Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB227 Compare Versions

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

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 SENATE BILL 227
5	5	April 14, 2023 - Introduced by Senators CABRAL-GUEVARA and QUINN, cosponsored
6	6	by Representatives STEFFEN, ALLEN, ARMSTRONG, BEHNKE, GUNDRUM,
7	7	KITCHENS, O'CONNOR and ROZAR. Referred to Committee on Universities and
8	8	Revenue.
9	9	*AUTHORS SUBJECT TO CHANGE*
10	10	AN ACT to amend 20.835 (2) (f) (title), 20.835 (2) (ff) (title), 20.835 (2) (kf) (title),
11	11	49.175 (1) (zh), 71.07 (9e) (title), 71.10 (4) (i), 71.83 (5) (a) 1., 73.03 (48), 73.03
12	12	(73) (b), 73.03 (73) (c) 2., 73.03 (73) (c) 3. and 73.03 (73) (f) 1. of the statutes;
13	13	relating to: changing the name of the earned income tax credit.
14	14	Analysis by the Legislative Reference Bureau
15	15	This bill changes the name of the earned income tax credit to the earned income
16	16	child care tax credit. Under current law, the Wisconsin EITC is equal to a percentage
17	17	of the federal EITC. The percentage is 4 percent of the federal EITC if the claimant
18	18	has one qualifying child, 11 percent if the claimant has two qualifying children, and
19	19	34 percent if the claimant has three or more qualifying children. The credit is
20	20	refundable, which means that if the credit exceeds the claimant's tax liability, he or
21	21	she will receive the difference as a refund check. The EITC on both the state and
22	22	federal levels is intended to provide financial assistance to low-income families with
23	23	dependent children.
24	24	For further information see the state fiscal estimate, which will be printed as
25	25	an appendix to this bill.
26	26	The people of the state of Wisconsin, represented in senate and assembly, do
27	27	enact as follows:
28	28	SECTION 1. 20.835 (2) (f) (title) of the statutes is amended to read:
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35	35	SECTION 1 SENATE BILL 227
36	36	20.835 (2) (f) (title) Earned income child care tax credit.
37	37	SECTION 2. 20.835 (2) (ff) (title) of the statutes is amended to read:
38	38	20.835 (2) (ff) (title) Earned income child care tax credit; periodic payments.
39	39	SECTION 3. 20.835 (2) (kf) (title) of the statutes is amended to read:
40	40	20.835 (2) (kf) (title) Earned income child care tax credit; temporary assistance
41	41	for needy families.
42	42	SECTION 4. 49.175 (1) (zh) of the statutes is amended to read:
43	43	49.175 (1) (zh) Earned income child care tax credit supplement. For the
44	44	transfer of moneys from the appropriation account under s. 20.437 (2) (md) to the
45	45	appropriation account under s. 20.835 (2) (kf) for the earned income child care tax
46	46	credit, $63,600,000 in fiscal year 2021-22 and $66,600,000 in fiscal year 2022-23.
47	47	SECTION 5. 71.07 (9e) (title) of the statutes is amended to read:
48	48	71.07 (9e) (title) EARNED INCOME CHILD CARE TAX CREDIT.
49	49	SECTION 6. 71.10 (4) (i) of the statutes is amended to read:
50	50	71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
51	51	preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
52	52	beyond under s. 71.613, homestead credit under subch. VIII, jobs tax credit under s.
53	53	71.07 (3q), business development credit under s. 71.07 (3y), research credit under s.
54	54	71.07 (4k) (e) 2. a., veterans and surviving spouses property tax credit under s. 71.07
55	55	(6e), enterprise zone jobs credit under s. 71.07 (3w), electronics and information
56	56	technology manufacturing zone credit under s. 71.07 (3wm), earned income child
57	57	care tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes
58	58	withheld under subch. X.
59	59	SECTION 7. 71.83 (5) (a) 1. of the statutes is amended to read:
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86	86	SECTION 7
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88	88	71.83 (5) (a) 1. “Credit" means the earned income child care tax credit under
89	89	s. 71.07 (9e), the homestead credit under subch. VIII, the farmland preservation
90	90	credit under subch. IX, or any refundable credit under s. 71.07, 71.28, or 71.47.
91	91	SECTION 8. 73.03 (48) of the statutes is amended to read:
92	92	73.03 (48) To provide the public with information concerning the availability
93	93	of the earned income child care tax credit, and the availability of the federal earned
94	94	income tax credit under section 32 of the internal revenue code, under criteria, and
95	95	with a description of the methods that the department uses to provide the
96	96	information, that the department shall promulgate as rules.
97	97	SECTION 9. 73.03 (73) (b) of the statutes is amended to read:
98	98	73.03 (73) (b) Under the pilot program, the Internal Revenue Service would
99	99	determine the amount of earned income child care tax credit that could likely be
100	100	claimed by 100 randomly selected residents of Wisconsin for taxable year 2019 and
101	101	taxable year 2020, based on criteria selected by the Internal Revenue Service. The
102	102	department and the Internal Revenue Service shall make every effort to ensure that
103	103	each individual or married couple selected will be eligible to claim the credit for those
104	104	taxable years, and that the credit amount for which he or she will likely be eligible
105	105	will be in excess of $600 each year. At the beginning of each taxable year, the Internal
106	106	Revenue Service would forward to the department the total amount of payments
107	107	those 100 claimants would likely be eligible to claim for that taxable year, specifying
108	108	the amounts allotted to each claimant. The department shall deposit such amounts
109	109	in the general fund.
110	110	SECTION 10. 73.03 (73) (c) 2. of the statutes is amended to read:
111	111	73.03 (73) (c) 2. For the test group, based on the amount of the federal and state
112	112	earned income tax credit and the state earned income child care tax credit that each
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139	139	SECTION 10 SENATE BILL 227
140	140	claimant would likely be eligible to receive based on his or her estimated taxable year
141	141	2019 and 2020 income tax returns, each claimant would receive one-eleventh of his
142	142	or her likely federal credit amount each month except for the month following the
143	143	month in which the claimant receives the credit claimed on his or her tax return, from
144	144	the department, from the general fund, except that the maximum total amount that
145	145	each claimant could receive under this subdivision, annually, would be two-thirds
146	146	of his or her likely credit amount. Any excess amount of federal and state credit for
147	147	which the claimant is eligible could be claimed for that taxable year on his or her
148	148	federal income tax return, under s. 71.07 (9e), or under the terms of the agreement
149	149	under par. (a).
150	150	SECTION 11. 73.03 (73) (c) 3. of the statutes is amended to read:
151	151	73.03 (73) (c) 3. The department shall also establish a 2nd test group of 100
152	152	claimants who are likely to be eligible to claim the earned income child care tax credit
153	153	for taxable years 2019 and 2020, who will receive their earned income child care tax
154	154	credit after filing their individual income tax returns, and compare their financial
155	155	stability to that of the other test group.
156	156	SECTION 12. 73.03 (73) (f) 1. of the statutes is amended to read:
157	157	73.03 (73) (f) 1. Subject to subd. 2., for taxable years beginning after December
158	158	31, 2020, the department shall make the pilot program described under par. (b)
159	159	permanent and applicable to all eligible claimants of the earned income child care
160	160	tax credit under s. 71.07 (9e) (aj), based on the specifications described under pars.
161	161	(b) and (c) 2.
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