State workforce housing income and franchise tax credit and requiring the exercise of rule-making authority. (FE)

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

Under the bill, a “qualified housing development” is a residential rental property development located in Wisconsin if at least 25 percent of the rental units are occupied by individuals whose income is at least 61 percent but not more than 100 percent of area median income and the rents for such units do not exceed 30 percent of area median income.

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

3. The qualified housing development is the subject of a recorded restrictive covenant requiring that the development be maintained and operated as a qualified housing development for at least ten years.

4. The tax credit certification is issued in accordance with a qualified allocation plan established by WHEDA.

The bill requires that WHEDA give preference to qualified housing developments located in a city, village, or town of fewer than 150,000 residents. The bill caps at $42,000,000 the amount of credits WHEDA may issue each year, including all amounts each person is eligible to claim for each year of the credit.

However, the bill raises that cap for each year by an amount equal to all unallocated credits from prior years and all previously allocated credits that have been revoked, cancelled, or otherwise recovered by WHEDA.

The bill also requires that WHEDA submit an annual report to the legislature concerning the program's progress.