AB906,14,4 (d) “Claimant” means a person who has an ownership interest in a qualified housing development and who files a claim under this section.

AB906,14,6 (e) “Compliance period” means the 10-year period beginning with the first taxable year of the credit period.

AB906,14,11 (f) “Credit period” means the 6-year period beginning with the taxable year in which a qualified housing development is placed in service. For purposes of this paragraph, if a qualified housing development consists of more than one building, the qualified housing development is placed in service in the taxable year in which the last building is placed in service.

AB906,14,22 (g) “Qualified basis” means the amount equal to the applicable fraction of the adjusted basis of the qualified housing development as of the close of the first taxable year of the credit period. The applicable fraction is the smaller of a fraction whose numerator is the number of qualified units in the qualified housing development and denominator is the total number of residential rental units in the qualified housing development or a fraction whose numerator is the total floor space of the qualified units in the qualified housing development and denominator is the total floor space of all the residential rental units in the qualified housing development. In calculating the applicable fraction, the number of qualified units and residential rental units and the amount of floor space shall be determined as of the close of the taxable year.

AB906,15,2 (h) “Qualified housing development” means a residential rental property development located in this state if at least 25 percent of the residential rental units are rent-restricted units and occupied by individuals whose tenant income is at least 61 percent but not more than 100 percent of area median gross income.

AB906,15,5 (i) “Qualified unit” means a rent-restricted unit that is occupied by individuals whose tenant income is at least 61 percent but not more than 100 percent of area median gross income.

AB906,15,9 (j) “Rent-restricted unit” means a residential rental unit if the gross rent with respect to the unit does not exceed 30 percent of area median gross income, determined as if the unit is occupied by one individual in a unit without a separate bedroom and 1.5 individuals for each separate bedroom in any other unit.

AB906,15,11 (k) “Tenant income” means the income determined under 26 USC 142 (d) (2) (B) of individuals occupying a residential rental unit.

AB906,15,16 (2) Filing claims. Subject to the limitations provided in this section and in s. 234.46, for taxable years beginning after December 31, 2019, a claimant may claim as a credit against the fees imposed under s. 76.60, 76.63, 76.65, 76.66, or 76.67 the amount allocated to the claimant by the authority under s. 234.46 for each taxable year within the credit period.

AB906,15,19 (3) Limitations. No insurer may claim the credit under sub. (2) unless the claimant includes with the claimant's return a copy of the allocation certificate issued for the qualified housing development.

AB906,16,3 (4) Recapture. (a) As of the last day of any taxable year during the compliance period, if the qualified basis of a qualified housing development with respect to a claimant is less than the qualified basis as of the last day of the previous taxable year, the amount of the claimant's tax liability under s. 76.60, 76.63, 76.65, 76.66, or 76.67 shall be increased by an amount equal to the excess of the aggregate credit claimed under this section in prior taxable years over the aggregate credit that would be claimed in those years if the full credit amount allocated to the claimant for the credit period was claimed ratably over 10 years, plus interest at the overpayment rate established under 26 USC 6621.

AB906,16,9 (b) Paragraph (a) does not apply if the reduction in qualified basis for the taxable year is by reason of a casualty loss if the loss is restored by reconstruction or replacement within a reasonable period; a de minimis change in floor space; or a disposition of an interest in the qualified housing development if it is reasonably expected that the development will continue to be operated as a qualified housing development for the remainder of the compliance period.

AB906,16,12 (c) In the event that the recapture of a credit is required in a taxable year, the taxpayer shall include the recaptured amount of the credit on the return submitted for the taxable year in which the recapture event is identified.

AB906,16,13 (d) The department shall promulgate rules to implement this subsection.

AB906,16,19 (5) Carry-forward. If the credit under sub. (2) is not entirely offset against the fees under s. 76.60, 76.63, 76.65, 76.66, or 76.67 otherwise due, the unused balance may be carried forward and credited against those fees for the following 15 years to the extent that it is not offset by those fees otherwise due in all the years between the year in which the expense was made and the year in which the carry-forward credit is claimed.

AB906,8 Section 8. 76.67 (2) of the statutes is amended to read:

AB906,17,6 76.67 (2) If any domestic insurer is licensed to transact insurance business in another state, this state may not require similar insurers domiciled in that other state to pay taxes greater in the aggregate than the aggregate amount of taxes that a domestic insurer is required to pay to that other state for the same year less the credits under ss. 76.635, 76.636, 76.637, 76.638, 76.639, 76.6395, and 76.655, except that the amount imposed shall not be less than the total of the amounts due under ss. 76.65 (2) and 601.93 and, if the insurer is subject to s. 76.60, 0.375 percent of its gross premiums, as calculated under s. 76.62, less offsets allowed under s. 646.51 (7) or under ss. 76.635, 76.636, 76.637, 76.638, 76.639, 76.6395, and 76.655 against that total, and except that the amount imposed shall not be less than the amount due under s. 601.93.

AB906,9 Section 9 . 234.46 of the statutes is created to read:

AB906,17,9 234.46 State workforce housing tax credits. (1) Definitions. In this section:

AB906,17,13 (a) “Allocation certificate” means a statement issued by the authority certifying that a qualified housing development is eligible for a credit under this section and specifying the amount of the credit that the owners of the qualified housing development may claim for each taxable year of the credit period.

AB906,17,15 (b) “Area median gross income” has the meaning as used for purposes of 26 USC 42.

AB906,17,17 (c) “Compliance period” means the 10-year period beginning with the first taxable year of the credit period.

AB906,17,22 (d) “Credit period” means the 6-year period beginning with the taxable year in which a qualified housing development is placed in service. For purposes of this paragraph, if a qualified housing development consists of more than one building, the qualified housing development is placed in service in the taxable year in which the last building is placed in service.

AB906,18,2 (e) “Qualified housing development” means a residential rental property development located in this state if at least 25 percent of the development's residential rental units are rent-restricted units and occupied by individuals whose tenant income is at least 61 percent but not more than 100 percent of area median gross income.

AB906,18,5 (f) “Qualified unit” means a rent-restricted unit that is occupied by individuals whose tenant income is at least 61 percent but not more than 100 percent of area median gross income.

AB906,18,9 (g) “Rent-restricted unit” means a residential rental unit if the gross rent with respect to the unit does not exceed 30 percent of area median gross income, determined as if the unit is occupied by one individual in a unit without a separate bedroom and 1.5 individuals for each separate bedroom in any other unit.

AB906,18,11 (h) “State tax credit” means a tax credit under s. 71.07 (8f), 71.28 (8f), 71.47 (8f), or 76.6395.

AB906,18,13 (i) “Tenant income” means the income determined under 26 USC 142 (d) (2) (B) of individuals occupying a residential rental unit.

AB906,18,16 (2) Establishment of program. The authority shall establish a program to certify persons to claim state tax credits, in amounts determined by the authority, under this section.