Transfer of Supplement to Federal Historic Rehabilitation Credit

  1. In order to transfer a credit, I am required to notify the department. How do I provide notification?

  2. What is the timeframe for certifying a transfer?

  3. Does the department impose any fees associated with the transfer of a credit?

  4. What are the federal and Wisconsin tax consequences of transferring a credit?

  5. May only a portion of a credit be transferred?

  6. Is there any restriction on who a credit may be transferred to?

  7. I have entered into a certification agreement with the Wisconsin Economic Development Corporation (WEDC), which certifies eligibility for a credit of up to $100,000. May a credit based on the amount certified by WEDC be transferred?

  8. If the credit is based on expenditures as they are paid, how often may a transfer application (Form HR-T) be submitted?

  9. What, if any, notification is required when a transfer is completed?

  10. May a credit be transferred more than once?

  11. May a 2017 credit be transferred in 2018 or a later year?

  12. If a transferred credit is later adjusted or disallowed, will the transferee be liable for repayment?

  13. A $50,000 credit is purchased for $43,000. How much credit is the purchaser entitled to claim?

  14. What are the federal and Wisconsin tax consequences of claiming a credit that has been acquired by transfer?

  15. If a 2017 credit is purchased in 2018 or later, may the purchaser's 2017 return be amended to claim the credit?

  16. If the historic tax credit purchase/sale agreement is entered into during 2017, the Notice of Certification letter from the Department of Revenue is issued in 2018, and the purchase of the credit occurs in 2018 when consideration is paid, can the credit be used by the purchaser in 2017?

  17. If a purchased credit is not claimed in full in the year of purchase, may it be carried forward?

  18. I represent a partnership that will be transferring a credit. May a Form HR-T be submitted designating the partnership as transferor?

  19. The Wisconsin Economic Development Corporation (WEDC) certified Company A for the supplement to the federal historic rehabilitation tax credit. Prior to rehabilitation work beginning, Company A sold the property to Company B. Company B performed and paid for the qualified rehabilitation work. Company A computes the supplement to the federal historic rehabilitation tax credit on Schedule HR and assigns the credit to Company B, who then files Form HR-T to transfer the credit to Company C.

  20. Is there a limit on the amount of supplement to the federal historic tax credits that may be awarded and claimed?

  21. For taxable years beginning on or after January 1, 2018, the federal Tax Cuts and Jobs Act requires the federal historic rehabilitation credit to be claimed ratably over a 5 year period. Does Wisconsin require the same for the supplement to federal historic rehabilitation credit?

  22. Are transferors of the supplement to the federal historic rehabilitation credit limited to transferring one-fifth of the credit each year?

  23. Is a purchaser of a supplement to the federal historic rehabilitation credit restricted to using the credit ratably over a five-year period?


Technical Services Section
PO Box 8933
Madison, WI 53708-8933
Phone: (608) 266-8253
Fax: (608) 261-6240
Email additional questions to

February 1, 2019