A refundable income tax credit based on property taxes paid and making an appropriation. (FE)

Under the bill, if the claimant's household income is less than $100,000, the credit equals a percentage of the amount by which the property taxes, or rent constituting property taxes, exceed 4 percent of household income. The percentage is 10 percent for tax year 2024, 15 percent for tax year 2025, and 40 percent for tax year 2026 and for each tax year thereafter. The credit is phased out for claimants whose household income is at least $100,000 but less than $150,000, and may not be claimed if household income is $150,000 or more.

The credit is reduced by the amount of homestead credit claimed by the individual and no credit may be claimed if the individual or the individual's spouse claims the veterans and surviving spouses property tax credit. The credit may be claimed only by full-year Wisconsin residents who cannot be claimed as a dependent by another taxpayer. In addition, no individual may claim the credit for any taxable year in which the assessed value of the individual's property exceeds $1,000,000.

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.