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Bill

AB 1130

Relating to: a premium assistance individual income tax credit and making an appropriation. (FE)

2025-2026 Regular Session Introduced by Mike Bare and 12 co-sponsors

Wisconsin bill creates a state income tax credit to help residents afford health insurance premiums through new appropriated funding.

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Bill Summary · AB 1130

Legislative bill overview

AB 1130 establishes a premium assistance individual income tax credit in Wisconsin and allocates state funding to support it. The bill appears designed to help lower-income residents afford health insurance premiums by providing a direct tax credit mechanism. Specific details about income thresholds, credit amounts, and eligible insurance types are not provided in the available information.

Why is this important

Health insurance affordability is a significant barrier to coverage for many Wisconsin residents, particularly those earning too much to qualify for Medicaid but too little to afford marketplace premiums without assistance. A state-level premium tax credit could reduce uninsured rates and provide financial relief, though the actual impact depends heavily on the credit's structure and adequacy. This represents a direct state investment in healthcare access rather than relying solely on federal subsidies.

Potential points of contention

  • Cost and funding: The "making an appropriation" language indicates state budget impact; lawmakers will debate whether this is affordable and prioritized compared to other fiscal needs
  • Credit design details: The generosity of the credit amount, income eligibility limits, and whether it covers all insurance types or specific plans will determine effectiveness and cost
  • Complementary policies: Questions about how this interacts with federal tax credits and whether it risks duplicative benefits or creates cliff effects that discourage work/earning

Compiled from official sources — confirm details with the bill’s official record.

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