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 these 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 partnerships, limited liability companies, and tax-option corporations can claim tax credits. It allows these entities to pass credits to their partners, members, or shareholders based on eligible costs incurred, while ensuring that the credit allocation is documented through written agreements. Furthermore, it clarifies that insurers who are shareholders or partners can claim credits based on their ownership interests. Overall, these changes aim to enhance the accessibility and effectiveness of the low-income housing tax credit program, particularly in rural communities.

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