AB1130: Bill Text

2025 - 2026 LEGISLATURE

LRB-6397/1

JK:wlj

2025 ASSEMBLY BILL 1130

March 13, 2026 - Introduced by Representatives Phelps, Tenorio, Bare, Clancy, Goodwin, Hong, Joers, Johnson, Roe, Sinicki, Subeck, Neubauer and Sheehan, cosponsored by Senators Smith, Ratcliff, Spreitzer, Carpenter and Hesselbein. Referred to Committee on Ways and Means.

AB1130,1,3 An Act to amend 71.10 (4) (i); to create 20.835 (2) (fg) and 71.07 (12) of the statutes; relating to: a premium assistance individual income tax credit and making an appropriation.

Analysis by the Legislative Reference Bureau

Beginning in 2026, this bill allows an individual who pays monthly premiums for a qualified health plan under the federal Affordable Care Act to claim as a refundable individual income tax credit the premium assistance amount that the individual would have been eligible to claim under federal law for a taxable year beginning after December 31, 2020, and before January 1, 2026. During that period, an eligible individual would have been able to claim under federal law premium assistance credits to lower the costs of premiums for qualified health plans offered under the ACA.

Under the bill, if the amount of the credit exceeds the individual’s tax liability, the individual will receive the excess as a refund. Finally, the bill prohibits an individual from claiming the credit for taxable years beginning after 2025 if the individual is again eligible to receive premium assistance credits under federal law.

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:

AB1130,1 Section 1. 20.835 (2) (fg) of the statutes is created to read:

AB1130,2,3 20.835 (2) (fg) Premium assistance credit. A sum sufficient to make the payments under s. 71.07 (12).

AB1130,2 Section 2. 71.07 (12) of the statutes is created to read:

AB1130,2,5 71.07 (12) Premium assistance credit. (a) Definitions. In this subsection:

AB1130,2,6 1. “Claimant” means an individual who files a claim under this subsection.

AB1130,2,7 2. “Qualified health plan” has the meaning given in 45 CFR 155.20.

AB1130,2,13 (b) Filing claims. For taxable years beginning after December 31, 2025, and subject to the limitations provided in this subsection, a claimant who pays monthly premiums for a qualified health plan during the taxable year may claim as a credit against the tax imposed under s. 71.02 the premium assistance amount that the claimant would have been eligible to claim under 26 USC 36B for a taxable year beginning after December 31, 2020, and before January 1, 2026.

AB1130,2,15 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

AB1130,2,17 2. Part-year residents and nonresidents of this state are not eligible for the credit under this subsection.

AB1130,2,20 3. No claimant may claim a credit under this subsection for a taxable year beginning after December 31, 2025, if the claimant is eligible to claim a premium assistance amount under 26 USC 36B or similar federal law.

AB1130,2,22 (d) Administration. 1. Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB1130,3,6 2. If the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.02, the amount of the claim not used to offset the tax due shall be certified by the department to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (fg). Notwithstanding s. 71.82, no interest may be paid on amounts certified under this subdivision.

AB1130,3 Section 3. 71.10 (4) (i) of the statutes, as affected by 2025 Wisconsin Act 15, is amended to read:

AB1130,3,18 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and beyond under s. 71.613, homestead credit under subch. VIII, jobs tax credit under s. 71.07 (3q), business development credit under s. 71.07 (3y), research credit under s. 71.07 (4k) (e) 2. a., film production services credit under s. 71.07 (5f) (b) 2., veterans and surviving spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s. 71.07 (3w), electronics and information technology manufacturing zone credit under s. 71.07 (3wm), earned income tax credit under s. 71.07 (9e), premium assistance credit under s. 71.07 (12), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

AB1130,3,19 (end)