Wisconsin 2025-2026 Regular Session

Wisconsin Assembly Bill AB52 Compare Versions

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

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1	1	2025 - 2026 LEGISLATURE
2	2	LRB-1296/1
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4	4	2025 ASSEMBLY BILL 52
5	5	February 20, 2025 - Introduced by Representatives BARE, MIRESSE, BROWN,
6	6	ANDERSON, ANDRACA, ARNEY, BILLINGS, CLANCY, CRUZ, DESANTO, DESMIDT,
7	7	DOYLE, EMERSON, FITZGERALD, GOODWIN, HAYWOOD, HONG, HYSELL, J.
8	8	JACOBSON, JOERS, JOHNSON, KIRSCH, MADISON, MAYADEV, MCCARVILLE,
9	9	MOORE OMOKUNDE, NEUBAUER, ORTIZ-VELEZ, PALMERI, PHELPS, PRADO,
10	10	MCGUIRE, RIVERA-WAGNER, ROE, SHEEHAN, SINICKI, SNODGRASS, SPAUDE,
11	11	STROUD, STUBBS, SUBECK, TAYLOR, TENORIO, UDELL and VINING, cosponsored
12	12	by Senators SPREITZER, L. JOHNSON, DASSLER-ALFHEIM, WALL, CARPENTER,
13	13	DRAKE, HABUSH SINYKIN, HESSELBEIN, KEYESKI, LARSON, RATCLIFF, ROYS,
14	14	PFAFF, SMITH and WIRCH. Referred to Committee on Ways and Means.
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16	16	*AUTHORS SUBJECT TO CHANGE*
17	17	AN ACT to repeal 71.54 (1) (g) 5. and 71.54 (1) (g) 7.; to amend 71.54 (1) (g)
18	18	(intro.), 71.54 (1) (g) 4., 71.54 (1) (g) 6. (intro.), 71.54 (2) (b) 4. and 71.54 (2m);
19	19	to create 71.54 (1) (h) and 71.54 (2) (b) 5. of the statutes; relating to:
20	20	expanding the homestead income tax credit.
21	21	Analysis by the Legislative Reference Bureau
22	22	Under current law, the homestead tax credit is a refundable income tax credit
23	23	that may be claimed by homeowners and renters. The credit is based on the
24	24	claimant[s household income and the amount of property taxes or rent constituting
25	25	property taxes on his or her Wisconsin homestead. Because the credit is
26	26	refundable, if the credit exceeds the claimant[s income tax liability, he or she
27	27	receives the excess as a refund check. Under current law, there are three key dollar
28	28	amounts used when calculating the credit:
29	29	1. If household income is $8,060 or less, the credit is 80 percent of the property
30	30	taxes or rent constituting property taxes. If household income exceeds $8,060, the
31	31	property taxes or rent constituting property taxes are reduced by 8.785 percent of
32	32	the household income exceeding $8,060, and the credit is 80 percent of the reduced
33	33	property taxes or rent constituting property taxes.
34	34	2. The credit may not be claimed if household income exceeds $24,680.
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38	38	4 2025 - 2026 Legislature
39	39	ASSEMBLY BILL 52
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42	42	3. The maximum property taxes or rent constituting property taxes used to
43	43	calculate the credit is $1,460.
44	44	Beginning with claims filed for the 2025 tax year, this bill reduces the
45	45	percentage used for household income over $8,060 from 8.785 to 5.614 percent and
46	46	increases the maximum income amount from $24,680 to $35,000. The bill also
47	47	indexes the $8,060, $35,000, and $1,460 amounts for inflation during future tax
48	48	years.
49	49	For further information see the state fiscal estimate, which will be printed as
50	50	an appendix to this bill.
51	51	The people of the state of Wisconsin, represented in senate and assembly, do
52	52	enact as follows:
53	53	SECTION 1. 71.54 (1) (g) (intro.) of the statutes is amended to read:
54	54	71.54 (1) (g) 2012 and thereafter to 2025. (intro.) The amount of any claim
55	55	filed in 2012 and thereafter to 2025 and based on property taxes accrued or rent
56	56	constituting property taxes accrued during the previous year is limited as follows:
57	57	SECTION 2. 71.54 (1) (g) 4. of the statutes is amended to read:
58	58	71.54 (1) (g) 4. Except as provided in subds. 5. and 7., for For claims filed in
59	59	2018 and thereafter and based on property taxes accrued or rent constituting
60	60	property taxes accrued during the previous year, no credit may be allowed under
61	61	this paragraph if the claimant has no earned income in the taxable year to which
62	62	the claim relates unless the claimant is disabled and provides the proof required
63	63	under subd. 6. or the claimant or the claimant[s spouse is over the age of 61 at the
64	64	close of the year to which the claim relates.
65	65	SECTION 3. 71.54 (1) (g) 5. of the statutes is repealed.
66	66	SECTION 4. 71.54 (1) (g) 6. (intro.) of the statutes is amended to read:
67	67	71.54 (1) (g) 6. (intro.) With regard to a claimant who is disabled, the A
68	68	claimant who is disabled shall provide with his or her return proof that his or her
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88	88	SECTION 4
89	89	disability is in effect for the taxable year to which the claim relates. Proof of
90	90	disability may be demonstrated by any of the following:
91	91	SECTION 5. 71.54 (1) (g) 7. of the statutes is repealed.
92	92	SECTION 6. 71.54 (1) (h) of the statutes is created to read:
93	93	71.54 (1) (h) 2026 and thereafter. Subject to sub. (2m), the amount of any
94	94	claim filed in 2026 and thereafter and based on property taxes accrued or rent
95	95	constituting property taxes accrued during the previous year is limited as follows:
96	96	1. If the household income was $8,060 or less in the year to which the claim
97	97	relates, the claim is limited to 80 percent of the property taxes accrued or rent
98	98	constituting property taxes accrued or both in that year on the claimant[s
99	99	homestead.
100	100	2. If the household income was more than $8,060 in the year to which the
101	101	claim relates, the claim is limited to 80 percent of the amount by which the property
102	102	taxes accrued or rent constituting property taxes accrued or both in that year on the
103	103	claimant[s homestead exceeds 5.614 percent of the household income exceeding
104	104	$8,060.
105	105	3. No credit may be allowed if the household income exceeds $35,000.
106	106	4. Notwithstanding the time limitations described in par. (g) (intro.), the
107	107	provisions of par. (g) 4. apply to claims filed under this paragraph.
108	108	SECTION 7. 71.54 (2) (b) 4. of the statutes is amended to read:
109	109	71.54 (2) (b) 4. In calendar years 2011 or any subsequent calendar year to
110	110	2024, $1,460.
111	111	SECTION 8. 71.54 (2) (b) 5. of the statutes is created to read:
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138	138	SECTION 8
139	139	71.54 (2) (b) 5. Subject to sub. (2m), in calendar year 2025 or any subsequent
140	140	calendar year, $1,460.
141	141	SECTION 9. 71.54 (2m) of the statutes is amended to read:
142	142	71.54 (2m) INDEXING FOR INFLATION; 2010 2026 AND THEREAFTER. (a) For
143	143	calendar years beginning after December 31, 2009, and before January 1, 2011
144	144	2025, the dollar amounts of the threshold income under sub. (1) (f) (h) 1. and 2., the
145	145	maximum household income under sub. (1) (f) (h) 3., and the maximum property
146	146	taxes under sub. (2) (b) 3. 5. shall be increased each year by a percentage equal to
147	147	the percentage change between the U.S. consumer price index for all urban
148	148	consumers, U.S. city average, for the 12-month average of the U.S. consumer price
149	149	index for the month of August of the year before the previous year through the
150	150	month of July of the previous year and the U.S. consumer price index for all urban
151	151	consumers, U.S. city average, for the 12-month average of the U.S. consumer price
152	152	index for August 2007 2023 through July 2008 2024, as determined by the federal
153	153	department of labor, except that the adjustment may occur only if the percentage is
154	154	a positive number. Each amount that is revised under this paragraph shall be
155	155	rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10
156	156	or, if the revised amount is a multiple of $5, such an amount shall be increased to
157	157	the next higher multiple of $10. The department of revenue shall annually adjust
158	158	the changes in dollar amounts required under this paragraph and incorporate the
159	159	changes into the income tax forms and instructions.
160	160	(b) The department of revenue shall annually adjust the slope under sub. (1)
161	161	(f) (h) 2. such so that, as a claimant[s income increases from the threshold income as
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185	185	ASSEMBLY BILL 52
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187	187	KP:cdc
188	188	SECTION 9
189	189	calculated adjusted under par. (a), to an amount that exceeds the maximum
190	190	household income as calculated adjusted under par. (a), the credit that may be
191	191	claimed is reduced to $0, and the department of revenue shall incorporate the
192	192	changes into the income tax forms and instructions.
193	193	SECTION 10. Initial applicability.
194	194	(1) HOMESTEAD TAX CREDIT. The treatment of s. 71.54 (1) (h) first applies to
195	195	claims filed for taxable years beginning after December 31, 2024.
196	196	(END)
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