LRB-2557/1
MES:sac:jm
2013 - 2014 LEGISLATURE
August 23, 2013 - Introduced by Representatives Kolste, Jorgensen, Wachs,
Goyke, Hebl, Mason, Bernard Schaber, Shankland, Sinicki, Berceau,
Zepnick, Richards, Wright, Smith, Doyle, C. Taylor, Young, Kahl, Ohnstad,
Milroy and Billings, cosponsored by Senator T. Cullen. Referred to Joint
Committee on Finance.
AB303,1,3
1An Act to create 71.07 (5u) and 71.10 (4) (cg) of the statutes;
relating to:
2creating a nonrefundable individual income tax credit for interest paid on
3certain student loans.
Analysis by the Legislative Reference Bureau
This bill creates a nonrefundable individual income tax credit for interest
payments paid by a claimant on a loan that is used for the claimant's educational
expenses. Under the bill, the credit may be claimed for any amount of interest paid
by the claimant on a loan, the proceeds of which are used to pay for tuition, fees,
books, room and board, and educational supplies that are directly related to the
claimant's attendance at a regionally accredited, nonprofit, postsecondary
educational institution.
The maximum amount of credits that may be claimed each year is $15,000,000.
The bill requires the department of revenue to create a procedure to ensure that this
limit is not exceeded.
Because the credit is nonrefundable, it may be claimed only up to the amount
of a claimant's income tax liability. The credit may not be claimed by nonresidents
or part-year residents of this state.
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:
AB303,1
1Section
1. 71.07 (5u) of the statutes is created to read:
AB303,2,22
71.07
(5u) Student interest tax credit. (a)
Definitions. In this subsection:
AB303,2,33
1. "Claimant" means an individual who files a claim under this subsection.
AB303,2,74
2. "Educational interest expenses" means any amount of interest paid on a
5loan, the proceeds of which are used to pay for tuition, fees, books, room and board,
6and educational supplies that are directly related to the claimant's attendance at an
7eligible educational institution, as defined in s. 18.81 (2).
AB303,2,118
(b)
Filing claims. Subject to the limitations provided in this subsection, a
9claimant may claim as a credit against the tax imposed under s. 71.02, up to the
10amount of those taxes, the amount that the claimant pays for educational interest
11expenses in the year to which the claim relates.
AB303,2,1312
(c)
Limitations. 1. No credit may be allowed under this subsection unless it
13is claimed within the time period under s. 71.75 (2).
AB303,2,1514
2. No credit may be claimed under this subsection by a part-year resident or
15a nonresident of this state.
AB303,2,1816
3. The maximum amount of the credits that may be claimed under this section
17in any fiscal year is $15,000,000. The department shall create a procedure to ensure
18that the limit specified in this subdivision is not exceeded.
AB303,2,2019
(d)
Administration. Subsection (9e) (d), to the extent that it applies to the credit
20under that subsection, applies to the credit under this subsection.
AB303,2
21Section
2. 71.10 (4) (cg) of the statutes is created to read:
AB303,2,2222
71.10
(4) (cg) The educational interest expenses tax credit under s. 71.07 (5u).
AB303,3
23Section
3.
Initial applicability.
AB303,3,3
24(1) Student interest tax credit. This act first applies to taxable years
25beginning on January 1 of the year in which this subsection takes effect, except that
1if this subsection takes effect after July 31 this act first applies to taxable years
2beginning on January 1 of the year following the year in which this subsection takes
3effect.
