Relating to: individual income tax subtraction for certain theft losses. (FE)

SB 674 allows Wisconsin taxpayers to subtract theft losses from their state income tax if those losses are already deductible under federal tax law (specifically Internal Revenue Code Section 165(c)(2) or (3)). It directly affects individuals who experienced theft-related financial losses, such as stolen property or funds, that qualify for federal deduction. The bill creates a new state tax provision (71.05(6)(b)57) to align with federal rules, while preventing double benefits by prohibiting state tax deductions for losses already covered by this new subtraction. This change ensures Wisconsin taxpayers can claim state tax relief for theft losses that meet federal criteria, without overlapping with existing federal deductions.