Wisconsin Creates New Exemption for Construction Contractors

Dec 28th, 2015

Effective January 1, 2016, Wisconsin exempts a construction contractor's purchase of property that will be transferred to certain exempt entities as part of a construction contract.

The exemption applies to construction contractors who transfer the property during work on a real property project. To be exempt, the property must become a component of a facility owned by a designated entity. Designated entities include government entities, county-city hospitals, certain sewerage commissions, certain nonprofits, and local water authorities. "Facility" means a building, shelter, parking lot, parking garage, athletic park, storm sewer, water supply system, or sewerage and waste water treatment facility. Highways, streets, and roads do not qualify as "facilities." The exemption applies to contracts entered into on or after January 1, 2016.