AB156,7,1410
8. “Qualified housing development” means a residential rental property
11development located in this state if at least 25 percent of the development's
12residential rental units are rent-restricted units and occupied by individuals whose
13tenant income is at least 61 percent but not more than 100 percent of area median
14gross income.
AB156,7,1715
9. “Qualified unit” means a rent-restricted unit that is occupied by individuals
16whose tenant income is at least 61 percent but not more than 100 percent of area
17median gross income.
AB156,7,2118
10. “Rent-restricted unit” means a residential rental unit if the gross rent with
19respect to the unit does not exceed 30 percent of area median gross income,
20determined as if the unit is occupied by one individual in a unit without a separate
21bedroom and 1.5 individuals for each separate bedroom in any other unit.
AB156,7,2322
11. “Tenant income” means the income determined under
26 USC 142 (d) (2)
23(B) of individuals occupying a residential rental unit.
AB156,8,324
(b)
Filing claims. Subject to the limitations provided in this subsection and in
25s. 234.46, for taxable years beginning after December 31, 2020, a claimant may claim
1as a credit against the taxes imposed under s. 71.23, up to the amount of the tax, the
2amount allocated to the claimant by the authority under s. 234.46 for each taxable
3year within the credit period.
AB156,8,64
(c)
Limitations. 1. No person may claim the credit under par. (b) unless the
5claimant includes with the claimant's return a copy of the allocation certificate
6issued for the qualified housing development.
AB156,8,257
2. A partnership, limited liability company, or tax-option corporation may not
8claim the credit under this subsection. The partners of a partnership, members of
9a limited liability company, or shareholders in a tax-option corporation may claim
10the credit under this subsection based on eligible costs incurred by the partnership,
11limited liability company, or tax-option corporation. The partnership, limited
12liability company, or tax-option corporation shall calculate the amount of the credit
13that may be claimed by each partner, member, or shareholder and shall provide that
14information to each of them. Credits computed by a partnership or limited liability
15company may be claimed in proportion to the ownership interests of the partners or
16members or allocated to partners or members as provided in a written agreement
17among the partners or members that is entered into no later than the last day of the
18taxable year of the partnership or limited liability company for which the credit is
19claimed. Any partner or member who claims the credit as allocated by a written
20agreement shall provide a copy of the agreement with the tax return on which the
21credit is claimed. For shareholders of a tax-option corporation, the credit may be
22allocated in proportion to the ownership interest of each shareholder. A person
23claiming the credit as provided under this subdivision is solely responsible for any
24tax liability arising from a dispute with the department related to claiming the
25credit.
AB156,9,9
1(d)
Recapture. 1. As of the last day of any taxable year during the compliance
2period, if the qualified basis of a qualified housing development with respect to a
3claimant is less than the qualified basis as of the last day of the previous taxable year,
4the amount of the claimant's tax liability under this subchapter shall be increased
5by an amount equal to the excess of the aggregate credit claimed under this
6subsection in prior taxable years over the aggregate credit that would be claimed in
7those years if the full credit amount allocated to the claimant for the credit period
8was claimed ratably over 10 years, plus interest at the overpayment rate established
9under
26 USC 6621.
AB156,9,1510
2. Subdivision 1. does not apply if the reduction in qualified basis for the
11taxable year is by reason of a casualty loss if the loss is restored by reconstruction
12or replacement within a reasonable period; a minimal change in floor space; or the
13disposition of an interest in the qualified housing development if it is reasonably
14expected that the development will continue to be operated as a qualified housing
15development for the remainder of the compliance period.
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.