2019 - 2020 LEGISLATURE
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2019 ASSEMBLY BILL 544
October 14, 2019 - Introduced by Representatives NYGREN, TRANEL, SUMMERFIELD,
KITCHENS, ROHRKASTE, BORN, PETRYK, ZIMMERMAN, KERKMAN, KULP, KURTZ,
OLDENBURG, PLUMER, DITTRICH, FELZKOWSKI, TUSLER, MURSAU and QUINN,
cosponsored by Senators TESTIN, BERNIER and FEYEN. Referred to Committee
on Housing and Real Estate.
1 AN ACT to amend 76.67 (2); and to create 16.309 (4), 71.07 (8f), 71.10 (4) (fd),
2 71.28 (8f), 71.30 (3) (cu), 71.47 (8f), 71.49 (1) (cu), 76.6395 and 234.045 of the
3 statutes; relating to: workforce housing tax credits and economic development
4 revolving loan funds.
Analysis by the Legislative Reference Bureau
Workforce housing tax credits
This bill creates a workforce housing tax credit program administered by the
Wisconsin Housing and Economic Development Authority.
Under the bill, WHEDA may certify a person to claim a nonrefundable credit
to offset income and franchise taxes if all of the following conditions are satisfied:
1. The project for which the credit is issued is an eligible workforce housing
project. Under the bill, a project is an eligible workforce housing project only if the
project is for the construction or renovation of residential real property located in a
county with a population density of less than 155 persons per square mile, there is
a need for additional manufacturing workers in the area in which the project is
located, and a lack of adequate housing in the area is a barrier to filling that need.
2. The person is a lender financing an eligible workforce housing project, the
developer of the project, or the business for whose benefit the project is being carried
out.
3. The person has exhausted all funding available for the project from
community development block grants, local assistance, including tax incremental
financing, and assistance otherwise available from WHEDA.
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ASSEMBLY BILL 544
4. The occupants of the housing being constructed or renovated will have a
household income that satisfies the income limitations applicable for the
homeownership mortgage loan program administered by WHEDA under current
law.
The bill requires WHEDA to establish a competitive process for the award of
tax credits that gives priority to all of the following:
1. The number of jobs that will be created in connection with the eligible
workforce housing project.
2. The amount of matching funds secured by the applicant.
3. The applicant's readiness to proceed with the project.
Under the bill, WHEDA may not certify a person to claim a workforce housing
tax credit in an amount that exceeds 50 percent of the total cost of the eligible
workforce housing project. Additionally, WHEDA may not award more than
$10,000,000 in workforce housing tax credits and no credit may be awarded after
December 31, 2021. The bill requires WHEDA to transfer $10,000,000 from its
surplus fund to the state's general fund as an offset against the tax credits WHEDA
awards under the program.
Additionally, the bill includes certain contracting and tax credit revocation
requirements and requires WHEDA to coordinate with the Wisconsin Economic
Development Corporation to administer the tax credit program. WHEDA must
submit a report on the program to the Joint Committee on Finance no later than
September 31, 2022.
Reports on economic development revolving loan funds
This bill also requires the Department of Administration to submit an annual
report to the Joint Committee on Finance concerning moneys held by DOA in
connection with economic development revolving loan funds funded by federal
community development block grants administered by DOA, including all moneys
derived from the liquidation and close-out of such a revolving loan fund. The report
must include all of the following:
1. The balance of the account associated with each revolving loan fund.
2. The accounts receivable for each such account.
3. A detailed description of all expenditures from the account, including a
description of each project funded by a grant awarded from the account.
4. A detailed description of all expenditures from the account DOA intends to
make before March 15 of the year following the report. Under the bill, if JCF objects
to any such intended expenditure, JCF may reallocate the moneys consistent with
federal requirements for expenditure of the moneys.
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:
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ASSEMBLY BILL 544 SECTION 1
1 SECTION 1. 16.309 (4) of the statutes is created to read:
2 16.309 (4) (a) In this subsection, “revolving loan fund account” means all
3 moneys held by the department in connection with each economic development
4 revolving loan fund that is funded by a community development block grant under
5 this section, including all moneys derived from the liquidation and close-out of the
6 revolving loan fund.
7 (b) Annually, no later than March 15, the department shall submit a report to
8 the joint committee on finance that includes all of the following information for each
9 revolving loan fund account:
10 1. The account balance.
11 2. All accounts receivable, if any.
12 3. A detailed description of all account expenditures, including a description
13 of each project funded by a grant awarded from the account.
14 4. A detailed description of all account expenditures the department intends
15 to make before March 15 of the year following the report.
16 (c) If the joint committee on finance objects to any intended expenditure of
17 moneys detailed under par. (b) 4., the committee may reallocate those moneys
18 consistent with federal requirements for expenditure of the moneys.
19 SECTION 2. 71.07 (8f) of the statutes is created to read:
20 71.07 (8f) WORKFORCE HOUSING CREDIT. (a) Definitions. In this subsection:
21 1. “Allocation certificate" means an allocation certificate issued by the
22 Wisconsin Housing and Economic Development Authority under s. 234.045 (3) (a).
23 2. “Claimant” means a person who files a claim under this subsection.
24 (b) Filing claims. For taxable years beginning after December 31, 2019, subject
25 to the limitations provided in this subsection and in s. 234.045, a claimant may claim
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ASSEMBLY BILL 544 SECTION 2
1 as a credit against the tax imposed under s. 71.02, up to the amount of the tax, the
2 amount specified in the allocation certificate.
3 (c) Limitations. 1. No person may claim the credit under par. (b) unless the
4 claimant includes with the claimant's return a copy of the allocation certificate.
5 2. A partnership, limited liability company, or tax-option corporation may not
6 claim the credit under this subsection, but the eligibility for and amount of the credit
7 are based on the amount specified in the allocation certificate. A partnership, limited
8 liability company, or tax-option corporation shall compute the amount of credit that
9 each of its partners, members, or shareholders may claim and shall provide that
10 information to each of them. Partners, members, and shareholders may claim the
11 credit in proportion to their ownership interests.
12 (d) Carry-forward credit. If the credit that a claimant may claim under par.
13 (b) is not entirely offset against Wisconsin income or franchise taxes otherwise due,
14 the unused balance shall be carried forward and credited against Wisconsin income
15 or franchise taxes otherwise due for the following 10 taxable years to the extent not
16 offset by these taxes in all intervening years between the year in which the credit is
17 allowed under the allocation certificate and the year in which the carry-forward
18 credit is claimed.
19 (e) Transfer. Any person may sell or otherwise transfer the credit under par.
20 (b), in whole or in part, to another person who is subject to the taxes or fees imposed
21 under s. 71.02, 71.23, or 71.43 or subch. III of ch. 76 if the person notifies the
22 department of the transfer and submits with the notification a copy of the transfer
23 documents, and the department certifies the change in the credit's ownership.
24 (f) Administration. Section 71.28 (4) (e), (g), and (h), as it applies to the credit
25 under s. 71.28 (4), applies to the credit under this subsection.
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ASSEMBLY BILL 544 SECTION 3
1 SECTION 3. 71.10 (4) (fd) of the statutes is created to read:
2 71.10 (4) (fd) Workforce housing credit under s. 71.07 (8f).
3 SECTION 4. 71.28 (8f) of the statutes is created to read:
4 71.28 (8f) WORKFORCE HOUSING CREDIT. (a) Definitions. In this subsection:
5 1. “Allocation certificate" means an allocation certificate issued by the
6 Wisconsin Housing and Economic Development Authority under s. 234.045 (3) (a).
7 2. “Claimant” means a person who files a claim under this subsection.
8 (b) Filing claims. For taxable years beginning after December 31, 2019, subject
9 to the limitations provided in this subsection and in s. 234.045, a claimant may claim
10 as a credit against the tax imposed under s. 71.23, up to the amount of the tax, the
11 amount specified in the allocation certificate.
12 (c) Limitations. 1. No person may claim the credit under par. (b) unless the
13 claimant includes with the claimant's return a copy of the allocation certificate.
14 2. A partnership, limited liability company, or tax-option corporation may not
15 claim the credit under this subsection, but the eligibility for and amount of the credit
16 are based on the amount specified in the allocation certificate. A partnership, limited
17 liability company, or tax-option corporation shall compute the amount of credit that
18 each of its partners, members, or shareholders may claim and shall provide that
19 information to each of them. Partners, members, and shareholders may claim the
20 credit in proportion to their ownership interests.
21 (d) Carry-forward credit. If the credit that a claimant may claim under par.
22 (b) is not entirely offset against Wisconsin income or franchise taxes otherwise due,
23 the unused balance shall be carried forward and credited against Wisconsin income
24 or franchise taxes otherwise due for the following 10 taxable years to the extent not
25 offset by these taxes in all intervening years between the year in which the credit is
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1 allowed under the allocation certificate and the year in which the carry-forward
2 credit is claimed.
3 (e) Transfer. Any person may sell or otherwise transfer the credit under par.
4 (b), in whole or in part, to another person who is subject to the taxes or fees imposed
5 under s. 71.02, 71.23, or 71.43 or subch. III of ch. 76 if the person notifies the
6 department of the transfer and submits with the notification a copy of the transfer
7 documents, and the department certifies the change in the credit's ownership.
8 (f) Administration. Subsection (4) (e), (g), and (h), as it applies to the credit
9 under sub. (4), applies to the credit under this subsection.
10 SECTION 5. 71.30 (3) (cu) of the statutes is created to read:
11 71.30 (3) (cu) Workforce housing credit under s. 71.28 (8f).
12 SECTION 6. 71.47 (8f) of the statutes is created to read:
13 71.47 (8f) WORKFORCE HOUSING CREDIT. (a) Definitions. In this subsection:
14 1. “Allocation certificate" means an allocation certificate issued by the
15 Wisconsin Housing and Economic Development Authority under s. 234.045 (3) (a).
16 2. “Claimant” means a person who files a claim under this subsection.
17 (b) Filing claims. For taxable years beginning after December 31, 2019, subject
18 to the limitations provided in this subsection and in s. 234.045, a claimant may claim
19 as a credit against the tax imposed under s. 71.43, up to the amount of the tax, the
20 amount specified in the allocation certificate.
21 (c) Limitations. 1. No person may claim the credit under par. (b) unless the
22 claimant includes with the claimant's return a copy of the allocation certificate.
23 2. A partnership, limited liability company, or tax-option corporation may not
24 claim the credit under this subsection, but the eligibility for and amount of the credit
25 are based on the amount specified in the allocation certificate. A partnership, limited
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1 liability company, or tax-option corporation shall compute the amount of credit that
2 each of its partners, members, or shareholders may claim and shall provide that
3 information to each of them. Partners, members, and shareholders may claim the
4 credit in proportion to their ownership interests.
5 (d) Carry-forward credit. If the credit that a claimant may claim under par.
6 (b) is not entirely offset against Wisconsin income or franchise taxes otherwise due,
7 the unused balance shall be carried forward and credited against Wisconsin income
8 or franchise taxes otherwise due for the following 10 taxable years to the extent not
9 offset by these taxes in all intervening years between the year in which the credit is
10 allowed under the allocation certificate and the year in which the carry-forward
11 credit is claimed.
12 (e) Transfer. Any person may sell or otherwise transfer the credit under par.
13 (b), in whole or in part, to another person who is subject to the taxes or fees imposed
14 under s. 71.02, 71.23, or 71.43 or subch. III of ch. 76 if the person notifies the
15 department of the transfer and submits with the notification a copy of the transfer
16 documents, and the department certifies the change in the credit's ownership.
17 (f) Administration. Section 71.28 (4) (e), (g), and (h), as it applies to the credit
18 under s. 71.28 (4), applies to the credit under this subsection.
19 SECTION 7. 71.49 (1) (cu) of the statutes is created to read:
20 71.49 (1) (cu) Workforce housing credit under s. 71.47 (8f).
21 SECTION 8. 76.6395 of the statutes is created to read:
22 76.6395 Workforce housing credit. (1) DEFINITIONS. In this section:
23 (a) “Allocation certificate" means an allocation certificate issued by the
24 Wisconsin Housing and Economic Development Authority under s. 234.045 (3) (a).
25 (b) “Claimant” means a person who files a claim under this subsection.
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ASSEMBLY BILL 544 SECTION 8
1 (2) FILING CLAIMS. For taxable years beginning after December 31, 2019,
2 subject to the limitations provided in this section and in s. 234.045, a claimant may
3 claim as a credit against the fees imposed under s. 76.60, 76.63, 76.65, 76.66, or 76.67
4 the amount specified in the allocation certificate.
5 (3) LIMITATIONS. No person may claim the credit under sub. (2) unless the
6 claimant includes with the claimant's return a copy of the allocation certificate.
7 (4) CARRY-FORWARD. If the credit that a claimant may claim under sub. (2) is
8 not entirely offset against the fees under s. 76.60, 76.63, 76.65, 76.66, or 76.67
9 otherwise due, the unused balance shall be carried forward and credited against
10 those fees for the following 10 taxable years to the extent not offset by the fees in all
11 intervening years between the year in which the credit is allowed under the
12 allocation certificate and the year in which the carry-forward credit is claimed.
13 (5) TRANSFER. Any person may sell or otherwise transfer the credit under sub.
14 (2), in whole or in part, to another person who is subject to the taxes or fees imposed
15 under s. 71.02, 71.23, 71.43, 76.60, 76.63, 76.65, 76.66, or 76.67 if the person notifies
16 the department of the transfer and submits with the notification a copy of the
17 transfer documents, and the department certifies the change in the credit's
18 ownership.
19 SECTION 9. 76.67 (2) of the statutes is amended to read:
20 76.67 (2) If any domestic insurer is licensed to transact insurance business in
21 another state, this state may not