Wisconsin § 76.633 - Community development entity investment credit.

§ 76.633. Community development entity investment credit.

76.633(1) (1) Definitions. In this section: 76.633(1)(a) (a) “Applicable percentage” means 0 percent for the first 2 credit allowance dates and 10 percent for the next 5 credit allowance dates. 76.633(1)(b) (b) “CDFI fund” means the community development financial institutions fund of the U.S. treasury department or any agency or instrumentality of the federal government that administers the program authorized under section 45D of the Internal Revenue Code. 76.633(1)(c) (c) “Credit allowance date” means, with respect to any qualified equity investment, any of the following dates: 76.633(1)(c)1. 1. The date on which the investment is initially made. 76.633(1)(c)2. 2. Each of the 6 anniversary dates of that date thereafter. 76.633(1)(cm) (cm) “Department” means the department of revenue. 76.633(1)(d) (d) “Metro county” means Columbia, Dane, Green, Iowa, Milwaukee, Ozaukee, Washington, and Waukesha Counties. 76.633(1)(e) (e) 76.633(1)(e)1. 1. “Principal business operations” means the place or places where at least 60 percent of a qualified active low-income community business’s employees work or where employees that are paid at least 60 percent of the business’s payroll work. 76.633(1)(e)2. 2. “Principal business operations” includes places where an out-of-state business agrees to relocate employees or an in-state business agrees to hire employees using the proceeds of a qualified low-income community investment when the business satisfies the definition under subd. 1. within 180 days, or by a later date agreed by the department, after receiving the qualified low-income community investment. 76.633(1)(f) (f) “Purchase price” means the amount paid to a qualified community development entity for a qualified equity investment. 76.633(1)(g) (g) 76.633(1)(g)1. 1. “Qualified active low-income community business” has the meaning given in section 45D (d) (2) of the Internal Revenue Code except as provided in subd. 2. “Qualified active low-income community business” includes a business for the duration that it receives a qualified low-income community investment if the qualified community development entity reasonably expects at the time that it makes the qualified low-income community investment in the business that the business will continue to be considered a qualified active low-income community business under section 45D (d) (2) of the Internal Revenue Code throughout the entire period that it receives the qualified low-income community investment. 76.633(1)(g)2. 2. “Qualified active low-income community business” does not include a business that derives or projects to derive 15 percent or more of its annual income from the rental or sale of real estate. This subdivision does not apply to a business that is controlled by or under common control with another business if the 2nd business does not derive or project to derive 15 percent or more of its annual income from the rental or sale of real estate and is the primary tenant of the real estate leased from the initial business. 76.633(1)(h) (h) “Qualified community development entity” has the meaning given in section 45D (c) of the Internal Revenue Code but includes only entities that have entered into, or that are controlled by an entity that has entered into, an allocation agreement with the CDFI fund with respect to tax credits authorized under section 45D of the Internal Revenue Code that includes this state within the service area set forth in that allocation agreement. 76.633(1)(i) (i) “Qualified equity investment” means any equity investment in a qualified community development entity to which all of the following apply: 76.633(1)(i)1. 1. Either of the following applies: 76.633(1)(i)1.a. a. The equity investment is acquired after December 31, 2024, at its original issuance solely in exchange for cash. 76.633(1)(i)1.b. b. The equity investment is acquired by an insurer and a prior holder of the equity investment acquired it after December 31, 2024, at its original issuance solely in exchange for cash. 76.633(1)(i)2. 2. The qualified community development entity uses at least 100 percent of the purchase price of the equity investment to make qualified low-income community investments in qualified active low-income community businesses that have their principal business operations in this state. 76.633(1)(i)3. 3. The equity investment is designated by the community development entity as a qualified equity investment under sub. (5) . 76.633(1)(i)4. 4. If the qualified community development entity is not domiciled in this state and the entity’s controlling entity, if any, is not domiciled in this state, the qualified community development entity has designated at least 50 percent of the equity investment as a qualified equity investment under section 45D of the Internal Revenue Code. 76.633(1)(i)5. 5. The equity investment is certified by the department as not exceeding the limit under sub. (4) (a) . 76.633(1)(j) (j) “Qualified low-income community investment” means any capital or equity investment in, or loan to, a qualified active low-income community business. 76.633(1)(k) (k) “Rural county” means any county in this state that is not a metro county. 76.633(2) (2) Filing claims. For taxable years beginning after December 31, 2024, an insurer may claim as a credit against the fees due under s.