Assembly Bill 1038 proposes the creation of a new individual income tax subtraction for private sector employees who pay union dues and expenses specifically allocated for educational or training purposes. This subtraction is applicable for taxable years beginning after December 31, 2025. To qualify for this tax benefit, individuals must be members of a union that operates a training facility within the state of Wisconsin.

The bill introduces a new section, 71.05 (6) (b) 57., which outlines the conditions under which the tax subtraction can be claimed. It specifies that the subtraction is contingent upon the individual being a member of a qualifying union, thereby linking the tax benefit directly to union membership and the presence of training facilities in the state. This legislation aims to support workforce development by incentivizing union-related educational and training expenses.