Bill > AB461

This bill allows individuals to subtract certain qualified overtime compensation from their taxable income for state income tax purposes, starting with tax years after December 31, 2024. This subtraction is based on a federal tax provision, specifically section 225 of the Internal Revenue Code, which defines "qualified overtime compensation" as extra pay for working more than a standard workweek. For individuals who are not full-year residents of the state, the subtraction is prorated based on the portion of their qualified overtime compensation that is taxable by Wisconsin. Additionally, the bill modifies the definition of "income" for homestead tax credits to include this new subtraction, ensuring it is considered when determining eligibility for that credit, and it also allows this subtraction to be claimed even if federal law would otherwise prohibit it for tax years beginning after December 31, 2028.