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2024 Form HR-T Instructions

Purpose of Form HR-T

Use Form HR-T to notify the department of the intent to transfer a Wisconsin supplement to the federal historic
rehabilitation credit. Upon approval of the transfer, the department will issue a Notice of Certification indicating the
ownership of the credit has been transferred.
Form HR-T does not apply to the State Historic Rehabilitation Credit available for the rehabilitation of personal
residences. This credit is not transferrable.
A credit cannot be transferred until the credit owner officially claims the credit. Pursuant to secs. 71.07(9m)(cm),
71.28(6)(cm), and 71.47(6)(cm), Wis. Stats., the Wisconsin supplement to the federal historic rehabilitation credit
must be claimed in the same year the credit is claimed for federal purposes if a federal credit is being claimed.

Timing for Claiming and Transferring the Credit

Claiming the credit
See the Schedule HR-5 instructions for additional details regarding calculating and claiming the credit.
When the credit is calculated using Qualified Rehabilitation Expenditures (QREs) paid or incurred before December
31, 2017, and the transition rule applies, 100% of the credit is claim in the year calculated. Schedule HR is used to
claim the credit and is attached to the Wisconsin tax return in the year calculated.

When the credit is calculated using Qualified Rehabilitation Expenditures (QREs) paid or incurred after December
31, 2017, and the transition rule does not apply, the credit must be claimed over a 5 year period. Schedule HR is
used to report 20% of the calculated credit and is attached to the Wisconsin tax return beginning with the year the
credit is calculated and for the following four years unless the credit is transferred.

When a credit subject to the 5 year spread is transferred before 100% of the credit has been claimed (before filing
Schedule HR for the year the credit is calculated and the following 4 years), any amount of the transferred credit
not yet claimed is reported on Form HR-5. This removes a claimant's requirement to file a Schedule HR for a credit
that is no longer owned.

The transitional rule applies to a rehabilitated building when (1) the claimant is the owner for the entire period after
December 31, 2017, and (2) the 24-month or 60-month measurement period used to determine if a building is
substantially rehabilitated must have begun no later than June 20, 2018.

Transferring the Credit
All or part of the credit can be transferred in any year beginning with the first year the credit is claimed and for any of
the following 14 years.
Example 1
In 2016 Bob incurred $95,000 of QRE's eligible for a $19,000 Wisconsin Supplement to Federal Historic Rehabilitation
Credit. When Bob filed his 2016 Wisconsin tax return he included Schedule HR to claim 100% of the credit. Bob used
$1,000 of the credit to offset his personal tax liability for each of the years 2016 to 2023. In 2024 when Bob submits
Schedule HR-T to the department of revenue to transfer the remaining $11,000 of credit, no Schedule HR-5 is
required.
Example 2
In 2019, Bob incurred $95,000 of QRE's eligible for a $19,000 Wisconsin Supplement to Federal Historic
Rehabilitation Credit. With each of Bob's 2019 through 2023 Wisconsin tax returns he included a Schedule HR to
claim 20% of the credit in each year and has not used or transferred any of the credit as of December 31, 2023. Bob
can transfer any credit amount before the 15 year expiration dates as illustrated below and Schedule HR-5 is not
required.

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2024 Form HR-T Instructions

$19,000 Total Credit calculated in 2019
Year Claimed Claimed Amount Expires December 31
2019 $ 3,800 2034
2020 $ 3,800 2035
2021 $ 3,800 2036
2022 $ 3,800 2037
2023 $ 3,800 2038
$ 19,000

Example 3
In 2022 Bob incurred $95,000 of QRE's eligible for a $19,000 Wisconsin Supplement to Federal Historic Rehabilitation
Credit. When Bob filed his 2022 Wisconsin tax return he included Schedule HR to claim 20% of the credit. Bob used
$1,000 of the credit to offset his personal tax liability for each of the years 2022 and 2023. In 2024 when Bob submits
Schedule HR-T to the department of revenue to transfer the remaining credit balance, $17,000. Schedule HR-5 is
required to claim the remaining unclaimed balance of $11,400.
Example 4
In 2024 Bob incurred $95,000 of QRE's eligible for a $19,000 Wisconsin Supplement to Federal Historic Rehabilitation
Credit. Prior to filing his 2024 Wisconsin tax return Bob submits Schedule HR-T to the department of revenue to
transfer the entire credit, $19,000. Schedule HR-5 is required to be attached to Form HR-T to claim the entire $19,000
and Schedule HR is not required to be attached to Bob's 2024 Wisconsin tax return.
When to File
• Form HR-T is a stand-alone form and is not submitted with a Wisconsin income or franchise tax return.
• Form HR-T may be submitted at any time, however, submissions after November 1st may not be approved
before December 31st.

Important limitations

• If the QREs also produce a federal historic rehabilitation credit, the credit cannot be claimed in a different taxable
year than federal historic rehabilitation credit.
• A transferred credit is first available to be claimed by the purchaser for the taxable year in which it is purchased
or transferred.
• A transferred credit cannot be used to offset the tax liability of the transferee for a period that ends prior to the
end of the transferee's taxable year.
• The transfer is not considered to be completed prior to,
1. the transferor receiving the funds from the transferee
2. the date indicated on the Notice of Certification

The Process

1. The transferor sends Form HR-T and all required documentation to the Department of Revenue.
Email Form HR-T to: dorhistoriccredit@wisconsin.gov or call 608-264-6890 for information on how to use the
department's secure drop-box. Do not file Form HR‑T with your Wisconsin income or franchise tax return.

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2024 Form HR-T Instructions

2. The department reviews the application and responds to the transferor if
• additional information is needed
• the transfer is request is denied
• the transfer is approved
3. If the transfer request is approved, the transferor receives a Notification of Certification and must send the Notice
to the transferee. The Department of Revenue cannot send the Notice to the transferee. The Notice contains the
information a transferee needs to claim ownership of the transferred credit. If the transfer request is not approved,
the transferor may appeal.
4. The transferor sends a copy of the Notice to the transferee.
Form HR-T is not submitted with a Wisconsin income or franchise tax return. Instead, both the transferor and
transferee must attach the Notification of Certification. Additionally, the transferee attaches Schedule HR or HR-
5 to claim the credit available in the current year.

Specific Line Instructions

Section A – Transferor Information
Lines (2) and (7) – Identifying number. Only the last four digits are required.
If the transferor is:
• A corporation or a single member LLCs that is not disregarded use the federal employee identification number
(FEIN).
• An Individual use the social security number.
• A sole member of a disregarded entity otherwise eligible to claim the credit, use the sole member’s identifying
number on line (2). Check the line (6) box and enter the disregarded entity’s FEIN on line (7). If the disregarded
entity does not have a FEIN, enter NONE.
Lines (5) and (9) - Contact information
• The department will use this information if additional information is required.
• The transferor may authorize a third party designee to discuss credit related information with the department by
completing lines (8) and (9). However, a Power of Attorney may still be required.

• A Power of Attorney (Form A‑222) executed by the taxpayer is required in order for the taxpayer’s representative
to perform certain acts on behalf of the taxpayer and to receive and inspect certain tax information, including
receiving the Notice of Certification letter. The form is available atrevenue.wi.gov/DORForms/a‑ 222.pdf.
• As an alternative to appointing a Power of Attorney, you may designate a third party to discuss the processing
of Form HR‑ T. Note: The third-party designee cannot receive the Notice of Certification letter on behalf of the
taxpayer. To allow another person to discuss your Form HR‑T with the Department of Revenue, check the box.
Checking this box authorizes the department to discuss with the designee any questions that may arise, and
the designee to provide information to the department.

Section B - Transferee Information
If the transferee is:
• A corporation, partnership or a single member LLCs that is not disregarded enter the last four digits of the
federal employee identification number (FEIN) on line (2).

• An Individual enter the last four digits of the social security number on line (4).
• A sole member of a disregarded single member LLC that is an eligible claimant, enter the member’s information
on line 3, check the box on line 5 and enter the LLCs FEIN on line 6. If the disregarded entity does not have a
FEIN, enter NONE.

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2024 Form HR-T Instructions

Required Attachments

• A copy of the certification agreement with the Wisconsin Economic Development Corporation.
• A copy of the proposed transfer documents (for example, a sales agreement).

• For a credit passed through from a partnership, tax option‑(S) corporation, estate, or trust, a copy of Schedule
3K‑ 1, 5K‑ 1, or 2K‑1 (if available).
• For a credit passed through from a partnership or LLC treated as a partnership include a copy of the administrative
document/s indicating how the credit is to be allocated. The allocation may be the same as the ownership interest
or as provided in a written agreement.
• Schedule HR-5 if the credit being transferred must be claimed ratable over a five-year period.
• Schedule HR if all or part of the transferred credit is claimed in the current year and not required to claimed over
five years.

Additional Information

For more information, you may:
Access Common Questions atrevenue.wi.gov/Pages/FAQS/pcs‑ historic_transfer.aspx
Call (608) 264-6890 or email Kelly.Vandenbranden@wisconsin.gov

Note: Submissions after November 1st may not be approved before December 31st

Applicable Laws and Rules
This document provides statements or interpretations of the following laws and regulations in effect as of the date of the
revision,: Chapter 71, Wis. Stats.

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