Rep. Tittl authors Wisconsin Assembly bill for mental health practitioner tax deductions

The new bill authored by State Rep. Paul Tittl seeks to offer income tax deductions to certain mental health professionals practicing in Wisconsin, aiming to support their service in the state, according to the Wisconsin State Assembly.

According to the Wisconsin State Legislature’s official website, the bill was described as follows: “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)”.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill establishes an individual income tax deduction for psychiatrists and psychiatric or mental health nurse practitioners, allowing them to deduct up to $100,000 or $200,000 of income earned in Wisconsin from their services, effective for tax years starting after Dec. 31, 2024, and before Jan. 1, 2030. Practitioners in medically underserved areas can claim the higher deduction of $200,000, while those outside such areas can claim up to $100,000. The deduction can be claimed for up to five years and must begin within the first two years of practicing in or returning to Wisconsin. If a practitioner becomes ineligible during the five years, the deduction may be reclaimed in eligible future years; however, any tax benefits must be repaid if the individual leaves the state within five years. This deduction cannot be combined with a homestead tax credit.

The bill was co-authored by Senator Jesse L. James (Republican-23rd District).

Paul Tittl has authored or co-authored another 15 bills since the beginning of the 2025 session, with none of them being enacted.

Tittl, a Republican, was elected to the Wisconsin State Assembly in 2013 to represent the state’s 25th Assembly district, replacing previous state representative Bob Ziegelbauer.

In Wisconsin, the legislative process starts when a senator, constituent, group, or agency proposes an idea for a bill. After drafting, the bill is introduced, numbered, and referred to a committee for review and public input. If approved, it moves through three readings and votes in both the Senate and Assembly. Once both chambers pass the same version, the bill goes to the governor, who can sign it, veto it, or let it become law without a signature. Only a small share of bills introduced each session ultimately become law. You can learn more about the Wisconsin legislative process here.