SB506: Bill Text

LRB-4045/1

JK:jld&lmk:jf

2007 - 2008 LEGISLATURE

2007 Senate BILL 506

February 19, 2008 - Introduced by Senators Leibham, Schultz, Kedzie, A. Lasee and Roessler, cosponsored by Representatives Albers, Gunderson, Hahn, Owens, Townsend and Wood. Referred to Committee on Judiciary, Corrections, and Housing.

SB506,1,5 An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a), 71.34 (1) (g), 71.45 (2) (a) 10. and 77.92 (4); and to create 71.07 (3r), 71.10 (4) (cr), 71.28 (3r), 71.30 (3) (dn), 71.47 (3r) and 71.49 (1) (dn) of the statutes; relating to: income and franchise tax credits for insulating concrete forms used to construct a building and energy efficient products.

Analysis by the Legislative Reference Bureau

This bill creates an income and franchise tax credit equal to the amount that the taxpayer pays in the taxable year to purchase or manufacture insulating concrete forms used to construct a building and energy efficient products. If the amount of the credit exceeds the taxpayer's tax liability, the taxpayer does not receive a refund, but may claim the amount of any unused credit in subsequent taxable years.

For further information see the state and local 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:

SB506, s. 1 Section 1. 71.05 (6) (a) 15. of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB506,2,6 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), (3h), (3n), (3p), (3r), (3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), and (5k) 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).

SB506, s. 2 Section 2. 71.07 (3r) of the statutes is created to read:

SB506,2,9 71.07 (3r) Insulating concrete forms and energy efficient products credit. (a) Definitions. In this subsection:

SB506,2,10 1. "Claimant" means a person who files a claim under this subsection.

SB506,2,12 2. "Insulating concrete form" means a hollow expandable polystyrene form system that is filled with concrete and includes the concrete used to fill the form.

SB506,2,17 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the taxes imposed under s. 71.02, up to the amount of the taxes, an amount equal to the amount that the claimant paid in the taxable year to purchase any of the following for use in this state or to manufacture any of the following in this state:

SB506,2,19 1. Insulating concrete forms used to construct the insulated exterior walls of any building.

SB506,2,21 2. Any item of tangible personal property that is governed by and satisfies any of the following standards for energy efficiency:

SB506,2,22 a. The 2001 supplement of the 2000 International Energy Conservation Code.

SB506,2,23 b. The 2004 supplement of the 2003 International Energy Conservation Code.

SB506,3,3 c. The 2007 energy efficiency guidelines established by the federal environmental protection agency and the federal department of energy under the Energy Star program.

SB506,3,6 (c) Limitations. 1. No person may claim a credit under this subsection for any item for which the person has received a rebate under any state program, including a state program operated in conjunction with private entities.

SB506,3,14 2. 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 the 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.

SB506,3,16 (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.

SB506, s. 3 Section 3. 71.10 (4) (cr) of the statutes is created to read:

SB506,3,19 71.10 (4) (cr) Insulating concrete forms and energy efficient products credit under s. 71.07 (3r).

SB506, s. 4 Section 4. 71.21 (4) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB506,3,25 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3h), (3n), (3p), (3r), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k) and passed through to partners shall be added to the partnership's income.

SB506, s. 5 Section 5. 71.26 (2) (a) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB506,4,20 71.26 (2) (a) Corporations in general. The "net income" of a corporation means the gross income as computed under the Internal Revenue Code as modified under sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit computed under s. 71.28 (1), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c) 7., the amount of the credit under s. 71.28 (3) that the taxpayer added to income under this paragraph at the time that the taxpayer first claimed the credit plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3g), (3h), (3n), (3p), (3r), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, limited liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from the sale or other disposition of assets the gain from which would be wholly exempt income, as defined in sub. (3) (L), if the assets were sold or otherwise disposed of at a gain and minus deductions, as computed under the Internal Revenue Code as modified under sub. (3), plus or minus, as appropriate, an amount equal to the difference between the federal basis and Wisconsin basis of any asset sold, exchanged, abandoned, or otherwise disposed of in a taxable transaction during the taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).

SB506, s. 6 Section 6. 71.28 (3r) of the statutes is created to read:

SB506,4,23 71.28 (3r) Insulating concrete forms and energy efficient products credit. (a) Definitions. In this subsection:

SB506,4,24 1. "Claimant" means a person who files a claim under this subsection.

SB506,5,2 2. "Insulating concrete form" means a hollow expandable polystyrene form system that is filled with concrete and includes the concrete used to fill the form.

SB506,5,7 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the taxes imposed under s. 71.23, up to the amount of the taxes, an amount equal to the amount that the claimant paid in the taxable year to purchase any of the following for use in this state or to manufacture any of the following in this state:

SB506,5,9 1. Insulating concrete forms used to construct the insulated exterior walls of any building.

SB506,5,11 2. Any item of tangible personal property that is governed by and satisfies any of the following standards for energy efficiency:

SB506,5,12 a. The 2001 supplement of the 2000 International Energy Conservation Code.

SB506,5,13 b. The 2004 supplement of the 2003 International Energy Conservation Code.

SB506,5,16 c. The 2007 energy efficiency guidelines established by the federal environmental protection agency and the federal department of energy under the Energy Star program.

SB506,5,19 (c) Limitations. 1. No person may claim a credit under this subsection for any item for which the person has received a rebate under any state program, including a state program operated in conjunction with private entities.

SB506,6,2 2. 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 the 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.

SB506,6,4 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB506, s. 7 Section 7. 71.30 (3) (dn) of the statutes is created to read:

SB506,6,7 71.30 (3) (dn) Insulating concrete forms and energy efficient products credit under s. 71.28 (3r).

SB506, s. 8 Section 8. 71.34 (1) (g) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB506,6,13 71.34 (1) (g) An addition shall be made for credits computed by a tax-option corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g), (3h), (3n), (3p), (3r), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k) and passed through to shareholders.

SB506, s. 9 Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read: