LRB-5623/1
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2023 - 2024 LEGISLATURE
2023 ASSEMBLY BILL 1023
January 29, 2024 - Introduced by Representatives BINSFELD, ALLEN, ARMSTRONG,
AUGUST, BEHNKE, BORN, BRANDTJEN, DITTRICH, DONOVAN, EDMING, GOEBEN,
GREEN, GUNDRUM, HURD, KATSMA, KRUG, KURTZ, MACCO, MAGNAFICI, MAXEY,
MELOTIK, MOSES, MURPHY, MURSAU, NEDWESKI, O'CONNOR, OLDENBURG,
PENTERMAN, PETRYK, PLUMER, RETTINGER, SCHRAA, SCHUTT, SNYDER, SPIROS,
STEFFEN, TRANEL, WICHGERS, WITTKE and SWEARINGEN, cosponsored by
Senators QUINN, BALLWEG, BRADLEY, CABRAL-GUEVARA, FELZKOWSKI, FEYEN,
JAGLER, MARKLEIN, NASS, STROEBEL, TESTIN, WANGGAARD and TOMCZYK.
Referred to Joint Committee on Finance.
***AUTHORS SUBJECT TO CHANGE***
AN ACT to renumber and amend 71.07 (9g) (b); and to create 71.07 (9g) (b) 2.
and 71.07 (9g) (c) 5. of the statutes; relating to: expanding the child and
dependent care credit.
Analysis by the Legislative Reference Bureau
Under current law, an individual who is eligible to claim the federal child and
dependent care tax credit may claim a state income tax credit equal to 50 percent of
the amount the individual may claim as a federal income tax credit. However, the
amount of employment-related expenses that an individual may claim to determine
the amount of the federal credit is limited to $3,000 if the individual has only one
qualifying dependent, and $6,000 if the individual has two or more qualifying
dependents.
This bill increases the amount of the state credit that an individual may claim
by increasing the employment-related expense limitation to $10,000 for one
qualifying dependent and $20,000 for two or more qualifying dependents.
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:
SECTION 1. 71.07 (9g) (b) of the statutes is renumbered 71.07 (9g) (b) 1. and
amended to read:
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SECTION 1 ASSEMBLY BILL 1023
71.07 (9g) (b) 1. For taxable years beginning after December 31, 2021, and
before January 1, 2024, and subject to the limitations provided in this subsection, a
claimant may claim as a credit against the tax imposed under s. 71.02, up to the
amount of those taxes, an amount equal to 50 percent of the federal child and
dependent care tax credit claimed by the claimant on his or her federal income tax
return for the taxable year to which the claim under this subsection relates.
SECTION 2. 71.07 (9g) (b) 2. of the statutes is created to read:
71.07 (9g) (b) 2. For taxable years beginning after December 31, 2023, and
subject to the limitations provided in this subsection, a claimant may claim as a
credit against the tax imposed under s. 71.02, up to the amount of those taxes, an
amount equal to 100 percent of the federal child and dependent care tax credit that
the claimant may claim on his or her federal income tax return for the taxable year
to which the claim under this subsection relates using the expense limitation under
par. (c) 5. rather than the expense limitation under 26 USC 21 (c).
SECTION 3. 71.07 (9g) (c) 5. of the statutes is created to read:
71.07 (9g) (c) 5. Notwithstanding 26 USC 21 (c), for taxable years beginning
after December 31, 2023, the maximum allowable expenses to determine the amount
of the credit under par. (b) 2. is $10,000 for one qualifying individual, as defined in
26 USC 21 (b), and $20,000 for 2 or more qualifying individuals, as defined in 26 USC
21 (b).
(END)
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