SB 40

Under current law, the Wisconsin Housing and Economic Development

Authority administers a low-income housing tax credit program. Under that

program, a person may claim as a credit against the person's income or franchise tax

liability, or against the person's liability for fees imposed on an insurer, the amount

allocated by WHEDA in an “allocation certificate” for a qualified low-income housing

project. The annual amount of tax credits WHEDA certifies under the program may

not exceed $42,000,000. The bill increases that annual cap to $100,000,000.

The bill also requires that WHEDA, if possible, ensure that at least 35 percent

of the tax credits it allocates each year under the program are for qualified

low-income housing projects in rural areas in Wisconsin and removes the

requirement that a qualified low-income housing project be financed with

tax-exempt bonds.

Finally, the bill makes a technical change to the credit for insurers so that an

insurer who is a shareholder of a tax-option corporation, a partner of a partnership,

or a member of a limited liability company may claim the credit.