AB869,7,2120 2. “Authority” means the Wisconsin Housing and Economic Development
21Authority.
AB869,7,2322 3. “Claimant” means a person who has an ownership interest in a qualified
23development and who files a claim under this subsection.
AB869,7,2524 4. “Compliance period” means the 15-year period beginning with the first
25taxable year of the credit period.
AB869,8,5
15. “Credit period” means the period of 6 taxable years beginning with the
2taxable year in which a qualified development is placed in service. For purposes of
3this subdivision, if a qualified development consists of more than one building, the
4qualified development is placed in service in the taxable year in which the last
5building of the qualified development is placed in service.
AB869,8,76 6. “Qualified basis” means the qualified basis determined under section 42 (c)
7(1) of the Internal Revenue Code.
AB869,8,118 7. “Qualified development” means a qualified low-income housing project
9under section 42 (g) of the Internal Revenue Code that is financed with tax-exempt
10bonds, pursuant to section 42 (i) (2) of the Internal Revenue Code, and located in this
11state.
AB869,8,1612 (b) Filing claims. Subject to the limitations provided in this subsection and in
13s. 234.45, for taxable years beginning after December 31, 2017, a claimant may claim
14as a credit against the taxes imposed under s. 71.43, up to the amount of the tax, the
15amount allocated to the claimant by the authority under s. 234.45 for each taxable
16year within the credit period.
AB869,8,1917 (c) Limitations. 1. No person may claim the credit under par. (b) unless the
18claimant includes with the claimant's return a copy of the allocation certificate
19issued to the qualified development.
AB869,9,1320 2. A partnership, limited liability company, or tax-option corporation may not
21claim the credit under this subsection. The partners of a partnership, members of
22a limited liability company, or shareholders in a tax-option corporation may claim
23the credit under this subsection based on eligible costs incurred by the partnership,
24limited liability company, or tax-option corporation. The partnership, limited
25liability company, or tax-option corporation shall calculate the amount of the credit

1that may be claimed by each partner, member, or shareholder and shall provide that
2information to the partner, member, or shareholder. For shareholders of a tax-option
3corporation, the credit may be allocated in proportion to the ownership interest of
4each shareholder. Credits computed by a partnership or limited liability company
5may be claimed in proportion to the ownership interests of the partners or members
6or allocated to partners or members as provided in a written agreement among the
7partners or members that is entered into no later than the last day of the taxable year
8of the partnership or limited liability company, for which the credit is claimed. Any
9partner or member who claims the credit as allocated by a written agreement shall
10provide a copy of the agreement with the tax return on which the credit is claimed.
11A person claiming the credit as provided under this subdivision is solely responsible
12for any tax liability arising from a dispute with the department of revenue related
13to claiming the credit.
AB869,9,1914 (d) Recapture. 1. As of the last day of any taxable year during the compliance
15period, if the amount of the qualified basis of a qualified development with respect
16to a claimant is less than the amount of the qualified basis as of the last day of the
17immediately preceding taxable year, the amount of the claimant's tax liability under
18this subchapter shall be increased by the recapture amount determined by using the
19method under section 42 (j) of the Internal Revenue Code.
AB869,9,2220 2. In the event that the recapture of any credit is required in any taxable year,
21the taxpayer shall include the recaptured proportion of the credit on the return
22submitted for the taxable year in which the recapture event is identified.
AB869,9,2423 (e) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
24s. 71.28 (4), applies to the credit under this subsection.
AB869,6 25Section 6. 71.49 (1) (cs) of the statutes is created to read:
AB869,10,1
171.49 (1) (cs) Low-income housing credit under s. 71.47 (8b).
AB869,7 2Section 7. 76.639 of the statutes is created to read:
AB869,10,3 376.639 Low-income housing credit. (1) Definitions. In this section:
AB869,10,74 (a) “Allocation certificate” means a statement issued by the authority certifying
5that a qualified development is eligible for a credit under this subsection and
6specifying the amount of the credit that the owners of the qualified development may
7claim.
AB869,10,98 (b) “Authority” means the Wisconsin Housing and Economic Development
9Authority.
AB869,10,1110 (c) “Claimant” means an insurer who has an ownership interest in a qualified
11development and who files a claim under this section.
AB869,10,1312 (d) “Compliance period” means the 15-year period beginning with the first
13taxable year of the credit period.
AB869,10,1814 (e) “Credit period” means the period of 6 taxable years beginning with the
15taxable year in which a qualified development is placed in service. For purposes of
16this paragraph, if a qualified development consists of more than one building, the
17qualified development is placed in service in the taxable year in which the last
18building of the qualified development is placed in service.
AB869,10,2019 (f) “Qualified basis” means the qualified basis determined under section 42 (c)
20(1) of the Internal Revenue Code.
AB869,10,2421 (g) “Qualified development” means a qualified low-income housing project
22under section 42 (g) of the Internal Revenue Code that is financed with tax-exempt
23bonds, pursuant to section 42 (i) (2) of the Internal Revenue Code, and located in this
24state.
AB869,11,5
1(2) Filing claims. Subject to the limitations provided in this section and in s.
2234.45, for taxable years beginning after December 31, 2017, a claimant may claim
3as a credit against the fees imposed under s. 76.60, 76.63, 76.65, 76.66, or 76.67 the
4amount allocated to the claimant by the authority under s. 234.45 for each taxable
5year within the credit period.
AB869,11,8 6(3) Limitations. No insurer may claim the credit under sub. (2) unless the
7claimant includes with the claimant's return a copy of the allocation certificate
8issued to the qualified development.
AB869,11,14 9(4) Recapture. (a) As of the last day of any taxable year during the compliance
10period, if the amount of the qualified basis of a qualified development with respect
11to a claimant is less than the amount of the qualified basis as of the last day of the
12immediately preceding taxable year, the amount of the claimant's tax liability under
13s. 76.60, 76.63, 76.65, 76.66, or 76.67 shall be increased by the recapture amount
14determined by using the method under section 42 (j) of the Internal Revenue Code.
AB869,11,1715 (b) In the event that the recapture of any credit is required in any taxable year,
16the taxpayer shall include the recaptured proportion of the credit on the return
17submitted for the taxable year in which the recapture event is identified.
AB869,11,23 18(5) Carry-forward. If the credit under sub. (2) is not entirely offset against the
19fees under s. 76.60, 76.63, 76.65, 76.66, or 76.67 otherwise due, the unused balance
20may be carried forward and credited against those fees for the following 15 years to
21the extent that it is not offset by those fees otherwise due in all the years between
22the year in which the expense was made and the year in which the carry-forward
23credit is claimed.
AB869,8 24Section 8. 76.67 (2) of the statutes is amended to read:
AB869,12,10
176.67 (2) If any domestic insurer is licensed to transact insurance business in
2another state, this state may not require similar insurers domiciled in that other
3state to pay taxes greater in the aggregate than the aggregate amount of taxes that
4a domestic insurer is required to pay to that other state for the same year less the
5credits under ss. 76.635, 76.636, 76.637, 76.638, and 76.655, except that the amount
6imposed shall not be less than the total of the amounts due under ss. 76.65 (2) and
7601.93 and, if the insurer is subject to s. 76.60, 0.375 percent of its gross premiums,
8as calculated under s. 76.62, less offsets allowed under s. 646.51 (7) or under ss.
976.635, 76.636, 76.637, 76.638, 76.639, and 76.655 against that total, and except that
10the amount imposed shall not be less than the amount due under s. 601.93.
AB869,9 11Section 9. 234.45 of the statutes is created to read:
AB869,12,12 12234.45 Low-income housing tax credits. (1) Definitions. In this section:
AB869,12,1513 (a) “Allocation certificate” means a statement issued by the authority certifying
14that a qualified development is eligible for a state tax credit and specifying the
15amount of the credit that the owners of the qualified development may claim.
AB869,12,1716 (b) “Compliance period” means the 15-year period beginning with the first
17taxable year of the credit period.
AB869,12,2218 (c) “Credit period” means the period of 6 taxable years beginning with the
19taxable year in which a qualified development is placed in service. For purposes of
20this paragraph, if a qualified development consists of more than one building, the
21qualified development is placed in service in the taxable year in which the last
22building of the qualified development is placed in service.
AB869,12,2423 (d) “Qualified allocation plan” means the qualified allocation plan adopted by
24the authority pursuant to section 42 (m) of the Internal Revenue Code.
AB869,13,4
1(e) “Qualified development” means a qualified low-income housing project
2under section 42 (g) of the Internal Revenue Code that is financed with tax-exempt
3bonds, pursuant to section 42 (i) (2) of the Internal Revenue Code, and located in this
4state.
AB869,13,65 (f) “State tax credit” means a tax credit under s. 71.07 (8b), 71.28 (8b), 71.47
6(8b), or 76.639.
AB869,13,8 7(2) Establishment of program. The authority shall establish a program to
8certify persons to claim state tax credits under this section.
AB869,13,13 9(3) Certification. The authority may certify a person to claim a state tax credit
10in an amount determined by the authority by issuing the person an allocation
11certificate for the qualified development that is eligible for the state tax credit. The
12authority may issue an allocation certificate under this subsection only if all of the
13following conditions are satisfied:
AB869,13,1514 (a) The allocation certificate is issued to a person who has an ownership
15interest in the qualified development.
AB869,13,1716 (b) The state tax credit is necessary for the financial feasibility of the qualified
17development.
AB869,13,2218 (c) The qualified development is the subject of a recorded restrictive covenant
19requiring that, for the compliance period or for a longer period agreed to by the
20authority and the owner of the qualified development, the development shall be
21maintained and operated as a qualified development and shall be in compliance with
22Title VIII of the federal Civil Rights Act of 1968, as amended.
AB869,13,2423 (d) The allocation certificate is issued in accordance with the authority's
24qualified allocation plan.
AB869,14,6
1(4) Allocation limits. The aggregate amount of all state tax credits the
2authority certifies persons to claim in allocation certificates issued under sub. (3) in
3the same calendar year may not exceed $42,000,000, plus the total amount of all
4unallocated state tax credits from previous calendar years and plus the total amount
5of all previously allocated state tax credits that have been revoked or cancelled or
6otherwise recovered by the authority.
AB869,14,9 7(5) Preference for smaller municipalities. In issuing allocation certificates
8under sub. (3), the authority shall give preference to qualified developments located
9in a city, village, or town with a population of fewer than 150,000.
AB869,14,11 10(6) Report. No later than December 31 of each year, the authority shall submit
11a report to the legislature under s. 13.172 (2) that includes all of the following:
AB869,14,1312 (a) A statement of the number of qualified developments for which the
13authority issued allocation certificates that year.
AB869,14,1914 (b) A description of each qualified development for which the authority issued
15an allocation certificate that year, including the geographic location of the
16development, the household type and any specific demographic information
17available concerning the residents intended to be served by the development, the
18income levels of residents intended to be served by the development, and the rents
19or set-asides authorized for each development.
AB869,14,2420 (c) An analysis of housing market and demographic information that shows
21how the qualified developments for which the authority has issued allocation
22certificates at any time are addressing the need for affordable housing within the
23communities those developments are intended to serve and an analysis of any
24remaining disparities in the affordability of housing within those communities.
AB869,15,3
1(7) Policies and procedures. The authority, in consultation with the
2department of revenue, shall establish policies and procedures to administer this
3section.
AB869,15,44 (End)
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