Senate Bill 942 proposes significant changes to Wisconsin's low-income housing tax credit program, which is administered by the Wisconsin Housing and Economic Development Authority (WHEDA). The bill increases the annual cap on tax credits from $42 million to $100 million, allowing for greater financial support for qualified low-income housing projects. Additionally, it mandates that at least 35 percent of the tax credits allocated each year be designated for projects in rural areas, while also removing the previous requirement that such projects be financed with tax-exempt bonds. The bill introduces new definitions, including a specific definition for "rural area," and makes technical adjustments to ensure that partnerships, limited liability companies, and tax-option corporations can claim credits based on eligible costs.

The bill also includes several amendments to existing statutes, such as the removal of the requirement for financing through tax-exempt bonds in the definitions of qualified development. It clarifies that insurers who are shareholders or partners in these entities can claim credits based on their ownership interests. Furthermore, it establishes that individuals claiming credits are solely responsible for any tax liabilities arising from disputes with the Department of Revenue. Overall, the bill aims to enhance the effectiveness of the low-income housing tax credit program, particularly in supporting rural housing initiatives.

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, 234.45(4)