Assembly Bill 139 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 2025. The bill establishes a new section in the statutes, specifically 71.07 (12), which defines the criteria for claimants, the specified disasters, and the amount of the credit, set at $10,000. This credit is applicable for tax year 2025 and is limited to individuals who resided in the affected areas prior to the disasters and have not been convicted of a felony.

Additionally, the bill introduces a new provision under 71.10 (4) (ci) that references the specified disaster relocation credit outlined in section 71.07 (12). The eligibility requirements stipulate that claimants must have filed an income tax return for the taxable year prior to the disaster and must claim the credit within a specified period. The bill aims to provide financial relief to those who have been displaced by these significant disasters, encouraging their relocation to Wisconsin.