LRB-4462/1
JK:jld:rs
2009 - 2010 LEGISLATURE
March 29, 2010 - Introduced by Representative Hixson. Referred to Committee on
Ways and Means.
AB909,1,4
1An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a) 4., 71.34 (1k) (g), 71.45
2(2) (a) 10. and 77.92 (4); and
to create 71.07 (5p), 71.10 (4) (ce), 71.28 (5p), 71.30
3(3) (ce), 71.47 (5p) and 71.49 (1) (ce) of the statutes;
relating to: an income and
4franchise tax credit for new small businesses that hire interns.
Analysis by the Legislative Reference Bureau
Under this bill, a new small business may claim an income and franchise tax
credit of $1,000 for hiring an intern. In order for the business to receive the credit,
the intern must be enrolled at a public or private postsecondary institution, work at
least 20 hours per week for one semester, and receive course credit for the internship.
A business may claim the credit only once. Under the bill, a new small business is
a business that employs no more than ten employees in this state and is organized
in this state on a date that is not more than 12 months from the date on which the
intern starts his or her employment.
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:
AB909,2,6
171.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
2(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s),
3(3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k),
(5p), and (8r) and not passed through by a
4partnership, limited liability company, or tax-option corporation that has added that
5amount to the partnership's, company's, or tax-option corporation's income under s.
671.21 (4) or 71.34 (1k) (g).
AB909, s. 2
7Section
2. 71.07 (5p) of the statutes is created to read:
AB909,2,98
71.07
(5p) New small business internship credit. (a)
Definitions. In this
9subsection:
AB909,2,1210
1. "Business" means any organization or enterprise operated for profit,
11including a proprietorship, partnership, firm, business trust, joint venture,
12syndicate, corporation, limited liability company, or association.
AB909,2,1313
2. "Claimant" means a person who files a claim under this subsection.
AB909,2,1414
3. "Course of instruction" has the meaning given in s. 38.50 (1) (c).
AB909,2,1515
4. "New small business" means a business for which all of the following apply:
AB909,2,1716
a. It employs no more than 10 employees in this state during the taxable year
17for which the claimant claims a credit under this subsection.
AB909,2,2018
b. It is organized in this state on a date that is not more than 12 months from
19the date on which an intern for which a credit is claimed under this subsection begins
20his or her employment with the business.
AB909,2,2121
5. "Qualified postsecondary institution" means all of the following:
AB909,2,2422
a. A University of Wisconsin System institution, a technical college system
23institution, or a regionally accredited 4-year nonprofit college or university having
24its regional headquarters and principal place of business in this state.
AB909,3,2
1b. A school approved under s. 38.50, if the delivery of education occurs in this
2state.
AB909,3,53
(b)
Filing claims. Subject to the limitations provided in this subsection, a
4claimant may claim as a credit against the tax imposed under s. 71.02, up to the
5amount of the tax, $1,000, if all of the following apply:
AB909,3,76
1. The claimant's new small business hires an intern during the taxable year
7for which the claimant files a claim under this subsection.
AB909,3,98
2. The intern is enrolled in a course of instruction at a qualified postsecondary
9institution.
AB909,3,1210
3. The intern works for the claimant's new small business at least 20 hours per
11week, on average, during a period that corresponds with at least one semester at the
12intern's qualified postsecondary institution.
AB909,3,1413
4. The intern receives course credit from the qualified postsecondary
14institution for the work done at the claimant's new small business.
AB909,3,1615
(c)
Limitations. 1. The maximum amount of the credit that a claimant may
16receive under this subsection is $1,000.
AB909,3,2417
2. Partnerships, limited liability companies, and tax-option corporations may
18not claim the credit under this subsection, but the eligibility for, and the amount of,
19the credit are based on their payment of amounts under par. (b). A partnership,
20limited liability company, or tax-option corporation shall compute the amount of
21credit that each of its partners, members, or shareholders may claim and shall
22provide that information to each of them. Partners, members of limited liability
23companies, and shareholders of tax-option corporations may claim the credit in
24proportion to their ownership interests.
AB909,4,2
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.
AB909, s. 3
3Section
3. 71.10 (4) (ce) of the statutes is created to read:
AB909,4,44
71.10
(4) (ce)
New small business internship credit under s. 71.07 (5p).
AB909,4,107
71.21
(4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
8(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s), (3t), (3w),
9(5e), (5f), (5g), (5h), (5i), (5j), (5k),
(5p), and (8r) and passed through to partners shall
10be added to the partnership's income.
AB909,4,1813
71.26
(2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
14(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3t),
15(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k),
(5p), and (8r) and not passed through by a
16partnership, limited liability company, or tax-option corporation that has added that
17amount to the partnership's, limited liability company's, or tax-option corporation's
18income under s. 71.21 (4) or 71.34 (1k) (g).
AB909, s. 6
19Section
6. 71.28 (5p) of the statutes is created to read:
AB909,4,2120
71.28
(5p) New small business internship credit. (a)
Definitions. In this
21subsection:
AB909,4,2422
1. "Business" means any organization or enterprise operated for profit,
23including a proprietorship, partnership, firm, business trust, joint venture,
24syndicate, corporation, limited liability company, or association.
AB909,4,2525
2. "Claimant" means a person who files a claim under this subsection.
AB909,5,1
13. "Course of instruction" has the meaning given in s. 38.50 (1) (c).
AB909,5,22
4. "New small business" means a business for which all of the following apply:
AB909,5,43
a. It employs no more than 10 employees in this state during the taxable year
4for which the claimant claims a credit under this subsection.
AB909,5,75
b. It is organized in this state on a date that is not more than 12 months from
6the date on which an intern for which a credit is claimed under this subsection begins
7his or her employment with the business.
AB909,5,88
5. "Qualified postsecondary institution" means all of the following:
AB909,5,119
a. A University of Wisconsin System institution, a technical college system
10institution, or a regionally accredited 4-year nonprofit college or university having
11its regional headquarters and principal place of business in this state.
AB909,5,1312
b. A school approved under s. 38.50, if the delivery of education occurs in this
13state.
AB909,5,1614
(b)
Filing claims. Subject to the limitations provided in this subsection, a
15claimant may claim as a credit against the tax imposed under s. 71.23, up to the
16amount of the tax, $1,000, if all of the following apply:
