Assembly Bill 182 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 eligibility criteria for tax credits.

The bill also introduces technical amendments regarding the allocation of credits for partnerships, limited liability companies, and tax-option corporations. It allows these entities to pass on credits to their partners, members, or shareholders based on eligible costs incurred, while ensuring that insurers who are partners or shareholders can claim credits proportionate to their ownership interests. Furthermore, the bill clarifies that individuals claiming credits are solely responsible for any tax liabilities arising from disputes with the Department of Revenue. Overall, these changes aim to enhance the accessibility and distribution of low-income housing tax credits, 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