LRB-0013/1
JK&CTS:jld:jf
2007 - 2008 LEGISLATURE
February 27, 2007 - Introduced by Senators Kanavas, Darling and Leibham,
cosponsored by Representatives Strachota, Hahn, Petrowski, Pridemore,
Kleefisch
and Gunderson. Referred to Committee on Campaign Finance
Reform, Rural Issues and Information Technology.
SB73,1,7 1An Act to amend 71.05 (6) (a) 15., 71.08 (1) (intro.), 71.21 (4), 71.26 (2) (a), 71.34
2(1) (g), 71.45 (2) (a) 10. and 77.92 (4); and to create 71.07 (5i), 71.10 (4) (gab),
371.28 (5i), 71.30 (3) (dq), 71.47 (5i) and 71.49 (1) (dq) of the statutes; relating
4to:
creating an income and franchise tax credit for constructing and operating
5a data center that is designed for maximum energy efficiency and minimum
6environmental impact and providing an exemption from rule-making
7procedures.
Analysis by the Legislative Reference Bureau
This bill creates an income and franchise tax credit in an amount equal to the
amount a person paid in the taxable year for items that are either energy efficient
or have a minimal environmental impact and that are used to construct or operate
a "green data center." Under the bill, a green data center is a repository for the
storage, management, and dissemination of data, if the mechanical, lighting,
electrical, and computer systems of the real property in which the repository is
located are designed for maximum energy efficiency and minimum environmental
impact.

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:
SB73, s. 1 1Section 1. 71.05 (6) (a) 15. of the statutes is amended to read:
SB73,2,62 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), (5b), (5d), and
4(5e), (5f), and (5h), and (5i) and not passed through by a partnership, limited liability
5company, or tax-option corporation that has added that amount to the partnership's,
6company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).
SB73, s. 2 7Section 2. 71.07 (5i) of the statutes is created to read:
SB73,2,88 71.07 (5i) Green data center credit. (a) Definitions. In this subsection:
SB73,2,99 1. "Claimant" means a person who files a claim under this subsection.
SB73,2,1310 2. "Green data center" means a repository for the storage, management, and
11dissemination of data, if the mechanical, lighting, electrical, and computer systems
12of the real property in which the repository is located are designed for maximum
13energy efficiency and minimum environmental impact.
SB73,2,1514 3. "Reduced amount" means an amount that is at least 25 percent less than the
15maximum amount allowed under federal law.
SB73,2,2116 (b) Filing claims. Subject to the limitations provided in this subsection and
172007 Wisconsin Act .... (this act), section 14 , for taxable years beginning after June
1830, 2007, and before July 1, 2009, a claimant may claim as a credit against the taxes
19imposed under s. 71.02 or 71.08, up to the amount of the taxes, the amount that the
20claimant paid in the taxable year for the following items that are used to construct
21and operate a green data center:
SB73,3,1
11. At least 2 of the following:
SB73,3,22 a. Low-emission building materials, including carpets and paints.
SB73,3,33 b. Sustainable landscaping.
SB73,3,44 c. An electronic waste recycling program, as defined by the department.
SB73,3,55 2. At least 2 of the following:
SB73,3,66 a. Catalytic converters on back-up generators.
SB73,3,77 b. Photovoltaics.
SB73,3,88 c. Heat pumps.
SB73,3,99 d. Evaporative cooling.
SB73,3,1110 3. Equipment or equipment components that have a reduced amount, or none,
11of at least 4 of the following:
SB73,3,1212 a. Mercury.
SB73,3,1313 b. Cadmium.
SB73,3,1414 c. Lead.
SB73,3,1515 d. Chromium VI.
SB73,3,1616 e. Polybrominated biphenyls.
SB73,3,1717 f. Polybrominated diphenyl ether.
SB73,3,2218 (c) Limitations. 1. The maximum amount of all credits that may be claimed
19under this subsection and ss. 71.28 (5i) and 71.47 (5i) is $2,000,000. No claimant may
20claim a credit under this subsection unless the claimant submits with the claimant's
21return a copy of the claimant's certification for credits under 2007 Wisconsin Act ....
22(this act), section 14.
SB73,4,523 2. Partnerships, limited liability companies, and tax-option corporations may
24not claim the credit under this subsection, but the eligibility for, and the amount of,
25the credit are based on their payment of amounts under par. (b). A partnership,

1limited liability company, or tax-option corporation shall compute the amount of
2credit that each of its partners, members, or shareholders may claim and shall
3provide that information to each of them. Partners, members of limited liability
4companies, and shareholders of tax-option corporations may claim the credit in
5proportion to their ownership interests.
SB73,4,76 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
7s. 71.28 (4), applies to the credit under this subsection.
SB73, s. 3 8Section 3. 71.08 (1) (intro.) of the statutes is amended to read:
SB73,4,189 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married
10couple filing jointly, trust, or estate under s. 71.02, not considering the credits under
11ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3c), (3e), (3m),
12(3n), (3s), (3t), (3w), (5b), (5d), (5e), (5f), (5i), (6), (6e), and (9e), 71.28 (1dd), (1de), (1di),
13(1dj), (1dL), (1ds), (1dx), (1fd), (2m), (3), (3n), (3t), and (3w), and 71.47 (1dd), (1de),
14(1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m), (3), (3n), (3t), and (3w), and subchs. VIII
15and IX and payments to other states under s. 71.07 (7), is less than the tax under this
16section, there is imposed on that natural person, married couple filing jointly, trust
17or estate, instead of the tax under s. 71.02, an alternative minimum tax computed
18as follows:
SB73, s. 4 19Section 4. 71.10 (4) (gab) of the statutes is created to read:
SB73,4,2020 71.10 (4) (gab) Green data center credit under s. 71.07 (5i).
SB73, s. 5 21Section 5. 71.21 (4) of the statutes is amended to read:
SB73,4,2422 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
23(2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3n), (3s), (3t), (3w), (5b), (5e), (5f), (5g), and (5h),
24and (5i)
and passed through to partners shall be added to the partnership's income.
SB73, s. 6 25Section 6. 71.26 (2) (a) of the statutes is amended to read:
SB73,5,18
171.26 (2) (a) Corporations in general. The "net income" of a corporation means
2the gross income as computed under the Internal Revenue Code as modified under
3sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
4computed under s. 71.28 (1), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c)
57., the amount of the credit under s. 71.28 (3) that the taxpayer added to income
6under this paragraph at the time that the taxpayer first claimed the credit plus the
7amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm),
8(1ds), (1dx), (3g), (3n), (3t), (3w), (5b), (5e), (5f), (5g), and (5h), and (5i) and not passed
9through by a partnership, limited liability company, or tax-option corporation that
10has added that amount to the partnership's, limited liability company's, or
11tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus the amount
12of losses from the sale or other disposition of assets the gain from which would be
13wholly exempt income, as defined in sub. (3) (L), if the assets were sold or otherwise
14disposed of at a gain and minus deductions, as computed under the Internal Revenue
15Code as modified under sub. (3), plus or minus, as appropriate, an amount equal to
16the difference between the federal basis and Wisconsin basis of any asset sold,
17exchanged, abandoned, or otherwise disposed of in a taxable transaction during the
18taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).
SB73, s. 7 19Section 7. 71.28 (5i) of the statutes is created to read:
SB73,5,2020 71.28 (5i) Green data center credit. (a) Definitions. In this subsection:
SB73,5,2121 1. "Claimant" means a person who files a claim under this subsection.
SB73,5,2522 2. "Green data center" means a repository for the storage, management, and
23dissemination of data, if the mechanical, lighting, electrical, and computer systems
24of the real property in which the repository is located are designed for maximum
25energy efficiency and minimum environmental impact.
SB73,6,2
13. "Reduced amount" means an amount that is at least 25 percent less than the
2maximum amount allowed under federal law.
SB73,6,83 (b) Filing claims. Subject to the limitations provided in this subsection and
42007 Wisconsin Act .... (this act), section 14 , for taxable years beginning after June
530, 2007, and before July 1, 2009, a claimant may claim as a credit against the taxes
6imposed under s. 71.23, up to the amount of the taxes, the amount that the claimant
7paid in the taxable year for the following items that are used to construct and operate
8a green data center:
SB73,6,99 1. At least 2 of the following:
SB73,6,1010 a. Low-emission building materials, including carpets and paints.
SB73,6,1111 b. Sustainable landscaping.
SB73,6,1212 c. An electronic waste recycling program, as defined by the department.
SB73,6,1313 2. At least 2 of the following:
SB73,6,1414 a. Catalytic converters on back-up generators.
SB73,6,1515 b. Photovoltaics.
SB73,6,1616 c. Heat pumps.
SB73,6,1717 d. Evaporative cooling.
SB73,6,1918 3. Equipment or equipment components that have a reduced amount, or none,
19of at least 4 of the following:
SB73,6,2020 a. Mercury.
SB73,6,2121 b. Cadmium.
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