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Bill

Bill

AB 1030

Relating to: increasing the earned income tax credit for families with fewer than three children. (FE)

2025-2026 Regular Session Introduced by Clint Anderson and 24 co-sponsors

Wisconsin bill expands earned income tax credit for working families with fewer than three children, increasing support for ~200,000 small-family households.

Failed to pass pursuant to Senate Joint Resolution 1
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Bill Summary · AB 1030

Legislative bill overview

AB 1030 proposes to expand Wisconsin's earned income tax credit (EITC) specifically for families with fewer than three children. The bill adjusts the tax benefit structure to provide greater support to working families below certain income thresholds who don't qualify for the maximum EITC currently reserved for families with three or more children.

Why is this important

The EITC is a major anti-poverty tool that supplements low-wage workers' earnings through the tax system. Wisconsin families with one or two children currently receive smaller credits than those with three or more children, creating a disparity that affects roughly 200,000+ working families. This bill addresses whether tax policy should equally support smaller working families or maintain larger family incentives.

Potential points of contention

  • Cost to state budget: Expanding EITC eligibility or benefit amounts requires fiscal resources; the March 2026 fiscal estimate will clarify the taxpayer impact and whether other budget priorities must be reduced
  • Family policy philosophy: Disagreement over whether tax credits should incentivize larger families (current structure) or provide equal support regardless of family size (proposed change)
  • Effectiveness debate: Questions about whether tax credits are the most efficient anti-poverty mechanism compared to wage support, childcare assistance, or direct services for working families

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

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