Wisconsin temporarily suspended its historic preservation tax credit program as of yesterday, June 23, 2014. The root problem behind the decision was an interesting one: the program was just too popular.
In December 2013, Wisconsin passed legislation permitting taxpayers to take a tax credit equal to 20% of their qualified rehabilitation expenditures. Click here to read a previous e-alert published in December regarding this legislation. The credit became available January 1 of this year.
Prior to the implementation of the new credit amounts, Department of Revenue projected Wisconsin taxpayers would receive approximately $4,000,000 in tax credits during 2014. Through just over half of the year, Wisconsin has authorized over $35,000,000 in tax credits. As a result, Reed Hall, Chief Executive Officer of Wisconsin Economic Development Authority, put a moratorium on the historic preservation tax credit for the State of Wisconsin.