Amendment SA5-SSA2-SB45

SB45-SSA2-SA5,138,3 2. An amount equal to the percentage change determined under s. 25.491 (14) (b) 1. multiplied by the sum of the amount credited to the accounts under s. 25.491 (2), (8), and (9) in fiscal year 2025-26.

SB45-SSA2-SA5,138,6 (b) Notwithstanding sub. (2), on the 2nd Monday in November in fiscal year 2026-27, the secretary shall transfer from the general fund to the local government fund 85 percent of the sum of the amounts described in par. (a) 1. and 2.

SB45-SSA2-SA5,213 Section 213. 25.491 (14) of the statutes is created to read:

SB45-SSA2-SA5,138,12 25.491 (14) (a) No later than July 1, 2026, the department of revenue shall determine the amount that revenues from the taxes imposed under ss. 77.52 and 77.53 decreased in fiscal year 2025-26 due to the exemption under s. 77.54 (30) (a) 2. for electricity and natural gas sold during the months of May, June, July, August, September, and October for residential use.

SB45-SSA2-SA5,138,21 (b) 1. Notwithstanding subs. (1) (c) 2., (2), (8), and (9) (a) and (b), the department of revenue shall add the amount determined under par. (a) to the amount of revenues received from the taxes imposed under ss. 77.52 and 77.53 for fiscal year 2025-26, as specified for that fiscal year as outlined in the summary of estimated general fund taxes under the biennial budget act prepared by the legislative fiscal bureau, and that amount shall be used to determine the percentage change in the amount of revenues received from the taxes imposed under ss. 77.52 and 77.53 for fiscal year 2025-26 from fiscal year 2024-25 for purposes of subs. (1) (c) 2., (2), (8), and (9) (a) and (b).

SB45-SSA2-SA5,139,2 2. a. Notwithstanding sub. (2), in fiscal year 2026-27, an amount equal to the amount credited to the county and municipal aid account under sub. (2) in fiscal year 2025-26, increased by the percentage change determined under subd. 1., shall be credited to the county and municipal aid account under sub. (2).

SB45-SSA2-SA5,139,6 b. Notwithstanding sub. (8), in fiscal year 2026-27, an amount equal to the amount credited to the municipal services account under sub. (8) in fiscal year 2025-26, increased by the percentage change determined under subd. 1., shall be credited to the municipal services account under sub. (8).

SB45-SSA2-SA5,139,11 c. Notwithstanding sub. (9) (a), in fiscal year 2026-27, an amount equal to the amount credited to the supplemental county and municipal aid account under sub. (9) (a) in fiscal year 2025-26, increased by the percentage change determined under subd. 1., shall be credited to the supplemental county and municipal aid account under sub. (9) (a).

SB45-SSA2-SA5,139,16 d. Notwithstanding sub. (9) (b), in fiscal year 2026-27, an amount equal to the amount credited to the supplemental county and municipal aid account under sub. (9) (b) in fiscal year 2025-26, increased by the percentage change determined under subd. 1., shall be credited to the supplemental county and municipal aid account under sub. (9) (b).”.

SB45-SSA2-SA5,139,17 6. At the appropriate places, insert all of the following:

SB45-SSA2-SA5,139,18 “Section 214. 20.835 (2) (ce) of the statutes is created to read:

SB45-SSA2-SA5,139,20 20.835 (2) (ce) Property tax credit. A sum sufficient to make the payments under s. 71.07 (9c) (c).

SB45-SSA2-SA5,215 Section 215. 71.05 (1) (am) of the statutes is amended to read:

SB45-SSA2-SA5,139,24 71.05 (1) (am) Military retirement systems. All retirement payments received from the U.S. military employee retirement system, to the extent that such payments are not exempt under par. (a) or sub. (6) (b) 54.

SB45-SSA2-SA5,216 Section 216. 71.05 (1) (an) of the statutes is amended to read:

SB45-SSA2-SA5,140,6 71.05 (1) (an) Uniformed services retirement benefits. All retirement payments received from the U.S. government that relate to service with the coast guard, the commissioned corps of the national oceanic and atmospheric administration, or the commissioned corps of the public health service, to the extent that such payments are not exempt under par. (a) or (am) or sub. (6) (b) 54.

SB45-SSA2-SA5,217 Section 217. 71.05 (6) (b) 4. (intro.) of the statutes is amended to read:

SB45-SSA2-SA5,140,21 71.05 (6) (b) 4. (intro.) Disability payments other than disability payments that are paid from a retirement plan, the payments from which are exempt under subd. 54. and sub. (1) (am) and (an), if the individual either is single or is married and files a joint return and is under 65 years of age before the close of the taxable year to which the subtraction relates, retired on disability, and, when the individual retired, was permanently and totally disabled. In this subdivision, “permanently and totally disabled” means an individual who is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. An individual shall not be considered permanently and totally disabled for purposes of this subdivision unless proof is furnished in such form and manner, and at such times, as prescribed by the department. The exclusion under this subdivision shall be determined as follows:

SB45-SSA2-SA5,218 Section 218. 71.05 (6) (b) 54. (intro.) of the statutes is amended to read:

SB45-SSA2-SA5,141,6 71.05 (6) (b) 54. (intro.) Except for a payment that is exempt under sub. (1) (a), (am), or (an), or that is exempt as a railroad retirement benefit, and except as provided under subds. 54m. and 54mn., for taxable years beginning after December 31, 2020, up to $5,000 of payments or distributions received each year by an individual from a qualified retirement plan under the Internal Revenue Code or from an individual retirement account established under 26 USC 408, if all of the following conditions apply:

SB45-SSA2-SA5,219 Section 219. 71.05 (6) (b) 54m. of the statutes is created to read:

SB45-SSA2-SA5,141,14 71.05 (6) (b) 54m. a. Except for a payment that is exempt under sub. (1) (a), (am), or (an), or that is exempt as a railroad retirement benefit, and except as provided under subd. 54mn., for taxable years beginning after December 31, 2024, the amount, up to the limit specified in subd. 54m. b., c., or d., whichever is applicable, of the payments or distributions received each year from a qualified retirement plan under the Internal Revenue Code or from an individual retirement account established under 26 USC 408.

SB45-SSA2-SA5,141,17 b. If the individual is at least 65 years of age before the close of the taxable year to which the subtraction relates, the amount claimed by the individual under this subdivision may not exceed $15,000 for that taxable year.

SB45-SSA2-SA5,141,21 c. If the individual is married and is a joint filer, and both spouses are at least 65 years of age before the close of the taxable year to which the subtraction relates, the total amount claimed by the spouses under this subdivision may not exceed $30,000 for that taxable year.

SB45-SSA2-SA5,142,2 d. If the individual is married and files a separate return and is at least 65 years of age before the close of the taxable year to which the subtraction relates, the amount claimed by each spouse as a subtraction under this subdivision may not exceed $15,000 for that taxable year.

SB45-SSA2-SA5,142,5 e. The individual has not claimed any credit listed under s. 71.10 (4) for the same taxable year for which the individual claimed the subtraction under this subdivision.

SB45-SSA2-SA5,220 Section 220. 71.05 (6) (b) 54mn. of the statutes is created to read:

SB45-SSA2-SA5,142,14 71.05 (6) (b) 54mn. For taxable years beginning after December 31, 2024, for an individual who is a part-year resident of this state, the amount that is calculated by multiplying the applicable amount under subd. 54m. b., c., or d. by a fraction the numerator of which is the individual’s wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual’s total wages, salary, tips, unearned income, and net earnings from a trade or business. A nonresident of this state is not eligible to claim the subtraction under subd. 54m.

SB45-SSA2-SA5,221 Section 221. 71.07 (9c) of the statutes is created to read:

SB45-SSA2-SA5,142,16 71.07 (9c) Property tax credit. (a) Definitions. In this subsection:

SB45-SSA2-SA5,142,18 1. “Claimant” means an individual whose household income is less than $150,000 and who files a claim under this subsection.

SB45-SSA2-SA5,142,20 2. “Household” means a claimant and an individual related to the claimant as husband or wife.

SB45-SSA2-SA5,143,2 3. “Household income” means all income received by all persons of a household in a calendar year while members of the household, less $500 for each of the claimant’s dependents, as defined in 26 USC 152, who have the same principal abode as the claimant for more than 6 months during the year to which the claim relates.

SB45-SSA2-SA5,143,3 4. “Income” has the meaning given in s. 71.52 (6).

SB45-SSA2-SA5,143,4 5. “Principal dwelling” has the meaning given in sub. (9) (a) 2.

SB45-SSA2-SA5,143,5 6. “Property taxes” has the meaning given in sub. (9) (a) 3.

SB45-SSA2-SA5,143,6 7. “Rent constituting property taxes” has the meaning given in sub. (9) (a) 4.

SB45-SSA2-SA5,143,10 (b) Filing claims. For taxable years beginning after December 31, 2024, 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, one of the following amounts:

SB45-SSA2-SA5,143,14 1. If the claimant’s household income is less than $100,000 in the year to which the claim relates, an amount equal to the following percentage of the amount by which the claimant’s property taxes or rent constituting property taxes or both exceed 4 percent of the claimant’s household income:

SB45-SSA2-SA5,143,16 a. For taxable years beginning after December 31, 2024, and before January 1, 2026, 10 percent.

SB45-SSA2-SA5,143,18 b. For taxable years beginning after December 31, 2025, and before January 1, 2027, 15 percent.

SB45-SSA2-SA5,143,19 c. For taxable years beginning after December 31, 2026, 40 percent.

SB45-SSA2-SA5,143,22 2. If the claimant’s household income is at least $100,000 but less than $150,000 in the year to which the claim relates, an amount that is calculated as follows:

SB45-SSA2-SA5,144,2 a. Calculate the value of a fraction, the denominator of which is $50,000 and the numerator of which is the difference between the claimant’s household income and $100,000.

SB45-SSA2-SA5,144,3 b. Subtract from 1.0 the amount that is calculated under subd. 2. a.

SB45-SSA2-SA5,144,6 c. Multiply the amount that is calculated under subd. 2. b. by the amount for which the claimant would have otherwise been eligible to claim under subd. 1. a. b. or c. for the taxable year for which the claim is made.

SB45-SSA2-SA5,144,11 (c) Refundability. If the allowable amount of the claim exceeds the income taxes otherwise due on the claimant’s income, the amount of the claim not used as an offset against those taxes shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft, or other draft from the appropriation under s. 20.835 (2) (ce).

SB45-SSA2-SA5,144,14 (d) Limitations. 1. The credit under this subsection shall be reduced by the amount claimed by the claimant under s. 71.53 for the same taxable year to which the claim under this subsection relates.

SB45-SSA2-SA5,144,17 2. No credit is allowed under this subsection if the claimant or the claimant’s spouse files a claim under sub. (6e) for the same taxable year to which the claim under this subsection relates.

SB45-SSA2-SA5,144,19 3. No credit is allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

SB45-SSA2-SA5,144,21 4. Part-year residents and nonresidents of this state may not claim the credit under this subsection.

SB45-SSA2-SA5,144,23 5. The credit under this subsection may not be claimed by a person who may be claimed as a dependent on the individual income tax return of another taxpayer.

SB45-SSA2-SA5,145,4 6. If a principal dwelling is rented by a person from another person under circumstances determined by the department of revenue to not be at arm’s length, the department may determine rent at arm’s length and the determination shall be final for purposes of this subsection.

SB45-SSA2-SA5,145,6 7. Only one claimant per household per year shall be entitled to claim a credit under this subsection.

SB45-SSA2-SA5,145,9 8. No credit is allowed under this subsection if the assessed value of the claimant’s property for the taxable year for which the claim under this subsection relates exceeds $1,000,000.

SB45-SSA2-SA5,145,11 (e) Administration. 1. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

SB45-SSA2-SA5,145,17 2. Annually, beginning in 2026, the department shall increase the dollar amounts under pars. (a) 1. and 3., (b) 1. and 2., and (d) 8. by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2024, as determined by the federal department of labor.

SB45-SSA2-SA5,222 Section 222. 71.07 (9e) (aj) (intro.) of the statutes is amended to read:

SB45-SSA2-SA5,145,23 71.07 (9e) (aj) (intro.) For taxable years beginning after December 31, 2010, and before January 1, 2025, an individual may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the person is eligible for the taxable year under section 32 of the Internal Revenue Code:

SB45-SSA2-SA5,223 Section 223. 71.07 (9e) (ak) of the statutes is created to read:

SB45-SSA2-SA5,146,5 71.07 (9e) (ak) For taxable years beginning after December 31, 2024, an individual may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal earned income credit for which the individual is eligible for the taxable year under section 32 of the Internal Revenue Code:

SB45-SSA2-SA5,146,7 1. If the individual has one or more qualifying children who have the same principal place of abode as the individual, 34 percent.

SB45-SSA2-SA5,146,12 2. If the individual has no qualifying children, 15 percent. For purposes of this subdivision, the requirement under section 32 (c) (1) (A) (ii) (II) of the Internal Revenue Code that the individual be younger than age 65 shall be disregarded in determining the amount of the federal earned income credit for which the individual is eligible.

SB45-SSA2-SA5,224 Section 224. 71.10 (4) (i) of the statutes is amended to read:

SB45-SSA2-SA5,146,22 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and beyond under s. 71.613, homestead credit under subch. VIII, jobs tax credit under s. 71.07 (3q), business development credit under s. 71.07 (3y), research credit under s. 71.07 (4k) (e) 2. a., veterans and surviving spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s. 71.07 (3w), electronics and information technology manufacturing zone credit under s. 71.07 (3wm), property tax credit under s. 71.07 (9c), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

SB45-SSA2-SA5,225 Section 225. 71.83 (1) (a) 6. of the statutes is amended to read:

SB45-SSA2-SA5,147,6 71.83 (1) (a) 6. ‘Retirement plans.’ Any natural person who is liable for a penalty for federal income tax purposes under section 72 (m) (5), (q), (t), and (v), 4973, 4974, 4975, or 4980A of the Internal Revenue Code is liable for 33 percent of the federal penalty unless the income received is exempt from taxation under s. 71.05 (1) (a) or (6) (b) 54., 54m., or 54mn. The penalties provided under this subdivision shall be assessed, levied, and collected in the same manner as income or franchise taxes.

SB45-SSA2-SA5,226 Section 226. 73.03 (73) (f) 1. of the statutes is amended to read:

SB45-SSA2-SA5,147,12 73.03 (73) (f) 1. Subject to subd. 2., for taxable years beginning after December 31, 2020, the department shall make the pilot program described under par. (b) permanent and applicable to all eligible claimants of the earned income tax credit under s. 71.07 (9e) (aj), based on the specifications described under pars. (b) and (c) 2.”.

SB45-SSA2-SA5,147,13 (end)