AB817: Bill Text

LRB-4385/1

TKK&JK:jld/bjk/nwn:rs

2009 - 2010 LEGISLATURE

2009 Assembly BILL 817

March 9, 2010 - Introduced by Representatives Sinicki, Richards, Pasch, Turner, Fields and Grigsby, cosponsored by Senators Taylor and Robson. Referred to Committee on Housing.

AB817,1,4 An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a) 4., 71.34 (1k) (g), 71.45 (2) (a) 10. and 77.92 (4); and to create 71.07 (5n), 71.10 (4) (cr), 71.28 (5n), 71.30 (3) (dr), 71.47 (5n), 71.49 (1) (dr) and 234.615 of the statutes; relating to: employer-assisted housing.

Analysis by the Legislative Reference Bureau

This bill directs the Wisconsin Housing and Economic Development Authority (WHEDA) to establish and administer a program to award tax benefits to an employer that implements a qualifying employer-assisted housing program. The bill defines an "employer-assisted housing program" as a plan established in writing by an employer to pay qualified housing expenses of eligible employees. The bill defines "qualified housing expenses" to include the closing costs, downpayments, payments made to refinance a mortgage loan, or rental assistance paid on the eligible property of an eligible employee, and costs to provide technical assistance to a participating employer. The bill defines an "eligible employee" as an employee of a participating employer whose annual gross household income, adjusted for household size, does not exceed 120 percent of the area median gross household income, adjusted for household size. The bill defines "eligible property" as residential real property in this state that an eligible employee owns or rents as a full-time residence, but does not use as a vacation home or for trade or business purposes.

The bill requires WHEDA to establish criteria, policies, and requirements for a qualifying employer-assisted housing program. An employer wishing to establish a qualifying employer-assisted housing program may seek technical assistance from WHEDA directly, or may work with a sponsor. The bill defines a "sponsor" as a nonprofit corporation, exempt from federal income tax, that has as one of its stated purposes home ownership education. An employer who has established a qualifying employer-assisted housing program must obtain certification from WHEDA and pay any administrative fee charged by WHEDA before the employer is eligible to obtain tax benefits. The bill requires WHEDA to establish criteria, policies, and requirements to be met by a participating employer seeking certification under the program, and for a certified participating employer to obtain tax benefits under the program.

An employer may claim tax benefits in any year if, during that year, the employer incurs at least $10,000 in qualified housing expenses. The amount that the employer may claim is equal to either 50 percent of the employer's qualified housing expenses or 90 percent of the employer's qualified housing expenses, if the expenses are paid in connection with an employee purchase of an eligible property that is a foreclosure. However, for each eligible employee assisted under the employer-assisted housing program and on whose behalf the employer incurs $10,000 in qualified housing expenses, the employer may claim an amount that is no more than the lesser of $10,000 or 6 percent of the purchase price of eligible property purchased by the eligible employee. The participating employer may seek renewal of certification if the employer pays any annual administrative fee charged by WHEDA and maintains an employer-assisted housing program that satisfies the requirements for such a program established by WHEDA.

Because this bill directly or substantially affects the development, construction, cost or availability of housing in this state, the Department of Commerce, as required by law, will prepare a report to be printed as an appendix to this bill.

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:

AB817, s. 1 Section 1. 71.05 (6) (a) 15. of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB817,3,2 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k), (5n), and (8r) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).

AB817, s. 2 Section 2. 71.07 (5n) of the statutes is created to read:

AB817,3,5 71.07 (5n) Employer-assisted housing credit. (a) Definitions. In this subsection:

AB817,3,7 1. "Claimant" means a participating employer that is certified to receive tax benefits under s. 234.615 (3).

AB817,3,8 2. "Participating employer" has the meaning given in s. 234.615 (1) (e).

AB817,3,9 3. "Qualified housing expenses" has the meaning given in s. 234.615 (1) (g).

AB817,3,17 (b) Filing claims. Subject to the limitations provided in this subsection and s. 234.615 (3), for taxable years beginning after December 31, 2010, a claimant may claim as credit against the taxes imposed under s. 71.02, up to the amount of the taxes, 50 percent of the amount of qualified housing expenses that the claimant paid in the taxable year, except that, if the expenses are paid in connection with an employee purchase of an eligible property that is a foreclosure, the claimant may claim 90 percent of the qualified housing expenses that the claimant paid in the taxable year.

AB817,3,25 (c) Limitations. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

AB817,4,2 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB817, s. 3 Section 3. 71.10 (4) (cr) of the statutes is created to read:

AB817,4,4 71.10 (4) (cr) Employer-assisted housing credit under s. 71.07 (5n).

AB817, s. 4 Section 4. 71.21 (4) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB817,4,10 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), and (8r) and passed through to partners shall be added to the partnership's income.

AB817, s. 5 Section 5. 71.26 (2) (a) 4. of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB817,4,18 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), and (8r) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, limited liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).

AB817, s. 6 Section 6. 71.28 (5n) of the statutes is created to read:

AB817,4,21 71.28 (5n) Employer-assisted housing credit. (a) Definitions. In this subsection:

AB817,4,23 1. "Claimant" means a participating employer that is certified to receive tax benefits under s. 234.615 (3).

AB817,4,24 2. "Participating employer" has the meaning given in s. 234.615 (1) (e).

AB817,4,25 3. "Qualified housing expenses" has the meaning given in s. 234.615 (1) (g).

AB817,5,8 (b) Filing claims. Subject to the limitations provided in this subsection and s. 234.615 (3), for taxable years beginning after December 31, 2010, a claimant may claim as credit against the taxes imposed under s. 71.23, up to the amount of the taxes, 50 percent of the amount of qualified housing expenses that the claimant paid in the taxable year, except that, if the expenses are paid in connection with an employee purchase of an eligible property that is a foreclosure, the claimant may claim 90 percent of the qualified housing expenses that the claimant paid in the taxable year.

AB817,5,16 (c) Limitations. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

AB817,5,18 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB817, s. 7 Section 7. 71.30 (3) (dr) of the statutes is created to read:

AB817,5,20 71.30 (3) (dr) Employer-assisted housing credit under s. 71.28 (5n).

AB817, s. 8 Section 8. 71.34 (1k) (g) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB817,6,2 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3), (3g), (3h), (3n), (3p), (3q), (3r), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), and (8r) and passed through to shareholders.

AB817, s. 9 Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB817,6,11 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), and (8r) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, limited liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).

AB817, s. 10 Section 10. 71.47 (5n) of the statutes is created to read:

AB817,6,14 71.47 (5n) Employer-assisted housing credit. (a) Definitions. In this subsection:

AB817,6,16 1. "Claimant" means a participating employer that is certified to receive tax benefits under s. 234.615 (3).

AB817,6,17 2. "Participating employer" has the meaning given in s. 234.615 (1) (e).

AB817,6,18 3. "Qualified housing expenses" has the meaning given in s. 234.615 (1) (g).

AB817,7,2 (b) Filing claims. Subject to the limitations provided in this subsection and s. 234.615 (3), for taxable years beginning after December 31, 2010, a claimant may claim as credit against the taxes imposed under s. 71.43, up to the amount of the taxes, 50 percent of the amount of qualified housing expenses that the claimant paid in the taxable year, except that, if the expenses are paid in connection with an employee purchase of an eligible property that is a foreclosure, the claimant may claim 90 percent of the qualified housing expenses that the claimant paid in the taxable year.