LRB-2684/2
JK:cjs:rs
2003 - 2004 LEGISLATURE
September 11, 2003 - Introduced by Representatives Wieckert, F. Lasee, Nischke,
Ziegelbauer, Hines, Ainsworth, Gronemus, Seratti, Bies, Gunderson, Van
Roy, McCormick, Montgomery, Gard
and Krawczyk, cosponsored by Senators
Welch, Lassa, Reynolds, Leibham, Stepp, Roessler, Darling, Ellis, Hansen
and Breske. Referred to Committee on Economic Development.
AB508,1,3 1An Act to amend 71.07 (3s) (c) 1., 71.28 (3) (c) 1. and 71.47 (3) (c) 1. of the
2statutes; relating to: the income and franchise tax credit for sales tax and use
3tax paid on fuel and electricity consumed in manufacturing.
Analysis by the Legislative Reference Bureau
Under current law, a manufacturer may claim an income or franchise tax credit
in an amount that is equal to the sales tax and the use tax that the manufacturer paid
on fuel and electricity used for manufacturing tangible property in this state. If the
credit claimed by a manufacturer exceeds the manufacturer's tax liability in the
taxable year, the manufacturer may carry forward any remaining credit to the
following 15 taxable years. Under this bill, if the credit claimed by a manufacturer
exceeds the manufacturer's tax liability in the taxable year, the manufacturer may
carry forward any remaining credit to the following 20 taxable years.
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:
AB508, s. 1 4Section 1. 71.07 (3s) (c) 1. of the statutes is amended to read:
AB508,2,65 71.07 (3s) (c) 1. The credit under par. (b), including any credits carried over,
6may be offset only against the amount of the tax imposed upon or measured by the

1business operations of the claimant in which the fuel and electricity are consumed.
2If the credit computed is not entirely offset against taxes otherwise due, the unused
3balance shall be carried forward and credited against taxes otherwise due for the
4following 15 20 taxable years to the extent not offset by taxes otherwise due in all
5intervening years between the year in which the expense was incurred and the year
6in which the carry-forward credit is claimed.
AB508, s. 2 7Section 2. 71.28 (3) (c) 1. of the statutes is amended to read:
AB508,2,138 71.28 (3) (c) 1. If the credit computed under par. (b) is not entirely offset against
9Wisconsin income or franchise taxes otherwise due, the unused balance shall be
10carried forward and credited against Wisconsin income or franchise taxes otherwise
11due for the following 15 20 taxable years to the extent not offset by these taxes
12otherwise due in all intervening years between the year in which the expense was
13incurred and the year in which the carry-forward credit is claimed.
AB508, s. 3 14Section 3. 71.47 (3) (c) 1. of the statutes is amended to read:
AB508,2,2015 71.47 (3) (c) 1. If the credit computed under par. (b) is not entirely offset against
16Wisconsin income or franchise taxes otherwise due, the unused balance shall be
17carried forward and credited against Wisconsin income or franchise taxes otherwise
18due for the following 15 20 taxable years to the extent not offset by these taxes
19otherwise due in all intervening years between the year in which the expense was
20incurred and the year in which the carry-forward credit is claimed.
AB508, s. 4 21Section 4. Initial applicability.
AB508,3,222 (1) This act first applies, for corporations and insurance companies, to credits
23computed for taxable years beginning on January 1, 1988, and, for individuals,

1tax-option corporations, partnerships, and limited liability companies, to credits
2computed for taxable years beginning on January 1, 1998.
AB508,3,33 (End)
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