Effective January 1, 2016 and first applicable to contracts entered into on or after January 1, 2016, Wisconsin has created a sales and use tax exemption for tangible personal property and other items purchased by a contractor who transfers the property to an exempt local government entity or nonprofit organization when fulfilling a real property construction activity. To qualify for the exemption, the purchased property must become a component of a facility in Wisconsin that is owned by the exempt entity or organization. For purposes of the exemption, “facility” means any building, shelter, parking lot, parking garage, athletic field, athletic park, storm sewer, water supply system, or sewerage and waste water treatment facility, but does not include a highway, street, or road. (Act 126 (S.B. 227), Laws 2015, effective January 1, 2016, and first applicable to contracts entered into on January 1, 2016)