LRB-3943/1
JK:sac:rs
2013 - 2014 LEGISLATURE
February 28, 2014 - Introduced by Representatives Johnson, Barnes, Sargent,
Bewley, Ohnstad, Berceau, Hebl, Pope and Goyke. Referred to Committee
on Jobs, Economy and Mining.
AB832,1,5
1An Act to amend 71.05 (6) (a) 15., 71.21 (4) (a), 71.26 (2) (a) 4., 71.34 (1k) (g) and
271.45 (2) (a) 10.; and
to create 71.07 (8b), 71.10 (4) (cs), 71.28 (8b), 71.30 (3) (cs),
371.47 (8b) and 71.49 (1) (cs) of the statutes;
relating to: an income and
4franchise tax credit for providing full-time employment to part-time
5employees.
Analysis by the Legislative Reference Bureau
Under this bill, a business may claim an income and franchise tax credit in an
amount equal to $5,000 multiplied by the number of the taxpayer's employees who
satisfy all of the following conditions:
1. In the taxable year prior to the taxable year for which the taxpayer claims
a credit, the employee worked at least 800 hours, but no more than 1,200 hours, at
the taxpayer's business in this state.
2. During the taxable year for which the taxpayer claims a credit, the employee
worked at least 2,000 hours at the taxpayer's business in this state.
3. During the taxable year for which the taxpayer claims a credit, the taxpayer
paid the employee a wage of not less than $10 an hour.
4. The taxpayer's business is located in a county where the average rate of total
unemployment is 6 percent or greater.
5. The taxpayer's business employs no more than ten employees during the
taxable year.
A taxpayer may claim the credit for one taxable year only. If the amount of the
credit exceeds the taxpayer's tax liability, the taxpayer may credit the unused
amount of the credit to the next five taxable years, except that the taxpayer may not
claim the unused balance for a taxable year in which the number of the taxpayer's
full-time employees is less than number of such employees employed by the taxpayer
for the taxable year for which the taxpayer originally claimed the credit.
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:
AB832,2,93
71.05
(6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the
4credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds),
5(2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (4k), (4n), (5e),
6(5f), (5h), (5i), (5j), (5k), (5r), (5rm), (6n),
(8b), and (8r) and not passed through by a
7partnership, limited liability company, or tax-option corporation that has added that
8amount to the partnership's, company's, or tax-option corporation's income under s.
971.21 (4) or 71.34 (1k) (g).
AB832,2
10Section
2. 71.07 (8b) of the statutes is created to read:
AB832,2,1211
71.07
(8b) Full-time employment incentive credit. Definition. In this
12subsection, "claimant" means a person who files a claim under this subsection.
AB832,2,1613
(b)
Filing claims. Subject to the limitations provided in this subsection, a
14claimant may claim as a credit against the taxes imposed under s. 71.02, up to the
15amount of the tax, an amount that is equal to $5,000 multiplied by the number of the
16claimant's employees who satisfy all of the following conditions:
AB832,2,1917
1. In the taxable year prior to the taxable year for which the claimant claims
18a credit under this subsection, the employee worked at least 800 hours, but no more
19than 1,200 hours, at the claimant's business in this state.
AB832,3,3
12. During the taxable year for which the claimant claims a credit under this
2subsection, the employee worked at least 2,000 hours at the claimant's business in
3this state.
AB832,3,54
3. During the taxable year for which the claimant claims a credit under this
5subsection, the claimant paid the employee a wage of not less than $10 an hour.
AB832,3,96
4. The claimant's business is located in a county where the average rate of total
7unemployment is 6 percent or greater, as determined by the U.S. secretary of labor
8based on the jobs data for March of the year that corresponds to the taxable year for
9which the claimant claims a credit under this subsection.
AB832,3,1210
5. During the taxable year for which the claimant claims a credit under this
11subsection, the claimant employs no more than 10 employees at the claimant's
12business in this state.
AB832,3,1413
(c)
Limitations. 1. A claimant may claim a credit under this subsection for one
14taxable year only.
AB832,3,2215
2. Partnerships, limited liability companies, and tax-option corporations may
16not claim the credit under this subsection, but the eligibility for, and the amount of,
17the credit are based on their payment of amounts under par. (b). A partnership,
18limited liability company, or tax-option corporation shall compute the amount of
19credit that each of its partners, members, or shareholders may claim and shall
20provide that information to each of them. Partners, members of limited liability
21companies, and shareholders of tax-option corporations may claim the credit in
22proportion to their ownership interests.
AB832,3,2423
(d)
Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
24credit under s. 71.28 (4), applies to the credit under this subsection.
AB832,4,6
12. Except as provided in subd. 3., if a credit computed under this subsection is
2not entirely offset against Wisconsin income or franchise taxes otherwise due, the
3unused balance may be carried forward and credited against Wisconsin income or
4franchise taxes otherwise due for the following 5 taxable years to the extent not offset
5by these taxes otherwise due in all intervening years between the year in which the
6expense was incurred and the year in which the carry-forward credit is claimed.
AB832,4,147
3. An unused balance described under subd. 2. may not be carried forward and
8credited against Wisconsin income or franchise taxes otherwise due for a taxable
9year in which the number of full-time employees employed by the claimant in this
10state is less than the number of full-time employees employed by the claimant in this
11state for the taxable year for which the claimant made the original claim under this
12subsection. For purposes of this subdivision, a full-time employee is an individual
13who works at least 2,000 hours during the taxable year at the claimant's business
14in this state.
AB832,3
15Section
3. 71.10 (4) (cs) of the statutes is created to read:
AB832,4,1616
71.10
(4) (cs) Full-time employment incentive credit under s. 71.07 (8b).
AB832,4,2319
71.21
(4) (a) The amount of the credits computed by a partnership under s.
2071.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p),
21(3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (4k), (4n), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r),
22(5rm), (6n),
(8b), and (8r) and passed through to partners shall be added to the
23partnership's income.
AB832,5
24Section
5. 71.26 (2) (a) 4. of the statutes is amended to read:
AB832,5,7
171.26
(2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
2(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r),
3(3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n),
(8b), (8r),
4and (9s) and not passed through by a partnership, limited liability company, or
5tax-option corporation that has added that amount to the partnership's, limited
6liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k)
7(g).
AB832,6
8Section
6. 71.28 (8b) of the statutes is created to read:
AB832,5,109
71.28
(8b) Full-time employment incentive credit. Definition. In this
10subsection, "claimant" means a person who files a claim under this subsection.
AB832,5,1411
(b)
Filing claims. Subject to the limitations provided in this subsection, a
12claimant may claim as a credit against the taxes imposed under s. 71.23, up to the
13amount of the tax, an amount that is equal to $5,000 multiplied by the number of the
14claimant's employees who satisfy all of the following conditions:
AB832,5,1715
1. In the taxable year prior to the taxable year for which the claimant claims
16a credit under this subsection, the employee worked at least 800 hours, but no more
17than 1,200 hours, at the claimant's business in this state.
AB832,5,2018
2. During the taxable year for which the claimant claims a credit under this
19subsection, the employee worked at least 2,000 hours at the claimant's business in
20this state.
AB832,5,2221
3. During the taxable year for which the claimant claims a credit under this
22subsection, the claimant paid the employee a wage of not less than $10 an hour.
AB832,6,223
4. The claimant's business is located in a county where the average rate of total
24unemployment is 6 percent or greater, as determined by the U.S. secretary of labor
1based on the jobs data for March of the year that corresponds to the taxable year for
2which the claimant claims a credit under this subsection.
AB832,6,53
5. During the taxable year for which the claimant claims a credit under this
4subsection, the claimant employs no more than 10 employees at the claimant's
5business in this state.
AB832,6,76
(c)
Limitations. 1. A claimant may claim a credit under this subsection for one
7taxable year only.
AB832,6,158
2. Partnerships, limited liability companies, and tax-option corporations may
9not claim the credit under this subsection, but the eligibility for, and the amount of,
10the credit are based on their payment of amounts under par. (b). A partnership,
11limited liability company, or tax-option corporation shall compute the amount of
12credit that each of its partners, members, or shareholders may claim and shall
13provide that information to each of them. Partners, members of limited liability
14companies, and shareholders of tax-option corporations may claim the credit in
15proportion to their ownership interests.
AB832,6,1716
(d)
Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit
17under sub. (4), applies to the credit under this subsection.
AB832,6,2318
2. Except as provided in subd. 3., if a credit computed under this subsection is
19not entirely offset against Wisconsin income or franchise taxes otherwise due, the
20unused balance may be carried forward and credited against Wisconsin income or
21franchise taxes otherwise due for the following 5 taxable years to the extent not offset
22by these taxes otherwise due in all intervening years between the year in which the
23expense was incurred and the year in which the carry-forward credit is claimed.
