SB 534

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.