ACT TODAY: Please Urge Your State Lawmakers to CO-SPONSOR the Historic Preservation Tax Credit “Repair” Bill

Wisconsin’s Historic Preservation Tax Credit (HTC) program, initially created in 1989 to enhance the federal HTC credit, not only helps preserve Wisconsin’s architectural heritage, but it also plays a key role in driving economic development across the state. Under current state law, eligible historic preservation projects can receive a state income tax credit of 20 percent of the qualified rehabilitated expenditures up to $3.5 million.

However, several changes over the years to both the state and federal tax credit programs have created unintended confusion and eligibility obstacles that have delayed or “killed” historic rehabilitation projects, especially smaller projects. The recently proposed Historic Preservation Tax Credit “Repair” Bill (LRB 2879 and 3841) will modernize the state’s HTC program by reducing bureaucratic red tape, accelerating return or investment, and making the program more accessible for smaller projects. In short, the legislation will enhance this key economic development program that has boosted Wisconsin’s ability to attract capital investment, create jobs, and revitalize Mainstreet’s and downtowns across the state.

LRB 2879/3841 is currently being circulated for co-sponsorship – the process before bill introduction that provides state lawmakers with the opportunity to add their name to the legislation to show their support. To help build support for this important legislation, please email your state lawmakers TODAY and urge them to co-sponsor the Historic Preservation Tax Credit “Repair” Bill.

BILL OVERVIEW:

LRB 2879/3841 makes the following changes to the state HTC program to help encourage smaller developments, allow projects to capture tax benefits more quickly, and provide greater flexibility for developers and property owners:

  • To qualify for the state credit under current law, a project’s qualified rehabilitation expenditure must be at least $50,000 AND meet the federal requirement that rehabilitation costs be greater than the building’s adjusted basis. A building’s adjusted basis value can be quite large, pricing smaller projects out of the program. LRB 2879/3841 stipulates the federal requirement does NOT apply to projects seeking only the state tax credit, while maintaining the $50,000 threshold. This allows smaller projects, often found in distressed urban and rural areas, to qualify.
  • Under current law, the state credit is claimed over five years, which aligns with the federal schedule. LRB 2879/3841 allows the entire state credit to be claimed in one year, increasing the impact of the tax credit and expediting return on investment.
  • Under current law, the state tax credit is capped at $3.5 million for all projects undertaken on the same parcel. LRB 2879/3841 retains the tax credit cap, but only within a rolling 10-year window. This will allow properties to reutilize the state credit for future rehabilitation after a 10-year period expires.

WHAT YOU CAN DO TO HELP:

Please email your state lawmakers TODAY (and no later than Thursday, July 10) and urge them to CO-SPONSOR the Historic Preservation Tax Credit “Repair” Bill. It will only take a few minutes of your time. Simply cut-and-paste the linked sample email (feel free to personalize it) and send it to BOTH your state Representative and state Senator. If you do not know who your state lawmakers are, or do not have their email contact information, simply CLICK HERE and type your home address in the text box at the top of the page.

Thank you for advancing WEDA’s legislative advocacy efforts to enhance an already successful program and boost economic development in Wisconsin.