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 the requirements for disabled claimants, ensuring they provide proof of their disability for the tax year in question.

The bill also includes amendments to the legal language governing the homestead tax credit, specifically in sections 71.54 (1) and (2) of the statutes. Notably, it repeals sections that previously limited eligibility based on earned income and introduces new language that clarifies the conditions under which credits may be claimed. The changes are set to take effect for claims filed for the 2025 tax year and beyond, reflecting a significant shift in the state's approach to providing tax relief to homeowners and renters.

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)