LRB-1732/1
JK:skw&cdc
2021 - 2022 LEGISLATURE
February 18, 2021 - Introduced by Representatives McGuire, Conley, Ohnstad,
Riemer, Anderson, Baldeh, Bowen, Brostoff, Cabrera, Considine, Doyle,
Drake, Emerson, Milroy, S. Rodriguez, Shankland, Spreitzer, Stubbs,
Vining and Sinicki, cosponsored by Senators Ringhand, Agard,
Larson, Roys
and Smith. Referred to Committee on Ways and Means.
AB80,1,3
1An Act to amend 71.07 (9e) (aj) (intro.); and
to create 71.07 (9e) (ak) of the
2statutes;
relating to: adopting for state tax purposes federal changes to the
3earned income tax credit.
Analysis by the Legislative Reference Bureau
This bill adopts for state income tax purposes changes made by the federal
Consolidated Appropriations Act of 2021 related to the earned income tax credit.
Under current law, the Wisconsin EITC is equal to a percentage of the federal EITC.
The EITC on both the state and federal levels is intended to provide financial
assistance to low-income families. By adopting the changes made by the CAA, if a
taxpayer's earned income for 2020 is less than the earned income for the preceding
year, the taxpayer may elect to use the earned income for the preceding year for the
taxable year 2020 for purposes of the EITC.
For further information see the state 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:
AB80,1
4Section 1
. 71.07 (9e) (aj) (intro.) of the statutes is amended to read:
AB80,2,35
71.07
(9e) (aj) (intro.) For taxable years beginning after December 31, 2010,
6and before January 1, 2020, an individual may credit against the tax imposed under
1s. 71.02 an amount equal to one of the following percentages of the federal basic
2earned income credit for which the person is eligible for the taxable year under
3section
32 (b) (1) (A) to (C) of the Internal Revenue Code:
AB80,2
4Section 2
. 71.07 (9e) (ak) of the statutes is created to read:
AB80,2,95
71.07
(9e) (ak) For taxable years beginning after December 31, 2019, an
6individual may credit against the tax imposed under s. 71.02 an amount equal to one
7of the following percentages of the federal basic earned income credit for which the
8person is eligible for the taxable year under section
32 of the Internal Revenue Code
9in effect for federal purposes on December 31, 2020:
AB80,2,1110
1. If the person has one qualifying child who has the same principal place of
11abode as the person, 4 percent.
AB80,2,1312
2. If the person has 2 qualifying children who have the same principal place of
13abode as the person, 11 percent.
AB80,2,1514
3. If the person has 3 or more qualifying children who have the same principal
15place of abode as the person, 34 percent.
