LRB-3590/1
MES:kjf:jf
2009 - 2010 LEGISLATURE
October 12, 2009 - Introduced by Senators Taylor, Hopper and Vinehout,
cosponsored by Representatives
Fields, Staskunas, Young, Roys, Richards,
Jorgensen, A. Williams, Grigsby, Zepnick, A. Ott, Bernard Schaber and
Hintz. Referred to Committee on Health, Health Insurance, Privacy, Property
Tax Relief, and Revenue.
SB345,1,2
1An Act to create 71.07 (9e) (ag) of the statutes;
relating to: allowing an
2individual without a qualifying child to claim the earned income tax credit.
Analysis by the Legislative Reference Bureau
Under federal law, the earned income tax credit (EITC) is a refundable tax
credit for low-income workers. If the amount of the claim exceeds the worker's tax
liability, the claimant receives a check for the excess amount from the Internal
Revenue Service. The amount of the credit for which a claimant is eligible is based,
in part, on whether the claimant has no qualifying children, one qualifying child, or
more than one qualifying child.
Under current law, the refundable Wisconsin EITC may be claimed in an
amount equal to a certain percentage of the federal basic EITC. To be eligible for the
Wisconsin EITC, an individual must have one or more qualifying children. The
Wisconsin EITC is equal to 4 percent of the federal credit if the claimant has one
qualifying child, 14 percent of the federal credit if the claimant has two qualifying
children, and 43 percent of the federal credit if the claimant has three or more
qualifying children.
Under this bill, a claimant who has no qualifying children may claim the
Wisconsin EITC in an amount equal to 4 percent of the federal credit.
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:
SB345, s. 1
1Section
1. 71.07 (9e) (ag) of the statutes is created to read:
SB345,2,62
71.07
(9e) (ag) For taxable years beginning after December 31, 2009, an
3individual who does not have a qualifying child may credit against the tax imposed
4under s. 71.02 4 percent of the federal basic earned income credit for which the
5individual is eligible for the taxable year under section
32 (b) (1) (A) of the Internal
6Revenue Code.
