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AB156-ASA1,18,18 11(4) Recapture. (a) As of the last day of any taxable year during the compliance
12period, if the qualified basis of a qualified housing development with respect to a
13claimant is less than the qualified basis as of the last day of the previous taxable year,
14the amount of the claimant's tax liability under s. 76.60, 76.63, 76.65, 76.66, or 76.67
15shall be increased by an amount equal to the excess of the aggregate credit claimed
16under this section in prior taxable years over the aggregate credit that would be
17claimed in those years if the full credit amount allocated to the claimant for the credit
18period was claimed ratably over 10 years.
AB156-ASA1,18,2419 (b) Paragraph (a) does not apply if the reduction in qualified basis for the
20taxable year is by reason of a casualty loss if the loss is restored by reconstruction
21or replacement within a reasonable period; a minimal change in floor space; or a
22disposition of an interest in the qualified housing development if it is reasonably
23expected that the development will continue to be operated as a qualified housing
24development for the remainder of the compliance period.
AB156-ASA1,19,3
1(c) In the event that the recapture of a credit is required in a taxable year, the
2taxpayer shall include the recaptured amount of the credit on the return submitted
3for the taxable year in which the recapture event is identified.
AB156-ASA1,19,9 4(5) Carry-forward. If the credit under sub. (2) is not entirely offset against the
5fees under s. 76.60, 76.63, 76.65, 76.66, or 76.67 otherwise due, the unused balance
6may be carried forward and credited against those fees for the following 15 years to
7the extent that it is not offset by those fees otherwise due in all the years between
8the year in which the expense was made and the year in which the carry-forward
9credit is claimed.
AB156-ASA1,15 10Section 15. 76.67 (2) of the statutes is amended to read:
AB156-ASA1,19,2111 76.67 (2) If any domestic insurer is licensed to transact insurance business in
12another state, this state may not require similar insurers domiciled in that other
13state to pay taxes greater in the aggregate than the aggregate amount of taxes that
14a domestic insurer is required to pay to that other state for the same year less the
15credits under ss. 76.635, 76.636, 76.637, 76.638, 76.639, 76.6395, and 76.655, except
16that the amount imposed shall not be less than the total of the amounts due under
17ss. 76.65 (2) and 601.93 and, if the insurer is subject to s. 76.60, 0.375 percent of its
18gross premiums, as calculated under s. 76.62, less offsets allowed under s. 646.51 (7)
19or under ss. 76.635, 76.636, 76.637, 76.638, 76.639, 76.6395, and 76.655 against that
20total, and except that the amount imposed shall not be less than the amount due
21under s. 601.93.
AB156-ASA1,16 22Section 16 . 234.46 of the statutes is created to read:
AB156-ASA1,19,24 23234.46 State workforce housing tax credits. (1) Definitions. In this
24section:
AB156-ASA1,20,4
1(a) “Allocation certificate” means a statement issued by the authority certifying
2that a qualified housing development is eligible for a credit under this section and
3specifying the amount of the credit that the owners of the qualified housing
4development may claim for each taxable year of the credit period.
AB156-ASA1,20,65 (b) “Area median gross income” has the meaning as used for purposes of 26 USC
642
.
AB156-ASA1,20,117 (c) “Credit period” means the 6-year period beginning with the taxable year in
8which a qualified housing development is placed in service. For purposes of this
9paragraph, if a qualified housing development consists of more than one building,
10the qualified housing development is placed in service in the taxable year in which
11the last building is placed in service.
AB156-ASA1,20,1612 (d) “Qualified housing development” means a residential rental property
13development located in this state if at least 25 percent of the development's
14residential rental units are rent-restricted units and occupied by individuals whose
15tenant income is at least 61 percent but not more than 100 percent of area median
16gross income.
AB156-ASA1,20,1917 (e) “Qualified unit” means a rent-restricted unit that is occupied by individuals
18whose tenant income is at least 61 percent but not more than 100 percent of area
19median gross income.
AB156-ASA1,20,2320 (f) “Rent-restricted unit” means a residential rental unit if the gross rent with
21respect to the unit does not exceed 30 percent of area median gross income,
22determined as if the unit is occupied by one individual in a unit without a separate
23bedroom and 1.5 individuals for each separate bedroom in any other unit.
AB156-ASA1,20,2524 (g) “State tax credit” means a tax credit under s. 71.07 (8f), 71.28 (8f), 71.47 (8f),
25or 76.6395.
AB156-ASA1,21,2
1(h) “Tenant income” means the income determined under 26 USC 142 (d) (2)
2(B) of individuals occupying a residential rental unit.
AB156-ASA1,21,5 3(2) Establishment of program. The authority shall establish a program to
4certify persons to claim state tax credits, in amounts determined by the authority,
5under this section.
AB156-ASA1,21,17 6(3) Certification. The authority may certify a person to claim a state tax credit
7by issuing the person an allocation certificate for the qualified housing development.
8The allocation certificate shall state the amount the authority determines the person
9is eligible to claim for each year of the credit period, the name and address of the
10person, the person's Wisconsin tax identification number, and any other information
11required by the authority or the department of revenue. The authority shall provide
12a copy of the allocation certificate to the department of revenue. The authority shall
13issue allocation certificates annually, on a rolling basis, based on eligibility, as
14determined by the authority, except that the authority may develop a competitive
15process to award allocation certificates as a part of its qualified allocation plan under
16sub. (4). The authority may issue an allocation certificate under this subsection only
17if all of the following conditions are satisfied:
AB156-ASA1,21,1918 (a) The allocation certificate is issued to a person who has an ownership
19interest in the qualified housing development.
AB156-ASA1,21,2120 (b) The state tax credit is necessary for the financial feasibility of the qualified
21housing development.
AB156-ASA1,22,222 (c) The qualified housing development is the subject of a recorded restrictive
23covenant requiring that, for a period of at least 15 years or for a longer period agreed
24to by the authority and the owner of the qualified housing development, the
25development shall be maintained and operated as a qualified housing development

1and shall be in compliance with Title VIII of the federal Civil Rights Act of 1968, as
2amended.
AB156-ASA1,22,43 (d) The allocation certificate is issued in accordance with the authority's
4qualified allocation plan under sub. (4).
AB156-ASA1,22,14 5(4) Allocation plan. The authority shall develop a qualified allocation plan
6that sets forth selection criteria to determine housing priorities for individuals
7whose income is at least 61 percent but not more 100 percent of area median gross
8income. The housing priorities shall be appropriate for local conditions. The
9selection criteria shall include project location, housing needs characteristics,
10project characteristics, sponsor characteristics, tenant populations with special
11housing needs, tenant populations of individuals with children, projects intended for
12eventual tenant ownership, the energy efficiency of the project, and the historic
13nature of the project. The plan shall include procedures to monitor noncompliance
14with this section and with habitability standards.
AB156-ASA1,22,23 15(5) Allocation limits. In any calendar year, the aggregate amount of all state
16tax credits for which the authority certifies persons in allocation certificates issued
17under sub. (3) in that year may not exceed $42,000,000, including all amounts each
18person is eligible to claim for each year of the credit period, plus the total amount of
19all unallocated state tax credits from previous calendar years, plus the total amount
20of all previously allocated state tax credits that have been revoked, canceled, or
21otherwise recovered by the authority, and plus the total amount of credits allocated
22under sub. (6) that were not claimed in the taxable year specified in the allocation
23certificate.
AB156-ASA1,23,2 24(6) Set-aside for smaller municipalities. In issuing allocation certificates
25under sub. (3), the authority shall award at least 50 percent of the annual credit

1allocation to qualified housing developments located in cities, villages, and towns
2with a population of fewer than 150,000.
AB156-ASA1,23,4 3(7) Report. No later than December 31 of each year, the authority shall submit
4a report to the legislature under s. 13.172 (2) that includes all of the following:
AB156-ASA1,23,105 (a) A description of each qualified housing development for which the authority
6issued an allocation certificate that year, including the development's geographic
7location, the household type and any specific demographic information available
8concerning the residents intended to be served by the development, the income levels
9of residents intended to be served by the development, and the rents or set-asides
10authorized for the development.
AB156-ASA1,23,1511 (b) An analysis of housing market and demographic information that shows
12how the qualified housing developments for which the authority has issued
13allocation certificates at any time are addressing the need for affordable housing
14within the communities the developments are intended to serve and an analysis of
15remaining disparities in the affordability of housing within those communities.
AB156-ASA1,23,18 16(8) Policies and procedures. The authority, in consultation with the
17department of revenue, shall establish policies and procedures to administer this
18section.
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