WEDA Legislative Update: What’s Happening Under the Capitol Dome

WEDA Legislative Update: What’s Happening Under the Capitol Dome

As we move into the holiday season and look toward the new year, the WEDA Government Affairs Team is excited to report that WEDA is in a strong position to achieve several of our legislative goals before state lawmakers adjourn early next spring.

From key childcare and housing proposals to TIF reform and flexibility initiatives, WEDA is busy at work in the State Capitol to advance policies that strengthen Wisconsin’s economic development toolbox and provide WEDA members with additional policy tools to grow their local economies. Please find below an overview of WEDA’s current top policy priorities and their status in the legislative process:

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 BTC 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 both the Assembly (on a 92-4 vote) and the Senate (on a 33-0 vote). The bill will now be sent to the Governor for final action.
- 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 was passed by the Assembly on an 88-7 vote. The bill was also approved by a key Senate Committee on a 5-0 vote and is awaiting further action by the full 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 with more flexibility to use Tax Incremental Financing to promote residential development: 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 was passed by the Assembly on a 55-39 vote. The bill was also approved by a key Senate Committee on a 5-0 vote and is awaiting further action by the full 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. The bill was also approved by a key Senate Committee on a 4-1 vote and is awaiting further action by the full Senate.
- BILL ANALYSIS: CLICK HERE for a more detailed description on the bill and amendments attached to the bill.

Assembly Bill 375– This legislation would enhance the state Historic Preservation Tax Credit (HTC) program, which is a proven economic development tool that has boosted Wisconsin’s ability to attract capital investment, create jobs, boost tourism, and revitalize Mainstreet’s and downtowns in communities across the state. The bill would make several changes to the current program, including a provision to “decouple” the state HTC program from the federal HTC for projects only applying for the state tax credit. This will allow smaller projects in smaller communities to more easily qualify for the state tax credit. More specifically, the legislation as amended would make the following changes to current law:
1. 1. Eliminates the federal expenditure requirement for the state credit, while keeping Wisconsin’s more straightforward $50,000 minimum expenditure threshold. This critical provision would expand tax credit access for smaller historic preservation projects, both in rural and urban parts of the state that are only applying for the state tax credit.
  2. Eliminates the provision that requires projects only applying for the state HTC to obtain approval from the U.S. Secretary of the Interior. These projects would still require approval from the State Historic Preservation Officer.
  3. Maintains the current $3.5 million state HTC cap on projects undertaken on the same parcel of land. However, it would modify the cap so projects on the same parcel can reapply for the credit every 15 years if new restoration is taking place. This change would allow for longer term investments in key historic preservation projects.

- STATUS: AB 375 was passed by the Assembly on an 88-7 vote. The bill was also approved by a key Senate Committee on a 8-0 vote and is awaiting further action by the full Senate.
- BILL ANALYSIS: CLICK HERE for a more detailed description on the bill and amendments attached to the bill.

For more information on the above-listed legislation or any other legislative matter, please contact WEDA Vice President of Legislative Affairs, Michael Welsh, at mwelsh@weda.org.