Government Relations

UW System Position on Bills Introduced in the Legislature During the 2009-2010 Session

Pending Legislation

SB 63

Education Tax Credit for Businesses

Full Description

(Lassa/Fields) This bill creates an income tax credit for businesses that pay tuition for an individual to attend a university, college, or technical college.  Sole proprietorships, corporations, and insurers may claim the credit.  The credit is an amount equal to:

  1. 25 percent of the tuition paid by a business for an individual to attend school, if the individual is enrolled in a course of instruction approved by the Educational Approval Board; and
  2. 30 percent of the tuition paid by a business for an individual to attend school, if the individual is enrolled in a course of instruction that relates to a projected worker shortage in this state.

Similar legislation (AB 80/SB 52) has been introduced that would also provide an education tax credit for businesses, but provides different requirements and amounts for the credit.

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 reduce income tax revenues annually by between $10.1 million and $12.1 million.  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.