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2023 - 2024 LEGISLATURE
2023 ASSEMBLY BILL 32
February 10, 2023 - Introduced by Representatives TITTL, BEHNKE, EDMING, GREEN,
MURSAU, STEFFEN and VANDERMEER, cosponsored by Senator JAMES. Referred
to Committee on Ways and Means.
***AUTHORS SUBJECT TO CHANGE***
AN ACT to create 71.05 (6) (b) 57., 71.53 (2) (g) and 71.77 (9) of the statutes;
relating to: creating an individual income tax deduction for certain income
earned by an individual from the practice of psychiatry or from providing
psychiatric or mental health services.
Analysis by the Legislative Reference Bureau
This bill creates an individual income tax subtract modification, or deduction,
for up to $100,000 or $200,000 of income earned in this state by a psychiatrist or by
a psychiatric or mental health nurse practitioner, in the taxable year to which the
claim relates, from the practice of psychiatry or from providing psychiatric or mental
health services. The maximum $200,000 deduction may be claimed by a psychiatrist
or psychiatric or mental health nurse practitioner who practices or performs services
in a medically underserved area, as defined under federal law, and the maximum
$100,000 deduction may be claimed by a psychiatrist or psychiatric or mental health
nurse practitioner who does not practice or perform services in such an area. The
deduction may not be claimed for more than five years, and must be claimed during
the five-year period that begins once the claimant first claims the credit. The
deduction must be claimed initially within the first two years that a psychiatrist or
psychiatric or mental health nurse practitioner begins to practice in this state, or
within the first two years that a psychiatrist or psychiatric or mental health nurse
practitioner returns to this state after practicing in another state. If an individual
begins to claim the deduction and is then ineligible to claim the deduction in any year
that he or she is a full-year resident of this state, the individual may again claim the
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deduction in a future year if eligible to do so. If an individual begins to claim the
deduction but is unable to claim it for five consecutive years because he or she leaves
the state, the individual must add to his or her tax that is due for the year in which
he or she leaves the state the total gross tax that would have been due if the
subtraction was not claimed for any year minus the amount of gross tax actually due
for those years. In addition, an individual who is eligible for and claims the deduction
may not claim the homestead tax credit.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SECTION 1. 71.05 (6) (b) 57. of the statutes is created to read:
71.05 (6) (b) 57. a. Subject to the definitions in subd. 57. b. and c. and the
limitations specified in subd. 57. d., e., f., g., h., and i. for taxable years beginning
after December 31, 2022, and before January 1, 2028 an amount of income, up to
$100,000 or $200,000, earned in this state by a psychiatrist from the practice of
psychiatry or by a psychiatric or mental health nurse practitioner providing
psychiatric or mental health services in the taxable year to which the claim relates.
b. In this subdivision, “income" means all remuneration for services performed
by a psychiatrist for an employer and net earnings from self-employment derived
solely from the practice of psychiatry and all remuneration for services performed by
a psychiatric or mental health nurse practitioner and net earnings from
self-employment derived solely from providing psychiatric or mental health services
as a psychiatric or mental health nurse practitioner.
bm. In this subdivision, “psychiatric or mental health nurse practitioner”
means a nurse licensed under ch. 441 or who holds a multistate license, as defined
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in 441.51 (2) (h), issued in a party state, as defined in s. 441.51 (2) (k), who practices
primarily as a psychiatric or mental health nurse practitioner and is currently
certified by a national certifying body approved by the board of nursing.
c. In this subdivision, “psychiatrist" has the meaning given in s. 457.01 (8e).
d. A psychiatrist must begin to claim the subtraction under this subdivision
within the first 2 years that he or she begins practicing psychiatry within this state
or within the first 2 years that he or she returns to this state to practice psychiatry
after practicing psychiatry in another state, or the psychiatrist may not claim the
subtraction in any future years.
dm. A psychiatric or mental health nurse practitioner must begin to claim the
subtraction under this subdivision within the first 2 years that he or she begins
practicing as a psychiatric or mental health nurse practitioner within this state or
within the first 2 years that he or she returns to this state to practice as a psychiatric
or mental health nurse practitioner after practicing as a psychiatric or mental health
nurse practitioner in another state, or the psychiatric or mental health nurse
practitioner may not claim the subtraction in any future years.
e. An individual may claim the subtraction under this subdivision for no more
than 5 taxable years.
f. An individual may claim the subtraction under this subdivision only during
the 5-year period that begins with the first year he or she claims the credit.
g. If an individual is a full-year resident of this state and is not eligible to claim
the subtraction in one or more years during the period described in subd. 57. f., the
claimant may again claim the subtraction in a future year if he or she is eligible to
do so in that future taxable year, except that the subtraction must occur within the
5-year period that began as described in subd. 57. f.
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h. If an individual begins to claim the subtraction under this subdivision but
is unable to claim the subtraction for 5 consecutive years because he or she leaves
the state, the claimant shall add to the tax due for the taxable year during which the
individual leaves the state, an amount equal to the total gross tax that would have
been due if the subtraction under this subdivision was not claimed for any year less
the amount of gross tax actually due for those years.
i. A psychiatrist or psychiatric or mental health nurse practitioner may
subtract up to $200,000, as described in subd. 57. a., only if he or she practices or
performs psychiatric or mental health services in a medically underserved area, as
defined in s. 39.385 (1) (e), and may subtract up to $100,000, as described in subd.
57. a., if he or she does not practice or perform psychiatric or mental health services
in such an area.
SECTION 2. 71.53 (2) (g) of the statutes is created to read:
71.53 (2) (g) The claimant is eligible for and claims the subtraction under s.
71.05 (6) (b) 57. for the taxable year to which a claim under this subchapter relates.
SECTION 3. 71.77 (9) of the statutes is created to read:
71.77 (9) Notwithstanding sub. (2), the department may make an assessment
within one year of the date the taxpayer becomes ineligible for the subtraction under
s. 71.05 (6) (b) 57. to recover all or part of the subtraction.
(END)
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