Assembly Bill 76 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 not practicing 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 regain eligibility in future years, but must adhere to specific conditions regarding residency and practice location.

Additionally, the bill includes provisions that require individuals who leave the state and have claimed the deduction to add back the tax that would have been due without the deduction for the years they were eligible. It also stipulates that those claiming the deduction cannot simultaneously claim the homestead tax credit. The bill introduces new sections to the statutes, specifically 71.05 (6) (b) 57., 71.53 (2) (g), and 71.77 (9), which outline the eligibility criteria and administrative procedures related to the new tax deduction.