Wisconsin 2025 Regular Session Status: To Executive 1 R cosponsors

AB 685 — Relating to: individual income tax subtraction for certain theft losses. (FE)

Last action — Published 4-4-2026

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill has been sent to the executive. Introduced November 26, 2025. It awaits signature.

Next likely step: the executive signs it into law or issues a veto.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

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A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Likely to advance 66% · moderate confidence

  • To Executive

    Current position in the legislative process.

  • 2 sponsors

    1 primary, 1 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 R).

  • Cleared a recorded vote

    Passed 6 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Summary

An Act to amend 71.07 (5) (a) 3.; to create 71.05 (6) (b) 57. of the statutes;

Bill Text

What changed in the latest version

40 added · 43 removed

Plain-language change summary

The recent changes to Assembly Bill 685 now permit taxpayers to subtract theft losses from their income when filing individual income taxes, starting with the 2024 tax year. Previously, the bill focused on losses due to financial exploitation, which had different criteria and limits. This shift is significant because it broadens the scope for taxpayers, allowing those affected by theft—regardless of whether they claimed a federal deduction—to benefit from this subtraction. It also clarifies that any losses subtracted cannot be claimed for other tax credits, ensuring that taxpayers follow consistent guidelines.

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Latest
- 2026 LEGISLATURE LRBs0343/1 EKL:skw ASSEMBLY SUBSTITUTE AMENDMENT 2, TO ASSEMBLY BILL 685 February 4, 2026 - Offered by Representative WEARINGEN .
- 2026 LEGISLATURE LRB-5517/1 EKL:ajk ASSEMBLY BILL 685 November 26, 2025 - Introduced by Representative S WEARINGEN , cosponsored by Senator F ELZKOWSKI .
A N A CT to create 71.05 (6) (a) 30.
Referred to Committee on Ways and Means.
and 71.05 (6) (b) 57.
A N A CT to amend 71.07 (5) (a) 3.;
to create 71.05 (6) (b) 57.
individual income tax subtraction for losses due to financial exploitation.
individual income tax subtraction for certain theft losses.
Analysis by the Legislative Reference Bureau This bill allows individuals to subtract losses from their financial accounts due to financial exploitation when calculating their income for tax purposes, beginning with taxable year 2024.
Analysis by the Legislative Reference Bureau This bill allows taxpayers to subtract certain theft losses when calculating their income for individual income tax purposes, beginning with taxable year 2024.
Under the bill, the subtraction occurs in the taxable year in which the withdrawal or disbursement of the lost funds occurred.
Under the bill, a taxpayer may subtract a theft loss if the loss is deductible in the taxable year as an itemized deduction under federal law, regardless of whether the individual claims the federal deduction.
The bill provides that financial exploitation is considered to occur if it was reported to law enforcement officials and there is no reasonable prospect of recovery of the loss through legal action, insurance claim, or other compensation.
Under federal law, the deduction is limited to losses that are related to a profit-seeking activity or connected to a federally declared disaster (or, beginning next year, a state declared disaster).
The bill provides that the subtraction may not exceed the amount lost that was otherwise subject to tax and that no amount may be subtracted unless the withdrawal or disbursement from the account was included in gross income for federal tax purposes.
Federal law imposes additional conditions, including that there be no reasonable chance of recovering the money or property, and generally provides that a theft loss is claimed in the year in which the taxpayer discovers the loss.
The bill further provides that any amount subtracted may not be deducted or excluded from income, or claimed as a credit, under any other income tax provision.
The bill also provides that taxpayers who make the subtraction under the bill may not include the theft loss in the amount used to claim the itemized deductions tax credit.
Under current law, that credit is based on the amount of specified itemized deductions a taxpayer is eligible to claim for federal tax purposes.
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.
- 2026 Legislature - 2 - LRB-5517/1 EKL:ajk ASSEMBLY BILL 685 SECTION 1 For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
- 2026 Legislature - 2 - LRBs0343/1 EKL:skw SECTION 1 S ECTION 1.
S ECTION 1.
71.05 (6) (a) 30.
of the statutes is created to read:
71.05 (6) (a) 30.
The amount received during the taxable year that is a recovery, reimbursement, or compensation of an amount previously subtracted from income under par.
(b) 57.
S ECTION 2.
For taxable years beginning after December 31, 2023, the amount lost from the individual’s financial account due to financial exploitation, as defined in s.
For taxable years beginning after December 31, 2023, the amount of any loss arising from theft to the extent that the theft loss is deductible in the taxable year under section 165 (c) (2) or (3) of the Internal Revenue Code.
46.90 (1) (ed).
S ECTION 2.
The amount subtracted under this subdivision may not exceed the amount lost that was otherwise subject to tax under this subchapter, and no amount may be subtracted under this subdivision unless the withdrawal or disbursement of the lost funds from the financial account resulted in the funds being included in the individual’s gross income for federal income tax purposes.
71.07 (5) (a) 3.
For purposes of this subdivision, financial exploitation is considered to occur if it was reported to law enforcement officials and there is no reasonable prospect of recovery of the loss through legal action, insurance claim, or other compensation.
of the statutes is amended to read:
Amounts allowed under this subdivision may be subtracted in the taxable year in which the withdrawal or disbursement of the lost funds occurred.
71.07 (5) (a) 3.
Any amount subtracted under this subdivision may not be deducted or excluded from income, or claimed as a credit, under any other provision in this chapter.
Casualty and theft deductions under section 165 (c) (3) of the internal revenue code Internal Revenue Code, except for casualty losses that are directly related to a presidentially declared disaster under 26 USC section 7508A of the Internal Revenue Code.
No addition may be made under this subdivision for any amount for which a subtraction is made under s.
71.05 (6) (b) 57.
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Action History

  1. Published 4-4-2026

  2. Report approved by the Governor on 4-3-2026. 2025 Wisconsin Act 192

  3. Presented to the Governor on 4-2-2026

  4. Report correctly enrolled on 3-23-2026

  5. Received from Senate concurred in

  6. Ordered immediately messaged

  7. Senator Smith added as a cosponsor

  8. Read a third time and concurred in, Ayes 33, Noes 0

  9. Rules suspended to give bill its third reading

  10. Ordered to a third reading

  11. Read a second time

  12. Placed on calendar 3-17-2026 pursuant to Senate Rule 18(1)

  13. Public hearing requirement waived by committee on Senate Organization, pursuant to Senate Rule 18 (1m), Ayes 3, Noes 2

  14. Available for scheduling

  15. Report concurrence recommended by Joint Committee on Finance, Ayes 16, Noes 0

  16. Executive action taken

  17. Withdrawn from committee on Senate Organization and rereferred to joint committee on Finance pursuant to Senate Rule 46(2)(c)

  18. Available for scheduling

  19. Read first time and referred to committee on Senate Organization

  20. Received from Assembly

  21. Ordered immediately messaged

  22. Read a third time and passed, Ayes 99, Noes 0

  23. Rules suspended

  24. Ordered to a third reading

  25. Assembly Substitute Amendment 2 adopted

  26. Read a second time

  27. Representative Ortiz-Velez added as a coauthor

  28. Withdrawn from Committee on Rules and referred to calendar of 2-17-2026

  29. Representative Snyder added as a coauthor

  30. Report of Joint Survey Committee on Tax Exemptions received, Ayes 9, Noes 0

  31. Executive action taken by joint survey committee on Tax Exemptions

  32. Senator Spreitzer added as a cosponsor

  33. Referred to joint survey committee on Tax Exemptions pursuant to Assembly Rule 45 (4)

  34. Assembly Substitute Amendment 2 offered by Representative Swearingen

  35. Assembly Amendment 1 to Assembly Substitute Amendment 1 offered by Representative Swearingen

  36. Referred to committee on Rules

  37. Report passage as amended recommended by Committee on Ways and Means, Ayes 10, Noes 0

  38. Report Assembly Substitute Amendment 1 adoption recommended by Committee on Ways and Means, Ayes 10, Noes 0

  39. Executive action taken

  40. Public hearing held

  41. Assembly Substitute Amendment 1 offered by Representative Swearingen

  42. Fiscal estimate received

  43. Read first time and referred to Committee on Ways and Means

  44. Introduced by Representative Swearingen; cosponsored by Senator Felzkowski

Sponsors

Sponsorship breakdown

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1 sponsors · 1 co-sponsors · 130 not signed on

Sponsors (1)

Co-sponsors (1)

  • Felzkowski

Not signed on (130)

130 members have not signed on to this bill.

Show all 130 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Read a third time and concurred in

Passed 33 Yea · 0 Nay
Party YeaNayPresentNot Voting
Republican 18000
Democrat 12000
Unaffiliated 3000
Total 33000
% of votes cast 100%0%0%0%
How each member voted (33)
Member Party Vote
JOHNSON — Yea
DASSLER-ALFHEI — Yea
HABUSH SINYKIN — Yea
Carpenter, Tim Democrat Yea
Drake, Dora Democrat Yea
Hesselbein, Dianne Democrat Yea
Keyeski, Sarah Democrat Yea
Larson, Chris Democrat Yea
Pfaff, Brad Democrat Yea
Ratcliff, Melissa Democrat Yea
Roys, Kelda Democrat Yea
Smith, Jeff Democrat Yea
Spreitzer, Mark Democrat Yea
Wall, Jamie Democrat Yea
Wirch, Robert Democrat Yea
Bradley, Julian Republican Yea
Cabral-Guevara, Rachael Republican Yea
Felzkowski, Mary Republican Yea
Feyen, Dan Republican Yea
Hutton, Rob Republican Yea
Jacque, André Republican Yea
Jagler, John Republican Yea
James, Jesse Republican Yea
Kapenga, Chris Republican Yea
LeMahieu, Devin Republican Yea
Marklein, Howard Republican Yea
Nass, Steve Republican Yea
Quinn, Romaine Republican Yea
Stafsholt, Rob Republican Yea
Testin, Patrick Republican Yea
Tomczyk, Cory Republican Yea
Wanggaard, Van Republican Yea
Wimberger, Eric Republican Yea

Official roll call →

Read a third time and passed

Passed 99 Yea · 0 Nay
Party YeaNayPresentNot Voting
Republican 53000
Democrat 43000
Unaffiliated 3000
Total 99000
% of votes cast 100%0%0%0%
How each member voted (99)
Member Party Vote
JOHNSON — Yea
MOORE OMOKUNDE — Yea
SPEAKER — Yea
Anderson, Clinton Democrat Yea
Andraca, Deb Democrat Yea
Arney, Margaret Democrat Yea
Bare, Mike Democrat Yea
Billings, Jill Democrat Yea
Brown, Brienne Democrat Yea
Clancy, Ryan Democrat Yea
Cruz, Angelina Democrat Yea
DeSanto, Karen Democrat Yea
DeSmidt, Ben Democrat Yea
Doyle, Steve Democrat Yea
Emerson, Jodi Democrat Yea
Fitzgerald, Joan Democrat Yea
Goodwin, Russell Democrat Yea
Haywood, Kalan Democrat Yea
Hong, Francesca Democrat Yea
Hysell, Andrew Democrat Yea
Jacobson, Jenna Democrat Yea
Joers, Alex Democrat Yea
Kirsch, Karen Democrat Yea
Madison, Darrin Democrat Yea
Mayadev, Renuka Democrat Yea
McCarville, Maureen Democrat Yea
McGuire, Tip Democrat Yea
Miresse, Vincent Democrat Yea
Neubauer, Greta Democrat Yea
Ortiz-Velez, Sylvia Democrat Yea
Palmeri, Lori Democrat Yea
Phelps, Christian Democrat Yea
Prado, Priscilla Democrat Yea
Rivera-Wagner, Amaad Democrat Yea
Roe, Ann Democrat Yea
Sheehan, Joe Democrat Yea
Sinicki, Christine Democrat Yea
Snodgrass, Lee Democrat Yea
Spaude, Ryan Democrat Yea
Stroud, Angela Democrat Yea
Stubbs, Shelia Democrat Yea
Subeck, Lisa Democrat Yea
Taylor, Sequanna Democrat Yea
Tenorio, Angelito Democrat Yea
Udell, Randy Democrat Yea
Vining, Robyn Democrat Yea
Allen, Scott Republican Yea
Armstrong, David Republican Yea
August, Tyler Republican Yea
Behnke, Elijah Republican Yea
Born, Mark Republican Yea
Brill, Lindee Republican Yea
Brooks, Robert Republican Yea
Callahan, Calvin Republican Yea
Dallman, Alex Republican Yea
Dittrich, Barbara Republican Yea
Donovan, Bob Republican Yea
Duchow, Cindi Republican Yea
Franklin, Benjamin Republican Yea
Goeben, Joy Republican Yea
Green, Chanz Republican Yea
Gundrum, Rick Republican Yea
Gustafson, Nate Republican Yea
Hurd, Karen Republican Yea
Jacobson, Brent Republican Yea
Kaufert, Dean Republican Yea
Kitchens, Joel Republican Yea
Knodl, Daniel Republican Yea
Kreibich, Rob Republican Yea
Krug, Scott Republican Yea
Kurtz, Tony Republican Yea
Maxey, Dave Republican Yea
Melotik, Paul Republican Yea
Moses, Clint Republican Yea
Murphy, David Republican Yea
Mursau, Jeffrey Republican Yea
Nedweski, Amanda Republican Yea
Neylon, Adam Republican Yea
Novak, Todd Republican Yea
O'Connor, Jerry Republican Yea
Penterman, William Republican Yea
Petersen, Kevin Republican Yea
Piwowarczyk, Jim Republican Yea
Pronschinske, Treig Republican Yea
Rodriguez, Jessie Republican Yea
Snyder, Patrick Republican Yea
Sortwell, Shae Republican Yea
Spiros, John Republican Yea
Steffen, David Republican Yea
Summerfield, Rob Republican Yea
Swearingen, Rob Republican Yea
Tittl, Paul Republican Yea
Tranel, Travis Republican Yea
Tucker, Duke Republican Yea
Tusler, Ron Republican Yea
VanderMeer, Nancy Republican Yea
Wichgers, Chuck Republican Yea
Wittke, Robert Republican Yea
Zimmerman, Shannon Republican Yea

Official roll call →

Subjects

taxation
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does AB 685 do?
An Act to amend 71.07 (5) (a) 3.; to create 71.05 (6) (b) 57. of the statutes;
Who sponsors AB 685?
AB 685 is sponsored by Felzkowski and Swearingen, Rob (Republican).
What is the current status of AB 685?
This bill has been sent to the executive. Introduced November 26, 2025. It awaits signature.
Where can I track AB 685?
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