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Bill

SB 72

Relating to: creating an individual income tax deduction for certain income earned by an individual from the practice of psychiatry or from providing psychiatric or mental health services. (FE)

2025-2026 Regular Session Introduced by Jesse James

Wisconsin bill creates income tax deduction for psychiatrists and mental health service providers to incentivize workforce expansion in the state.

Failed to pass pursuant to Senate Joint Resolution 1
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Bill Summary · SB 72

Legislative bill overview

SB 72 proposes creating a state income tax deduction for individuals who earn income from practicing psychiatry or providing psychiatric and mental health services in Wisconsin. The deduction would reduce the taxable income of qualifying mental health professionals, effectively lowering their state tax burden on earnings from these services.

Why is this important

Mental health services face significant workforce shortages across Wisconsin and the nation. Tax incentives can influence where professionals choose to practice and whether they remain in the field, potentially affecting access to psychiatric care in underserved areas. This bill represents a policy choice to use tax code to address healthcare workforce challenges.

Potential points of contention

  • Targeted versus universal approach: Critics may question why mental health professionals receive a deduction when other healthcare providers (nurses, physicians in other specialties) do not, raising fairness concerns
  • Cost and revenue impact: The fiscal estimate indicates this will reduce state tax revenue; debate may center on whether this tax expenditure is justified compared to other workforce development strategies
  • Definition and scope: Questions may arise about which mental health services qualify, whether it applies to all practice settings (private, hospital, nonprofit), and whether out-of-state providers are affected
  • Effectiveness uncertainty: Limited evidence exists that tax deductions meaningfully influence where mental health professionals choose to work versus other factors like loan forgiveness or direct salary support

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

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