AB 1 — Relating to: an income tax subtraction for qualified tips and for qualified overtime compensation; state aid for school districts; surplus refund payments; increasing funding for special education and school age parents programs; state aid to technical colleges and the technical college district revenue limit; and making an appropriation. (FE)

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EK/KP/KS/FK/AG:all ASSEMBLY BILL 1 Under current law, with certain exceptions, a technical college district board may not increase its revenue each school year by more than the greater of 1) 0 percent or 2) the percentage change in the district’s equalized value due to new construction, less improvements removed, between the previous year and the current year.

The amount of this limit is called the “valuation factor.” A district board’s revenue is the sum of its tax levy for operations and the amount of aid it receives for property tax relief and tax-exempt personal property.

The bill increases the amount of state aid annually distributed to technical college district boards by $50,000,000, which also results in an equivalent reduction in the amount of the property tax levy authorized for technical college district boards.

Income tax subtraction for qualified tips The bill creates an income tax subtraction for qualified tips that a claimant may deduct on the claimant’s federal income tax return.

Under current federal law, a person may deduct certain qualified tips from the person’s income for federal income tax purposes.

Federal law generally defines “qualified tips” as cash or charged tips received by an individual in an occupation that traditionally and customarily receives tips, as determined by the secretary of the U.S.

Department of the Treasury.

Under current federal law, the federal deduction for qualified tips sunsets after tax year 2028.

The bill contains no sunset for the subtraction for qualified tips.

Income tax subtraction for qualified overtime compensation The bill creates an income tax subtraction for qualified overtime compensation that a claimant may deduct on the claimant’s federal income tax return.

Under current federal law, a person may deduct certain qualified overtime compensation from the person’s income for federal income tax purposes.

Federal law generally defines “qualified overtime compensation” as overtime compensation paid to a person under the federal Fair Labor Standards Act that is in excess of the person’s regular rate of pay.

Under current federal law, the federal deduction for qualified overtime compensation sunsets after tax year 2028.

The bill contains no sunset for the subtraction for qualified overtime compensation.

Surplus refund payments The bill provides a surplus refund payment to taxpayers who filed a Wisconsin individual income tax return for tax year 2024 and who owed Wisconsin individual income tax for that year.

The payment is $600 for married persons filing a joint return and $300 for all other individuals.

The payment may not exceed the amount of the taxpayer’s 2024 net income tax liability.

No payment may be paid to any of the following:

1) taxpayers who were a dependent of another taxpayer in tax year 2024;

2) certain taxpayers who are deceased;

or 3) part-year residents or nonresidents whose Wisconsin income in tax year 2024 was less than 90 percent of total income.

Under the bill, the Department of Revenue must identify taxpayers who are eligible to receive the payments and the Department of Administration must issue the payments without taxpayers having to take any further action.

The bill - 2026 Legislature - 4 - LRB-6707/1 May 2026 Spec.

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EK/KP/KS/FK/AG:all ASSEMBLY BILL 1 SECTION 1 requires that DOA issue the payments no later than September 15, 2026.

A taxpayer who does not receive the amount of payment for which he or she is eligible may file a claim by using a portal on DOR’s website.

No claims may be filed after December 15, 2026.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

S ECTION 1.

20.835 (2) (cd) of the statutes is created to read:

20.835 (2) (cd) Surplus refund payments.

A sum sufficient to make the payments under 2025 Wisconsin Act ....

(this act), section 9137 (1).

S ECTION 2.

38.16 (4) (c) of the statutes is created to read:

38.16 (4) (c) For the payment in 2027 and annually thereafter, $50,000,000 in addition to the amount under par.

(b).

S ECTION 3.

71.05 (6) (b) 60.

of the statutes is created to read:

71.05 (6) (b) 60.

a.

Subject to the limitation under subd.

60.

b., for taxable years beginning after December 31, 2025, the amount that the claimant may deduct under section 224 of the Internal Revenue Code in effect for federal purposes on the claimant’s federal income tax return for the taxable year to which the claim under this subdivision relates.

For an individual who is a part-year resident or nonresident of this state, the statutessubtraction under this subdivision for the taxable year may not exceed the amount that is amendedcalculated toby read:multiplying the amount that the individual may deduct under section 224 of the Internal Revenue Code in effect for federal purposes - 2026 Legislature - 5 - LRB-6707/1 May 2026 Spec.

71.07 (6e) (a) 2.

b.An individual who had served on active duty under honorable conditions in the U.S.

armed forces or in forces incorporated as part of the U.S.

armed forces;

who was a resident of this state at the time of entry into that active service or who had been a resident of this state for any consecutive 5-year - 2026 Legislature - 3 - LRBa1247/1 May 2026 Spec.

KP&MJW:skwEK/KP/KS/FK/AG:all periodASSEMBLY afterBILL entry1 intoSECTION 3 on the individual’s federal income tax return by a fraction the numerator of which is the individual’s qualified tips that activeare dutytaxable service;by this state and the denominator of which is the individual’s total qualified tips.

whoc. was a resident of this state at the time of his or her death;

andNotwithstanding whosection had224 either(h) aof service-connectedthe disabilityInternal ratingRevenue ofCode, 100for attaxable leastyears 80beginning percentafter December 31, 2028, a claimant may claim the subtraction under 38this USCsubdivision 1114as orif 1134section or224 a(h) 100of percentthe disabilityInternal ratingRevenue basedCode did not prohibit the claimant from deducting an amount on individualthe unemployability.claimant’s federal income tax return for taxable years beginning after December 31, 2028.

S ECTION 4m.

71.07 (6e) (a) 3.

In this subdivision, “qualified tips” has the meaning given in section 224 (d) of the statutesInternal isRevenue amendedCode toin read:effect for federal purposes.

71.07S (6e)ECTION (a)4. 3.

d.71.05 (6) (b) 61.

Has either a service-connected disability rating of 100 at least 80 percent under 38 USC 1114 or 1134 or a 100 percent disability rating based on individual unemployability.

S ECTION 4s.

71.07 (6e) (c) 4.

71.0771.05 (6e)(6) (c)(b) 4.61.

Ifa. a claimant’s service-connected disability rating is less than 100 percent, the amount of the credit claimed under this subsection may not exceed the amount determined by multiplying the claimant’s property taxes by a percentage that equals the eligible veteran’s service-connected disability rating.”.

5.Subject to subd.

Page61. 9, line 22:

afterb. that line insert:

“SECTIONand 10m.c., for taxable years beginning after December 31, 2025, the amount that the claimant may deduct under section 225 of the Internal Revenue Code in effect for federal purposes on the claimant’s federal income tax return for the taxable year to which the claim under this subdivision relates.

323.32b. of the statutes is created to read:

323.32For Disasteran assistanceindividual who is a part-year resident or nonresident of this state, the subtraction under this subdivision for individualsthe taxable year may not exceed the amount that is calculated by multiplying the amount that the individual may deduct under section 225 of the Internal Revenue Code in effect for federal purposes on the individual’s federal income tax return by a fraction the numerator of which is the individual’s qualified overtime compensation that is taxable by this state and businessesthe grantdenominator programs.of which is the individual’s total qualified overtime compensation.

(1)c. D EFINITION.

InNotwithstanding thissection section:225 (g) of the Internal Revenue Code, for taxable - 2026 Legislature - 6 - LRB-6707/1 May 2026 Spec.

(a) “Business” means an organization conducting business in this state.

“Business” includes a credit union, as defined in s.

186.01 (2).

“Business” does not include a nonstock corporation organized under subchs.

I to XIV of ch.

181 or a foreign nonstock corporation authorized to transact business in this state under subch.

XV of ch.

181, except for a foreign credit union.

(b) “Household” has the meaning given in s.

287.17 (1) (h).

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KP&MJW:skwEK/KP/KS/FK/AG:all (2)ASSEMBLY CBILL REATION1 ANDSECTION ADMINISTRATION4 .years beginning after December 31, 2028, a claimant may claim the subtraction under this subdivision as if section 225 (g) of the Internal Revenue Code did not prohibit the claimant from deducting an amount on the claimant’s federal income tax return for taxable years beginning after December 31, 2028.

(a)d. The department of military affairs shall create a program to award grants to individuals who are adversely affected by a disaster-related state of emergency declared by the governor under s.

323.10In onthis orsubdivision, after“qualified Januaryovertime 1,compensation” 2025,has for the purposemeaning ofgiven meetingin section 225 (c) of the individuals’Internal disaster-relatedRevenue expenses.Code in effect for federal purposes.

(b)S TheECTION department5. of military affairs shall create a program to award grants to businesses that are adversely affected by a disaster-related state of emergency declared by the governor under s.

323.1071.52 on(6) orof after January 1, 2025, for the purposestatutes ofis meetingamended theto businesses’read: disaster-related expenses.

(3)71.52 G(6) RANTS“Income” TOmeans INDIVIDUALSthe .sum of Wisconsin adjusted gross income and the following amounts, to the extent not included in Wisconsin adjusted gross income:

(a)maintenance Grantspayments awarded.(except foster care maintenance and supplementary payments excludable under section 131 of the internal revenue code), support money, cash public assistance (not including credit granted under this subchapter and amounts under s.

46.27, 2017 stats.), cash benefits paid by counties under s.

59.53 (21), the gross amount of any pension or annuity (including railroad retirement benefits, all payments received under the federal social security act and veterans disability pensions), nontaxable interest received from the federal government or any of its instrumentalities, nontaxable interest received on state or municipal bonds, worker’s compensation, unemployment insurance, the gross amount of “loss of time” insurance, compensation and other cash benefits received from the United States for past or present service in the armed forces, scholarship and fellowship gifts or income, capital gains, gain on the sale of a personal residence excluded under section 121 of the internal revenue code, dividends, income of a nonresident or part-year resident who is married to a full-year resident, housing allowances provided to members of the clergy, the amount by which a resident - 2026 Legislature - 7 - LRB-6707/1 May 2026 Spec.

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EK/KP/KS/FK/AG:all ASSEMBLY BILL 1 SECTION 5 manager’s rent is reduced, nontaxable income of an American Indian, any amount subtracted under s.

71.05 (6) (b) 60.

or 61., nontaxable income from sources outside this state and nontaxable deferred compensation.

Intangible drilling costs, depletion allowances and depreciation, including first-year depreciation allowances under section 179 of the internal revenue code, amortization, contributions to individual retirement accounts under section 219 of the internal revenue code, contributions to Keogh plans, net operating loss carry-backs and carry-forwards, capital loss carry-forwards, and disqualified losses deducted in determining Wisconsin adjusted gross income shall be added to “income”.

“Income” does not include gifts from natural persons, cash reimbursement payments made under title XX of the federal social security act, surplus food or other relief in kind supplied by a governmental agency, the gain on the sale of a personal residence deferred under section 1034 of the internal revenue code or nonrecognized gain from involuntary conversions under section 1033 of the internal revenue code.

Amounts not included in adjusted gross income but added to “income” under this subsection in a previous year and repaid may be subtracted from income for the year during which they are repaid.

Scholarship and fellowship gifts or income that are included in Wisconsin adjusted gross income and that were added to household income for purposes of determining the credit under this subchapter in a previous year may be subtracted from income for the current year in determining the credit under this subchapter.

A marital property agreement or unilateral statement under ch.

766 has no effect in computing “income” for a person whose homestead is not the same as the homestead of that person’s spouse.

S ECTION 6.

115.437 (1) of the statutes is amended to read:

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EK/KP/KS/FK/AG:all ASSEMBLY BILL 1 SECTION 6 115.437 (1) In this section, “number of pupils enrolled” has the meaning given in s.

121.90 (1) (intro.) and includes 40 percent of the summer enrollment.

“Number of pupils enrolled” does not include pupils described in the exception under s.

121.90 (1) (f) (g).

S ECTION 7.

121.07 (7) (b) of the statutes is amended to read:

121.07 (7) (b) The “secondary guaranteed valuation per member” is an amount, rounded to the next lower dollar, that, after subtraction of payments under ss.

121.09, 121.105 (5), and 121.85 (6) (b) 2.

and 3.

and (c), fully distributes an amount equal to the amount remaining in the appropriation under s.

20.255 (2) (ac).

S ECTION 8.

121.105 (title) of the statutes is amended to read:

121.105 (title) Special adjustment aids and per pupil state aid.

S ECTION 9.

121.105 (1) of the statutes is amended to read:

121.105 (1) In this section, “state aid” means the sum of the payments provided to a school district under this section subs.

(2) to (4) and ss.

121.08, 121.85, and 121.86.

S ECTION 10.

121.105 (5) of the statutes is created to read:

121.105 (5) (a) In this subsection, “number of pupils enrolled” has the meaning given in s.

121.90 (1) (intro.) and includes all of the following:

SubjectForty topercent subd.of the summer enrollment.

2., from the appropriation under s.

20.465 (3) (bf), the department of military affairs shall award grants to individuals eligible under par.

(c) who are adversely affected by a disaster-related state of emergency declared by the governor under s.

323.10 on or after January 1, 2025, for the purpose of meeting the individuals’ disaster-related expenses incurred because of damage to the individual’s primary residence.

AnPupils individualdescribed eligiblein the exception under par.s.

(c)121.90 may(1) not(g). receive a grant under subd.

1.(b) Beginning in the 2026-27 school year, from the appropriation under s.

if20.255 a(2) business(ac), that operates at the individual’sdepartment residenceshall orannually contiguouslydistribute toa thetotal individual’sof residence$302,500,000 hasto beenschool awardeddistricts a grant under sub.par.

(4)(c). (a) for repairs to the same residence.

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The department of military affairs is not obligated to award a grant under subd.

1.

if it does not have sufficient funds available to award the grant.

(b) Eligible expenses.

Expenses eligible to be met by a grant under this subsection shall be limited to, as determined by the department of military affairs, the expenses of fixing or replacing personal property damaged by the disaster, - 2026 Legislature - 5 - LRBa1247/1 May 2026 Spec.

KP&MJW:skwEK/KP/KS/FK/AG:all homeASSEMBLY repairBILL that1 isS necessaryECTION due10 to(c) damageAnnually, from the disasterdepartment conductedshall bypay ato contractoreach thatschool hasdistrict obtainedthe afollowing certificateamounts: under s.

101.654 (1) (a), and temporary housing assistance.

(c) Individual eligibility.

Except as provided in par.

(d), an individual is eligible for a grant under par.

(a) if all of the following apply:

TheAn individualamount appliesequal forto the grantaverage inof a manner as determined by the departmentnumber of militarypupils affairsenrolled andin within 90 days after a determination is made by the federalschool emergencydistrict managementin agency to not provide aid to the individualprevious for3 theschool disaster-relatedyears expenses,multiplied if applicable, within 90 days after a disaster-related state of emergency is declared by thean governoramount underdetermined s.as follows:

323.10a. if the disaster-related damages do not meet the minimum qualifications for individual federal aid, or within 90 days after the effective date of this subdivision ....

[LRBCalculate inserts25 date],percent whicheverof isthe later.total amount to be distributed under par.

2.(b) for the current school year.

Theb. individual provides to the department of military affairs a receipt or other documentation, as determined by the department of military affairs, for any disaster-related eligible expenses for which the individual seeks a grant.

3.Divide the amount calculated under subd.

The individual signs and provides to the department of military affairs a signed affidavit committing to return to the department of military affairs any part of the grant that is or becomes duplicated by the individual’s receipt of insurance money or other source of disaster-related assistance that is not a loan awarded directly by the federal government.

4.

The individual is lawfully present in the United States.

(d) Grant limits.

Thea. department of military affairs may not award more - 2026 Legislature - 6 - LRBa1247/1 May 2026 Spec.

Sess.by the average number of pupils enrolled statewide in the previous 3 school years.

KP&MJW:skw than $25,000 in grants to a single household in relation to a single disaster-related state of emergency declared by the governor under s.

323.10.

NoAn grantsamount mayequal beto awardedthe underaverage thisof subsectionthe tonumber individualsof whopupils areenrolled adverselyin affectedthe byschool adistrict disaster-relatedin statethe ofcurrent emergencyand declared2 preceding school years multiplied by thean governoramount underdetermined s.as follows:

323.10 if all of the following apply:

TheCalculate president75 percent of the Unitedtotal Statesamount has declared a major disaster to existbe indistributed this state, and the major disaster is the same disaster that forms the basis of the disaster-related state of emergency declared by the governor under s.par.

323.10.(b) for the current school year.

FederalDivide aid is made available to individuals who are adversely affected by the majoramount disastercalculated declared by the president of the United States in a manner similar to the grant program under thissubd. subsection.

(4) GRANTS TO BUSINESSES .

(a) Grants awarded.

1.

Subject to subd.

2, from the appropriation under s.

20.465 (3) (bg), the department of military affairs shall award grants to businesses eligible under par.

(c) that are adversely affected by a disaster-related state of emergency declared by the governor under s.

323.10 on or after January 1, 2025, for the purpose of meeting the businesses’ disaster-related expenses for a single location in this state.

Ifa. a business eligible under par.

(c)by hasthe multipleaverage locationsnumber inof thispupils stateenrolled thatstatewide mayin qualifythe forcurrent aand grant2 underpreceding subd.school years.

1.,(d) the1. business may receive a grant for each location.

3.The department shall make the payment under par.

A(c) business1. eligible under par.

(c)on thatthe operates3rd withinMonday anof individual’sSeptember. residence or contiguously to an individual’s residence may not receive a grant under subd.

1.

if the individual has been awarded a grant under sub.

(3) (a) for repairs to the same residence.

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KP&MJW:skw 4.

The department of military affairs is not obligated to award a grant under subd.

1.

if it does not have sufficient funds available to award the grant.

(b) Eligible expenses.

Expenses eligible to be met by a grant under this subsection shall be limited to, as determined by the department of military affairs, the expenses of fixing or replacing a business’s property damaged by the disaster, repair to the business necessary due to damage from the disaster, payroll assistance, working capital, and other normal business operating expenses.

(c) Business eligibility.

Except as provided in par.

(d), a business is eligible for a grant under par.

(a) if all of the following apply:

1.

The business operates in this state.

The businessdepartment isshall notpay liablethe foramount anyunder delinquentpar. federal, state, or local taxes.

3.(c) 2.

The business has been damaged as a result of the business’s operation in a3 portionequal ofinstallments. the state included in the governor’s disaster-related state of emergency declaration made under s.

323.10.The department shall pay the 1st installment on the 1st Monday of December, the 2nd installment on the 4th Monday of March, and the 3rd installment on the 3rd Monday of June.

4.S ECTION 9137.

TheNonstatutory businessprovisions; applies for the grant in a manner as determined by the department of military affairs and within 90 days after a disaster-related state of emergency declared by the governor under s.

323.10Revenue. or within 90 days after the effective date of this subdivision ....

[LRB(1) insertsSURPLUS date],REFUND whicheverPAYMENTS is. later.

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The business provides to the department of military affairs a receipt or other documentation, as determined by the department of military affairs, for any disaster-related eligible expenses for which the business seeks a grant and for which the business has incurred as a result of the disaster underlying the governor’s state of emergency declaration made under s.

323.10.

6.

The business provides to the department of military affairs a signed - 2026 Legislature - 8 - LRBa1247/1 May 2026 Spec.

KP&MJW:skwEK/KP/KS/FK/AG:all affidavitASSEMBLY committingBILL to1 returnS ECTION 9137 (a) Subject to the departmentlimitations ofand militaryconditions affairsunder anythis partsubsection, ofa thetaxpayer grantwho that is oran becomesindividual duplicatedand bywho filed a Wisconsin individual income tax return for the business’staxpayer’s receipttaxable ofyear insurancebeginning moneyafter orDecember other31, source2023, ofand disaster-relatedbefore assistanceJanuary 1, 2025, is eligible to receive a payment that is notequal to $600 for married persons who filed a loanjoint awardedreturn directlyfor bythat thetaxable federalyear government.and $300 for all other individuals.

(d)(b) GrantThe limits.payment under par.

1.(a) may not exceed the taxpayer’s net income tax liability under ch.

The71 departmentfor ofthe militarytaxpayer’s affairstaxable mayyear notbeginning awardafter moreDecember than31, $50,0002023, inand grantsbefore toJanuary a1, single2025. business in relation to a single disaster-related state of emergency declared by the governor under s.

323.10.(c) No payment under par.

2.(a) may be paid to a taxpayer who is a dependent, as defined in 26 USC 152, of another taxpayer for the taxable year beginning after December 31, 2023, and before January 1, 2025.

No(d) grantsNotwithstanding maypar. be awarded under this subsection to businesses that are adversely affected by a disaster-related state of emergency declared by the governor under s.

323.10(c), ifin allthe case of a married couple who filed a joint return in the followingtaxable apply:year beginning after December 31, 2023, and before January 1, 2025, if a spouse is claimed as a dependent on another taxpayer’s return for that taxable year, the dollar amount under par.

a.(a) is reduced by $300 for each spouse claimed as a dependent.

The(e) presidentNo ofpayment the United States has declared a major disaster to exist in this state, and the major disaster is the same disaster that forms the basis of the disaster-related state of emergency declared by the governor under s.par.

323.10.(a) may be paid to the estate of a deceased taxpayer.

b.(f) Notwithstanding par.

Federal(e), aidin isthe madecase availableof toa themarried businessescouple thatwho arefiled adverselya affectedjoint byreturn in the majortaxable disasteryear declaredbeginning byafter theDecember president31, of2023, theand Unitedbefore StatesJanuary in1, a2025, mannerif similarone tospouse is deceased, the grantsurviving programspouse undershall thisreceive subsection.the full amount of the payment under par.

(5)(a) Dto EPARTMENTwhich OFthe MILITARYmarried AFFAIRScouple DUTIESis ANDeligible POWERSto .receive under this subsection.

(a)(g) GrantIn processing.the case of a taxpayer who filed an individual income tax return for the taxpayer’s taxable year beginning after December 31, 2023, and before January 1, - 2026 Legislature - 11 - LRB-6707/1 May 2026 Spec.

Subject to subs.

(3) (d) and (4) (d), the department of military affairs shall process an application for a grant under sub.

(3) (a) 1.

or (4) (a) 1.

and award the grant to those eligible under sub.

(3) (c) or (4) (c) for the individual’s or business’s eligible disaster-related expenses under sub.

(3) (b) or (4) (b), as applicable, within 30 days after the individual’s or the business’s application for the grant or within 30 days after the completion of any necessary inspections, whichever is later.

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KP&MJW:skwEK/KP/KS/FK/AG:all (b)ASSEMBLY Administration.BILL 1 S ECTION 9137 2025, as a part-year resident or nonresident of this state, no payment under par.

The(a) departmentmay ofbe militarypaid affairsto maythe usetaxpayer upunless toat 6least 90 percent of anythe amounttaxpayer’s appropriatedtotal income for administrativethat costs,taxable includingyear fundingis thetaxable positionsby createdthis understate 2025as Wisconsinprovided Actin ....s.

(this71.04. act), section 9131 (1) and (2), and for information technology development, data privacy, and security under this section.

(c)(h) TransferThe department of funds.revenue shall identify the taxpayers who are eligible to receive a payment under par.

The(a) departmentand ofthe militaryamount affairs may use amounts appropriated for one grant program under this section for another grant program under this section upon approval of apayment requestdue submittedeach totaxpayer. the joint committee on finance.

If,The withindepartment 14of daysrevenue aftershall thecertify date of the request,allowable theamount cochairpersons of the committeepayment doto not notify the department of militaryadministration affairsfor thatpayment theby committeecheck, hasshare scheduleddraft, aor meetingother todraft reviewdrawn thefrom request, the requestappropriation isaccount consideredunder approved.s.

If20.835 the(2) cochairpersons(cd). notify the department of military affairs within 14 days after the date of the department’s request that the committee has scheduled a meeting to review the request, the moneys may not be used as requested unless authorized by approval of the committee.

(d)The Additionaldepartment fundingof andadministration positions.shall issue the payments under this paragraph no later than September 15, 2026.

1.(i) The department of revenue shall establish procedures for taxpayers who do not receive a payment or who receive less than the full amount for which they are eligible under this subsection to file a claim for payment and shall establish a portal on its website for filing claims.

InNo anyclaim fiscalfor yearpayment inunder whichthis theparagraph departmentmay ofbe militaryfiled affairsafter determinesDecember that15, it2026. does not have sufficient funds to award as many grants as eligible individuals or businesses, the department of military affairs may request under s.

13.101(j) Section 71.80 (3) thatand the(3m), jointas committeeit onapplies financeto supplementincome thetax appropriationrefunds, accountapplies to a payment under s.this subsection.

20.465The (3)department (bf)of orrevenue (bg)may withenforce additionalthe fundspayment forunder thethis purposesubsection ofand makingmay grants.take any action, conduct any proceeding, and proceed as it is authorized with respect to taxes under ch.

2.71.

InThe anyincome fiscaltax yearprovisions in whichch. the department of military affairs determines that it does not have sufficient position authority to administer this section, the department of military affairs may request under s.

13.10171 (2)relating thatto theassessments, jointrefunds, -appeals, 2026collection, Legislatureinterest, -and 10penalties -apply LRBa1247/1to Maythe 2026payments Spec.under this subsection.

SECTION 9234.

Fiscal changes;

Public Instruction.

(1) PECIAL EDUCATION AND SCHOOL AGE PARENTS PROGRAM .

In the schedule under s.

20.005 (3) for the appropriation to the department of public instruction - 2026 Legislature - 12 - LRB-6707/1 May 2026 Spec.

KP&MJW:skwEK/KP/KS/FK/AG:all committeeASSEMBLY onBILL finance1 create,S onECTION a9234 temporaryunder basis, a portion of a position, as defined in s.

230.0320.255 (11),(2) to(b), administerthe thisdollar section.amount for fiscal year 2025-26 is increased by $85,000,000 and the dollar amount for fiscal year 2026-27 is increased by $230,000,000.

SECTION(2) 9131.PER PUPIL STATE AID .

NonstatutoryIn provisions;the schedule under s.

Military20.005 Affairs.(3) for the appropriation to the department of public instruction under s.

(1)20.255 PROJECT(2) POSITION(ac), AUTHORITYthe .dollar amount for fiscal year 2026-27 is increased by $302,500,000 for per pupil aid under s.

The121.105 authorized(5). FTE positions for the department of military affairs are increased by 2.0 project positions to establish the grant program under s.

323.32.SECTION 9337.

TheInitial projectapplicability; positions authorized under this subsection shall terminate 2 years from the effective date of this subsection.

(2)Revenue. FTE POSITION AUTHORITY .

The(1) authorizedDEFINITION FTEOF positionsINCOME forFOR theHOMESTEAD departmentCREDIT of. military affairs are increased by 1.0 position to administer the grant programs under s.

323.32.”.

6.

Page 12, line 10:

after that line insert:

“(2) ELIGIBILITY FOR THE VETERANS AND SURVIVING SPOUSES PROPERTY TAX CREDIT.

71.0771.52 (6e)(6) (a)first 2.applies to claims filed for taxable years beginning after December 31, 2025.

b.

and 3.

d.

and (c) 4.

first applies to taxable years beginning after December 31, 2025.

SECTION 9431.

Effective dates;

Military Affairs.

This act takes effect on the day after publication, except as follows:

(1) DISASTER ASSISTANCE FOR INDIVIDUALS AND BUSINESSES GRANT PROGRAMS.

The treatment of ss.

13.101 (18) and 323.32 (1) to (4) and (5) (a), (c), and (d) take effect on the 30th day after publication.”.