Assembly Bill 52 aims to expand the homestead income tax credit in Wisconsin by making several key changes to the existing law. The bill proposes to reduce the percentage used to calculate the credit for household income exceeding $8,060 from 8.785% to 5.614%, while also increasing the maximum allowable household income from $24,680 to $35,000. Additionally, the bill introduces provisions to index the income thresholds and maximum property tax amounts for inflation in future tax years. The bill repeals certain existing provisions related to eligibility and modifies others to clarify the requirements for claiming the credit.

Specifically, the bill amends various sections of the statutes, including the introduction of a new section (71.54 (1) (h)) that outlines the updated credit calculations for claims filed in 2026 and thereafter. It also repeals sections that previously limited eligibility based on earned income and modifies the requirements for disabled claimants. The maximum property taxes or rent constituting property taxes used to calculate the credit remains at $1,460, but this amount will also be indexed for inflation starting in 2025. Overall, the bill seeks to make the homestead tax credit more accessible and beneficial for Wisconsin residents.

Statutes affected:
Bill Text: 71.54(1)(g)(intro.), 71.54, 71.54(1)(g)4, 71.54(1)(g)5, 71.54(1)(g)6.(intro.), 71.54(1)(g)7, 71.54(2)(b)4, 71.54(2m)