2021 - 2022 LEGISLATURE
June 7, 2021 - Introduced by Representatives Shelton, Snodgrass, Hong, Moore
, Drake, Brostoff, Neubauer, Hebl, Spreitzer, Andraca,
Emerson, Hesselbein, Stubbs, Bowen, Sinicki, Subeck and Cabrera,
cosponsored by Senator Larson. Referred to Committee on Ways and Means.
AB385,1,3 1An Act to amend 71.10 (4) (i); and to create 20.835 (2) (er) and 71.07 (8w) of the
2statutes; relating to: refundable income tax credit for bicycle purchases and
3making an appropriation.
Analysis by the Legislative Reference Bureau
This bill creates a refundable tax credit that may be claimed by individuals who
purchase bicycles for their dependents. The credit is equal to the price paid for each
bicycle, limited to $200 per dependent. The credit may be claimed only by individuals
whose family income does not exceed 200 percent of the federal poverty line. Under
the bill, the individual must submit with his or her tax return any documentation
required by the Department of Revenue regarding the bicycle's purchase price.
Because the credit is refundable, if an individual is eligible to claim an amount as
a credit that exceeds his or her income tax liability, the individual receives the excess
as a refund.
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:
AB385,1 4Section 1 . 20.835 (2) (er) of the statutes is created to read:
120.835 (2) (er) Bicycle credit. A sum sufficient to make the payments under s.
271.07 (8w).
AB385,2 3Section 2 . 71.07 (8w) of the statutes is created to read:
AB385,2,44 71.07 (8w) Bicycle credit. (a) Definitions. In this subsection:
AB385,2,75 1. “Claimant" means an individual whose family income does not exceed 200
6percent of the federal poverty line established under 42 USC 9902 (2) for a family the
7size of the individual's family and who files a claim under this subsection.
AB385,2,98 2. “Dependent” has the meaning given in section 152 of the Internal Revenue
AB385,2,1710 (b) Filing claims. Subject to the limitations provided in this subsection, for
11taxable years beginning after December 31, 2020, a claimant may claim as a credit
12against the tax imposed under s. 71.02 an amount equal to the amount paid in the
13taxable year to purchase a bicycle for a dependent of the claimant. If the allowable
14amount of the claim under this paragraph exceeds the tax otherwise due under s.
1571.02, the amount of the claim not used to offset the tax due shall be certified by the
16department of revenue to the department of administration for payment by check,
17share draft, or other draft drawn from the appropriation under s. 20.835 (2) (er).
AB385,2,1918 (c) Limitations. 1. The maximum credit that a claimant may claim each year
19under this subsection is $200 per dependent of the claimant.
AB385,2,2220 2. A claimant shall submit with the claimant's return any documentation
21required by the department regarding the amount paid for each bicycle for which a
22credit is claimed under this subsection.
AB385,2,2423 3. No credit may be claimed under this subsection by a part-year resident or
24a nonresident of this state.
14. No credit may be allowed under this subsection unless it is claimed within
2the period specified in s. 71.75 (2).
AB385,3,53 5. No credit may be allowed under this subsection for a taxable year covering
4a period of less than 12 months, except for a taxable year closed by reason of the death
5of the taxpayer.
AB385,3,76 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit
7under that subsection, applies to the credit under this subsection.
AB385,3 8Section 3. 71.10 (4) (i) of the statutes is amended to read:
AB385,3,189 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
10preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
11beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief
12credit under s. 71.07 (3m), jobs tax credit under s. 71.07 (3q), business development
13credit under s. 71.07 (3y), research credit under s. 71.07 (4k) (e) 2. a., veterans and
14surviving spouses property tax credit under s. 71.07 (6e), bicycle credit under s. 71.07
enterprise zone jobs credit under s. 71.07 (3w), electronics and information
16technology manufacturing zone credit under s. 71.07 (3wm), earned income tax
17credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld
18under subch. X.
AB385,3,1919 (End)