Wisconsin 2025-2026 Regular Session

Wisconsin Assembly Bill AB76 Compare Versions

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

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1	1	2025 - 2026 LEGISLATURE
2	2	LRB-1642/1
3	3	KP:cdc
4	4	2025 ASSEMBLY BILL 76
5	5	February 28, 2025 - Introduced by Representatives TITTL and BEHNKE, cosponsored
6	6	by Senator JAMES. Referred to Committee on Ways and Means.
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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
18	18	mental health services. The maximum $200,000 deduction may be claimed by a
19	19	psychiatrist or psychiatric or mental health nurse practitioner who practices or
20	20	performs services in a medically underserved area, as defined under federal law,
21	21	and the maximum $100,000 deduction may be claimed by a psychiatrist or
22	22	psychiatric or mental health nurse practitioner who does not practice or perform
23	23	services in such an area. The deduction may not be claimed for more than five
24	24	years, and must be claimed during the five-year period that begins once the
25	25	claimant first claims the deduction. The deduction must be claimed initially within
26	26	the first two years that a psychiatrist or psychiatric or mental health nurse
27	27	practitioner begins to practice in this state, or within the first two years that a
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31	31	4 2025 - 2026 Legislature
32	32	ASSEMBLY BILL 76
33	33	- 2 - LRB-1642/1
34	34	KP:cdc
35	35	SECTION 1
36	36	psychiatrist or psychiatric or mental health nurse practitioner returns to this state
37	37	after practicing in another state. If an individual begins to claim the deduction and
38	38	is then ineligible to claim the deduction in any year that he or she is a full-year
39	39	resident of this state, the individual may again claim the deduction in a future year
40	40	if eligible to do so. If an individual begins to claim the deduction but is unable to
41	41	claim it for five consecutive years because he or she leaves the state, the individual
42	42	must add to his or her tax that is due for the year in which he or she leaves the state
43	43	the total gross tax that would have been due if the subtraction was not claimed for
44	44	any year minus the amount of gross tax actually due for those years. In addition, an
45	45	individual who is eligible for and claims the deduction may not claim the homestead
46	46	tax credit.
47	47	Because this bill relates to an exemption from state or local taxes, it may be
48	48	referred to the Joint Survey Committee on Tax Exemptions for a report to be
49	49	printed as an appendix to the bill.
50	50	For further information see the state fiscal estimate, which will be printed as
51	51	an appendix to this bill.
52	52	The people of the state of Wisconsin, represented in senate and assembly, do
53	53	enact as follows:
54	54	SECTION 1. 71.05 (6) (b) 57. of the statutes is created to read:
55	55	71.05 (6) (b) 57. a. Subject to the definitions in subd. 57. b. and c. and the
56	56	limitations specified in subd. 57. d., e., f., g., h., and i. for taxable years beginning
57	57	after December 31, 2024, and before January 1, 2030 an amount of income, up to
58	58	$100,000 or $200,000, earned in this state by a psychiatrist from the practice of
59	59	psychiatry or by a psychiatric or mental health nurse practitioner providing
60	60	psychiatric or mental health services in the taxable year to which the claim relates.
61	61	b. In this subdivision, XincomeY means all remuneration for services
62	62	performed by a psychiatrist for an employer and net earnings from self-employment
63	63	derived solely from the practice of psychiatry and all remuneration for services
64	64	performed by a psychiatric or mental health nurse practitioner and net earnings
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76	76	ASSEMBLY BILL 76
77	77	- 3 - LRB-1642/1
78	78	KP:cdc
79	79	SECTION 1
80	80	from self-employment derived solely from providing psychiatric or mental health
81	81	services as a psychiatric or mental health nurse practitioner.
82	82	bm. In this subdivision, Xpsychiatric or mental health nurse practitionerY
83	83	means a nurse licensed under ch. 441 or who holds a multistate license, as defined
84	84	in 441.51 (2) (h), issued in a party state, as defined in s. 441.51 (2) (k), who practices
85	85	primarily as a psychiatric or mental health nurse practitioner and is currently
86	86	certified by a national certifying body approved by the board of nursing.
87	87	c. In this subdivision, XpsychiatristY has the meaning given in s. 457.01 (8e).
88	88	d. A psychiatrist must begin to claim the subtraction under this subdivision
89	89	within the first 2 years that he or she begins practicing psychiatry within this state
90	90	or within the first 2 years that he or she returns to this state to practice psychiatry
91	91	after practicing psychiatry in another state, or the psychiatrist may not claim the
92	92	subtraction in any future years.
93	93	dm. A psychiatric or mental health nurse practitioner must begin to claim the
94	94	subtraction under this subdivision within the first 2 years that he or she begins
95	95	practicing as a psychiatric or mental health nurse practitioner within this state or
96	96	within the first 2 years that he or she returns to this state to practice as a
97	97	psychiatric or mental health nurse practitioner after practicing as a psychiatric or
98	98	mental health nurse practitioner in another state, or the psychiatric or mental
99	99	health nurse practitioner may not claim the subtraction in any future years.
100	100	e. An individual may claim the subtraction under this subdivision for no more
101	101	than 5 taxable years.
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123	123	22 2025 - 2026 Legislature
124	124	ASSEMBLY BILL 76
125	125	- 4 - LRB-1642/1
126	126	KP:cdc
127	127	SECTION 1
128	128	f. An individual may claim the subtraction under this subdivision only during
129	129	the 5-year period that begins with the first year he or she claims the credit.
130	130	g. If an individual is a full-year resident of this state and is not eligible to
131	131	claim the subtraction in one or more years during the period described in subd. 57.
132	132	f., the claimant may again claim the subtraction in a future year if he or she is
133	133	eligible to do so in that future taxable year, except that the subtraction must occur
134	134	within the 5-year period that began as described in subd. 57. f.
135	135	h. If an individual begins to claim the subtraction under this subdivision but
136	136	is unable to claim the subtraction for 5 consecutive years because he or she leaves
137	137	the state, the claimant shall add to the tax due for the taxable year during which
138	138	the individual leaves the state, an amount equal to the total gross tax that would
139	139	have been due if the subtraction under this subdivision was not claimed for any year
140	140	less the amount of gross tax actually due for those years.
141	141	i. A psychiatrist or psychiatric or mental health nurse practitioner may
142	142	subtract up to $200,000, as described in subd. 57. a., only if he or she practices or
143	143	performs psychiatric or mental health services in a medically underserved area, as
144	144	defined in s. 39.385 (1) (e), and may subtract up to $100,000, as described in subd.
145	145	57. a., if he or she does not practice or perform psychiatric or mental health services
146	146	in such an area.
147	147	SECTION 2. 71.53 (2) (g) of the statutes is created to read:
148	148	71.53 (2) (g) The claimant is eligible for and claims the subtraction under s.
149	149	71.05 (6) (b) 57. for the taxable year to which a claim under this subchapter relates.
150	150	SECTION 3. 71.77 (9) of the statutes is created to read:
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173	173	23 2025 - 2026 Legislature
174	174	ASSEMBLY BILL 76
175	175	- 5 - LRB-1642/1
176	176	KP:cdc
177	177	SECTION 3
178	178	71.77 (9) Notwithstanding sub. (2), the department may make an assessment
179	179	within one year of the date the taxpayer becomes ineligible for the subtraction
180	180	under s. 71.05 (6) (b) 57. to recover all or part of the subtraction.
181	181	(END)
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