SB623: Bill Text

SB623,9 Section 9. 71.26 (3) (hi) of the statutes is created to read:

SB623,,36 71.26 (3) (hi) Section 170 is modified so that an amount contributed to a nonprofit entity for the purpose of establishing a child care program that is used to calculate the credit under s. 71.28 (8s) may not be deducted as provided under the Internal Revenue Code.

SB623,10 Section 10. 71.28 (8s) of the statutes is created to read:

SB623,,38 71.28 (8s) Employer child care program credit. (a) Definitions. In this subsection:

SB623,,39 1. “Child care program” has the meaning given in s. 71.07 (8s) (a) 1.

SB623,,40 2. “Claimant” means an employer who operates a child care program and who files a claim under this subsection.

SB623,,41 3. “Qualifying capital expenditures” has the meaning given in s. 71.07 (8s) (a) 3.

SB623,,42 (b) Filing claims. For taxable years beginning after December 31, 2022, subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.23, up to the amount of the tax, all of the following:

SB623,,43 1. An amount equal to the qualifying capital expenditures incurred by the claimant and the expenses incurred in organizing and administering direct payments to a child care program not operated by the claimant during the first taxable year those expenses are incurred. The total amount that the claimant may claim as a credit under this subdivision and subd. 2. for a taxable year may not exceed $100,000.

SB623,,44 2. An amount equal to the contributions made by the claimant to a nonprofit entity described in section 501 (c) 3 of the Internal Revenue Code for the purpose of establishing a child care program. The total amount that the claimant may claim as a credit under this subdivision and subd. 1. for a taxable year may not exceed $100,000.

SB623,,45 3. An amount equal to the expenses incurred by the claimant to operate a child care program. The total amount that the claimant may claim as a credit under this subdivision and subds. 4. and 5. for a taxable year may not exceed $3,000 for each child of an employee participating in the child care program.

SB623,,46 4. An amount equal to the payments made by the claimant directly to a child care program in the name of and for the benefit of an employee of the claimant, not exceeding the amount charged to other children of like age and abilities of individuals not employed by the claimant. The total amount that the claimant may claim as a credit under this subdivision and subds. 3. and 5. for a taxable year may not exceed $3,000 for each child of an employee participating in the child care program.

SB623,,47 5. An amount equal to the administrative costs associated with payments described in subd. 4., not exceeding 1 percent of those payments. The total amount that the claimant may claim as a credit under this subdivision and subds. 3. and 4. for a taxable year may not exceed $3,000 for each child of an employee participating in the child care program.

SB623,,48 (c) Limitations. 1. No credit is allowed under this subsection if the onsite daycare facility is not in compliance with the requirements under subch. XV of ch. 48.

SB623,,49 2. No credit is allowed under par. (b) 4. unless the total amount of the claimant’s payments to a child care program is greater than or equal to the total amount of the employee’s payments to the child care program.

SB623,,50 3. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on the amounts paid by the entities under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members, and shareholders may claim the credit in proportion to their ownership interests.

SB623,,51 (d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB623,,52 2. If the allowable amount of the claim under this subsection exceeds the tax otherwise due under s. 71.23, the amount of the claim that is not used to offset those taxes shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation under s. 20.835 (2) (et).

SB623,11 Section 11. 71.30 (3) (f) of the statutes is amended to read:

SB623,,54 71.30 (3) (f) The total of farmland preservation credit under subch. IX, jobs credit under s. 71.28 (3q), enterprise zone jobs credit under s. 71.28 (3w), electronics and information technology manufacturing zone credit under s. 71.28 (3wm), business development credit under s. 71.28 (3y), research credit under s. 71.28 (4) (k) 1., employer child care program credit under s. 71.28 (8s), and estimated tax payments under s. 71.29.

SB623,12 Section 12. 71.34 (1k) (g) of the statutes is amended to read:

SB623,,56 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (4), (5), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8s), and (10) and passed through to shareholders.

SB623,13 Section 13. 71.45 (2) (a) 10. of the statutes is amended to read:

SB623,,58 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3w), (3y), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8s), and (10) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership’s, limited liability company’s, or tax-option corporation’s income under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47 (3), (3t), (4), (4m), and (5).

SB623,14 Section 14. 71.45 (2) (a) 25. of the statutes is created to read:

SB623,,60 71.45 (2) (a) 25. By adding to federal taxable income any amount used to calculate the credit under s. 71.47 (8s) to the extent that amount is deducted under the Internal Revenue Code as a charitable contribution.

SB623,15 Section 15. 71.47 (8s) of the statutes is created to read:

SB623,,62 71.47 (8s) Employer child care program credit. (a) Definitions. In this subsection:

SB623,,63 1. “Child care program” has the meaning given in s. 71.07 (8s) (a) 1.

SB623,,64 2. “Claimant” means an employer who operates a child care program and who files a claim under this subsection.

SB623,,65 3. “Qualifying capital expenditures” has the meaning given in s. 71.07 (8s) (a) 3.

SB623,,66 (b) Filing claims. For taxable years beginning after December 31, 2022, subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.43, up to the amount of the tax, all of the following:

SB623,,67 1. An amount equal to the qualifying capital expenditures incurred by the claimant and the expenses incurred in organizing and administering direct payments to a child care program not operated by the claimant during the first taxable year those expenses are incurred. The total amount that the claimant may claim as a credit under this subdivision and subd. 2. for a taxable year may not exceed $100,000.

SB623,,68 2. An amount equal to the contributions made by the claimant to a nonprofit entity described in section 501 (c) 3 of the Internal Revenue Code for the purpose of establishing a child care program. The total amount that the claimant may claim as a credit under this subdivision and subd. 1. for a taxable year may not exceed $100,000.

SB623,,69 3. An amount equal to the expenses incurred by the claimant to operate a child care program. The total amount that the claimant may claim as a credit under this subdivision and subds. 4. and 5. for a taxable year may not exceed $3,000 for each child of an employee participating in the child care program.

SB623,,70 4. An amount equal to the payments made by the claimant directly to a child care program in the name of and for the benefit of an employee of the claimant, not exceeding the amount charged to other children of like age and abilities of individuals not employed by the claimant. The total amount that the claimant may claim as a credit under this subdivision and subds. 3. and 5. for a taxable year may not exceed $3,000 for each child of an employee participating in the child care program.

SB623,,71 5. An amount equal to the administrative costs associated with payments described in subd. 4., not exceeding 1 percent of those payments. The total amount that the claimant may claim as a credit under this subdivision and subds. 3. and 4. for a taxable year may not exceed $3,000 for each child of an employee participating in the child care program.

SB623,,72 (c) Limitations. 1. No credit is allowed under this subsection if the onsite daycare facility is not in compliance with the requirements under subch. XV of ch. 48.

SB623,,73 2. No credit is allowed under par. (b) 4. unless the total amount of the claimant’s payments to a child care program is greater than or equal to the total amount of the employee’s payments to the child care program.

SB623,,74 3. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on the amounts paid by the entities under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members, and shareholders may claim the credit in proportion to their ownership interests.

SB623,,75 (d) Administration. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB623,,76 2. If the allowable amount of the claim under this subsection exceeds the tax otherwise due under s. 71.43, the amount of the claim that is not used to offset those taxes shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation under s. 20.835 (2) (et).

SB623,16 Section 16. 71.49 (1) (f) of the statutes is amended to read:

SB623,,78 71.49 (1) (f) The total of farmland preservation credit under subch. IX, jobs credit under s. 71.47 (3q), enterprise zone jobs credit under s. 71.47 (3w), business development credit under s. 71.47 (3y), research credit under s. 71.47 (4) (k) 1., employer child care program credit under s. 71.47 (8s), and estimated tax payments under s. 71.48.

SB623,,79 (end)