Senate Bill 72 proposes the creation of a new individual income tax deduction for income earned by psychiatrists and psychiatric or mental health nurse practitioners in Wisconsin. The bill allows for a deduction of up to $100,000 for those who do not practice in medically underserved areas, and up to $200,000 for those who do. The deduction can be claimed for a maximum of five years, starting within the first two years of practice in the state or upon returning after practicing elsewhere. If a claimant becomes ineligible during this period, they may be able to claim the deduction again in future years if they meet the eligibility criteria.

Additionally, the bill stipulates that individuals who claim this deduction cannot also claim the homestead tax credit. It includes provisions for tax assessments by the department within one year of a taxpayer becoming ineligible for the deduction, ensuring that the state can recover any tax benefits claimed. The bill aims to incentivize mental health professionals to practice in Wisconsin, particularly in underserved areas, thereby addressing the state's mental health service needs.