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- 2024 LEGISLATURE LRBa0048/1 JK&MDE:amn SENATE AMENDMENT 1, TO SENATE BILL 40 March 16, 2023 - Offered by Senator EYEN.
- 2024 LEGISLATURE LRB-1587/1 JK&MDE:cdc SENATE BILL 40 February 3, 2023 - Introduced by Senators F EYEN and Q UINN, cosponsored by Representatives A RMSTRONG , KURTZ, A LLEN, DITTRICH, EDMING , GREEN , K ITCHENS, MAGNAFIC, MURPHY, MURSAU , NOVAK, NYDER , PIROS, USLER and VANDER M EER.
At the locations indicated, amend the bill as follows:
Referred to Committee on Housing, Rural Issues and Forestry.
1.
A N A CT to renumber 76.639 (3);
Page 2, line 1:
to amend 71.07 (8b) (e), 71.28 (8b) (e), 71.47 (8b) (e), 76.639 (5), 76.67 (2), 234.45 (1) (e) and 234.45 (4);
delete lines 1 to 21 and substitute:
and to create 76.639 (3) (b), 234.45 (1) (em) and 234.45 (5m) of the statutes;
“S ECTION 1b.
relating to:
71.07 (8b) (c) 2.
changes to the low-income housing tax credit.
of the statutes is amended to read:
Analysis by the Legislative Reference Bureau Under current law, the Wisconsin Housing and Economic Development Authority administers a low-income housing tax credit program.
71.07 (8b) (c) 2.
Under that program, a person may claim as a credit against the person's income or franchise tax liability, or against the person's liability for fees imposed on an insurer, the amount allocated by WHEDA in an “allocation certificate” for a qualified low-income housing project.
A partnership, limited liability company, or tax-option corporation may not claim the credit under this subsection.
The annual amount of tax credits WHEDA certifies under the program may not exceed $42,000,000.
The partners of a partnership, members of a limited liability company, or shareholders in a tax-option corporation may claim the credit under this subsection based on eligible costs incurred by the partnership, limited liability company, or tax-option corporation.
The bill increases that annual cap to $100,000,000.
The partnership, limited liability company, or tax-option corporation shall calculate the amount of the credit that may be claimed by each partner, member, or shareholder and shall provide that information to the partner, member, or shareholder.
The bill also requires that WHEDA, if possible, ensure that at least 35 percent of the tax credits it allocates each year under the program are for qualified low-income housing projects in rural areas in Wisconsin and removes the requirement that a qualified low-income housing project be financed with tax-exempt bonds.
For shareholders of a tax-option corporation, the credit may be allocated in proportion to the ownership interest of each shareholder.
Finally, the bill makes a technical change to the credit for insurers so that an insurer who is a shareholder of a tax-option corporation, a partner of a partnership, or a member of a limited liability company may claim the credit.
Credits LRBa0048/1 - 2024 Legislature - 2 - JK&MDE:amn computed by a partnership or limited liability company may be claimed in proportion to the ownership interests of the partners or members or allocated to partners or members as provided in a written agreement among the partners or members that is entered into no later than the last day of the taxable year of the partnership or limited liability company, for which the credit is claimed.
- 2024 Legislature - 2 - LRB-1587/1 JK&MDE:cdc SENATE BILL 40 For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
Any partner or member who claims the credit as allocated by a written agreement shall provide a copy of the agreement with the tax return on which the credit is claimed.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
A Except as provided in s.
S ECTION 1.
71.745, a person claiming the credit as provided under this subdivision is solely responsible for any tax liability arising from a dispute with the department of revenue related to claiming the credit.
71.07 (8b) (e) of the statutes is amended to read:
S ECTION 1d.
71.07 (8b) (e) Administration.
71.28 (8b) (c) 2.
Section 71.28 (4) (e) to (h), as it applies to the credit under s.
of the statutes is amended to read:
71.28 (4), applies to the credit under this subsection.
71.28 (8b) (c) 2.
In addition, if a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried back and credited against Wisconsin income or franchise taxes otherwise due for the previous taxable year.
A partnership, limited liability company, or tax-option corporation may not claim the credit under this subsection.
S ECTION 2.
The partners of a partnership, members of a limited liability company, or shareholders in a tax-option corporation may claim the credit under this subsection based on eligible costs incurred by the partnership, limited liability company, or tax-option corporation.
71.28 (8b) (e) of the statutes is amended to read:
The partnership, limited liability company, or tax-option corporation shall calculate the amount of the credit that may be claimed by each partner, member, or shareholder and shall provide that information to the partner, member, or shareholder.
71.28(8b) (e) Administration.
For shareholders of a tax-option corporation, the credit may be allocated in proportion to the ownership interest of each shareholder.
Subsection (4) (e) to (h), as it applies to the credit under sub.
Credits computed by a partnership or limited liability company may be claimed in proportion to the ownership interests of the partners or members or allocated to partners or members as provided in a written agreement among the partners or members that is entered into no later than the last day of the taxable year of the partnership or LRBa0048/1 - 2024 Legislature - 3 - JK&MDE:amn limited liability company, for which the credit is claimed.
(4), applies to the credit under this subsection.
Any partner or member who claims the credit as allocated by a written agreement shall provide a copy of the agreement with the tax return on which the credit is claimed.
In addition, if a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried back and credited against Wisconsin income or franchise taxes otherwise due for the previous taxable year.
A Except as provided in s.
S ECTION 3.
71.745, a person claiming the credit as provided under this subdivision is solely responsible for any tax liability arising from a dispute with the department of revenue related to claiming the credit.
71.47 (8b) (e) of the statutes is amended to read:
SECTION 2d.
71.47 (8b) (e) Administration.
71.47 (8b) (c) 2.
Section 71.28 (4) (e) to (h), as it applies to the credit under s.
of the statutes is amended to read:
71.28 (4), applies to the credit under this subsection.
71.47 (8b) (c) 2.
In addition, if a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried back and credited against Wisconsin income or franchise taxes otherwise due for the previous taxable year.
A partnership, limited liability company, or tax-option corporation may not claim the credit under this subsection.
LRB-1587/1 - 2024 Legislature - 3 - JK&MDE:cdc SECTION 4 SENATE BILL 40 SECTION 4.
The partners of a partnership, members of a limited liability company, or shareholders in a tax-option corporation may claim the credit under this subsection based on eligible costs incurred by the partnership, limited liability company, or tax-option corporation.
76.639 (3) of the statutes is renumbered 76.639 (3) (a).
The partnership, limited liability company, or tax-option corporation shall calculate the amount of the credit that may be claimed by each partner, member, or shareholder and shall provide that information to the partner, member, or shareholder.
SECTION 5.
For shareholders of a tax-option corporation, the credit may be allocated in proportion to the ownership interest of each shareholder.
76.639 (3) (b) of the statutes is created to read:
Credits computed by a partnership or limited liability company may be claimed in proportion to the ownership interests of the partners or members or allocated to partners or members as provided in a written agreement among the partners or members that is entered into no later than the last day of the taxable year of the partnership or limited liability company, for which the credit is claimed.
76.639 (3) (b) A partnership, limited liability company, or tax-option corporation may not claim the credit under this section.
Any partner or member who claims the credit as allocated by a written agreement shall provide a copy of the agreement with the tax return on which the credit is claimed.
An insurer, if a partner of a partnership, member of a limited liability company, or shareholder in a tax-option corporation, may claim the credit under this section based on eligible costs incurred by the partnership, limited liability company, or tax-option corporatiThe partnership, limited liability company, or tax-option corporation shall calculate the amount of the credit that may be claimed by the insurer as a partner, member, or shareholder and shall provide that information to the insurer.
Apt as provided in s.
If an insurer is a shareholder of a tax-option corporation, the credit may be allocated in proportion to its ownership interest as a shareholder.
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71.745, a person claiming the credit as provided under this subdivision is solely LRBa0048/1 - 2024 Legislature - 4 - JK&MDE:amn responsible for any tax liability arising from a dispute with the department of revenue related to claiming the credit.”.
If an insurer is a partner of a partnership or member of a limited liability company, credits may be claimed in proportion to the insurer's ownership interest or allocated to the insurer as provided in a written agreement among the partners or members that is entered into no later than the last day of the taxable year of the partnership or limited liability company for which the credit is claimed.
2.
Any insurer who claims the credit as allocated by a written agreement shall provide a copy of the agreement with the tax return on which the credit is claimed.
Page 3, line 20:
SECTION 6.
delete the material beginning with that line and ending with page 4, line 5.
76.639 (5) of the statutes is amended to read:
76.639 (5) C ARRY-FORWARD;
CARRY-BACK 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 - 2024 Legislature - 4 - LRB-1587/1 JK&MDE:cdc SENATE BILL 40 SECTION 6 which the carry-forward credit is claimed.
In addition, if a credit computed 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 back and credited against the fees under s.
76.60, 76.63, 76.65, 76.66, or 76.67 otherwise due for the previous taxable year.
SECTION 7.
76.67 (2) of the statutes is amended to read:
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, 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, and 76.655 against that total, and except that the amount imposed shall not be less than the amount due under s.
601.93.
SECTION 8.
234.45 (1) (e) of the statutes is amended to read:
234.45 (1) (e) “Qualified development” means a qualified low-income housing project under section 42 (g) of the Internal Revenue Code that is financed with tax-exempt bonds, pursuant to section 42 (i) (2) of the Internal Revenue Code, and located in this state.
SECTION 9.
234.45 (1) (em) of the statutes is created to read:
LRB-1587/1 - 2024 Legislature - 5 - JK&MDE:cdc SECTION 9 SENATE BILL 40 234.45 (1) (em) “Rural area” means a city, village, or town in this state that has a population of fewer than 10,000 and that is at least 25 miles from any city, village, or town that has a population of at least 50,000.
S ECTION 10.
234.45 (4) of the statutes is amended to read:
234.45 (4) ALLOCATION LIMITS.In any calendar year, the aggregate amount of all state tax credits for which the authority certifies persons in allocation certificates issued under sub.
(3) in that year may not exceed $42,000,000 $100,000,000, including all amounts each person is eligible to claim for each year of the credit period, plus the total amount of all unallocated state tax credits from previous calendar years and plus the total amount of all previously allocated state tax credits that have been revoked or cancelled or otherwise recovered by the authority.
S ECTION 11.
234.45 (5m) of the statutes is created to read:
234.45 (5m) P REFERENCE FOR RURAL COMMUNITIES.
(a) Beginning on January 1, 2024, in approving applications for allocation certificates under sub.
(3), the authority shall ensure that at least 35 percent of the value of all state tax credits the authority allocates each year are for qualified developments located in rural areas.
(b) Paragraph (a) does not apply in any year in which the authority cannot satisfy the 35 percent allocation threshold because the authority does not receive a sufficient number of applications for allocation certificates for qualified developments located in rural areas that the authority determines are complete and financially prudent.
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