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2023 - 2024 LEGISLATURE
2023 ASSEMBLY BILL 110
March 14, 2023 - Introduced by Representatives BODDEN, TUSLER, BEHNKE and
DONOVAN, cosponsored by Senator JACQUE. Referred to Committee on State
Affairs.
***AUTHORS SUBJECT TO CHANGE***
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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SECTION 1 ASSEMBLY BILL 110
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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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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SECTION 5 ASSEMBLY BILL 110
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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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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SECTION 9 ASSEMBLY BILL 110
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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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)
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