2025 - 2026 LEGISLATURE
LRB-2561/1
JK&MDE:cdc
2025 ASSEMBLY BILL 182
April 15, 2025 - Introduced by Representatives ARMSTRONG, GREEN, BARE,
GOODWIN, GUNDRUM, B. JACOBSON, KITCHENS, KREIBICH, KRUG, PENTERMAN,
PIWOWARCZYK, SUBECK, TENORIO and ROE, cosponsored by Senators QUINN,
JAMES, CARPENTER, DASSLER-ALFHEIM, HABUSH SINYKIN, KEYESKI, RATCLIFF,
WALL and WIRCH. Referred to Committee on Housing and Real Estate.
***AUTHORS SUBJECT TO CHANGE***
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; relating to: changes to the low-income housing
tax credit.
Analysis by the Legislative Reference Bureau
Under current law, the Wisconsin Housing and Economic Development
Authority administers a low-income housing tax credit program. 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 Xallocation certificateY 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
1
2
3
4
5 2025 - 2026 Legislature
ASSEMBLY BILL 182
- 2 - LRB-2561/1
JK&MDE:cdc
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. XQualified developmentY 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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19 2025 - 2026 Legislature
ASSEMBLY BILL 182
- 3 - LRB-2561/1
JK&MDE:cdc
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.
SECTION 3. 71.28 (8b) (a) 7. of the statutes is amended to read:
71.28 (8b) (a) 7. XQualified developmentY 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 4. 71.28 (8b) (c) 2. of the statutes is amended to read:
71.28 (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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24 2025 - 2026 Legislature
ASSEMBLY BILL 182
- 4 - LRB-2561/1
JK&MDE:cdc
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.
SECTION 5. 71.47 (8b) (a) 7. of the statutes is amended to read:
71.47 (8b) (a) 7. XQualified developmentY 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 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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24 2025 - 2026 Legislature
ASSEMBLY BILL 182
- 5 - LRB-2561/1
JK&MDE:cdc
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.
SECTION 7. 76.639 (1) (g) of the statutes is amended to read:
76.639 (1) (g) XQualified developmentY 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 8. 76.639 (3) of the statutes is renumbered 76.639 (3) (a).
SECTION 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 corporation. The
partnership, limited liability company, or tax-option corporation shall calculate the
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24 2025 - 2026 Legislature
ASSEMBLY BILL 182
- 6 - LRB-2561/1
JK&MDE:cdc
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.
SECTION 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.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23 2025 - 2026 Legislature
ASSEMBLY BILL 182
- 7 - LRB-2561/1
JK&MDE:cdc
SECTION 11
SECTION 11. 234.45 (1) (e) of the statutes is amended to read:
234.45 (1) (e) XQualified developmentY 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 12. 234.45 (1) (em) of the statutes is created to read:
234.45 (1) (em) XRural areaY 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.
SECTION 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.
SECTION 14. Initial applicability.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22 2025 - 2026 Legislature
ASSEMBLY BILL 182
- 8 - LRB-2561/1
JK&MDE:cdc
SECTION 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.
(END)
1
2
3