SB 162

This bill creates a tax credit program administered by the Wisconsin Economic

Development Corporation under which a sole proprietor may receive tax credits in

connection with the first full-time employee employed by the sole proprietor.

Specifically, under the bill, WEDC may certify a sole proprietor in Wisconsin to

claim a nonrefundable credit to offset income taxes as follows:

1. For the first taxable year during which the sole proprietor employs an

eligible employee for that entire year, an amount equal to 100 percent of the wages

paid that employee in that year or $10,000, whichever is less.

2. For the second taxable year during which the applicant employs an eligible

employee for that entire year, an amount equal to 50 percent of the wages paid that

employee in that year or $5,000, whichever is less.

3. For the third taxable year during which the applicant employs an eligible

employee for that entire year, an amount equal to 25 percent of the wages paid that

employee in that year or $2,500, whichever is less.

An employee is eligible under the bill if he or she is the first employee employed

by the sole proprietor in a full-time job who is not the sole proprietor or a member

of the sole proprietor's immediate family. The bill defines “full-time job" to mean a

regular, nonseasonal full-time position in which an individual, as a condition of

employment, is required to work at least 2,080 hours per year, including paid leave

and holidays, and for which the individual receives pay that is equal to at least 150

percent of the federal minimum wage. Finally, the maximum amount of the credit

that all sole proprietors may claim in all taxable years is $20,000,000. Under the bill,

if in any taxable year the amount of the claims exceed the maximum allowable

amount of $20,000,000, the Department of Revenue must prorate the amount that

each taxpayer may claim.