Wisconsin 2025 Regular Session Status: Introduced Bipartisan · 6 D · 2 R cosponsors

SB 178 — Relating to: changes to the low-income housing tax credit. (FE)

Last action — Failed to pass pursuant to Senate Joint Resolution 1

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

This bill has been introduced in the Senate. Introduced April 03, 2025. It must pass committee before a floor vote.

Next likely step: a committee referral and hearing.

Prognosis

Advancing 54% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • Introduced

    Current position in the legislative process.

  • 22 sponsors

    1 primary, 21 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (6 D · 2 R) — cross-party backing.

  • Cleared a recorded vote

    Passed 4 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

An Act to renumber 76.639 (3); to amend 71.07 (8b) (a) 7., 71.07 (8b) (c) 2., 71.28 (8b) (a) 7., 71.28 (8b) (c) 2., 71.47 (8b) (a) 7., 71.47 (8b) (c) 2., 76.639 (1) (g), 76.67 (2) and 234.45 (1) (e); to create 76.639 (3) (b), 234.45 (1) (em) and 234.45 (5m) of the statutes;

Bill Text

What changed in the latest version

192 added · 13 removed

Plain-language change summary

The updated version of SB 178 requires Wisconsin's Housing and Economic Development Authority (WHEDA) to allocate at least 35% of its low-income housing tax credits each year to projects in rural areas. This change is significant because it aims to enhance affordable housing opportunities in less populated regions, addressing an imbalance in housing resources. Additionally, the amendment removes a requirement that projects must be financed with tax-exempt bonds, which could make it easier for more projects to qualify for tax credits and ultimately help more families.

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Latest
- 2026 LEGISLATURE LRBa0140/1 MDE:skw SENATE AMENDMENT 1, TO SENATE BILL 178 May 2, 2025 - Offered by SenatUINN .
- 2026 LEGISLATURE LRB-2483/1 JK&MDE:cdc SENATE BILL 178 April 3, 2025 - Introduced by Senators UINN , AMES , CARPENTER, DASSLER - A LFHEIM, HABUSH SINYKIN, K EYESKI, R ATCLIF, W ALL and W IRCH, cosponsored by Representatives A RMSTRONG , G REEN, B ARE, G OODWIN , G UNDRUM , B.
At the locations indicated, amend the bill as follows:
JACOBSON , K ITCHENS, KREIBICH, KRUG , PENTERMAN , P IWOWARCZYK , UBECK and TENORIO.
1.
Referred to Committee on Insurance, Housing, Rural Issues and Forestry.
Page 7, line 11:
A N A CT to renumber 76.639 (3);
delete the material beginning with XBeginningY and ending with Xsub.
to amend 71.07 (8b) (a) 7., 71.07 (8b) (c) 2., 71.28 (8b) (a) 7., 71.28 (8b) (c) 2., 71.47 (8b) (a) 7., 71.47 (8b) (c) 2., 76.639 (1) (g), 76.67 (2) and 234.45 (1) (e);
(3),Y on line 12 and substitute XIn each qualified allocation plan adopted by the authority after the effective date of this paragraph ....
to create 76.639 (3) (b), 234.45 (1) (em) and 234.45 (5m) of the statutes;
[LRB inserts date],Y.
relating to:
2.
changes to the low-income housing tax credit.
Page 7, line 14:
Analysis by the Legislative Reference Bureau Under current law, the Wisconsin Housing and Economic Development Authority administers a low-income housing tax credit program.
after XyearY insert Xpursuant to the qualified allocation planY.
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.
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.
Finally, the bill makes a technical change to the credit for insurers so that an - 2026 Legislature - 2 - LRB-2483/1 JK&MDE:cdc SENATE BILL 178 SECTION 1 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.
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:
SECTION 1.
71.07 (8b) (a) 7.
of the statutes is amended to read:
71.07 (8b) (a) 7.
“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 2.
71.07 (8b) (c) 2.
of the statutes is amended to read:
71.07 (8b) (c) 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 corporation.
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.
For shareholders of a tax-option corporation, the credit may be allocated in proportion to the ownership interest of each shareholder.
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 - 2026 Legislature - 3 - LRB-2483/1 JK&MDE:cdc SENATE BILL 178 SECTION 2 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.
A Except as provided in s.
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.
S ECTION 3.
71.28 (8b) (a) 7.
of the statutes is amended to read:
71.28 (8b) (a) 7.
“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.
S ECTION 4.
71.28 (8b) (c) 2.
of the statutes is amended to read:
71.28 (8b) (c) 2.
Show all 104 changed rows (64 more)
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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 corporation.
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.
For shareholders of a tax-option corporation, the credit may be allocated in proportion to the ownership interest of each shareholder.
Credits computed by a partnership or limited liability company may be claimed in - 2026 Legislature - 4 - LRB-2483/1 JK&MDE:cdc SENATE BILL 178 SECTION 4 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.
A Except as provided in s.
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.
S ECTION 5.
71.47 (8b) (a) 7.
of the statutes is amended to read:
71.47 (8b) (a) 7.
“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.
S ECTION 6.
71.47 (8b) (c) 2.
of the statutes is amended to read:
71.47 (8b) (c) 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 corporation.
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.
For shareholders of a tax-option corporation, the credit may be - 2026 Legislature - 5 - LRB-2483/1 JK&MDE:cdc SENATE BILL 178 SECTION 6 allocated in proportion to the ownership interest of each shareholder.
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.
A Except as provided in s.
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.
S ECTION 7.
76.639 (1) (g) of the statutes is amended to read:
76.639 (1) (g) “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.
S ECTION 8.
76.639 (3) of the statutes is renumbered 76.639 (3) (a).
S ECTION 9.
76.639 (3) (b) of the statutes is created to read:
76.639 (3) (b) A partnership, limited liability company, or tax-option corporation may not claim the credit under this section.
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 corporaThen.
partnership, limited liability company, or tax-option corporation shall calculate the - 2026 Legislature - 6 - LRB-2483/1 JK&MDE:cdc SENATE BILL 178 SECTION 9 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.
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.
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.
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.
S ECTION 10.
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.
- 2026 Legislature - 7 - LRB-2483/1 JK&MDE:cdc SENATE BILL 178 S ECTION 11 S ECTION 11.
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.
S ECTION 12.
234.45 (1) (em) of the statutes is created to read:
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 10 miles from any city, village, or town that has a population of at least 50,000.
S ECTION 13.
234.45 (5m) of the statutes is created to read:
234.45 (5m) PREFERENCE FOR RURAL COMMUNITIES .
(a) Beginning on January 1, 2025, 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 have timely submitted complete applications that meet all threshold requirements of the applicable qualified allocation plan as determined by the authority.
S ECTION 14.
Initial applicability.
- 2026 Legislature - 8 - LRB-2483/1 JK&MDE:cdc SENATE BILL 178 S ECTION 14 (1) The treatment of ss.
71.07 (8b) (a) 7., 71.28 (8b) (a) 7., 71.47 (8b) (a) 7., and 76.639 (1) (g) first applies to taxable years beginning after December 31, 2024.
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Action History

  1. Failed to pass pursuant to Senate Joint Resolution 1

  2. Available for scheduling

  3. Report passage as amended recommended by Joint Committee on Finance, Ayes 16, Noes 0

  4. Report adoption of Senate Amendment 1 recommended by Joint Committee on Finance, Ayes 16, Noes 0

  5. Executive action taken

  6. Withdrawn from committee on Senate Organization and rereferred to joint committee on Finance pursuant to Senate Rule 46(2)(c)

  7. Representative Miresse added as a cosponsor

  8. Representatives Palmeri and Fitzgerald added as cosponsors

  9. Available for scheduling

  10. Report passage as amended recommended by Committee on Insurance, Housing, Rural Issues and Forestry, Ayes 5, Noes 0

  11. Report adoption of Senate Amendment 1 recommended by Committee on Insurance, Housing, Rural Issues and Forestry, Ayes 5, Noes 0

  12. Executive action taken

  13. Senate Amendment 1 offered by Senator Quinn

  14. Fiscal estimate received

  15. Public hearing held

  16. Fiscal estimate received

  17. Senator Pfaff added as a coauthor

  18. Fiscal estimate received

  19. Representative Roe added as a cosponsor

  20. Read first time and referred to Committee on Insurance, Housing, Rural Issues and Forestry

  21. Introduced by Senators Quinn, James, Carpenter, Dassler-Alfheim, Habush Sinykin, Keyeski, Ratcliff, Wall and Wirch; cosponsored by Representatives Armstrong, Green, Bare, Goodwin, Gundrum, B. Jacobson, Kitchens, Kreibich, Krug, Penterman, Piwowarczyk, Subeck and Tenorio

Sponsors

Sponsorship breakdown

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1 sponsors · 21 co-sponsors · 110 not signed on

Sponsors (1)

Co-sponsors (21)

Not signed on (110)

110 members have not signed on to this bill.

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"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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Frequently asked questions

What does SB 178 do?
An Act to renumber 76.639 (3); to amend 71.07 (8b) (a) 7., 71.07 (8b) (c) 2., 71.28 (8b) (a) 7., 71.28 (8b) (c) 2., 71.47 (8b) (a) 7., 71.47 (8b) (c) 2., 76.639 (1) (g), 76.67 (2) and 234.45 (1) (e); to create 76.639 (3) (b), 234.45 (1) (em) and 234.45 (5m) of the statutes;
Who sponsors SB 178?
SB 178 is sponsored by Habush Sinykin, Armstrong, Green, Bare, Goodwin, Gundrum, B. Jacobson, Kitchens, Kreibich, Krug, Penterman, Piwowarczyk, Subeck, Tenorio, Quinn, Romaine (Republican), James, Jesse (Republican), Carpenter, Tim (Democrat), Dassler-Alfheim, Kristin (Democrat), Keyeski, Sarah (Democrat), Ratcliff, Melissa (Democrat), Wall, Jamie (Democrat), and Wirch, Robert (Democrat).
What is the current status of SB 178?
This bill has been introduced in the Senate. Introduced April 03, 2025. It must pass committee before a floor vote.
Where can I track SB 178?
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