Changes to the low-income housing tax credit. (FE)
If enacted, SB178 will amend various sections of state statutes related to tax credits for low-income housing. It will enable greater flexibility for partnerships, limited liability companies, and tax-option corporations by allowing them to allocate tax credits based on their ownership interests rather than being unable to claim credits directly. This change could potentially stimulate investment in housing developments and improve the availability of affordable housing options across Wisconsin, particularly in rural areas that often face unique challenges in housing development.
Senate Bill 178 proposes significant changes to the low-income housing tax credit program administered by the Wisconsin Housing and Economic Development Authority (WHEDA). The bill aims to ensure that at least 35 percent of the tax credits allocated each year are designated for qualified low-income housing projects located in rural areas of Wisconsin. This initiative seeks to address the housing shortage in less populated areas and promote economic development in these communities. Additionally, the bill removes the previous requirement that a qualified low-income housing project be financed with tax-exempt bonds, broadening the avenues through which these projects can be funded.
Notably, SB178 may encounter some contention related to its focus on rural housing projects. While proponents argue that the bill will fill a critical gap in housing options and encourage the growth of rural communities, critics may raise concerns about the adequacy of resources and the impact on urban housing needs. Balancing investments in both rural and urban housing will be a crucial aspect of the discussion moving forward, as the legislature seeks to ensure equitable housing solutions are provided statewide.