Amendment SA5-SSA2-SB45

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)