The 2017-19 state budget bill proposes changes to the historic rehabilitation tax credit (HTC) program, including a $10 million cap on credits, a competitive grant process and a clawback provision. These proposals would have a crippling effect on one of Wisconsin’s most successful economic development programs. The WRA opposes these proposed changes to the HTC program.
Background:
- In 2014, the HTC generated $277.7 million in private investments, created 2,185 new jobs, provided $22 million in state income, sales and payroll tax revenues, and $2.11 million in annual local property tax revenues.
- The low $10 million cap on total credits available, the unnecessary competitive grant process, and the clawback provision would mean fewer jobs, make smaller projects ineligible, and make financing for many projects difficult.
- The HTC program is a low-risk program where tax credits are awarded only after the project is finished.
What’s in play:
Proposal: The WRA will work with legislators and allies to maintain the current HTC program and defeat this proposal.
Bill status:
Currently in committee review.
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