AB156,9,1816
3. In the event that the recapture of a credit is required in a taxable year, the
17taxpayer shall include the recaptured amount on the return submitted for the
18taxable year in which the recapture event is identified.
AB156,9,1919
4. The department shall promulgate rules to implement this paragraph.
AB156,9,2120
(e)
Administration. Subsection (4) (e) to (h), as it applies to the credit under
21sub. (4), applies to the credit under this subsection.
AB156,4
22Section 4
. 71.30 (3) (cu) of the statutes is created to read:
AB156,9,2323
71.30
(3) (cu) State workforce housing credit under s. 71.28 (8f).
AB156,5
24Section 5
. 71.47 (8f) of the statutes is created to read:
AB156,9,2525
71.47
(8f) State workforce housing credit. (a)
Definitions. In this subsection:
AB156,10,4
11. “Allocation certificate” means a statement issued by the authority certifying
2that a qualified housing development is eligible for a credit under this subsection 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.
AB156,10,65
2. “Area median gross income” has the meaning as used for purposes of
26 USC
642.
AB156,10,87
3. “Authority” means the Wisconsin Housing and Economic Development
8Authority.
AB156,10,109
4. “Claimant” means a person who has an ownership interest in a qualified
10housing development and who files a claim under this subsection.
AB156,10,1211
5. “Compliance period” means the 10-year period beginning with the first
12taxable year of the credit period.
AB156,10,1713
6. “Credit period” means the 6-year period beginning with the taxable year in
14which a qualified housing development is placed in service. For purposes of this
15subdivision, if a qualified housing development consists of more than one building,
16the qualified housing development is placed in service in the taxable year in which
17the last building is placed in service.
AB156,11,318
7. “Qualified basis” means the amount equal to the applicable fraction of the
19adjusted basis of the qualified housing development as of the close of the first taxable
20year of the credit period. The applicable fraction is the smaller of a fraction whose
21numerator is the number of qualified units in the qualified housing development and
22denominator is the total number of residential rental units in the qualified housing
23development or a fraction whose numerator is the total floor space of the qualified
24units in the qualified housing development and denominator is the total floor space
25of all the residential rental units in the qualified housing development. In
1calculating the applicable fraction, the number of qualified units and residential
2rental units and the amount of floor space shall be determined as of the close of the
3taxable year.
AB156,11,84
8. “Qualified housing development” means a residential rental property
5development located in this state if at least 25 percent of the development's
6residential rental units are rent-restricted units and occupied by individuals whose
7tenant income is at least 61 percent but not more than 100 percent of area median
8gross income.
AB156,11,119
9. “Qualified unit” means a rent-restricted unit that is occupied by individuals
10whose tenant income is at least 61 percent but not more than 100 percent of area
11median gross income.
AB156,11,1512
10. “Rent-restricted unit” means a residential rental unit if the gross rent with
13respect to the unit does not exceed 30 percent of area median gross income,
14determined as if the unit is occupied by one individual in a unit without a separate
15bedroom and 1.5 individuals for each separate bedroom in any other unit.
AB156,11,1716
11. “Tenant income” means the income determined under
26 USC 142 (d) (2)
17(B) of individuals occupying a residential rental unit.
AB156,11,2218
(b)
Filing claims. Subject to the limitations provided in this subsection and in
19s. 234.46, for taxable years beginning after December 31, 2020, a claimant may claim
20as a credit against the taxes imposed under s. 71.43, up to the amount of the tax, the
21amount allocated to the claimant by the authority under s. 234.46 for each taxable
22year within the credit period.
AB156,11,2523
(c)
Limitations. 1. No person may claim the credit under par. (b) unless the
24claimant includes with the claimant's return a copy of the allocation certificate
25issued for the qualified housing development.
AB156,12,19
12. A partnership, limited liability company, or tax-option corporation may not
2claim the credit under this subsection. The partners of a partnership, members of
3a limited liability company, or shareholders in a tax-option corporation may claim
4the credit under this subsection based on eligible costs incurred by the partnership,
5limited liability company, or tax-option corporation. The partnership, limited
6liability company, or tax-option corporation shall calculate the amount of the credit
7that may be claimed by each partner, member, or shareholder and shall provide that
8information to each of them. Credits computed by a partnership or limited liability
9company may be claimed in proportion to the ownership interests of the partners or
10members or allocated to partners or members as provided in a written agreement
11among the partners or members that is entered into no later than the last day of the
12taxable year of the partnership or limited liability company for which the credit is
13claimed. Any partner or member who claims the credit as allocated by a written
14agreement shall provide a copy of the agreement with the tax return on which the
15credit is claimed. For shareholders of a tax-option corporation, the credit may be
16allocated in proportion to the ownership interest of each shareholder. A person
17claiming the credit as provided under this subdivision is solely responsible for any
18tax liability arising from a dispute with the department related to claiming the
19credit.
AB156,13,320
(d)
Recapture. 1. As of the last day of any taxable year during the compliance
21period, if the qualified basis of a qualified housing development with respect to a
22claimant is less than the qualified basis as of the last day of the previous taxable year,
23the amount of the claimant's tax liability under this subchapter shall be increased
24by an amount equal to the excess of the aggregate credit claimed under this
25subsection in prior taxable years over the aggregate credit that would be claimed in
1those years if the full credit amount allocated to the claimant for the credit period
2was claimed ratably over 10 years, plus interest at the overpayment rate established
3under
26 USC 6621.
AB156,13,94
2. Subdivision 1. does not apply if the reduction in qualified basis for the
5taxable year is by reason of a casualty loss if the loss is restored by reconstruction
6or replacement within a reasonable period; a minimal change in floor space; or a
7disposition of an interest in the qualified housing development if it is reasonably
8expected that the development will continue to be operated as a qualified housing
9development for the remainder of the compliance period.
AB156,13,1210
3. In the event that the recapture of a credit is required in a taxable year, the
11taxpayer shall include the recaptured amount on the return submitted for the
12taxable year in which the recapture event is identified.
AB156,13,1313
4. The department shall promulgate rules to implement this paragraph.
AB156,13,1514
(e)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
15s. 71.28 (4), applies to the credit under this subsection.
AB156,6
16Section 6
. 71.49 (1) (cu) of the statutes is created to read:
AB156,13,1717
71.49
(1) (cu) State workforce housing credit under s. 71.47 (8f).
AB156,7
18Section 7
. 76.6395 of the statutes is created to read:
AB156,13,19
1976.6395 State workforce housing credit. (1)
Definitions. In this section:
AB156,13,2320
(a) “Allocation certificate” means a statement issued by the authority certifying
21that a qualified housing development is eligible for a credit under this section and
22specifying the amount of the credit that the owners of the qualified housing
23development may claim for each taxable year of the credit period.
AB156,13,2524
(b) “Area median gross income” has the meaning as used for purposes of
26 USC
2542.
AB156,14,2
1(c) “Authority” means the Wisconsin Housing and Economic Development
2Authority.
AB156,14,43
(d) “Claimant” means a person who has an ownership interest in a qualified
4housing development and who files a claim under this section.
AB156,14,65
(e) “Compliance period” means the 10-year period beginning with the first
6taxable year of the credit period.
AB156,14,117
(f) “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.
AB156,14,2212
(g) “Qualified basis” means the amount equal to the applicable fraction of the
13adjusted basis of the qualified housing development as of the close of the first taxable
14year of the credit period. The applicable fraction is the smaller of a fraction whose
15numerator is the number of qualified units in the qualified housing development and
16denominator is the total number of residential rental units in the qualified housing
17development or a fraction whose numerator is the total floor space of the qualified
18units in the qualified housing development and denominator is the total floor space
19of all the residential rental units in the qualified housing development. In
20calculating the applicable fraction, the number of qualified units and residential
21rental units and the amount of floor space shall be determined as of the close of the
22taxable year.
AB156,15,223
(h) “Qualified housing development” means a residential rental property
24development located in this state if at least 25 percent of the development's
25residential rental units are rent-restricted units and occupied by individuals whose
1tenant income is at least 61 percent but not more than 100 percent of area median
2gross income.
AB156,15,53
(i) “Qualified unit” means a rent-restricted unit that is occupied by individuals
4whose tenant income is at least 61 percent but not more than 100 percent of area
5median gross income.
AB156,15,96
(j) “Rent-restricted unit” means a residential rental unit if the gross rent with
7respect to the unit does not exceed 30 percent of area median gross income,
8determined as if the unit is occupied by one individual in a unit without a separate
9bedroom and 1.5 individuals for each separate bedroom in any other unit.
AB156,15,1110
(k) “Tenant income” means the income determined under
26 USC 142 (d) (2)
11(B) of individuals occupying a residential rental unit.
AB156,15,16
12(2) Filing claims. Subject to the limitations provided in this section and in s.
13234.46, for taxable years beginning after December 31, 2020, a claimant may claim
14as a credit against the fees imposed under s. 76.60, 76.63, 76.65, 76.66, or 76.67 the
15amount allocated to the claimant by the authority under s. 234.46 for each taxable
16year within the credit period.
AB156,15,19
17(3) Limitations. (a) No insurer may claim the credit under sub. (2) unless the
18claimant includes with the claimant's return a copy of the allocation certificate
19issued for the qualified housing development.
AB156,16,220
(b) An insurer that is a partner or member of a partnership or limited liability
21company that directly or indirectly owns a qualified housing development may claim
22the credit under sub. (2) in proportion to the insurer's percentage ownership interest
23in the partnership or limited liability company or in accordance with the allocation
24of credits to the insurer pursuant to a written agreement among the partners or
1members of the partnership or limited liability company that is entered into no later
2than the last day of the taxable year of the partnership or limited liability company.
AB156,16,11
3(4) Recapture. (a) As of the last day of any taxable year during the compliance
4period, if the qualified basis of a qualified housing development with respect to a
5claimant is less than the qualified basis as of the last day of the previous taxable year,
6the amount of the claimant's tax liability under s. 76.60, 76.63, 76.65, 76.66, or 76.67
7shall be increased by an amount equal to the excess of the aggregate credit claimed
8under this section in prior taxable years over the aggregate credit that would be
9claimed in those years if the full credit amount allocated to the claimant for the credit
10period was claimed ratably over 10 years, plus interest at the overpayment rate
11established under
26 USC 6621.
AB156,16,1712
(b) Paragraph (a) does not apply if the reduction in qualified basis for the
13taxable year is by reason of a casualty loss if the loss is restored by reconstruction
14or replacement within a reasonable period; a minimal change in floor space; or a
15disposition of an interest in the qualified housing development if it is reasonably
16expected that the development will continue to be operated as a qualified housing
17development for the remainder of the compliance period.
AB156,16,2018
(c) In the event that the recapture of a credit is required in a taxable year, the
19taxpayer shall include the recaptured amount of the credit on the return submitted
20for the taxable year in which the recapture event is identified.
AB156,16,2121
(d) The department shall promulgate rules to implement this subsection.
AB156,17,2
22(5) Carry-forward. If the credit under sub. (2) is not entirely offset against the
23fees under s. 76.60, 76.63, 76.65, 76.66, or 76.67 otherwise due, the unused balance
24may be carried forward and credited against those fees for the following 15 years to
25the extent that it is not offset by those fees otherwise due in all the years between
1the year in which the expense was made and the year in which the carry-forward
2credit is claimed.
AB156,8
3Section
8. 76.67 (2) of the statutes is amended to read:
AB156,17,144
76.67
(2) If any domestic insurer is licensed to transact insurance business in
5another state, this state may not require similar insurers domiciled in that other
6state to pay taxes greater in the aggregate than the aggregate amount of taxes that
7a domestic insurer is required to pay to that other state for the same year less the
8credits under ss. 76.635, 76.636, 76.637, 76.638,
76.639, 76.6395, and 76.655, except
9that the amount imposed shall not be less than the total of the amounts due under
10ss. 76.65 (2) and 601.93 and, if the insurer is subject to s. 76.60, 0.375 percent of its
11gross premiums, as calculated under s. 76.62, less offsets allowed under s. 646.51 (7)
12or under ss. 76.635, 76.636, 76.637, 76.638, 76.639,
76.6395, and 76.655 against that
13total, and except that the amount imposed shall not be less than the amount due
14under s. 601.93.
AB156,9
15Section 9
. 234.46 of the statutes is created to read:
AB156,17,17
16234.46 State workforce housing tax credits. (1)
Definitions. In this
17section:
AB156,17,2118
(a) “Allocation certificate” means a statement issued by the authority certifying
19that a qualified housing development is eligible for a credit under this section and
20specifying the amount of the credit that the owners of the qualified housing
21development may claim for each taxable year of the credit period.
AB156,17,2322
(b) “Area median gross income” has the meaning as used for purposes of
26 USC
2342.
AB156,17,2524
(c) “Compliance period” means the 10-year period beginning with the first
25taxable year of the credit period.
AB156,18,5
1(d) “Credit period” means the 6-year period beginning with the taxable year
2in which a qualified housing development is placed in service. For purposes of this
3paragraph, if a qualified housing development consists of more than one building,
4the qualified housing development is placed in service in the taxable year in which
5the last building is placed in service.
AB156,18,106
(e) “Qualified housing development” means a residential rental property
7development located in this state if at least 25 percent of the development's
8residential rental units are rent-restricted units and occupied by individuals whose
9tenant income is at least 61 percent but not more than 100 percent of area median
10gross income.
AB156,18,1311
(f) “Qualified unit” means a rent-restricted unit that is occupied by individuals
12whose tenant income is at least 61 percent but not more than 100 percent of area
13median gross income.
AB156,18,1714
(g) “Rent-restricted unit” means a residential rental unit if the gross rent with
15respect to the unit does not exceed 30 percent of area median gross income,
16determined as if the unit is occupied by one individual in a unit without a separate
17bedroom and 1.5 individuals for each separate bedroom in any other unit.
AB156,18,1918
(h) “State tax credit” means a tax credit under s. 71.07 (8f), 71.28 (8f), 71.47 (8f),
19or 76.6395.
AB156,18,2120
(i) “Tenant income” means the income determined under
26 USC 142 (d) (2) (B)
21of individuals occupying a residential rental unit.
AB156,18,24
22(2) Establishment of program. The authority shall establish a program to
23certify persons to claim state tax credits, in amounts determined by the authority,
24under this section.
AB156,19,12
1(3) Certification. The authority may certify a person to claim a state tax credit
2by issuing the person an allocation certificate for the qualified housing development.
3The allocation certificate shall state the amount the authority determines the person
4is eligible to claim for each year of the credit period, the name and address of the
5person, the person's Wisconsin tax identification number, and any other information
6required by the authority or the department of revenue. The authority shall provide
7a copy of the allocation certificate to the department of revenue. The authority shall
8issue allocation certificates annually, on a rolling basis, based on eligibility, as
9determined by the authority, except that the authority may develop a competitive
10process to award allocation certificates as a part of its qualified allocation plan under
11sub. (4). The authority may issue an allocation certificate under this subsection only
12if all of the following conditions are satisfied:
AB156,19,1413
(a) The allocation certificate is issued to a person who has an ownership
14interest in the qualified housing development.
AB156,19,1615
(b) The state tax credit is necessary for the financial feasibility of the qualified
16housing development.
AB156,19,2217
(c) The qualified housing development is the subject of a recorded restrictive
18covenant requiring that, for the compliance period or for a longer period agreed to
19by the authority and the owner of the qualified housing development, the
20development shall be maintained and operated as a qualified housing development
21and shall be in compliance with Title VIII of the federal Civil Rights Act of 1968, as
22amended.
AB156,19,2423
(d) The allocation certificate is issued in accordance with the authority's
24qualified allocation plan under sub. (4).
AB156,20,10
1(4) Allocation plan. The authority shall develop a qualified allocation plan
2that sets forth selection criteria to determine housing priorities for individuals
3whose income is at least 61 percent but not more 100 percent of area median gross
4income. The housing priorities shall be appropriate for local conditions. The
5selection criteria shall include project location, housing needs characteristics,
6project characteristics, sponsor characteristics, tenant populations with special
7housing needs, tenant populations of individuals with children, projects intended for
8eventual tenant ownership, the energy efficiency of the project, and the historic
9nature of the project. The plan shall include procedures to monitor noncompliance
10with this section and with habitability standards.
AB156,20,17
11(5) Allocation limits. In any calendar year, the aggregate amount of all state
12tax credits for which the authority certifies persons in allocation certificates issued
13under sub. (3) in that year may not exceed $42,000,000, including all amounts each
14person is eligible to claim for each year of the credit period, plus the total amount of
15all unallocated state tax credits from previous calendar years and plus the total
16amount of all previously allocated state tax credits that have been revoked, canceled,
17or otherwise recovered by the authority.
AB156,20,20
18(6) Preference for smaller municipalities. In issuing allocation certificates
19under sub. (3), the authority shall give preference to qualified housing developments
20located in a city, village, or town with a population of fewer than 150,000.
AB156,20,22
21(7) Report. No later than December 31 of each year, the authority shall submit
22a report to the legislature under s. 13.172 (2) that includes all of the following:
AB156,21,323
(a) A description of each qualified housing development for which the authority
24issued an allocation certificate that year, including the development's geographic
25location, the household type and any specific demographic information available
1concerning the residents intended to be served by the development, the income levels
2of residents intended to be served by the development, and the rents or set-asides
3authorized for the development.
AB156,21,84
(b) An analysis of housing market and demographic information that shows
5how the qualified housing developments for which the authority has issued
6allocation certificates at any time are addressing the need for affordable housing
7within the communities the developments are intended to serve and an analysis of
8remaining disparities in the affordability of housing within those communities.
AB156,21,11
9(8) Policies and procedures. The authority, in consultation with the
10department of revenue, shall establish policies and procedures to administer this
11section.