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%. Additionally, it raises the maximum allowable household income for claiming the credit from $24,680 to $35,000. The bill also introduces provisions to index the income thresholds and maximum property tax amounts for inflation in future tax years.

Furthermore, the bill repeals certain existing provisions related to the credit and amends others to clarify eligibility requirements, particularly for disabled claimants and those over the age of 61. Specifically, it removes the requirement that no credit may be allowed if the claimant has no earned income, unless they meet specific criteria. The new legal language created in the bill establishes a framework for claims filed in 2026 and beyond, ensuring that the credit remains accessible and relevant to changing economic conditions.

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)