
Wisconsin’s future: How OBBBA strengthens state real estate and development
The 900-plus page “One Big Beautiful Bill” that was signed into law last month offers new opportunities for Wisconsin developers. Changes to the Low-Income Housing Tax Credit (LIHTC), Opportunity Zones and Section 179 Expensing are among the tools that can help the local and regional real estate industry. Under the new law, LIHTC has a permanent 12% increase in 9% LIHTC allocation authority that starts Jan. 1, 2026. This could result in additional LIHTC units annually with a durable supply-side boost to the housing credit system and gives state agencies more room to address backlog and preservation needs. Starting next year, only 25% of the aggregate basis of a project must be financed with tax-exempt bonds to qualify for 4% LIHTC. While some may expect an increase or flurry of activity in the LIHTC space, the new provisions are designed to allocate credits pro rata across urban, minor urban and rural areas. This means no single region of Wisconsin, whether Milwaukee, Madison, or smaller cities, will receive a disproportionate share. Instead, the program is intended to maintain balance and distribute incentives evenly across the state... ...more Leo’s notes: The new “One Big Beautiful Bill” brings both opportunities and challenges for Wisconsin’s housing sector. A permanent 12% boost to Low-Income Housing Tax Credits and expanded Opportunity Zones could unlock more affordable and workforce housing statewide—particularly in smaller communities thanks to new rural investment funds. Yet, as a housing advocate, I’m concerned that rolling back clean energy incentives undermines long-term affordability and resilience; without tools to lower utility costs and improve efficiency, we risk building homes families can afford today but struggle to sustain tomorrow. Ken Notes: Also the credits are designed for the developers not for the actual residents. I believe the solutions are not in credits, but rather in working together to create mixed income neighborhoods with housing for a variety on income levels. Another note, Baristas do not have lobbyists to advocate for affordable homes, yet developers do. The The National Association of Realtors spends more money lobbying and on campaigns than most other business groups.
Share this article on your social outlets
Our Sponsors - - Volume: 25 - WEEK: 36 Date: 9/2/2025 12:00:47 PM -

Wisconsin’s future: How OBBBA strengthens state real estate and development

The 900-plus page “One Big Beautiful Bill” that was signed into law last month offers new opportunities for Wisconsin developers. Changes to the Low-Income Housing Tax Credit (LIHTC), Opportunity Zones and Section 179 Expensing are among the tools that can help the local and regional real estate industry.

Under the new law, LIHTC has a permanent 12% increase in 9% LIHTC allocation authority that starts Jan. 1, 2026. This could result in additional LIHTC units annually with a durable supply-side boost to the housing credit system and gives state agencies more room to address backlog and preservation needs. Starting next year, only 25% of the aggregate basis of a project must be financed with tax-exempt bonds to qualify for 4% LIHTC. While some may expect an increase or flurry of activity in the LIHTC space, the new provisions are designed to allocate credits pro rata across urban, minor urban and rural areas. This means no single region of Wisconsin, whether Milwaukee, Madison, or smaller cities, will receive a disproportionate share. Instead, the program is intended to maintain balance and distribute incentives evenly across the state...

...more

Leo’s notes: The new “One Big Beautiful Bill” brings both opportunities and challenges for Wisconsin’s housing sector. A permanent 12% boost to Low-Income Housing Tax Credits and expanded Opportunity Zones could unlock more affordable and workforce housing statewide—particularly in smaller communities thanks to new rural investment funds. Yet, as a housing advocate, I’m concerned that rolling back clean energy incentives undermines long-term affordability and resilience; without tools to lower utility costs and improve efficiency, we risk building homes families can afford today but struggle to sustain tomorrow.

Ken Notes: Also the credits are designed for the developers not for the actual residents. I believe the solutions are not in credits, but rather in working together to create mixed income neighborhoods with housing for a variety on income levels. Another note, Baristas do not have lobbyists to advocate for affordable homes, yet developers do. The The National Association of Realtors spends more money lobbying and on campaigns than most other business groups.

Share this article on your social outlets

Our Sponsors

- - Volume: 25 - WEEK: 36 Date: 9/2/2025 12:00:47 PM -