Government Relations
UW System Position on Bills Introduced in the Legislature During the 2009-2010 Session
Pending Legislation
SB 52
Full Description
(Darling/Zipperer) Creates an income tax and franchise tax credit for businesses that pay tuition for an individual to attend a university, college, or technical college. The credit is an amount equal to:
- 50 percent of the tuition paid by a business for an individual to attend school in a taxable year, if the individual is enrolled in a degree-granting program; and
- 75 percent of the tuition paid by a business for an individual to attend school in a taxable year, if the individual is enrolled in a degree-granting program and if the individual’s taxable income is not more than 185 percent of the federal poverty line.
UW System Position
SUPPORT: The legislation will create new educational opportunities for Wisconsin students and will contribute to Wisconsin’s ability to retain students. This legislation is an important component of a ‘brain gain’ strategy.
Employers and students both gain when an employer is willing to pay for the cost of higher education. Taxpayers gain because this approach leverages private dollars as financial aid for students.
This bill represents an effort to make higher education available to as many students as possible. An education tax credit for businesses will help meet the educational needs of our state’s adult and returning students. Ultimately, this measure could increase the number of workers in Wisconsin who hold postsecondary degrees.
The Department of Revenue estimates that this bill would decrease revenue by $25.7 million annually. However, in the long run, this reduction will be offset by increased tax revenue from individuals with higher incomes. The difference between a high school degree and a bachelor’s degree can add $1 million in lifetime earnings, resulting in increased income taxes paid.