SB956: Bill Text

The bill creates an income tax credit for individuals who pay for items that directly relate to the care or support of a family member who requires assistance with one or more daily living activities and is over the age of 18. The credit equals 50 percent of the expenses, limited to a maximum annual credit per family member of $500, or $250 for married spouses filing separately. If more than one individual may claim the credit based on the same family member, the maximum annual credit amount is apportioned among the individuals based on expenses paid. For married couples filing jointly, the credit phases out between federal adjusted gross income (AGI) of $150,000 and $170,000, and no credit may be claimed if federal AGI exceeds $170,000. For all other taxpayers, the phase out range is between federal AGI of $75,000 and $85,000, and no credit may be claimed if federal AGI exceeds $85,000. Under the bill, expenses that qualify for the credit include amounts spent on improving the claimant's primary residence to assist the family member, purchasing equipment to help the family member with daily living activities, and obtaining other goods or services to help care for the family member. Expenses that do not qualify for the credit include general food, clothing, transportation, and household repair costs, as well as amounts that are reimbursed by insurance or other means. The credit is nonrefundable, which means it may be claimed only up to the amount of the claimant's tax liability.

Additional child and dependent care tax credit

Under current law, an individual who is eligible for and claims the federal child and dependent care income tax credit may claim 50 percent of the same amount as a nonrefundable credit on his or her Wisconsin income tax return. The Wisconsin credit may not be claimed by a part-year resident or nonresident of this state. Under the bill, an individual who is eligible for and claims the federal child and dependent care income tax credit may claim 100 percent of the same amount as a nonrefundable credit on his or her Wisconsin income tax return.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB956,1 Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

SB956,2 Section 2. 20.255 (2) (cc) of the statutes is amended to read:

SB956,9,4 20.255 (2) (cc) Bilingual-bicultural education aids English learner categorical aid. The amounts in the schedule for bilingual-bicultural education programs aid under subch. VII of ch. 115 s. 115.995.

SB956,3 Section 3. 20.255 (2) (cd) of the statutes is created to read:

SB956,9,7 20.255 (2) (cd) Water filtration grants. The amounts in the schedule for grants to school districts under s. 115.335.

SB956,4 Section 4. 20.255 (2) (ch) of the statutes is created to read:

SB956,9,11 20.255 (2) (ch) Capacity-building grants for licensed educators. The amounts in the schedule for grants to increase licensure of bilingual teachers and teachers of English as a 2nd language under s. 115.958.

SB956,5 Section 5. 20.255 (2) (co) of the statutes is created to read:

SB956,10,2 20.255 (2) (co) Supplemental nutrition aid. A sum sufficient for payments under s. 115.342.

SB956,6 Section 6. 20.255 (2) (cv) of the statutes is created to read:

SB956,10,5 20.255 (2) (cv) Driver education aid. The amounts in the schedule for driver education aid under s. 121.42.

SB956,7 Section 7. 20.255 (2) (da) of the statutes is amended to read:

SB956,10,9 20.255 (2) (da) Aid for school mental Mental health programs and pupil wellness aid. The amounts in the schedule for aid to school districts and independent charter schools employ, hire, and retain pupil services professionals under s. 115.364.

SB956,8 Section 8. 20.255 (2) (de) of the statutes is created to read:

SB956,10,12 20.255 (2) (de) Aid for reading services professionals. The amounts in the schedule for aid under s. 115.3635.

SB956,9 Section 9. 20.255 (2) (dh) of the statutes is created to read:

SB956,10,15 20.255 (2) (dh) Community engagement grants; urban school districts. The amounts in the schedule for community engagement grants under s. 115.457.

SB956,10 Section 10. 20.255 (2) (di) of the statutes is created to read:

SB956,10,18 20.255 (2) (di) Principal training and support; urban school districts. The amounts in the schedule for grants under s. 115.28 (66).

SB956,11 Section 11. 20.255 (2) (dj) of the statutes is amended to read:

SB956,10,22 20.255 (2) (dj) Summer school programs; grants; urban school districts . The amounts in the schedule for grants to school boards districts for summer school grant programs under s. 115.447.

SB956,12 Section 12. 20.255 (2) (dk) of the statutes is created to read:

SB956,11,3 20.255 (2) (dk) Out-of-school time programs; grants. As a continuing appropriation, the amounts in the schedule for out-of-school time program grants under s. 115.449.

SB956,13 Section 13 . 20.255 (2) (dm) of the statutes is created to read:

SB956,11,6 20.255 (2) (dm) Early childhood education grants; urban school districts. The amounts in the schedule for early childhood education grants under s. 115.442.

SB956,14 Section 14. 20.255 (2) (dn) of the statutes is created to read:

SB956,11,10 20.255 (2) (dn) Computer science licensure; grants. The amounts in the schedule for grants under s. 115.435 to assist school district employees in obtaining licenses or permits to teach computer science.

SB956,15 Section 15. 20.255 (2) (dv) of the statutes is created to read:

SB956,11,13 20.255 (2) (dv) Lead testing and remediation; grants. As a continuing appropriation, the amounts in the schedule for grants under s. 115.456.

SB956,16 Section 16. 20.835 (2) (cd) of the statutes is created to read:

SB956,11,16 20.835 (2) (cd) Tax rebate for 2022. A sum sufficient to make the payments approved under 2021 Wisconsin Act .... (this act), section 84 (1 ).

SB956,17 Section 17 . 71.07 (8p) of the statutes is created to read:

SB956,11,18 71.07 (8p) Family caregiver tax credit. (a) Definitions. In this subsection:

SB956,11,20 1. “Claimant" means an individual who files a claim under this subsection for amounts paid for qualified expenses to benefit a qualified family member.

SB956,11,21 2. “Physician” has the meaning given in s. 36.60 (1) (b).

SB956,11,24 3. “Qualified expenses” means amounts paid by a claimant in the year to which the claim relates for items that relate directly to the care or support of a qualified family member, including the following:

SB956,12,2 a. The improvement or alteration of the claimant's primary residence to enable or assist the qualified family member to be mobile, safe, or independent.

SB956,12,4 b. The purchase or lease of equipment to enable or assist the qualified family member to carry out one or more activities of daily living.

SB956,12,8 c. The acquisition of goods or services, or support, to assist the claimant in caring for the qualified family member, including employing a home care aide or personal care attendant, adult day care, specialized transportation, legal or financial services, or assistive care technology.

SB956,12,10 4. “Qualified family member” means an individual to whom all of the following apply:

SB956,12,12 a. The individual is at least 18 years of age during the taxable year to which the claim relates.

SB956,12,14 b. The individual requires assistance with one or more daily living activities, as certified in writing by a physician.

SB956,12,15 c. The individual is the claimant's family member, as defined in s. 46.2805 (6m).

SB956,12,19 (b) Filing claims. For taxable years beginning after December 31, 2021, and subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, 50 percent of the claimant's qualified expenses.

SB956,13,3 (c) Limitations. 1. Subject to subds. 2. and 3., the maximum credit that may be claimed under this subsection for each taxable year with regard to a particular qualified family member is $500 or, if a claimant is married and filing a separate return, $250. If more than one individual may file a claim under this subsection for a particular qualified family member, the maximum credit specified in this subdivision shall be apportioned among all eligible claimants based on the ratio of a claimant's qualified expenses to the total amount of all qualified expenses incurred on behalf of that particular qualified family member, as determined by the department.

SB956,13,9 2. If the claimant is married and filing jointly and the couple's federal adjusted gross income in the taxable year exceeds $170,000, no credit may be claimed under this subsection. If the claimant is married and filing jointly and the couple's federal adjusted gross income in the taxable year exceeds $150,000, but does not exceed $170,000, the credit claimed under this subsection may not exceed the amount determined as follows:

SB956,13,11 a. Determine the amount allowed under par. (b) without regard to this subdivision but with regard to subd. 1.

SB956,13,12 b. Subtract $150,000 from the couple's federal adjusted gross income.

SB956,13,13 c. Divide the amount determined under subd. 2. b. by $20,000.

SB956,13,15 d. Multiply the amount determined under subd. 2. a. by the amount determined under subd. 2. c.

SB956,13,17 e. Subtract the amount determined under subd. 2. d. from the amount determined under subd. 2. a.

SB956,13,24 3. If the claimant files as a single individual or head of household, or is married and files separately, and the claimant's federal adjusted gross income in the taxable year exceeds $85,000, no credit may be claimed under this subsection. If the claimant files as a single individual or head of household, or is married and files separately, and the claimant's federal adjusted gross income in the taxable year exceeds $75,000, but does not exceed $85,000, the credit claimed under this subsection may not exceed the amount determined as follows:

SB956,14,2 a. Determine the amount allowed under par. (b) without regard to this subdivision but with regard to subd. 1.

SB956,14,3 b. Subtract $75,000 from the claimant's federal adjusted gross income.

SB956,14,4 c. Divide the amount determined under subd. 3. b. by $10,000.

SB956,14,6 d. Multiply the amount determined under subd. 3. a. by the amount determined under subd. 3. c.

SB956,14,8 e. Subtract the amount determined under subd. 3. d. from the amount determined under subd. 3. a.

SB956,14,10 4. No credit may be allowed under this subsection unless it is claimed within the period specified under s. 71.75 (2).

SB956,14,12 5. No credit may be claimed under this subsection by nonresidents or part-year residents of this state.

SB956,14,13 6. Qualified expenses may not include any of the following:

SB956,14,14 a. General food, clothing, or transportation expenses.

SB956,14,16 b. Ordinary household maintenance or repair expenses that are not directly related or necessary for the care of the qualified family member.

SB956,14,17 c. Any amount that is paid or reimbursed by insurance or other means.

SB956,14,20 7. No credit may be allowed under this subsection for a taxable year covering a period of less than 12 months, except for a taxable year closed by reason of the death of the taxpayer.

SB956,14,22 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

SB956,18 Section 18. 71.07 (9g) (b) of the statutes, as created by 2021 Wisconsin Act 58, is amended to read:

SB956,15,6 71.07 (9g) (b) Filing claims. For taxable years beginning after December 31, 2021, and subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, an amount equal to 50 100 percent of the federal child and dependent care tax credit claimed by the claimant on his or her federal income tax return for the taxable year to which the claim under this subsection relates.

SB956,19 Section 19 . 71.10 (4) (hd) of the statutes is created to read:

SB956,15,8 71.10 (4) (hd) Family caregiver tax credit under s. 71.07 (8p).

SB956,20 Section 20. 115.28 (66) of the statutes is created to read:

SB956,15,15 115.28 (66) Principal training and support; urban school districts. Annually, award a grant to a nonprofit organization or an urban school district for the purpose of providing training, coaching, and professional support to principals employed by urban school districts. For purposes of this subsection, an “urban school district” is a school district that, in the previous school year, had a membership of at least 18,000 pupils.

SB956,21 Section 21. 115.335 of the statutes is created to read:

SB956,15,19 115.335 Water filtration grants. (1) Beginning in the 2022-23 school year, the department shall award grants to school districts to purchase water bottle filling equipment that includes a water filtration component.

SB956,15,21 (2) The department may promulgate rules to implement and administer this section.

SB956,22 Section 22 . 115.341 of the statutes is amended to read:

SB956,16,7 115.341 School breakfast program. (1) From the appropriation under s. 20.255 (2) (cm), the state superintendent shall reimburse each school board, each operator of a charter school under s. 118.40 (2r) or (2x), each operator of a residential care center for children and youth, as defined in s. 115.76 (14g), the director of the program under s. 115.52, and the director of the center under s. 115.525 15 cents for each breakfast served at a school, as defined in 7 CFR 220.2, that meets the requirements of 7 CFR 220.8 or 220.8a, whichever is applicable, and shall reimburse each governing body of a private school or tribal school 15 cents for each breakfast served at the private school or tribal school that meets the requirements of 7 CFR 220.8 or 220.8a, whichever is applicable.

SB956,16,12 (2) If the appropriation under s. 20.255 (2) (cm) in any fiscal year is insufficient to pay the full amount of aid under this section, the state superintendent shall prorate state aid payments among the school boards, operators, directors, and governing bodies of private schools and tribal schools entitled to the aid under sub. (1).

SB956,23 Section 23. 115.341 (3) of the statutes is created to read:

SB956,16,20 115.341 (3) Notwithstanding sub. (1), the state superintendent may not reimburse the operator of a charter school under s. 118.40 (2r) or (2x), the operator of a residential care center for children and youth, as defined in s. 115.76 (14g), the director of the program under s. 115.52, the director of the center under s. 115.525, or the governing body of a private or tribal school for any breakfasts served at a school, as defined in 7 CFR 220.2, during the prior school year if the school ceased operations during that prior school year.

SB956,24 Section 24. 115.342 of the statutes is created to read:

SB956,16,22 115.342 Supplemental nutrition aid. (1) Definitions. In this section:

SB956,17,2 (a) “Educational agency” means a school board, an operator of a charter school under s. 118.40 (2r) or (2x), a private school, a tribal school, an operator of a residential care center for children and youth, as defined in s. 115.76 (14g), the director of the program under s. 115.52, and the director of the center under s. 115.525.

SB956,17,4 (b) “Eligible pupil” means a pupil who satisfies the income eligibility criteria for a reduced-price lunch under 42 USC 1758 (b) (1) (A).