Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB228 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	LRB-1191/1
2	2	JK:cdc
3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 228
5	5	April 5, 2023 - Introduced by Representatives STEFFEN, ALLEN, ARMSTRONG,
6	6	BEHNKE, GUNDRUM, KITCHENS, O'CONNOR and ROZAR, cosponsored by Senators
7	7	CABRAL-GUEVARA and QUINN. Referred to Committee on Ways and Means.
8	8	*AUTHORS SUBJECT TO CHANGE*
9	9	AN ACT to amend 20.835 (2) (f) (title), 20.835 (2) (ff) (title), 20.835 (2) (kf) (title),
10	10	49.175 (1) (zh), 71.07 (9e) (title), 71.10 (4) (i), 71.83 (5) (a) 1., 73.03 (48), 73.03
11	11	(73) (b), 73.03 (73) (c) 2., 73.03 (73) (c) 3. and 73.03 (73) (f) 1. of the statutes;
12	12	relating to: changing the name of the earned income tax credit.
13	13	Analysis by the Legislative Reference Bureau
14	14	This bill changes the name of the earned income tax credit to the earned income
15	15	child care tax credit. Under current law, the Wisconsin EITC is equal to a percentage
16	16	of the federal EITC. The percentage is 4 percent of the federal EITC if the claimant
17	17	has one qualifying child, 11 percent if the claimant has two qualifying children, and
18	18	34 percent if the claimant has three or more qualifying children. The credit is
19	19	refundable, which means that if the credit exceeds the claimant's tax liability, he or
20	20	she will receive the difference as a refund check. The EITC on both the state and
21	21	federal levels is intended to provide financial assistance to low-income families with
22	22	dependent children.
23	23	For further information see the state fiscal estimate, which will be printed as
24	24	an appendix to this bill.
25	25	The people of the state of Wisconsin, represented in senate and assembly, do
26	26	enact as follows:
27	27	SECTION 1. 20.835 (2) (f) (title) of the statutes is amended to read:
28	28	1
29	29	2
30	30	3
31	31	4
32	32	5 - 2 -2023 - 2024 Legislature LRB-1191/1
33	33	JK:cdc
34	34	SECTION 1 ASSEMBLY BILL 228
35	35	20.835 (2) (f) (title) Earned income child care tax credit.
36	36	SECTION 2. 20.835 (2) (ff) (title) of the statutes is amended to read:
37	37	20.835 (2) (ff) (title) Earned income child care tax credit; periodic payments.
38	38	SECTION 3. 20.835 (2) (kf) (title) of the statutes is amended to read:
39	39	20.835 (2) (kf) (title) Earned income child care tax credit; temporary assistance
40	40	for needy families.
41	41	SECTION 4. 49.175 (1) (zh) of the statutes is amended to read:
42	42	49.175 (1) (zh) Earned income child care tax credit supplement. For the
43	43	transfer of moneys from the appropriation account under s. 20.437 (2) (md) to the
44	44	appropriation account under s. 20.835 (2) (kf) for the earned income child care tax
45	45	credit, $63,600,000 in fiscal year 2021-22 and $66,600,000 in fiscal year 2022-23.
46	46	SECTION 5. 71.07 (9e) (title) of the statutes is amended to read:
47	47	71.07 (9e) (title) EARNED INCOME CHILD CARE TAX CREDIT.
48	48	SECTION 6. 71.10 (4) (i) of the statutes is amended to read:
49	49	71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
50	50	preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
51	51	beyond under s. 71.613, homestead credit under subch. VIII, jobs tax credit under s.
52	52	71.07 (3q), business development credit under s. 71.07 (3y), research credit under s.
53	53	71.07 (4k) (e) 2. a., veterans and surviving spouses property tax credit under s. 71.07
54	54	(6e), enterprise zone jobs credit under s. 71.07 (3w), electronics and information
55	55	technology manufacturing zone credit under s. 71.07 (3wm), earned income child
56	56	care tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes
57	57	withheld under subch. X.
58	58	SECTION 7. 71.83 (5) (a) 1. of the statutes is amended to read:
59	59	1
60	60	2
61	61	3
62	62	4
63	63	5
64	64	6
65	65	7
66	66	8
67	67	9
68	68	10
69	69	11
70	70	12
71	71	13
72	72	14
73	73	15
74	74	16
75	75	17
76	76	18
77	77	19
78	78	20
79	79	21
80	80	22
81	81	23
82	82	24 - 3 -2023 - 2024 Legislature
83	83	LRB-1191/1
84	84	JK:cdc
85	85	SECTION 7
86	86	ASSEMBLY BILL 228
87	87	71.83 (5) (a) 1. “Credit" means the earned income child care tax credit under
88	88	s. 71.07 (9e), the homestead credit under subch. VIII, the farmland preservation
89	89	credit under subch. IX, or any refundable credit under s. 71.07, 71.28, or 71.47.
90	90	SECTION 8. 73.03 (48) of the statutes is amended to read:
91	91	73.03 (48) To provide the public with information concerning the availability
92	92	of the earned income child care tax credit, and the availability of the federal earned
93	93	income tax credit under section 32 of the internal revenue code, under criteria, and
94	94	with a description of the methods that the department uses to provide the
95	95	information, that the department shall promulgate as rules.
96	96	SECTION 9. 73.03 (73) (b) of the statutes is amended to read:
97	97	73.03 (73) (b) Under the pilot program, the Internal Revenue Service would
98	98	determine the amount of earned income child care tax credit that could likely be
99	99	claimed by 100 randomly selected residents of Wisconsin for taxable year 2019 and
100	100	taxable year 2020, based on criteria selected by the Internal Revenue Service. The
101	101	department and the Internal Revenue Service shall make every effort to ensure that
102	102	each individual or married couple selected will be eligible to claim the credit for those
103	103	taxable years, and that the credit amount for which he or she will likely be eligible
104	104	will be in excess of $600 each year. At the beginning of each taxable year, the Internal
105	105	Revenue Service would forward to the department the total amount of payments
106	106	those 100 claimants would likely be eligible to claim for that taxable year, specifying
107	107	the amounts allotted to each claimant. The department shall deposit such amounts
108	108	in the general fund.
109	109	SECTION 10. 73.03 (73) (c) 2. of the statutes is amended to read:
110	110	73.03 (73) (c) 2. For the test group, based on the amount of the federal and state
111	111	earned income tax credit and the state earned income child care tax credit that each
112	112	1
113	113	2
114	114	3
115	115	4
116	116	5
117	117	6
118	118	7
119	119	8
120	120	9
121	121	10
122	122	11
123	123	12
124	124	13
125	125	14
126	126	15
127	127	16
128	128	17
129	129	18
130	130	19
131	131	20
132	132	21
133	133	22
134	134	23
135	135	24
136	136	25 - 4 -2023 - 2024 Legislature LRB-1191/1
137	137	JK:cdc
138	138	SECTION 10 ASSEMBLY BILL 228
139	139	claimant would likely be eligible to receive based on his or her estimated taxable year
140	140	2019 and 2020 income tax returns, each claimant would receive one-eleventh of his
141	141	or her likely federal credit amount each month except for the month following the
142	142	month in which the claimant receives the credit claimed on his or her tax return, from
143	143	the department, from the general fund, except that the maximum total amount that
144	144	each claimant could receive under this subdivision, annually, would be two-thirds
145	145	of his or her likely credit amount. Any excess amount of federal and state credit for
146	146	which the claimant is eligible could be claimed for that taxable year on his or her
147	147	federal income tax return, under s. 71.07 (9e), or under the terms of the agreement
148	148	under par. (a).
149	149	SECTION 11. 73.03 (73) (c) 3. of the statutes is amended to read:
150	150	73.03 (73) (c) 3. The department shall also establish a 2nd test group of 100
151	151	claimants who are likely to be eligible to claim the earned income child care tax credit
152	152	for taxable years 2019 and 2020, who will receive their earned income child care tax
153	153	credit after filing their individual income tax returns, and compare their financial
154	154	stability to that of the other test group.
155	155	SECTION 12. 73.03 (73) (f) 1. of the statutes is amended to read:
156	156	73.03 (73) (f) 1. Subject to subd. 2., for taxable years beginning after December
157	157	31, 2020, the department shall make the pilot program described under par. (b)
158	158	permanent and applicable to all eligible claimants of the earned income child care
159	159	tax credit under s. 71.07 (9e) (aj), based on the specifications described under pars.
160	160	(b) and (c) 2.
161	161	(END)
162	162	1
163	163	2
164	164	3
165	165	4
166	166	5
167	167	6
168	168	7
169	169	8
170	170	9
171	171	10
172	172	11
173	173	12
174	174	13
175	175	14
176	176	15
177	177	16
178	178	17
179	179	18
180	180	19
181	181	20
182	182	21
183	183	22
184	184	23