Bill

Bill > AB1118


WI AB1118

WI AB1118
Refundability of the additional child and dependent care tax credit and making an appropriation. (FE)


summary

Introduced
03/13/2026
In Committee
03/13/2026
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, effective for tax years beginning after December 31, 2025, transforms the additional child and dependent care tax credit into a refundable credit, meaning that if the credit amount is more than the taxes owed, the difference will be paid back to the claimant as a refund. Currently, this credit is nonrefundable, meaning it can only reduce taxes owed down to zero. The bill also appropriates funds to cover these potential refunds, ensuring that the state has the necessary resources to issue them.

Committee Categories

Budget and Finance

Sponsors (20)

Last Action

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

bill text


bill summary

Loading...

bill summary

Loading...
Loading...