SB 1112

This bill creates a refundable income tax credit for individuals whose property

taxes, or rent that constitutes property taxes, exceed 4 percent of household income.

The property taxes or rent must be for the individual's principal dwelling. The bill

defines “rent constituting property taxes" to mean 20 percent of the rent if heat is

included and 25 percent of the rent if heat is not included.

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.