Senate Bill 118 proposes the creation of a nonrefundable income tax credit for U.S. citizens who relocated to Wisconsin due to the impacts of Hurricane Helene in 2024 or the Los Angeles wildfires in January 2025. The bill establishes a credit amount of $10,000 for eligible individuals who resided in the affected areas prior to the disasters. To qualify, claimants must have filed an income tax return for the taxable year beginning after December 31, 2022, and ending before January 1, 2024, listing a home address in either the County of Los Angeles or North Carolina. Additionally, individuals with felony convictions are ineligible to claim this credit.

The bill introduces new sections to the statutes, specifically 71.07 (12) and 71.10 (4) (ci), detailing the definitions, filing claims, limitations, and administration of the specified disaster relocation credit. The credit is applicable for tax years beginning after December 31, 2024, and ending before January 1, 2026, and must be claimed within the specified period outlined in existing law.