2021 - 2022 LEGISLATURE
July 21, 2021 - Introduced by Senators Roys,
Johnson, Agard, Carpenter, L.
Taylor, Larson and Wirch, cosponsored by Representatives Riemer,
Brostoff, S. Rodriguez, Doyle, Cabrera, Neubauer, Billings, Spreitzer,
Snodgrass, Conley, Ohnstad, Baldeh, Sinicki, Shankland, Anderson,
Considine, Hong, Stubbs, Goyke, Vining, Hesselbein, McGuire, Subeck and
Hintz. Referred to Committee on Financial Institutions and Revenue.
1An Act to amend
71.07 (9e) (aj) (intro.); and to create
71.07 (9e) (ak) of the 2
statutes; relating to: increasing the earned income tax credit for families with
3fewer than three children.
Analysis by the Legislative Reference Bureau
This bill increases the amount that an individual with fewer than three
qualifying children may claim as the Wisconsin earned income tax credit.
Under current law, the Wisconsin EITC is equal to a percentage of the federal
EITC. The percentage is 4 percent of the federal EITC if the claimant has one
qualifying child, 11 percent if the claimant has two qualifying children, and 34
percent if the claimant has three or more qualifying children. The credit is
refundable, which means that if the credit exceeds the claimant's tax liability, he or
she will receive the difference as a refund check.
Under the bill, the percentage of the federal EITC that an eligible individual
may claim for Wisconsin purposes is 34 percent, regardless of the number of
qualifying children. The bill applies to taxable years beginning after 2020.
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:
71.07 (9e) (aj) (intro.) of the statutes is amended to read:
(aj) (intro.) For taxable years beginning after December 31, 2010, 3and before January 1, 2021,
an individual may credit against the tax imposed under 4
s. 71.02 an amount equal to one of the following percentages of the federal basic 5
earned income credit for which the person is eligible for the taxable year under 6
section 32 (b) (1) (A) to (C)
of the Internal Revenue Code:
71.07 (9e) (ak) of the statutes is created to read:
(ak) For taxable years beginning after December 31, 2020, an 9
individual may credit against the tax imposed under s. 71.02 an amount equal to 34 10
percent of the federal basic earned income credit for which the person is eligible for 11
the taxable year under section 32
(b) (1) of the Internal Revenue Code.