SB 693

This bill creates a refundable individual income tax credit for amounts spent

by a claimant on tuition for educational expenses, in the year to which the claim

relates, for the claimant's dependent children to attend an eligible institution, which

is defined as any private elementary or secondary school in this state, including a

charter school. Under the bill, the credit may not be claimed with regard to a pupil

who participates in the school choice program. Because the credit is refundable, if

the amount of the credit for which the claimant is eligible exceeds his or her tax

liability, the difference will be refunded to the claimant by check.

The maximum credit that may be claimed under the bill per year, per child, if

the claimant files as a single individual or head of household, or if the claimant is a

married person filing a joint return, is $250 for an elementary pupil (a pupil in

kindergarten or grades one to eight) and $500 for a secondary pupil (a pupil in grades

nine to twelve). The maximum credit that may be claimed by a married person filing

a separate return per year, per child, is 50 percent of the amount that may be claimed

by a married joint filer. The credit may not be claimed by a nonresident or part-year

resident of this state. The bill also requires an eligible institution to provide the

parent or guardian of a pupil a statement specifying the amount of tuition that the

parent or guardian paid in that year for his or her pupil.

Under current law, as enacted in

2013 Wisconsin Act 20

, the state budget bill,

there is a subtract modification, or deduction, for tuition for educational expenses

paid by a claimant in the year to which the claim relates, for the claimant's dependent

children to attend an eligible institution, which is defined as any private elementary

or secondary school, but not including a charter school. The maximum deduction for

each elementary pupil is $4,000 each year, and the maximum deduction for each

secondary pupil is $10,000 each year. The bill repeals this deduction that was

created in the budget bill.