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LRB-4299/1
MPG&EKL:kjf
2019 - 2020 LEGISLATURE
October 10, 2019 - Introduced by Senators Testin, Bernier and Feyen, cosponsored
by Representatives Nygren, Tranel, Summerfield, Born, Dittrich,
Felzkowski, Kerkman, Kitchens, Kulp, Kurtz, Mursau, Oldenburg, Petryk,
Plumer, Quinn, Rohrkaste, Tusler and Zimmerman. Referred to Committee
on Utilities and Housing.
SB484,1,4 1An Act to amend 76.67 (2); and to create 16.309 (4), 71.07 (8f), 71.10 (4) (fd),
271.28 (8f), 71.30 (3) (cu), 71.47 (8f), 71.49 (1) (cu), 76.6395 and 234.045 of the
3statutes; relating to: workforce housing tax credits and economic development
4revolving loan funds.
Analysis by the Legislative Reference Bureau
Workforce housing tax credits
This bill creates a workforce housing tax credit program administered by the
Wisconsin Housing and Economic Development Authority.
Under the bill, WHEDA may certify a person to claim a nonrefundable credit
to offset income and franchise taxes if all of the following conditions are satisfied:
1. The project for which the credit is issued is an eligible workforce housing
project. Under the bill, a project is an eligible workforce housing project only if the
project is for the construction or renovation of residential real property located in a
county with a population density of less than 155 persons per square mile, there is
a need for additional manufacturing workers in the area in which the project is
located, and a lack of adequate housing in the area is a barrier to filling that need.
2. The person is a lender financing an eligible workforce housing project, the
developer of the project, or the business for whose benefit the project is being carried
out.
3. The person has exhausted all funding available for the project from
community development block grants, local assistance, including tax incremental
financing, and assistance otherwise available from WHEDA.

4. The occupants of the housing being constructed or renovated will have a
household income that satisfies the income limitations applicable for the
homeownership mortgage loan program administered by WHEDA under current
law.
The bill requires WHEDA to establish a competitive process for the award of
tax credits that gives priority to all of the following:
1. The number of jobs that will be created in connection with the eligible
workforce housing project.
2. The amount of matching funds secured by the applicant.
3. The applicant's readiness to proceed with the project.
Under the bill, WHEDA may not certify a person to claim a workforce housing
tax credit in an amount that exceeds 50 percent of the total cost of the eligible
workforce housing project. Additionally, WHEDA may not award more than
$10,000,000 in workforce housing tax credits and no credit may be awarded after
December 31, 2021. The bill requires WHEDA to transfer $10,000,000 from its
surplus fund to the state's general fund as an offset against the tax credits WHEDA
awards under the program.
Additionally, the bill includes certain contracting and tax credit revocation
requirements and requires WHEDA to coordinate with the Wisconsin Economic
Development Corporation to administer the tax credit program. WHEDA must
submit a report on the program to the Joint Committee on Finance no later than
September 31, 2022.
Reports on economic development revolving loan funds
This bill also requires the Department of Administration to submit an annual
report to the Joint Committee on Finance concerning moneys held by DOA in
connection with economic development revolving loan funds funded by federal
community development block grants administered by DOA, including all moneys
derived from the liquidation and close-out of such a revolving loan fund. The report
must include all of the following:
1. The balance of the account associated with each revolving loan fund.
2. The accounts receivable for each such account.
3. A detailed description of all expenditures from the account, including a
description of each project funded by a grant awarded from the account.
4. A detailed description of all expenditures from the account DOA intends to
make before March 15 of the year following the report. Under the bill, if JCF objects
to any such intended expenditure, JCF may reallocate the moneys consistent with
federal requirements for expenditure of the moneys.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB484,1
1Section 1. 16.309 (4) of the statutes is created to read:
SB484,3,62 16.309 (4) (a) In this subsection, “revolving loan fund account” means all
3moneys held by the department in connection with each economic development
4revolving loan fund that is funded by a community development block grant under
5this section, including all moneys derived from the liquidation and close-out of the
6revolving loan fund.
SB484,3,97 (b) Annually, no later than March 15, the department shall submit a report to
8the joint committee on finance that includes all of the following information for each
9revolving loan fund account:
SB484,3,1010 1. The account balance.
SB484,3,1111 2. All accounts receivable, if any.
SB484,3,1312 3. A detailed description of all account expenditures, including a description
13of each project funded by a grant awarded from the account.
SB484,3,1514 4. A detailed description of all account expenditures the department intends
15to make before March 15 of the year following the report.
SB484,3,1816 (c) If the joint committee on finance objects to any intended expenditure of
17moneys detailed under par. (b) 4., the committee may reallocate those moneys
18consistent with federal requirements for expenditure of the moneys.
SB484,2 19Section 2 . 71.07 (8f) of the statutes is created to read:
SB484,3,2020 71.07 (8f) Workforce housing credit. (a) Definitions. In this subsection:
SB484,3,2221 1. “Allocation certificate" means an allocation certificate issued by the
22Wisconsin Housing and Economic Development Authority under s. 234.045 (3) (a).
SB484,3,2323 2. “Claimant” means a person who files a claim under this subsection.
SB484,4,224 (b) Filing claims. For taxable years beginning after December 31, 2019, subject
25to the limitations provided in this subsection and in s. 234.045, a claimant may claim

1as a credit against the tax imposed under s. 71.02, up to the amount of the tax, the
2amount specified in the allocation certificate.
SB484,4,43 (c) Limitations. 1. No person may claim the credit under par. (b) unless the
4claimant includes with the claimant's return a copy of the allocation certificate.
SB484,4,115 2. A partnership, limited liability company, or tax-option corporation may not
6claim the credit under this subsection, but the eligibility for and amount of the credit
7are based on the amount specified in the allocation certificate. A partnership, limited
8liability company, or tax-option corporation shall compute the amount of credit that
9each of its partners, members, or shareholders may claim and shall provide that
10information to each of them. Partners, members, and shareholders may claim the
11credit in proportion to their ownership interests.
SB484,4,1812 (d) Carry-forward credit. If the credit that a claimant may claim under par.
13(b) is not entirely offset against Wisconsin income or franchise taxes otherwise due,
14the unused balance shall be carried forward and credited against Wisconsin income
15or franchise taxes otherwise due for the following 10 taxable years to the extent not
16offset by these taxes in all intervening years between the year in which the credit is
17allowed under the allocation certificate and the year in which the carry-forward
18credit is claimed.
SB484,4,2319 (e) Transfer. Any person may sell or otherwise transfer the credit under par.
20(b), in whole or in part, to another person who is subject to the taxes or fees imposed
21under s. 71.02, 71.23, or 71.43 or subch. III of ch. 76 if the person notifies the
22department of the transfer and submits with the notification a copy of the transfer
23documents, and the department certifies the change in the credit's ownership.
SB484,4,2524 (f) Administration. Section 71.28 (4) (e), (g), and (h), as it applies to the credit
25under s. 71.28 (4), applies to the credit under this subsection.
SB484,3
1Section 3. 71.10 (4) (fd) of the statutes is created to read:
SB484,5,22 71.10 (4) (fd) Workforce housing credit under s. 71.07 (8f).
SB484,4 3Section 4 . 71.28 (8f) of the statutes is created to read:
SB484,5,44 71.28 (8f) Workforce housing credit. (a) Definitions. In this subsection:
SB484,5,65 1. “Allocation certificate" means an allocation certificate issued by the
6Wisconsin Housing and Economic Development Authority under s. 234.045 (3) (a).
SB484,5,77 2. “Claimant” means a person who files a claim under this subsection.
SB484,5,118 (b) Filing claims. For taxable years beginning after December 31, 2019, subject
9to the limitations provided in this subsection and in s. 234.045, a claimant may claim
10as a credit against the tax imposed under s. 71.23, up to the amount of the tax, the
11amount specified in the allocation certificate.
SB484,5,1312 (c) Limitations. 1. No person may claim the credit under par. (b) unless the
13claimant includes with the claimant's return a copy of the allocation certificate.
SB484,5,2014 2. A partnership, limited liability company, or tax-option corporation may not
15claim the credit under this subsection, but the eligibility for and amount of the credit
16are based on the amount specified in the allocation certificate. A partnership, limited
17liability company, or tax-option corporation shall compute the amount of credit that
18each of its partners, members, or shareholders may claim and shall provide that
19information to each of them. Partners, members, and shareholders may claim the
20credit in proportion to their ownership interests.
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