Relating to: refundability of the additional child and dependent care tax credit and making an appropriation. (FE)

SB 1074 makes Wisconsin's additional child and dependent care tax credit fully refundable starting in 2026. For tax years beginning after December 31, 2025, taxpayers can claim the full credit amount against their state taxes, and if the credit exceeds their tax liability, the state will pay the difference directly. This affects Wisconsin residents who qualify for the federal child and dependent care tax credit and claim it on their state return, primarily low-to-moderate income families with childcare expenses. The bill creates a new state appropriation to fund these payments, ensuring the credit is refundable without interest on unused amounts.