Wisconsin Assembly Bill AB1030

Wisconsin 2025-2026 Regular Session

• Introduced: 2/6/26
• Refer: 2/6/26
• Failed: 3/23/26

Caption

An Act to amend 71.07 (9e) (aj) (intro.); to create 71.07 (9e) (ak) of the statutes; Relating to: increasing the earned income tax credit for families with fewer than three children. (FE)

Impact

The bill is seen as a pivotal step in supporting low-income families in Wisconsin by increasing the financial benefits offered through state tax policy. By enhancing the EITC, AB1030 seeks to alleviate the tax burden on families who often struggle to meet living costs, thereby contributing to overall economic stability for these households. Additionally, the refundable nature of the credit ensures that individuals will receive refunds if the credit surpasses their actual tax liability, thus providing a direct financial boost.

Summary

Assembly Bill 1030 aims to enhance the Wisconsin earned income tax credit (EITC) for individuals with fewer than three qualifying children. It proposes that individuals with at least one qualifying child can claim a credit that equals 34 percent of their federal EITC, regardless of the number of children. For individuals with no qualifying children, the bill allows a claim of 15 percent of the federal EITC. This modification is set to apply to taxable years beginning after December 31, 2025, thus allowing families to benefit from increased tax relief over time.

Contention

While proponents praise the increased EITC as a vital support system for working families, there may be concerns regarding the long-term fiscal implications of the bill. Opponents may argue that increasing the credit without offsetting measures could strain state revenues or underfund other essential services. Balancing the fiscal responsibilities of the state while ensuring adequate support for low-income families will likely be a topic of contention in legislative discussions surrounding this bill.