Senate Bill 674 introduces a new provision allowing taxpayers in Wisconsin to subtract certain theft losses from their individual income tax calculations, effective for taxable years beginning after December 31, 2023. This subtraction applies to theft losses that are deductible under federal law, specifically those related to profit-seeking activities or federally declared disasters. Notably, taxpayers can claim this subtraction regardless of whether they claim the federal deduction. The bill also stipulates that taxpayers who utilize this subtraction cannot include the theft loss when calculating the itemized deductions tax credit.

Additionally, the bill amends existing law to clarify the treatment of casualty and theft deductions under the Internal Revenue Code, ensuring that no addition is made for amounts subtracted under the new theft loss provision. This legislative change aims to provide relief to taxpayers who experience theft losses, aligning state tax policy with federal guidelines while also preventing double-dipping on deductions.

Statutes affected:
Bill Text: 71.07(5)(a)3, 71.07