Creating a veterinary loan repayment grant program administered by the Higher Educational Aids Board and exempting from taxation amounts received from such a grant program, the official text

2025 - 2026 LEGISLATURE
LRB-4982/1
ARG:amn/wlj/skw

2025 SENATE BILL 501
October 2, 2025 - Introduced by Senators Cabral-Guevara, Stafsholt, Marklein and Pfaff, cosponsored by Representatives Kitchens, Tranel, Kreibich, Melotik, Miresse, Mursau, Novak, O'Connor, Piwowarczyk, Rivera-Wagner, Sheehan, Steffen and Stroud. Referred to Committee on Universities and Technical Colleges.

An Act to create 39.389 and 71.05 (6) (b) 58. of the statutes; relating to: creating a veterinary loan repayment grant program administered by the Higher Educational Aids Board and exempting from taxation amounts received from such a grant program.

Analysis by the Legislative Reference Bureau
This bill establishes a veterinary loan repayment grant program administered by the Higher Educational Aids Board to provide financial assistance to veterinarians employed in rural counties in repaying educational loan obligations incurred to become qualified to practice veterinary medicine. For purposes of the program, an “eligible applicant” is an individual who 1) is enrolled in an accredited school of veterinary medicine and is in his or her final year leading to a doctor of veterinary medicine (DVM) degree or 2) was awarded a DVM degree from an accredited school of veterinary medicine in the preceding seven years.
Under the bill, HEAB may award grants to eligible applicants if, at the time the grant is awarded, the eligible applicant has 1) an outstanding balance of at least $25,000 in educational debt incurred to pursue or obtain a DVM degree; and 2) secured or committed to secure full-time employment as a Wisconsin-licensed veterinarian for at least one year in a rural county. A grant award may be used only to repay educational debt incurred to pursue or obtain a DVM degree. The total amount of a grant awarded may not exceed the lesser of the outstanding balance of this educational debt or $25,000 for each year that the eligible applicant secured or committed to secure qualifying employment, not exceeding $100,000 in total. HEAB must pay grant awards annually until the total amount of the grant awarded has been paid, with no annual payment exceeding $25,000. HEAB may not make an annual payment of a grant award unless the eligible applicant completed the year of full-time employment as a veterinarian in a rural county and, during this year, provided at least 25 percent of his or her employed veterinary care to farm animals.
Under the bill, the grant amounts that a veterinarian receives under the program are exempt from taxation.
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.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

Section 1. 39.389 of the statutes is created to read:
39.389 Veterinary loan repayment grant program. (1) Definitions. In this section:
(a) “Eligible applicant” means an individual to whom, at the time of application for the grant program, any of the following applies:
1. The individual is enrolled in an accredited school of veterinary medicine and has completed sufficient credits in a program leading to the degree of doctor of veterinary medicine to be in the final year of the program.
2. The individual was awarded the degree of doctor of veterinary medicine from an accredited school of veterinary medicine within the immediately preceding 7-year period.
(b) “Farm animal” means any warm-blooded animal normally raised on farms in the United States and used or intended for use as food or fiber.

(c) “Grant program” means the veterinary loan repayment grant program under this section.
(d) “Rural county” has the meaning given in s. 39.399 (1g) (a).
(e) “Veterinarian” has the meaning given in s. 89.02 (7).
(2) Establishment of program. There is established, to be administered by the board, a veterinary loan repayment grant program to provide financial assistance to veterinarians employed in rural counties in repaying educational loan obligations incurred to become qualified to practice veterinary medicine in this state.
(3) Grant awards. (a) Subject to pars. (b) and (c) and sub. (4), the board may award grants under this section to eligible applicants if all of the following apply at the time the grant is awarded:
1. The eligible applicant has an outstanding balance of at least $25,000 in educational debt incurred in connection with pursuing or obtaining the degree of doctor of veterinary medicine.
2. The eligible applicant has secured or committed to secure full-time employment as a veterinarian for at least one year in a rural county.
(b) Subject to sub. (4), the total amount of a grant awarded under this section may not exceed the lesser of the following:
1. The total outstanding balance of the educational debt that the eligible applicant incurred in connection with pursuing or obtaining the degree of doctor of veterinary medicine.
2. For each year that the eligible applicant has secured or committed to secure
full-time employment as a veterinarian in a rural county, $25,000, but not exceeding a total grant award of $100,000.
(c) Grants awarded under this section may be used only to repay educational debt incurred in connection with pursuing or obtaining the degree of doctor of veterinary medicine.
(4) Grant payments. The board shall pay grant awards annually until the total amount of the grant awarded under sub. (3) (b) has been paid, with no annual payment exceeding $25,000. The board may not make an annual payment of a grant award unless the eligible applicant has satisfied all of the following requirements:
(a) The eligible applicant completed the year of full-time employment as a veterinarian in a rural county.
(b) During the year described in par. (a), the eligible applicant provided at least 25 percent of his or her employed veterinary care to farm animals.
Section 2. 71.05 (6) (b) 58. of the statutes is created to read:
71.05 (6) (b) 58. For taxable years beginning after December 31, 2024, any amount received by an individual, in the taxable year to which the subtraction relates, from the veterinary loan repayment grant program under s. 39.389.
Section 3. Initial applicability.
(1) Veterinary loan repayment grant program. This act first applies to an individual who graduates from a school of veterinary medicine in 2025.
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