Wisconsin Assembly Bill AB820

Wisconsin 2023-2024 Regular Session

• Introduced: 12/8/23
• Refer: 12/8/23
• Failed: 4/15/24

Caption

A tax credit for recipients of deferred action under the Deferred Action for Childhood Arrivals program. (FE)

Impact

Should AB820 be enacted, it would amend the existing tax statute to include provisions specifically relating to the DACA recipient credit. This change in the law is expected to provide a tangible benefit to many individuals whose status under the DACA program allows them to work and contribute economically to the state. Supporters of the bill argue that it acknowledges the unique situation of DACA recipients, providing them a small but important financial incentive that could aid in their economic stability. The anticipated result is a positive response from the DACA community, contributing to broader tax equity discussions.

Summary

Assembly Bill 820 proposes to introduce a $250 nonrefundable income tax credit for individuals who have been granted deferred action under the Deferred Action for Childhood Arrivals (DACA) program. This initiative aims to provide some financial relief to DACA recipients by allowing them to reduce their tax obligation, while also recognizing their contributions to the state. The credit is designed to be claimed for taxable years starting after December 31, 2023, providing a timeline for the implementation of the program to ensure compliance with the necessary requirements.

Contention

There are likely to be points of contention surrounding AB820, particularly concerning its implications for individuals not covered by the DACA program and the broader context of immigration-related tax policies. Critics may argue that providing such credits could inspire further debate around the fairness of tax benefits extended to specific groups based on immigration status, and how this aligns with existing tax policies. The bill's reception will hinge on how lawmakers and the public perceive the balance between supporting this vulnerable group and addressing the broader concerns associated with immigration in the tax code.