Bill Summary – FastDemocracy

- 2024 LEGISLATURE
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                     2023 SENATE BILL 112
    March 1, 2023 - Introduced by Senator JACQUE, cosponsored by Representatives
        BODDEN, TUSLER, BEHNKE and DONOVAN. Referred to Committee on
        Universities and Revenue.
 AN ACT to amend 71.05 (6) (a) 15., 71.21 (4) (a), 71.26 (2) (a) 4., 71.34 (1k) (g) and
      71.45 (2) (a) 10.; and to create 71.07 (4p), 71.10 (4) (ft), 71.28 (4p), 71.30 (3) (dc),
      71.47 (4p) and 71.49 (1) (dc) of the statutes; relating to: a pediatric cancer
      research tax credit.
                       Analysis by the Legislative Reference Bureau
          This bill creates an income and franchise tax credit for contributions made by
    a business entity to a pediatric cancer research institution. The bill requires the
    institution to use the contribution exclusively and directly for pediatric cancer
    research and defines a “pediatric cancer research institution” as a hospital or an
    institution of higher education located in this state that is actively conducting
    pediatric cancer research, as certified by the secretary of health services.
          Under the bill, the maximum amount of the credit that an entity may claim in
    any taxable year is $2,500,000. If the amount of the credit exceeds the entity's tax
    liability, the entity does not receive a refund but, instead, may claim the remaining,
    unused credit against the entity's tax liability in subsequent years.
          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:
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     SENATE BILL 112                                                                      SECTION 1
       SECTION 1. 71.05 (6) (a) 15. of the statutes is amended to read:
       71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dm),
 (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (4p), (5e), (5i),
 (5j), (5k), (5r), (5rm), (6n), 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, company's, or tax-option corporation's income under s. 71.21 (4) or
 71.34 (1k) (g).
       SECTION 2. 71.07 (4p) of the statutes is created to read:
       71.07 (4p)     PEDIATRIC    CANCER RESEARCH CREDIT.          (a)   Definitions.    In this
 subsection:
       1. “Claimant” means a sole proprietor, partner of a partnership, member of a
 limited liability company, or shareholder of a tax-option corporation who files a claim
 under this subsection.
       2. “Pediatric cancer research institution” means a hospital or an institution of
 higher education located in this state that is actively conducting pediatric cancer
 research, as certified by the secretary of health services.
       (b) Filing claims. Subject to the limitations under this subsection, for taxable
 years beginning after December 31, 2022, a claimant may claim as a credit against
 the tax imposed under s. 71.02 the amount that the claimant paid in the taxable year
 as a contribution to a pediatric cancer research institution.
       (c) Limitations. 1. 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 their payment of amounts 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
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     SENATE BILL 112                                                                 SECTION 2
 and shall provide that information to each of them. Partners of partnerships,
 members of limited liability companies, and shareholders of tax-option corporations
 may claim the credit in proportion to their ownership interest or as specially
 allocated in their organizational documents.
      2. The maximum amount that a claimant may claim under this subsection for
 a taxable year is $2,500,000.
      3. No claimant may claim both a deduction under section 170 of the Internal
 Revenue Code and a credit under this subsection for the same contribution.
      (d) Administration. 1. Section 71.28 (4) (e) to (h), as it applies to the credit
 under s. 71.28 (4), applies to the credit under this subsection.
      2. The secretary of health services, in consultation with the department of
 revenue, shall establish a program for certifying entities as eligible to receive
 contributions for purposes of the credit under this subsection. A pediatric cancer
 research institution that receives a contribution pursuant to this subsection shall
 use the contribution exclusively and directly for pediatric cancer research.               A
 claimant shall indicate to the pediatric cancer research institution at the time of
 making the claimant's contribution that the claimant intends to claim the credit
 under this subsection for that contribution.
      SECTION 3. 71.10 (4) (ft) of the statutes is created to read:
      71.10 (4) (ft) Pediatric cancer research credit under s. 71.07 (4p).
      SECTION 4. 71.21 (4) (a) of the statutes is amended to read:
      71.21 (4) (a) The amount of the credits computed by a partnership under s.
 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n),
 (4p), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and passed through to
 partners shall be added to the partnership's income.
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     SENATE BILL 112                                                                      SECTION 5
       SECTION 5. 71.26 (2) (a) 4. of the statutes is amended to read:
       71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
 (1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (4p), (5e), (5g), (5i), (5j), (5k),
 (5r), (5rm), (6n), 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).
       SECTION 6. 71.28 (4p) of the statutes is created to read:
       71.28 (4p)     PEDIATRIC    CANCER RESEARCH CREDIT.          (a)   Definitions.    In this
 subsection:
       1. “Claimant” means a sole proprietor, partner of a partnership, member of a
 limited liability company, or shareholder of a tax-option corporation who files a claim
 under this subsection.
       2. “Pediatric cancer research institution” means a hospital or an institution of
 higher education located in this state that is actively conducting pediatric cancer
 research, as certified by the secretary of health services.
       (b) Filing claims. Subject to the limitations under this subsection, for taxable
 years beginning after December 31, 2022, a claimant may claim as a credit against
 the tax imposed under s. 71.23 the amount that the claimant paid in the taxable year
 as a contribution to a pediatric cancer research institution.
       (c) Limitations. 1. 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 their payment of amounts 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
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     SENATE BILL 112                                                                    SECTION 6
 and shall provide that information to each of them. Partners of partnerships,
 members of limited liability companies, and shareholders of tax-option corporations
 may claim the credit in proportion to their ownership interest or as specially
 allocated in their organizational documents.
       2. The maximum amount that a claimant may claim under this subsection for
 a taxable year is $2,500,000.
       3. No claimant may claim both a deduction under section 170 of the Internal
 Revenue Code and a credit under this subsection for the same contribution.
       (d) Administration. 1. Subsection (4) (e) to (h), as it applies to the credit under
 sub. (4), applies to the credit under this subsection.
       2. The secretary of health services, in consultation with the department of
 revenue, shall establish a program for certifying entities as eligible to receive
 contributions for purposes of the credit under this subsection. A pediatric cancer
 research institution that receives a contribution pursuant to this subsection shall
 use the contribution exclusively and directly for pediatric cancer research.                   A
 claimant shall indicate to the pediatric cancer research institution at the time of
 making the claimant's contribution that the claimant intends to claim the credit
 under this subsection for that contribution.
       SECTION 7. 71.30 (3) (dc) of the statutes is created to read:
       71.30 (3) (dc) Pediatric cancer research credit under s. 71.28 (4p).
       SECTION 8. 71.34 (1k) (g) of the statutes is amended to read:
       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), (4p), (5), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and passed
 through to shareholders.
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     SENATE BILL 112                                                                 SECTION 9
       SECTION 9. 71.45 (2) (a) 10. of the statutes is amended to read:
       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), (4p), (5e), (5g),
 (5i), (5j), (5k), (5r), (5rm), (6n), 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).
       SECTION 10. 71.47 (4p) of the statutes is created to read:
       71.47 (4p)     PEDIATRIC   CANCER RESEARCH CREDIT.       (a)   Definitions.   In this
 subsection:
       1. “Claimant” means a sole proprietor, partner of a partnership, member of a
 limited liability company, or shareholder of a tax-option corporation who files a claim
 under this subsection.
       2. “Pediatric cancer research institution” means a hospital or an institution of
 higher education located in this state that is actively conducting pediatric cancer
 research, as certified by the secretary of health services.
       (b) Filing claims. Subject to the limitations under this subsection, for taxable
 years beginning after December 31, 2022, a claimant may claim as a credit against
 the tax imposed under s. 71.43 the amount that the claimant paid in the taxable year
 as a contribution to a pediatric cancer research institution.
       (c) Limitations. 1. 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 their payment of amounts under par. (b).
 A partnership, limited liability company, or tax-option corporation shall compute
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     SENATE BILL 112                                                         SECTION 10
 the amount of credit that each of its partners, members, or shareholders may claim
 and shall provide that information to each of them. Partners of partnerships,
 members of limited liability companies, and shareholders of tax-option corporations
 may claim the credit in proportion to their ownership interest or as specially
 allocated in their organizational documents.
      2. The maximum amount that a claimant may claim under this subsection for
 a taxable year is $2,500,000.
      3. No claimant may claim both a deduction under section 170 of the Internal
 Revenue Code and a credit under this subsection for the same contribution.
      (d) Administration. 1. Section 71.28 (4) (e) to (h), as it applies to the credit
 under s. 71.28 (4), applies to the credit under this subsection.
      2. The secretary of health services, in consultation with the department of
 revenue, shall establish a program for certifying entities as eligible to receive
 contributions for purposes of the credit under this subsection. A pediatric cancer
 research institution that receives a contribution pursuant to this subsection shall
 use the contribution exclusively and directly for pediatric cancer research.         A
 claimant shall indicate to the pediatric cancer research institution at the time of
 making the claimant's contribution that the claimant intends to claim the credit
 under this subsection for that contribution.
      SECTION 11. 71.49 (1) (dc) of the statutes is created to read:
      71.49 (1) (dc) Pediatric cancer research credit under s. 71.47 (4p).
                                      (END)
Statutes affected: 
Bill Text: 71.05(6)(a)15, 71.05, 71.21(4)(a), 71.21, 71.26(2)(a)4, 71.26, 71.34(1k)(g), 71.34, 71.45(2)(a)10, 71.45