JK:jld:nwn
2007 - 2008 LEGISLATURE
May 31, 2007 - Introduced by Representatives Wood, Gronemus, Moulton,
Molepske, Lothian, Hahn, Musser, Mursau, Townsend, Sheridan, Bies,
Ballweg, Albers, Gunderson, Tauchen, Nygren
and A. Ott, cosponsored by
Senators Kreitlow, Darling and Schultz. Referred to Committee on Biofuels
and Sustainable Energy.
AB378,1,11 1An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a), 71.28 (4) (ad) 1., 71.28
2(5) (ad) 1., 71.34 (1) (g), 71.45 (2) (a) 10., 71.47 (4) (ad) 1., 71.47 (5) (ad) 1., 77.92
3(4), 78.01 (1) and 560.205 (1) (g); and to create 71.07 (3x), 71.07 (3y), 71.07 (5i),
471.07 (5k), 71.07 (8r), 71.10 (4) (dn), 71.10 (4) (gc), 71.10 (4) (gcb), 71.10 (4) (gcd),
571.10 (4) (gce), 71.28 (3x), 71.28 (3y), 71.28 (4) (ad) 4., 71.28 (5) (ad) 4., 71.28 (5i),
671.28 (5k), 71.30 (3) (dk), 71.30 (3) (ed), 71.30 (3) (edb), 71.30 (3) (edc), 71.47 (3x),
771.47 (3y), 71.47 (4) (ad) 4., 71.47 (5) (ad) 4., 71.47 (5i), 71.47 (5k), 71.49 (1) (dk),
871.49 (1) (ds), 71.49 (1) (dsb) and 71.49 (1) (dsc) of the statutes; relating to: the
9motor vehicle fuel tax imposed on fuel from a renewable resource, income and
10franchise tax credits related to renewable energy, and requiring the exercise of
11rule-making authority.
Analysis by the Legislative Reference Bureau
This bill creates income and franchise tax credits for the amount that a person
pays in the taxable year for any of the following:
1. Equipment that generates electricity from solar energy, wind energy, or
agricultural waste.

2. Research and development related to designing and manufacturing
equipment that generates electricity from solar energy, wind energy, garbage, or
agricultural or organic waste.
3. The construction of an energy efficient commercial building.
4. The installation of fuel station equipment that dispenses fuel that, generally,
consists of at least 85 percent ethanol or 20 percent biodiesel fuel.
5. Building materials used by a contractor to construct an energy efficient
home.
6. Energy efficient equipment and products that the person installs in his or
her principal residence, including air-source and geothermal heat pumps, solar
water heating systems, windows, exterior doors, Energy Star appliances and metal
roofing materials, woodburning furnaces, and cornburning furnaces.
Under current law, a person who makes an "angel" investment in a business
certified by the Department of Commerce to receive such investments may claim an
income tax credit for 25 percent of the investment. Certain businesses, however, are
not eligible for certification, including any business engaged in retail trade,
hospitality, transportation, or construction. The bill provides that a business
engaged in the construction of a power production plant that derives energy from a
renewable resource may be certified to receive angel investments.
Finally, the bill provides that the motor vehicle fuel tax does not apply to
ethanol contained in motor vehicle fuel that consists of at least 85 percent ethanol
or to biomass or any other renewable resource contained in biodiesel fuel that
contains at least 20 percent biomass or other renewable resource.
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:
AB378, s. 1 1Section 1. 71.05 (6) (a) 15. of the statutes is amended to read:
AB378,2,72 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
3(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3n), (3s), (3t), (3w), (3x), (3y), (5b),
4(5d), and (5e), (5f), and (5h), (5i), and (5k) and not passed through by a partnership,
5limited liability company, or tax-option corporation that has added that amount to
6the partnership's, company's, or tax-option corporation's income under s. 71.21 (4)
7or 71.34 (1) (g).
AB378, s. 2 8Section 2. 71.07 (3x) of the statutes is created to read:
AB378,3,2
171.07 (3x) Alternative energy sources credit. (a) Definitions. In this
2subsection:
AB378,3,33 1. "Claimant" means a person who files a claim under this subsection.
AB378,3,54 2. "Used exclusively" means used to the exclusion of all other uses except for
5use not exceeding 5 percent of total use.
AB378,3,96 (b) Filing claims. Subject to the limitations provided under this subsection, for
7taxable years beginning after June 30, 2008, and before July 1, 2010, a claimant may
8claim as a credit against the taxes imposed under s. 71.02, up to the amount of the
9tax, an amount equal to any of the following:
AB378,3,1410 1. Ten percent of the amount that the claimant paid in the taxable year on the
11purchase of equipment that captures solar energy, wind energy, or gas from garbage
12or from agricultural or organic waste, including livestock manure, and converts such
13energy or gas into electricity, if the rated capacity of all such equipment at the point
14of interconnection does not exceed 25,000 watts of alternating or direct current.
AB378,3,1715 2. Ten percent of the amount that the claimant paid in the taxable year on the
16purchase of professional services for the design, installation, maintenance, and
17repair of the equipment described in subd. 1.
AB378,3,2118 3. Ten cents per kilowatt hour for energy generated in the taxable year from
19solar energy, wind energy, or gas from livestock manure and other agricultural
20waste, if the energy is used exclusively by the claimant or returned to a utility as
21surplus energy.
AB378,4,322 (c) Limitations. 1. The maximum amount of the credits that may be claimed
23by all claimants under this subsection in each fiscal year is $1,000,000. No claimant
24may claim a credit under this subsection unless the claimant files an application for
25the credit with the department, in the manner prescribed by the department, and the

1department approves the credit. The department shall adjust the amount of the
2credits claimed by each claimant so that the total amount of all credits claimed does
3not exceed the maximum amount established under this subdivision.
AB378,4,114 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.
AB378,4,1312 (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.
AB378, s. 3 14Section 3. 71.07 (3y) of the statutes is created to read:
AB378,4,1615 71.07 (3y) Energy efficient commercial building credit. (a) Definition. In
16this subsection, "claimant" means a person who files a claim under this subsection.
AB378,5,317 (b) Filing claims. Subject to the limitations provided in this subsection, for
18taxable years beginning after December 31, 2007, a claimant may claim as a credit
19against the taxes imposed under s. 71.02, up to the amount of the tax, an amount that
20is equal to the amount that the claimant paid in the taxable year to construct,
21rehabilitate, remodel, or repair a building that is placed in service in the taxable year,
22if, after the building is placed in service, the building is assessed as commercial
23property under s. 70.32 (2) (a) 2. and, as determined by rule by the department of
24revenue, the building's interior lighting, heating, cooling, ventilation, and hot water
25systems use at least 50 percent less energy than a building that satisfies the

1minimum requirements under standard 90.1-2001 of the American Society of
2Heating, Refrigerating, and Air-Conditioning Engineers and the Illuminating
3Engineering Society of North America, as in effect on April 2, 2003.
AB378,5,64 (c) Limitations. 1. The maximum amount that a claimant may claim under this
5subsection is an amount equal to the total square footage of the building multiplied
6by $1.80.
AB378,5,147 2. Partnerships, limited liability companies, and tax-option corporations may
8not claim the credit under this subsection, but the eligibility for, and the amount of,
9the credit are based on their payment of amounts under par. (b). A partnership,
10limited liability company, or tax-option corporation shall compute the amount of
11credit that each of its partners, members, or shareholders may claim and shall
12provide that information to each of them. Partners, members of limited liability
13companies, and shareholders of tax-option corporations may claim the credit in
14proportion to their ownership interests.
AB378,5,1615 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
16s. 71.28 (4), applies to the credit under this subsection.
AB378, s. 4 17Section 4. 71.07 (5i) of the statutes is created to read:
AB378,5,1918 71.07 (5i) Clean fuel fueling station credit. (a) Definitions. In this
19subsection:
AB378,5,2020 1. "Biodiesel fuel" has the meaning given in s. 168.14 (2m) (a).
AB378,5,2221 2. "Claimant" means a retail dealer, as defined in s. 78.005 (13m), who files a
22claim under this subsection.
AB378,5,2323 3. "Clean fuel" means any fuel that consists of:
AB378,5,2524 a. At least 85 percent ethanol, natural gas, compressed natural gas, liquified
25natural gas, liquified petroleum gas, or hydrogen.
AB378,6,2
1b. A mixture of diesel fuel and biodiesel fuel containing at least 20 percent
2biodiesel fuel.
AB378,6,73 (b) Filing claims. Subject to the limitations provided in this subsection, for
4taxable years beginning after December 31, 2007, and before January 1, 2018, a
5claimant may claim as a credit against the taxes imposed under s. 71.02, up to the
6amount of the tax, an amount that is equal to the amount that the claimant paid in
7the taxable year to install or convert equipment that dispenses clean fuel.
AB378,6,108 (c) Limitations. 1. The maximum amount that a claimant may claim under this
9subsection is an amount equal to $5,000 for each retail fueling station for which the
10claimant paid expenses as described under par. (b).
AB378,6,1711 2. The maximum amount of the credits that may be claimed by all claimants
12under this subsection in each taxable year is $1,000,000. No claimant may claim a
13credit under this subsection unless the claimant files an application for the credit
14with the department, in the manner prescribed by the department, and the
15department approves the credit. The department shall adjust the amount of the
16credits claimed by each claimant so that the total amount of all credits claimed does
17not exceed the maximum amount established under this subdivision.
AB378,6,2518 3. Partnerships, limited liability companies, and tax-option corporations may
19not claim the credit under this subsection, but the eligibility for, and the amount of,
20the credit are based on their payment of amounts under par. (b). A partnership,
21limited liability company, or tax-option corporation shall compute the amount of
22credit that each of its partners, members, or shareholders may claim and shall
23provide that information to each of them. Partners, members of limited liability
24companies, and shareholders of tax-option corporations may claim the credit in
25proportion to their ownership interests.
AB378,7,2
1(d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
2s. 71.28 (4), applies to the credit under this subsection.
AB378, s. 5 3Section 5. 71.07 (5k) of the statutes is created to read:
AB378,7,54 71.07 (5k) Energy efficient home construction credit. (a) Definitions. In
5this subsection:
AB378,7,66 1. "Claimant" means a person who files a claim under this subsection.
AB378,7,77 2. "Contractor" has the meaning given in s. 77.51 (2).
AB378,7,108 3. "Energy efficient home" means a home that satisfies the energy savings
9requirements under section 45L (c) of the Internal Revenue Code, regardless of
10whether the home is certified under section 45L (d) of the Internal Revenue Code.
AB378,7,1611 (b) Filing claims. Subject to the limitations provided in this subsection, for
12taxable years beginning after December 31, 2007, a claimant may claim as a credit
13against the taxes imposed under s. 71.02, up to the amount of the tax, the amount
14that the claimant paid in the taxable year for building materials used to construct
15an energy efficient home in this state, if the claimant is a contractor or a producer
16of manufactured homes.
AB378,7,1917 (c) Limitations. 1. The maximum amount that a claimant may claim under this
18subsection in a taxable year is an amount equal to $2,000 for each energy efficient
19home constructed by the claimant in the taxable year.
AB378,8,220 2. Partnerships, limited liability companies, and tax-option corporations may
21not claim the credit under this subsection, but the eligibility for, and the amount of,
22the credit are based on their payment of amounts under par. (b). A partnership,
23limited liability company, or tax-option corporation shall compute the amount of
24credit that each of its partners, members, or shareholders may claim and shall
25provide that information to each of them. Partners, members of limited liability

1companies, and shareholders of tax-option corporations may claim the credit in
2proportion to their ownership interests.
AB378,8,43 (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.
AB378, s. 6 5Section 6. 71.07 (8r) of the statutes is created to read:
AB378,8,76 71.07 (8r) Energy efficiency home improvement credit. (a) Definitions. In
7this subsection:
AB378,8,108 1. "Air-source heat pump" means an air-source heat pump with a heating
9seasonal performance factor rating of at least 9, an energy efficiency rating of at least
1013, and a seasonal energy efficiency rating of at least 15.
AB378,8,1111 2. "Claimant" means an individual who files a claim under this subsection.
AB378,8,1412 3. "Energy efficient" means satisfying the standards established by the 2001
13supplement of the 2000 International Energy Conservation Code or the 2004
14supplement of the 2003 International Energy Conservation Code.
AB378,8,1715 4. "Geothermal heat pump" means a ground-source heat pump unit used for
16heating and cooling that employs a fluid to transfer heat between the unit and the
17earth and that has any of the following:
AB378,8,1918 a. For a closed loop product, an energy efficiency rating of at least 14.1 and a
19heating coefficient of performance of at least 3.3.
AB378,8,2120 b. For an open loop product, an energy efficiency rating of at least 16.2 and a
21heating coefficient of performance of at least 3.6.
AB378,8,2322 c. For a direct expansion product, an energy efficiency rating of at least 15 and
23a heating coefficient of performance of at least 3.5.
AB378,9,224 5. "Solar water heating system" means a solar water heating system certified
25by the solar rating and certification corporation or any successor entity, if at least 50

1percent of the energy generated from the system comes from the sun and if the
2system is not used to heat water for swimming pools or hot tubs.
AB378,9,73 (b) Filing claims. Subject to the limitations provided in this subsection, for
4taxable years beginning after December 31, 2007, a claimant may claim as a credit
5against the tax imposed under s. 71.02, up to the amount of the credits, all of the
6following that the claimant paid in the taxable year, if the items specified in subds.
71. to 11. are installed in the claimant's principal residence:
AB378,9,108 1. Ten percent of the amount paid for energy efficient windows, except that the
9total amount of the claim for all such windows purchased by the claimant in the
10taxable year may not exceed $500.
AB378,9,1311 2. Ten percent of the amount paid for energy efficient skylights, except that the
12total amount of the claim for all such skylights purchased by the claimant in the
13taxable year may not exceed $200.
AB378,9,1614 3. Ten percent of the amount paid for energy efficient exterior doors, except that
15the total amount of the claim for all such doors purchased by the claimant in the
16taxable year may not exceed $500.
AB378,9,1917 4. Ten percent of the amount paid for energy star qualified metal roofing
18material, except that the total amount of the claim for all such material purchased
19by the claimant in the taxable year may not exceed $500.
AB378,9,2320 5. Ten percent of the amount paid for insulation that satisfies the standards
21established by the 2000 International Energy Conservation Code, and any
22amendments to the code, except that the total amount of the claim for all such
23insulation purchased by the claimant in the taxable year may not exceed $500.
AB378,9,2424 6. The amount paid for an air-source heat pump, not to exceed $300.
AB378,9,2525 7. The amount paid for a geothermal heat pump, not to exceed $1,000.
AB378,10,2
18. The amount paid for a water heater that uses methane to heat water and has
2an energy factor of at least 0.80, not to exceed $300.
AB378,10,43 9. The amount paid for an electric heat pump water heater that has an energy
4factor of at 2.0, not to exceed $300.
AB378,10,65 10. The amount paid for an advanced main air circulating fan that operates by
6using no more than 2 percent of a furnaces total energy use, not to exceed $50.
AB378,10,107 11. Thirty percent of the amount paid for a solar water heating system, not
8including the cost of any equipment that would otherwise be part of a conventional
9heating system, except that the total amount of the claim for all such systems
10purchased by the claimant in the taxable year may not exceed $2,000.
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