MES:cjs&tay:hmh
1999 - 2000 LEGISLATURE
February 17, 2000 - Introduced by Representatives Powers, Black, Brandemuehl,
Gronemus, Miller, Musser, Olsen
and Pettis, cosponsored by Senators
Moore and Drzewiecki. Referred to Committee on Ways and Means.
AB762,1,3 1An Act to amend 71.07 (5m) (b) 2. (intro.), 71.07 (5m) (b) 2. a., 71.07 (5m) (b) 4.
2(intro.), 71.07 (5m) (b) 4. a., 71.07 (5m) (b) 6. (intro.) and 71.07 (5m) (b) 6. a. of
3the statutes; relating to: increasing the working families tax credit.
Analysis by the Legislative Reference Bureau
The working families income tax credit is a nonrefundable credit which may be
claimed by an individual or by an individual and his or her spouse. As a
nonrefundable credit, it may be claimed only up to the amount of the taxpayer's
income tax liability.
Under current law, for a single individual whose adjusted gross income is less
than $9,000, for a married individual filing separately whose adjusted gross income
is less than $9,000, or for a married couple filing jointly whose combined adjusted
gross income is less than $18,000, the credit is equal to the claimant's net tax liability.
Also under current law, the credit phases out to zero as a single person's or married
separate filer's adjusted gross income increases from $9,000 to $10,000. A similar
phase-out occurs for a married joint filer whose combined adjusted gross income
increases from $18,000 to $19,000.
This bill increases the credit by increasing the range over which the credit
phases out to zero. Under the bill, the credit phases out to zero as a single person's
or married separate filer's adjusted gross income increases from $9,000 to $12,000.
A similar phase-out occurs for a married joint filer whose combined adjusted gross
income increases from $18,000 to $21,000.

For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB762, s. 1 1Section 1. 71.07 (5m) (b) 2. (intro.) of the statutes is amended to read:
AB762,2,42 71.07 (5m) (b) 2. (intro.) If the claimant is single and his or her adjusted gross
3income is at least $9,000 but less than $10,000 $12,000 in the year to which the claim
4relates, an amount that is calculated as follows:
AB762, s. 2 5Section 2. 71.07 (5m) (b) 2. a. of the statutes is amended to read:
AB762,2,86 71.07 (5m) (b) 2. a. Calculate the value of a fraction, the denominator of which
7is $1,000 $3,000 and the numerator of which is the difference between the claimant's
8adjusted gross income and $9,000.
AB762, s. 3 9Section 3. 71.07 (5m) (b) 4. (intro.) of the statutes is amended to read:
AB762,2,1310 71.07 (5m) (b) 4. (intro.) If the claimant is married and filing jointly and the
11sum of the claimant's adjusted gross income and his or her spouse's adjusted gross
12income is at least $18,000 but less than $19,000 $21,000 in the year to which the
13claim relates, an amount that is calculated as follows:
AB762, s. 4 14Section 4. 71.07 (5m) (b) 4. a. of the statutes is amended to read:
AB762,2,1715 71.07 (5m) (b) 4. a. Calculate the value of a fraction, the denominator of which
16is $1,000 $3,000 and the numerator of which is the difference between the married
17couple's adjusted gross income and $18,000.
AB762, s. 5 18Section 5. 71.07 (5m) (b) 6. (intro.) of the statutes is amended to read:
AB762,2,2119 71.07 (5m) (b) 6. (intro.) If the claimant is married and filing separately and
20his or her adjusted gross income is at least $9,000 but less than $10,000 $12,000 in
21the year to which the claim relates, an amount that is calculated as follows:
AB762, s. 6
1Section 6. 71.07 (5m) (b) 6. a. of the statutes is amended to read:
AB762,3,42 71.07 (5m) (b) 6. a. Calculate the value of a fraction, the denominator of which
3is $1,000 $3,000 and the numerator of which is the difference between the claimant's
4adjusted gross income and $9,000.
AB762, s. 7 5Section 7. Initial applicability.
AB762,3,96 (1) This act first applies to taxable years beginning on January 1 of the year
7in which this subsection takes effect, except that if this subsection takes effect after
8July 31, this act first applies to taxable years beginning on January 1 of the year
9following the year in which this subsection takes effect.
AB762,3,1010 (End)
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