An Act to amend 71.10 (4) (i); to create 20.835 (2) (er) and 71.07 (8w) of the statutes; Relating to: a refundable income tax credit for bicycle purchases and making an appropriation. (FE)
Summary
AB333 creates a new refundable Wisconsin income tax credit for the purchase of bicycles, including electric bicycles, for a taxpayer’s dependents. The credit would apply to taxable years beginning after December 31, 2024, and would equal the amount paid for each bicycle, up to $200 per dependent per year. To claim the credit, the taxpayer must be an individual with family income at or below 200 percent of the federal poverty line, and must submit documentation of the purchase price with the tax return.
Because the credit is refundable, eligible taxpayers could receive the value of the credit even if it exceeds their income tax liability, with the excess paid out by the state. The bill also creates a corresponding appropriation to fund those payments and amends the state’s tax credit ordering statute to include the bicycle credit alongside other credits. It excludes part-year residents and nonresidents, and it follows existing administrative rules for certain refundable credits.
Impact
The bill would add a new refundable individual income tax credit under Wisconsin statutes, create a dedicated appropriation in the state budget for payments of the credit, and amend the tax credit sequencing statute to account for the bicycle credit. Its practical effect would be to reduce state income tax liability for qualifying low-income households purchasing bicycles for dependents, while also requiring the Department of Revenue to administer documentation and refund payments. The bill would affect low-income taxpayers, families with dependents, and state revenue collections.
Sentiment
The available context shows the bill was introduced with a sizable group of Democratic Assembly and Senate cosponsors, suggesting support among its authors for using the tax code to subsidize bicycle purchases for low-income families. No committee transcript or recorded vote is provided, so there is no direct evidence of floor debate or bipartisan support. The bill ultimately failed to pass pursuant to Senate Joint Resolution 1, indicating it did not advance to enactment despite its introduction.
Contention
The main likely points of contention are fiscal cost, the use of a refundable tax credit rather than a direct spending program, and whether state tax policy should subsidize consumer purchases of bicycles and e-bikes. Another possible issue is the income eligibility threshold and the $200 per-dependent cap, which may be viewed as either targeted assistance or too limited to meaningfully affect transportation access. Because no committee discussion is included, specific objections from legislators or stakeholders are not available in the record provided.
Crossfiled
An Act to amend 71.10 (4) (i); to create 20.835 (2) (er) and 71.07 (8w) of the statutes; Relating to: a refundable income tax credit for bicycle purchases and making an appropriation. (FE)