members, or shareholders may claim and shall provide that
4information to each of them. Partners, members of limited liability companies, and
5shareholders of tax-option corporations may claim the credit in proportion to their
6ownership interest.

AB641,16,87 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
8sub. (4), applies to the credit under this subsection.

AB641,16,1010 71.30 (3) (cd) Postsecondary education credit under s. 71.28 (5r).

AB641,16,1613 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
14corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
15(3), (3g), (3h), (3n), (3p), (3q), (3r), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r),
16and (8r) and passed through to shareholders.

AB641,16,2519 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
20computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3w), (5e), (5f),
21(5g), (5h), (5i), (5j), (5k), (5r), and (8r) and not passed through by a partnership,
22limited liability company, or tax-option corporation that has added that amount to
23the partnership's, limited liability company's, or tax-option corporation's income
24under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47
25(1), (3), (3t), (4), (4m), and (5).

AB641,17,32 71.47 (5r) Postsecondary education credit. (a) Definitions. In this
3subsection:

AB641,17,44 1. "Claimant" means a corporation that files a claim under this subsection.

AB641,17,55 2. "Course of instruction" has the meaning given in s. 38.50 (1) (c).

AB641,17,66 3. "Family member" has the meaning given in s. 157.061 (7).

AB641,17,97 4. "Managing employee" means an individual who wholly or partially exercises
8operational or managerial control over, or who directly or indirectly conducts, the
9operation of the claimant's business.

AB641,17,1110 5. "Paid or incurred" includes any amount paid by the claimant to reimburse
11an individual for the tuition that the individual paid or incurred.

AB641,17,1212 6. "Qualified postsecondary institution" means all of the following:

AB641,17,1513 a. A University of Wisconsin System institution, a technical college system
14institution, or a regionally accredited 4-year nonprofit college or university having
15its regional headquarters and principal place of business in this state.

AB641,17,1716 b. A school approved under s. 38.50, if the delivery of education occurs in this
17state.

AB641,17,2018 (b) Filing claims. Subject to the limitations provided in this subsection, a
19claimant may claim as a credit against the tax imposed under s. 71.43 an amount
20equal to the following:

AB641,17,2421 1. Twenty-five percent of the tuition that the claimant paid or incurred for an
22individual to participate in an education program of a qualified postsecondary
23institution, if the individual was enrolled in a course of instruction and eligible for
24a grant from the Federal Pell Grant Program.

AB641,18,6

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12. Thirty percent of the tuition that the claimant paid or incurred for an
2individual to participate in an education program of a qualified postsecondary
3institution, if the individual was enrolled in a course of instruction that relates to a
4projected worker shortage in this state, as determined by the local workforce
5development boards established under 29 USC 2832, and if the individual was
6eligible for a grant from the Federal Pell Grant Program.

AB641,18,97 (c) Limitations. 1. No credit maybe allowed under par. (b) unless the claimant
8certifies to the department of revenue that the claimant will not be reimbursed for
9any amount of tuition for which the claimant claims a credit under par. (b).

AB641,18,1210 2. A claimant may not claim the credit under par. (b) for any tuition amounts
11that the individual described under par. (b) excluded under section 127 of the
12Internal Revenue Code.

AB641,18,1513 3. A claimant may not claim the credit under par. (b) for any tuition amounts
14that the claimant paid or incurred for a family member of a managing employee
15unless all of the following apply:

AB641,18,1916 a. The family member was employed an average of at least 20 hours per week
17as an employee of the claimant, or the claimant's business, during the one-year
18period prior to commencing participation in the education program in connection
19with which the claimant claims a credit under par. (b).

AB641,18,2120 b. The family member is enrolled in a course of instruction that is substantially
21related to the claimant's business.

AB641,18,2322 3m. A claimant may not claim the credit under par. (b) for any tuition amounts
23that the claimant paid or incurred for an individual who is not a resident of this state.

AB641,19,224 4. The claimant shall claim the credit for the taxable year in which the
25individual graduates from a course of instruction in an amount equal to the total

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1amount the claimant paid or incurred under par. (b) for all taxable years in which
2the claimant paid or incurred such amounts related to that individual.

AB641,19,103 5. Partnerships, limited liability companies, and tax-option corporations may
4not claim the credit under this subsection, but the eligibility for, and the amount of,
5the credit are based on their payment of tuition under par. (b). A partnership, limited
6liability company, or tax-option corporation shall compute the amount of credit that
7each of its partners, members, or shareholders may claim and shall provide that
8information to each of them. Partners, members of limited liability companies, and
9shareholders of tax-option corporations may claim the credit in proportion to their
10ownership interest.

AB641,19,1211 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
12s. 71.28 (4), applies to the credit under this subsection.

AB641,19,1414 71.49 (1) (cd) Postsecondary education credit under s. 71.47 (5r).

AB641,20,717 77.92 (4) "Net business income," with respect to a partnership, means taxable
18income as calculated under section 703 of the Internal Revenue Code; plus the items
19of income and gain under section 702 of the Internal Revenue Code, including taxable
20state and municipal bond interest and excluding nontaxable interest income or
21dividend income from federal government obligations; minus the items of loss and
22deduction under section 702 of the Internal Revenue Code, except items that are not
23deductible under s. 71.21; plus guaranteed payments to partners under section 707
24(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
25(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s),

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1(3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), and (8r); and plus or minus, as
2appropriate, transitional adjustments, depreciation differences, and basis
3differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain,
4loss, and deductions from farming. "Net business income," with respect to a natural
5person, estate, or trust, means profit from a trade or business for federal income tax
6purposes and includes net income derived as an employee as defined in section 3121
7(d) (3) of the Internal Revenue Code.

AB641,20,18 9560.203 Targeted microloans. The department shall create a pilot program
10for making microloans from the appropriation under s. 20.143 (1) (c) at nominal
11interest rates for the creation of new businesses. The department shall designate 2
12areas of the state, one urban and one rural, that are affected by high unemployment.
13Only residents of the areas designated by the department are eligible for loans under
14this section, and the amount of a loan under this section may not exceed $25,000.
15The department shall partner with federal, state, regional, and local economic
16development entities to provide business training for applicants and borrowers
17under this section. The department may not make a loan under this section after
18July 31, 2013.

AB641,21,2021 560.205 (3) (d) Rules. The department of commerce, in consultation with the
22department of revenue, shall promulgate rules to administer this section. The rules
23shall further define "bona fide angel investment" for purposes of s. 71.07 (5d) (a) 1.
24The rules shall limit the aggregate amount of tax credits under s. 71.07 (5d) that may
25be claimed for investments in businesses certified under sub. (1) at $3,000,000 per

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1calendar year for calendar years beginning after December 31, 2004, and before
2January 1, 2008, $5,500,000 per calendar year for calendar years beginning after
3December 31, 2007, and before January 1, 2011 2010, $6,500,000 for calendar year
42010, and $18,000,000 $20,000,000 per calendar year for calendar years beginning
5after December 31, 2010, plus, for taxable years beginning after December 31, 2010,
6an additional $250,000 for tax credits that may be claimed for investments in
7nanotechnology businesses certified under sub. (1). The rules shall also limit the
8aggregate amount of the tax credits under ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and
976.638 that may be claimed for investments paid to fund managers certified under
10sub. (2) at $3,500,000 per calendar year for calendar years beginning after December
1131, 2004, and before January 1, 2008, $6,000,000 per calendar year for calendar
12years beginning after December 31, 2007, and before January 1, 2011 2010,
13$8,000,000 for calendar year 2010, and $18,500,000 $20,500,000 per calendar year
14for calendar years beginning after December 31, 2010, plus, for taxable years
15beginning after December 31, 2010, an additional $250,000 for tax credits that may
16be claimed for investments in nanotechnology businesses certified under sub. (1).
17The rules shall also provide that, for calendar years beginning after December 31,
182007, no person may receive a credit under ss. 71.07 (5b) and (5d), 71.28 (5b), 71.47
19(5b), or 76.638 unless the person's investment is kept in a certified business, or with
20a certified fund manager, for no less than 3 years.

AB641,22,722 560.27 (1) (c) Annually, beginning in fiscal year 2010-11, the department shall
23award a grant of $100,000 from the appropriation under s. 20.143 (1) (d) to the
24high-technology business development corporation. The department shall enter
25into an agreement with the high-technology business development corporation

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1requiring the grant proceeds to be used for employing a grant writer to assist
2businesses to apply for federal small business innovation research grants. The
3department shall submit annually to the legislature under s. 13.172 (2) a report
4detailing the number of grant applications assisted by the grant writer, the number
5of applications assisted by the grant writer that won grants and the total amount of
6the grants, and the number of any jobs created as a result of the grant writer's
7activities.

AB641,22,10 9560.276 Technology transfer grant and loan program. (1) Definitions.
10In this section: