Assembly Bill 375 proposes significant modifications to the historic rehabilitation tax credit in Wisconsin, which allows taxpayers to claim a credit for expenses incurred in rehabilitating certified historic structures. The bill repeals certain existing provisions and amends others to streamline the process for claiming these credits. Notably, it removes the federal requirement that rehabilitation expenditures exceed the greater of the taxpayer's adjusted basis in the property or $5,000, while maintaining a minimum expenditure threshold of $50,000. Additionally, the bill eliminates the requirement for the State Historic Preservation Officer's recommendation for federal approval when claiming only the state credit. It also changes the timing for claiming the credit, allowing taxpayers to claim the full credit in one year instead of spreading it over five years as required by federal law.

Furthermore, the bill introduces new provisions, including a sunset for credits related to non-certified historic structures and modifies the cap on total tax credits that can be claimed for projects on the same parcel to apply only within a single 10-year period. The bill creates new sections to define the credit for rehabilitated buildings placed in service after December 31, 2025, and establishes that credits must be claimed in the year the building is placed in service unless an election is made to claim based on progress expenditures. Overall, these changes aim to enhance the accessibility and efficiency of the historic rehabilitation tax credit program in Wisconsin.

Statutes affected:
Bill Text: 71.07(9m)(a)1m, 71.07, 71.07(9m)(a)2m, 71.07(9m)(a)3, 71.07(9m)(c)(intro.), 71.07(9m)(c)1, 71.07(9m)(cm), 71.07(9m)(cn)(intro.), 71.07(9m)(g)1, 71.07(9m)(h), 71.28(6)(a)1m, 71.28, 71.28(6)(a)2m, 71.28(6)(a)3, 71.28(6)(c)(intro.), 71.28(6)(c)1, 71.28(6)(cm), 71.28(6)(cn)(intro.), 71.28(6)(g)1