This is the preview version of the Wisconsin State Legislature site.
Please see http://docs.legis.wisconsin.gov for the production version.
AB156-ASA1,9,5
1(b) Filing claims. Subject to the limitations provided in this subsection and in
2s. 234.46, for taxable years beginning after December 31, 2020, a claimant may claim
3as a credit against the taxes imposed under s. 71.23, up to the amount of the tax, the
4amount allocated to the claimant by the authority under s. 234.46 for each taxable
5year within the credit period.
AB156-ASA1,9,86 (c) Limitations. 1. No person may claim the credit under par. (b) unless the
7claimant includes with the claimant's return a copy of the allocation certificate
8issued for the qualified housing development.
AB156-ASA1,9,259 2. A partnership, limited liability company, or tax-option corporation may not
10claim the credit under this subsection. The partners of a partnership, members of
11a limited liability company, or shareholders in a tax-option corporation may claim
12the credit under this subsection based on eligible costs incurred by the partnership,
13limited liability company, or tax-option corporation. The partnership, limited
14liability company, or tax-option corporation shall calculate the amount of the credit
15that may be claimed by each partner, member, or shareholder and shall provide that
16information to each of them. Credits computed by a partnership or limited liability
17company may be claimed in proportion to the ownership interests of the partners or
18members or allocated to partners or members as provided in a written agreement
19among the partners or members that is entered into no later than the last day of the
20taxable year of the partnership or limited liability company for which the credit is
21claimed. Any partner or member who claims the credit as allocated by a written
22agreement shall provide a copy of the agreement with the tax return on which the
23credit is claimed. For shareholders of a tax-option corporation, the credit may be
24allocated in proportion to the ownership interest of each shareholder. A person
25claiming the credit as provided under this subdivision is solely responsible for any

1tax liability arising from a dispute with the department related to claiming the
2credit.
AB156-ASA1,10,53 3. No credit may be claimed under this subsection for the same costs for which
4a credit is claimed under sub. (6) or (8b) or s. 71.07 (8b), (9m), or (9r), 71.47 (6) or (8b),
5or 76.639.
AB156-ASA1,10,136 (d) Recapture. 1. As of the last day of any taxable year during the compliance
7period, if the qualified basis of a qualified housing development with respect to a
8claimant is less than the qualified basis as of the last day of the previous taxable year,
9the amount of the claimant's tax liability under this subchapter shall be increased
10by an amount equal to the excess of the aggregate credit claimed under this
11subsection in prior taxable years over the aggregate credit that would be claimed in
12those years if the full credit amount allocated to the claimant for the credit period
13was claimed ratably over 10 years.
AB156-ASA1,10,1914 2. Subdivision 1. does not apply if the reduction in qualified basis for the
15taxable year is by reason of a casualty loss if the loss is restored by reconstruction
16or replacement within a reasonable period; a minimal change in floor space; or the
17disposition of an interest in the qualified housing development if it is reasonably
18expected that the development will continue to be operated as a qualified housing
19development for the remainder of the compliance period.
AB156-ASA1,10,2220 3. In the event that the recapture of a credit is required in a taxable year, the
21taxpayer shall include the recaptured amount on the return submitted for the
22taxable year in which the recapture event is identified.
AB156-ASA1,10,2423 (e) Administration. Subsection (4) (e) to (h), as it applies to the credit under
24sub. (4), applies to the credit under this subsection.
AB156-ASA1,7 25Section 7 . 71.30 (3) (cu) of the statutes is created to read:
AB156-ASA1,11,1
171.30 (3) (cu) State workforce housing credit under s. 71.28 (8f).
AB156-ASA1,8 2Section 8. 71.34 (1k) (g) of the statutes is amended to read:
AB156-ASA1,11,63 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
4corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w),
5(3wm), (3y), (4), (5), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8f), and (10) and passed
6through to shareholders.
AB156-ASA1,9 7Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:
AB156-ASA1,11,148 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
9computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3w), (3y), (5e), (5g), (5i),
10(5j), (5k), (5r), (5rm), (6n), (8f), (9s), and (10) and not passed through by a partnership,
11limited liability company, or tax-option corporation that has added that amount to
12the partnership's, limited liability company's, or tax-option corporation's income
13under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47
14(1), (3), (3t), (4), (4m), and (5).
AB156-ASA1,10 15Section 10 . 71.47 (8f) of the statutes is created to read:
AB156-ASA1,11,1616 71.47 (8f) State workforce housing credit. (a) Definitions. In this subsection:
AB156-ASA1,11,2017 1. “Allocation certificate” means a statement issued by the authority certifying
18that a qualified housing development is eligible for a credit under this subsection and
19specifying the amount of the credit that the owners of the qualified housing
20development may claim for each taxable year of the credit period.
AB156-ASA1,11,2221 2. “Area median gross income” has the meaning as used for purposes of 26 USC
2242
.
AB156-ASA1,11,2423 3. “Authority” means the Wisconsin Housing and Economic Development
24Authority.
AB156-ASA1,12,2
14. “Claimant” means a person who has an ownership interest in a qualified
2housing development and who files a claim under this subsection.
AB156-ASA1,12,43 5. “Compliance period” means the 10-year period beginning with the first
4taxable year of the credit period.
AB156-ASA1,12,95 6. “Credit period” means the 6-year period beginning with the taxable year in
6which a qualified housing development is placed in service. For purposes of this
7subdivision, if a qualified housing development consists of more than one building,
8the qualified housing development is placed in service in the taxable year in which
9the last building is placed in service.
AB156-ASA1,12,2010 7. “Qualified basis” means the amount equal to the applicable fraction of the
11adjusted basis of the qualified housing development as of the close of the first taxable
12year of the credit period. The applicable fraction is the smaller of a fraction whose
13numerator is the number of qualified units in the qualified housing development and
14denominator is the total number of residential rental units in the qualified housing
15development or a fraction whose numerator is the total floor space of the qualified
16units in the qualified housing development and denominator is the total floor space
17of all the residential rental units in the qualified housing development. In
18calculating the applicable fraction, the number of qualified units and residential
19rental units and the amount of floor space shall be determined as of the close of the
20taxable year.
AB156-ASA1,12,2521 8. “Qualified housing development” means a residential rental property
22development located in this state if at least 25 percent of the development's
23residential rental units are rent-restricted units and occupied by individuals whose
24tenant income is at least 61 percent but not more than 100 percent of area median
25gross income.
AB156-ASA1,13,3
19. “Qualified unit” means a rent-restricted unit that is occupied by individuals
2whose tenant income is at least 61 percent but not more than 100 percent of area
3median gross income.
AB156-ASA1,13,74 10. “Rent-restricted unit” means a residential rental unit if the gross rent with
5respect to the unit does not exceed 30 percent of area median gross income,
6determined as if the unit is occupied by one individual in a unit without a separate
7bedroom and 1.5 individuals for each separate bedroom in any other unit.
AB156-ASA1,13,98 11. “Tenant income” means the income determined under 26 USC 142 (d) (2)
9(B) of individuals occupying a residential rental unit.
AB156-ASA1,13,1410 (b) Filing claims. Subject to the limitations provided in this subsection and in
11s. 234.46, for taxable years beginning after December 31, 2020, a claimant may claim
12as a credit against the taxes imposed under s. 71.43, up to the amount of the tax, the
13amount allocated to the claimant by the authority under s. 234.46 for each taxable
14year within the credit period.
AB156-ASA1,13,1715 (c) Limitations. 1. No person may claim the credit under par. (b) unless the
16claimant includes with the claimant's return a copy of the allocation certificate
17issued for the qualified housing development.
AB156-ASA1,14,1118 2. A partnership, limited liability company, or tax-option corporation may not
19claim the credit under this subsection. The partners of a partnership, members of
20a limited liability company, or shareholders in a tax-option corporation may claim
21the credit under this subsection based on eligible costs incurred by the partnership,
22limited liability company, or tax-option corporation. The partnership, limited
23liability company, or tax-option corporation shall calculate the amount of the credit
24that may be claimed by each partner, member, or shareholder and shall provide that
25information to each of them. Credits computed by a partnership or limited liability

1company may be claimed in proportion to the ownership interests of the partners or
2members or allocated to partners or members as provided in a written agreement
3among the partners or members that is entered into no later than the last day of the
4taxable year of the partnership or limited liability company for which the credit is
5claimed. Any partner or member who claims the credit as allocated by a written
6agreement shall provide a copy of the agreement with the tax return on which the
7credit is claimed. For shareholders of a tax-option corporation, the credit may be
8allocated in proportion to the ownership interest of each shareholder. A person
9claiming the credit as provided under this subdivision is solely responsible for any
10tax liability arising from a dispute with the department related to claiming the
11credit.
AB156-ASA1,14,1412 3. No credit may be claimed under this subsection for the same costs for which
13a credit is claimed under sub. (6) or (8b) or s. 71.07 (8b), (9m), or (9r), 71.28 (6) or (8b),
14or 76.639.
AB156-ASA1,14,2215 (d) Recapture. 1. As of the last day of any taxable year during the compliance
16period, if the qualified basis of a qualified housing development with respect to a
17claimant is less than the qualified basis as of the last day of the previous taxable year,
18the amount of the claimant's tax liability under this subchapter shall be increased
19by an amount equal to the excess of the aggregate credit claimed under this
20subsection in prior taxable years over the aggregate credit that would be claimed in
21those years if the full credit amount allocated to the claimant for the credit period
22was claimed ratably over 10 years.
AB156-ASA1,15,323 2. Subdivision 1. does not apply if the reduction in qualified basis for the
24taxable year is by reason of a casualty loss if the loss is restored by reconstruction
25or replacement within a reasonable period; a minimal change in floor space; or a

1disposition of an interest in the qualified housing development if it is reasonably
2expected that the development will continue to be operated as a qualified housing
3development for the remainder of the compliance period.
AB156-ASA1,15,64 3. In the event that the recapture of a credit is required in a taxable year, the
5taxpayer shall include the recaptured amount on the return submitted for the
6taxable year in which the recapture event is identified.
AB156-ASA1,15,87 (e) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
8s. 71.28 (4), applies to the credit under this subsection.
AB156-ASA1,11 9Section 11 . 71.49 (1) (cu) of the statutes is created to read:
AB156-ASA1,15,1010 71.49 (1) (cu) State workforce housing credit under s. 71.47 (8f).
AB156-ASA1,12 11Section 12. 76.639 (3) of the statutes is renumbered 76.639 (3) (a).
AB156-ASA1,13 12Section 13. 76.639 (3) (b) of the statutes is created to read:
AB156-ASA1,15,2013 76.639 (3) (b) An insurer that is a partner or member of a partnership or limited
14liability company that directly or indirectly owns a qualified development may claim
15the credit under sub. (2) in proportion to the insurer's percentage of ownership
16interest in the partnership or limited liability company or in accordance with the
17allocation of credits to the insurer pursuant to a written agreement among the
18partners or members of the partnership or limited liability company that is entered
19into no later than the last day of the taxable year of the partnership or limited
20liability company.
AB156-ASA1,14 21Section 14 . 76.6395 of the statutes is created to read:
AB156-ASA1,15,22 2276.6395 State workforce housing credit. (1) Definitions. In this section:
AB156-ASA1,16,223 (a) “Allocation certificate” means a statement issued by the authority certifying
24that a qualified housing development is eligible for a credit under this section and

1specifying the amount of the credit that the owners of the qualified housing
2development may claim for each taxable year of the credit period.
AB156-ASA1,16,43 (b) “Area median gross income” has the meaning as used for purposes of 26 USC
442
.
AB156-ASA1,16,65 (c) “Authority” means the Wisconsin Housing and Economic Development
6Authority.
AB156-ASA1,16,87 (d) “Claimant” means a person who has an ownership interest in a qualified
8housing development and who files a claim under this section.
AB156-ASA1,16,109 (e) “Compliance period” means the 10-year period beginning with the first
10taxable year of the credit period.
AB156-ASA1,16,1511 (f) “Credit period” means the 6-year period beginning with the taxable year in
12which a qualified housing development is placed in service. For purposes of this
13paragraph, if a qualified housing development consists of more than one building,
14the qualified housing development is placed in service in the taxable year in which
15the last building is placed in service.
AB156-ASA1,17,216 (g) “Qualified basis” means the amount equal to the applicable fraction of the
17adjusted basis of the qualified housing development as of the close of the first taxable
18year of the credit period. The applicable fraction is the smaller of a fraction whose
19numerator is the number of qualified units in the qualified housing development and
20denominator is the total number of residential rental units in the qualified housing
21development or a fraction whose numerator is the total floor space of the qualified
22units in the qualified housing development and denominator is the total floor space
23of all the residential rental units in the qualified housing development. In
24calculating the applicable fraction, the number of qualified units and residential

1rental units and the amount of floor space shall be determined as of the close of the
2taxable year.
AB156-ASA1,17,73 (h) “Qualified housing development” means a residential rental property
4development located in this state if at least 25 percent of the development's
5residential rental units are rent-restricted units and occupied by individuals whose
6tenant income is at least 61 percent but not more than 100 percent of area median
7gross income.
AB156-ASA1,17,108 (i) “Qualified unit” means a rent-restricted unit that is occupied by individuals
9whose tenant income is at least 61 percent but not more than 100 percent of area
10median gross income.
AB156-ASA1,17,1411 (j) “Rent-restricted unit” means a residential rental unit if the gross rent with
12respect to the unit does not exceed 30 percent of area median gross income,
13determined as if the unit is occupied by one individual in a unit without a separate
14bedroom and 1.5 individuals for each separate bedroom in any other unit.
AB156-ASA1,17,1615 (k) “Tenant income” means the income determined under 26 USC 142 (d) (2)
16(B) of individuals occupying a residential rental unit.
AB156-ASA1,17,21 17(2) Filing claims. Subject to the limitations provided in this section and in s.
18234.46, for taxable years beginning after December 31, 2020, a claimant may claim
19as a credit against the fees imposed under s. 76.60, 76.63, 76.65, 76.66, or 76.67 the
20amount allocated to the claimant by the authority under s. 234.46 for each taxable
21year within the credit period.
AB156-ASA1,17,24 22(3) Limitations. (a) No insurer may claim the credit under sub. (2) unless the
23claimant includes with the claimant's return a copy of the allocation certificate
24issued for the qualified housing development.
AB156-ASA1,18,7
1(b) An insurer that is a partner or member of a partnership or limited liability
2company that directly or indirectly owns a qualified housing development may claim
3the credit under sub. (2) in proportion to the insurer's percentage ownership interest
4in the partnership or limited liability company or in accordance with the allocation
5of credits to the insurer pursuant to a written agreement among the partners or
6members of the partnership or limited liability company that is entered into no later
7than the last day of the taxable year of the partnership or limited liability company.
AB156-ASA1,18,108 (c) No credit may be claimed under sub. (2) for the same costs for which a credit
9is claimed under s. 71.07 (8b), (9m), or (9r), 71.28 (6) or (8b), 71.47 (6) or (8b), or
1076.639.
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.
Loading...
Loading...