Under current law, a person who is eligible to claim a federal income tax credit
equal to either 10% of qualified expenses related to rehabilitating a qualified
building in this state or 20% of qualified expenses related to rehabilitating historic
property in this state may also claim a supplemental state income or franchise tax
credit that is equal to 5% of such qualified expenses.
Under the bill, for taxable years beginning in 2004, a person who is not eligible
to claim the federal rehabilitation tax credit because the person's qualified expenses
do not satisfy the adjusted-basis requirement under federal law may claim the
supplemental state rehabilitation credit, if the person's qualified expenses are at
least $10,000 and the rehabilitation is approved, and the expenses are certified, by
the state Historical Society. In addition, a person who would otherwise be eligible
to claim the federal rehabilitation tax credit, except that the rehabilitated property
is not a certified historic structure as defined under the Internal Revenue Code, may
claim the supplemental state rehabilitation credit in an amount equal to 20% of
qualified expenses, if the rehabilitated property is located in a certified downtown

or is included in a business area revitalization under the State Main Street Program
and the state Historical Society approves the rehabilitation. The state Historical
Society may charge and collect a fee for such certifications in an amount equal to 1%
of the qualified expenses, but not less than $150 nor more than $10,000.
Under current law, a person may claim an income tax credit equal to 25% of the
qualified expenses to preserve or rehabilitate historic property that is used as an
owner-occupied personal residence. The state Historical Society certifies such
expenses.
Under this bill, for taxable years beginning in 2004, a person who would
otherwise be eligible to claim the state income tax credit for preserving or
rehabilitating historic property, except that the preserved or rehabilitated property
is not historic property, may claim the state income tax credit in an amount equal to
30% of qualified expenses, if the preserved or rehabilitated property is located in a
certified downtown or is included in a business area revitalization under the State
Main Street Program and the state Historical Society approves the preservation or
rehabilitation. The state Historical Society may charge and collect a fee of $150 for
certifying such expenses.
Under current law, if a person who claims the income tax credit for qualified
expenses to preserve or rehabilitate an owner-occupied personal residence sells the
property within five years from the date on which the preservation or rehabilitation
is completed, or if the state Historical Society determines that the preservation or
rehabilitation does not comply with the standards established by the society, the
person who claimed the tax credit must pay to the state all, or a portion, of the
amount of the credit that the person received, depending on the date on which the
person sold the property or on the date on which the preservation or rehabilitation
does not comply with state Historical Society standards.
Under this bill, if a person who claims the supplemental state income or
franchise tax credit for qualified expenses related to preserving or rehabilitating
historic property in this state sells the property within five years from the date on
which the preservation or rehabilitation is completed, or if the state Historical
Society determines that the preservation or rehabilitation does not comply with the
standards established by the society, the person who claimed the tax credit must pay
to the state all, or a portion, of the amount of the credit that the person received,
depending on the date on which the person sold the property or the date on which the
preservation or rehabilitation does not comply with state Historical Society
standards.
Downtown development
Certification and promotion of downtowns
This bill requires the department to develop and publish guidelines to aid
communities in reconstructing central business districts that are destroyed or
severely damaged in major disasters. The bill also requires the department to
promulgate rules pursuant to which the department will certify downtowns. In
addition, under the bill, the Department of Tourism must promote travel to these
certified downtowns and to business areas that are or have been the subject of

revitalization efforts under the State Main Street Program (a program that promotes
revitalization efforts in certain business areas).
Currently, the Building Commission submits biennial recommendations to the
legislature for revisions to the long-range state building program. No state agency
or authority may engage any person to undertake construction of a building for the
agency costing more than $100,000 without prior approval of the commission. In
addition, the commission has authority to lease land and buildings to be used for
state purposes unless that authority is granted by law to another state agency.
This bill provides that the commission shall not authorize construction of any
state office building to be located outside of a downtown area certified by the
Department of Commerce as required under the bill, unless the cost of locating the
building inside such a downtown area is more than 10% greater than the average cost
of locating the building in that portion of the geographic area that is served by the
functions to be performed in the building on the date of initial occupancy outside of
such a downtown area, as determined by the Department of Administration (DOA).
The bill also provides that the commission, in preparing its recommendations for the
long-range building program, shall not recommend construction of a state office
building to be located outside of such a downtown area, unless the commission would
be authorized to permit construction of that building in the recommended location.
In addition, the bill prohibits the commission from approving the lease of any
building for state office facilities to be located outside of such a downtown area unless
the cost of locating the facilities inside such a downtown area is more than 10%
greater than the average cost of locating the facilities in that portion of the
geographic area that is served by the functions to be performed in the facilities on
the date of initial occupancy under the lease outside of such a downtown area, as
determined by DOA.
This bill imposes additional requirements relating to highway projects that are
funded by the Department of Transportation (DOT) and that involve a highway in
a business area included in the State Main Street Program or in a downtown certified
by the Department of Commerce. First, DOT must consult, during preliminary
stages of a proposed highway project, on issues concerning the proposed project and
its effect on the business or certified downtown area with the Department of
Commerce and, unless none exists, with a local board or downtown planning
organization of that municipality. Second, DOT must give priority to retaining any
on-street parking with respect to a highway-widening project in a business or
certified downtown area.
This bill specifies that DOT, in providing any matching funds for local highway
projects, is required to fund the construction of any highway lane without regard to
whether it is a travel lane or a parking lane. This requirement applies only to local
highway projects that are in business areas under the State Main Street Program
or in downtowns certified by the Department of Commerce.
Major highway projects
Under current law, DOT administers a major highway projects program. A
major highway project is a project having a total cost of more than $5,000,000 and
involving construction of a new highway 2.5 miles or more in length; reconstruction

or reconditioning of an existing highway that relocates at least 2.5 miles of the
highway or adds one or more lanes at least five miles in length to the highway; or
improvement of an existing multilane divided highway to freeway standards. Any
major highway project, unlike other highway construction projects undertaken by
DOT, requires the approval of the Transportation Projects Commission and the
legislature before the project may be constructed. The current list of major highway
projects that are approved for construction includes six projects that involve
bypasses.
This bill provides that, prior to constructing a major highway project involving
a bypass, DOT must notify the governing body of the city, village, or town primarily
to be affected by the bypass of DOT's proposed construction of the bypass. If the
governing body of the city, village, or town adopts a resolution, within 90 days of
being notified by DOT, stating that an active bypass is in the best public interest of
the city, village, or town and sends a copy of the resolution to DOT within seven days
of its adoption, DOT is required to design and construct an active bypass. The bill
defines "active bypass" as a bypass of an existing highway that is designed and
constructed in such a way that access to the bypass requires motorists to exit the
existing highway in order to travel on the bypass.
For further information see the state and local 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:
AB499, s. 1 1Section 1. 13.48 (7) of the statutes is amended to read:
AB499,7,52 13.48 (7) Biennial recommendations. The building commission shall prepare
3and formally adopt recommendations for the long-range state building program on
4a biennial basis. The building commission shall include in its report any projects
5proposed by the state fair park board involving a cost of not more than $250,000,
6together with the method of financing those projects proposed by the board, without
7recommendation. Unless a later date is requested by the building commission and
8approved by the joint committee on finance, the building commission shall, no later
9than the first Tuesday in April of each odd-numbered year, transmit the report
10prepared by the department of administration under s. 16.40 (20) and the
11commission's recommendations for the succeeding fiscal biennium that require

1legislative approval to the joint committee on finance in the form of proposed
2legislation prepared in proper form. If the building commission includes any
3recommendation for construction of a state office building, the commission shall
4ensure that the recommended location of the building is consistent with construction
5requirements under sub. (10) (c).
AB499, s. 2 6Section 2. 13.48 (10) (c) of the statutes is created to read:
AB499,7,147 13.48 (10) (c) Unless otherwise required by law, the building commission shall
8not authorize the construction of any state office building, whether for utilization by
9a single agency or otherwise, to be located outside of a downtown area, as certified
10under s. 560.03 (21m), unless the cost of locating the building inside a downtown area
11is more than 10% greater than the average cost of locating the building in that
12portion of the geographic area that is served by the functions to be performed in the
13building on the date of initial occupancy outside of any downtown area, as
14determined by the department of administration.
AB499, s. 3 15Section 3. 13.48 (15) of the statutes is amended to read:
AB499,8,216 13.48 (15) Acquisition of leasehold interests. Subject to the requirements
17of s. 20.924 (1) (i), the building commission shall have the authority to acquire
18leasehold interests in land and buildings where such authority is not otherwise
19provided to an agency by law. The building commission shall not approve any lease
20for state office facilities, whether for utilization by a single agency or otherwise, to
21be located outside of a downtown area, as certified under s. 560.03 (21m), unless the
22cost of locating the facilities inside a downtown area is more than 10% greater than
23the average cost of locating the facilities in that portion of the geographic area that
24is served by the functions to be performed in the facilities on the date of initial

1occupancy under the lease outside of any downtown area, as determined by the
2department of administration.
AB499, s. 4 3Section 4. 41.11 (1) (bm) of the statutes is created to read:
AB499,8,64 41.11 (1) (bm) Promote travel to business areas that are or have been the
5subject of revitalization efforts under the State Main Street Program under s.
6560.081 or that are certified downtowns under s. 560.03 (21m).
AB499, s. 5 7Section 5. 44.02 (24) of the statutes is renumbered 44.02 (24) (a).
AB499, s. 6 8Section 6. 44.02 (24) (b) of the statutes is created to read:
AB499,8,119 44.02 (24) (b) Charge a fee of $150 for a certification under par. (a). The
10historical society shall collect the fee under this paragraph when an applicant
11applies for certification under par. (a).
AB499, s. 7 12Section 7. 44.02 (24d) of the statutes is created to read:
AB499,8,1713 44.02 (24d) (a) Promulgate by rule procedures, standards, and forms necessary
14to certify, and shall certify, expenditures for preservation or rehabilitation of historic
15property for the purposes of ss. 71.07 (9m) (a) and (cm), 71.28 (6) (a) and (cm), and
1671.47 (6) (a) and (cm). Such standards shall be substantially similar to the standards
17used by the secretary of the interior to certify rehabilitations under 26 USC 47 (c) (2).
AB499,8,2218 (b) Charge a fee for a certification under par. (a) equal to 1% of the qualified
19rehabilitation expenditures for the historic property that is the subject of the
20certification, except that no fee under this paragraph may be less than $150 nor more
21than $10,000. The historical society shall collect the fee under this paragraph when
22an applicant applies for certification under par. (a).
AB499, s. 8 23Section 8. 59.69 (4m) of the statutes is amended to read:
AB499,9,924 59.69 (4m) Historic preservation. A county, as an exercise of its zoning and
25police powers for the purpose of promoting the health, safety and general welfare of

1the community and of the state, may regulate by ordinance any place, structure or
2object with a special character, historic interest, aesthetic interest or other
3significant value, for the purpose of preserving the place, structure or object and its
4significant characteristics. The county may create a landmarks commission to
5designate historic landmarks and establish historic districts. The county may
6regulate all historic landmarks and all property within each historic district to
7preserve the historic landmarks and property within the district and the character
8of the district, and shall interpret the county's regulations liberally to facilitate the
9preservation and restoration of historic buildings and structures
.
AB499, s. 9 10Section 9. 60.64 of the statutes is amended to read:
AB499,9,21 1160.64 Historic preservation. The town board, in the exercise of its zoning
12and police powers for the purpose of promoting the health, safety and general welfare
13of the community and of the state, may regulate any place, structure or object with
14a special character, historic interest, aesthetic interest or other significant value for
15the purpose of preserving the place, structure or object and its significant
16characteristics. The town board may create a landmarks commission to designate
17historic landmarks and establish historic districts. The board may regulate all
18historic landmarks and all property within each historic district to preserve the
19historic landmarks and property within the district and the character of the district,
20and shall interpret the board's regulations liberally to facilitate the preservation and
21restoration of historic buildings and structures
.
AB499, s. 10 22Section 10. 62.23 (7) (em) of the statutes is amended to read:
AB499,9,2523 62.23 (7) (em) Historic preservation. A city, as an exercise of its zoning and
24police powers for the purpose of promoting the health, safety and general welfare of
25the community and of the state, may regulate by ordinance, or if a city contains any

1property that is listed on the national register of historic places in Wisconsin or the
2state register of historic places shall, not later than 1995, enact an ordinance to
3regulate, any place, structure or object with a special character, historic,
4archaeological or aesthetic interest, or other significant value, for the purpose of
5preserving the place, structure or object and its significant characteristics. A city
6may create a landmarks commission to designate historic or archaeological
7landmarks and establish historic districts. The city may regulate, or if the city
8contains any property that is listed on the national register of historic places in
9Wisconsin or the state register of historic places shall regulate, all historic or
10archaeological landmarks and all property within each historic district to preserve
11the historic or archaeological landmarks and property within the district and the
12character of the district, and shall interpret the city's regulations liberally to
13facilitate the preservation and restoration of historic buildings and structures
.
AB499, s. 11 14Section 11. 71.07 (5m) (a) 4. of the statutes is amended to read:
AB499,10,1615 71.07 (5m) (a) 4. "Net tax liability" means a claimant's income tax liability after
16he or she completes the computations listed in s. 71.10 (4) (a) to (dr) (dm).
AB499, s. 12 17Section 12. 71.07 (9m) (a) of the statutes is renumbered 71.07 (9m) (a) 1. and
18amended to read:
AB499,11,219 71.07 (9m) (a) 1. Any Except as provided in subd. 2., any person may claim as
20a
credit against the taxes otherwise due imposed under this chapter s. 71.02, up to
21the amount of those taxes, an amount equal to 5% of the costs of qualified
22rehabilitation expenditures, as defined in section 47 (c) (2) of the internal revenue
23code
Internal Revenue Code, for certified historic structures on property located in
24this state, if the physical work of construction or destruction in preparation for

1construction begins after December 31, 1988, and the rehabilitated property is
2placed in service after June 30, 1989.
AB499, s. 13 3Section 13. 71.07 (9m) (a) 2. of the statutes is created to read:
AB499,11,154 71.07 (9m) (a) 2. A person who would otherwise be eligible to claim the
5rehabilitation credit under section 47 of the Internal Revenue Code, except that the
6rehabilitated property is not a certified historic structure, as defined in section 47 (c)
7(3) of the Internal Revenue Code, may claim as a credit against taxes imposed under
8s. 71.02, up to the amount of those taxes, an amount equal to 20% of the costs of
9qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal
10Revenue Code, for rehabilitated property in this state, if the rehabilitated property
11is located in a certified downtown under s. 560.03 (21m) or is included in a business
12area revitalization under s. 560.081; if the rehabilitation is approved by the state
13historical society before the physical work of construction, or destruction in
14preparation for construction, begins; and if the physical work of construction, or
15destruction in preparation for construction, begins after December 31, 2003.
AB499, s. 14 16Section 14. 71.07 (9m) (c) of the statutes is amended to read:
AB499,11,2317 71.07 (9m) (c) No Except as provided in par. (cm), no person may claim the a
18credit under this subsection unless the claimant includes with the claimant's return
19evidence that the rehabilitation was approved recommended by the state historic
20preservation officer for approval
by the secretary of the interior under 36 CFR 67.6
21before the physical work of construction, or destruction in preparation for
22construction, began; and the claimant claims the credit for the same taxable year in
23which the claimant would have claimed the credit for federal purposes
.
AB499, s. 15 24Section 15. 71.07 (9m) (cm) of the statutes is created to read:
AB499,12,11
171.07 (9m) (cm) A person whose qualified rehabilitation expenditures do not
2satisfy the adjusted basis requirement under section 47 (c) (1) of the Internal
3Revenue Code, but who otherwise would be eligible to claim the rehabilitation credit
4under section 47 of the Internal Revenue Code, may claim the credit under par. (a)
51., if the person's qualified rehabilitation expenditures, as defined in section 47 (c)
6(2) of the Internal Revenue Code, are at least $10,000; if the rehabilitation is
7approved by the state historical society before the physical work of construction, or
8destruction in preparation for construction, begins; if the person includes evidence
9of such approval with the person's return; and if the person claims the credit for the
10same taxable year in which the person would have claimed the credit for federal
11purposes.
AB499, s. 16 12Section 16. 71.07 (9m) (g) of the statutes is created to read:
AB499,12,2013 71.07 (9m) (g) A person who has incurred qualified rehabilitation
14expenditures, as defined in section 47 (c) (2) of the Internal Revenue Code, for
15certified historic structures located in this state, as described in par. (a), but who is
16not a resident of this state and who is not required to file a return under this chapter,
17may enter into an agreement with another person, with the department's approval
18and in the manner prescribed by the department, so that the other person may claim
19the credit under this subsection, if the other person is subject to the taxes imposed
20under s. 71.02.
AB499, s. 17 21Section 17. 71.07 (9m) (h) of the statutes is created to read:
AB499,13,522 71.07 (9m) (h) A person who receives a credit under this subsection shall add
23to the person's liability for taxes imposed under s. 71.02 one of the following
24percentages of the amount of the credits received under this subsection for
25rehabilitating or preserving the property if, within 5 years after the date on which

1the preservation or rehabilitation work that was the basis of the credit is completed,
2the person either sells or conveys the property by deed or land contract or the state
3historical society certifies to the department of revenue that the historic property has
4been altered to the extent that it does not comply with the standards promulgated
5under s. 44.02 (24d):
AB499,13,76 1. If the sale, conveyance, or noncompliance occurs during the first year after
7the date on which the preservation or rehabilitation is completed, 100%.
AB499,13,98 2. If the sale, conveyance, or noncompliance occurs during the 2nd year after
9the date on which the preservation or rehabilitation is completed, 80%.
AB499,13,1110 3. If the sale, conveyance, or noncompliance occurs during the 3rd year after
11the date on which the preservation or rehabilitation is completed, 60%.
AB499,13,1312 4. If the sale, conveyance, or noncompliance occurs during the 4th year after
13the date on which the preservation or rehabilitation is completed, 40%.
AB499,13,1514 5. If the sale, conveyance, or noncompliance occurs during the 5th year after
15the date on which the preservation or rehabilitation is completed, 20%.
AB499, s. 18 16Section 18. 71.07 (9r) (a) of the statutes is renumbered 71.07 (9r) (a) 1. and
17amended to read:
AB499,14,318 71.07 (9r) (a) 1. For Except as provided in subd. 2., for taxable years beginning
19on or after August 1, 1988, any natural person may claim as a credit against the taxes
20otherwise due imposed under s. 71.02 , up to the amount of those taxes, an amount
21equal to 25% of the costs of preservation or rehabilitation of historic property located
22in this state, including architectural fees and costs incurred in preparing nomination
23forms for listing in the national register of historic places in Wisconsin or the state
24register of historic places, if the nomination is made within 5 years prior to
25submission of a preservation or rehabilitation plan under par. (b) 3. b., and if the

1physical work of construction or destruction in preparation for construction begins
2after December 31, 1988, except that the credit may not exceed $10,000, or $5,000
3for married persons filing separately, for any preservation or rehabilitation project.
AB499, s. 19 4Section 19. 71.07 (9r) (a) 2. of the statutes is created to read:
AB499,14,165 71.07 (9r) (a) 2. For taxable years beginning after December 31, 2003, any
6natural person may claim as a credit against the taxes imposed under s. 71.02, up
7to the amount of those taxes, an amount equal to 30% of the costs of preservation or
8rehabilitation of property that is located in a certified downtown under s. 560.03
9(21m) or is included in a business area revitalization under s. 560.081, including
10architectural fees and costs incurred in preparing nomination forms for listing in the
11national register of historic places in Wisconsin or the state register of historic places,
12if the nomination is made within 5 years prior to submission of a preservation or
13rehabilitation plan under par. (b) 3. b., and if the physical work of construction or
14destruction in preparation for construction begins after December 31, 2003, except
15that the credit may not exceed $10,000, or $5,000 for married persons filing
16separately, for any preservation or rehabilitation project.
AB499, s. 20 17Section 20. 71.07 (9r) (b) 3. a. of the statutes is amended to read:
AB499,15,218 71.07 (9r) (b) 3. a. The Except as provided in subd. 3. am., the property is listed
19on the national register of historic places in Wisconsin or the state register of historic
20places, or is determined by the state historical society to be eligible for listing on the
21national register of historic places in Wisconsin or the state register of historic places,
22or is located in a historic district which is listed in the national register of historic
23places in Wisconsin or the state register of historic places and is certified by the state
24historic preservation officer as being of historic significance to the district, or is an

1outbuilding of an otherwise eligible property certified by the state historic
2preservation officer as contributing to the historic significance of the property.
AB499, s. 21 3Section 21. 71.07 (9r) (b) 3. am. of the statutes is created to read:
AB499,15,64 71.07 (9r) (b) 3. am. If the property does not satisfy the requirements under
5subd. 3. a., the property is located in a certified downtown under s. 560.03 (21m) or
6is included in a business area revitalization under s. 560.081.
AB499, s. 22 7Section 22. 71.10 (4) (dr) of the statutes is renumbered 71.10 (4) (fm).
AB499, s. 23 8Section 23. 71.28 (6) (a) of the statutes is renumbered 71.28 (6) (a) 1. and
9amended to read:
AB499,15,1710 71.28 (6) (a) 1. Any Except as provided in subd. 2., any person may claim as a
11credit against the taxes otherwise due imposed under this chapter s. 71.23, up to the
12amount of those taxes, an amount equal to 5% of the costs of qualified rehabilitation
13expenditures, as defined in section 47 (c) (2) of the internal revenue code Internal
14Revenue Code
, for certified historic structures on property located in this state, if the
15physical work of construction or destruction in preparation for construction begins
16after December 31, 1988, and the rehabilitated property is placed in service after
17June 30, 1989.
AB499, s. 24 18Section 24. 71.28 (6) (a) 2. of the statutes is created to read:
AB499,16,519 71.28 (6) (a) 2. A person who would otherwise be eligible to claim the
20rehabilitation credit under section 47 of the Internal Revenue Code, except that the
21rehabilitated property is not a certified historic structure, as defined in section 47 (c)
22(3) of the Internal Revenue Code, may claim as a credit against taxes imposed under
23s. 71.23, up to the amount of those taxes, an amount equal to 20% of the costs of
24qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal
25Revenue Code, for rehabilitated property in this state, if the rehabilitated property

1is located in a certified downtown under s. 560.03 (21m) or is included in a business
2area revitalization under s. 560.081; if the rehabilitation is approved by the state
3historical society before the physical work of construction, or destruction in
4preparation for construction, begins; and if the physical work of construction, or
5destruction in preparation for construction, begins after December 31, 2003.
AB499, s. 25 6Section 25. 71.28 (6) (c) of the statutes is amended to read:
AB499,16,137 71.28 (6) (c) No Except as provided in par. (cm), no person may claim the a credit
8under this subsection unless the claimant includes with the claimant's return
9evidence that the rehabilitation was approved recommended by the state historic
10preservation officer for approval
by the secretary of the interior under 36 CFR 67.6
11before the physical work of construction, or destruction in preparation for
12construction, began; and the claimant claims the credit for the same taxable year in
13which the claimant would have claimed the credit for federal purposes
.
AB499, s. 26 14Section 26. 71.28 (6) (cm) of the statutes is created to read:
AB499,16,2515 71.28 (6) (cm) A person whose qualified rehabilitation expenditures do not
16satisfy the adjusted basis requirement under section 47 (c) (1) of the Internal
17Revenue Code, but who otherwise would be eligible to claim the rehabilitation credit
18under section 47 of the Internal Revenue Code, may claim the credit under par. (a)
191., if the person's qualified rehabilitation expenditures, as defined in section 47 (c)
20(2) of the Internal Revenue Code, are at least $10,000; if the rehabilitation is
21approved by the state historical society before the physical work of construction, or
22destruction in preparation for construction, begins; if the person includes evidence
23of such approval with the person's return; and if the person claims the credit for the
24same taxable year in which the person would have claimed the credit for federal
25purposes.
AB499, s. 27
1Section 27. 71.28 (6) (g) of the statutes is created to read:
AB499,17,92 71.28 (6) (g) A person who has incurred qualified rehabilitation expenditures,
3as defined in section 47 (c) (2) of the Internal Revenue Code, for certified historic
4structures located in this state, as described in par. (a), but who is not a resident of
5this state and who is not required to file a return under this chapter, may enter into
6an agreement with another person, with the department's approval and in the
7manner prescribed by the department, so that the other person may claim the credit
8under this subsection, if the other person is subject to the taxes imposed under s.
971.23.
AB499, s. 28 10Section 28. 71.28 (6) (h) of the statutes is created to read:
AB499,17,1911 71.28 (6) (h) A person who receives a credit under this subsection shall add to
12the person's liability for taxes imposed under s. 71.23 one of the following
13percentages of the amount of the credits received under this subsection for
14rehabilitating or preserving the property if, within 5 years after the date on which
15the preservation or rehabilitation work that was the basis of the credit is completed,
16the person either sells or conveys the property by deed or land contract or the state
17historical society certifies to the department of revenue that the historic property has
18been altered to the extent that it does not comply with the standards promulgated
19under s. 44.02 (24d):
AB499,17,2120 1. If the sale, conveyance, or noncompliance occurs during the first year after
21the date on which the preservation or rehabilitation is completed, 100%.
AB499,17,2322 2. If the sale, conveyance, or noncompliance occurs during the 2nd year after
23the date on which the preservation or rehabilitation is completed, 80%.
AB499,17,2524 3. If the sale, conveyance, or noncompliance occurs during the 3rd year after
25the date on which the preservation or rehabilitation is completed, 60%.
AB499,18,2
14. If the sale, conveyance, or noncompliance occurs during the 4th year after
2the date on which the preservation or rehabilitation is completed, 40%.
AB499,18,43 5. If the sale, conveyance, or noncompliance occurs during the 5th year after
4the date on which the preservation or rehabilitation is completed, 20%.
AB499, s. 29 5Section 29. 71.47 (6) (a) of the statutes is renumbered 71.47 (6) (a) 1. and
6amended to read:
AB499,18,147 71.47 (6) (a) 1. Any Except as provided in subd. 2., any person may claim as a
8credit against the taxes otherwise due imposed under this chapter s. 71.43, up to the
9amount of those taxes, an amount equal to 5% of the costs of qualified rehabilitation
10expenditures, as defined in section 47 (c) (2) of the internal revenue code Internal
11Revenue Code
, for certified historic structures on property located in this state, if the
12physical work of construction or destruction in preparation for construction begins
13after December 31, 1988, and the rehabilitated property is placed in service after
14June 30, 1989.
AB499, s. 30 15Section 30. 71.47 (6) (a) 2. of the statutes is created to read:
AB499,19,216 71.47 (6) (a) 2. A person who would otherwise be eligible to claim the
17rehabilitation credit under section 47 of the Internal Revenue Code, except that the
18rehabilitated property is not a certified historic structure, as defined in section 47 (c)
19(3) of the Internal Revenue Code, may claim as a credit against taxes imposed under
20s. 71.43, up to the amount of those taxes, an amount equal to 20% of the costs of
21qualified rehabilitation expenditures, as defined in section 47 (c) (2) of the Internal
22Revenue Code, for rehabilitated property in this state, if the rehabilitated property
23is located in a certified downtown under s. 560.03 (21m) or is included in a business
24area revitalization under s. 560.081; if the rehabilitation is approved by the state
25historical society before the physical work of construction, or destruction in

1preparation for construction, begins; and if the physical work of construction, or
2destruction in preparation for construction, begins after December 31, 2003.
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