Assembly Bill 878 proposes the creation of a tax credit for individuals who pay sales and use taxes on services purchased through amusement devices, which are defined as single or multiplayer machines or games played for amusement. The bill allows claimants to receive a credit against their income and franchise taxes for the total amount of the additional Milwaukee County sales and use tax and any municipal sales and use tax paid on these services. This credit is applicable for taxable years beginning after December 31, 2024, and is limited to individuals, as partnerships, tax-option corporations, and limited liability companies are excluded from claiming the credit directly.

The bill also includes several amendments to existing statutes to incorporate the new credit provisions, specifically adding references to the amusement device sales tax credit in various sections of the tax code. Notably, it amends sections related to the computation of credits and the treatment of these credits for partnerships and corporations, ensuring that the credit is passed through to individual partners or shareholders based on their ownership interests. The legislation aims to provide financial relief to individuals engaging with amusement devices while also addressing the specific tax structures in Milwaukee County.