Finally, the bill requires the secretary of administration, after the close of each
fiscal year, to identify all general purpose revenue appropriations that are made to
reimburse the capital improvement fund and from which disbursements were made
in the fiscal year in an amount less than the authorized expenditure estimate. From
among these appropriations, the secretary must reduce the authorized expenditure
estimates for the succeeding fiscal year by an amount equal to the lesser of
$2,000,000 or the total amount that is paid for the distributed generation power
generator tax credit in the prior calendar year.
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:
AB752, s. 1 1Section 1. 16.50 (8) of the statutes is created to read:
AB752,2,72 16.50 (8) Re-estimates of certain general purpose revenue appropriations.
3(a) After the close of each fiscal year, the secretary shall identify all general purpose
4revenue appropriations that are made to reimburse the capital improvement fund
5and from which disbursements were made in the fiscal year in an amount less than
6the estimated expenditure amount approved by the secretary under sub. (2) or the
7governor under sub. (3) for that fiscal year.
AB752,2,128 (b) Notwithstanding sub. (2), from among the appropriations identified under
9par. (a), the secretary shall reduce the estimated expenditure amounts for the
10succeeding fiscal year by an amount equal to the lesser of $2,000,000 or the total
11amount that is paid under ss. 71.07 (5d), 71.28 (5d), and 71.47 (5d) in the prior
12calendar year.
AB752, s. 2
1Section 2. 71.05 (6) (a) 15. of the statutes, as affected by 2001 Wisconsin Act
216
, is amended to read:
AB752,3,73 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
4(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), and (3s), and (5d) and not passed
5through by a partnership, limited liability company, or tax-option corporation that
6has added that amount to the partnership's, company's, or tax-option corporation's
7income under s. 71.21 (4) or 71.34 (1) (g).
AB752, s. 3 8Section 3. 71.07 (5d) of the statutes is created to read:
AB752,3,109 71.07 (5d) Distributed generation power generator credit. (a) In this
10subsection:
AB752,3,1311 1. "Claimant" means a sole proprietor, a partner, a member of a limited liability
12company, or a shareholder of a tax-option corporation who files a claim under this
13subsection.
AB752,3,1714 2. "Distributed generation power generator" means a generator consisting of
15reciprocating engines that are fueled by natural gas or a combination of natural gas
16and diesel, that has a thermal efficiency of at least 40%, and that has a nitrogen oxide
17emission level of no more than 1.5 grams per brake horsepower-hour.
AB752,3,2218 (b) Subject to the limitations provided in this subsection, a claimant certified
19under s. 560.186 may claim as a credit against the tax imposed under s. 71.02 an
20amount, not exceeding $400,000 in any taxable year, that is equal to the amount that
21the claimant paid in the taxable year to purchase and operate a distributed
22generation power generator.
AB752,4,323 (c) The total amount of the credit for all claimants under this subsection and
24ss. 71.28 (5d) and 71.47 (5d) may not exceed $2,000,000 in any taxable year. If the
25total amount of credits claimed by all claimants in any taxable exceeds $2,000,000,

1the department shall prorate the credit according to the amount of the purchase costs
2and operating costs of a distributed generation power generator that are incurred by
3all claimants during the taxable year.
AB752,4,54 (d) Section 71.28 (4) (e), (f), (g), and (h), as it applies to the credit under s. 71.28
5(4), applies to the credit under this subsection.
AB752,4,136 (e) 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 interest.
AB752, s. 4 14Section 4. 71.10 (4) (fm) of the statutes is created to read:
AB752,4,1615 71.10 (4) (fm) The distributed generation power generator credit under s. 71.07
16(5d).
AB752, s. 5 17Section 5. 71.21 (4) of the statutes, as affected by 2001 Wisconsin Act 16, is
18amended to read:
AB752,4,2119 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
20(2dj), (2dL), (2dm), (2ds), (2dx), (3g), and (3s) , and (5d) and passed through to
21partners shall be added to the partnership's income.
AB752, s. 6 22Section 6. 71.26 (2) (a) of the statutes, as affected by 2001 Wisconsin Act 16,
23is amended to read:
AB752,5,1324 71.26 (2) (a) Corporations in general. The "net income" of a corporation means
25the gross income as computed under the Internal Revenue Code as modified under

1sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
2computed under s. 71.28 (1), (3), (4), (5), plus the amount of the credit computed
3under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), and (1dx), (3g) (1dx), and
4(5d)
and not passed through by a partnership, limited liability company, or
5tax-option corporation that has added that amount to the partnership's, limited
6liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1)
7(g) plus the amount of losses from the sale or other disposition of assets the gain from
8which would be wholly exempt income, as defined in sub. (3) (L), if the assets were
9sold or otherwise disposed of at a gain and minus deductions, as computed under the
10Internal Revenue Code as modified under sub. (3), plus or minus, as appropriate, an
11amount equal to the difference between the federal basis and Wisconsin basis of any
12asset sold, exchanged, abandoned, or otherwise disposed of in a taxable transaction
13during the taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).
AB752, s. 7 14Section 7. 71.28 (5d) of the statutes is created to read:
AB752,5,1615 71.28 (5d) Distributed generation power generator credit. (a) In this
16subsection:
AB752,5,1717 1. "Claimant" means a corporation that files a claim under this subsection.
AB752,5,2118 2. "Distributed generation power generator" means a generator consisting of
19reciprocating engines that are fueled by natural gas or a combination of natural gas
20and diesel, that has a thermal efficiency of at least 40%, and that has a nitrogen oxide
21emission level of no more than 1.5 grams per brake horsepower-hour.
AB752,6,222 (b) Subject to the limitations provided in this subsection, a claimant certified
23under s. 560.186 may claim as a credit against the tax imposed under s. 71.23 an
24amount, not exceeding $400,000 in any taxable year, that is equal to the amount that

1the claimant paid in the taxable year to purchase and operate a distributed
2generation power generator.
AB752,6,83 (c) The total amount of the credit for all claimants under this subsection and
4ss. 71.07 (5d) and 71.47 (5d) may not exceed $2,000,000 in any taxable year. If the
5total amount of credits claimed by all claimants in any taxable exceeds $2,000,000,
6the department shall prorate the credit according to the amount of the purchase costs
7and operating costs of a distributed generation power generator that are incurred by
8all claimants during the taxable year.
AB752,6,109 (d) Subsection (4) (e), (f), (g), and (h), as it applies to the credit under sub. (4),
10applies to the credit under this subsection.
AB752,6,1811 (e) Partnerships, limited liability companies, and tax-option corporations may
12not claim the credit under this subsection, but the eligibility for, and the amount of,
13the credit are based on their payment of amounts under par. (b). A partnership,
14limited liability company, or tax-option corporation shall compute the amount of
15credit that each of its partners, members, or shareholders may claim and shall
16provide that information to each of them. Partners, members of limited liability
17companies, and shareholders of tax-option corporations may claim the credit in
18proportion to their ownership interest.
AB752, s. 8 19Section 8. 71.30 (3) (dm) of the statutes is created to read:
AB752,6,2120 71.30 (3) (dm) The distributed generation power generator credit under s.
2171.28 (5d).
AB752, s. 9 22Section 9. 71.34 (1) (g) of the statutes, as affected by 2001 Wisconsin Act 16,
23is amended to read:
AB752,7,3
171.34 (1) (g) An addition shall be made for credits computed by a tax-option
2corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), and
3(3g), and (5d) and passed through to shareholders.
AB752, s. 10 4Section 10. 71.47 (5d) of the statutes is created to read:
AB752,7,65 71.47 (5d) Distributed generation power generator credit. (a) In this
6subsection:
AB752,7,77 1. "Claimant" means a corporation that files a claim under this subsection.
AB752,7,118 2. "Distributed generation power generator" means a generator consisting of
9reciprocating engines that are fueled by natural gas or a combination of natural gas
10and diesel, that has a thermal efficiency of at least 40%, and that has a nitrogen oxide
11emission level of no more than 1.5 grams per brake horsepower-hour.
AB752,7,1612 (b) Subject to the limitations provided in this subsection, a claimant certified
13by the department of commerce under s. 560.186 may claim as a credit against the
14tax imposed under s. 71.43 an amount, not exceeding $400,000 in any taxable year,
15that is equal to the amount that the claimant paid in the taxable year to purchase
16and operate a distributed generation power generator.
AB752,7,2217 (c) The total amount of the credit for all claimants under this subsection and
18ss. 71.07 (5d) and 71.28 (5d) may not exceed $2,000,000 in any taxable year. If the
19total amount of credits claimed by all claimants in any taxable exceeds $2,000,000,
20the department shall prorate the credit according to the amount of the purchase costs
21and operating costs of a distributed generation power generator that are incurred by
22all claimants during the taxable year.
AB752,7,2423 (d) Section 71.28 (4) (e), (f), (g), and (h), as it applies to the credit under s. 71.28
24(4), applies to the credit under this subsection.
AB752,8,8
1(e) Partnerships, limited liability companies, and tax-option corporations may
2not claim the credit under this subsection, but the eligibility for, and the amount of,
3the credit are based on their payment of amounts under par. (b). A partnership,
4limited liability company, or tax-option corporation shall compute the amount of
5credit that each of its partners, members, or shareholders may claim and shall
6provide that information to each of them. Partners, members of limited liability
7companies, and shareholders of tax-option corporations may claim the credit in
8proportion to their ownership interest.
AB752, s. 11 9Section 11. 71.49 (1) (dm) of the statutes is created to read:
AB752,8,1110 71.49 (1) (dm) The distributed generation power generator credit under s.
1171.47 (5d).
AB752, s. 12 12Section 12. 77.92 (4) of the statutes, as affected by 2001 Wisconsin Act 16, is
13amended to read:
AB752,9,314 77.92 (4) "Net business income", with respect to a partnership, means taxable
15income as calculated under section 703 of the Internal Revenue Code; plus the items
16of income and gain under section 702 of the Internal Revenue Code, including taxable
17state and municipal bond interest and excluding nontaxable interest income or
18dividend income from federal government obligations; minus the items of loss and
19deduction under section 702 of the Internal Revenue Code, except items that are not
20deductible under s. 71.21; plus guaranteed payments to partners under section 707
21(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
22(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), and (3g), and (3s), and (5d); and plus or
23minus, as appropriate, transitional adjustments, depreciation differences, and basis
24differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain,
25loss, and deductions from farming. "Net business income", with respect to a natural

1person, estate, or trust, means profit from a trade or business for federal income tax
2purposes and includes net income derived as an employee as defined in section 3121
3(d) (3) of the Internal Revenue Code.
AB752, s. 13 4Section 13. 560.186 of the statutes is created to read:
AB752,9,9 5560.186 Distributed generation power generators. (1) In this section,
6"distributed generation power generator" means a generator consisting of
7reciprocating engines that are fueled by natural gas or a combination of natural gas
8and diesel, that has a thermal efficiency of at least 40%, and that has a nitrogen oxide
9emission level of no more than 1.5 grams per brake horsepower-hour.
AB752,9,17 10(2) The department shall promulgate rules establishing requirements and
11procedures for certifying claimants who may make a claim under ss. 71.07 (5d), 71.28
12(5d), and 71.47 (5d) and shall certify all claimants who satisfy the requirements. The
13rules shall require a claimant to demonstrate to the satisfaction of the department
14that the distributed generation power generator is permanently installed on the
15customer's side of the utility meter, is connected to and operates in parallel to the
16electric utility distribution system, is not intended for back-up generation purposes,
17and will be operated in a safe and reliable manner
AB752, s. 14 18Section 14. Initial applicability.
AB752,9,2219 (1) This act first applies to taxable years beginning on January 1 of the year
20in which this subsection takes effect, except that if this subsection takes effect after
21July 31 this act first applies to taxable years beginning on January 1 of the year
22following the year in which this subsection takes effect.
AB752,9,2323 (End)
Loading...
Loading...