SB 453

This bill increases the amount that an individual with fewer than three

qualifying children may claim as the Wisconsin earned income 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 individual has one qualifying child,

11 percent if the individual has two qualifying children, and 34 percent if the

individual has three or more qualifying children. The credit is refundable, which

means that if the credit exceeds the individual's tax liability, he or she will receive

the excess as a refund check.

Under the bill, the percentage of the federal EITC that an eligible individual

may claim for Wisconsin purposes is 16 percent if the individual has one qualifying

child, 25 percent if the individual has two qualifying children, and 34 percent if the

individual has three or more qualifying children.