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2013 - 2014 LEGISLATURE
April 5, 2013 - Introduced by Senators Gudex, L. Taylor, Lassa, Lehman, Harris
and Schultz, cosponsored by Representatives Weininger, Jacque, Schraa,
Berceau, Jorgensen, T. Larson, Mason, Ohnstad, Spiros, Endsley, Wright
and Genrich. Referred to Committee on Workforce Development, Forestry,
Mining, and Revenue.
SB132,1,6 1An Act to renumber and amend 71.07 (9m) (a), 71.07 (9m) (c), 71.28 (6) (a),
271.28 (6) (c), 71.47 (6) (a) and 71.47 (6) (c); and to create 71.07 (9m) (a) 2., 71.07
3(9m) (a) 3., 71.07 (9m) (c) 2., 71.07 (9m) (h), 71.28 (6) (a) 2., 71.28 (6) (a) 3., 71.28
4(6) (c) 2., 71.28 (6) (h), 71.47 (6) (a) 2., 71.47 (6) (a) 3., 71.47 (6) (c) 2. and 71.47
5(6) (h) of the statutes; relating to: increasing the amount of the supplement to
6the federal historic rehabilitation tax credit.
Analysis by the Legislative Reference Bureau
Under current law, a person may claim an income and franchise tax credit for
5 percent of the qualified rehabilitation expenditures, as defined under the federal
Internal Revenue Code, for certified historic structures on property located in this
state, if construction begins after December 31, 1988, and the rehabilitated property
is placed in service after June 30, 1989. The credit is a supplement to the federal tax
credit for 20 percent of the qualified rehabilitation expenditures for certified historic
structures. The federal credit, and the supplemental state credit, apply to
nonresidential real property and residential rental property.
Under this bill, a person may claim an income and franchise tax credit for 20
percent of the qualified rehabilitation expenses, as defined under the federal
Internal Revenue Code, for certified historic structures on property located in this
state, if the cost of the person's qualified rehabilitation expenditures is at least
$50,000 and the rehabilitated property is placed in service after December 31, 2012,
and before January 1, 2023.

The bill also allows a person to claim a credit equal to 5 percent of the qualified
rehabilitation expenses for qualified rehabilitated buildings, as defined under the
federal Internal Revenue Code, located in this state. The credit is similar to the
federal credit for rehabilitating a building that was first placed in service before
1936, except that the federal credit is 10 percent of the qualified rehabilitation
expenses.
Under the bill, the Department of Revenue, in conjunction with the State
Historical Society, must submit a report to the Joint Committee on Finance (JCF),
no later than June 30, 2018, describing the economic impact of the tax credits and
making a recommendation as to whether the tax credits should continue. The
recommendation, however, may be implemented only upon approval of JCF.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB132, s. 1 1Section 1. 71.07 (9m) (a) of the statutes is renumbered 71.07 (9m) (a) 1. and
2amended to read:
SB132,2,103 71.07 (9m) (a) 1. Any For taxable years beginning before January 1, 2013, any
4person may credit against taxes otherwise due under this chapter, up to the amount
5of those taxes, an amount equal to 5% of the costs of qualified rehabilitation
6expenditures, as defined in section 47 (c) (2) of the internal revenue code, for certified
7historic structures on property located in this state if the physical work of
8construction or destruction in preparation for construction begins after December
931, 1988, and the rehabilitated property is placed in service after June 30, 1989, and
10before January 1, 2013
.
SB132, s. 2 11Section 2. 71.07 (9m) (a) 2. of the statutes is created to read:
SB132,3,412 71.07 (9m) (a) 2. For taxable years beginning after December 31, 2012, and
13before January 1, 2023 any person may claim as a credit against taxes otherwise due
14under s. 71.02, up to the amount of those taxes, an amount equal to 20 percent of the
15costs of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the

1Internal Revenue Code, for certified historic structures on property located in this
2state, if the cost of the person's qualified rehabilitation expenditures is at least
3$50,000 and the rehabilitated property is placed in service after December 31, 2012,
4and before January 1, 2023.
SB132, s. 3 5Section 3. 71.07 (9m) (a) 3. of the statutes is created to read:
SB132,3,146 71.07 (9m) (a) 3. For taxable years beginning after December 31, 2012, and
7before January 1, 2023, any person may claim as a credit against taxes otherwise due
8under s. 71.02, up to the amount of those taxes, an amount equal to 5 percent of the
9costs of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the
10Internal Revenue Code, for qualified rehabilitated buildings, as defined in section 47
11(c) (1) of the Internal Revenue Code, on property located in this state, if the cost of
12the person's qualified rehabilitation expenditures is at least $50,000 and the
13rehabilitated property is placed in service after December 31, 2012, and before
14January 1, 2023.
SB132, s. 4 15Section 4. 71.07 (9m) (c) of the statutes is renumbered 71.07 (9m) (c) (intro.)
16and amended to read:
SB132,3,1917 71.07 (9m) (c) (intro.) No person may claim the credit under this subsection
18unless the claimant includes with the claimant's return evidence any of the
19following:
SB132,3,24 201. Evidence that the rehabilitation was recommended by the state historic
21preservation officer for approval by the secretary of the interior under 36 CFR 67.6
22before the physical work of construction, or destruction in preparation for
23construction, began and that the rehabilitation was approved by the secretary of the
24interior under 36 CFR 67.6.
SB132, s. 5 25Section 5. 71.07 (9m) (c) 2. of the statutes is created to read:
SB132,4,2
171.07 (9m) (c) 2. Evidence that the taxpayer obtained written certification from
2the state historic preservation officer that:
SB132,4,113 a. The property is listed on the national register of historic places in Wisconsin
4or the state register of historic places, or is determined by the state historical society
5to be eligible for listing on the national register of historic places in Wisconsin or the
6state register of historic places, or is located in a historic district that is listed in the
7national register of historic places in Wisconsin or the state register of historic places
8and is certified by the state historic preservation officer as being of historic
9significance to the district, or is an outbuilding of an otherwise eligible property
10certified by the state historic preservation officer as contributing to the historic
11significance of the property.
SB132,4,1412 b. The proposed preservation or rehabilitation plan complies with standards
13promulgated under s. 44.02 (24) and the completed preservation or rehabilitation
14substantially complies with the proposed plan.
SB132,4,1615 c. The costs are not incurred to acquire any building or interest in a building
16or to enlarge an existing building.
SB132,4,1817 d. The costs were not incurred before the state historical society approved the
18proposed preservation or rehabilitation plan.
SB132, s. 6 19Section 6. 71.07 (9m) (h) of the statutes is created to read:
SB132,4,2320 71.07 (9m) (h) A person who is eligible to claim the credit under par. (a) 2. or
213. may sell or otherwise transfer the credit to another person who is subject to the
22taxes imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department
23of the transfer and submits with the notification a copy of the transfer documents.
SB132, s. 7 24Section 7. 71.28 (6) (a) of the statutes is renumbered 71.28 (6) (a) 1. and
25amended to read:
SB132,5,8
171.28 (6) (a) 1. Any For taxable years beginning before January 1, 2013, any
2person may credit against taxes otherwise due under this chapter, up to the amount
3of those taxes, an amount equal to 5% of the costs of qualified rehabilitation
4expenditures, as defined in section 47 (c) (2) of the internal revenue code, for certified
5historic structures on property located in this state if the physical work of
6construction or destruction in preparation for construction begins after December
731, 1988, and the rehabilitated property is placed in service after June 30, 1989, and
8before January 1, 2013
.
SB132, s. 8 9Section 8. 71.28 (6) (a) 2. of the statutes is created to read:
SB132,5,1710 71.28 (6) (a) 2. For taxable years beginning after December 31, 2012, and before
11January 1, 2023, any person may claim as a credit against taxes otherwise due under
12s. 71.23, up to the amount of those taxes, an amount equal to 20 percent of the costs
13of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal
14Revenue Code, for certified historic structures on property located in this state, if the
15cost of the person's qualified rehabilitation expenditures is at least $50,000 and the
16rehabilitated property is placed in service after December 31, 2012, and before
17January 1, 2023.
SB132, s. 9 18Section 9. 71.28 (6) (a) 3. of the statutes is created to read:
SB132,6,219 71.28 (6) (a) 3. For taxable years beginning after December 31, 2012, and before
20January 1, 2023, any person may claim as a credit against taxes otherwise due under
21s. 71.23, up to the amount of those taxes, an amount equal to 5 percent of the costs
22of qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal
23Revenue Code, for qualified rehabilitated buildings, as defined in section 47 (c) (1)
24of the Internal Revenue Code, on property located in this state, if the cost of the
25person's qualified rehabilitation expenditures is at least $50,000 and the

1rehabilitated property is placed in service after December 31, 2012, and before
2January 1, 2023.
SB132, s. 10 3Section 10. 71.28 (6) (c) of the statutes is renumbered 71.28 (6) (c) (intro.) and
4amended to read:
SB132,6,75 71.28 (6) (c) (intro.) No person may claim the credit under this subsection
6unless the claimant includes with the claimant's return evidence any of the
7following:
SB132,6,12 81. Evidence that the rehabilitation was recommended by the state historic
9preservation officer for approval by the secretary of the interior under 36 CFR 67.6
10before the physical work of construction, or destruction in preparation for
11construction, began and that the rehabilitation was approved by the secretary of the
12interior under 36 CFR 67.6.
SB132, s. 11 13Section 11. 71.28 (6) (c) 2. of the statutes is created to read:
SB132,6,1514 71.28 (6) (c) 2. Evidence that the taxpayer obtained written certification from
15the state historic preservation officer that:
SB132,6,2416 a. The property is listed on the national register of historic places in Wisconsin
17or the state register of historic places, or is determined by the state historical society
18to be eligible for listing on the national register of historic places in Wisconsin or the
19state register of historic places, or is located in a historic district that is listed in the
20national register of historic places in Wisconsin or the state register of historic places
21and is certified by the state historic preservation officer as being of historic
22significance to the district, or is an outbuilding of an otherwise eligible property
23certified by the state historic preservation officer as contributing to the historic
24significance of the property.
SB132,7,3
1b. The proposed preservation or rehabilitation plan complies with standards
2promulgated under s. 44.02 (24) and the completed preservation or rehabilitation
3substantially complies with the proposed plan.
SB132,7,54 c. The costs are not incurred to acquire any building or interest in a building
5or to enlarge an existing building.
SB132,7,76 d. The costs were not incurred before the state historical society approved the
7proposed preservation or rehabilitation plan.
SB132, s. 12 8Section 12. 71.28 (6) (h) of the statutes is created to read:
SB132,7,129 71.28 (6) (h) A person who is eligible to claim the credit under par. (a) 2. or 3.
10may sell or otherwise transfer the credit to another person who is subject to the taxes
11imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
12transfer and submits with the notification a copy of the transfer documents.
SB132, s. 13 13Section 13. 71.47 (6) (a) of the statutes is renumbered 71.47 (6) (a) 1. and
14amended to read:
SB132,7,2215 71.47 (6) (a) 1. Any For taxable years beginning before January 1, 2013, any
16person may credit against taxes otherwise due under this chapter, up to the amount
17of those taxes, an amount equal to 5% of the costs of qualified rehabilitation
18expenditures, as defined in section 47 (c) (2) of the internal revenue code, for certified
19historic structures on property located in this state if the physical work of
20construction or destruction in preparation for construction begins after December
2131, 1988, and the rehabilitated property is placed in service after June 30, 1989, and
22before January 1, 2013
.
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