SB 227

This bill changes the name of the earned income tax credit to the earned income

child care 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. The EITC on both the state and

federal levels is intended to provide financial assistance to low-income families with

dependent children.