Key WEDA Legislative Priorities Advance at the State Capitol 

Key WEDA Legislative Priorities Advance at the State Capitol  

The State Capitol has been a busy place over the last several weeks, and more importantly for WEDA members and economic development professionals across the state, several of WEDA’s legislative priorities are advancing through the legislative process. In fact, the WEDA Government Affairs Team is pleased to report the following bills – and key priorities for the organization – were recently passed by the state Assembly:

• Assembly Bill 280 – This legislation would enhance the housing and childcare tax credit incentives under the Business Development Tax Credit (BTC) Program to encourage greater workforce housing and childcare investment by Wisconsin businesses. The bill would allow BTC investments in workforce housing and childcare to include contributions made by eligible businesses to a third party for those purposes. By expanding eligibility beyond capital expenditures, the bill gives employers the flexibility to make creative, community-oriented investments in partnership with local organizations. This legislation would also allow workforce housing development and childcare programs driven by the tax incentives to benefit entire communities rather than just the employees of BTC eligible companies. Ultimately, the legislation will help address two pressing economic development challenges and strengthen the state’s workforce.
  • STATUS: AB 280 was passed by the Assembly on a 92-4 vote and is awaiting further action in the Senate.
  • BILL ANALYSIS: CLICK HERE for a more detailed description on the bill and amendments attached to the bill.

• Assembly Bill 451 – This legislation would create a new type of Tax Incremental District (TID) in Wisconsin – a Residential TID. Under the “Housing TID” created by this bill, municipalities would be able to use this new tool to promote owner-occupied housing development and finance residential infrastructure. Further, the bill specifies Residential TIDs would not be subject to the current law 12% TIF limit. Instead, the total value of all residential TIDs may not exceed 3% of a municipality’s equalized property value. 
  • STATUS: AB 451, which was part of a broader housing legislative package, was passed by the Assembly on an 88-7 vote and is awaiting further action in the Senate.
  • BILL ANALYSIS: CLICK HERE for a more detailed description on the bill and amendments attached to the bill.

• Assembly Bil 453 – This legislation includes numerous provisions aimed at boosting housing development, including changes to community comprehensive plans and requests to change zoning classifications. The bill also includes the following key provisions to provide communities more flexibility to use Tax Incremental Financing to promote residential development, including: 1.) Increasing the current law TIF housing extension for TIDs at the end of their lifespan from one to two years. The extension allows communities to continue to collect increment created by the TID after the TID closes, as long as the increment is used to improve a community’s housing stock; 2.) To clear up ongoing confusion related to a community’s use of TIF for residential development, the bill defines “newly platted residential development” to mean residential development on a parcel that has not previously been the site of permanent structures other than agricultural structures.  
  • STATUS: AB 453, which was part of a broader housing legislative package, was passed by the Assembly on a 55-39 vote and is awaiting further action in the Senate.
  • BILL ANALYSIS: CLICK HERE for a more detailed description on the bill and amendments attached to the bill.

• Assembly Bill 194 – This legislation makes critical changes to project and loan application requirements for the following three WHEDA administrated workforce housing revolving loan programs created in 2023 to increase affordable housing options across the state: the Infrastructure Access Program, Restore Main Street Program, and Commercial-to-Housing Conversion Program. The changes to the programs under the bill, which are needed to make the RLFs more attractive and usable for developers and communities, include modifications to project eligibility and maximum loan amounts. Most importantly, the bill would repeal a current law provision that prohibits eligible projects from paring RLF program financing with tax incremental financing (TIF) or federal historic rehabilitation tax credits.  
  • STATUS: AB 194 was passed by the Assembly on a voice vote and is awaiting further action in the Senate.
  • BILL ANALYSIS: CLICK HERE for a more detailed description on the bill and amendments attached to the bill.