A tax credit for relocating to this state due to Hurricane Helene or the Los Angeles wildfires. (FE)
Impact
The implementation of SB118 is anticipated to have a positive impact on state laws regarding tax relief for disaster victims. By incentivizing relocation, the bill could lead to an increase in the population and economic activity within Wisconsin, particularly from areas that have recently experienced devastation due to disasters. Additionally, the specified credit can help facilitate smoother transitions for those who have faced crisis situations, providing them both a financial boost and encouragement to re-establish their lives in a new environment.
Summary
Senate Bill 118 establishes a nonrefundable income tax credit for individuals relocating to Wisconsin due to specific disasters, namely Hurricane Helene and the 2025 Los Angeles wildfires. The bill allows eligible U.S. citizens who resided in affected areas to claim a tax credit of up to $10,000 for the 2025 tax year. This initiative aims to encourage individuals who faced significant natural disasters to move to Wisconsin and helps alleviate some financial burdens associated with their transition.
Contention
While the bill proposes significant financial support to those relocating from disaster-stricken areas, there are notable points of contention. For example, the stipulation that excludes individuals with felony convictions from claiming the tax credit has raised concerns about fairness and accessibility. Critics argue that this restriction disproportionately affects individuals who may already face significant challenges in re-establishing themselves after such traumatic events. Furthermore, there may be discussions regarding the overall fiscal impact of this tax credit on state revenues and whether sufficient funds will be available to support its potential uptake.
Creating an employee ownership conversion costs tax credit and an exemption for capital gains from the transfer of a business to employee ownership. (FE)