An Act to create 71.07 (12) and 71.10 (4) (ci) of the statutes; Relating to: a tax credit for relocating to this state due to Hurricane Helene or the Los Angeles wildfires. (FE)
Summary
AB139 creates a new nonrefundable Wisconsin income tax credit for certain U.S. citizens who moved to Wisconsin because of two specified disasters: Hurricane Helene in North Carolina and the January 2025 Los Angeles wildfires. The credit amount is $10,000 and applies to tax year 2025, limited to the amount of Wisconsin income tax otherwise due. To qualify, a person must have lived in Los Angeles County or North Carolina before the disaster, have moved to Wisconsin because of the disaster, and have filed a prior income tax return showing a home address in one of those locations.
The bill also bars anyone convicted of a felony from claiming the credit and requires the claim to be filed within the normal statutory deadline. It adds a corresponding administrative reference in the tax code so the Department of Revenue can process the credit under existing credit-claim procedures. In effect, the bill would amend Wisconsin’s individual income tax statutes to create a targeted relocation incentive tied to disaster displacement.
Impact
AB139 would create a new section of the Wisconsin statutes, s. 71.07 (12), establishing the specified disaster relocation credit, and a related administrative cross-reference in s. 71.10 (4) (ci). The bill would reduce state income tax liability for eligible new residents who relocated to Wisconsin because of Hurricane Helene or the Los Angeles wildfires, subject to a $10,000 cap and other eligibility restrictions. Because the credit is nonrefundable, it can offset tax owed but would not generate a refund beyond the taxpayer’s liability.
Sentiment
The available record shows no committee transcript or recorded votes, so there is no documented floor or committee debate to gauge detailed sentiment. Based on the bill’s design, it appears to be framed as a targeted relief measure for disaster-displaced individuals, which suggests a sympathetic policy rationale. However, the bill ultimately failed to pass pursuant to Senate Joint Resolution 1, indicating it did not advance through the legislative process.
Contention
The main policy questions likely concern whether Wisconsin should offer a sizable tax incentive to attract disaster-displaced residents from only two specific geographic areas, and whether the credit is an appropriate use of state tax policy. The bill’s eligibility rules are narrow, requiring prior residence in Los Angeles County or North Carolina and a move specifically caused by the named disasters, which may limit access and invite administrative scrutiny. The felony disqualification is another notable restriction, though no debate record is available to show whether it was controversial.
Crossfiled
An Act to create 71.07 (12) and 71.10 (4) (ci) of the statutes; Relating to: a tax credit for relocating to this state due to Hurricane Helene or the Los Angeles wildfires. (FE)