MADISON, WI – Today, Representative William Penterman (R-Hustisford) proudly supported the passage of today’s $1.8 billion surplus package. Legislative Republicans and the Governor reached a bipartisan agreement on a Special Session bill that returns $1.8 billion of Wisconsin’s projected $2.4 billion budget surplus back to taxpayers through direct rebate payments, income tax relief, and property tax reductions.
“This agreement delivers meaningful relief for Wisconsin workers,” said Representative Penterman. “We are returning surplus dollars to taxpayers, rewarding hard work by eliminating taxes on tips and overtime wages, and investing in schools to help stabilize property taxes.”
The legislation includes three major components:
– Direct Surplus Payments: Full-time Wisconsin residents who filed a 2024 state income tax return will receive up to a $300 rebate, while married couples filing jointly receive up to $600. Roughly $862 million will be returned directly to taxpayers.
– Property Tax Relief: The plan provides more than $300 million in property tax relief to school districts statewide through the school funding formula. An additional $50 million in relief will come through reduced technical college debt levies.
– Income Tax Relief: The bill eliminates the state income tax on tipped income and overtime wages, providing more than $230 million in permanent tax relief for Wisconsin workers. Unlike the federal provisions, Wisconsin’s tax relief will not expire in 2028.
The agreement also builds upon historic investments in special education. Building on increases included in the 2025–27 Biennial Budget, the proposal raises reimbursement rates to 50% by 2026–27, doubling the rate since 2019 and providing additional support for students in choice, charter, special needs scholarship, and open enrollment programs.
