AB 544

Workforce housing tax credits

This bill creates a workforce housing tax credit program administered by the

Wisconsin Housing and Economic Development Authority.

Under the bill, WHEDA may certify a person to claim a nonrefundable credit

to offset income and franchise taxes if all of the following conditions are satisfied:

1. The project for which the credit is issued is an eligible workforce housing

project. Under the bill, a project is an eligible workforce housing project only if the

project is for the construction or renovation of residential real property located in a

county with a population density of less than 155 persons per square mile, there is

a need for additional manufacturing workers in the area in which the project is

located, and a lack of adequate housing in the area is a barrier to filling that need.

2. The person is a lender financing an eligible workforce housing project, the

developer of the project, or the business for whose benefit the project is being carried

out.

3. The person has exhausted all funding available for the project from

community development block grants, local assistance, including tax incremental

financing, and assistance otherwise available from WHEDA.

4. The occupants of the housing being constructed or renovated will have a

household income that satisfies the income limitations applicable for the

homeownership mortgage loan program administered by WHEDA under current

law.

The bill requires WHEDA to establish a competitive process for the award of

tax credits that gives priority to all of the following:

1. The number of jobs that will be created in connection with the eligible

workforce housing project.

2. The amount of matching funds secured by the applicant.

3. The applicant's readiness to proceed with the project.

Under the bill, WHEDA may not certify a person to claim a workforce housing

tax credit in an amount that exceeds 50 percent of the total cost of the eligible

workforce housing project. Additionally, WHEDA may not award more than

$10,000,000 in workforce housing tax credits and no credit may be awarded after

December 31, 2021. The bill requires WHEDA to transfer $10,000,000 from its

surplus fund to the state's general fund as an offset against the tax credits WHEDA

awards under the program.

Additionally, the bill includes certain contracting and tax credit revocation

requirements and requires WHEDA to coordinate with the Wisconsin Economic

Development Corporation to administer the tax credit program. WHEDA must

submit a report on the program to the Joint Committee on Finance no later than

September 31, 2022.

Reports on economic development revolving loan funds