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Bill

SB 118

Relating to: a tax credit for relocating to this state due to Hurricane Helene or the Los Angeles wildfires. (FE)

2025-2026 Regular Session Introduced by Dan Feyen

Wisconsin tax credit incentivizes disaster victims from Hurricane Helene and LA wildfires to relocate statewide, reducing state revenue while competing for displaced residents.

Failed to pass pursuant to Senate Joint Resolution 1
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WeVote Research Nonpartisan
Bill Summary · SB 118

Legislative bill overview

SB 118 would establish a state tax credit for individuals who relocate to Wisconsin as a direct result of Hurricane Helene (2024) or the Los Angeles wildfires (2025). The credit would apply to Wisconsin income taxes for eligible relocators during a specified period, incentivizing disaster victims to settle in the state.

Why is this important

Wisconsin would be competing with other states to attract displaced residents and their economic activity—including workforce participation, consumer spending, and tax revenue—during a period when people are making relocation decisions. The fiscal estimate (received March 2025) indicates measurable state revenue implications, making this a budget-relevant consideration during legislative sessions.

Potential points of contention

  • Verification challenges: Determining genuine disaster displacement versus opportunistic claims requires reliable documentation; enforcement costs and fraud prevention mechanisms are unclear
  • Fiscal sustainability: Tax credits reduce state revenue; the long-term cost and whether economic gains from relocation offset revenue loss are contested policy questions
  • Geographic equity: Providing credits for these specific disasters but not others (or not for Wisconsin residents affected by the same events) raises fairness questions about precedent and future obligations
  • Interstate coordination: California and other affected states may implement competing incentives, creating a subsidy "race to the bottom" with uncertain net economic benefits

Compiled from official sources — confirm details with the bill’s official record.

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