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LRB-2412/1
JK:amn
2017 - 2018 LEGISLATURE
March 20, 2017 - Introduced by Representatives Brostoff, Sinicki, Goyke,
Kessler, Berceau, Sargent and Zamarripa, cosponsored by Senators C.
Larson
, Johnson and L. Taylor. Referred to Committee on Workforce
Development.
AB177,1,4 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: a tax credit for hiring
4certain apprentices from the Milwaukee Institute of Art and Design.
Analysis by the Legislative Reference Bureau
This bill allows a business to claim an income and franchise tax credit equal to
$2,500 for each employee who is employed through the Milwaukee Institute of Art
and Design apprenticeship program funded by an American Apprenticeship
Initiative grant through the United States Department of Labor. To claim the credit,
the business must be located in this state and engaged in a design apprenticeship
activity consistent with the purposes for which the school received the grant. The
maximum amount of the credit that may be claimed for all claimants and all taxable
years is $750,000.
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:
AB177,1 5Section 1. 71.05 (6) (a) 15. of the statutes is amended to read:
AB177,2,6
171.05 (6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the
2credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
3(3rm), (3rn), (3s), (3t), (3w), (3y), (4k), (4n), (5e), (5f), (5h), (5i), (5j), (5k), (5r), (5rm),
4(6n), (8b), and (8r) and not passed through by a partnership, limited liability
5company, or tax-option corporation that has added that amount to the partnership's,
6company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
AB177,2 7Section 2. 71.07 (8b) of the statutes is created to read:
AB177,2,98 71.07 (8b) Apprenticeship program credit. (a) Definition. In this subsection,
9“claimant” means a person who files a claim under this subsection.
AB177,2,1310 (b) Filing claims. Subject to the limitations provided in this subsection, a
11claimant may claim a credit against the taxes imposed under s. 71.02, up to the
12amount of the tax, an amount equal to $2,500 multiplied by the number of the
13claimant's employees who satisfy all of the following conditions:
AB177,2,1714 1. In the taxable year for which the claimant claims a credit under this
15subsection, the employee is employed through the Milwaukee Institute of Art and
16Design apprentice program funded by an American apprenticeship initiative grant
17through the U.S. department of labor.
AB177,2,2118 2. The employee is employed by a business owned by the claimant that is
19located in this state and that is engaged in a design apprenticeship activity
20consistent with the purposes for which the Milwaukee Institute of Art and Design
21received the grant described under subd. 1.
AB177,2,2422 (c) Limitations. 1. No person may claim the credit under this subsection unless
23the person first applies for the credit with the department, in the manner prescribed
24by the department, and the department approves the credit.
AB177,3,5
12. The total amount of the credits that claimants may claim under this
2subsection and ss. 71.28 (8b) and 71.47 (8b) is $750,000. The department may adjust
3the amount of any credits claimed under this subsection and ss. 71.28 (8b) and 71.47
4(8b) at the time that applications are made under subd. 1. and ss. 71.28 (8b) (c) 1. and
571.47 (8b) (c) 1. so that the limit under this subdivision is not exceeded.
AB177,3,136 3. Partnerships, limited liability companies, and tax-option corporations may
7not claim the credit under this subsection, but the eligibility for and the amount of
8the credit are based on their hiring of eligible employees described under par. (b).
9A partnership, limited liability company, or tax-option corporation shall compute
10the amount of credit that each of its partners, members, or shareholders may claim
11and shall provide that information to each of them. Partners, members of limited
12liability companies, and shareholders of tax-option corporations may claim the
13credit in proportion to their ownership interests.
AB177,3,1514 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
15s. 71.28 (4), applies to the credit under this subsection.
AB177,3 16Section 3. 71.10 (4) (cs) of the statutes is created to read:
AB177,3,1717 71.10 (4) (cs) Apprenticeship program credit under s. 71.07 (8b).
AB177,4 18Section 4. 71.21 (4) (a) of the statutes is amended to read:
AB177,3,2219 71.21 (4) (a) The amount of the credits computed by a partnership under s.
2071.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w),
21(3y), (4k), (4n), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8b), and (8r) and
22passed through to partners shall be added to the partnership's income.
AB177,5 23Section 5. 71.26 (2) (a) 4. of the statutes is amended to read:
AB177,4,424 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
25(1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h),

1(5i), (5j), (5k), (5r), (5rm), (6n), (8b), (8r), and (9s) 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).
AB177,6 5Section 6. 71.28 (8b) of the statutes is created to read:
AB177,4,76 71.28 (8b) Apprenticeship program credit. (a) Definition. In this subsection,
7“claimant” means a person who files a claim under this subsection.
AB177,4,118 (b) Filing claims. Subject to the limitations provided in this subsection, a
9claimant may claim a credit against the taxes imposed under s. 71.23, up to the
10amount of the tax, an amount equal to $2,500 multiplied by the number of the
11claimant's employees who satisfy all of the following conditions:
AB177,4,1512 1. In the taxable year for which the claimant claims a credit under this
13subsection, the employee is employed through the Milwaukee Institute of Art and
14Design apprentice program funded by an American apprenticeship initiative grant
15through the U.S. department of labor.
AB177,4,1916 2. The employee is employed by a business owned by the claimant that is
17located in this state and that is engaged in a design apprenticeship activity
18consistent with the purposes for which the Milwaukee Institute of Art and Design
19received the grant described under subd. 1.
AB177,4,2220 (c) Limitations. 1. No person may claim the credit under this subsection unless
21the person first applies for the credit with the department, in the manner prescribed
22by the department, and the department approves the credit.
AB177,5,223 2. The total amount of the credits that claimants may claim under this
24subsection and ss. 71.07 (8b) and 71.47 (8b) is $750,000. The department may adjust
25the amount of any credits claimed under this subsection and ss. 71.07 (8b) and 71.47

1(8b) at the time that applications are made under subd. 1. and ss. 71.07 (8b) (c) 1. and
271.47 (8b) (c) 1. so that the limit under this subdivision is not exceeded.
AB177,5,103 3. Partnerships, limited liability companies, and tax-option corporations may
4not claim the credit under this subsection, but the eligibility for and the amount of
5the credit are based on their hiring of eligible employees described under par. (b).
6A partnership, limited liability company, or tax-option corporation shall compute
7the amount of credit that each of its partners, members, or shareholders may claim
8and shall provide that information to each of them. Partners, members of limited
9liability companies, and shareholders of tax-option corporations may claim the
10credit in proportion to their ownership interests.
AB177,5,1211 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
12sub. (4), applies to the credit under this subsection.
AB177,7 13Section 7. 71.30 (3) (cs) of the statutes is created to read:
AB177,5,1414 71.30 (3) (cs) Apprenticeship program credit under s. 71.28 (8b).
AB177,8 15Section 8. 71.34 (1k) (g) of the statutes is amended to read:
AB177,5,1916 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
17corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3p), (3q), (3r),
18(3rm), (3rn), (3t), (3w), (3y), (4), (5), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n),
19(8b), and (8r) and passed through to shareholders.
AB177,9 20Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:
AB177,6,221 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
22computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn),
23(3w), (3y), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8b), (8r), and (9s) and
24not passed through by a partnership, limited liability company, or tax-option
25corporation that has added that amount to the partnership's, limited liability

1company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and
2the amount of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).
AB177,10 3Section 10. 71.47 (8b) of the statutes is created to read:
AB177,6,54 71.47 (8b) Apprenticeship program credit. (a) Definition. In this subsection,
5“claimant” means a person who files a claim under this subsection.
AB177,6,96 (b) Filing claims. Subject to the limitations provided in this subsection, a
7claimant may claim a credit against the taxes imposed under s. 71.43, up to the
8amount of the tax, an amount equal to $2,500 multiplied by the number of the
9claimant's employees who satisfy all of the following conditions:
AB177,6,1310 1. In the taxable year for which the claimant claims a credit under this
11subsection, the employee is employed through the Milwaukee Institute of Art and
12Design apprentice program funded by an American apprenticeship initiative grant
13through the U.S. department of labor.
AB177,6,1714 2. The employee is employed by a business owned by the claimant that is
15located in this state and that is engaged in a design apprenticeship activity
16consistent with the purposes for which the Milwaukee Institute of Art and Design
17received the grant described under subd. 1.
AB177,6,2018 (c) Limitations. 1. No person may claim the credit under this subsection unless
19the person first applies for the credit with the department, in the manner prescribed
20by the department, and the department approves the credit.
AB177,6,2521 2. The total amount of the credits that claimants may claim under this
22subsection and ss. 71.07 (8b) and 71.28 (8b) is $750,000. The department may adjust
23the amount of any credits claimed under this subsection and ss. 71.07 (8b) and 71.28
24(8b) at the time that applications are made under subd. 1. and ss. 71.07 (8b) (c) 1. and
2571.28 (8b) (c) 1. so that the limit under this subdivision is not exceeded.
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