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LRB-1128/1
KRP&JK:kjf
2017 - 2018 LEGISLATURE
March 1, 2017 - Introduced by Representatives Kremer, Allen, Anderson, R.
Brooks
, Horlacher, Kerkman, Kleefisch, Skowronski and Thiesfeldt,
cosponsored by Senators Feyen, Lasee, Olsen, Testin and Wanggaard.
Referred to Committee on Ways and Means.
AB108,1,4 1An Act to amend 71.26 (2) (a) 4., 71.34 (1k) (g) and 71.45 (2) (a) 10.; and to create
271.28 (10), 71.30 (3) (ey), 71.47 (10) and 71.49 (1) (ey) of the statutes; relating
3to:
creating a corporate income and franchise tax credit for amounts
4contributed by an employer into an employee's college savings account.
Analysis by the Legislative Reference Bureau
This bill creates a nonrefundable corporate income and franchise tax credit for
certain amounts contributed by an employer into an employee's college savings
account. The credit is nonrefundable, meaning that it may be claimed only up to the
amount of the corporation's income or franchise tax liability.
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:
AB108,1 5Section 1. 71.26 (2) (a) 4. of the statutes is amended to read:
AB108,2,46 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
7(1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h),

1(5i), (5j), (5k), (5r), (5rm), (6n), (8r), and (9s), and (10) and not passed through by a
2partnership, limited liability company, or tax-option corporation that has added that
3amount to the partnership's, limited liability company's, or tax-option corporation's
4income under s. 71.21 (4) or 71.34 (1k) (g).
AB108,2 5Section 2. 71.28 (10) of the statutes is created to read:
AB108,2,76 71.28 (10) Employee college savings account contribution credit. (a)
7Definitions. In this subsection:
AB108,2,88 1. “Claimant" means a person who files a claim under this subsection.
AB108,2,99 2. “Employee" has the meaning given in s. 71.63 (2).
AB108,2,1910 (b) Filing claims. Subject to the limitations provided in this subsection, a
11claimant may claim as a credit against the tax imposed under s. 71.23, up to the
12amount of those taxes, for each employee of the claimant, an amount equal to 25
13percent of the amount the claimant paid into a college savings account, as described
14in s. 16.641, in the taxable year in which the contribution is made or on or before the
1515th day of the 4th month beginning after the close of the taxable year to which the
16claim relates, for the benefit of the employee who is an account owner, as defined in
17s. 16.641 (1) (a), of the college savings account, up to 25 percent of the maximum
18amount that an individual contributor may deduct under s. 71.05 (6) (b) 32. a. per
19beneficiary.
AB108,3,220 (c) Limitations. Partnerships, limited liability companies, and tax-option
21corporations may not claim the credit under this subsection, but the eligibility for,
22and the amount of, the credit are based on their payment of amounts under par. (b).
23A partnership, limited liability company, or tax-option corporation shall compute
24the amount of the credit that each of its partners, members, or shareholders may
25claim and shall provide that information to each of them. Partners, members of

1limited liability companies, and shareholders of tax-option corporations may claim
2the credit in proportion to their ownership interests.
AB108,3,43 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
4sub. (4), applies to the credit under this subsection.
AB108,3 5Section 3. 71.30 (3) (ey) of the statutes is created to read:
AB108,3,76 71.30 (3) (ey) Employee college savings account contribution credit under s.
771.28 (10).
AB108,4 8Section 4. 71.34 (1k) (g) of the statutes is amended to read:
AB108,3,129 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
10corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3p), (3q), (3r),
11(3rm), (3rn), (3t), (3w), (3y), (4), (5), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n),
12and (8r), and (10) and passed through to shareholders.
AB108,5 13Section 5. 71.45 (2) (a) 10. of the statutes is amended to read:
AB108,3,2014 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
15computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn),
16(3w), (3y), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8r), and (9s), and (10)
17and not passed through by a partnership, limited liability company, or tax-option
18corporation that has added that amount to the partnership's, limited liability
19company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and
20the amount of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).
AB108,6 21Section 6. 71.47 (10) of the statutes is created to read:
AB108,3,2322 71.47 (10) Employee college savings account contribution credit. (a)
23Definitions. In this subsection:
AB108,3,2424 1. “Claimant" means a person who files a claim under this subsection.
AB108,3,2525 2. “Employee" has the meaning given in s. 71.63 (2).
AB108,4,10
1(b) Filing claims. Subject to the limitations provided in this subsection, a
2claimant may claim as a credit against the tax imposed under s. 71.43, up to the
3amount of those taxes, for each employee of the claimant, an amount equal to 25
4percent of the amount the claimant paid into a college savings account, as described
5in s. 16.641, in the taxable year in which the contribution is made or on or before the
615th day of the 4th month beginning after the close of the taxable year to which the
7claim relates, for the benefit of the employee who is an account owner, as defined in
8s. 16.641 (1) (a), of the college savings account, up to 25 percent of the maximum
9amount that an individual contributor may deduct under s. 71.05 (6) (b) 32. a. per
10beneficiary.
AB108,4,1811 (c) Limitations. Partnerships, limited liability companies, and tax-option
12corporations may not claim the credit under this subsection, but the eligibility for,
13and the amount of, the credit are based on their payment of amounts under par. (b).
14A partnership, limited liability company, or tax-option corporation shall compute
15the amount of the credit that each of its partners, members, or shareholders may
16claim and shall provide that information to each of them. Partners, members of
17limited liability companies, and shareholders of tax-option corporations may claim
18the credit in proportion to their ownership interests.
AB108,4,2019 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
20s. 71.28 (4), applies to the credit under this subsection.
AB108,7 21Section 7. 71.49 (1) (ey) of the statutes is created to read:
AB108,4,2322 71.49 (1) (ey) Employee college savings account contribution credit under s.
2371.47 (10).
AB108,8 24Section 8. Initial applicability.
AB108,5,4
1(1) This act first applies to taxable years beginning on January 1 of the year
2in which this subsection takes effect, except that if this subsection takes effect after
3July 31, this act first applies to taxable years beginning on January 1 of the year
4following the year in which this subsection takes effect.
AB108,5,55 (End)
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