WI SB674

Creates a new individual income tax subtraction for theft losses that qualify as itemized deductions under federal law, effective for taxable years beginning after December 31, 2023

Eligible theft losses must be related to profit-seeking activities or connected to federally or state declared disasters, with no reasonable chance of recovery

Taxpayers may claim the state subtraction regardless of whether they actually claim the federal itemized deduction

Prevents double-dipping by prohibiting taxpayers who claim the theft loss subtraction from also including that amount when calculating the itemized deductions tax credit

Introduced November 20, 2025 by Senator Felzkowski and referred to the Committee on Agriculture and Revenue