Joint Finance Committee Approves Several New or Expanded Tax Breaks
- An individual income tax credit for health savings accounts. This change would decrease revenue by $48 million in the 2011-13 biennium. This proposal passed.
- A two-year income or corporate income tax credit for businesses that move to Wisconsin. This change would decrease revenue by $560,000 over the biennium. This proposal passed with an amendment that included technical changes suggested by the Department of Revenue.
- An additional $25 million in economic development credits. Because businesses have not yet used up all of the available development credits, this proposal would not have a fiscal effect until the 2013-15 biennium. This proposal passed.
- A tax cut for small businesses, which would reduce revenue by $81.6 million in the 2011-13 biennium. The WisPolitics Budget Blog reports that the committee is expected to change the bill to provide a business tax credit for each job created. The Joint Finance Committee delayed the vote on this bill until Thursday, which will provide more time to develop and debate an alternative to the original proposal.
The four bills would add about $130 million to the deficit that lawmakers will need to close in the 2011-13 biennial budget bill. However, that total will probably change once we learn the fiscal impact of the revised version of the new tax credit for small businesses.
The WisPolitics Budget Blog has information on Joint Finance Committee actions, and more.