A newly signed Wisconsin law could give villages such as New Glarus a new way to support smaller, owner-occupied housing developments without relying on the older mixed-use TID rules. Senate Bill 480, now 2025 Wisconsin Act 235, allows cities, villages and certain towns to create residential tax incremental districts aimed at modest one- and two-family housing.

The law does not take effect until Oct. 1, 2026, but it is already drawing attention from local government groups and housing advocates because it opens a new financing option for residential infrastructure such as streets, sidewalks, sewers and similar improvements.