2025 - 2026 LEGISLATURE
LRB-1642/1
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2025 ASSEMBLY BILL 76
February 28, 2025 - Introduced by Representatives TITTL and BEHNKE, 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 deduction. 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
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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 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, 2024, and before January 1, 2030 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, XincomeY 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
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from self-employment derived solely from providing psychiatric or mental health
services as a psychiatric or mental health nurse practitioner.
bm. In this subdivision, Xpsychiatric or mental health nurse practitionerY
means a nurse licensed under ch. 441 or who holds a multistate license, as defined
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, XpsychiatristY 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.
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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.
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:
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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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