Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB32 Compare Versions

Only one version of the bill is available at this time.

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4	4	2023 ASSEMBLY BILL 32
5	5	February 10, 2023 - Introduced by Representatives TITTL, BEHNKE, EDMING, GREEN,
6	6	MURSAU, STEFFEN and VANDERMEER, cosponsored by Senator JAMES. Referred
7	7	to Committee on Ways and Means.
8	8	*AUTHORS SUBJECT TO CHANGE*
9	9	AN ACT to create 71.05 (6) (b) 57., 71.53 (2) (g) and 71.77 (9) of the statutes;
10	10	relating to: creating an individual income tax deduction for certain income
11	11	earned by an individual from the practice of psychiatry or from providing
12	12	psychiatric or mental health services.
13	13	Analysis by the Legislative Reference Bureau
14	14	This bill creates an individual income tax subtract modification, or deduction,
15	15	for up to $100,000 or $200,000 of income earned in this state by a psychiatrist or by
16	16	a psychiatric or mental health nurse practitioner, in the taxable year to which the
17	17	claim relates, from the practice of psychiatry or from providing psychiatric or mental
18	18	health services. The maximum $200,000 deduction may be claimed by a psychiatrist
19	19	or psychiatric or mental health nurse practitioner who practices or performs services
20	20	in a medically underserved area, as defined under federal law, and the maximum
21	21	$100,000 deduction may be claimed by a psychiatrist or psychiatric or mental health
22	22	nurse practitioner who does not practice or perform services in such an area. The
23	23	deduction may not be claimed for more than five years, and must be claimed during
24	24	the five-year period that begins once the claimant first claims the credit. The
25	25	deduction must be claimed initially within the first two years that a psychiatrist or
26	26	psychiatric or mental health nurse practitioner begins to practice in this state, or
27	27	within the first two years that a psychiatrist or psychiatric or mental health nurse
28	28	practitioner returns to this state after practicing in another state. If an individual
29	29	begins to claim the deduction and is then ineligible to claim the deduction in any year
30	30	that he or she is a full-year resident of this state, the individual may again claim the
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36	36	ASSEMBLY BILL 32
37	37	deduction in a future year if eligible to do so. If an individual begins to claim the
38	38	deduction but is unable to claim it for five consecutive years because he or she leaves
39	39	the state, the individual must add to his or her tax that is due for the year in which
40	40	he or she leaves the state the total gross tax that would have been due if the
41	41	subtraction was not claimed for any year minus the amount of gross tax actually due
42	42	for those years. In addition, an individual who is eligible for and claims the deduction
43	43	may not claim the homestead tax credit.
44	44	Because this bill relates to an exemption from state or local taxes, it may be
45	45	referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
46	46	as an appendix to the bill.
47	47	For further information see the state fiscal estimate, which will be printed as
48	48	an appendix to this bill.
49	49	The people of the state of Wisconsin, represented in senate and assembly, do
50	50	enact as follows:
51	51	SECTION 1. 71.05 (6) (b) 57. of the statutes is created to read:
52	52	71.05 (6) (b) 57. a. Subject to the definitions in subd. 57. b. and c. and the
53	53	limitations specified in subd. 57. d., e., f., g., h., and i. for taxable years beginning
54	54	after December 31, 2022, and before January 1, 2028 an amount of income, up to
55	55	$100,000 or $200,000, earned in this state by a psychiatrist from the practice of
56	56	psychiatry or by a psychiatric or mental health nurse practitioner providing
57	57	psychiatric or mental health services in the taxable year to which the claim relates.
58	58	b. In this subdivision, “income" means all remuneration for services performed
59	59	by a psychiatrist for an employer and net earnings from self-employment derived
60	60	solely from the practice of psychiatry and all remuneration for services performed by
61	61	a psychiatric or mental health nurse practitioner and net earnings from
62	62	self-employment derived solely from providing psychiatric or mental health services
63	63	as a psychiatric or mental health nurse practitioner.
64	64	bm. In this subdivision, “psychiatric or mental health nurse practitioner”
65	65	means a nurse licensed under ch. 441 or who holds a multistate license, as defined
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83	83	SECTION 1
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85	85	in 441.51 (2) (h), issued in a party state, as defined in s. 441.51 (2) (k), who practices
86	86	primarily as a psychiatric or mental health nurse practitioner and is currently
87	87	certified by a national certifying body approved by the board of nursing.
88	88	c. In this subdivision, “psychiatrist" has the meaning given in s. 457.01 (8e).
89	89	d. A psychiatrist must begin to claim the subtraction under this subdivision
90	90	within the first 2 years that he or she begins practicing psychiatry within this state
91	91	or within the first 2 years that he or she returns to this state to practice psychiatry
92	92	after practicing psychiatry in another state, or the psychiatrist may not claim the
93	93	subtraction in any future years.
94	94	dm. A psychiatric or mental health nurse practitioner must begin to claim the
95	95	subtraction under this subdivision within the first 2 years that he or she begins
96	96	practicing as a psychiatric or mental health nurse practitioner within this state or
97	97	within the first 2 years that he or she returns to this state to practice as a psychiatric
98	98	or mental health nurse practitioner after practicing as a psychiatric or mental health
99	99	nurse practitioner in another state, or the psychiatric or mental health nurse
100	100	practitioner may not claim the subtraction in any future years.
101	101	e. An individual may claim the subtraction under this subdivision for no more
102	102	than 5 taxable years.
103	103	f. An individual may claim the subtraction under this subdivision only during
104	104	the 5-year period that begins with the first year he or she claims the credit.
105	105	g. If an individual is a full-year resident of this state and is not eligible to claim
106	106	the subtraction in one or more years during the period described in subd. 57. f., the
107	107	claimant may again claim the subtraction in a future year if he or she is eligible to
108	108	do so in that future taxable year, except that the subtraction must occur within the
109	109	5-year period that began as described in subd. 57. f.
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136	136	SECTION 1 ASSEMBLY BILL 32
137	137	h. If an individual begins to claim the subtraction under this subdivision but
138	138	is unable to claim the subtraction for 5 consecutive years because he or she leaves
139	139	the state, the claimant shall add to the tax due for the taxable year during which the
140	140	individual leaves the state, an amount equal to the total gross tax that would have
141	141	been due if the subtraction under this subdivision was not claimed for any year less
142	142	the amount of gross tax actually due for those years.
143	143	i. A psychiatrist or psychiatric or mental health nurse practitioner may
144	144	subtract up to $200,000, as described in subd. 57. a., only if he or she practices or
145	145	performs psychiatric or mental health services in a medically underserved area, as
146	146	defined in s. 39.385 (1) (e), and may subtract up to $100,000, as described in subd.
147	147	57. a., if he or she does not practice or perform psychiatric or mental health services
148	148	in such an area.
149	149	SECTION 2. 71.53 (2) (g) of the statutes is created to read:
150	150	71.53 (2) (g) The claimant is eligible for and claims the subtraction under s.
151	151	71.05 (6) (b) 57. for the taxable year to which a claim under this subchapter relates.
152	152	SECTION 3. 71.77 (9) of the statutes is created to read:
153	153	71.77 (9) Notwithstanding sub. (2), the department may make an assessment
154	154	within one year of the date the taxpayer becomes ineligible for the subtraction under
155	155	s. 71.05 (6) (b) 57. to recover all or part of the subtraction.
156	156	(END)
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