2017 - 2018 LEGISLATURE
October 19, 2017 - Introduced by Representatives Tittl, Considine, Edming,
Horlacher, Quinn and Rohrkaste. Referred to Committee on Health.
1An Act to create
71.05 (6) (b) 53. and 71.53 (2) (g) of the statutes;
2creating an individual income tax deduction for certain income earned by an
3individual from the practice of psychiatry.
Analysis by the Legislative Reference Bureau
This bill creates an individual income tax subtract modification, or deduction,
for up to $200,000 of income earned in this state by a psychiatrist, in the taxable year
to which the claim relates, from the practice of psychiatry. The deduction may not
be claimed for more than ten years, and must be claimed during the ten-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 begins to practice in this state,
or within the first two years that a psychiatrist returns to this state after practicing
in another state for at least one year. 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 ten 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
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:
71.05 (6) (b) 53. of the statutes is created to read:
(b) 53. a. Subject to the definitions in subd. 53. b. and c. and the 3
limitations specified in subd. 53. d., e., f., g., and h., for taxable years beginning after 4
December 31, 2015, an amount of income, up to $200,000, earned in this state by a 5
psychiatrist from the practice of psychiatry in the taxable year to which the claim 6
b. In this subdivision, “income" means all remuneration for services performed 8
by a psychiatrist for an employer and net earnings from self-employment derived 9
solely from the practice of psychiatry.
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 12
within the first 2 years that he or she begins practicing psychiatry within this state 13
or within the first 2 years that he or she returns to this state to practice psychiatry 14
after practicing psychiatry for at least one year in another state, or the psychiatrist 15
may not claim the subtraction in any future years.
e. An individual may claim the subtraction under this subdivision for no more 17
than 10 taxable years.
f. An individual may claim the subtraction under this subdivision only during 19
the 10-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 2
the subtraction in one or more years during the period described in subd. 53. f., the 3
claimant may again claim the subtraction in a future year if he or she is eligible to 4
do so in that future taxable year, except that the subtraction must occur within the 5
10-year period that began as described in subd. 53. f.
h. If an individual begins to claim the subtraction under this subdivision but 7
is unable to claim the subtraction for 10 consecutive years because he or she leaves 8
the state, the claimant shall add to the tax due for the taxable year during which the 9
individual leaves the state, an amount equal to the total gross tax that would have 10
been due if the subtraction under this subdivision was not claimed for any year less 11
the amount of gross tax actually due for those years.
71.53 (2) (g) of the statutes is created to read:
(g) The claimant is eligible for and claims the subtraction under s. 14
71.05 (6) (b) 53. for the taxable year to which a claim under this subchapter relates.