Tax Incremental Finance (TIF) - Extensions

  1. What extension types are available for Tax Incremental Districts (TIDs)?

  2. To extend the life of a TID, is the municipality required to complete the amendment process?

  3. What documents must a municipality provide to the Wisconsin Department of Revenue (DOR)?

  4. When a municipality adopts an extension resolution to change the maximum life, does this change the expenditure period?

  5. For the Standard or Technical College Extension, is the Joint Review Board (JRB) the only body that needs to approve the extension?

  6. Can a municipality use a Standard Extension to lengthen the life of an industrial TID created between 1995 and 2004?

  7. Can a municipality request a Technical College Extension for a TID created before 2014 if it added project costs after 2014?

  8. Is the municipality required to inform the JRB when it adopts an Affordable Housing Resolution to extend the TID an additional year?

  9. When can a municipality request the Affordable Housing Extension?

  10. Is a TID eligible for the Affordable Housing Extension if its life was extended for other reasons (ex: declared distressed, donor to distressed, granted a Standard Extension or Technical College Extension)?

  11. Can a municipality adopt one resolution that includes both an Affordable Housing Extension and the TID termination?

  1. What extension types are available for Tax Incremental Districts (TIDs)?

  2. There are three types of extensions: Standard, Technical College, and Affordable Housing. Each extension has different requirements and exclusions.

    1. Standard – allows an extension (three or four years depending on TID type) if existing tax increments will not pay project costs within the TID maximum life
    2. Technical College – allows a three-year extension if tax increments were negatively impacted by 2013 Act 145, which increased state aid to technical colleges
    3. Affordable Housing – allows a one-year extension if the municipality uses the final year's increment to benefit affordable housing

    For details on each extension type, review the TID Extension Types matrix.

  3. To extend the life of a TID, is the municipality required to complete the amendment process?

  4. No. The municipality is not required to complete the Wisconsin Department of Revenue (DOR) amendment forms or provide DOR an updated project plan. However, a municipality must document that the TID needs extra time to pay off existing debt or the TID has paid all its project costs and would like one additional year for affordable housing. The municipality must provide DOR an approved resolution for each extension type.

  5. What documents must a municipality provide to the Wisconsin Department of Revenue (DOR)?

  6. When the extension resolution is adopted, the municipality must email a scanned copy of the resolution to tif@wisconsin.gov. DOR then extends the TID life.

  7. When a municipality adopts an extension resolution to change the maximum life, does this change the expenditure period?

  8. No. An extension does not change the expenditure period. The expenditure period is five years shorter than the maximum life without the extension. For more information, see Municipal Expenditures and Debt Common Question #2.

  9. For the Standard or Technical College Extension, is the Joint Review Board (JRB) the only body that needs to approve the extension?

  10. Yes. The municipality must either present the JRB with documents showing the TID cannot repay project costs within its maximum life, or the municipality provides the JRB an independent audit. The JRB must adopt a resolution approving the extension.

  11. Can a municipality use a Standard Extension to lengthen the life of an industrial TID created between 1995 and 2004?

  12. No. The law has no Standard Extension for industrial TIDs created between 1995 and 2004. A municipality could consider requesting the Technical College Extension if it needs more time to pay off a TID's existing debt. Other TID types not eligible for the Standard Extension are listed in the TID Extension Types matrix.

  13. Can a municipality request a Technical College Extension for a TID created before 2014 if it added project costs after 2014?

  14. Yes. If the TID was created before October 1, 2014, a municipality can request the 3-year Technical College Extension regardless of when the project costs were incurred or updated.

  15. Is the municipality required to inform the JRB when it adopts an Affordable Housing Resolution to extend the TID an additional year?

  16. No. The law does not require the municipality to notify the JRB; however, it would be beneficial for the municipality to inform the JRB of the Affordable Housing Extension.

  17. When can a municipality request the Affordable Housing Extension?

  18. The municipality can adopt an Affordable Housing Extension Resolution after it pays all the TID project costs. Since the Standard and Technical College Extensions are designed to allow more time to pay on existing debt, an Affordable Housing Extension cannot be adopted at the same time as other extensions.

  19. Is a TID eligible for the Affordable Housing Extension if its life was extended for other reasons (ex: declared distressed, donor to distressed, granted a Standard Extension or Technical College Extension)?

  20. Yes. A TID that had its life extended for other reasons is eligible for the Affordable Housing Extension; however, only TIDs created under sec. 66.1105 Wis. Stats are eligible for the Affordable Housing Extension. Town TIDs (created under sec. 60.85 Wis. Stats.) and ER TIDs (created under sec. 66.1106 Wis. Stats.) are not eligible.

  21. Can a municipality adopt one resolution that includes both an Affordable Housing Extension and the TID termination?

  22. No. A municipality must complete separate resolutions. The Affordable Housing Extension Resolution must state the length of the extension, not to exceed 12 months. Before the Affordable Housing Extension period ends, the municipality must adopt a separate termination resolution. The termination resolution formally ends the TID.


FOR MORE INFORMATION PLEASE CONTACT:

MS 6-97
WISCONSIN DEPARTMENT OF REVENUE
Office of Technical and Assessment Services
PO Box 8971
Madison, WI 53708-8971
Phone: (608) 261-5335 or (608) 266-5708
Email additional questions to ​tif@wisconsin.gov