SB 706

This bill creates a state tax credit program administered by the Wisconsin

Housing and Economic Development Authority that is similar to a federal

low-income housing tax credit program also administered by WHEDA. Under the

state program, WHEDA may certify a person to claim a nonrefundable income and

franchise tax credit if all of the following conditions are satisfied:

1. The person has an ownership interest in a qualified development. Under the

bill, a “qualified development” is a low-income housing project for purposes of the

federal low-income housing tax credit program, located in Wisconsin, and financed

with tax-exempt bonds.

2. The tax credit is necessary for the financial feasibility of the qualified

development.

3. The qualified development is the subject of a recorded restrictive covenant

requiring that for at least 15 years, among other things, the development must be

maintained and operated as a qualified development.

4. The tax credit certification is issued in accordance with a qualified allocation

plan WHEDA is required to establish under the federal low-income housing tax

credit program.

Under the bill, WHEDA must give preference to qualified developments located

in a city, village, or town of fewer than 150,000. The bill also caps at $42,000,000 the

total amount of tax credits WHEDA may issue under the state program in a calendar

year. However, the bill raises that cap for each calendar year by an amount equal

to the total amount of all unallocated state tax credits from previous calendar years

and the total amount of all previously allocated state tax credits that have been

revoked or cancelled or otherwise recovered by WHEDA.

The bill also requires that WHEDA submit an annual report to the legislature

concerning the progress of the program.