October 17, 2021

Volume XI, Number 290

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October 15, 2021

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Wisconsin Doubles Supplemental Historic Rehabilitation Tax Credit

Historic Tax Credits have frequently been used in Wisconsin to assist in financing new development while attempting to preserve the charac­­ter of historic structures. The Governor of Wisconsin just signed a new law substantially increasing this tool. Under prior Wisconsin law, a person could claim an income and franchise tax credit equal to 10% of “qualified rehabilitation expenditures” on certified historic structures located in Wisconsin. The new law now doubles the State tax credit awarded for “qualified rehabilitation expenditures” from 10% to 20% of those costs and broadens the types of structures that are eligible for the credit.

Under the new law, a Wisconsin taxpayer may claim an income and franchise tax credit for 20% of the qualified rehabilitation expenses for certified historic structures or 20% of the qualified rehabilitation expenses forqualified rehabilitated buildings (previously, only rehabilitation expenses on certified historic structures were eligible for the Wisconsin tax credit). To claim the credit for certified historic structures or for qualified rehabilitated buildings, both the expenses incurred and the structure or building must meet certain conditions as explained in the law. The new increased credit amount applies if the qualified expenditures are greater than $50,000, and the rehabilitated building is placed into service after December 31, 2012.

It is anticipated the increased credit amount will serve as a catalyst for the rehabilitation of older buildings into rejuvenated uses and may assist developers in obtaining loans for such rehabilitation work.

©2021 MICHAEL BEST & FRIEDRICH LLPNational Law Review, Volume III, Number 346
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About this Author

Nancy Leary Haggerty, Land Resources, Real Estate Attorney Michael Best Law Firm
Partner

Nancy is a partner in the Land & Resources Practice Group. Her more than 30 years of experience covers a broad range of real estate law, including assisting clients in purchases, sales and leases of property, and development and zoning work; representing borrowers and lenders in real estate loans; assisting in foreclosures and workouts; advising on questions of condominium law; negotiating construction and architects' contracts; and assisting in real estate litigation.

She has worked extensively with TIF financing and municipal development...

414-225-4961
Daniel LaFrenz, Michael Best, transactional attorney, diverse business tax law,
Associate

Daniel focuses on business and tax law issues, and his diverse practice addresses state and federal income tax, international tax, mergers and acquisitions, new market tax credit (NMTC) financing, and state sales tax concerns. Clients value Daniel’s advice regarding business transactions, including his strategic counsel in regard to organizing and forming tax-exempt business entities, such as 501(c)(3) and other non-profit organizations.

A certified public accountant (CPA), Daniel also advises clients on federal and multi-state income tax...

414-277-3461
Steven R. Battenberg, business and tax lawyer, Waukesha law firm, Michael best
Partner

Steve focuses his practice in the areas of taxation and general corporate matters with a specific emphasis on non-profit tax, partnership tax, and Section 1031 Tax Deferred Exchange transactions. He advises clients on federal, state, and local business and tax issues arising from a broad range of complex transactions involving:

  • Organization and assistance with business start-ups
  • Buying and selling businesses
  • Succession planning for businesses and real estate transactions (including tax-deferred 1031 exchanges and low-income housing tax credit deals)
  • ...
262-956-6526
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