An Act to amend 71.07 (6e) (c) 2. of the statutes; Relating to: certain limitations on claiming the veterans and surviving spouses property tax credit. (FE)
Summary
SB261 would change Wisconsin income tax law to remove a restriction that currently prevents a taxpayer from claiming the farmland preservation tax credit and the veterans and surviving spouses property tax credit in the same tax year. Under current law, if an individual or the individual’s spouse files a claim for certain other credits tied to farmland preservation or related agricultural tax provisions, the veterans and surviving spouses property tax credit cannot also be claimed for that same year. This bill would amend that limitation so both credits could be claimed together, beginning with taxable years starting January 1, 2025.
The bill is narrowly focused on one section of the tax code, specifically Wisconsin Statutes section 71.07(6e)(c)2. It does not create a new credit or change the eligibility rules for either existing credit; rather, it removes a mutual exclusivity rule that currently bars simultaneous use of the credits. As a result, eligible veterans, surviving spouses, and taxpayers who also qualify for farmland preservation-related credits could potentially receive greater combined tax relief.
Impact
SB261 would affect state income tax administration by allowing certain taxpayers to stack the farmland preservation tax credit with the veterans and surviving spouses property tax credit in the same taxable year. The practical effect would be to expand the number of taxpayers who can benefit from both provisions and potentially reduce state revenue through increased credit claims. The bill amends Wisconsin Statutes section 71.07(6e)(c)2. and applies prospectively to taxable years beginning on January 1, 2025.
Sentiment
The available record suggests generally favorable treatment of the bill’s policy goal, as it was introduced with bipartisan cosponsorship from multiple senators and representatives. The measure appears to have been framed as a targeted tax relief change for veterans, surviving spouses, and qualifying agricultural property owners. However, the bill ultimately failed to pass pursuant to Senate Joint Resolution 1, indicating that it did not secure final legislative approval despite its broad sponsorship.
Contention
The main policy issue is whether taxpayers should be allowed to claim both credits in the same year, rather than being forced to choose between them. Supporters would likely view the change as a modest fairness adjustment that helps veterans and surviving spouses without altering eligibility standards, while also preserving farmland preservation incentives. Any opposition would likely center on the fiscal cost of allowing dual claims and on whether the state should continue limiting overlapping tax benefits. No committee transcript or recorded vote details are available, so the specific arguments of individual legislators are not documented in the provided materials.
Crossfiled
An Act to amend 71.07 (6e) (c) 2. of the statutes; Relating to: certain limitations on claiming the veterans and surviving spouses property tax credit. (FE)