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AB976: Bill Text
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2025 - 2026 LEGISLATURE
LRB-6217/1
JK&MDE:wlj&cjs
2025 ASSEMBLY BILL 976
January 30, 2026 - Introduced by Representatives
Doyle
,
Johnson
,
Arney
,
Bare
,
Brown
,
DeSmidt
,
Emerson
,
Fitzgerald
,
Goodwin
,
Hysell
,
Joers
,
Kirsch
,
Mayadev
,
Miresse
,
Moore Omokunde
,
Neubauer
,
Palmeri
,
Prado
,
Roe
,
Sheehan
,
Sinicki
,
Snodgrass
,
Spaude
,
Stubbs
,
Subeck
,
Taylor
,
Andraca
,
Haywood
,
Stroud
,
Tenorio
,
Udell
and
Vining
, cosponsored by Senators
Spreitzer
,
Wall
,
Dassler-Alfheim
,
Ratcliff
,
Roys
,
Smith
,
Carpenter
,
Hesselbein
,
Larson
and
Wirch
. Referred to Committee on Housing and Real Estate.
AB976,1,5
1
An Act
to renumber
76.639 (3);
to amend
71.07 (8b) (a) 7., 71.07 (8b) (c) 2.,
2
71.28 (8b) (a) 7., 71.28 (8b) (c) 2., 71.47 (8b) (a) 7., 71.47 (8b) (c) 2., 76.639 (1)
3
(g), 76.67 (2), 234.45 (1) (e) and 234.45 (4);
to create
76.639 (3) (b), 234.45 (1)
4
(em) and 234.45 (5m) of the statutes;
relating to:
changes to the low-income
5
housing tax credit.
Analysis by the Legislative Reference Bureau
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.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
AB976,1
1
Section
1
.
71.07 (8b) (a) 7. of the statutes is amended to read:
AB976,2,5
2
71.07
(8b)
(a) 7. “Qualified development” means a qualified low-income
3
housing project under section
42
(g) of the Internal Revenue Code that is
financed
4
with tax-exempt bonds, pursuant to section
42
(i) (2) of the Internal Revenue Code,
5
and
located in this state.
AB976,2
6
Section
2
.
71.07 (8b) (c) 2. of the statutes is amended to read:
AB976,3,8
7
71.07
(8b)
(c) 2. A partnership, limited liability company, or tax-option
8
corporation may not claim the credit under this subsection. The partners of a
9
partnership, members of a limited liability company, or shareholders in a tax-option
10
corporation may claim the credit under this subsection based on eligible costs
11
incurred by the partnership, limited liability company, or tax-option corporation.
12
The partnership, limited liability company, or tax-option corporation shall calculate
13
the amount of the credit that may be claimed by each partner, member, or
14
shareholder and shall provide that information to the partner, member, or
15
shareholder. For shareholders of a tax-option corporation, the credit may be
16
allocated in proportion to the ownership interest of each shareholder. Credits
17
computed by a partnership or limited liability company may be claimed in
18
proportion to the ownership interests of the partners or members or allocated to
1
partners or members as provided in a written agreement among the partners or
2
members that is entered into no later than the last day of the taxable year of the
3
partnership or limited liability company, for which the credit is claimed. Any
4
partner or member who claims the credit as allocated by a written agreement shall
5
provide a copy of the agreement with the tax return on which the credit is claimed.
6
A
Except as provided in s. 71.745, a
person claiming the credit as provided under
7
this subdivision is solely responsible for any tax liability arising from a dispute with
8
the department of revenue related to claiming the credit.
AB976,3
9
Section
3
.
71.28 (8b) (a) 7. of the statutes is amended to read:
AB976,3,13
10
71.28
(8b)
(a) 7. “Qualified development” means a qualified low-income
11
housing project under section
42
(g) of the Internal Revenue Code that is
financed
12
with tax-exempt bonds, pursuant to section
42
(i) (2) of the Internal Revenue Code,
13
and
located in this state.
AB976,4
14
Section
4
.
71.28 (8b) (c) 2. of the statutes is amended to read:
AB976,4,10
15
71.28
(8b)
(c) 2. A partnership, limited liability company, or tax-option
16
corporation may not claim the credit under this subsection. The partners of a
17
partnership, members of a limited liability company, or shareholders in a tax-option
18
corporation may claim the credit under this subsection based on eligible costs
19
incurred by the partnership, limited liability company, or tax-option corporation.
20
The partnership, limited liability company, or tax-option corporation shall calculate
21
the amount of the credit that may be claimed by each partner, member, or
22
shareholder and shall provide that information to the partner, member, or
23
shareholder. For shareholders of a tax-option corporation, the credit may be
24
allocated in proportion to the ownership interest of each shareholder. Credits
1
computed by a partnership or limited liability company may be claimed in
2
proportion to the ownership interests of the partners or members or allocated to
3
partners or members as provided in a written agreement among the partners or
4
members that is entered into no later than the last day of the taxable year of the
5
partnership or limited liability company, for which the credit is claimed. Any
6
partner or member who claims the credit as allocated by a written agreement shall
7
provide a copy of the agreement with the tax return on which the credit is claimed.
8
A
Except as provided in s. 71.745, a
person claiming the credit as provided under
9
this subdivision is solely responsible for any tax liability arising from a dispute with
10
the department of revenue related to claiming the credit.
AB976,5
11
Section
5
.
71.47 (8b) (a) 7. of the statutes is amended to read:
AB976,4,15
12
71.47
(8b)
(a) 7. “Qualified development” means a qualified low-income
13
housing project under section
42
(g) of the Internal Revenue Code that is
financed
14
with tax-exempt bonds, pursuant to section
42
(i) (2) of the Internal Revenue Code,
15
and
located in this state.
AB976,6
16
Section
6
.
71.47 (8b) (c) 2. of the statutes is amended to read:
AB976,5,12
17
71.47
(8b)
(c) 2. A partnership, limited liability company, or tax-option
18
corporation may not claim the credit under this subsection. The partners of a
19
partnership, members of a limited liability company, or shareholders in a tax-option
20
corporation may claim the credit under this subsection based on eligible costs
21
incurred by the partnership, limited liability company, or tax-option corporation.
22
The partnership, limited liability company, or tax-option corporation shall calculate
23
the amount of the credit that may be claimed by each partner, member, or
24
shareholder and shall provide that information to the partner, member, or
1
shareholder. For shareholders of a tax-option corporation, the credit may be
2
allocated in proportion to the ownership interest of each shareholder. Credits
3
computed by a partnership or limited liability company may be claimed in
4
proportion to the ownership interests of the partners or members or allocated to
5
partners or members as provided in a written agreement among the partners or
6
members that is entered into no later than the last day of the taxable year of the
7
partnership or limited liability company, for which the credit is claimed. Any
8
partner or member who claims the credit as allocated by a written agreement shall
9
provide a copy of the agreement with the tax return on which the credit is claimed.
10
A
Except as provided in s. 71.745, a
person claiming the credit as provided under
11
this subdivision is solely responsible for any tax liability arising from a dispute with
12
the department of revenue related to claiming the credit.
AB976,7
13
Section
7
.
76.639 (1) (g) of the statutes is amended to read:
AB976,5,17
14
76.639
(1)
(g) “Qualified development” means a qualified low-income housing
15
project under section
42
(g) of the Internal Revenue Code that is
financed with tax-
16
exempt bonds, pursuant to section
42
(i) (2) of the Internal Revenue Code, and
17
located in this state.
AB976,8
18
Section
8
.
76.639 (3) of the statutes is renumbered 76.639 (3) (a).
AB976,9
19
Section
9
.
76.639 (3) (b) of the statutes is created to read:
AB976,6,12
20
76.639
(3)
(b) A partnership, limited liability company, or tax-option
21
corporation may not claim the credit under this section. An insurer, if a partner of
22
a partnership, member of a limited liability company, or shareholder in a tax-option
23
corporation, may claim the credit under this section based on eligible costs incurred
24
by the partnership, limited liability company, or tax-option corporation. The
1
partnership, limited liability company, or tax-option corporation shall calculate the
2
amount of the credit that may be claimed by the insurer as a partner, member, or
3
shareholder and shall provide that information to the insurer. If an insurer is a
4
shareholder of a tax-option corporation, the credit may be allocated in proportion to
5
its ownership interest as a shareholder. If an insurer is a partner of a partnership
6
or member of a limited liability company, credits may be claimed in proportion to
7
the insurer’s ownership interest or allocated to the insurer as provided in a written
8
agreement among the partners or members that is entered into no later than the
9
last day of the taxable year of the partnership or limited liability company for which
10
the credit is claimed. Any insurer who claims the credit as allocated by a written
11
agreement shall provide a copy of the agreement with the tax return on which the
12
credit is claimed.
AB976,10
13
Section
10
.
76.67 (2) of the statutes is amended to read:
AB976,7,2
14
76.67
(2)
If any domestic insurer is licensed to transact insurance business in
15
another state, this state may not require similar insurers domiciled in that other
16
state to pay taxes greater in the aggregate than the aggregate amount of taxes that
17
a domestic insurer is required to pay to that other state for the same year less the
18
credits under ss. 76.635, 76.636, 76.637, 76.638,
76.639,
and 76.655, except that the
19
amount imposed shall not be less than the total of the amounts due under ss. 76.65
20
(2) and 601.93 and, if the insurer is subject to s. 76.60, 0.375 percent of its gross
21
premiums, as calculated under s. 76.62, less offsets allowed under s. 646.51 (7) or
22
under ss. 76.635, 76.636, 76.637, 76.638, 76.639, and 76.655 against that total, and
1
except that the amount imposed shall not be less than the amount due under s.
2
601.93.
AB976,11
3
Section
11
.
234.45 (1) (e) of the statutes is amended to read:
AB976,7,7
4
234.45
(1)
(e) “Qualified development” means a qualified low-income housing
5
project under section
42
(g) of the Internal Revenue Code that is
financed with tax-
6
exempt bonds, pursuant to section
42
(i) (2) of the Internal Revenue Code, and
7
located in this state.
AB976,12
8
Section
12
.
234.45 (1) (em) of the statutes is created to read:
AB976,7,11
9
234.45
(1)
(em) “Rural area” means a city, village, or town in this state that
10
has a population of fewer than 10,000 and that is at least 10 miles from any city,
11
village, or town that has a population of at least 50,000.
AB976,13
12
Section
13
.
234.45 (4) of the statutes is amended to read:
AB976,7,20
13
234.45
(4)
Allocation limits.
In any calendar year, the aggregate amount of
14
all state tax credits for which the authority certifies persons in allocation
15
certificates issued under sub. (3) in that year may not exceed
$42,000,000
16
$100,000,000
, including all amounts each person is eligible to claim for each year of
17
the credit period, plus the total amount of all unallocated state tax credits from
18
previous calendar years and plus the total amount of all previously allocated state
19
tax credits that have been revoked or cancelled or otherwise recovered by the
20
authority.
AB976,14
21
Section
14
.
234.45 (5m) of the statutes is created to read:
AB976,8,2
22
234.45
(5m)
Preference for rural communities.
(a) In each qualified
23
allocation plan adopted by the authority after the effective date of this paragraph
24
.... [LRB inserts date], the authority shall ensure that at least 35 percent of the
1
value of all state tax credits the authority allocates each year pursuant to the
2
qualified allocation plan are for qualified developments located in rural areas.
AB976,8,8
3
(b) Paragraph (a) does not apply in any year in which the authority cannot
4
satisfy the 35 percent allocation threshold because the authority does not receive a
5
sufficient number of applications for allocation certificates for qualified
6
developments located in rural areas that have timely submitted complete
7
applications that meet all threshold requirements of the applicable qualified
8
allocation plan as determined by the authority.
AB976,15
9
Section
15
. Initial applicability.
AB976,8,11
10
(
1
)
The treatment of ss. 71.07 (8b) (a) 7., 71.28 (8b) (a) 7., 71.47 (8b) (a) 7., and
11
76.639 (1) (g) first applies to taxable years beginning after December 31, 2024.
AB976,8,12
12
(end)
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