Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB1023 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Date of enactment: March 4, 2024
2		-	2023 Assembly Bill 1023 Date of publication*: March 5, 2024
3		-	2023 WISCONSIN ACT 101
4		-	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;
5		-	relating to: expanding the child and dependent care credit.
6		-	The people of the state of Wisconsin, represented in
7		-	senate and assembly, do enact as follows:
8		-	SECTION 1. 71.07 (9g) (b) of the statutes is renum-
9		-	bered 71.07 (9g) (b) 1. and amended to read:
10		-	71.07 (9g) (b) 1. For taxable years beginning after
11		-	December 31, 2021, and before January 1, 2024, and sub-
12		-	ject to the limitations provided in this subsection, a
13		-	claimant may claim as a credit against the tax imposed
14		-	under s. 71.02, up to the amount of those taxes, an amount
15		-	equal to 50 percent of the federal child and dependent
16		-	care tax credit claimed by the claimant on his or her fed-
17		-	eral income tax return for the taxable year to which the
18		-	claim under this subsection relates.
19		-	SECTION 2. 71.07 (9g) (b) 2. of the statutes is created
20		-	to read:
21		-	71.07 (9g) (b) 2. For taxable years beginning after
22		-	December 31, 2023, and subject to the limitations pro-
23		-	vided in this subsection, a claimant may claim as a credit
24		-	against the tax imposed under s. 71.02, up to the amount
25		-	of those taxes, an amount equal to 100 percent of the fed-
26		-	eral child and dependent care tax credit that the claimant
27		-	may claim on his or her federal income tax return for the
28		-	taxable year to which the claim under this subsection
29		-	relates using the expense limitation under par. (c) 5.
30		-	rather than the expense limitation under 26 USC 21 (c).
31		-	SECTION 3. 71.07 (9g) (c) 5. of the statutes is created
32		-	to read:
33		-	71.07 (9g) (c) 5. Notwithstanding 26 USC 21 (c), for
34		-	taxable years beginning after December 31, 2023, the
35		-	maximum allowable expenses to determine the amount
36		-	of the credit under par. (b) 2. is $10,000 for one qualify-
37		-	ing individual, as defined in 26 USC 21 (b), and $20,000
38		-	for 2 or more qualifying individuals, as defined in 26
39		-	USC 21 (b).
40		-	* Section 991.11, WISCONSIN STATUTES: Effective date of acts. “Every act and every portion of an act enacted by the legislature over the governor’s
41		-	partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication.”
	1	+	LRB-5623/1
	2	+	JK:amn&cdc
	3	+	2023 - 2024 LEGISLATURE
	4	+	2023 ASSEMBLY BILL 1023
	5	+	January 29, 2024 - Introduced by Representatives BINSFELD, ALLEN, ARMSTRONG,
	6	+	AUGUST, BEHNKE, BORN, BRANDTJEN, DITTRICH, DONOVAN, EDMING, GOEBEN,
	7	+	GREEN, GUNDRUM, HURD, KATSMA, KRUG, KURTZ, MACCO, MAGNAFICI, MAXEY,
	8	+	MELOTIK, MOSES, MURPHY, MURSAU, NEDWESKI, O'CONNOR, OLDENBURG,
	9	+	PENTERMAN, PETRYK, PLUMER, RETTINGER, SCHRAA, SCHUTT, SNYDER, SPIROS,
	10	+	STEFFEN, TRANEL, WICHGERS, WITTKE and SWEARINGEN, cosponsored by
	11	+	Senators QUINN, BALLWEG, BRADLEY, CABRAL-GUEVARA, FELZKOWSKI, FEYEN,
	12	+	JAGLER, MARKLEIN, NASS, STROEBEL, TESTIN, WANGGAARD and TOMCZYK.
	13	+	Referred to Joint Committee on Finance.
	14	+	*AUTHORS SUBJECT TO CHANGE*
	15	+	AN ACT to renumber and amend 71.07 (9g) (b); and to create 71.07 (9g) (b) 2.
	16	+	and 71.07 (9g) (c) 5. of the statutes; relating to: expanding the child and
	17	+	dependent care credit.
	18	+	Analysis by the Legislative Reference Bureau
	19	+	Under current law, an individual who is eligible to claim the federal child and
	20	+	dependent care tax credit may claim a state income tax credit equal to 50 percent of
	21	+	the amount the individual may claim as a federal income tax credit. However, the
	22	+	amount of employment-related expenses that an individual may claim to determine
	23	+	the amount of the federal credit is limited to $3,000 if the individual has only one
	24	+	qualifying dependent, and $6,000 if the individual has two or more qualifying
	25	+	dependents.
	26	+	This bill increases the amount of the state credit that an individual may claim
	27	+	by increasing the employment-related expense limitation to $10,000 for one
	28	+	qualifying dependent and $20,000 for two or more qualifying dependents.
	29	+	For further information see the state fiscal estimate, which will be printed as
	30	+	an appendix to this bill.
	31	+	The people of the state of Wisconsin, represented in senate and assembly, do
	32	+	enact as follows:
	33	+	SECTION 1. 71.07 (9g) (b) of the statutes is renumbered 71.07 (9g) (b) 1. and
	34	+	amended to read:
	35	+	1
	36	+	2
	37	+	3
	38	+	4
	39	+	5 - 2 -2023 - 2024 Legislature LRB-5623/1
	40	+	JK:amn&cdc
	41	+	SECTION 1 ASSEMBLY BILL 1023
	42	+	71.07 (9g) (b) 1. For taxable years beginning after December 31, 2021, and
	43	+	before January 1, 2024, and subject to the limitations provided in this subsection, a
	44	+	claimant may claim as a credit against the tax imposed under s. 71.02, up to the
	45	+	amount of those taxes, an amount equal to 50 percent of the federal child and
	46	+	dependent care tax credit claimed by the claimant on his or her federal income tax
	47	+	return for the taxable year to which the claim under this subsection relates.
	48	+	SECTION 2. 71.07 (9g) (b) 2. of the statutes is created to read:
	49	+	71.07 (9g) (b) 2. For taxable years beginning after December 31, 2023, and
	50	+	subject to the limitations provided in this subsection, a claimant may claim as a
	51	+	credit against the tax imposed under s. 71.02, up to the amount of those taxes, an
	52	+	amount equal to 100 percent of the federal child and dependent care tax credit that
	53	+	the claimant may claim on his or her federal income tax return for the taxable year
	54	+	to which the claim under this subsection relates using the expense limitation under
	55	+	par. (c) 5. rather than the expense limitation under 26 USC 21 (c).
	56	+	SECTION 3. 71.07 (9g) (c) 5. of the statutes is created to read:
	57	+	71.07 (9g) (c) 5. Notwithstanding 26 USC 21 (c), for taxable years beginning
	58	+	after December 31, 2023, the maximum allowable expenses to determine the amount
	59	+	of the credit under par. (b) 2. is $10,000 for one qualifying individual, as defined in
	60	+	26 USC 21 (b), and $20,000 for 2 or more qualifying individuals, as defined in 26 USC
	61	+	21 (b).
	62	+	(END)
	63	+	1
	64	+	2
	65	+	3
	66	+	4
	67	+	5
	68	+	6
	69	+	7
	70	+	8
	71	+	9
	72	+	10
	73	+	11
	74	+	12
	75	+	13
	76	+	14
	77	+	15
	78	+	16
	79	+	17
	80	+	18
	81	+	19
	82	+	20
	83	+	21