Wisconsin 2021-2022 Regular Session Status: To Executive Bipartisan · 8 R · 1 D cosponsors

AB 156 — Relating to: state workforce housing income and franchise tax credit and requiring the exercise of rule-making authority. (FE)

Last action — Failed to concur in pursuant to Senate Joint Resolution 1

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2021-2022 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

590 added · 78 removed

Plain-language change summary

The amendments to Assembly Bill 156 made several important changes to the requirements for the state workforce housing tax credit program. Now, for a housing development to qualify, it allows units to be occupied by individuals with incomes greater than 60% of the area median, instead of the previous requirement of at least 61%. Additionally, the term "eligible basis" has been clarified to align with federal definitions, which is significant for accurately determining tax credits. These changes may make it easier for more housing developments to qualify for tax credits, potentially increasing affordable housing options in Wisconsin.

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- 2022 LEGISLATURE LRBa0857/1 MPG:amn/wlj/cjs/emw ASSEMBLY AMENDMENT 2, TO ASSEMBLY SUBSTITUTE AMENDMENT 1, TO ASSEMBLY BILL 156 October 11, 2021 - Offered by RepresentatUMMERFIELD.
- 2022 LEGISLATURE LRB-2057/1 EKL:emw ASSEMBLY BILL 156 March 10, 2021 - Introduced by Representatives S UMMERFIELD , ARMSTRONG , EDMING , KUGLITSCH, LOUDENBECK , M OSES, MURPHY , ORTIZV ELEZ, PETRYK, SKOWRONSKI , SPIROS, TITTL, TUSLER and V ANDER MEER , cosponsored by Senators BERNIER, BALLWEG and FEYEN.
At the locations indicated, amend the substitute amendment as follows:
Referred to Committee on Ways and Means.
A N A CT to amend 76.67 (2);
and to create 71.07 (8f), 71.10 (4) (fd), 71.28 (8f), 71.30 (3) (cu), 71.47 (8f), 71.49 (1) (cu), 76.6395 and 234.46 of the statutes;
relating to:
state workforce housing income and franchise tax credit and requiring the exercise of rule-making authority.
Analysis by the Legislative Reference Bureau This bill creates a state workforce housing tax credit program that is administered by the Wisconsin Housing and Economic Development Authority.
Under the bill, WHEDA may certify a person to claim a nonrefundable credit to offset income and franchise taxes if all of the following conditions are satisfied:
Page 3, line 15:
The person has an ownership interest in a qualified housing development.
after that line insert:
Under the bill, a “qualified housing development” is a residential rental property development located in Wisconsin if at least 25 percent of the rental units are occupied by individuals whose income is at least 61 percent but not more than 100 percent of area median income and the rents for such units do not exceed 30 percent of area median income.
“6m.
“Eligible basis” means the eligible basis determined under section 42 (d) of the Internal Revenue Code.”.
Page 3, line 17:
The tax credit is necessary for the financial feasibility of the development.
delete “adjusted" and substitute “eligible".
Page 4, line 6:
The qualified housing development is the subject of a recorded restrictive covenant requiring that the development be maintained and operated as a qualified housing development for at least 10 years.
on lines 6 and 9, delete “at least 61 percent" and substitute “greater than 60 percent".
Page 4, line 12:
The tax credit certification is issued in accordance with a qualified allocation plan established by WHEDA.
delete “area median gross income" and substitute “the unit's imputed income under s.
- 2022 Legislature - 2 - LRB-2057/1 EKL:emw ASSEMBLY BILL 156 The bill requires that WHEDA give preference to qualified housing developments located in a city, village, or town of fewer than 150,000 residents.
234.46 (4) (b)".
The bill caps at $42,000,000 the amount of credits WHEDA may issue each year, including all amounts each person is eligible to claim for each year of the credit.
However, the bill raises that cap for each year by an amount equal to all unallocated credits from prior years and all previously allocated credits that have been revoked, canceled, or otherwise recovered by WHEDA.
The bill also requires that WHEDA submit an annual report to the legislature concerning the program's progress.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
S ECTION 1.
71.07 (8f) of the statutes is created to read:
71.07(8f) STATE WORKFORCE HOUSING CREDIT.
(a) Definitions.
In this subsection:
1.
“Allocation certificate” means a statement issued by the authority certifying that a qualified housing development is eligible for a credit under this subsection and specifying the amount of the credit that the owners of the development may claim for each taxable year of the credit period.
2.
“Area median gross income” has the meaning as used for purposes of 26 USC 42.
3.
“Authority” means the Wisconsin Housing and Economic Development Authority.
4.
“Claimant” means a person who has an ownership interest in a qualified housing development and who files a claim under this subsection.
Page 5, line 21:
“Compliance period” means the 10-year period beginning with the first taxable year of the credit period.
delete that line and substitute “a credit is claimed under sub.
6.
(8b) or s.
“Credit period” means the 6-year period beginning with the taxable year in which a qualified housing development is placed in service.
71.28 (8b), 71.47 (8b),”.
For purposes of this LRB-2057/1 - 2022 Legislature - 3 - EKL:emw SECTION 1 ASSEMBLY BILL 156 subdivision, 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.
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LRBa0857/1 - 2022 Legislature - 2 - MPG:amn/wlj/cjs/emw 6.
Page 7, line 25:
after that line insert:
“6m.
“Eligible basis” means the eligible basis determined under section 42 (d) of the Internal Revenue Code.”.
Page 8, line 2:
“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.
delete “adjusted" and substitute “eligible".
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.
Page 8, line 15:
“Qualified housing development” means a residential rental property development that is 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.
on lines 15 and 18, delete “at least 61 percent" and substitute “greater than 60 percent".
Page 8, line 21:
“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.
delete “area median gross income" and substitute “the unit's imputed income under s.
234.46 (4) (b)".
Page 10, line 4:
“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, - 2022 Legislature - 4 - LRB-2057/1 EKL:emw ASSEMBLY BILL 156 S ECTION 1 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.
delete that line and substitute “a credit is claimed under sub.
(8b) or s.
71.07 (8b), 71.47 (8b),”.
Page 12, line 9:
“Tenant income” means the income determined under 26 USC 142 (d) (2) (B) of individuals occupying a residential rental unit.
after that line insert:
(b) Filing claims.
“6m.
Subject to the limitations provided in this subsection and in s.
“Eligible basis” means the eligible basis determined under section 42 (d) of the Internal Revenue Code.”.
234.46, for taxable years beginning after December 31, 2020, a claimant may claim as a credit against the taxes imposed under s.
12.
71.02, up to the amount of the tax, the amount allocated to the claimant by the authority under s.
Page 12, line 11:
234.46 for each taxable year within the credit period.
delete “adjusted" and substitute “eligible".
(c) Limitations.
13.
1.
Page 12, line 24:
No person may claim the credit under par.
delete “at least 61 percent" and substitute “greater than 60 percent".
(b) unless the claimant includes with the claimant's return a copy of the allocation certificate issued for the qualified housing development.
14.
2.
Page 13, line 2:
A partnership, limited liability company, or tax-option corporation may not claim the credit under this subsection.
delete “at least 61 percent" and substitute “greater than 60 percent".
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 corporationThe 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 each of them.
15.
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.
Page 13, line 5:
Any partner or member who claims the credit as allocated by a written LRB-2057/1 - 2022 Legislature - 5 - EKL:emw SECTION 1 ASSEMBLY BILL 156 agreement shall provide a copy of the agreement with the tax return on which the credit is claimed.
delete “area median gross income" and substitute “the unit's imputed income under s.
For shareholders of a tax-option corporation, the credit may be allocated in proportion to the ownership interest of each shareholder.
234.46 (4) (b)".
A person claiming the credit as provided under this subdivision is solely responsible for any tax liability arising from a dispute with the department related to claiming the credit.
16.
(d) Recapture.
Page 14, line 13:
1.
delete that line and substitute “a credit is claimed under sub.
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 this subchapter shall be increased by an amount equal to the excess of the aggregate credit claimed under this subsection 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.
(8b) or s.
2.
71.07 (8b), 71.28 (8b),”.
Subdivision 1.
LRBa0857/1 - 2022 Legislature - 3 - MPG:amn/wlj/cjs/emw 17.
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;
Page 17, line 6:
a minimal change in floor space;
on lines 6 and 9, delete “at least 61 percent" and substitute “greater than 60 percent".
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.
18.
3.
Page 17, line 12:
In the event that the recapture of a credit is required in a taxable year, the taxpayer shall include the recaptured amount on the return submitted for the taxable year in which the recapture event is identified.
delete “area median gross income" and substitute “the unit's imputed income under s.
4.
234.46 (4) (b)".
The department shall promulgate rules to implement this paragraph.
19.
- 2022 Legislature - 6 - LRB-2057/1 EKL:emw ASSEMBLY BILL 156 SECTION 1 (e) Administration.
Page 18, line 9:
Section 71.28 (4) (e) to (h), as it applies to the credit under s.
delete “s.
71.28 (4), applies to the credit under this subsection.
71.07 (8b), (9m), or (9r), 71.28 (6) or (8b), 71.47 (6) or (8b)" and substitute “s.
SECTION 2.
71.07 (8b), 71.28 (8b), 71.47 (8b)".
71.10 (4) (fd) of the statutes is created to read:
20.
71.10 (4) (fd) State workforce housing credit under s.
Page 20, line 15:
71.07 (8f).
on lines 15 and 18, delete “at least 61 percent" and substitute “greater than 60 percent".
SECTION 3.
21.
71.28 (8f) of the statutes is created to read:
Page 20, line 21:
71.28 (8f) TATE WORKFORCE HOUSING CREDI(a) Definitions.
delete “area median gross income" and substitute “the unit's imputed income under s.
In this subsection:
234.46 (4) (b)".
1.
22.
“Allocation certificate” means a statement issued by the authority certifying that a qualified housing development is eligible for a credit under this subsection 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.
Page 21, line 9:
2.
after “period," insert “which shall be proportionate to the qualified basis, as defined in s.
“Area median gross income” has the meaning as used for purposes of 26 USC 42.
71.07 (8f) (a) 7., of the qualified housing development,".
3.
23.
“Authority” means the Wisconsin Housing and Economic Development Authority.
Page 22, line 5:
4.
before “The" insert “(a)".
“Claimant” means a person who has an ownership interest in a qualified housing development and who files a claim under this subsection.
24.
5.
Page 22, line 7:
“Compliance period” means the 10-year period beginning with the first taxable year of the credit period.
delete “at least 61 percent" and substitute “greater than 60 percent".
6.
25.
“Credit period” means the 6-year period beginning with the taxable year in which a qualified housing development is placed in service.
Page 22, line 14:
For purposes of this subdivision, 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.
after that line insert:
7.
“(b) In the allocation plan, a designated imputed income limitation shall be established for each qualified unit.
“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 LRB-2057/1 - 2022 Legislature - 7 - EKL:emw SECTION 3 ASSEMBLY BILL 156 year of the credit period.
The authority may not use the composition of imputed income limitations as a scoring criteria.
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.
Each qualified unit's designated imputed income limitation shall be equal to greater than 60 percent but less than 70 percent, or equal to between 70 percent and 80 percent, between 80 percent and 90 percent, or between 90 percent and 100 percent, of area median gross income.
8.
The LRBa0857/1 - 2022 Legislature - 4 - MPG:amn/wlj/cjs/emw authority shall require that a 3rd-party market assessment is utilized to demonstrate market demand for each qualified unit.”.
“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.
26.
9.
Page 23, line 2:
“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.
after that line insert:
10.
“(6m) S HIFTS IN INCOME.(a) A qualified unit occupied by individuals whose income falls to 60 percent or less of area median gross income after initial occupancy shall continue to be considered a qualified unit for all purposes.
“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.
(b) A qualified unit occupied by individuals whose income rises above the unit's imputed income under sub.
11.
(4) (b) after initial occupancy shall continue to be considered a qualified unit for all purposes if consistent with 26 USC 42 (g) (2) (D).”.
“Tenant income” means the income determined under 26 USC 142 (d) (2) (B) of individuals occupying a residential rental unit.
(b) Filing claims.
Subject to the limitations provided in this subsection and in s.
234.46, for taxable years beginning after December 31, 2020, a claimant may claim - 2022 Legislature - 8 - LRB-2057/1 EKL:emw ASSEMBLY BILL 156 S ECTION 3 as a credit against the taxes imposed under s.
71.23, up to the amount of the tax, the amount allocated to the claimant by the authority under s.
234.46 for each taxable year within the credit period.
(c) Limitations.
1.
No person may claim the credit under par.
(b) unless the claimant includes with the claimant's return a copy of the allocation certificate issued for the qualified housing development.
2.
A partnership, limited liability company, or tax-option corporation may not claim the credit under this subsection.
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 corporationThe 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 each of them.
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.
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.
For shareholders of a tax-option corporation, the credit may be allocated in proportion to the ownership interest of each shareholder.
A person claiming the credit as provided under this subdivision is solely responsible for any tax liability arising from a dispute with the department related to claiming the credit.
LRB-2057/1 - 2022 Legislature - 9 - EKL:emw SECTION 3 ASSEMBLY BILL 156 (d) Recapture.
1.
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 this subchapter shall be increased by an amount equal to the excess of the aggregate credit claimed under this subsection 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.
2.
Subdivision 1.
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 minimal change in floor space;
or the 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.
3.
In the event that the recapture of a credit is required in a taxable year, the taxpayer shall include the recaptured amount on the return submitted for the taxable year in which the recapture event is identified.
4.
The department shall promulgate rules to implement this paragraph.
(e) Administration.
Subsection (4) (e) to (h), as it applies to the credit under sub.
(4), applies to the credit under this subsection.
SECTION 4.
71.30 (3) (cu) of the statutes is created to read:
71.30 (3) (cu) State workforce housing credit under s.
71.28 (8f).
SECTION 5.
71.47 (8f) of the statutes is created to read:
71.47(8f) STATE WORKFORCE HOUSING CREDI(a) Definitions.
In this subsection:
- 2022 Legislature - 10 - LRB-2057/1 EKL:emw ASSEMBLY BILL 156 SECTION 5 1.
“Allocation certificate” means a statement issued by the authority certifying that a qualified housing development is eligible for a credit under this subsection 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.
2.
“Area median gross income” has the meaning as used for purposes of 26 USC 42.
3.
“Authority” means the Wisconsin Housing and Economic Development Authority.
4.
“Claimant” means a person who has an ownership interest in a qualified housing development and who files a claim under this subsection.
5.
“Compliance period” means the 10-year period beginning with the first taxable year of the credit period.
6.
“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 subdivision, 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.
7.
“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 developmentIn LRB-2057/1 - 2022 Legislature - 11 - EKL:emw SECTION 5 ASSEMBLY BILL 156 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.
8.
“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.
9.
“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.
10.
“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.
11.
“Tenant income” means the income determined under 26 USC 142 (d) (2) (B) of individuals occupying a residential rental unit.
(b) Filing claims.
Subject to the limitations provided in this subsection and in s.
234.46, for taxable years beginning after December 31, 2020, a claimant may claim as a credit against the taxes imposed under s.
71.43, up to the amount of the tax, the amount allocated to the claimant by the authority under s.
234.46 for each taxable year within the credit period.
(c) Limitations.
1.
No person may claim the credit under par.
(b) unless the claimant includes with the claimant's return a copy of the allocation certificate issued for the qualified housing development.
- 2022 Legislature - 12 - LRB-2057/1 EKL:emw ASSEMBLY BILL 156 S ECTION 5 2.
A partnership, limited liability company, or tax-option corporation may not claim the credit under this subsection.
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 corporationThe 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 each of them.
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.
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.
For shareholders of a tax-option corporation, the credit may be allocated in proportion to the ownership interest of each shareholder.
A person claiming the credit as provided under this subdivision is solely responsible for any tax liability arising from a dispute with the department related to claiming the credit.
(d) Recapture.
1.
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 this subchapter shall be increased by an amount equal to the excess of the aggregate credit claimed under this subsection in prior taxable years over the aggregate credit that would be claimed in LRB-2057/1 - 2022 Legislature - 13 - EKL:emw SECTION 5 ASSEMBLY BILL 156 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.
2.
Subdivision 1.
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 minimal 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.
3.
In the event that the recapture of a credit is required in a taxable year, the taxpayer shall include the recaptured amount on the return submitted for the taxable year in which the recapture event is identified.
4.
The department shall promulgate rules to implement this paragraph.
(e) Administration.
Section 71.28 (4) (e) to (h), as it applies to the credit under s.
71.28 (4), applies to the credit under this subsection.
SECTION 6.
71.49 (1) (cu) of the statutes is created to read:
71.49 (1) (cu) State workforce housing credit under s.
71.47 (8f).
SECTION 7.
76.6395 of the statutes is created to read:
76.6395 State workforce housing credit.
(1) D EFINITIONSIn this section:
(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.
(b) “Area median gross income” has the meaning as used for purposes of 26 USC 42.
- 2022 Legislature - 14 - LRB-2057/1 EKL:emw ASSEMBLY BILL 156 S ECTION 7 (c) “Authority” means the Wisconsin Housing and Economic Development Authority.
(d) “Claimant” means a person who has an ownership interest in a qualified housing development and who files a claim under this section.
(e) “Compliance period” means the 10-year period beginning with the first taxable year of the credit period.
(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.
(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.
(h) “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 LRB-2057/1 - 2022 Legislature - 15 - EKL:emw SECTION 7 ASSEMBLY BILL 156 tenant income is at least 61 percent but not more than 100 percent of area median gross income.
(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.
(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.
(k) “Tenant income” means the income determined under 26 USC 142 (d) (2) (B) of individuals occupying a residential rental unit.
(2) FILING CLAIMS.Subject to the limitations provided in this section and in s.
234.46, for taxable years beginning after December 31, 2020, 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.
(3) LIMITATIONS.(a) 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.
(b) An insurer that is a partner or member of a partnership or limited liability company that directly or indirectly owns a qualified housing development may claim the credit under sub.
(2) in proportion to the insurer's percentage ownership interest in the partnership or limited liability company or in accordance with the allocation of credits to the insurer pursuant to a written agreement among the partners or - 2022 Legislature - 16 - LRB-2057/1 EKL:emw ASSEMBLY BILL 156 S ECTION 7 members of the partnership or limited liability company that is entered into no later than the last day of the taxable year of the partnership or limited liability company.
(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.
(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 minimal 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.
(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.
(d) The department shall promulgate rules to implement this subsection.
(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 LRB-2057/1 - 2022 Legislature - 17 - EKL:emw SECTION 7 ASSEMBLY BILL 156 the year in which the expense was made and the year in which the carry-forward credit is claimed.
SECTION 8.
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, 76.6395,5, 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.
SECTION 9.
234.46 of the statutes is created to read:
234.46 State workforce housing tax credits.
(1) D EFINITIONS.In this section:
(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.
(b) “Area median gross income” has the meaning as used for purposes of 26 USC 42.
(c) “Compliance period” means the 10-year period beginning with the first taxable year of the credit period.
- 2022 Legislature - 18 - LRB-2057/1 EKL:emw ASSEMBLY BILL 156 S ECTION 9 (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.
(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.
(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.
(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.
(h) “State tax credit” means a tax credit under s.
71.07 (8f), 71.28 (8f), 71.47 (8f), or 76.6395.
(i) “Tenant income” means the income determined under 26 USC 142 (d) (2) (B) of individuals occupying a residential rental unit.
(2) E STABLISHMENT 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.
LRB-2057/1 - 2022 Legislature - 19 - EKL:emw SECTION 9 ASSEMBLY BILL 156 (3) CERTIFICATIONThe authority may certify a person to claim a state tax credit by issuing the person an allocation certificate for the qualified housing development.
The allocation certificate shall state the amount the authority determines the person is eligible to claim for each year of the credit period, the name and address of the person, the person's Wisconsin tax identification number, and any other information required by the authority or the department of revenue.
The authority shall provide a copy of the allocation certificate to the department of revenue.
The authority shall issue allocation certificates annually, on a rolling basis, based on eligibility, as determined by the authority, except that the authority may develop a competitive process to award allocation certificates as a part of its qualified allocation plan under sub.
(4).
The authority may issue an allocation certificate under this subsection only if all of the following conditions are satisfied:
(a) The allocation certificate is issued to a person who has an ownership interest in the qualified housing development.
(b) The state tax credit is necessary for the financial feasibility of the qualified housing development.
(c) The qualified housing development is the subject of a recorded restrictive covenant requiring that, for the compliance period or for a longer period agreed to by the authority and the owner of the qualified housing development, the development shall be maintained and operated as a qualified housing development and shall be in compliance with Title VIII of the federal Civil Rights Act of 1968, as amended.
(d) The allocation certificate is issued in accordance with the authority's qualified allocation plan under sub.
(4).
- 2022 Legislature - 20 - LRB-2057/1 EKL:emw ASSEMBLY BILL 156 SECTION 9 (4) ALLOCATION PLAN.
The authority shall develop a qualified allocation plan that sets forth selection criteria to determine housing priorities for individuals whose income is at least 61 percent but not more 100 percent of area median gross income.
The housing priorities shall be appropriate for local conditions.
The selection criteria shall include project location, housing needs characteristics, project characteristics, sponsor characteristics, tenant populations with special housing needs, tenant populations of individuals with children, projects intended for eventual tenant ownership, the energy efficiency of the project, and the historic nature of the project.
The plan shall include procedures to monitor noncompliance with this section and with habitability standards.
(5) 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, 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, canceled, or otherwise recovered by the authority.
(6) PREFERENCE FOR SMALLER MUNICIPALITIES.
In issuing allocation certificates under sub.
(3), the authority shall give preference to qualified housing developments located in a city, village, or town with a population of fewer than 150,000.
(7) REPORT.
No later than December 31 of each year, the authority shall submit a report to the legislature under s.
13.172 (2) that includes all of the following:
(a) A description of each qualified housing development for which the authority issued an allocation certificate that year, including the development's geographic location, the household type and any specific demographic information available LRB-2057/1 - 2022 Legislature - 21 - EKL:emw SECTION 9 ASSEMBLY BILL 156 concerning the residents intended to be served by the development, the income levels of residents intended to be served by the development, and the rents or set-asides authorized for the development.
(b) An analysis of housing market and demographic information that shows how the qualified housing developments for which the authority has issued allocation certificates at any time are addressing the need for affordable housing within the communities the developments are intended to serve and an analysis of remaining disparities in the affordability of housing within those communities.
(8) P OLICIES AND PROCEDURES.
The authority, in consultation with the department of revenue, shall establish policies and procedures to administer this section.
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Action History

  1. Failed to concur in pursuant to Senate Joint Resolution 1

  2. Public hearing held

  3. Read first time and referred to committee on Financial Institutions and Revenue

  4. Received from Assembly

  5. Ordered immediately messaged

  6. Read a third time and passed, Ayes 95, Noes 0

  7. Rules suspended

  8. Ordered to a third reading

  9. Assembly Substitute Amendment 1 adopted

  10. Assembly Amendment 3 to Assembly Substitute Amendment 1 adopted

  11. Assembly Amendment 2 to Assembly Substitute Amendment 1 adopted

  12. Read a second time

  13. Placed on calendar 10-26-2021 by Committee on Rules

  14. Assembly Amendment 3 to Assembly Substitute Amendment 1 offered by Representative Brooks

  15. Referred to committee on Rules

  16. Report passage as amended recommended by Committee on Ways and Means, Ayes 10, Noes 3

  17. Report Assembly Substitute Amendment 1 adoption recommended by Committee on Ways and Means, Ayes 12, Noes 1

  18. Report Assembly Amendment 2 to Assembly Substitute Amendment 1 adoption recommended by Committee on Ways and Means, Ayes 13, Noes 0

  19. Executive action taken

  20. Assembly Amendment 2 to Assembly Substitute Amendment 1 offered by Representative Summerfield

  21. Representative Ohnstad added as a coauthor

  22. Assembly Amendment 1 to Assembly Substitute Amendment 1 offered by Representative Summerfield

  23. Representative Novak added as a coauthor

  24. Public hearing held

  25. Representative Dittrich added as a coauthor

  26. Assembly Substitute Amendment 1 offered by Representative Summerfield

  27. Fiscal estimate received

  28. Fiscal estimate received

  29. Read first time and referred to Committee on Ways and Means

  30. Introduced by Representatives Summerfield, Armstrong, Edming, Kuglitsch, Loudenbeck, Moses, Murphy, Ortiz-Velez, Petryk, Skowronski, Spiros, Tittl, Tusler and VanderMeer; cosponsored by Senators Bernier, Ballweg and Feyen

Sponsors

Sponsorship breakdown

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14 sponsors · 0 co-sponsors · 118 not signed on

Sponsors (14)

Co-sponsors (0)

None.

Not signed on (118)

118 members have not signed on to this bill.

Show all 118 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Votes

PASSAGE

Passed 95 Yea · 0 Nay · 4 Other
Party YeaNayPresentNot Voting
Republican 39000
Democrat 16000
Unaffiliated 40000
Total 95000
% of votes cast 100%0%0%0%
How each member voted (95)
Member Party Vote
BALDEH — Yea
BOWEN — Yea
BRANDTJEN — Yea
BROSTOFF — Yea
CABRAL-GUEVA — Yea
CABRERA — Yea
CONLEY — Yea
CONSIDINE — Yea
EDMING — Yea
GOYKE — Yea
HEBL — Yea
HINTZ — Yea
HORLACHER — Yea
KATSMA — Yea
KERKMAN — Yea
KUGLITSCH — Yea
LOUDENBECK — Yea
MACCO — Yea
MAGNAFICI — Yea
MEYERS — Yea
MILROY — Yea
MOORE OMOKUN — Yea
MYERS — Yea
OHNSTAD — Yea
OLDENBURG — Yea
PLUMER — Yea
POPE — Yea
RAMTHUN — Yea
RIEMER — Yea
ROZAR — Yea
SANFELIPPO — Yea
SCHRAA — Yea
SHANKLAND — Yea
SHELTON — Yea
SKOWRONSKI — Yea
STEINEKE — Yea
THIESFELDT — Yea
VORPAGEL — Yea
VRUWINK — Yea
SPEAKER — Yea
Anderson, Clinton Democrat Yea
Andraca, Deb Democrat Yea
Billings, Jill Democrat Yea
Doyle, Steve Democrat Yea
Drake, Dora Democrat Yea
Emerson, Jodi Democrat Yea
Haywood, Kalan Democrat Yea
Hesselbein, Dianne Democrat Yea
Hong, Francesca Democrat Yea
McGuire, Tip Democrat Yea
Neubauer, Greta Democrat Yea
Ortiz-Velez, Sylvia Democrat Yea
Sinicki, Christine Democrat Yea
Snodgrass, Lee Democrat Yea
Stubbs, Shelia Democrat Yea
Vining, Robyn Democrat Yea
Allen, Scott Republican Yea
Armstrong, David Republican Yea
August, Tyler Republican Yea
Behnke, Elijah Republican Yea
Born, Mark Republican Yea
Brooks, Robert Republican Yea
Callahan, Calvin Republican Yea
Dallman, Alex Republican Yea
Dittrich, Barbara Republican Yea
Duchow, Cindi Republican Yea
Gundrum, Rick Republican Yea
James, Jesse Republican Yea
Kitchens, Joel Republican Yea
Knodl, Daniel Republican Yea
Krug, Scott Republican Yea
Kurtz, Tony Republican Yea
Moses, Clint Republican Yea
Murphy, David Republican Yea
Mursau, Jeffrey Republican Yea
Neylon, Adam Republican Yea
Novak, Todd Republican Yea
Penterman, William Republican Yea
Petersen, Kevin Republican Yea
Pronschinske, Treig Republican Yea
Rodriguez, Jessie Republican Yea
Rodriguez, Jessie Republican Yea
Snyder, Patrick Republican Yea
Sortwell, Shae Republican Yea
Spiros, John Republican Yea
Steffen, David Republican Yea
Summerfield, Rob Republican Yea
Swearingen, Rob Republican Yea
Tittl, Paul Republican Yea
Tranel, Travis Republican Yea
Tusler, Ron Republican Yea
VanderMeer, Nancy Republican Yea
Wichgers, Chuck Republican Yea
Wittke, Robert Republican Yea
Zimmerman, Shannon Republican Yea

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Subjects

taxation housing labor
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Frequently asked questions

Who sponsors AB 156?
AB 156 is sponsored by VanderMeer, Nancy (Republican), Tusler, Ron (Republican), Tittl, Paul (Republican), Spiros, John (Republican), Skowronski, Petryk, Ortiz-Velez, Sylvia (Democrat), Murphy, David (Republican), Moses, Clint (Republican), Loudenbeck, Kuglitsch, Edming, Armstrong, David (Republican), and Summerfield, Rob (Republican).
What is the current status of AB 156?
This bill died with 2021-2022 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 156?
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