Transfer of Supplement to the Federal Historic Rehabilitation Credit

  1. 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 five-year period. Does Wisconsin require the same for the supplement to the federal historic rehabilitation credit?

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

  3. What is Schedule HR-5, Wisconsin Supplement to the Federal Historic Rehabilitation Tax Credit – Five-Year Credit Claim, used for?

  4. What is the timeframe for certifying a transfer?

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

  6. What are the federal and Wisconsin tax consequences for the transferor of transferring a credit?

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

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

  9. 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?

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

  11. May a credit be transferred more than once?

  12. May a 2018 credit be transferred in 2019 or a later year?

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

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

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

  16. If a 2018 credit is purchased in 2019 or later, may the purchaser's 2018 return be amended to claim the credit?

  17. If the historic tax credit purchase/sale agreement is entered into during 2018, the Notice of Certification letter from the Department of Revenue is issued in 2019, and the purchase of the credit occurs in 2019 when consideration is paid, can the credit be used by the purchaser in 2018?

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

  19. May a Form HR-T be submitted designating a partnership, tax-option (S) corporation, or limited liability company (LLC) classified as a partnership or tax-option (S) corporation as the transferor?

  20. 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.

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

Applicable Laws and Rules

This document provides statements or interpretations of the following provisions of Wisconsin Statutes enacted as of August 29, 2019:
Sections 71.07(9m)(cm), 71.28(6)(cm), and 71.47(6)(cm), Wis. Stats.

Laws enacted and in effect after August 29, 2019, new administrative rules, and court decisions may change the interpretations in this document. Guidance issued prior to August 29, 2019, that is contrary to the information in this document is superseded by this document, pursuant to
sec. 73.16(2)(a), Wis. Stats.


Division of Income, Sales & Excise Tax
Office of Technical Services
PO Box 8933
Madison, WI 53708-8933
Phone: (608) 266-7177
Fax: (608) 261-6240
Email additional questions to

Guidance Document Certification:

Guidance Document Number: 100015

August 29, 2019