SB 1015

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 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.

Under the bill, the percentage of the federal EITC that an eligible individual who has at least one qualifying child may claim for Wisconsin purposes is 34 percent, regardless of the number of qualifying children. However, if an eligible individual has no qualifying children, the percentage of the federal EITC that the eligible individual may claim for Wisconsin purposes is 15 percent. The bill applies to taxable years beginning after 2025.