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. This 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 the Department of Revenue to assess taxes owed if a taxpayer becomes ineligible for the deduction within one year of that determination. The new legal language created by this bill is found in sections 71.05 (6) (b) 57., 71.53 (2) (g), and 71.77 (9) of the statutes, which outline the specifics of the deduction and the eligibility requirements.