Wisconsin 2025-2026 Regular Session

Wisconsin Senate Bill SB60 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-2169/1
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4	4	2025 SENATE BILL 60
5	5	February 21, 2025 - Introduced by Senators SPREITZER, L. JOHNSON, DASSLER-
6	6	ALFHEIM, WALL, CARPENTER, DRAKE, HABUSH SINYKIN, HESSELBEIN, KEYESKI,
7	7	LARSON, RATCLIFF, ROYS, PFAFF, SMITH and WIRCH, cosponsored by
8	8	Representatives BARE, MIRESSE, BROWN, ANDERSON, ANDRACA, ARNEY,
9	9	BILLINGS, CLANCY, CRUZ, DESANTO, DESMIDT, DOYLE, EMERSON, FITZGERALD,
10	10	GOODWIN, HAYWOOD, HONG, HYSELL, J. JACOBSON, JOERS, JOHNSON, KIRSCH,
11	11	MADISON, MAYADEV, MCCARVILLE, MOORE OMOKUNDE, NEUBAUER, ORTIZ-
12	12	VELEZ, PALMERI, PHELPS, PRADO, MCGUIRE, RIVERA-WAGNER, ROE, SHEEHAN,
13	13	SINICKI, SNODGRASS, SPAUDE, STROUD, STUBBS, SUBECK, TAYLOR, TENORIO,
14	14	UDELL and VINING. Referred to Committee on Agriculture and Revenue.
15	15	AN ACT to repeal 71.54 (1) (g) 5. and 71.54 (1) (g) 7.; to amend 71.54 (1) (g)
16	16	(intro.), 71.54 (1) (g) 4., 71.54 (1) (g) 6. (intro.), 71.54 (2) (b) 4. and 71.54 (2m);
17	17	to create 71.54 (1) (h) and 71.54 (2) (b) 5. of the statutes; relating to:
18	18	expanding the homestead income tax credit.
19	19	Analysis by the Legislative Reference Bureau
20	20	Under current law, the homestead tax credit is a refundable income tax credit
21	21	that may be claimed by homeowners and renters. The credit is based on the
22	22	claimant[s household income and the amount of property taxes or rent constituting
23	23	property taxes on his or her Wisconsin homestead. Because the credit is
24	24	refundable, if the credit exceeds the claimant[s income tax liability, he or she
25	25	receives the excess as a refund check. Under current law, there are three key dollar
26	26	amounts used when calculating the credit:
27	27	1. If household income is $8,060 or less, the credit is 80 percent of the property
28	28	taxes or rent constituting property taxes. If household income exceeds $8,060, the
29	29	property taxes or rent constituting property taxes are reduced by 8.785 percent of
30	30	the household income exceeding $8,060, and the credit is 80 percent of the reduced
31	31	property taxes or rent constituting property taxes.
32	32	2. The credit may not be claimed if household income exceeds $24,680.
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36	36	4 2025 - 2026 Legislature
37	37	SENATE BILL 60
38	38	- 2 - LRB-2169/1
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40	40	3. The maximum property taxes or rent constituting property taxes used to
41	41	calculate the credit is $1,460.
42	42	Beginning with claims filed for the 2025 tax year, this bill reduces the
43	43	percentage used for household income over $8,060 from 8.785 to 5.614 percent and
44	44	increases the maximum income amount from $24,680 to $35,000. The bill also
45	45	indexes the $8,060, $35,000, and $1,460 amounts for inflation during future tax
46	46	years.
47	47	For further information see the state fiscal estimate, which will be printed as
48	48	an appendix to this bill.
49	49	The people of the state of Wisconsin, represented in senate and assembly, do
50	50	enact as follows:
51	51	SECTION 1. 71.54 (1) (g) (intro.) of the statutes is amended to read:
52	52	71.54 (1) (g) 2012 and thereafter to 2025. (intro.) The amount of any claim
53	53	filed in 2012 and thereafter to 2025 and based on property taxes accrued or rent
54	54	constituting property taxes accrued during the previous year is limited as follows:
55	55	SECTION 2. 71.54 (1) (g) 4. of the statutes is amended to read:
56	56	71.54 (1) (g) 4. Except as provided in subds. 5. and 7., for For claims filed in
57	57	2018 and thereafter and based on property taxes accrued or rent constituting
58	58	property taxes accrued during the previous year, no credit may be allowed under
59	59	this paragraph if the claimant has no earned income in the taxable year to which
60	60	the claim relates unless the claimant is disabled and provides the proof required
61	61	under subd. 6. or the claimant or the claimant[s spouse is over the age of 61 at the
62	62	close of the year to which the claim relates.
63	63	SECTION 3. 71.54 (1) (g) 5. of the statutes is repealed.
64	64	SECTION 4. 71.54 (1) (g) 6. (intro.) of the statutes is amended to read:
65	65	71.54 (1) (g) 6. (intro.) With regard to a claimant who is disabled, the A
66	66	claimant who is disabled shall provide with his or her return proof that his or her
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83	83	SENATE BILL 60
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86	86	SECTION 4
87	87	disability is in effect for the taxable year to which the claim relates. Proof of
88	88	disability may be demonstrated by any of the following:
89	89	SECTION 5. 71.54 (1) (g) 7. of the statutes is repealed.
90	90	SECTION 6. 71.54 (1) (h) of the statutes is created to read:
91	91	71.54 (1) (h) 2026 and thereafter. Subject to sub. (2m), the amount of any
92	92	claim filed in 2026 and thereafter and based on property taxes accrued or rent
93	93	constituting property taxes accrued during the previous year is limited as follows:
94	94	1. If the household income was $8,060 or less in the year to which the claim
95	95	relates, the claim is limited to 80 percent of the property taxes accrued or rent
96	96	constituting property taxes accrued or both in that year on the claimant[s
97	97	homestead.
98	98	2. If the household income was more than $8,060 in the year to which the
99	99	claim relates, the claim is limited to 80 percent of the amount by which the property
100	100	taxes accrued or rent constituting property taxes accrued or both in that year on the
101	101	claimant[s homestead exceeds 5.614 percent of the household income exceeding
102	102	$8,060.
103	103	3. No credit may be allowed if the household income exceeds $35,000.
104	104	4. Notwithstanding the time limitations described in par. (g) (intro.), the
105	105	provisions of par. (g) 4. apply to claims filed under this paragraph.
106	106	SECTION 7. 71.54 (2) (b) 4. of the statutes is amended to read:
107	107	71.54 (2) (b) 4. In calendar years 2011 or any subsequent calendar year to
108	108	2024, $1,460.
109	109	SECTION 8. 71.54 (2) (b) 5. of the statutes is created to read:
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133	133	SENATE BILL 60
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136	136	SECTION 8
137	137	71.54 (2) (b) 5. Subject to sub. (2m), in calendar year 2025 or any subsequent
138	138	calendar year, $1,460.
139	139	SECTION 9. 71.54 (2m) of the statutes is amended to read:
140	140	71.54 (2m) INDEXING FOR INFLATION; 2010 2026 AND THEREAFTER. (a) For
141	141	calendar years beginning after December 31, 2009, and before January 1, 2011
142	142	2025, the dollar amounts of the threshold income under sub. (1) (f) (h) 1. and 2., the
143	143	maximum household income under sub. (1) (f) (h) 3., and the maximum property
144	144	taxes under sub. (2) (b) 3. 5. shall be increased each year by a percentage equal to
145	145	the percentage change between the U.S. consumer price index for all urban
146	146	consumers, U.S. city average, for the 12-month average of the U.S. consumer price
147	147	index for the month of August of the year before the previous year through the
148	148	month of July of the previous year and the U.S. consumer price index for all urban
149	149	consumers, U.S. city average, for the 12-month average of the U.S. consumer price
150	150	index for August 2007 2023 through July 2008 2024, as determined by the federal
151	151	department of labor, except that the adjustment may occur only if the percentage is
152	152	a positive number. Each amount that is revised under this paragraph shall be
153	153	rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10
154	154	or, if the revised amount is a multiple of $5, such an amount shall be increased to
155	155	the next higher multiple of $10. The department of revenue shall annually adjust
156	156	the changes in dollar amounts required under this paragraph and incorporate the
157	157	changes into the income tax forms and instructions.
158	158	(b) The department of revenue shall annually adjust the slope under sub. (1)
159	159	(f) (h) 2. such so that, as a claimant[s income increases from the threshold income as
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183	183	SENATE BILL 60
184	184	- 5 - LRB-2169/1
185	185	KP:cdc
186	186	SECTION 9
187	187	calculated adjusted under par. (a), to an amount that exceeds the maximum
188	188	household income as calculated adjusted under par. (a), the credit that may be
189	189	claimed is reduced to $0, and the department of revenue shall incorporate the
190	190	changes into the income tax forms and instructions.
191	191	SECTION 10. Initial applicability.
192	192	(1) HOMESTEAD TAX CREDIT. The treatment of s. 71.54 (1) (h) first applies to
193	193	claims filed for taxable years beginning after December 31, 2024.
194	194	(END)
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