The Wisconsin Economic Development Corp. is placing a moratorium on issuing historic preservation tax credits after early demand came in nearly 10 times higher than expected.
Gov. Scott Walker signed Act 62, which created a 20 percent tax credit for rehabilitation of certain historic properties, last December. The original fiscal estimate projected a nearly $4 million loss in tax revenue in the bill’s first year, but it did not include a cap on the credit.
However, in a letter sent to JFC co-chairs Monday, WEDC CEO Reed Hall said 29 eligible projects totaling $35 million in credits had been approved as of Monday.
“lf fully realized, this amount of credits could potentially result in nearly $180,000,000 in additional economic development in communities across the state,” Hall wrote. “While this is certainly a testament to the program’s success and need in Wisconsin, it also underscores the necessity to review the fiscal impact to the state budget.”