AB1046: Bill Text

AB1046,3,2 a. If the sale, conveyance, or noncompliance occurs during the first year after the date on which the preservation or rehabilitation is completed, 100 percent.

AB1046,3,4 b. If the sale, conveyance, or noncompliance occurs during the 2nd year after the date on which the preservation or rehabilitation is completed, 80 percent.

AB1046,3,6 c. If the sale, conveyance, or noncompliance occurs during the 3rd year after the date on which the preservation or rehabilitation is completed, 60 percent.

AB1046,3,8 d. If the sale, conveyance. or noncompliance occurs during the 4th year after the date on which the preservation or rehabilitation is completed, 40 percent.

AB1046,3,10 e. If the sale, conveyance, or noncompliance occurs during the 5th year after the date on which the preservation or rehabilitation is completed, 20 percent.

AB1046, s. 3 Section 3. 71.07 (9s) of the statutes is created to read:

AB1046,3,13 71.07 (9s) Historic barns preservation and rehabilitation credit. (a) Definitions. In this subsection:

AB1046,3,15 1. "Claimant" means an individual who owns a historic barn or historic building and claims the credit under this subsection.

AB1046,3,16 2. "Department" means the department of revenue.

AB1046,3,18 3. "Historic barn" means a barn, or building, about which the state historical society certifies to the department at least one of the following:

AB1046,3,22 a. The barn is a contributing element within a property that has been listed in the national register of historic places in Wisconsin or the state register of historic places, or has been determined by the state historical society to be eligible for listing on the state register of historic places.

AB1046,3,24 b. The barn contributes to the significance of a district that is listed on the national register of historic places in Wisconsin or the state register of historic places.

AB1046,4,4 c. The building was constructed as a barn for agricultural purposes before 1960 as determined by the state historical society, was originally clad with wood or constructed of masonry, and retains physical characteristics dating to its agricultural use.

AB1046,4,7 4. "Historic building" means a nonresidential building or structure that the state historical society certifies to the department was constructed before 1960 and contributes to the significance of a complex containing a historic barn.

AB1046,4,13 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, an amount equal to 25 percent of the costs incurred by the claimant in the preservation or rehabilitation of a historic barn or historic building located in this state, including architectural fees, if the physical work of construction or destruction in preparation for construction begins after January 1, 2006.

AB1046,4,15 (c) Limitations. 1. No credit may be allowed under this subsection unless all of the following apply:

AB1046,4,16 a. The credit is claimed within the time period under s. 71.75 (2).

AB1046,4,19 b. The state historical society certifies to the department that the proposed preservation or rehabilitation plan complies with the standards promulgated under s. 44.02 (24).

AB1046,4,22 c. The preservation or rehabilitation work is completed within 5 years after the date that the physical work of construction or destruction in preparation for construction begins.

AB1046,4,24 d. The expenditures for preservation or rehabilitation of the historic barn or historic building exceed $10,000.

AB1046,5,2 e. The state historical society certifies to the department that the completed preservation or rehabilitation substantially complies with the proposed plan.

AB1046,5,4 f. The costs are not incurred to acquire any building or interest in a building or to enlarge existing building.

AB1046,5,6 g. The costs were not incurred before the state historical society certified the proposed preservation or rehabilitation plan under subd. 1. b.

AB1046,5,9 2. The costs incurred for the preservation or rehabilitation of a historic barn or historic building , for which a claim may be made under this subsection, are limited to costs to preserve or rehabilitate the following:

AB1046,5,10 a. The exterior of such a barn or building.

AB1046,5,11 b. Structural repair to such a barn or building.

AB1046,5,12 c. Electrical or plumbing systems in such a barn or building.

AB1046,5,13 d. Heating or ventilation systems in such a barn or building.

AB1046,5,16 3. With regard to certification by the state historical society that is described in par. (a) 3. and 4., the society's certification shall be based on standards promulgated under s. 44.02 (24).

AB1046,5,18 4. The Wisconsin adjusted basis of the historic barn or historic building shall be reduced by the amount of any credit awarded under this subsection.

AB1046,5,20 5. If a claimant files a claim under this subsection, the claimant may not claim a credit under sub. (9m) or (9r) for the same expenses.

AB1046,5,24 6. If an individual files a claim for a rehabilitation credit under section 47 of the Internal Revenue Code for qualified rehabilitation expenditures, as defined in 26 USC 47 (c) (2), the individual may not file a claim under this subsection for the same expenses.

AB1046,6,4 7. If the historic barn or historic building is owned by 2 or more individuals that hold legal title or equitable title as a land contract vendee and are not joint tenants, tenants in common, or spouses owning marital property, the credit under this subsection may be claimed as follows:

AB1046,6,6 a. For projects benefiting one owner, the individual may claim the credit based on eligible costs incurred individually.

AB1046,6,9 b. For projects benefiting 2 or more owners, an individual may claim the credit based on eligible costs incurred by benefiting owners in proportion to the individual's ownership interest.

AB1046,6,14 8. No individual may claim the credit under this subsection for the rehabilitation of a historic barn or historic building if the barn or building was acquired by the individual under an agreement requiring the individual to sell or otherwise dispose of the historic barn or historic building back to the previous owner within 5 years after the date that the barn or building was acquired.

AB1046,6,16 (d) Administration. Section 71.28 (4) (f) and (g), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

AB1046, s. 4 Section 4. 71.10 (4) (cf) of the statutes is created to read:

AB1046,6,19 71.10 (4) (cf) The historic barns preservation and rehabilitation credit under s. 71.07 (9s).

AB1046, s. 5 Section 5. 71.74 (8) (d) of the statutes is amended to read:

AB1046,7,7 71.74 (8) (d) If a claim for a state historic rehabilitation credit under s. 71.07 (9r) or a claim for a historic barns preservation and rehabilitation credit under s. 71.07 (9s) is false or excessive, the department shall disallow the claim in full. If a credit has been allowed against income taxes otherwise payable, the credit shall be canceled and the amount may be recovered by assessment as income taxes are assessed. Notwithstanding par. (a) and s. 71.77, the department shall notify the claimant of the determination and shall give reasons for the disallowance under sub. (11) within 4 years after the date that the state historical society notifies the department that the preservation or rehabilitation is not in compliance with s. 71.07 (9r) (b) 3. b. or 4., or not in compliance with s. 71.07 (9s) (c) 1. b., c., and e., but that notification must be made within 6 years after the date that the physical work of construction, or destruction in preparation for construction, begins.

AB1046, s. 6 Section 6. Initial applicability.

AB1046,7,12 (1) This act first applies to taxable years beginning on January 1 of the year in which this subsection takes effect, except that if this subsection takes effect after July 31 this act first applies to taxable years beginning on January 1 of the year following the year in which this subsection takes effect.

AB1046,7,13 (End)