Wisconsin Legislative Council
AMENDMENT MEMO
One Ea st Ma in Stre e t, Suite 401 • Ma dison, W I 53703 • (608) 266-1304 • le g.council@le gis.wisconsin.gov • http://www.le gis.wisconsin.gov/lc
Memo published: June 8, 2023 Contact: Ethan Lauer, Senior Staff Attorney
2023 Assembly Bill 39
Assembly
Amendments 1 and 2
BACKGROUND
The Wisconsin Housing and Economic Development Authority (WHEDA) administers a state income
and franchise tax credit program for qualified low-income housing developments. WHEDA certifies a
person to claim a tax credit through the program by issuing an allocation certification for a qualified
development, if certain conditions are satisfied. Among other conditions, the housing development
must be a qualified low-income housing project under section 42 of the Internal Revenue Code that is
financed with tax-exempt bonds.
The aggregate amount of all tax credits that WHEDA certifies in any calendar year may not exceed $42
million, including all amounts each person is eligible to claim for each year of the credit period, plus
certain previously unallocated or recovered amounts.
2023 ASSEMBLY BILL 39
2023 Assembly Bill 39 makes the following changes to the program:
Allows a person to carry back the unused balance of a credit to the previous taxable year.
Allows an insurer—if a partner of a partnership, member of a limited liability company, or
shareholder in a tax-option corporation—to claim the credit based on eligible costs incurred by the
partnership, company, or corporation.
Removes the requirement that a housing development be financed with tax-exempt bonds.
Increases the aggregate amount of all tax credits that WHEDA may certify in any calendar year from
$42 million to $100 million.
Requires WHEDA to ensure that at least 35 percent of the value of all tax credits it allocates each
year are for housing developments in a rural area.
1
“Rural area” is defined as a city, village, or town
with a population of less than 10,000 that is located at least 25 miles from a city, village, or town
with a population of at least 50,000.
ASSEMBLY AMENDMENT 1
Assembly Amendment 1 removes the provisions of the bill allowing a person to carry back the unused
balance of a credit to the previous taxable year.
1
This requirement does not apply in any year in which WHEDA does not receive a sufficient number of applications for
housing developments in a rural area. - 2 -
The amendment also resolves contradictory language in current law regarding tax liability among the
partners of a partnership, the members of a limited liability company, and the shareholders in a tax-
option corporation, in a situation where the liability arises from a dispute with the Department of
Revenue related to claiming the credit.
ASSEMBLY AMENDMENT 2
Assembly Amendment 2 changes the definition of “rural area.” Under the amendment, the city, village,
or town with a population of less than 10,000 must be located at least 10 miles from the larger city,
village, or town instead of 25 miles.
BILL HISTORY
Representative Armstrong offered Assembly Amendment 1 on March 16, 2023, and Assembly
Amendment 2 on May 24, 2023. On June 6, 2023, the Assembly Committee on Housing and Real
Estate voted to recommend adoption of each amendment on votes of Ayes, 11; Noes, 0, and passage of
the bill, as amended, on a vote of Ayes, 14; Noes, 0.
For a full history of the bill, visit the Legislature’s bill history page.
EL:jal