Senate Bill 60 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 the credit and creates new language to clarify eligibility requirements, particularly for disabled claimants and those over the age of 61.

The bill also modifies the structure of the homestead tax credit by amending various sections of the statutes. It establishes that claims filed in 2026 and thereafter will follow the new guidelines, which include a maximum property tax or rent amount of $1,460 and a limit on the credit for households with income exceeding $35,000. The adjustments are designed to make the credit more accessible to a broader range of Wisconsin residents, particularly those with lower incomes, while ensuring that the credit remains responsive to inflation over time.

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)