Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB1076 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 SENATE BILL 1076
5	5	February 26, 2024 - Introduced by Senators HESSELBEIN, AGARD, CARPENTER, L.
6	6	JOHNSON, LARSON, ROYS and SPREITZER, cosponsored by Representatives BARE,
7	7	GOYKE, BALDEH, C. ANDERSON, CONLEY, CONSIDINE, EMERSON, JACOBSON, JOERS,
8	8	OHNSTAD, PALMERI, RATCLIFF, SHANKLAND, SINICKI, SNODGRASS, STUBBS and
9	9	SUBECK. Referred to Committee on Universities and Revenue.
10	10	*AUTHORS SUBJECT TO CHANGE*
11	11	AN ACT to amend 16.705 (9), 71.05 (6) (a) 15., 71.21 (4) (a), 71.26 (2) (a) 4., 71.34
12	12	(1k) (g) and 71.45 (2) (a) 10.; and to create 14.57, 14.69, 20.517, 20.923 (4) (c)
13	13	7., 25.52, 71.07 (4s), 71.07 (4w), 71.10 (4) (ct) and (cu), 71.28 (4s), 71.28 (4w),
14	14	71.30 (3) (ct) and (cu), 71.47 (4s), 71.47 (4w), 71.49 (1) (ct) and (cu) and 230.08
15	15	(2) (en) of the statutes; relating to: creating WisEARNS and making an
16	16	appropriation.
17	17	Analysis by the Legislative Reference Bureau
18	18	WisEARNS retirement savings program
19	19	This bill creates a program called “WisEARNS” to provide a defined
20	20	contribution retirement savings plan for employees of private employers in this state
21	21	that do not offer an employer-sponsored retirement plan or that do not offer such a
22	22	plan to all employees. A defined contribution retirement savings plan is one that
23	23	pays retirement benefits based on an individual's account balance, rather than a
24	24	prescribed formula.
25	25	The bill creates a WisEARNS Board that is attached to the Office of the State
26	26	Treasurer. Under the bill, the board consists of the following nine members: the state
27	27	treasurer or his or her designee; the secretary of financial institutions or his or her
28	28	designee; two members appointed by the governor; two members appointed,
29	29	respectively, by the speaker of the assembly and president of the senate; one member
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37	37	SENATE BILL 1076
38	38	appointed by the state treasurer; one member appointed by the State of Wisconsin
39	39	Investment Board; and one member appointed by the other members. The bill
40	40	requires certain members to possess specified attributes or experience, and all
41	41	members serve four-year terms.
42	42	Under the bill, the state treasurer recommends a candidate for executive
43	43	director of the plan to the board, with the board approving the executive director. The
44	44	executive director serves outside the classified service and appoints staff outside the
45	45	classified service. The executive director serves at the pleasure of the board.
46	46	Under the bill, the board is required to establish the savings plan under which
47	47	employees may contribute to retirement savings accounts through payroll
48	48	deductions. Before establishing the plan, the board must conduct a legal analysis of
49	49	the applicability of the Internal Revenue Code and the Employee Retirement Income
50	50	Security Act of 1974 to the proposed plan, and must issue a request for information
51	51	from prospective vendors of a variety of defined-contribution retirement accounts
52	52	authorized under the Internal Revenue Code.
53	53	Under the bill, the default account type is a Roth IRA. The bill requires the
54	54	board to design the plan and contract with third-party investment administrators
55	55	to operate the plan. Among other requirements, the plan must do at least all of the
56	56	following: 1) require automatic participation by private employers in this state; 2)
57	57	require automatic enrollment for employees, but allow employees to opt out before
58	58	any payroll deduction is made; 3) prohibit employer contributions to employee
59	59	retirement accounts; and 4) allow an employee to roll over the amounts in an account
60	60	to a different IRS-qualified retirement account.
61	61	Also under the bill, unless the employee directs otherwise, during the
62	62	employee's first year of enrollment in the plan, the employer must make a payroll
63	63	deduction each pay period at a rate of 5 percent of the employee's gross wages, with
64	64	this rate increasing by 1 percent per year until the rate is the maximum rate allowed
65	65	under the Internal Revenue Code. Under the plan, the eligible employee must have
66	66	certain investment options within each account type, including a stable value or
67	67	capital preservation fund and a target date index fund or age-based fund. An eligible
68	68	employee's first $400 of contributions must be deposited in a savings account that is
69	69	not a retirement savings account, and thereafter, unless the employee selects a
70	70	different investment option, the employee's contributions must be deposited in a
71	71	target date index fund or age-based fund. An employee must be allowed to opt out
72	72	of this provision before the first $400 is deposited. The bill requires the board to
73	73	establish a policy for emergency withdrawals from a WisEARNS savings account
74	74	that is not a retirement savings account.
75	75	Under current law, DOA is authorized to purchase contractual services for most
76	76	bodies of state government. Under the bill, the board is exempted from some of the
77	77	requirements of contracting through DOA and instead must do all of the following
78	78	before awarding the contract: 1) conduct a cost-benefit analysis of contracting with
79	79	different vendors; 2) review and ensure the independence of the vendor and the
80	80	vendor's employees; and 3) require proof of background checks of the vendor and the
81	81	vendor's employees. The bill also requires the board to maintain a list of any vendor - 3 -2023 - 2024 Legislature
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85	85	or party to the contract that violates the contract or requirements of the law, and to
86	86	provide that list to DOA for inclusion on the ineligible list for state contracts.
87	87	Tax credits for retirement plan startup costs and automatic enrollment
88	88	The bill creates two income and franchise tax credits that may be claimed by
89	89	small businesses that have 100 or fewer employees who received at least $5,000 in
90	90	compensation during the preceding year. Both credits are based on similar federal
91	91	tax credits. The first credit may be claimed by small businesses for the costs of
92	92	setting up and administering a retirement plan and educating employees about the
93	93	plan. The credit is 50 percent of the costs, limited to the greater of $500 or the lesser
94	94	of $5,000 or $250 multiplied by the number of non-highly compensated employees
95	95	who are eligible to participate in the plan. The credit may be claimed for three
96	96	consecutive years and may be not be claimed for any costs that were deducted under
97	97	federal law. The second credit may be claimed by small businesses that provide for
98	98	automatic enrollment in their retirement plans. The credit is $500 and may be
99	99	claimed for three consecutive years, beginning with the year in which the small
100	100	business first provides for automatic enrollment.
101	101	For further information see the state fiscal estimate, which will be printed as
102	102	an appendix to this bill.
103	103	The people of the state of Wisconsin, represented in senate and assembly, do
104	104	enact as follows:
105	105	SECTION 1. 14.57 of the statutes is created to read:
106	106	14.57 Same; attached boards.
107	107	(1) WISEARNS BOARD. There is created a WisEARNS board that is attached
108	108	to the state treasurer under s. 15.03. Of the members appointed under pars. (a) to
109	109	(e), at least one must have experience in the field of investments, at least one must
110	110	have experience as the owner of a business that employs between 5 and 50 people,
111	111	and at least one must be an employee who is not eligible for or does not have access
112	112	to an employer-sponsored retirement plan. The board shall consist of the following
113	113	members appointed for 4-year terms:
114	114	(a) The state treasurer or his or her designee.
115	115	(b) The secretary of financial institutions or his or her designee.
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128	128	SECTION 1 SENATE BILL 1076
129	129	(c) One member who has a favorable reputation for skill, knowledge, and
130	130	experience in the field of retirement saving and investments, appointed by the
131	131	governor.
132	132	(d) One member who has a favorable reputation for skill, knowledge, and
133	133	experience relating to small business, appointed by the governor.
134	134	(e) One member who is a representative of an association representing
135	135	employees or who has a favorable reputation for skill, knowledge, and experience in
136	136	the interests of employees in retirement saving, appointed by the speaker of the
137	137	assembly.
138	138	(f) One member who has a favorable reputation for skill, knowledge, and
139	139	experience in the interests of employers in retirement saving, appointed by the
140	140	president of the senate.
141	141	(g) One member who has a favorable reputation for skill, knowledge, and
142	142	experience in retirement investment products or retirement plan designs, appointed
143	143	by the state treasurer.
144	144	(h) One member appointed by the investment board.
145	145	(i) One member appointed, notwithstanding s. 15.07 (4), by a majority vote of
146	146	all of the members identified in pars. (a) to (h).
147	147	(2) MEMBERSHIP PROHIBITED. No individual appointed under sub. (1) (a) to (h)
148	148	may be a dealer or broker in securities, or be employed by an entity that is primarily
149	149	a dealer or broker in securities, and any member who accepts such employment shall
150	150	vacate his or her membership.
151	151	SECTION 2. 14.69 of the statutes is created to read:
152	152	14.69 WisEARNS program. (1) DEFINITIONS. In this section:
153	153	(a) “Board" means the WisEARNS board.
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181	181	SECTION 2
182	182	SENATE BILL 1076
183	183	(b) “Earnings” means all remuneration for employment or services provided to
184	184	an individual in this state, including salary, fees, bonuses, and including the cash
185	185	value of all remuneration paid in any medium other than cash.
186	186	(c) “Eligible employee” means an employee who is 18 years of age or older who
187	187	works in this state and whose private employer does not offer a retirement savings
188	188	plan or who is not eligible to participate in a qualified retirement savings plan offered
189	189	by his or her private employer.
190	190	(d) “Investment administrator” means the vendor selected under sub. (3) (e).
191	191	(e) “Plan" means the WisEARNS plan established under sub. (3).
192	192	(f) “Private employer” means any person engaging in any activity, enterprise
193	193	or business in this state that has conducted such activity, enterprise, or business in
194	194	this state for at least 2 years after the effective date of this paragraph .... [LRB inserts
195	195	date], and did not offer a retirement plan qualified under the Internal Revenue Code
196	196	during those 2 years.
197	197	(g) “WisEARNS retirement account" means a retirement savings account
198	198	established under the plan.
199	199	(h) “WisEARNS savings account” means a savings account established under
200	200	the plan that is not a retirement savings account.
201	201	(2) DUTIES OF TREASURER, EXECUTIVE DIRECTOR, AND BOARD. (a) The treasurer
202	202	shall recommend an executive director of the plan to the board, which shall appoint
203	203	an executive director outside the classified service, to serve at the pleasure of the
204	204	board. The executive director may not be a member of the board.
205	205	(b) The executive director appointed under par. (a) shall appoint staff for the
206	206	plan outside the classified service.
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232	232	SECTION 2 SENATE BILL 1076
233	233	(3) ESTABLISHMENT OF PLAN. The board shall establish, implement, and oversee
234	234	a plan that meets the requirements specified in sub. (8) that shall enroll eligible
235	235	employees beginning not more than 2 years after the effective date of this subsection
236	236	.... [LRB inserts date]. Before establishing and implementing the plan, the board
237	237	shall do all of the following:
238	238	(a) Conduct a legal analysis regarding the applicability of the federal Employee
239	239	Retirement Income Security Act of 1974, 29 USC 1001 to 1461, and the Internal
240	240	Revenue Code to the proposed plan.
241	241	(b) Enter into interagency agreements with the department of revenue, the
242	242	department of financial institutions, and the department of workforce development
243	243	to assist the board in providing outreach services to private employers and
244	244	employees.
245	245	(c) Prepare and issue a request for information from prospective vendors of
246	246	retirement savings accounts described in 26 USC 408 (a), individual retirement
247	247	annuities described in 26 USC 408 (b), individual retirement bonds, and individual
248	248	savings accounts to determine the feasibility of the proposed plan and the existence
249	249	of plans in the private market that meet the requirements set forth in sub. (8).
250	250	(d) Investigate ways of allowing individuals who are not automatically enrolled
251	251	in the plan to enroll in the plan and make contributions to retirement savings
252	252	accounts.
253	253	(e) Based on the results of the request for information under par. (c), prepare
254	254	and issue a request for proposals from prospective vendors and select a vendor. The
255	255	board shall determine the factors to be considered in selecting a vendor for the plan,
256	256	which shall include the ability of the vendor to meet all of the requirements of the
257	257	plan set forth in sub. (8) (a) to (z). Sections 16.705 and 16.75 do not apply to a contract
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285	285	SECTION 2
286	286	SENATE BILL 1076
287	287	entered into under this section. Before awarding a contract under this section, the
288	288	board shall do all of the following:
289	289	1. Conduct a cost-benefit analysis to identify and compare the total cost,
290	290	quality, and technical expertise of the vendors that submitted proposals.
291	291	2. Review the independence and relationship, if any, of the vendors that
292	292	submitted proposals to employees of the board and the disclosure of any former
293	293	employment of the vendor or employees of the vendor with the board, to minimize the
294	294	likelihood of selection of a vendor that provides or is likely to provide services to
295	295	industries, client groups, or individuals who are the object of state regulation or the
296	296	recipients of state funding to a degree that the vendor's independence would be
297	297	compromised.
298	298	3. If the vendor or employees of the vendor have access to federal tax
299	299	information received directly from the federal internal revenue service or from a
300	300	source that is authorized by the federal internal revenue service, for the performance
301	301	of services under the contract under this section, require proof of a background
302	302	investigation on each individual performing the services. Such a background check
303	303	shall meet the standards established by the federal internal revenue service under
304	304	26 USC 6103 (p) (4) (C).
305	305	(f) Ensure compliance by the plan with all applicable provisions of the Internal
306	306	Revenue Code and U.S. department of treasury regulations.
307	307	(5) INELIGIBLE VENDOR LIST. The board shall maintain a list of persons that are
308	308	or have been a party to a contract under this section that have violated a provision
309	309	of this section or a contract under this section. The board shall annually forward this
310	310	list to the department of administration for inclusion in the ineligible vendor list
311	311	under s. 16.705 (9).
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338	338	SECTION 2 SENATE BILL 1076
339	339	(6) POWERS OF BOARD. The board may do any of the following:
340	340	(a) Enter into contracts or other arrangements for any of the following services
341	341	as necessary for implementing and overseeing the plan and otherwise carrying out
342	342	the purposes of this section:
343	343	1. The services of financial institutions and depositories and of consultants,
344	344	accountants, attorneys, investment advisers, investment administrators, 3rd-party
345	345	administrators, and other professionals.
346	346	2. The services of other state agencies under interagency agreements under
347	347	sub. (3) (b).
348	348	(b) Solicit and accept contributions, gifts, grants, and bequests for the
349	349	WisEARNS plan administration trust fund or for any other purpose for which a
350	350	contribution, gift, grant, or bequest is made and received. Moneys received under
351	351	this paragraph shall be deposited in the WisEARNS plan administration trust fund.
352	352	(c) Enter into agreements with other governmental entities in this state or
353	353	outside this state, which maintain retirement savings programs similar to
354	354	WisEARNS, to collectively invest the assets of the plan to the extent allowed by
355	355	federal law to benefit retirement savings account holders participating in the plan
356	356	by achieving efficiencies designed to minimize costs for the plan and retirement
357	357	savings account holders participating in the plan.
358	358	(7) DUTIES OF BOARD. The board shall do all of the following:
359	359	(a) Promulgate rules for the administration of the plan.
360	360	(b) Collect application, account, or administrative fees to defray the costs of
361	361	administering the plan at the lowest cost possible. Fees collected under this
362	362	paragraph shall be deposited in the WisEARNS plan administration trust fund. Fees
363	363	under this paragraph may not be linked to the value of the trust fund.
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391	391	SECTION 2
392	392	SENATE BILL 1076
393	393	(c) Establish a policy for the investment of moneys contributed to a retirement
394	394	savings account, and direct the investment of such moneys in a manner that is
395	395	consistent with any investment restrictions established by the board. Those
396	396	investment restrictions shall be consistent with the objectives of the plan and with
397	397	the standard of responsibility specified in s. 25.15 (2).
398	398	(d) Evaluate the need for, and procure as needed, insurance to cover any
399	399	liabilities of the plan and to cover each member of the board for loss or liability
400	400	resulting from the board member's act or omission as a member of the board.
401	401	(e) Determine the eligibility of employers, employees, or individuals to
402	402	participate in the plan.
403	403	(f) Establish policies for emergency withdrawals from WisEARNS savings
404	404	accounts.
405	405	(g) Annually review the performance of vendors regarding, at a minimum,
406	406	investment returns, fees, and customer service, and publish results of the review on
407	407	the plan's Internet site.
408	408	(h) Exercise any other powers as may be necessary to oversee the plan and
409	409	otherwise carry out the purposes of this section.
410	410	(8) REQUIREMENTS FOR PLAN. The board shall design the plan so that it meets
411	411	all of the following requirements:
412	412	(a) The plan allows eligible individuals employed for compensation in this state
413	413	by a private employer in this state to contribute to WisEARNS accounts through
414	414	payroll deductions. The plan allows self-employed individuals with earnings in this
415	415	state to contribute to WisEARNS accounts.
416	416	(b) The plan requires all private employers in this state to withhold and remit
417	417	employee contributions to the plan through payroll deductions. If an employer offers
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444	444	SECTION 2 SENATE BILL 1076
445	445	a qualified retirement plan under the Internal Revenue Code, including a plan
446	446	qualified under section 401 (a) or (k), 403 (a) or (b), 408 (k), or 457 (b) of the Internal
447	447	Revenue Code, the employer does not need to withhold and remit employee
448	448	contributions for employees who are eligible to participate in the
449	449	employer-sponsored plan.
450	450	(c) Except as provided in par. (d), the plan provides that the default individual
451	451	retirement account is a Roth IRA account.
452	452	(d) If the plan offers options for account types other than a Roth IRA, the plan
453	453	allows an enrolled eligible employee to select any of these other account types for
454	454	investing contributions under the plan.
455	455	(e) The plan provides an eligible employee who is enrolled in the plan with
456	456	multiple investment options within each account type, which may include any of the
457	457	following investment options:
458	458	1. A stable value or capital preservation fund.
459	459	2. A target date index fund or age-based fund that automatically rebalances
460	460	asset allocations based on the eligible employee's age.
461	461	3. A low-cost fund focused on income generation.
462	462	4. A low-cost fund focused on asset growth.
463	463	5. A low-cost fund focused on balancing risk and return.
464	464	(f) The investment policy for the plan includes all of the following concepts:
465	465	1. Best practices in the industry for retirement savings vehicles.
466	466	2. The promotion of portability of retirement savings accounts.
467	467	3. The minimization of fees and expenses.
468	468	4. The maximization of possible income replacement, balanced with
469	469	appropriate levels of risk.
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497	497	SECTION 2
498	498	SENATE BILL 1076
499	499	(g) The plan requires the investment administrator to offer to each enrolled
500	500	eligible employee, before the employee makes his or her investment selections, a tool
501	501	allowing the employee to identify the employee's risk tolerance and projected
502	502	retirement date as an aid to the employee in selecting suitable investments under
503	503	the plan.
504	504	(h) The plan requires that the first $400 of an enrolled eligible employee's
505	505	contributions be deposited in a WisEARNS savings account and thereafter, unless
506	506	the employee selects a different investment option, the employee's contributions be
507	507	to a WisEARNS retirement account and deposited in a fund described in par. (e) 2.
508	508	The plan shall allow an employee to select a different investment option before the
509	509	first $400 is deposited in a WisEARNS retirement account. An employee shall be
510	510	allowed to withdraw the first $400 for emergency use from the employee' s
511	511	WisEARNS savings account, and contributions subsequent to the withdrawal shall
512	512	be deposited in the WisEARNS savings account until the amount in the employee's
513	513	WisEARNS savings account is restored to $400.
514	514	(i) Except as provided in par. (k), during an eligible employee's first year of
515	515	enrollment in the plan, the participating employer's payroll deduction each pay
516	516	period shall be at a rate of 5 percent of the employee's gross wages, and this deducted
517	517	amount shall be remitted to the investment administrator as the employee's account
518	518	contribution.
519	519	(j) Except as provided in par. (k), a participating employer shall increase the
520	520	payroll deduction rate under par. (i) by 1 percent per year until the payroll deduction
521	521	rate is the maximum allowed under the Internal Revenue Code.
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544	544	23 - 12 -2023 - 2024 Legislature LRB-5783/1
545	545	JK&MIM:cjs
546	546	SECTION 2 SENATE BILL 1076
547	547	(k) An enrolled eligible employee may elect a different payroll deduction rate
548	548	than that provided for in pars. (i) and (j), except that the rate may not be less than
549	549	1 percent or more than the maximum allowed under the Internal Revenue Code.
550	550	(L) The plan sets forth a process for enrollment of eligible employees in the
551	551	plan, which shall include all of the following processes:
552	552	1. Automatic enrollment of eligible employees in the plan.
553	553	2. Opting out of enrollment in the plan before any payroll deduction is made.
554	554	3. Opting out of enrollment in the plan at any time after a payroll deduction
555	555	is made.
556	556	4. Changing the payroll deduction rate from that provided for in pars. (i) and
557	557	(j)
558	558	(m) The plan provides a process for all of the following:
559	559	1. Employer withholding from employees' wages contributions to WisEARNS
560	560	accounts and remittance of those contributions to the investment administrator of
561	561	the plan.
562	562	2. Eligible employees' and self-employed individuals' nonpayroll contributions
563	563	to their WisEARNS retirement accounts.
564	564	3. Emergency withdrawals from WisEARNS savings accounts in accordance
565	565	with procedures established by the board under sub. (7) (f).
566	566	(n) The plan requires contributions to WisEARNS accounts to be deposited
567	567	directly with the investment administrator of the plan.
568	568	(o) The plan, to the greatest extent possible, uses existing employer and public
569	569	infrastructure to facilitate contributions to WisEARNS accounts and outreach to
570	570	employees and private employers.
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594	594	24 - 13 -2023 - 2024 Legislature
595	595	LRB-5783/1
596	596	JK&MIM:cjs
597	597	SECTION 2
598	598	SENATE BILL 1076
599	599	(p) The plan prohibits employer contribution to an employee WisEARNS
600	600	account.
601	601	(q) The plan requires the maintenance of separate records and accounting for
602	602	each WisEARNS account and provides for reports on the status of accounts to be
603	603	provided to plan participants at least once per quarter.
604	604	(r) The plan allows the owner of a WisEARNS retirement account to maintain
605	605	that account regardless of his or her place of employment and to roll over money from
606	606	that account to other retirement accounts as allowed under the Internal Revenue
607	607	Code.
608	608	(s) The plan provides for the pooling of WisEARNS retirement accounts for
609	609	investment purposes by the investment administrator of the plan.
610	610	(t) The plan is professionally managed in a way that keeps administrative costs
611	611	low. The plan shall allow the investment administrator of the plan to charge and
612	612	collect application, account, and administrative fees in an amount that does not
613	613	exceed an amount that is sufficient to defray the costs of administering the plan.
614	614	(u) The plan provides that the state and any employer participating in the plan
615	615	have no proprietary interest in an employee's contributions to a WisEARNS account
616	616	or in the earnings of such an account.
617	617	(v) The plan provides that the investment administrator of the plan is the
618	618	trustee of all contributions to a WisEARNS account and earnings on those
619	619	contributions.
620	620	(w) The plan does not impose any duties under the federal Employee
621	621	Retirement Income Security Act of 1974, 29 USC 1001 to 1461, on an employer and
622	622	does not expose any employer or the state, either as an employer or in the
623	623	administration of the plan, to any potential liability under that act.
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648	648	25 - 14 -2023 - 2024 Legislature LRB-5783/1
649	649	JK&MIM:cjs
650	650	SECTION 2 SENATE BILL 1076
651	651	(x) The plan provides a process for making withdrawals from an employee's
652	652	WisEARNS retirement account.
653	653	(y) The plan sets forth the requirements that an employer that offers a qualified
654	654	retirement plan described in par. (b) must meet in order to obtain an exemption from
655	655	the requirement under par. (b) that the employer withhold and remit employee
656	656	contributions to the plan through payroll deductions and a process for obtaining such
657	657	an exemption.
658	658	(z) The plan sets forth the contents and frequency of disclosures that the board
659	659	must make to employers, eligible employees and other individuals participating in
660	660	the plan. Those disclosures shall include all of the following:
661	661	1. A discussion of the benefits and risks associated with making contributions
662	662	to a retirement savings account.
663	663	2. Instructions on the process for making contributions to a WisEARNS
664	664	account, opting out of participation in the plan, and making withdrawals from a
665	665	WisEARNS account.
666	666	3. Instructions on how to obtain additional information about the plan.
667	667	4. A notice advising that employees should contact a financial or investment
668	668	adviser for financial or investment advice, that participating employers may not
669	669	provide financial or investment advice, and that participating employers are not
670	670	liable for financial or investment decisions made by an employee.
671	671	5. A notice advising that the plan is not an employer-sponsored retirement
672	672	savings plan.
673	673	6. A notice that a rate of interest or return on a WisEARNS retirement account,
674	674	and the payment of principal, interest, or a return on such an account, are not
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677	677	3
678	678	4
679	679	5
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698	698	24 - 15 -2023 - 2024 Legislature
699	699	LRB-5783/1
700	700	JK&MIM:cjs
701	701	SECTION 2
702	702	SENATE BILL 1076
703	703	guaranteed by the state and that the state may not be held liable for any loss incurred
704	704	by any person as a result of participating in the plan.
705	705	(9) CONSTRUCTION. Nothing in this section guarantees any rate of interest or
706	706	return on a WisEARNS retirement account or the payment of principal, interest, or
707	707	a return on such an account. The state may not be held liable for any loss incurred
708	708	by any person as a result of participating in the plan.
709	709	(10) CONFIDENTIALITY. All personal and financial information pertaining to the
710	710	owner or a beneficiary of a WisEARNS account is confidential and may not be
711	711	disclosed except as follows:
712	712	(a) As necessary to administer the plan, the tax laws of this state, and the
713	713	Internal Revenue Code.
714	714	(b) With the prior written consent of the subject of the information.
715	715	(11) LIABILITY FOR PRIVATE EMPLOYERS. No private employer is a fiduciary with
716	716	respect to the plan. No private employer is liable for any of the following with respect
717	717	to the plan or an eligible employee:
718	718	(a) An eligible employee's decision to participate in the plan.
719	719	(b) Investment decisions made by the board or an eligible employee who
720	720	participates in the plan.
721	721	(c) The administration or investment performance of the plan, including any
722	722	interest rate or other rate of return on any contribution or account balance.
723	723	(d) The plan design.
724	724	(e) An eligible employee's familiarity with and compliance with the applicable
725	725	provisions of the Internal Revenue Code and U.S. department of treasury
726	726	regulations related to individual retirement accounts.
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728	728	2
729	729	3
730	730	4
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745	745	19
746	746	20
747	747	21
748	748	22
749	749	23
750	750	24 - 16 -2023 - 2024 Legislature LRB-5783/1
751	751	JK&MIM:cjs
752	752	SECTION 2 SENATE BILL 1076
753	753	(f) Any loss, failure to realize any gain, or other adverse consequences,
754	754	including any adverse tax consequences or loss of favorable tax treatment, public
755	755	assistance, or other benefits, incurred by any eligible employee as a result of
756	756	participating in the plan.
757	757	(12) LIABILITY OF BOARD AND STATE. No cause of action of any nature may arise
758	758	against and no civil liability may be imposed upon a member of the board for any act
759	759	or omission in the performance of his or her powers and duties related to the plan,
760	760	unless the individual asserting liability proves that the act or omission constitutes
761	761	willful misconduct. No cause of action of any nature may arise against and no civil
762	762	liability may be imposed upon the state or an employee of the state for any act or
763	763	omission related to the powers and duties of the state or employee in the performance
764	764	of any powers or duties related to the plan unless the individual asserting liability
765	765	proves that the act or omission constitutes willful misconduct. No member of the
766	766	board, the state, board or commission of the state, appointee, or employee of the state
767	767	is liable for any of the following:
768	768	(a) An eligible employee's familiarity with and compliance with the applicable
769	769	provisions of the Internal Revenue Code and U.S. department of treasury
770	770	regulations related to individual retirement accounts.
771	771	(b) The interest rate or other rate of return, on an account balance or
772	772	investment performance.
773	773	(c) Any loss, failure to realize any gain, or other adverse consequences,
774	774	including any adverse tax consequences or loss of favorable tax treatment, public
775	775	assistance, or other benefits, incurred by any eligible employee as a result of
776	776	participating in the plan.
777	777	(d) The debts, contracts, and obligations of the plan or the board.
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779	779	2
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802	802	25 - 17 -2023 - 2024 Legislature
803	803	LRB-5783/1
804	804	JK&MIM:cjs
805	805	SECTION 2
806	806	SENATE BILL 1076
807	807	(13) REPORTS. (a) By October 15 of each year, the board shall submit a report
808	808	of its activities to the governor and the appropriate standing committees of the
809	809	legislature under s. 13.172 (3). The report shall include information on the
810	810	performance of the plan and any recommended changes to the plan.
811	811	(b) By January 1, 2028, the board shall submit a report of its activities to the
812	812	governor and the appropriate standing committees of the legislature under s. 13.172
813	813	(3).
814	814	(14) STANDARD OF RESPONSIBILITY. Members of the board and any 3rd-party
815	815	administrators of the plan shall discharge their duties as fiduciaries with respect to
816	816	the trust fund under s. 25.52 for the interest of eligible employees who participate
817	817	in the plan as follows:
818	818	(a) To administer assets of the trust fund solely for the purpose of providing
819	819	benefits to eligible employees who are enrolled in the plan at a reasonable cost and
820	820	not for any other purpose.
821	821	(b) To manage the money and property of the trust fund with the care, skill,
822	822	prudence, and diligence under the circumstances then prevailing that a prudent
823	823	person acting in a similar capacity, with the same resources, and familiar with like
824	824	matters exercises in the conduct of an enterprise of a like character with like aims.
825	825	(15) ASSISTANCE. The office of the state treasurer shall provide the board with
826	826	any assistance necessary to carry out this section, including staff, equipment, and
827	827	office space.
828	828	SECTION 3. 16.705 (9) of the statutes is amended to read:
829	829	16.705 (9) The department shall maintain a list of persons that are or have
830	830	been a party to a contract with the state under this subchapter or s. 14.69 who have
831	831	violated a provision of this subchapter or a contract under this subchapter or s. 14.69.
832	832	1
833	833	2
834	834	3
835	835	4
836	836	5
837	837	6
838	838	7
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840	840	9
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843	843	12
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856	856	25 - 18 -2023 - 2024 Legislature LRB-5783/1
857	857	JK&MIM:cjs
858	858	SECTION 3 SENATE BILL 1076
859	859	The parties on the list are ineligible for state contracts and no state contract may be
860	860	awarded to a party on the ineligible list. The department may remove any party from
861	861	the ineligible list if the department determines that the party's practices comply with
862	862	this subchapter or s. 14.69 and provide adequate safeguards against future
863	863	violations of this subchapter or s. 14.69 or contracts under this subchapter or s. 14.69.
864	864	SECTION 4. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
865	865	the following amounts for the purposes indicated:
866	866	2023-24 2024-25
867	867	20.517 WisEARNS board
868	868	(1) WISEARNS PLAN
869	869	(a)Establishment and administra
870	870	tion of plan GPR B $200,000 $200,000
871	871	SECTION 5. 20.517 of the statutes is created to read:
872	872	20.517 WisEARNS. There is appropriated to the WisEARNS board for the
873	873	following programs:
874	874	(1) WISEARNS PLAN. (a) Establishment and administration of plan.
875	875	Biennially, the amounts in the schedule to establish and administer the plan under
876	876	s. 14.69.
877	877	(q) Board operating expenses; WisEARNS plan administration trust fund.
878	878	From the WisEARNS plan administration trust fund, all moneys deposited in that
879	879	fund under s. 14.69 (7) (b) for the operating expenses of the board.
880	880	(r) Gifts and grants; WisEARNS plan administration trust fund. From the
881	881	WisEARNS plan administration trust fund, all moneys received as contributions,
882	882	1
883	883	2
884	884	3
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903	903	22 - 19 -2023 - 2024 Legislature
904	904	LRB-5783/1
905	905	JK&MIM:cjs
906	906	SECTION 5
907	907	SENATE BILL 1076
908	908	gifts, grants, and bequests for that trust fund under s. 14.69 (6) (b) to carry out the
909	909	purposes for which made and received.
910	910	SECTION 6. 20.923 (4) (c) 7. of the statutes is created to read:
911	911	20.923 (4) (c) 7. State treasurer; WisEARNS board: executive director.
912	912	SECTION 7. 25.52 of the statutes is created to read:
913	913	25.52 WisEARNS plan administration trust fund. There is established a
914	914	separate nonlapsible trust fund designated as the WisEARNS plan administration
915	915	trust fund, to consist of all moneys deposited in that fund under s. 14.69 (6) (b) and
916	916	(7) (b).
917	917	SECTION 8. 71.05 (6) (a) 15. of the statutes is amended to read:
918	918	71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dm),
919	919	(2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (4s), (4w), (5e),
920	920	(5i), (5j), (5k), (5r), (5rm), (6n), and (10) and not passed through by a partnership,
921	921	limited liability company, or tax-option corporation that has added that amount to
922	922	the partnership's, company's, or tax-option corporation's income under s. 71.21 (4)
923	923	or 71.34 (1k) (g).
924	924	SECTION 9. 71.07 (4s) of the statutes is created to read:
925	925	71.07 (4s) RETIREMENT PLAN STARTUP COSTS TAX CREDIT. (a) Definitions. In this
926	926	subsection:
927	927	1. “Claimant” means an eligible employer, as defined in section 45E (c) of the
928	928	Internal Revenue Code, that files a claim under this subsection.
929	929	2. “First credit year” has the meaning given in section 45E (d) (3) of the Internal
930	930	Revenue Code.
931	931	3. “Qualified startup costs” has the meaning given in section 45E (d) (1) of the
932	932	Internal Revenue Code.
933	933	1
934	934	2
935	935	3
936	936	4
937	937	5
938	938	6
939	939	7
940	940	8
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957	957	25 - 20 -2023 - 2024 Legislature LRB-5783/1
958	958	JK&MIM:cjs
959	959	SECTION 9 SENATE BILL 1076
960	960	(b) Filing claims. Subject to the limitations provided in this subsection, a
961	961	claimant may claim as a credit against the taxes imposed under s. 71.02, up to the
962	962	amount of the tax, an amount equal to 50 percent of the qualified startup costs paid
963	963	or incurred by the claimant during the taxable year.
964	964	(c) Limitations. 1. The credit claimed under this subsection in a taxable year
965	965	may not exceed the greater of the following:
966	966	a. $500.
967	967	b. The lesser of $250 for each employee of the claimant who is not a highly
968	968	compensated employee, as defined in section 414 (q) of the Internal Revenue Code,
969	969	or $5,000.
970	970	2. The credit under this subsection may be claimed only for 3 consecutive
971	971	taxable years beginning with the first credit year.
972	972	3. The rules under section 45E (e) (1) and (3) of the Internal Revenue Code apply
973	973	to the credit under this subsection.
974	974	4. No credit may be claimed under this subsection for an amount that is
975	975	deducted under section 162 of the Internal Revenue Code.
976	976	5. A partnership, limited liability company, or tax-option corporation may not
977	977	claim the credit under this subsection, but the partners, members, and shareholders
978	978	may claim the credit based on the payments of the qualified startup costs by the
979	979	partnership, limited liability company, or tax-option corporation. The partnership,
980	980	limited liability company, or tax-option corporation shall calculate the amount of the
981	981	credit that may be claimed by each partner, member, or shareholder and shall
982	982	provide that information to each of them. The partners, members, and shareholders
983	983	may claim the credit in proportion to their ownership interests.
984	984	1
985	985	2
986	986	3
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1007	1007	24 - 21 -2023 - 2024 Legislature
1008	1008	LRB-5783/1
1009	1009	JK&MIM:cjs
1010	1010	SECTION 9
1011	1011	SENATE BILL 1076
1012	1012	(d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
1013	1013	s. 71.28 (4), applies to the credit under this subsection.
1014	1014	SECTION 10. 71.07 (4w) of the statutes is created to read:
1015	1015	71.07 (4w) AUTO-ENROLLMENT TAX CREDIT. (a) Definitions. In this subsection:
1016	1016	1. “Claimant” means an eligible employer, as defined in section 408 (p) (2) (C)
1017	1017	(i) of the Internal Revenue Code, that includes an eligible automatic contribution
1018	1018	arrangement in a qualified employer plan that is sponsored by the claimant and that
1019	1019	files a claim under this subsection.
1020	1020	2. “Eligible automatic contribution arrangement” has the meaning given in
1021	1021	section 414 (w) (3) of the Internal Revenue Code.
1022	1022	3. “Qualified employer plan” has the meaning given in section 4972 (d) (1) of
1023	1023	the Internal Revenue Code.
1024	1024	(b) Filing claims. Subject to the limitations provided in this subsection, a
1025	1025	claimant may claim as a credit against the taxes imposed under s. 71.02, up to the
1026	1026	amount of the tax, $500.
1027	1027	(c) Limitations. 1. The credit under this subsection may be claimed only for
1028	1028	3 consecutive taxable years beginning with the first taxable year for which the
1029	1029	claimant includes an eligible automatic contribution arrangement in a qualified
1030	1030	employer plan that is sponsored by the claimant, except that no credit may be
1031	1031	claimed in a taxable year if an eligible automatic contribution arrangement is not
1032	1032	included in the qualified employer plan for that taxable year.
1033	1033	2. A partnership, limited liability company, or tax-option corporation may not
1034	1034	claim the credit under this subsection, but the partners, members, and shareholders
1035	1035	may claim the credit based on the inclusion by the partnership, limited liability
1036	1036	company, or tax-option corporation of an eligible automatic contribution
1037	1037	1
1038	1038	2
1039	1039	3
1040	1040	4
1041	1041	5
1042	1042	6
1043	1043	7
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1062	1062	JK&MIM:cjs
1063	1063	SECTION 10 SENATE BILL 1076
1064	1064	arrangement in a qualified employer plan that is sponsored by the partnership,
1065	1065	limited liability company, or tax-option corporation. The partnership, limited
1066	1066	liability company, or tax-option corporation shall calculate the amount of the credit
1067	1067	that may be claimed by each partner, member, or shareholder and shall provide that
1068	1068	information to each of them. The partners, members, and shareholders may claim
1069	1069	the credit in proportion to their ownership interests.
1070	1070	(d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
1071	1071	s. 71.28 (4), applies to the credit under this subsection.
1072	1072	SECTION 11. 71.10 (4) (ct) and (cu) of the statutes are created to read:
1073	1073	71.10 (4) (ct) Retirement plan startup costs tax credit under s. 71.07 (4s).
1074	1074	(cu) Auto-enrollment tax credit under s. 71.07 (4w).
1075	1075	SECTION 12. 71.21 (4) (a) of the statutes is amended to read:
1076	1076	71.21 (4) (a) The amount of the credits computed by a partnership under s.
1077	1077	71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n),
1078	1078	(4s), (4w), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and passed through to
1079	1079	partners shall be added to the partnership's income.
1080	1080	SECTION 13. 71.26 (2) (a) 4. of the statutes is amended to read:
1081	1081	71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
1082	1082	(1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (4s), (4w), (5e), (5g), (5i), (5j),
1083	1083	(5k), (5r), (5rm), (6n), and (10) and not passed through by a partnership, limited
1084	1084	liability company, or tax-option corporation that has added that amount to the
1085	1085	partnership's, limited liability company's, or tax-option corporation's income under
1086	1086	s. 71.21 (4) or 71.34 (1k) (g).
1087	1087	SECTION 14. 71.28 (4s) of the statutes is created to read:
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1114	1114	SECTION 14
1115	1115	SENATE BILL 1076
1116	1116	71.28 (4s) RETIREMENT PLAN STARTUP COSTS TAX CREDIT. (a) Definitions. In this
1117	1117	subsection:
1118	1118	1. “Claimant” means an eligible employer, as defined in section 45E (c) of the
1119	1119	Internal Revenue Code, that files a claim under this subsection.
1120	1120	2. “First credit year” has the meaning given in section 45E (d) (3) of the Internal
1121	1121	Revenue Code.
1122	1122	3. “Qualified startup costs” has the meaning given in section 45E (d) (1) of the
1123	1123	Internal Revenue Code.
1124	1124	(b) Filing claims. Subject to the limitations provided in this subsection, a
1125	1125	claimant may claim as a credit against the taxes imposed under s. 71.23, up to the
1126	1126	amount of the tax, an amount equal to 50 percent of the qualified startup costs paid
1127	1127	or incurred by the claimant during the taxable year.
1128	1128	(c) Limitations. 1. The credit claimed under this subsection in a taxable year
1129	1129	may not exceed the greater the following:
1130	1130	a. $500.
1131	1131	b. The lesser of $250 for each employee of the claimant who is not a highly
1132	1132	compensated employee, as defined in section 414 (q) of the Internal Revenue Code,
1133	1133	or $5,000.
1134	1134	2. The credit under this subsection may be claimed only for 3 consecutive
1135	1135	taxable years beginning with the first credit year.
1136	1136	3. The rules under section 45E (e) (1) and (3) of the Internal Revenue Code apply
1137	1137	to the credit under this subsection.
1138	1138	4. No credit may be claimed under this subsection for an amount that is
1139	1139	deducted under section 162 of the Internal Revenue Code.
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1165	1165	SECTION 14 SENATE BILL 1076
1166	1166	5. A partnership, limited liability company, or tax-option corporation may not
1167	1167	claim the credit under this subsection, but the partners, members, and shareholders
1168	1168	may claim the credit based on the payment of the qualified startup costs by the
1169	1169	partnership, limited liability company, or tax-option corporation. The partnership,
1170	1170	limited liability company, or tax-option corporation shall calculate the amount of the
1171	1171	credit that may be claimed by each partner, member, or shareholder and shall
1172	1172	provide that information to each of them. The partners, members, and shareholders
1173	1173	may claim the credit in proportion to their ownership interests.
1174	1174	(d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
1175	1175	sub. (4), applies to the credit under this subsection.
1176	1176	SECTION 15. 71.28 (4w) of the statutes is created to read:
1177	1177	71.28 (4w) AUTO-ENROLLMENT TAX CREDIT. (a) Definitions. In this subsection:
1178	1178	1. “Claimant” means an eligible employer, as defined in section 408 (p) (2) (C)
1179	1179	(i) of the Internal Revenue Code, that includes an eligible automatic contribution
1180	1180	arrangement in a qualified employer plan that is sponsored by the claimant and that
1181	1181	files a claim under this subsection.
1182	1182	2. “Eligible automatic contribution arrangement” has the meaning given in
1183	1183	section 414 (w) (3) of the Internal Revenue Code.
1184	1184	3. “Qualified employer plan” has the meaning given in section 4972 (d) (1) of
1185	1185	the Internal Revenue Code.
1186	1186	(b) Filing claims. Subject to the limitations provided in this subsection, a
1187	1187	claimant may claim as a credit against the taxes imposed under s. 71.23, up to the
1188	1188	amount of the tax, $500.
1189	1189	(c) Limitations. 1. The credit under this subsection may be claimed only for
1190	1190	3 consecutive taxable years beginning with the first taxable year for which the
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1218	1218	SECTION 15
1219	1219	SENATE BILL 1076
1220	1220	claimant includes an eligible automatic contribution arrangement in a qualified
1221	1221	employer plan that is sponsored by the claimant, except that no credit may be
1222	1222	claimed in a taxable year if an eligible automatic contribution arrangement is not
1223	1223	included in the qualified employer plan for that taxable year.
1224	1224	2. A partnership, limited liability company, or tax-option corporation may not
1225	1225	claim the credit under this subsection, but the partners, members, and shareholders
1226	1226	may claim the credit based on the inclusion by the partnership, limited liability
1227	1227	company, or tax-option corporation of an eligible automatic contribution
1228	1228	arrangement in a qualified employer plan that is sponsored by the partnership,
1229	1229	limited liability company, or tax-option corporation. The partnership, limited
1230	1230	liability company, or tax-option corporation shall calculate the amount of the credit
1231	1231	that may be claimed by each partner, member, or shareholder and shall provide that
1232	1232	information to each of them. The partners, members, and shareholders may claim
1233	1233	the credit in proportion to their ownership interests.
1234	1234	(d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
1235	1235	sub. (4), applies to the credit under this subsection.
1236	1236	SECTION 16. 71.30 (3) (ct) and (cu) of the statutes are created to read:
1237	1237	71.30 (3) (ct) Retirement plan startup costs tax credit under s. 71.28 (4s).
1238	1238	(cu) Auto-enrollment tax credit under s. 71.28 (4w).
1239	1239	SECTION 17. 71.34 (1k) (g) of the statutes is amended to read:
1240	1240	71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
1241	1241	corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w),
1242	1242	(3wm), (3y), (4), (4s), (4w), (5), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and
1243	1243	passed through to shareholders.
1244	1244	SECTION 18. 71.45 (2) (a) 10. of the statutes is amended to read:
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1271	1271	SECTION 18 SENATE BILL 1076
1272	1272	71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
1273	1273	computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3w), (3y), (4s), (4w), (5e),
1274	1274	(5g), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and not passed through by a
1275	1275	partnership, limited liability company, or tax-option corporation that has added that
1276	1276	amount to the partnership's, limited liability company's, or tax-option corporation's
1277	1277	income under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under
1278	1278	s. 71.47 (3), (3t), (4), (4m), and (5).
1279	1279	SECTION 19. 71.47 (4s) of the statutes is created to read:
1280	1280	71.47 (4s) RETIREMENT PLAN STARTUP COSTS TAX CREDIT. (a) Definitions. In this
1281	1281	subsection:
1282	1282	1. “Claimant” means an eligible employer, as defined in section 45E (c) of the
1283	1283	Internal Revenue Code, that files a claim under this subsection.
1284	1284	2. “First credit year” has the meaning given in section 45E (d) (3) of the Internal
1285	1285	Revenue Code.
1286	1286	3. “Qualified startup costs” has the meaning given in section 45E (d) (1) of the
1287	1287	Internal Revenue Code.
1288	1288	(b) Filing claims. Subject to the limitations provided in this subsection, a
1289	1289	claimant may claim as a credit against the taxes imposed under s. 71.43, up to the
1290	1290	amount of the tax, an amount equal to 50 percent of the qualified startup costs paid
1291	1291	or incurred by the claimant during the taxable year.
1292	1292	(c) Limitations. 1. The credit claimed under this subsection in a taxable year
1293	1293	may not exceed the greater the following:
1294	1294	a. $500.
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1320	1320	SECTION 19
1321	1321	SENATE BILL 1076
1322	1322	b. The lesser of $250 for each employee of the claimant who is not a highly
1323	1323	compensated employee, as defined in section 414 (q) of the Internal Revenue Code,
1324	1324	or $5,000.
1325	1325	2. The credit under this subsection may be claimed only for 3 consecutive
1326	1326	taxable years beginning with the first credit year.
1327	1327	3. The rules under section 45E (e) (1) and (3) of the Internal Revenue Code apply
1328	1328	to the credit under this subsection.
1329	1329	4. No credit may be claimed under this subsection for an amount that is
1330	1330	deducted under section 162 of the Internal Revenue Code.
1331	1331	5. A partnership, limited liability company, or tax-option corporation may not
1332	1332	claim the credit under this subsection, but the partners, members, and shareholders
1333	1333	may claim the credit based on the payment of the qualified startup costs by the
1334	1334	partnership, limited liability company, or tax-option corporation. The partnership,
1335	1335	limited liability company, or tax-option corporation shall calculate the amount of the
1336	1336	credit that may be claimed by each partner, member, or shareholder and shall
1337	1337	provide that information to each of them. The partners, members, and shareholders
1338	1338	may claim the credit in proportion to their ownership interests.
1339	1339	(d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
1340	1340	sub. (4), applies to the credit under this subsection.
1341	1341	SECTION 20. 71.47 (4w) of the statutes is created to read:
1342	1342	71.47 (4w) AUTO-ENROLLMENT TAX CREDIT. (a) Definitions. In this subsection:
1343	1343	1. “Claimant” means an eligible employer, as defined in section 408 (p) (2) (C)
1344	1344	(i) of the Internal Revenue Code, that includes an eligible automatic contribution
1345	1345	arrangement in a qualified employer plan that is sponsored by the claimant and that
1346	1346	files a claim under this subsection.
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1373	1373	SECTION 20 SENATE BILL 1076
1374	1374	2. “Eligible automatic contribution arrangement” has the meaning given in
1375	1375	section 414 (w) (3) of the Internal Revenue Code.
1376	1376	3. “Qualified employer plan” has the meaning given in section 4972 (d) (1) of
1377	1377	the Internal Revenue Code.
1378	1378	(b) Filing claims. Subject to the limitations provided in this subsection, a
1379	1379	claimant may claim as a credit against the taxes imposed under s. 71.43, up to the
1380	1380	amount of the tax, $500.
1381	1381	(c) Limitations. 1. The credit under this subsection may be claimed only for
1382	1382	3 consecutive taxable years beginning with the first taxable year for which the
1383	1383	claimant includes an eligible automatic contribution arrangement in a qualified
1384	1384	employer plan that is sponsored by the claimant, except that no credit may be
1385	1385	claimed in a taxable year if an eligible automatic contribution arrangement is not
1386	1386	included in the qualified employer plan for that taxable year.
1387	1387	2. A partnership, limited liability company, or tax-option corporation may not
1388	1388	claim the credit under this subsection, but the partners, members, and shareholders
1389	1389	may claim the credit based on the inclusion by the partnership, limited liability
1390	1390	company, or tax-option corporation of an eligible automatic contribution
1391	1391	arrangement in a qualified employer plan that is sponsored by the partnership,
1392	1392	limited liability company, or tax-option corporation. The partnership, limited
1393	1393	liability company, or tax-option corporation shall calculate the amount of the credit
1394	1394	that may be claimed by each partner, member, or shareholder and shall provide that
1395	1395	information to each of them. The partners, members, and shareholders may claim
1396	1396	the credit in proportion to their ownership interests.
1397	1397	(d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
1398	1398	s. 71.28 (4), applies to the credit under this subsection.
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1426	1426	SECTION 21
1427	1427	SENATE BILL 1076
1428	1428	SECTION 21. 71.49 (1) (ct) and (cu) of the statutes are created to read:
1429	1429	71.49 (1) (ct) Start-up retirement plan costs tax credit under s. 71.47 (4s).
1430	1430	(cu) Auto-enrollment tax credit under s. 71.47 (4w).
1431	1431	SECTION 22. 230.08 (2) (en) of the statutes is created to read:
1432	1432	230.08 (2) (en) State treasurer; WisEARNS board: executive director and staff.
1433	1433	SECTION 23.0Initial applicability.
1434	1434	(1) TAX CREDITS. The treatment of ss. 71.05 (6) (a) 15., 71.07 (4s) and (4w), 71.10
1435	1435	(4) (ct) and (cu), 71.21 (4) (a), 71.26 (2) (a) 4., 71.28 (4s) and (4w), 71.30 (3) (ct) and
1436	1436	(cu), 71.34 (1k) (g), 71.45 (2) (a) 10., 71.47 (4s) and (4w), and 71.49 (1) (ct) and (cu)
1437	1437	first applies to taxable years beginning on January 1 of the year in which this
1438	1438	subsection takes effect, except that if this subsection takes effect after July 31, this
1439	1439	act first applies to taxable years beginning on January 1 of the year following the
1440	1440	year in which this subsection takes effect.
1441	1441	(END)
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