Wisconsin Assembly Bill AB1227

Wisconsin 2025-2026 Regular Session

• Introduced: 3/19/26
• Refer: 3/19/26
• Failed: 3/23/26

Caption

An Act to amend 71.10 (4) (i); to create 20.835 (2) (fm) and 71.07 (8d) of the statutes; Relating to: an income tax credit for property taxes paid by certain senior citizens and making an appropriation. (FE)

Summary

AB1227 creates a new refundable Wisconsin income tax credit for certain senior citizens who pay property taxes on their principal residence. The credit equals 75% of property taxes paid during the taxable year, but only for claimants who are at least 65 years old by the end of the tax year, have household income below $24,500, and own a principal dwelling with an assessed value below $300,000. The bill applies to taxable years beginning after December 31, 2025, and directs the Department of Revenue to provide claim forms and administer the credit. The credit is refundable, meaning eligible taxpayers can receive a payment even if the credit exceeds their income tax liability. The bill also creates a standing appropriation to fund those payments and amends the state tax credit ordering rules to include the new senior citizen property tax credit among the credits that affect tax calculations. It defines key terms such as household income, principal dwelling, and property taxes, and limits eligibility for part-year residents and nonresidents.

Impact

AB1227 would add a new section to Wisconsin’s income tax code, s. 71.07 (8d), and create an appropriation in s. 20.835 (2) (fm) to pay refundable claims. It would also amend s. 71.10 (4) (i) to incorporate the new credit into the list of credits and payments considered in tax administration. The bill would primarily affect low-income homeowners age 65 and older, while excluding those who already claim certain other property-tax-related credits for the same tax year, including the homestead credit and veterans/surviving spouses property tax credit.

Sentiment

The available context suggests generally favorable treatment of the bill, or at least no recorded opposition in the materials provided. There are no committee transcripts or recorded votes included, and the bill had only reached the stage of receiving a fiscal estimate. The proposal appears framed as targeted tax relief for older homeowners, which typically draws support as a senior assistance measure.

Contention

The main policy tensions are eligibility limits and overlap with existing tax credits. The bill restricts the credit to households with income below $24,500 and homes assessed below $300,000, which may be seen as either a focused targeting mechanism or an exclusion of many seniors who still face property tax burdens. It also bars claimants from receiving the new credit if they claim several other property-tax-related credits for the same year, which could create concern among taxpayers who currently rely on those credits and among policymakers weighing duplication versus broader relief.