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

The bill also introduces technical adjustments regarding how tax credits can be claimed by 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, while ensuring that the calculation and allocation of credits are clearly communicated to the respective parties. The changes are set to take effect for taxable years beginning after December 31, 2024.

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