LRB-2356/1
JK:kjf:md
2009 - 2010 LEGISLATURE
May 4, 2009 - Introduced by Senators Harsdorf and Taylor, cosponsored by
Representatives Townsend, LeMahieu, Nass, Spanbauer, A. Ott, Vos,
Gunderson, Lothian, Brooks and Knodl. Referred to Committee on Health,
Health Insurance, Privacy, Property Tax Relief, and Revenue.
SB187,1,5
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 (5n), 71.10 (4) (cr), 71.28 (5n), 71.30
3(3) (dr), 71.47 (5n) and 71.49 (1) (dr) of the statutes;
relating to: an income and
4franchise tax credit for wages paid to an employee who is deployed or called to
5active duty with the national guard or a reserve unit of the U.S. armed forces.
Analysis by the Legislative Reference Bureau
Under this bill, a taxpayer may claim an income and franchise tax credit in an
amount equal to 20 percent of the amount of wages that the taxpayer paid in the
taxable year to the taxpayer's employees who are members of the national guard or
a reserve unit of the U.S. armed forces and who, in the taxable year, are deployed or
called into active duty with the national guard or reserve unit. The maximum
amount of the credit that a taxpayer may claim in a taxable year is $10,000. If the
credit amount exceeds the amount of the taxpayer's tax liability, the taxpayer does
not receive a refund, but, instead, may carry forward the amount of the unused credit
to subsequent taxable 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:
SB187,2,83
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), (2dy), (3g), (3h), (3n), (3p), (3r), (3s), (3t),
5(3w), (5e), (5f), (5h), (5i), (5j),
and (5k)
, and (5n) and not passed through by a
6partnership, limited liability company, or tax-option corporation that has added that
7amount to the partnership's, company's, or tax-option corporation's income under s.
871.21 (4) or 71.34 (1k) (g).
SB187, s. 2
9Section
2. 71.07 (5n) of the statutes is created to read:
SB187,2,1110
71.07
(5n) Active duty employee credit. (a)
Definitions. In this subsection,
11"claimant" means a person who files a claim under this subsection.
SB187,2,1812
(b)
Filing claims. Subject to the limitations provided in this subsection, for
13taxable years beginning after December 31, 2008, a claimant may claim as a credit
14against the taxes imposed under s. 71.02, up to the amount of the taxes, 20 percent
15of the amount of wages that the claimant paid in the taxable year to the claimant's
16employees who are members of the national guard or a reserve unit of the U.S. armed
17forces and who, in the taxable year, are deployed or called into active duty with the
18national guard or reserve unit.
SB187,2,2019
(c)
Limitations. 1. The maximum amount of the credit that a claimant may
20claim under this subsection in a taxable year is $10,000.
SB187,3,321
2. Partnerships, limited liability companies, and tax-option corporations may
22not claim the credit under this subsection, but the eligibility for, and the amount of,
23the credit are based on their payment of amounts under par. (b). A partnership,
24limited liability company, or tax-option corporation shall compute the amount of
25credit that each of its partners, members, or shareholders may claim and shall
1provide that information to each of them. Partners, members of limited liability
2companies, and shareholders of tax-option corporations may claim the credit in
3proportion to their ownership interests.
SB187,3,54
(d)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
5s. 71.28 (4), applies to the credit under this subsection.
SB187, s. 3
6Section
3. 71.10 (4) (cr) of the statutes is created to read:
SB187,3,77
71.10
(4) (cr) Active duty employee credit under s. 71.07 (5n).
SB187,3,1310
71.21
(4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
11(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3r), (3s), (3t), (3w), (5e),
12(5f), (5g), (5h), (5i), (5j),
and (5k)
, and (5n) and passed through to partners shall be
13added to the partnership's income.
SB187,3,2116
71.26
(2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
17(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3r), (3t), (3w),
18(5e), (5f), (5g), (5h), (5i), (5j),
and (5k)
, and (5n) and not passed through by a
19partnership, limited liability company, or tax-option corporation that has added that
20amount to the partnership's, limited liability company's, or tax-option corporation's
21income under s. 71.21 (4) or 71.34 (1k) (g).
SB187, s. 6
22Section
6. 71.28 (5n) of the statutes is created to read:
SB187,3,2423
71.28
(5n) Active duty employee credit. (a)
Definitions. In this subsection,
24"claimant" means a person who files a claim under this subsection.
SB187,4,7
1(b)
Filing claims. Subject to the limitations provided in this subsection, for
2taxable years beginning after December 31, 2008, a claimant may claim as a credit
3against the taxes imposed under s. 71.23, up to the amount of the taxes, 20 percent
4of the amount of wages that the claimant paid in the taxable year to the claimant's
5employees who are members of the national guard or a reserve unit of the U.S. armed
6forces and who, in the taxable year, are deployed or called into active duty with the
7national guard or reserve unit.
SB187,4,98
(c)
Limitations. 1. The maximum amount of the credit that a claimant may
9claim under this subsection in a taxable year is $10,000.
SB187,4,1710
2. Partnerships, limited liability companies, and tax-option corporations may
11not claim the credit under this subsection, but the eligibility for, and the amount of,
12the credit are based on their payment of amounts under par. (b). A partnership,
13limited liability company, or tax-option corporation shall compute the amount of
14credit that each of its partners, members, or shareholders may claim and shall
15provide that information to each of them. Partners, members of limited liability
16companies, and shareholders of tax-option corporations may claim the credit in
17proportion to their ownership interests.
SB187,4,1918
(d)
Administration. Subsection (4) (e) to (h), as it applies to the credit under
19sub. (4), applies to the credit under this subsection.
SB187, s. 7
20Section
7. 71.30 (3) (dr) of the statutes is created to read:
SB187,4,2121
71.30
(3) (dr) Active duty employee credit under s. 71.28 (5n).
SB187,5,224
71.34
(1k) (g) An addition shall be made for credits computed by a tax-option
25corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
1(3), (3g), (3h), (3n), (3p), (3r), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j),
and (5k)
, and (5n) 2and passed through to shareholders.
SB187,5,115
71.45
(2) (a) 10. By adding to federal taxable income the amount of credit
6computed under s. 71.47 (1dd) to (1dy), (3h), (3n), (3p), (3r), (3w), (5e), (5f), (5g), (5h),
7(5i), (5j),
and (5k)
, and (5n) and not passed through by a partnership, limited liability
8company, or tax-option corporation that has added that amount to the partnership's,
9limited liability company's, or tax-option corporation's income under s. 71.21 (4) or
1071.34 (1k) (g) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4), and
11(5).
SB187, s. 10
12Section
10. 71.47 (5n) of the statutes is created to read:
SB187,5,1413
71.47
(5n) Active duty employee credit. (a)
Definitions. In this subsection,
14"claimant" means a person who files a claim under this subsection.
SB187,5,2115
(b)
Filing claims. Subject to the limitations provided in this subsection, for
16taxable years beginning after December 31, 2008, a claimant may claim as a credit
17against the taxes imposed under s. 71.43, up to the amount of the taxes, 20 percent
18of the amount of wages that the claimant paid in the taxable year to the claimant's
19employees who are members of the national guard or a reserve unit of the U.S. armed
20forces and who, in the taxable year, are deployed or called into active duty with the
21national guard or reserve unit.
SB187,5,2322
(c)
Limitations. 1. The maximum amount of the credit that a claimant may
23claim under this subsection in a taxable year is $10,000.
SB187,6,624
2. Partnerships, limited liability companies, and tax-option corporations may
25not claim the credit under this subsection, but the eligibility for, and the amount of,
1the credit are based on their payment of amounts under par. (b). A partnership,
2limited liability company, or tax-option corporation shall compute the amount of
3credit that each of its partners, members, or shareholders may claim and shall
4provide that information to each of them. Partners, members of limited liability
5companies, and shareholders of tax-option corporations may claim the credit in
6proportion to their ownership interests.
SB187,6,87
(d)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
8s. 71.28 (4), applies to the credit under this subsection.
SB187, s. 11
9Section
11. 71.49 (1) (dr) of the statutes is created to read:
SB187,6,1010
71.49
(1) (dr) Active duty employee credit under s. 71.47 (5n).
SB187,7,313
77.92
(4) "Net business income," with respect to a partnership, means taxable
14income as calculated under section
703 of the Internal Revenue Code; plus the items
15of income and gain under section
702 of the Internal Revenue Code, including taxable
16state and municipal bond interest and excluding nontaxable interest income or
17dividend income from federal government obligations; minus the items of loss and
18deduction under section
702 of the Internal Revenue Code, except items that are not
19deductible under s. 71.21; plus guaranteed payments to partners under section
707 20(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
21(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3r), (3s), (3t),
22(3w), (5e), (5f), (5g), (5h), (5i), (5j),
and (5k)
, and (5n); and plus or minus, as
23appropriate, transitional adjustments, depreciation differences, and basis
24differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain,
25loss, and deductions from farming. "Net business income," with respect to a natural
1person, estate, or trust, means profit from a trade or business for federal income tax
2purposes and includes net income derived as an employee as defined in section
3121 3(d) (3) of the Internal Revenue Code.
