Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB39 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 39
5	5	February 13, 2023 - Introduced by Representatives ARMSTRONG, KURTZ, ALLEN,
6	6	DITTRICH, EDMING, GREEN, KITCHENS, MAGNAFICI, MURPHY, MURSAU, NOVAK,
7	7	SNYDER, SPIROS, SUMMERFIELD, TUSLER and VANDERMEER, cosponsored by
8	8	Senators FEYEN and QUINN. Referred to Committee on Housing and Real
9	9	Estate.
10	10	*AUTHORS SUBJECT TO CHANGE*
11	11	AN ACT to renumber 76.639 (3); to amend 71.07 (8b) (e), 71.28 (8b) (e), 71.47 (8b)
12	12	(e), 76.639 (5), 76.67 (2), 234.45 (1) (e) and 234.45 (4); and to create 76.639 (3)
13	13	(b), 234.45 (1) (em) and 234.45 (5m) of the statutes; relating to: changes to the
14	14	low-income housing tax credit.
15	15	Analysis by the Legislative Reference Bureau
16	16	Under current law, the Wisconsin Housing and Economic Development
17	17	Authority administers a low-income housing tax credit program. Under that
18	18	program, a person may claim as a credit against the person's income or franchise tax
19	19	liability, or against the person's liability for fees imposed on an insurer, the amount
20	20	allocated by WHEDA in an “allocation certificate” for a qualified low-income housing
21	21	project. The annual amount of tax credits WHEDA certifies under the program may
22	22	not exceed $42,000,000. The bill increases that annual cap to $100,000,000.
23	23	The bill also requires that WHEDA, if possible, ensure that at least 35 percent
24	24	of the tax credits it allocates each year under the program are for qualified
25	25	low-income housing projects in rural areas in Wisconsin and removes the
26	26	requirement that a qualified low-income housing project be financed with
27	27	tax-exempt bonds.
28	28	Finally, the bill makes a technical change to the credit for insurers so that an
29	29	insurer who is a shareholder of a tax-option corporation, a partner of a partnership,
30	30	or a member of a limited liability company may claim the credit.
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35	35	JK&MDE:cdc
36	36	ASSEMBLY BILL 39
37	37	For further information see the state fiscal estimate, which will be printed as
38	38	an appendix to this bill.
39	39	The people of the state of Wisconsin, represented in senate and assembly, do
40	40	enact as follows:
41	41	SECTION 1. 71.07 (8b) (e) of the statutes is amended to read:
42	42	71.07 (8b) (e) Administration. Section 71.28 (4) (e) to (h), as it applies to the
43	43	credit under s. 71.28 (4), applies to the credit under this subsection. In addition, if
44	44	a credit computed under this subsection is not entirely offset against Wisconsin
45	45	income or franchise taxes otherwise due, the unused balance may be carried back
46	46	and credited against Wisconsin income or franchise taxes otherwise due for the
47	47	previous taxable year.
48	48	SECTION 2. 71.28 (8b) (e) of the statutes is amended to read:
49	49	71.28 (8b) (e) Administration. Subsection (4) (e) to (h), as it applies to the credit
50	50	under sub. (4), applies to the credit under this subsection. In addition, if a credit
51	51	computed under this subsection is not entirely offset against Wisconsin income or
52	52	franchise taxes otherwise due, the unused balance may be carried back and credited
53	53	against Wisconsin income or franchise taxes otherwise due for the previous taxable
54	54	year.
55	55	SECTION 3. 71.47 (8b) (e) of the statutes is amended to read:
56	56	71.47 (8b) (e) Administration. Section 71.28 (4) (e) to (h), as it applies to the
57	57	credit under s. 71.28 (4), applies to the credit under this subsection. In addition, if
58	58	a credit computed under this subsection is not entirely offset against Wisconsin
59	59	income or franchise taxes otherwise due, the unused balance may be carried back
60	60	and credited against Wisconsin income or franchise taxes otherwise due for the
61	61	previous taxable year.
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85	85	SECTION 4
86	86	ASSEMBLY BILL 39
87	87	SECTION 4. 76.639 (3) of the statutes is renumbered 76.639 (3) (a).
88	88	SECTION 5. 76.639 (3) (b) of the statutes is created to read:
89	89	76.639 (3) (b) A partnership, limited liability company, or tax-option
90	90	corporation may not claim the credit under this section. An insurer, if a partner of
91	91	a partnership, member of a limited liability company, or shareholder in a tax-option
92	92	corporation, may claim the credit under this section based on eligible costs incurred
93	93	by the partnership, limited liability company, or tax-option corporation. The
94	94	partnership, limited liability company, or tax-option corporation shall calculate the
95	95	amount of the credit that may be claimed by the insurer as a partner, member, or
96	96	shareholder and shall provide that information to the insurer. If an insurer is a
97	97	shareholder of a tax-option corporation, the credit may be allocated in proportion to
98	98	its ownership interest as a shareholder. If an insurer is a partner of a partnership
99	99	or member of a limited liability company, credits may be claimed in proportion to the
100	100	insurer's ownership interest or allocated to the insurer as provided in a written
101	101	agreement among the partners or members that is entered into no later than the last
102	102	day of the taxable year of the partnership or limited liability company for which the
103	103	credit is claimed. Any insurer who claims the credit as allocated by a written
104	104	agreement shall provide a copy of the agreement with the tax return on which the
105	105	credit is claimed.
106	106	SECTION 6. 76.639 (5) of the statutes is amended to read:
107	107	76.639 (5) CARRY-FORWARD; CARRY-BACK . If the credit under sub. (2) is not
108	108	entirely offset against the fees under s. 76.60, 76.63, 76.65, 76.66, or 76.67 otherwise
109	109	due, the unused balance may be carried forward and credited against those fees for
110	110	the following 15 years to the extent that it is not offset by those fees otherwise due
111	111	in all the years between the year in which the expense was made and the year in
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138	138	SECTION 6 ASSEMBLY BILL 39
139	139	which the carry-forward credit is claimed. In addition, if a credit computed under
140	140	sub. (2) is not entirely offset against the fees under s. 76.60, 76.63, 76.65, 76.66, or
141	141	76.67 otherwise due, the unused balance may be carried back and credited against
142	142	the fees under s. 76.60, 76.63, 76.65, 76.66, or 76.67 otherwise due for the previous
143	143	taxable year.
144	144	SECTION 7. 76.67 (2) of the statutes is amended to read:
145	145	76.67 (2) If any domestic insurer is licensed to transact insurance business in
146	146	another state, this state may not require similar insurers domiciled in that other
147	147	state to pay taxes greater in the aggregate than the aggregate amount of taxes that
148	148	a domestic insurer is required to pay to that other state for the same year less the
149	149	credits under ss. 76.635, 76.636, 76.637, 76.638, 76.639, and 76.655, except that the
150	150	amount imposed shall not be less than the total of the amounts due under ss. 76.65
151	151	(2) and 601.93 and, if the insurer is subject to s. 76.60, 0.375 percent of its gross
152	152	premiums, as calculated under s. 76.62, less offsets allowed under s. 646.51 (7) or
153	153	under ss. 76.635, 76.636, 76.637, 76.638, 76.639, and 76.655 against that total, and
154	154	except that the amount imposed shall not be less than the amount due under s.
155	155	601.93.
156	156	SECTION 8. 234.45 (1) (e) of the statutes is amended to read:
157	157	234.45 (1) (e) “Qualified development” means a qualified low-income housing
158	158	project under section 42 (g) of the Internal Revenue Code that is financed with
159	159	tax-exempt bonds, pursuant to section 42 (i) (2) of the Internal Revenue Code, and
160	160	located in this state.
161	161	SECTION 9. 234.45 (1) (em) of the statutes is created to read:
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187	187	SECTION 9
188	188	ASSEMBLY BILL 39
189	189	234.45 (1) (em) “Rural area” means a city, village, or town in this state that has
190	190	a population of fewer than 10,000 and that is at least 25 miles from any city, village,
191	191	or town that has a population of at least 50,000.
192	192	SECTION 10. 234.45 (4) of the statutes is amended to read:
193	193	234.45 (4) ALLOCATION LIMITS. In any calendar year, the aggregate amount of
194	194	all state tax credits for which the authority certifies persons in allocation certificates
195	195	issued under sub. (3) in that year may not exceed $42,000,000 $100,000,000,
196	196	including all amounts each person is eligible to claim for each year of the credit
197	197	period, plus the total amount of all unallocated state tax credits from previous
198	198	calendar years and plus the total amount of all previously allocated state tax credits
199	199	that have been revoked or cancelled or otherwise recovered by the authority.
200	200	SECTION 11. 234.45 (5m) of the statutes is created to read:
201	201	234.45 (5m) PREFERENCE FOR RURAL COMMUNITIES. (a) Beginning on January
202	202	1, 2024, in approving applications for allocation certificates under sub. (3), the
203	203	authority shall ensure that at least 35 percent of the value of all state tax credits the
204	204	authority allocates each year are for qualified developments located in rural areas.
205	205	(b) Paragraph (a) does not apply in any year in which the authority cannot
206	206	satisfy the 35 percent allocation threshold because the authority does not receive a
207	207	sufficient number of applications for allocation certificates for qualified
208	208	developments located in rural areas that the authority determines are complete and
209	209	financially prudent.
210	210	(END)
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