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Bill > AB458

WI AB458

WI AB458
Expanding the homestead income tax credit. (FE)

summary

Introduced
09/28/2023
In Committee
09/28/2023
Crossed Over
Passed
Dead
04/15/2024

Introduced Session

2023-2024 Regular Session

Bill Summary

Under current law, the homestead tax credit is a refundable income tax credit that may be claimed by homeowners and renters. The credit is based on the claimant's household income and the amount of property taxes or rent constituting property taxes on his or her Wisconsin homestead. Because the credit is refundable, if the credit exceeds the claimant's income tax liability, he or she receives the excess as a refund check. Under current law, there are three key dollar amounts used when calculating the credit: 1. If household income is $8,060 or less, the credit is 80 percent of the property taxes or rent constituting property taxes. If household income exceeds $8,060, the property taxes or rent constituting property taxes are reduced by 8.785 percent of the household income exceeding $8,060, and the credit is 80 percent of the reduced property taxes or rent constituting property taxes. 2. The credit may not be claimed if household income exceeds $24,680. 3. The maximum property taxes or rent constituting property taxes used to calculate the credit is $1,460. Beginning with claims filed for the 2023 tax year, this bill reduces the percentage used for household income over $8,060 from 8.785 to 5.614 percent and increases the maximum income amount from $24,680 to $35,000. The bill also indexes the $8,060, $35,000, and $1,460 amounts for inflation during future tax years. For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

AI Summary

This bill expands the homestead income tax credit in Wisconsin. The key changes are: 1) Reducing the percentage used to phase out the credit as household income exceeds $8,060, from 8.785% to 5.614%. 2) Increasing the maximum household income eligibility for the credit from $24,680 to $35,000. 3) Indexing the $8,060, $35,000, and $1,460 (maximum property tax/rent) amounts for inflation in future years. These changes will make the homestead tax credit available to more Wisconsin homeowners and renters, providing additional tax relief. The bill applies to tax years beginning after December 31, 2022.

Committee Categories

Budget and Finance

Sponsors (31)

Last Action

Failed to pass pursuant to Senate Joint Resolution 1 (on 04/15/2024)

Bill Topics

Community Development and Housing Issues
  • ‐ Housing and Community Development for Low and Middle Income Persons
Macroeconomics
  • ‐ Taxation, Tax Policy, and Tax Reform

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Document Type Source Location Created
State Bill Page https://docs.legis.wisconsin.gov/2023/proposals/reg/asm/bill/ab458 09/28/2023
AB458 ROCP for Committee on Ways and Means https://docs.legis.wisconsin.gov/2023/related/records/assembly/ways_and_means/1788350.pdf 04/21/2024
Fiscal Note - AB458: Fiscal Estimate From DOR https://docs.legis.wisconsin.gov/2023/related/fe/ab458/ab458_dor.pdf 10/09/2023
BillText https://docs.legis.wisconsin.gov/document/proposaltext/2023/REG/AB458.pdf 09/28/2023
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