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 mandates that at least 35 percent of the tax credits allocated each year must be designated for qualified low-income housing projects located in rural areas, defined as cities, villages, or towns with populations under 10,000 and at least 10 miles from larger municipalities. Additionally, the bill removes the requirement that these projects be financed with tax-exempt bonds, thereby broadening the scope of eligible projects.

The bill also introduces technical amendments regarding the credit claims process for partnerships, limited liability companies, and tax-option corporations. It allows insurers who are shareholders or partners in these entities to claim credits based on eligible costs incurred, with specific provisions for calculating and reporting these credits. The changes aim to streamline the process and ensure that the tax credits are more accessible, particularly for rural developments, while also clarifying the responsibilities of those claiming the credits in relation to any disputes with the Department of Revenue.

Statutes affected:
Bill Text: 71.07(8b)(a)7, 71.07, 71.07(8b)(c)2, 71.28(8b)(a)7, 71.28, 71.28(8b)(c)2, 71.47(8b)(a)7, 71.47, 71.47(8b)(c)2, 76.639(1)(g), 76.639, 76.67(2), 76.67, 234.45(1)(e), 234.45