Department of Revenue Secretary Peter Barca is working on bipartisan buy-in for Wisconsin tax law changes to state law more consistent with recent federal tax law changes and to help residents during the COVID-19 pandemic.
The first change would mean adopting the federal government’s treatment for the Earned Income Tax Credit (EITC), allowing low-income families to utilize their 2019 earned income for purposes of claiming an EITC on their 2020 federal income tax return. The change will allow Wisconsin families to keep a combined $30.6 million of their income.
The second change is regarding the treatment of how grants to Wisconsin businesses are handled for income tax purposes. CARES Act grant funding received by Wisconsin small businesses would be excluded from state income tax, saving small businesses a combined $23.3 million in Wisconsin income taxes.
