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2023 - 2024 LEGISLATURE
2023 SENATE BILL 398
August 25, 2023 - Introduced by Senators HUTTON, NASS, HESSELBEIN and TAYLOR,
cosponsored by Representatives STEFFEN, ARMSTRONG, ANDRACA, BALDEH,
CABRERA, DONOVAN, GOEBEN, S. JOHNSON, MAGNAFICI, MAXEY, MELOTIK,
MURPHY, NEDWESKI, O'CONNOR, OHNSTAD, ORTIZ-VELEZ, SCHMIDT, SINICKI,
SUBECK, WICHGERS and WITTKE. Referred to Committee on Universities and
Revenue.
AN ACT to create 71.07 (11) and 71.10 (4) (cw) of the statutes; relating to: a tax
credit for transportation services for blind workers.
Analysis by the Legislative Reference Bureau
This bill creates a nonrefundable income tax credit for the costs of
transportation services paid by a person considered blind for federal income tax
purposes for certain transportation between the person's residence and place of
employment. The transportation services eligible for the credit must be provided by
mass transit, paratransit, taxicab, or a transportation network company. The credit
is equal to 50 percent of the cost of those transportation services paid during a
taxable year, and is limited to a maximum credit of $1,500 per taxable year. A
claimant may not claim a credit under the bill for amounts paid if funds from an
ABLE account under section 529A of the Internal Revenue Code are used for the
payment and the person who deposited those funds into the ABLE account claimed
a state individual income tax subtraction for depositing the funds. Federal law
allows individuals to establish ABLE accounts, which are tax-exempt savings
accounts for paying for certain qualified expenses for a beneficiary with a disability,
and current law authorizes a state individual income tax subtraction for certain
amounts deposited into an ABLE account.
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:
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SECTION 1 SENATE BILL 398
SECTION 1. 71.07 (11) of the statutes is created to read:
71.07 (11) QUALIFYING TRANSPORTATION SERVICES CREDIT. (a) Definitions. In this
subsection:
1. “Claimant” means a person who is considered blind under section 63 (f) (4)
of the Internal Revenue Code and who files a claim under this subsection.
2. “Qualifying transportation services” means transportation services provided
between a person's place of residence and place of employment by means of mass
transit, paratransit, taxicab, or transportation network company, as defined in s.
440.40 (6).
(b) Filing claims. For taxable years beginning after December 31, 2022, 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 amount paid by the claimant during the taxable
year for qualifying transportation services.
(c) Limitations. 1. No credit may be allowed under this subsection for an
amount paid for qualifying transportation services if the source of the payment is an
amount withdrawn from an ABLE account described under section 529A (b) (1) of the
Internal Revenue Code and if the owner of the account or other person who deposited
into the account has claimed a subtraction under s. 71.05 (6) (b) 52. that relates to
such an amount.
2. No credit may be allowed under this subsection for an amount paid for
qualifying transportation services if the claimant is reimbursed for the amount paid.
3. The maximum amount of the credit that a claimant may claim under this
subsection in a taxable year is $1,500.
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SECTION 1
SENATE BILL 398
4. No credit may be allowed under this subsection unless it is claimed within
the period specified in s. 71.75 (2).
(d) Administration. Subsection (9e) (d), to the extent that it applies to the credit
under that subsection, applies to the credit under this subsection.
SECTION 2. 71.10 (4) (cw) of the statutes is created to read:
71.10 (4) (cw) Qualifying transportation services credit under s. 71.07 (11).
(END)
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