LRBs0235/1
MES:ahe
2017 - 2018 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 556
January 25, 2018 - Offered by Representative Tittl.
AB556-ASA1,1,3 1An Act to create 71.05 (6) (b) 54. and 71.53 (2) (g) of the statutes; relating to:
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 substitute amendment 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 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.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB556-ASA1,1 1Section 1. 71.05 (6) (b) 54. of the statutes is created to read:
AB556-ASA1,2,62 71.05 (6) (b) 54. a. Subject to the definitions in subd. 54. b. and c. and the
3limitations specified in subd. 54. d., e., f., g., and h., for taxable years beginning after
4December 31, 2017, an amount of income, up to $200,000, earned in this state by a
5psychiatrist from the practice of psychiatry in the taxable year to which the claim
6relates.
AB556-ASA1,2,97 b. In this subdivision, “income" means all remuneration for services performed
8by a psychiatrist for an employer and net earnings from self-employment derived
9solely from the practice of psychiatry.
AB556-ASA1,2,1010 c. In this subdivision, “psychiatrist" has the meaning given in s. 457.01 (8e).
AB556-ASA1,2,1511 d. A psychiatrist must begin to claim the subtraction under this subdivision
12within the first 2 years that he or she begins practicing psychiatry within this state
13or within the first 2 years that he or she returns to this state to practice psychiatry
14after practicing psychiatry for at least one year in another state, or the psychiatrist
15may not claim the subtraction in any future years.
AB556-ASA1,2,1716 e. An individual may claim the subtraction under this subdivision for no more
17than 5 taxable years.
AB556-ASA1,2,1918 f. An individual may claim the subtraction under this subdivision only during
19the 5-year period that begins with the first year he or she claims the credit.
AB556-ASA1,3,320 g. If an individual is a full-year resident of this state and is not eligible to claim
21the subtraction in one or more years during the period described in subd. 54. f., the

1claimant may again claim the subtraction in a future year if he or she is eligible to
2do so in that future taxable year, except that the subtraction must occur within the
35-year period that began as described in subd. 54. f.
AB556-ASA1,3,94 h. If an individual begins to claim the subtraction under this subdivision but
5is unable to claim the subtraction for 5 consecutive years because he or she leaves
6the state, the claimant shall add to the tax due for the taxable year during which the
7individual leaves the state, an amount equal to the total gross tax that would have
8been due if the subtraction under this subdivision was not claimed for any year less
9the amount of gross tax actually due for those years.
AB556-ASA1,2 10Section 2 . 71.53 (2) (g) of the statutes is created to read:
AB556-ASA1,3,1211 71.53 (2) (g) The claimant is eligible for and claims the subtraction under s.
1271.05 (6) (b) 54. for the taxable year to which a claim under this subchapter relates.
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