MADISON, Wis. (AP) — The Legislature's Republican-controlled finance committee has approved a bill that would cut state taxes by $540 million by the middle of 2023, largely by making pandemic stimulus loans to businesses tax-deductible.
The committee approved the bill during a meeting Wednesday. Supporters said the measure is designed to bring state tax code into alignment with federal code. The bill would make loans through the federal Paycheck Protection Program tax-deductible, amounting to a $419 million loss for the state over the next three fiscal years. The loans are tax-deductible under federal code but not under the state's rules.