2019 - 2020 LEGISLATURE
September 18, 2019 - Introduced by Representatives Tittl, Dittrich, Edming,
James, Kulp, Petryk, Rohrkaste, Thiesfeldt, VanderMeer and Skowronski,
cosponsored by Senator Bernier. Referred to Committee on Ways and Means.
1An Act to create
71.05 (6) (b) 54., 71.53 (2) (g) and 71.77 (9) of the statutes; 2relating to: creating an individual income tax deduction for certain income
3earned by an individual 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 $100,000 or $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
maximum $200,000 deduction may be claimed by a psychiatrist who practices in a
medically underserved area, as defined under federal law, and the maximum
$100,000 deduction may be claimed by a psychiatrist who does not practice 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
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 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:
71.05 (6) (b) 54. of the statutes is created to read:
(b) 54. a. Subject to the definitions in subd. 54. b. and c. and the 3
limitations specified in subd. 54. d., e., f., g., h., and i. for taxable years beginning 4
after December 31, 2019, an amount of income, up to $100,000 or $200,000, earned 5
in this state by a psychiatrist from the practice of psychiatry in the taxable year to 6
which the claim relates.
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 5 taxable years.
f. An individual may claim the subtraction under this subdivision only during 2
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 4
the subtraction in one or more years during the period described in subd. 54. f., the 5
claimant may again claim the subtraction in a future year if he or she is eligible to 6
do so in that future taxable year, except that the subtraction must occur within the 7
5-year period that began as described in subd. 54. f.
h. If an individual begins to claim the subtraction under this subdivision but 9
is unable to claim the subtraction for 5 consecutive years because he or she leaves 10
the state, the claimant shall add to the tax due for the taxable year during which the 11
individual leaves the state, an amount equal to the total gross tax that would have 12
been due if the subtraction under this subdivision was not claimed for any year less 13
the amount of gross tax actually due for those years.
i. A psychiatrist may subtract up to $200,000, as described in this subd. 54. a., 15
but only if he or she practices in a medically underserved area, as defined in s. 39.385 16
(1) (e), and may subtract up to $100,000, as described in this subd. 54. a., if he or she 17
does not practice in such an area.
71.53 (2) (g) of the statutes is created to read:
(g) The claimant is eligible for and claims the subtraction under s. 20
71.05 (6) (b) 54. for the taxable year to which a claim under this subchapter relates.
71.77 (9) of the statutes is created to read:
Notwithstanding sub. (2), the department may make an assessment 23
within one year of the date the taxpayer becomes ineligible for the subtraction under 24
s. 71.05 (6) (b) 54. to recover all or part of the subtraction under this subdivision.