Assembly Bill 1030 proposes an increase in the Wisconsin earned income tax credit (EITC) for individuals with fewer than three qualifying children. Currently, the EITC is a percentage of the federal EITC, with rates of 4% for one qualifying child, 11% for two, and 34% for three or more. The bill amends the existing law to establish that, for taxable years beginning after December 31, 2025, individuals with at least one qualifying child can claim 34% of the federal EITC, regardless of the number of qualifying children. For individuals without any qualifying children, the claimable percentage will be set at 15%.

The bill also includes a deletion of the previous provisions that applied to taxable years beginning after December 31, 2010, and before January 1, 2026, which outlined the previous percentages of the federal EITC that could be claimed. The new provisions aim to provide greater financial support to families with lower incomes by increasing the refundable tax credit, thereby allowing eligible individuals to receive a larger refund if their credit exceeds their tax liability.

Statutes affected:
Bill Text: 71.07(9e)(aj)(intro.), 71.07