LRB-3170/2
JK:cjs:rs
2013 - 2014 LEGISLATURE
December 6, 2013 - Introduced by Representatives Smith, Barca, Kahl,
Jorgensen, Hebl, Doyle, Pope, Johnson, Sinicki, Vruwink, Berceau,
Wright, Ringhand, Goyke, Bies, Kaufert, Billings, Wachs and Bewley,
cosponsored by Senators Erpenbach, Schultz and Lassa. Referred to
Committee on Small Business Development.
AB538,1,6
1An Act to amend 71.07 (3q) (b) 1., 71.28 (3q) (b) 1., 71.47 (3q) (b) 1. and 238.16
2(4) (b) 1. (intro.); and
to create 71.07 (3q) (a) 3m., 71.07 (3q) (b) 1m., 71.07 (3q)
3(c) 1m., 71.28 (3q) (a) 3m., 71.28 (3q) (b) 1m., 71.28 (3q) (c) 1m., 71.47 (3q) (a)
43m., 71.47 (3q) (b) 1m., 71.47 (3q) (c) 1m., 238.16 (1) (cm), 238.16 (4) (b) 1m. and
5238.16 (4) (d) of the statutes;
relating to: modifying the jobs credit to provide
6an increased credit to small businesses.
Analysis by the Legislative Reference Bureau
Under current law, a person who undertakes certain business activities in this
state may claim the jobs tax credit in an amount not to exceed 10 percent of the wages
paid to eligible full-time employees in this state. The total amount of the credit may
not exceed $10,000 per eligible employee. Under this bill, a person who operates a
small business in this state may claim the jobs tax credit in an amount not to exceed
15 percent of the wages paid to eligible full-time employees in this state. The total
amount of the credit may not exceed $10,000 per eligible employee. Under the bill,
a "small business" is defined as a business entity that is independently owned and
operated and not dominant in its field, and that employs 25 or fewer eligible
employees or that has gross annual sales of less than $5,000,000.
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:
AB538,1
1Section
1. 71.07 (3q) (a) 3m. of the statutes is created to read:
AB538,2,22
71.07
(3q) (a) 3m. "Small business" has the meaning given in s. 227.114 (1).
AB538,2
3Section
2. 71.07 (3q) (b) 1. of the statutes is amended to read:
AB538,2,84
71.07
(3q) (b) 1.
The Except as provided under subd. 1m., the amount of wages
5that the claimant paid to an eligible employee in the taxable year, not to exceed 10
6percent of such wages, as determined by the Wisconsin Economic Development
7Corporation under s. 238.16 or the department of commerce under s. 560.2055, 2009
8stats.
AB538,3
9Section
3. 71.07 (3q) (b) 1m. of the statutes is created to read:
AB538,2,1410
71.07
(3q) (b) 1m. For taxable years beginning after December 31, 2013, the
11amount of wages that the claimant paid in the taxable year to an eligible employee
12employed at the claimant's small business, not to exceed 15 percent of such wages,
13as determined by the Wisconsin Economic Development Corporation under s.
14238.16.
AB538,4
15Section
4. 71.07 (3q) (c) 1m. of the statutes is created to read:
AB538,2,1816
71.07
(3q) (c) 1m. A claimant who claims the credit under par. (b) 1m. may not
17claim the credit under par. (b) 1. for wages paid to the same eligible employee in the
18same taxable year.
AB538,5
19Section
5. 71.28 (3q) (a) 3m. of the statutes is created to read:
AB538,2,2020
71.28
(3q) (a) 3m. "Small business" has the meaning given in s. 227.114 (1).
AB538,6
21Section
6. 71.28 (3q) (b) 1. of the statutes is amended to read:
AB538,3,3
171.28
(3q) (b) 1.
The Except as provided under subd. 1m., the amount of wages
2that the claimant paid to an eligible employee in the taxable year, not to exceed 10
3percent of such wages, as determined under s. 238.16 or s. 560.2055, 2009 stats.
AB538,7
4Section
7. 71.28 (3q) (b) 1m. of the statutes is created to read:
AB538,3,95
71.28
(3q) (b) 1m. For taxable years beginning after December 31, 2013, the
6amount of wages that the claimant paid in the taxable year to an eligible employee
7employed at the claimant's small business, not to exceed 15 percent of such wages,
8as determined by the Wisconsin Economic Development Corporation under s.
9238.16.
AB538,8
10Section
8. 71.28 (3q) (c) 1m. of the statutes is created to read:
AB538,3,1311
71.28
(3q) (c) 1m. A claimant who claims the credit under par. (b) 1m. may not
12claim the credit under par. (b) 1. for wages paid to the same eligible employee in the
13same taxable year.
AB538,9
14Section
9. 71.47 (3q) (a) 3m. of the statutes is created to read:
AB538,3,1515
71.47
(3q) (a) 3m. "Small business" has the meaning given in s. 227.114 (1).
AB538,10
16Section
10. 71.47 (3q) (b) 1. of the statutes is amended to read:
AB538,3,1917
71.47
(3q) (b) 1.
The Except as provided under subd. 1m., the amount of wages
18that the claimant paid to an eligible employee in the taxable year, not to exceed 10
19percent of such wages, as determined under s. 238.16 or s. 560.2055, 2009 stats.
AB538,11
20Section
11. 71.47 (3q) (b) 1m. of the statutes is created to read:
AB538,3,2521
71.47
(3q) (b) 1m. For taxable years beginning after December 31, 2013, the
22amount of wages that the claimant paid in the taxable year to an eligible employee
23employed at the claimant's small business, not to exceed 15 percent of such wages,
24as determined by the Wisconsin Economic Development Corporation under s.
25238.16.
AB538,12
1Section
12. 71.47 (3q) (c) 1m. of the statutes is created to read:
AB538,4,42
71.47
(3q) (c) 1m. A claimant who claims the credit under par. (b) 1m. may not
3claim the credit under par. (b) 1. for wages paid to the same eligible employee in the
4same taxable year.
AB538,13
5Section
13. 238.16 (1) (cm) of the statutes is created to read:
AB538,4,66
238.16
(1) (cm) "Small business" has the meaning given in s. 227.114 (1).
AB538,4,139
238.16
(4) (b) 1. (intro.)
The Except as provided under subd. 1m., the 10corporation may award to a person certified under sub. (2) tax benefits for each
11eligible employee in an amount equal to up to 10 percent of the wages paid by the
12person to that employee or $10,000, whichever is less, if that employee earned wages
13in the year for which the tax benefit is claimed equal to one of the following:
AB538,15
14Section
15. 238.16 (4) (b) 1m. of the statutes is created to read:
AB538,4,1915
238.16
(4) (b) 1m. The corporation may award to a person certified under sub.
16(2) tax benefits for each eligible employee employed at the person's small business
17in an amount equal to up to 15 percent of the wages paid by the person to that
18employee or $10,000, whichever is less, if that employee earned wages in the year for
19which the tax benefit is claimed equal to one of the following:
AB538,4,2120
a. In a tier I county or municipality, at least the amount determined by
21multiplying 2,080 by 150 percent of the federal minimum wage.
AB538,4,2222
b. In a tier II county or municipality, at least $30,000.
AB538,16
23Section
16. 238.16 (4) (d) of the statutes is created to read:
AB538,5,2
1238.16 (4) (d) The corporation may not certify a person to receive benefits under
2both par. (b) 1. and 1m. for wages paid to the same eligible employee in the same year.
