SB172-SSA1,16,43 (b) “Area median gross income” has the meaning as used for purposes of 26 USC
442
.
SB172-SSA1,16,65 (c) “Authority” means the Wisconsin Housing and Economic Development
6Authority.
SB172-SSA1,16,87 (d) “Claimant” means a person who has an ownership interest in a qualified
8housing development and who files a claim under this section.
SB172-SSA1,16,109 (e) “Compliance period” means the 10-year period beginning with the first
10taxable year of the credit period.
SB172-SSA1,16,1511 (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.
SB172-SSA1,17,216 (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.
SB172-SSA1,17,73 (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.
SB172-SSA1,17,108 (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.
SB172-SSA1,17,1411 (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.
SB172-SSA1,17,1615 (k) “Tenant income” means the income determined under 26 USC 142 (d) (2)
16(B) of individuals occupying a residential rental unit.
SB172-SSA1,17,21 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.
SB172-SSA1,17,24 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.
SB172-SSA1,18,7
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.
SB172-SSA1,18,108 (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.
SB172-SSA1,18,18 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.
SB172-SSA1,18,2419 (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.
SB172-SSA1,19,3
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.
SB172-SSA1,19,9 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.
SB172-SSA1,15 10Section 15. 76.67 (2) of the statutes is amended to read:
SB172-SSA1,19,2111 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.
SB172-SSA1,16 22Section 16 . 234.46 of the statutes is created to read:
SB172-SSA1,19,24 23234.46 State workforce housing tax credits. (1) Definitions. In this
24section:
SB172-SSA1,20,4
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.
SB172-SSA1,20,65 (b) “Area median gross income” has the meaning as used for purposes of 26 USC
642
.
SB172-SSA1,20,117 (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.
SB172-SSA1,20,1612 (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.
SB172-SSA1,20,1917 (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.
SB172-SSA1,20,2320 (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.
SB172-SSA1,20,2524 (g) “State tax credit” means a tax credit under s. 71.07 (8f), 71.28 (8f), 71.47 (8f),
25or 76.6395.