WI AB1118

Converts Wisconsin's additional child and dependent care tax credit from nonrefundable to refundable beginning with tax year 2026

Claimants whose credit exceeds their state income tax liability will receive the excess amount as a cash refund payment

Credit amount equals 100% of the federal child and dependent care tax credit using Wisconsin's higher employment-related expense limitations

Creates a sum-sufficient appropriation to fund the refund payments, administered through the Department of Revenue and Department of Administration

No interest will be paid on refund amounts issued under this credit