Wisconsin Gov. Scott Walker signed Act 176 into law establishing a state housing tax credit program for the development or rehabilitation of affordable rental housing.
The Wisconsin Housing and Economic Development Authority (WHEDA), which administers the federal housing tax credit program in the state, will lead the new state program, including certification of eligibility and monitoring compliance. The Wisconsin Department of Revenue will issue the state credits on the tax returns of the recipients.
“This is tremendous news for the entire state,” said Wyman Winston, WHEDA executive director. “The economic benefits are incredible, including the stimulation of quality rental housing, the creation of construction jobs, a reduction in cost burdens for renters, and an infusion of private capital throughout Wisconsin.”
The new state tax credit program can be matched with the federal 4% credit program to increase the leverage and create the potential for a significant increase in affordable housing in Wisconsin.
Act 176 gives preference to qualified developments located in municipalities with populations under 150,000. The allocation for the 2018 program is $7 million in tax credits for a period of six years. Each $7 million issued generates $42 million in credits over the six-year period. There is no sunset to the program, according to WHEDA.
Since the federal housing tax credit program began in 1986, WHEDA has awarded more than $363 million in tax credits resulting in the development and rehabilitation of more than 54,000 units of affordable rental housing for low- to moderate-income families, seniors, and persons with special needs.
