For further information see the state 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:
AB766, s. 1 5Section 1. 71.07 (9a) of the statutes is created to read:
AB766,1,66 71.07 (9a) Wood energy producers' credit. (a) In this subsection:
AB766,1,107 1. "Forestry industry residue" means the residue from normal timber
8harvesting or production; including timber thinnings from timber stand
9improvements, hogged wood, chipped wood, slash, sawdust, shavings, edgings,
10slabs, leaves and bark.
AB766,2,3
12. "Processed wood products" means wood pellets, cubes, flour and any other
2product, except charcoal, resulting from thermal, chemical or mechanical processes
3that alter wood residue so that it can be used as an energy source.
AB766,2,54 3. "Wood energy producer" means a person who engages in the business of
5producing processed wood products.
AB766,2,96 (b) Any wood energy producer may credit against taxes otherwise due under
7this subchapter, up to the amount of those taxes, an amount equal to the result
8obtained by multiplying $5 by the number of tons of processed wood products that,
9during the taxable year, the wood energy producer sells for use as an energy source.
AB766,2,1410 (c) Any person who receives a credit under this subsection may carry forward
11to the next 4 taxable years the amount of the credit that is not offset against taxes
12for the year of the production to the extent that that amount is not offset against
13those taxes otherwise due in all of the years between the year for which the credit
14was computed and the year for which the carry-forward is claimed.
AB766,2,1615 (d) Section 71.28 (4) (g) to (i), as it applies to the credit under s. 71.28 (4), applies
16to the credit under this subsection.
AB766, s. 2 17Section 2. 71.08 (1) (intro.) of the statutes, as affected by 1995 Wisconsin Act
1827
, is amended to read:
AB766,3,219 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married
20couple filing jointly, trust or estate under s. 71.02, not considering the credits under
21ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2ds), (2fd), (3m), (6), (9a) and (9e), 71.28
22(1dd), (1de), (1di), (1dj), (1dL), (1ds), (1fd) and (2m) and 71.47 (1dd), (1de), (1di), (1dj),
23(1dL), (1ds), (1fd) and (2m) and subchs. VIII and IX and payments to other states
24under s. 71.07 (7), is less than the tax under this section, there is imposed on that

1natural person, married couple filing jointly, trust or estate, instead of the tax under
2s. 71.02, an alternative minimum tax computed as follows:
AB766, s. 3 3Section 3. 71.10 (4) (gb) of the statutes is created to read:
AB766,3,44 71.10 (4) (gb) Wood energy producers' credit under s. 71.07 (9a).
AB766, s. 4 5Section 4. 71.26 (2) (a) of the statutes is amended to read:
AB766,3,206 71.26 (2) (a) Corporations in general. The "net income" of a corporation means
7the gross income as computed under the internal revenue code as modified under
8sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
9computed under s. 71.28 (1) and, (3) to (5) and (7) plus the amount of the credit
10computed under s. 71.28 (1di), (1dj), (1dL) and (1ds) and not passed through by a
11partnership, limited liability company or tax-option corporation that has added that
12amount to the partnership's, limited liability company's or tax-option corporation's
13income under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from the sale or
14other disposition of assets the gain from which would be wholly exempt income, as
15defined in sub. (3) (L), if the assets were sold or otherwise disposed of at a gain and
16minus deductions, as computed under the internal revenue code as modified under
17sub. (3), plus or minus, as appropriate, an amount equal to the difference between
18the federal basis and Wisconsin basis of any asset sold, exchanged, abandoned or
19otherwise disposed of in a taxable transaction during the taxable year, except as
20provided in par. (b) and s. 71.45 (2).
AB766, s. 5 21Section 5. 71.28 (7) of the statutes is created to read:
AB766,3,2222 71.28 (7) Wood energy producers' credit. (a) In this subsection:
AB766,4,223 1. "Forestry industry residue" means the residue from normal timber
24harvesting or production; including timber thinnings from timber stand

1improvements, hogged wood, chipped wood, slash, sawdust, shavings, edgings,
2slabs, leaves and bark.
AB766,4,53 2. "Processed wood products" means wood pellets, cubes, flour and any other
4product, except charcoal, resulting from thermal, chemical or mechanical processes
5that alter wood residue so that it can be used as an energy source.
AB766,4,76 3. "Wood energy producer" means a person who engages in the business of
7producing processed wood products.
AB766,4,118 (b) Any wood energy producer may credit against taxes otherwise due under
9this subchapter, up to the amount of those taxes, an amount equal to the result
10obtained by multiplying $5 by the number of tons of processed wood products that,
11during the taxable year, the wood energy producer sells for use as an energy source.
AB766,4,1612 (c) Any person who receives a credit under this subsection may carry forward
13to the next 4 taxable years the amount of the credit that is not offset against taxes
14for the year of the production to the extent that that amount is not offset against
15those taxes otherwise due in all of the years between the year for which the credit
16was computed and the year for which the carry-forward is claimed.
AB766,4,1817 (d) Subsection (4) (g) (to (i), as it applies to the credit under sub. (4), applies to
18the credit under this subsection.
AB766, s. 6 19Section 6. 71.30 (3) (ed) of the statutes is created to read:
AB766,4,2020 71.30 (3) (ed) Wood energy producers' credit under s. 71.28 (7).
AB766, s. 7 21Section 7. 71.47 (7) of the statutes is created to read:
AB766,4,2222 71.47 (7) Wood energy producers' credit. (a) In this subsection:
AB766,5,223 1. "Forestry industry residue" means the residue from normal timber
24harvesting or production; including timber thinnings from timber stand

1improvements, hogged wood, chipped wood, slash, sawdust, shavings, edgings,
2slabs, leaves and bark.
AB766,5,53 2. "Processed wood products" means wood pellets, cubes, flour and any other
4product, except charcoal, resulting from thermal, chemical or mechanical processes
5that alter wood residue so that it can be used as an energy source.
AB766,5,76 3. "Wood energy producer" means a person who engages in the business of
7producing processed wood products.
AB766,5,118 (b) Any wood energy producer may credit against taxes otherwise due under
9this subchapter, up to the amount of those taxes, an amount equal to the result
10obtained by multiplying $5 by the number of tons of processed wood products that,
11during the taxable year, the wood energy producer sells for use as an energy source.
AB766,5,1612 (c) Any person who receives a credit under this subsection may carry forward
13to the next 4 taxable years the amount of the credit that is not offset against taxes
14for the year of the production to the extent that that amount is not offset against
15those taxes otherwise due in all of the years between the year for which the credit
16was computed and the year for which the carry-forward is claimed.
AB766,5,1817 (d) Section 71.28 (4) (g) (to (i), as it applies to the credit under s. 71.28 (4),
18applies to the credit under this subsection.
AB766, s. 8 19Section 8. 71.49 (1) (ed) of the statutes is created to read:
AB766,5,2020 71.49 (1) (ed) Wood energy producers' credit under s. 71.47 (7).
AB766, s. 9 21Section 9. Initial applicability; revenue.
AB766,5,2322 (1) Wood energy producers' credit. This act first applies to taxable years
23beginning on the January 1 after publication.
AB766,5,2424 (End)
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