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Bills · 2025-2026 Regular Session

AB 461

Vetoed Official bill text Atom feed

Relating to: an income tax subtraction for certain overtime compensation. (FE)

Hours of labor Income tax — Deduction Legislature — Tax exemptions joint survey committee on

  1. Introduced, completed
  2. Passes Assembly, completed
  3. Passes Senate, stopped here
  4. Governor signs, not reached
  5. Law, not reached

Unfamiliar terms? Glossary

What this bill does

Plain-language analysis by the nonpartisan Legislative Reference Bureau

This bill creates an income tax subtraction for certain qualified overtime compensation. The bill uses the definition of “qualified overtime compensation” from the Internal Revenue Code, which generally defines qualified overtime compensation as overtime compensation paid to a claimant under the federal Fair Labor Standards Act that is in excess of the claimant’s regular rate of pay. Only qualified overtime compensation that is included on statements furnished to the claimant pursuant to federal or state tax law is eligible to be subtracted under the bill. To claim the subtraction under the bill, a claimant must include the claimant’s social security number on the claimant’s tax return, and if the claimant is considered married for federal tax purposes, the claimant must file a joint tax return. The subtraction under the bill is generally limited to $12,500 per tax year for claimants, except that the limit is $25,000 per tax year for claimants who file a joint return. Further, the subtraction phases out to zero for claimants as modified federal adjusted gross income increases from $150,000 to $275,000, except that for claimants who file a joint return, the subtraction phases out to zero as modified federal AGI increases from $300,000 to $550,000.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.

What it would cost

Fiscal estimates filed by state agencies, as official PDFs

Sponsors

Introduced by: B. Jacobson (R) , Callahan (R) , Dittrich (R) , Donovan (R) , Franklin (R) , Goeben (R) , Green (R) , Kaufert (R) , Knodl (R) , Kreibich (R) , Melotik (R) , Mursau (R) , Penterman (R) , Petersen (R) , Sortwell (R) , Steffen (R) , Tusler (R) , Wichgers (R)

9 cosponsors

Bradley (R) , Cabral-Guevara (R) , Hutton (R) , Jacque (R) , Nass (R) , Quinn (R) , Tomczyk (R) , Tucker (R) , Wanggaard (R)

Registered lobbying interests · 3

Organizations that registered lobbying activity on this bill with the Wisconsin Ethics Commission. Registration means interest, not a position for or against. Official record

Votes

Assembly: Report Assembly Amendment 1 adoption recommended by Committee on Ways and Means, Ayes 10, Noes 0

Passed 10–0 Jan 13, 2026 official source full page

No individual roll call was recorded for this vote. Committee votes and some older sessions record totals only.

Assembly: Report passage as amended recommended by Committee on Ways and Means, Ayes 7, Noes 3

Passed 7–3 Jan 13, 2026 official source full page

No individual roll call was recorded for this vote. Committee votes and some older sessions record totals only.

Assembly: SHALL THE DECISION OF THE CHAIR STAND

Passed 52–44 Jan 15, 2026 official source full page

Aye · 52

Nay · 44

Not voting · 3

Assembly: SHALL THE DECISION OF THE CHAIR STAND

Passed 52–44 Jan 15, 2026 official source full page

Aye · 52

Nay · 44

Not voting · 3

Assembly: PASSAGE

Passed 61–35 Jan 15, 2026 official source full page

Aye · 61

Not voting · 1

Senate: Report concurrence recommended by Committee on Agriculture and Revenue, Ayes 5, Noes 3

Passed 5–3 Feb 13, 2026 official source full page

No individual roll call was recorded for this vote. Committee votes and some older sessions record totals only.

Senate: Report concurrence recommended by Joint Committee on Finance, Ayes 11, Noes 3

Passed 11–3 Feb 16, 2026 official source full page

No individual roll call was recorded for this vote. Committee votes and some older sessions record totals only.

Senate: Report of Joint Survey Committee on Tax Exemptions received, Ayes 5, Noes 4

Passed 5–4 Feb 17, 2026 official source full page

No individual roll call was recorded for this vote. Committee votes and some older sessions record totals only.

Senate: SHALL THE DECISION OF THE CHAIR STAND

Passed 18–15 Mar 17, 2026 official source full page

Senate: SHALL THE DECISION OF THE CHAIR STAND

Passed 18–15 Mar 17, 2026 official source full page

Senate: SHALL THE DECISION OF THE CHAIR STAND

Passed 18–15 Mar 17, 2026 official source full page

Senate: CONCURRENCE

Passed 21–12 Mar 17, 2026 official source full page

Full history

  1. Sep 26, 2025 · Assembly

    Introduced by Representatives Melotik, Donovan, Franklin, Callahan, Dittrich, Goeben, Green, B. Jacobson, Kaufert, Knodl, Kreibich, Mursau, Penterman, Petersen, Sortwell, Steffen, Tusler and Wichgers; cosponsored by Senators Hutton, Wanggaard, Bradley, Cabral-Guevara, Jacque, Nass, Tomczyk and Quinn

  2. Sep 26, 2025 · Assembly

    Read first time and referred to Committee on Ways and Means

  3. Sep 29, 2025 · Assembly

    Representative Stubbs added as a coauthor

  4. Oct 7, 2025 · Assembly

    Fiscal estimate received

  5. Jan 7, 2026 · Assembly

    Assembly Amendment 1 offered by Representative Melotik

  6. Jan 8, 2026 · Assembly

    Public hearing held

  7. Jan 9, 2026 · Assembly

    Representative Tucker added as a coauthor

  8. Jan 13, 2026 · Assembly

    Referred to committee on Rules

  9. Jan 13, 2026 · Assembly

    Placed on calendar 1-15-2026 by Committee on Rules

  10. Jan 13, 2026 · Assembly

    Executive action taken

  11. Jan 13, 2026 · Assembly

    Report Assembly Amendment 1 adoption recommended by Committee on Ways and Means, Ayes 10, Noes 0

  12. Jan 13, 2026 · Assembly

    Report passage as amended recommended by Committee on Ways and Means, Ayes 7, Noes 3

  13. Jan 14, 2026 · Assembly

    Representative Stubbs withdrawn as a coauthor

  14. Jan 15, 2026 · Assembly

    Assembly Substitute Amendment 1 offered by Representative Bare

  15. Jan 15, 2026 · Assembly

    Assembly Substitute Amendment 2 offered by Representative Bare

  16. Jan 15, 2026 · Assembly

    Read a second time

  17. Jan 15, 2026 · Assembly

    Assembly Substitute Amendment 5 offered by Representative Bare

  18. Jan 15, 2026 · Assembly

    Point of order that Assembly Substitute Amendment 5 not germane under Assembly Rule 54 (3)(f) well taken

  19. Jan 15, 2026 · Assembly

    Decision of the Chair appealed

  20. Jan 15, 2026 · Assembly

    Decision of the Chair upheld, Ayes 52, Noes 44

  21. Jan 15, 2026 · Assembly

    Assembly Substitute Amendment 4 offered by Representative Bare

  22. Jan 15, 2026 · Assembly

    Point of order that Assembly Substitute Amendment 4 not germane under Assembly Rule 54 (3)(f) well taken

  23. Jan 15, 2026 · Assembly

    Decision of the Chair appealed

  24. Jan 15, 2026 · Assembly

    Decision of the Chair upheld, Ayes 52, Noes 44

  25. Jan 15, 2026 · Assembly

    Assembly Substitute Amendment 3 offered by Representative Melotik

  26. Jan 15, 2026 · Assembly

    Assembly Substitute Amendment 3 adopted

  27. Jan 15, 2026 · Assembly

    Ordered to a third reading

  28. Jan 15, 2026 · Assembly

    Rules suspended

  29. Jan 15, 2026 · Assembly

    Read a third time and passed, Ayes 61, Noes 35, Paired 2

  30. Jan 15, 2026 · Assembly

    Ordered immediately messaged

  31. Jan 16, 2026 · Senate

    Received from Assembly

  32. Jan 16, 2026 · Senate

    Read first time and referred to committee on Agriculture and Revenue

  33. Feb 12, 2026 · Senate

    Public hearing held

  34. Feb 13, 2026 · Senate

    Executive action taken

  35. Feb 13, 2026 · Senate

    Report concurrence recommended by Committee on Agriculture and Revenue, Ayes 5, Noes 3

  36. Feb 13, 2026 · Senate

    Available for scheduling

  37. Feb 13, 2026 · Senate

    Withdrawn from committee on Senate Organization and rereferred to joint committee on Finance pursuant to Senate Rule 46(2)(c)

  38. Feb 13, 2026 · Senate

    Report of Joint Survey Committee on Tax Exemptions requested

  39. Feb 16, 2026 · Senate

    Executive action taken

  40. Feb 16, 2026 · Senate

    Report concurrence recommended by Joint Committee on Finance, Ayes 11, Noes 3

  41. Feb 16, 2026 · Senate

    Available for scheduling

  42. Feb 17, 2026 · Senate

    Report of Joint Survey Committee on Tax Exemptions received, Ayes 5, Noes 4

  43. Mar 16, 2026 · Senate

    Placed on calendar 3-17-2026 pursuant to Senate Rule 18(1)

  44. Mar 17, 2026 · Senate

    Senate Substitute Amendment 1 offered by Senators Spreitzer, Carpenter, Dassler-Alfheim, Drake, Habush Sinykin, Hesselbein, L. Johnson, Keyeski, Larson, Pfaff, Ratcliff, Roys, Smith, Wall and Wirch

  45. Mar 17, 2026 · Senate

    Senate Substitute Amendment 2 offered by Senators Roys, Carpenter, Dassler-Alfheim, Drake, Habush Sinykin, Hesselbein, L. Johnson, Keyeski, Larson, Pfaff, Ratcliff, Smith, Spreitzer, Wall and Wirch

  46. Mar 17, 2026 · Senate

    Senate Substitute Amendment 3 offered by Senators Habush Sinykin, Carpenter, Dassler-Alfheim, Drake, Hesselbein, L. Johnson, Keyeski, Larson, Pfaff, Ratcliff, Roys, Smith, Spreitzer, Wall and Wirch

  47. Mar 17, 2026 · Senate

    Read a second time

  48. Mar 17, 2026 · Senate

    Point of order that Senate Substitute Amendment 1 was not germane well taken

  49. Mar 17, 2026 · Senate

    Decision of the Chair stands as the judgment of the Senate, Ayes 18, Noes 15

  50. Mar 17, 2026 · Senate

    Point of order that Senate Substitute Amendment 2 was not germane well taken

  51. Mar 17, 2026 · Senate

    Decision of the Chair stands as the judgment of the Senate, Ayes 18, Noes 15

  52. Mar 17, 2026 · Senate

    Point of order that Senate Substitute Amendment 3 was not germane well taken

  53. Mar 17, 2026 · Senate

    Decision of the Chair stands as the judgment of the Senate, Ayes 18, Noes 15

  54. Mar 17, 2026 · Senate

    Ordered to a third reading

  55. Mar 17, 2026 · Senate

    Rules suspended to give bill its third reading

  56. Mar 17, 2026 · Senate

    Read a third time and concurred in, Ayes 21, Noes 12

  57. Mar 17, 2026 · Senate

    Ordered immediately messaged

  58. Mar 18, 2026 · Assembly

    Received from Senate concurred in

  59. Mar 25, 2026 · Assembly

    Report correctly enrolled on 3-25-2026

  60. Apr 2, 2026 · Assembly

    Presented to the Governor on 4-2-2026

  61. Apr 3, 2026 · Assembly

    Report vetoed by the Governor on 4-3-2026

  62. May 12, 2026 · Assembly

    Placed on calendar 5-12-2026 pursuant to Joint Rule 82 (2)(a)

  63. May 13, 2026 · Assembly

    Failed to pass notwithstanding the objections of the Governor pursuant to Joint Rule 82