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Bill > AB461

WI AB461

WI AB461
An income tax subtraction for certain overtime compensation. (FE)

summary

Introduced
09/26/2025
In Committee
02/13/2026
Crossed Over
01/15/2026
Passed
03/25/2026
Dead
Vetoed
04/03/2026

Introduced Session

2025-2026 Regular Session

Bill Summary

AN ACT to amend 71.52 (6); to create 71.05 (6) (b) 57. of the statutes; relating to: an income tax subtraction for qualified overtime compensation.

AI Summary

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.

Committee Categories

Budget and Finance

Sponsors (26)

Last Action

Report vetoed by the Governor on 4-3-2026 (on 04/03/2026)
(1 Companion Bills)

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Document Type Source Location
State Bill Page https://docs.legis.wisconsin.gov/2025/proposals/reg/asm/bill/ab461
BillText https://docs.legis.wisconsin.gov/document/enrolledbills/2025/REG/AB461.pdf
Senate Substitute Amendment 3 https://docs.legis.wisconsin.gov/document/amends/2025/REG/AB461-SSA3.pdf
Senate Substitute Amendment 2 https://docs.legis.wisconsin.gov/document/amends/2025/REG/AB461-SSA2.pdf
Senate Substitute Amendment 1 https://docs.legis.wisconsin.gov/document/amends/2025/REG/AB461-SSA1.pdf
Fiscal Note - AB461: Report of the Joint Survey Committee on Tax Exemptions https://docs.legis.wisconsin.gov/2025/related/fe/ab461/ab461_jscte.pdf
AB461 ROCP for Joint Survey Committee on Tax Exemptions On 2/17/2026 https://docs.legis.wisconsin.gov/2025/related/records/joint/tax_exemptions/1973890.pdf
AB461 ROCP for Joint Committee on Finance On 2/16/2026 https://docs.legis.wisconsin.gov/2025/related/records/joint/finance/1973587.pdf
AB461 ROCP for Committee on Agriculture and Revenue On 2/13/2026 https://docs.legis.wisconsin.gov/2025/related/records/senate/agriculture_and_revenue/1973048.pdf
Assembly Substitute Amendment 3 https://docs.legis.wisconsin.gov/document/amends/2025/REG/AB461-ASA3.pdf
Assembly Substitute Amendment 4 https://docs.legis.wisconsin.gov/document/amends/2025/REG/AB461-ASA4.pdf
Assembly Substitute Amendment 5 https://docs.legis.wisconsin.gov/document/amends/2025/REG/AB461-ASA5.pdf
Assembly Substitute Amendment 2 https://docs.legis.wisconsin.gov/document/amends/2025/REG/AB461-ASA2.pdf
Assembly Substitute Amendment 1 https://docs.legis.wisconsin.gov/document/amends/2025/REG/AB461-ASA1.pdf
Analysis - LC Amendment Memo https://docs.legis.wisconsin.gov/document/lcamendmentmemos/2025/REG/AB461.pdf
AB461 ROCP for Committee on Ways and Means https://docs.legis.wisconsin.gov/2025/related/records/assembly/ways_and_means/1963183.pdf
Assembly Amendment 1 https://docs.legis.wisconsin.gov/document/amends/2025/REG/AB461-AA1.pdf
Fiscal Note - AB461: Fiscal Estimate From DOR https://docs.legis.wisconsin.gov/2025/related/fe/ab461/ab461_dor.pdf
BillText https://docs.legis.wisconsin.gov/document/proposaltext/2025/REG/AB461.pdf
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