Wisconsin Assembly Bill AB32

Wisconsin 2023-2024 Regular Session

• Introduced: 2/10/23
• Refer: 2/10/23
• Failed: 4/15/24

Caption

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. (FE)

Impact

The implementation of AB32 is expected to have significant implications for state tax laws, especially as it relates to healthcare services. This deduction will not only provide financial incentives for medical professionals but also aim to improve access to mental health care in areas lacking adequate services. The bill establishes precise eligibility criteria and conditions under which these deductions can be claimed, thus creating a structured approach to addressing the state's mental health provider shortage.

Summary

Assembly Bill 32 introduces a new individual income tax deduction aimed specifically at psychiatrists and psychiatric or mental health nurse practitioners in the state. This deduction allows eligible professionals to subtract up to $200,000 of income earned in a tax year if they practice in a medically underserved area, or up to $100,000 if they do not. The intention of this legislation is to encourage more mental health providers to either enter or return to practice in the state, particularly in areas where such services are critically needed.

Contention

While the bill has garnered support for its intention to bolster mental health services, it may also prompt discussions surrounding the funding and fiscal implications of providing such deductions. Critics might raise concerns about the equity of providing tax breaks to certain professions over others, potentially arguing that the allocation of state resources should consider broader health care challenges, not limited to psychiatric services. The limited timeframe for claiming these deductions—only within five years—could also fuel debates regarding the long-term effectiveness of the legislation.