WI SB36

Creates a Wisconsin state income tax subtraction for qualified tips, allowing taxpayers to deduct tip income from their state taxable income for tax years beginning after December 31, 2024, and before January 1, 2029

Aligns with federal tax treatment by referencing Section 224 of the Internal Revenue Code, using the same definition of "qualified tips" established at the federal level

Limits the subtraction for part-year residents and nonresidents to a prorated amount based on the ratio of tips taxable by Wisconsin to total qualified tips

Amends the definition of "income" for Wisconsin's homestead credit to include any amount subtracted under this new tip exemption, preventing a double benefit for homestead credit claimants

Applies to homestead credit claims filed for taxable years beginning after December 31, 2024