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WI SB1074

WI SB1074
Refundability of the additional child and dependent care tax credit and making an appropriation. (FE)


summary

Introduced
02/26/2026
In Committee
02/26/2026
Crossed Over
Passed
Dead
03/23/2026

Introduced Session

2025-2026 Regular Session

Bill Summary

This bill converts the additional child and dependent care credit into a refundable tax credit. Under the bill, beginning with the 2026 tax year, if the additional child and dependent care credit exceeds a claimant’s tax liability, the claimant will receive the difference as a refund. Currently, the additional child and dependent care credit provides a nonrefundable state income tax credit equal to the amount that the claimant could claim for the federal child and dependent care credit when using higher employment-related expense limitations authorized under current law. For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

AI Summary

This bill transforms the additional child and dependent care tax credit into a refundable credit, meaning that starting with the 2026 tax year, if the credit amount a person is eligible for is more than the state income tax they owe, they will receive the difference back as a refund. Currently, this credit is nonrefundable, meaning it can only reduce the tax owed down to zero, and any excess is lost. The bill also makes an appropriation, which is a formal authorization for government spending, to cover the costs of these refunds.

Committee Categories

Budget and Finance

Sponsors (20)

Last Action

Failed to pass pursuant to Senate Joint Resolution 1 (on 03/23/2026)

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