Wisconsin legislation · 2025-2026 Regular Session
Wisconsin SB36: An Act to repeal 71.63 (6) (n) 1. and 71.63 (6) (n) 2.; to renumber and amend 71.63 (6) (n) (intro.); to amend 71.05 (6) (b) 19. cm., 71.05 (6) (b) 19. dm., 71.05 (6) (b) 28. e., 71.05 (6) (b) 28. f., 71.05 (6) (b) 32. b., 71.05 (6) (b) 32. c., 71.05 (6) (b) 33. b., 71.05 (6) (b) 33. c., 71.05 (6) (b) 35. c., 71.05 (6) (b) 35. d., 71.05 (6) (b) 38. c., 71.05 (6) (b) 38. d., 71.05 (6) (b) 42. c., 71.05 (6) (b) 42. d. and 71.05 (6) (b) 43. f.; to create 71.05 (1) (j) of the statutes; Relating to: an income tax exemption for cash tips paid to an employee. (FE)
Status: Vetoed, May 13, 2026
What the bill says
An Act to amend 71.52 (6); to create 71.05 (6) (b) 57. of the statutes; relating to: an income tax subtraction for qualified tips.
From the enrolled text, February 25, 2026:
An Act to amend 71.52 (6); to create 71.05 (6) (b) 57. of the statutes; relating to: an income tax subtraction for qualified tips. The people of the state of Wisconsin, represented in senate and assembly, do enact as follows: SB36,1Section 1. 71.05 (6) (b) 57. of the statutes is created to read: 71.05 (6) (b) 57. a. Subject to the limitation under subd. 57. b., for taxable years beginning after December 31, 2024, and before January 1, 2029, 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. b. For an individual who is a part-year resident or nonresident of this state, the subtraction under this subdivision for the taxable year may not exceed the amount that is calculated by multiplying the amount that the individual may deduct under section 224 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 tips that are taxable by this state and the denominator of which is the individual's total qualified tips. c. In this subdivision, "qualified tips" has the meaning given in section 224 …
Sponsors
- Jacque, André (R, SD-001) · primary sponsor