Wisconsin Senate Bill SB1074

Wisconsin 2025-2026 Regular Session

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

Caption

An Act to renumber 71.07 (9g) (d); to amend 71.07 (9g) (b) 2., 71.10 (4) (cs) and 71.10 (4) (i); to create 20.835 (2) (cd), 71.07 (9g) (b) 3. and 71.07 (9g) (d) 2. of the statutes; Relating to: refundability of the additional child and dependent care tax credit and making an appropriation. (FE)

Impact

The proposed amendments under SB1074 would impact state tax laws by providing additional financial incentives for families in need of child and dependent care. By making the credit refundable, families that may not owe enough tax to benefit from the credit under current law will be eligible for direct refunds, enhancing the economic support provided through this tax mechanism. This change is expected to assist lower-income families more significantly than before, thereby seeking to promote equitable access to child care.

Summary

SB1074 proposes changes to the child and dependent care tax credit, aiming to enhance refundability for taxpayers. This bill seeks to reform the existing tax framework by ensuring that families with qualifying expenses for care receive a more substantial financial benefit. The intention is to ease the financial burden on households responsible for the care of children or dependents, thus promoting greater economic stability for these families.

Contention

While the bill is seen as a step forward in supporting families, there are potential points of contention. Some legislators express concerns about the fiscal implications of expanding the tax credit, questioning how it might impact the overall state budget. Furthermore, there may be discussions regarding the adequacy of the current metrics used to determine eligibility and the amounts provided under the credit, potentially opening a debate on the fairness and effectiveness of such tax mechanisms.