AB371: Bill Text

LRB-2650/2

JK&ARG:cjs:jf

2007 - 2008 LEGISLATURE

2007 Assembly BILL 371

May 29, 2007 - Introduced by Representatives Albers, Gronemus, Hahn, Hubler and Owens, cosponsored by Senators Schultz and Olsen. Referred to Committee on Biofuels and Sustainable Energy.

AB371,1,7 An Act to renumber and amend 86.195 (2) (c); to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a), 71.34 (1) (g), 71.45 (2) (a) 10., 77.92 (4) and 86.195 (1) (ar); and to create 71.07 (5j), 71.10 (4) (cn), 71.28 (5j), 71.30 (3) (dq), 71.47 (5j), 71.49 (1) (dq), 86.195 (2) (c) 2. and 110.23 of the statutes; relating to: creating income and franchise tax credits for certain electric motor vehicles and for motor vehicles that use gasoline and ethanol mixtures as fuel and highway specific information signs.

Analysis by the Legislative Reference Bureau

Under this bill, a person may claim an income and franchise tax credit for certain amounts based on the vehicle's purchase price, if the person purchased or leased in the taxable year any of the following vehicles (eligible vehicles) that are sold or leased as new motor vehicles, manufactured in this state, and licensed for highway use:

1. A motor vehicle that is capable of using both gasoline and a mixture of gasoline and at least 85 percent ethanol as a fuel to propel the motor vehicle.

2. A vehicle that has a chemically fueled internal combustion engine which is capable of operating on gasoline, one or more alternative fuels, or diesel fuel, or by means of a gas turbine, and is also equipped with an electric motor and an energy storage device.

3. A vehicle that satisfies the requirements of the neighborhood electric vehicle test program conducted by the federal Department of Energy.

4. A plug-in hybrid-electric vehicle.

The bill also allows a person to claim an income and franchise tax credit of $50 for the purchase and installation of an engine modification kit that converts the person's motor vehicle into any vehicle described in 1. to 4. above.

The bill requires the Department of Transportation (DOT) to annually prepare and make publicly available a list of eligible vehicles, identified by vehicle make and model.

Current law allows DOT to erect and maintain certain informational signs to assist motorists traveling along state highways. DOT may, with restrictions, authorize the erection and maintenance, on designated state highways, of specific information signs, which notify motorists that certain businesses located near a highway are available to provide motorist services in the category of gas, food, lodging, camping, or attraction. A "business sign" is a separately attached sign mounted on a specific information sign showing the brand, symbol, or name, or combination of these, for a motorist service. Upon request, DOT may authorize the installation and maintenance of a business sign on a specific information sign. The person requesting installation of a business sign must provide the sign, at his or her expense, and pay for its installation. The person must also pay DOT an annual permit fee of $40 to cover administrative costs and the cost of inspection of the business sign.

Under this bill, a business sign may include the symbol "E85" for a motorist service in the "gas" category. A person who requests a business sign for a motorist service that offers gasoline consisting of at least 85 percent ethanol may include the symbol "E85" on the sign and, if the symbol "E85" is included on the sign, is not required to pay DOT the $40 annual permit fee. Only a motorist service that offers gasoline consisting of at least 85 percent ethanol in sufficient quantities to generally meet public demand may include the symbol "E85" on its business sign. In determining priority of applicants for installation and maintenance of a business sign, DOT may not consider as a factor that a person requesting the sign is not required to pay the annual permit fee.

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:

AB371, s. 1 Section 1. 71.05 (6) (a) 15. of the statutes is amended to read:

AB371,3,2 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3n), (3s), (3t), (3w), (5b), (5d), and (5e), (5f), and (5h), and (5j) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).

AB371, s. 2 Section 2. 71.07 (5j) of the statutes is created to read:

AB371,3,5 71.07 (5j) Flexible fuel and electric motor vehicles credit. (a) Definitions. In this subsection:

AB371,3,6 1. "Claimant" means a person who files a claim under this subsection.

AB371,3,9 2. "Eligible vehicle" means any of the following, as determined by the department of transportation under s. 110.23, that is manufactured in this state and sold or leased to the claimant as a new motor vehicle licensed for highway use:

AB371,3,11 a. A motor vehicle that is capable of using both gasoline and a mixture of gasoline and at least 85 percent ethanol as a fuel to propel the motor vehicle.

AB371,3,12 b. A hybrid-electric vehicle, as defined in s. 16.045 (1) (e).

AB371,3,14 c. A vehicle that satisfies the requirements of the neighborhood electric vehicle test program conducted by the federal department of energy.

AB371,3,15 d. A plug-in hybrid-electric vehicle.

AB371,3,19 (b) Filing claims. Subject to the limitations provided under this subsection, for taxable years beginning after December 31, 2007, and before January 1, 2013, a claimant may claim as a credit against the taxes imposed under s. 71.02, up to the amount of the tax:

AB371,3,21 1. One of the following amounts, if, in the taxable year, the claimant purchased or leased an eligible vehicle:

AB371,3,23 a. If the purchase price of the eligible vehicle is $18,000 or more, $500 for a purchased eligible vehicle and $100 for a leased eligible vehicle.

AB371,3,25 b. If the purchase price of the eligible vehicle is at least $17,000, but less than $18,000, $450 for a purchased eligible vehicle and $90 for a leased eligible vehicle.

AB371,4,2 c. If the purchase price of the eligible vehicle is at least $16,000, but less than $17,000, $400 for a purchased eligible vehicle and $80 for a leased eligible vehicle.

AB371,4,4 d. If the purchase price of the eligible vehicle is at least $15,000, but less than $16,000, $350 for a purchased eligible vehicle and $70 for a leased eligible vehicle.

AB371,4,6 e. If the purchase price of the eligible vehicle is at least $14,000, but less than $15,000, $300 for a purchased eligible vehicle and $60 for a leased eligible vehicle.

AB371,4,8 f. If the purchase price of the eligible vehicle is at least $13,000, but less than $14,000, $250 for a purchased eligible vehicle and $50 for a leased eligible vehicle.

AB371,4,10 g. If the purchase price of the eligible vehicle is at least $12,000, but less than $13,000, $200 for a purchased eligible vehicle and $40 for a leased eligible vehicle.

AB371,4,12 h. If the purchase price of the eligible vehicle is at least $11,000, but less than $12,000, $150 for a purchased eligible vehicle and $30 for a leased eligible vehicle.

AB371,4,14 i. If the purchase price of the eligible vehicle is at least $10,000, but less than $11,000, $100 for a purchased eligible vehicle and $20 for a leased eligible vehicle.

AB371,4,17 2. Fifty dollars, if the claimant purchased in the taxable year an engine modification kit to convert a motor vehicle that the claimant owns into an eligible vehicle.

AB371,4,23 (c) Limitations. 1. For purposes of determining the amount of the credit under par. (b) 1. for a leased motor vehicle, the purchase price is the purchase price of the motor vehicle on the first day of the lease period. A claimant who claims a credit under par. (b) 1. for a leased motor vehicle may claim the credit for each year of the lease period, except that the claimant may not claim the credit for taxable years beginning before January 1, 2008, or after December 31, 2012.

AB371,5,3 2. The credit under par. (b) 1. may be claimed only by the first person who takes title of the motor vehicle, other than for resale, or, in the case of a leased vehicle, the first person who leases the vehicle.

AB371,5,7 3. No credit may be claimed under par. (b) 2. unless the claimant submits with the claimant's return any document prescribed by the department that verifies that the engine modification kit described in par. (b) 2. was installed in the claimant's motor vehicle by a certified technician.

AB371,5,15 4. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts described under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

AB371,5,17 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB371, s. 3 Section 3. 71.10 (4) (cn) of the statutes is created to read:

AB371,5,19 71.10 (4) (cn) Flexible fuel and electric motor vehicles credit under s. 71.07 (5j).

AB371, s. 4 Section 4. 71.21 (4) of the statutes is amended to read:

AB371,5,23 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3n), (3s), (3t), (3w), (5b), (5e), (5f), (5g), and (5h), and (5j) and passed through to partners shall be added to the partnership's income.