Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB976 Compare Versions

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

Old	New	Differences
1	1	LRB-5676/1
2	2	JK:amn&cdc
3	3	2023 - 2024 LEGISLATURE
4	4	2023 SENATE BILL 976
5	5	January 30, 2024 - Introduced by Senators Q UINN, BALLWEG, BRADLEY,
6	6	CABRAL-GUEVARA, FELZKOWSKI, FEYEN, JAGLER, MARKLEIN, NASS, STROEBEL,
7	7	TESTIN and WANGGAARD, cosponsored by Representatives BINSFELD, ALLEN,
8	8	ARMSTRONG, AUGUST, BEHNKE, BORN, BRANDTJEN, DITTRICH, DONOVAN, EDMING,
9	9	GOEBEN, GREEN, GUNDRUM, HURD, KATSMA, KRUG, KURTZ, MACCO, MAGNAFICI,
10	10	MAXEY, MELOTIK, MOSES, MURPHY, MURSAU, NEDWESKI, O'CONNOR, OLDENBURG,
11	11	PENTERMAN, PETRYK, PLUMER, RETTINGER, SCHRAA, SCHUTT, SNYDER, SPIROS,
12	12	STEFFEN, TRANEL, WICHGERS, WITTKE and SWEARINGEN. Referred to Joint
13	13	Committee on Finance.
14	14	*AUTHORS SUBJECT TO CHANGE*
15	15	AN ACT to renumber and amend 71.07 (9g) (b); and to create 71.07 (9g) (b) 2.
16	16	and 71.07 (9g) (c) 5. of the statutes; relating to: expanding the child and
17	17	dependent care credit.
18	18	Analysis by the Legislative Reference Bureau
19	19	Under current law, an individual who is eligible to claim the federal child and
20	20	dependent care tax credit may claim a state income tax credit equal to 50 percent of
21	21	the amount the individual may claim as a federal income tax credit. However, the
22	22	amount of employment-related expenses that an individual may claim to determine
23	23	the amount of the federal credit is limited to $3,000 if the individual has only one
24	24	qualifying dependent, and $6,000 if the individual has two or more qualifying
25	25	dependents.
26	26	This bill increases the amount of the state credit that an individual may claim
27	27	by increasing the employment-related expense limitation to $10,000 for one
28	28	qualifying dependent and $20,000 for two or more qualifying dependents.
29	29	For further information see the state fiscal estimate, which will be printed as
30	30	an appendix to this bill.
31	31	The people of the state of Wisconsin, represented in senate and assembly, do
32	32	enact as follows:
33	33	SECTION 1. 71.07 (9g) (b) of the statutes is renumbered 71.07 (9g) (b) 1. and
34	34	amended to read:
35	35	1
36	36	2
37	37	3
38	38	4
39	39	5 - 2 -2023 - 2024 Legislature LRB-5676/1
40	40	JK:amn&cdc
41	41	SECTION 1 SENATE BILL 976
42	42	71.07 (9g) (b) 1. For taxable years beginning after December 31, 2021, and
43	43	before January 1, 2024, and subject to the limitations provided in this subsection, a
44	44	claimant may claim as a credit against the tax imposed under s. 71.02, up to the
45	45	amount of those taxes, an amount equal to 50 percent of the federal child and
46	46	dependent care tax credit claimed by the claimant on his or her federal income tax
47	47	return for the taxable year to which the claim under this subsection relates.
48	48	SECTION 2. 71.07 (9g) (b) 2. of the statutes is created to read:
49	49	71.07 (9g) (b) 2. For taxable years beginning after December 31, 2023, and
50	50	subject to the limitations provided in this subsection, a claimant may claim as a
51	51	credit against the tax imposed under s. 71.02, up to the amount of those taxes, an
52	52	amount equal to 100 percent of the federal child and dependent care tax credit that
53	53	the claimant may claim on his or her federal income tax return for the taxable year
54	54	to which the claim under this subsection relates using the expense limitation under
55	55	par. (c) 5. rather than the expense limitation under 26 USC 21 (c).
56	56	SECTION 3. 71.07 (9g) (c) 5. of the statutes is created to read:
57	57	71.07 (9g) (c) 5. Notwithstanding 26 USC 21 (c), for taxable years beginning
58	58	after December 31, 2023, the maximum allowable expenses to determine the amount
59	59	of the credit under par. (b) 2. is $10,000 for one qualifying individual, as defined in
60	60	26 USC 21 (b), and $20,000 for 2 or more qualifying individuals, as defined in 26 USC
61	61	21 (b).
62	62	(END)
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