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, including the requirement that they must have resided in the affected areas prior to the disasters. Eligible individuals can claim a credit of up to $10,000 against their state income tax for the tax year 2025, provided they meet certain conditions, such as having filed an income tax return for the previous years and not having a felony conviction.

Additionally, the bill creates a corresponding section, 71.10 (4) (ci), to reference the specified disaster relocation credit established in 71.07 (12). The legislation outlines limitations on claiming the credit, including the necessity of filing a tax return with a home address in the specified areas and the requirement to claim the credit within a designated period. Overall, this bill aims to provide financial relief to individuals who have been displaced by significant natural disasters.