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SB 1015

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

2025-2026 Regular Session Introduced by Kristin Dassler-Alfheim and 9 co-sponsors

Wisconsin SB 1015 would increase the state earned income tax credit for households with one or two qualifying children.

Failed to pass pursuant to Senate Joint Resolution 1
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WeVote Research Nonpartisan
Bill Summary · SB 1015

Summary of Wisconsin Senate Bill 1015 (Session 2025)

Overview

  • Bill: SB 1015
  • Jurisdiction: Wisconsin
  • Topic: Increasing the earned income tax credit (EITC) for families with fewer than three children
  • Status notes: Introduced and referred to committee in February 2026; multiple coauthors and sponsors listed; fiscal estimate available as of March 10, 2026. Reported activity includes a failed passage pursuant to Senate Joint Resolution 1 on 2026-03-23 (action note in history). The bill appears to be tied to modifying the state EITC parameters to provide greater relief to smaller families.

1) Purpose and Intent

  • The core objective of SB 1015 is to increase the state Earned Income Tax Credit for families with fewer than three children.
  • The measure targets low- to moderate-income households to bolster work incentives, reduce poverty, and increase after-tax family resources for smaller families.

2) Key Provisions and Changes (as drafted in concept)

  • EITC enhancement for small families: The bill would modify Wisconsin’s EITC framework to provide a larger credit amount for filers with fewer than three qualifying children.
  • Income thresholds and phase‑in/phase‑out structure: While the specific phase-in and phase-out rates are not detailed in the summary materials provided, typical EITC changes involve adjusting the credit level at various income brackets and ensuring gradual reductions as income rises to avoid abrupt benefits cliffs.
  • Targeted beneficiaries: Primary beneficiaries would be:
    • Households with one or two qualifying children (i.e., fewer than three).
    • Likely low- to moderate-income Wisconsin residents who qualify for the federal EITC or meet state eligibility criteria.
  • Interplay with existing credits: The bill would modify or supplement the current state EITC, potentially maintaining alignment with federal definitions of earned income and qualifying children, but with higher thresholds or credit amounts for small families.

Note: The publicly available materials emphasize the intent to expand the EITC for smaller families; exact numeric changes (percentages, dollar amounts, income limits) are not specified in the provided documents. The fiscal note would typically accompany such a bill to quantify revenue impact and budget implications.

3) Affected Parties and Impacts

  • Primary affected group: Wisconsin residents with one or two qualifying children who file state taxes and qualify for the EITC under current or proposed rules.
  • Broader effects:
    • Household disposable income increases for eligible families, potentially reducing poverty and increasing spending in the economy.
    • Possible interactions with other public programs (e.g., eligibility thresholds that consider EITC as income for other benefits) to be examined in future amendments or fiscal analyses.
    • Employers and the labor market may see indirect effects if higher after‑tax income influences work incentives and family financial stability.

4) Procedural and Timeline Aspects

  • Introduction and sponsorship:
    • Introduced February 12, 2026.
    • Initial cosponsors include multiple senators and representatives (listed in the sponsor block).
  • Committee action:
    • Referred to the Senate Committee on Agriculture and Revenue (and potentially related House committees given cross-chamber sponsorship).
    • A fiscal estimate was received on March 10, 2026, indicating formal budgetary impact analysis underway.
  • Status updates:
    • Coauthors added in March 2026 (Senators Pfaff, Keyeski, and others as listed; representatives as cosponsors).
    • Action history notes a failed passage pursuant to Senate Joint Resolution 1 on March 23, 2026, which may reflect a procedural outcome (e.g., attachment to budget process, or procedural motion not to advance at that time). This does not necessarily indicate the bill’s ultimate disposition but reflects a specific legislative maneuver or outcome on that date.
  • Next steps for readers: Monitor committee votes, fiscal notes, and potential amendments. If advanced, the bill would move to the full chamber for passage and cross-reference with the House, followed by potential conference committee considerations if there are differences between chambers.

5) Practical Considerations for Stakeholders

  • Stakeholders should review the forthcoming fiscal impact statement for anticipated revenue implications and cost to the state, as well as any proposed changes to eligibility rules.
  • Employers and taxpayers in Wisconsin–particularly families with one or two children–may want to assess how changes would affect annual tax liability and take-home pay.
  • Advocacy groups focused on family income supports (e.g., Kids Forward) appear to be monitoring and advocating for enhanced EITC provisions.

If you’d like, I can integrate actual dollar figures and proposed income thresholds from the official bill text or fiscal notes once they are available.

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

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