Feed for /2009/related/proposals/ab794 PDF
March 2, 2010 - Introduced by Representatives Friske, Molepske Jr., Mursau,
Meyer, M. Williams, Brooks, Hraychuck, Kestell, A. Ott, Suder, Tauchen,
Townsend
and Turner, cosponsored by Senators Kreitlow and Taylor.
Referred to Committee on Jobs, the Economy and Small Business.
AB794,1,9 1An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a) 4., 71.34 (1k) (g), 71.45
2(2) (a) 10. and 77.92 (4); and to create 70.11 (45), 71.07 (6f), 71.07 (6g), 71.10
3(4) (cf), 71.10 (4) (cg), 71.28 (6f), 71.28 (6g), 71.30 (3) (af), 71.30 (3) (ag), 71.47
4(6f), 71.47 (6g), 71.49 (1) (af), 71.49 (1) (ag) and 77.54 (58) of the statutes;
5relating to: nonrefundable individual and corporate income and franchise tax
6credits for purchasing a thermal biomass heating system and fuel for such a
7system, property tax exemptions for thermal biomass heating systems and
8facilities used to store fuel for such systems, and a sales and use tax exemption
9for purchasing a thermal biomass heating system.
Analysis by the Legislative Reference Bureau
This bill creates a nonrefundable individual income tax credit, and a corporate
income and franchise tax credit, for the purchase of a thermal biomass heating
system (system) and a similar nonrefundable credit for the purchase of biomass fuel
for such a system. Under the bill, a claimant may claim 100 percent of the cost the
claimant spends for the purchase and installation of a system in the claimant's
primary residence or place of business. A claimant may also claim a credit for 100
percent of the cost of fuel for a system that is installed in the claimant's primary
residence or place of business.

To be eligible for the credit, the system must comply with all state requirements
related to emissions of air contaminants, and the provisions of the federal Clean Air
Act, that apply to the system on the day it is purchased. The credit related to
purchasing a system, or fuel for the system, for an individual's primary residence
may not be claimed by a nonresident or part-year resident of the state. Because the
credit is nonrefundable, it may be claimed only up to the amount of a taxpayer's
income or franchise tax liability.
Under the bill, a system is defined as a stove, furnace, or boiler that generates
heat from biomass and provides an energy efficiency conversion of at least 75
percent. Subject to a number of exceptions, such as an exception for garbage and for
certain nonvegetation-based waste, biomass is defined under the bill as a resource
that derives energy from wood or plant material or residue, biological waste, crops
grown for use as such a resource, or landfill gases.
The bill also creates real and personal property tax exemptions for a system and
for facilities that are used to store fuel for such a system. Finally, the bill creates a
sales and use tax exemption for the purchase of a system, including accessories,
attachments, and repair parts.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB794, s. 1 1Section 1. 70.11 (45) of the statutes is created to read:
AB794,2,52 70.11 (45) Thermal biomass heating systems. (a) Thermal biomass heating
3systems, as defined in s. 71.07 (6f) (a) 4., including accessories, attachments, and
4repair parts, but not including equipment or components that would be present as
5part of a conventional energy system.
AB794,2,86 (b) All property of a facility that is used to store fuel made from biomass, as
7defined in s. 196.378 (1) (ar), if the fuel is sold for use in thermal biomass heating
8systems, as defined in s. 71.07 (6f) (a) 4.
AB794, s. 2 9Section 2. 71.05 (6) (a) 15. of the statutes, as affected by 2009 Wisconsin Acts
102
and 28, is amended to read:
AB794,3,6
171.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
2(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s),
3(3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k), (6f), (6g), and (8r) and not passed through by
4a partnership, limited liability company, or tax-option corporation that has added
5that amount to the partnership's, company's, or tax-option corporation's income
6under s. 71.21 (4) or 71.34 (1k) (g).
AB794, s. 3 7Section 3. 71.07 (6f) of the statutes is created to read:
AB794,3,98 71.07 (6f) Thermal biomass heating systems credit. (a) Definitions. In this
9subsection:
AB794,3,1110 1. "Air quality standards" means all requirements under ch. 285 and 42 USC
117401
to 7671q.
AB794,3,1212 2. "Biomass" has the meaning given in s. 196.378 (1) (ar).
AB794,3,1313 3. "Claimant" means a person who files a claim under this subsection.
AB794,3,1714 4. "Thermal biomass heating system" means a stove, furnace, or boiler that
15generates heat from biomass by providing an energy efficiency conversion of at least
1675 percent and meets any air quality standards that apply to the system on the day
17on which it is purchased.
AB794,3,2318 (b) Filing claims. Subject to the limitations provided in this subsection, a
19claimant may claim as a credit against the tax imposed under s. 71.02, up to the
20amount of those taxes, 100 percent of the installed cost of a thermal biomass heating
21system that the claimant paid in the taxable year for a system that is installed in the
22claimant's primary residence in this state or in the claimant's place of business in this
23state.
AB794,4,3
1(c) Limitations. 1. No credit may be claimed under this subsection by a
2part-year resident or a nonresident of this state for amounts paid to install a thermal
3biomass heating system in the claimant's primary residence in this state.
AB794,4,114 2. Partnerships, limited liability companies, and tax-option corporations may
5not claim the credit under this subsection, but the eligibility for, and the amount of,
6the credit are based on their payment of amounts under par. (b). A partnership,
7limited liability company, or tax-option corporation shall compute the amount of
8credit that each of its partners, members, or shareholders may claim and shall
9provide that information to each of them. Partners, members of limited liability
10companies, and shareholders of tax-option corporations may claim the credit in
11proportion to their ownership interests.
AB794,4,1312 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
13s. 71.28 (4), applies to the credit under this subsection.
AB794, s. 4 14Section 4. 71.07 (6g) of the statutes is created to read:
AB794,4,1515 71.07 (6g) Thermal biomass fuel credit. (a) Definitions. In this subsection:
AB794,4,1616 1. "Biomass" has the meaning given in s. 196.378 (1) (ar).
AB794,4,1717 2. "Claimant" means a person who files a claims under this subsection.
AB794,4,1918 3. "Fuel" means fuel that is made from biomass and is used to power a thermal
19biomass heating system.
AB794,4,2020 4. "Thermal biomass heating system" has the meaning given in sub. (6f) (a) 4.
AB794,5,221 (b) Filing claims. Subject to the limitations provided in this subsection, a
22claimant may claim as a credit against the tax imposed under s. 71.02, up to the
23amount of those taxes, 100 percent of the amount that the claimant paid in the
24taxable year for fuel used in a thermal biomass heating system that is installed in

1the claimant's primary residence in this state or in the claimant's place of business
2in this state.
AB794,5,53 (c) Limitations. 1. No credit may be claimed under this subsection by a
4part-year resident or a nonresident of this state for amounts paid for fuel used in a
5thermal biomass heating system in the claimant's primary residence in this state.
AB794,5,136 2. Partnerships, limited liability companies, and tax-option corporations may
7not claim the credit under this subsection, but the eligibility for, and the amount of,
8the credit are based on their payment of amounts under par. (b). A partnership,
9limited liability company, or tax-option corporation shall compute the amount of
10credit that each of its partners, members, or shareholders may claim and shall
11provide that information to each of them. Partners, members of limited liability
12companies, and shareholders of tax-option corporations may claim the credit in
13proportion to their ownership interests.
AB794,5,1514 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
15s. 71.28 (4), applies to the credit under this subsection.
AB794, s. 5 16Section 5. 71.10 (4) (cf) of the statutes is created to read:
AB794,5,1717 71.10 (4) (cf) The thermal biomass heating systems credit under s. 71.07 (6f).
AB794, s. 6 18Section 6. 71.10 (4) (cg) of the statutes is created to read:
AB794,5,1919 71.10 (4) (cg) The thermal biomass fuel credit under s. 71.07 (6g).
AB794, s. 7 20Section 7. 71.21 (4) of the statutes, as affected by 2009 Wisconsin Acts 2 and
2128, is amended to read:
AB794,5,2522 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
23(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s), (3t), (3w),
24(5e), (5f), (5g), (5h), (5i), (5j), (5k), (6f), (6g), and (8r) and passed through to partners
25shall be added to the partnership's income.
AB794, s. 8
1Section 8. 71.26 (2) (a) 4. of the statutes, as affected by 2009 Wisconsin Acts
22
and 28, is amended to read:
AB794,6,83 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
4(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3t),
5(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (6f), (6g), and (8r) and not passed through by
6a partnership, limited liability company, or tax-option corporation that has added
7that amount to the partnership's, limited liability company's, or tax-option
8corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
AB794, s. 9 9Section 9. 71.28 (6f) of the statutes is created to read:
AB794,6,1110 71.28 (6f) Thermal biomass heating systems credit. (a) Definitions. In this
11subsection:
AB794,6,1312 1. "Air quality standards" means all requirements under ch. 285 and 42 USC
137401
to 7671q.
AB794,6,1414 2. "Biomass" has the meaning given in s. 196.378 (1) (ar).
AB794,6,1515 3. "Claimant" means a person who files a claim under this subsection.
AB794,6,1916 4. "Thermal biomass heating system" means a stove, furnace, or boiler that
17generates heat from biomass by providing an energy efficiency conversion of at least
1875 percent and meets any air quality standards that apply to the system on the day
19on which it is purchased.
AB794,6,2420 (b) Filing claims. Subject to the limitations provided in this subsection, a
21claimant may claim as a credit against the tax imposed under s. 71.23, up to the
22amount of those taxes, 100 percent of the installed cost of a thermal biomass heating
23system that the claimant paid in the taxable year for a system that is installed in the
24claimant's place of business in this state.
AB794,7,8
1(c) Limitations. Partnerships, limited liability companies, and tax-option
2corporations may not claim the credit under this subsection, but the eligibility for,
3and the amount of, the credit are based on their payment of amounts under par. (b).
4A partnership, limited liability company, or tax-option corporation shall compute
5the amount of credit that each of its partners, members, or shareholders may claim
6and shall provide that information to each of them. Partners, members of limited
7liability companies, and shareholders of tax-option corporations may claim the
8credit in proportion to their ownership interests.
AB794,7,109 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
10sub. (4), applies to the credit under this subsection.
AB794, s. 10 11Section 10. 71.28 (6g) of the statutes is created to read:
AB794,7,1212 71.28 (6g) Thermal biomass fuel credit. (a) Definitions. In this subsection:
AB794,7,1313 1. "Biomass" has the meaning given in s. 196.378 (1) (ar).
AB794,7,1414 2. "Claimant" means a person who files a claims under this subsection.
AB794,7,1615 3. "Fuel" means fuel that is made from biomass and is used to power a thermal
16biomass heating system.
AB794,7,1717 4. "Thermal biomass heating system" has the meaning given in sub. (6f) (a) 4.
AB794,7,2318 (b) Filing claims. Subject to the limitations provided in this subsection, a
19claimant may claim as a credit against the tax imposed under s. 71.23, up to the
20amount of those taxes, 100 percent of the amount that the claimant paid in the
21taxable year for fuel used in a thermal biomass heating system that is installed in
22the claimant's primary residence in this state or in the claimant's place of business
23in this state.
AB794,8,624 (c) Limitations. Partnerships, limited liability companies, and tax-option
25corporations may not claim the credit under this subsection, but the eligibility for,

1and the amount of, the credit are based on their payment of amounts under par. (b).
2A partnership, limited liability company, or tax-option corporation shall compute
3the amount of credit that each of its partners, members, or shareholders may claim
4and shall provide that information to each of them. Partners, members of limited
5liability companies, and shareholders of tax-option corporations may claim the
6credit in proportion to their ownership interests.
AB794,8,87 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
8sub. (4), applies to the credit under this subsection.
AB794, s. 11 9Section 11. 71.30 (3) (af) of the statutes is created to read:
AB794,8,1010 71.30 (3) (af) The thermal biomass heating systems credit under s. 71.28 (6f).
AB794, s. 12 11Section 12. 71.30 (3) (ag) of the statutes is created to read:
AB794,8,1212 71.30 (3) (ag) The thermal biomass fuel credit under s. 71.28 (6g).
AB794, s. 13 13Section 13. 71.34 (1k) (g) of the statutes, as affected by 2009 Wisconsin Acts
142
and 28, is amended to read:
AB794,8,1815 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
16corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
17(3), (3g), (3h), (3n), (3p), (3q), (3r), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (6f),
18(6g),
and (8r) and passed through to shareholders.
AB794, s. 14 19Section 14. 71.45 (2) (a) 10. of the statutes, as affected by 2009 Wisconsin Acts
202
and 28, is amended to read:
AB794,9,221 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
22computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3w), (5e), (5f),
23(5g), (5h), (5i), (5j), (5k), (6f), (6g), and (8r) and not passed through by a partnership,
24limited liability company, or tax-option corporation that has added that amount to
25the partnership's, limited liability company's, or tax-option corporation's income

1under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47
2(1), (3), (3t), (4), (4m), and (5).
AB794, s. 15 3Section 15. 71.47 (6f) of the statutes is created to read:
AB794,9,54 71.47 (6f) Thermal biomass heating systems credit. (a) Definitions. In this
5subsection:
AB794,9,76 1. "Air quality standards" means all requirements under ch. 285 and 42 USC
77401
to 7671q.
AB794,9,88 2. "Biomass" has the meaning given in s. 196.378 (1) (ar).
AB794,9,99 3. "Claimant" means a person who files a claim under this subsection.
AB794,9,1310 4. "Thermal biomass heating system" means a stove, furnace, or boiler that
11generates heat from biomass by providing an energy efficiency conversion of at least
1275 percent and meets any air quality standards that apply to the system on the day
13on which it is purchased.
AB794,9,1814 (b) Filing claims. Subject to the limitations provided in this subsection, a
15claimant may claim as a credit against the tax imposed under s. 71.43, up to the
16amount of those taxes, 100 percent of the installed cost of a thermal biomass heating
17system that the claimant paid in the taxable year for a system that is installed in the
18claimant's place of business in this state.
AB794,9,2419 (c) Limitations. Partnerships, limited liability companies, and tax-option
20corporations may not claim the credit under this subsection, but the eligibility for,
21and the amount of, the credit are based on their payment of amounts under par. (b).
22A partnership, limited liability company, or tax-option corporation shall compute
23the amount of credit that each of its partners, members, or shareholders may claim
24and shall provide that information to each of them. Partners, members of limited

1liability companies, and shareholders of tax-option corporations may claim the
2credit in proportion to their ownership interests.
AB794,10,43 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
4s. 71.28 (4), applies to the credit under this subsection.
AB794, s. 16 5Section 16. 71.47 (6g) of the statutes is created to read:
AB794,10,66 71.47 (6g) Thermal biomass fuel credit. (a) Definitions. In this subsection:
AB794,10,77 1. "Biomass" has the meaning given in s. 196.378 (1) (ar).
AB794,10,88 2. "Claimant" means a person who files a claims under this subsection.
AB794,10,109 3. "Fuel" means fuel that is made from biomass and is used to power a thermal
10biomass heating system.
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