Bill > SB72

Introduced Session

This bill creates an individual income tax subtract modification, or deduction, for up to $100,000 or $200,000 of income earned in this state by a psychiatrist or by a psychiatric or mental health nurse practitioner, in the taxable year to which the claim relates, from the practice of psychiatry or from providing psychiatric or mental health services. The maximum $200,000 deduction may be claimed by a psychiatrist or psychiatric or mental health nurse practitioner who practices or performs services in a medically underserved area, as defined under federal law, and the maximum $100,000 deduction may be claimed by a psychiatrist or psychiatric or mental health nurse practitioner who does not practice or perform services in such an area. The deduction may not be claimed for more than five years, and must be claimed during the five-year period that begins once the claimant first claims the deduction. The deduction must be claimed initially within the first two years that a psychiatrist or psychiatric or mental health nurse practitioner begins to practice in this state, or within the first two years that a LRB-1643/1 KP:cdc 2025 - 2026 Legislature SENATE BILL 72 psychiatrist or psychiatric or mental health nurse practitioner returns to this state after practicing in another state. If an individual begins to claim the deduction and is then ineligible to claim the deduction in any year that he or she is a full-year resident of this state, the individual may again claim the deduction in a future year if eligible to do so. If an individual begins to claim the deduction but is unable to claim it for five consecutive years because he or she leaves the state, the individual must add to his or her tax that is due for the year in which he or she leaves the state the total gross tax that would have been due if the subtraction was not claimed for any year minus the amount of gross tax actually due for those years. In addition, an individual who is eligible for and claims the deduction may not claim the homestead tax credit. Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill. For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

AI Summary

Committee Categories

Jesse James (R)*,  Elijah Behnke (R),  Paul Tittl (R), 

Senate Amendment 1 offered by Senator James (on 03/25/2025)

Official Document