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:
SB227, s. 1 6Section 1. 71.05 (6) (a) 15. of the statutes is amended to read:
SB227,2,6
171.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
2(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
3(3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k), (5r), (5rm), and (8r), and (9g)
4and not passed through by a partnership, limited liability company, or tax-option
5corporation that has added that amount to the partnership's, company's, or
6tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
SB227, s. 2 7Section 2. 71.07 (9g) of the statutes is created to read:
SB227,2,98 71.07 (9g) Insulating concrete forms and energy efficient products credit.
9(a) Definitions. In this subsection:
SB227,2,1010 1. "Claimant" means a person who files a claim under this subsection.
SB227,2,1211 2. "Insulating concrete form" means a hollow expandable polystyrene form
12system that is filled with concrete and includes the concrete used to fill the form.
SB227,2,1713 (b) Filing claims. Subject to the limitations provided in this subsection, a
14claimant may claim as a credit against the taxes imposed under s. 71.02, up to the
15amount of the taxes, an amount equal to the amount that the claimant paid in the
16taxable year to purchase any of the following for use in this state or to manufacture
17any of the following in this state:
SB227,2,1918 1. Insulating concrete forms used to construct the foundation walls, frost walls,
19or insulated interior or exterior walls of any building.
SB227,2,2120 2. Any item of tangible personal property that is governed by and satisfies any
21of the following standards for energy efficiency:
SB227,2,2222 a. The 2001 supplement of the 2000 International Energy Conservation Code.
SB227,2,2323 b. The 2004 supplement of the 2003 International Energy Conservation Code.
SB227,3,3
1c. The 2007 energy efficiency guidelines established by the federal
2environmental protection agency and the federal department of energy under the
3Energy Star program.
SB227,3,64 (c) Limitations. 1. No person may claim a credit under this subsection for any
5item for which the person has received a rebate under any state program, including
6a state program operated in conjunction with private entities.
SB227,3,147 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 the amounts described under par. (b). A
10partnership, limited liability company, or tax-option corporation shall compute the
11amount of credit that each of its partners, members, or shareholders may claim and
12shall provide 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.
SB227,3,1615 (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.
SB227, s. 3 17Section 3. 71.10 (4) (cr) of the statutes is created to read:
SB227,3,1918 71.10 (4) (cr) Insulating concrete forms and energy efficient products credit
19under s. 71.07 (9g).
SB227, s. 4 20Section 4. 71.21 (4) of the statutes is amended to read:
SB227,3,2421 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
22(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s),
23(3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), and (8r), and (9g) and passed
24through to partners shall be added to the partnership's income.
SB227, s. 5
1Section 5. 71.26 (2) (a) 4. of the statutes, as affected by 2011 Wisconsin Act 3,
2is amended to read:
SB227,4,93 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
4(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r),
5(3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (8r), (9g), and
6(9s) and not passed through by a partnership, limited liability company, or
7tax-option corporation that has added that amount to the partnership's, limited
8liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k)
9(g).
SB227, s. 6 10Section 6. 71.28 (9g) of the statutes is created to read:
SB227,4,1211 71.28 (9g) Insulating concrete forms and energy efficient products credit.
12(a) Definitions. In this subsection:
SB227,4,1313 1. "Claimant" means a person who files a claim under this subsection.
SB227,4,1514 2. "Insulating concrete form" means a hollow expandable polystyrene form
15system that is filled with concrete and includes the concrete used to fill the form.
SB227,4,2016 (b) Filing claims. Subject to the limitations provided in this subsection, a
17claimant may claim as a credit against the taxes imposed under s. 71.23, up to the
18amount of the taxes, an amount equal to the amount that the claimant paid in the
19taxable year to purchase any of the following for use in this state or to manufacture
20any of the following in this state:
SB227,4,2221 1. Insulating concrete forms used to construct the foundation walls, frost walls,
22or insulated interior or exterior walls of any building.
SB227,4,2423 2. Any item of tangible personal property that is governed by and satisfies any
24of the following standards for energy efficiency:
SB227,4,2525 a. The 2001 supplement of the 2000 International Energy Conservation Code.
SB227,5,1
1b. The 2004 supplement of the 2003 International Energy Conservation Code.
SB227,5,42 c. The 2007 energy efficiency guidelines established by the federal
3environmental protection agency and the federal department of energy under the
4Energy Star program.
SB227,5,75 (c) Limitations. 1. No person may claim a credit under this subsection for any
6item for which the person has received a rebate under any state program, including
7a state program operated in conjunction with private entities.
SB227,5,158 2. Partnerships, limited liability companies, and tax-option corporations may
9not claim the credit under this subsection, but the eligibility for, and the amount of,
10the credit are based on their payment of the amounts described under par. (b). A
11partnership, limited liability company, or tax-option corporation shall compute the
12amount of credit that each of its partners, members, or shareholders may claim and
13shall provide that information to each of them. Partners, members of limited liability
14companies, and shareholders of tax-option corporations may claim the credit in
15proportion to their ownership interests.
SB227,5,1716 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
17sub. (4), applies to the credit under this subsection.
SB227, s. 7 18Section 7. 71.30 (3) (dn) of the statutes is created to read:
SB227,5,2019 71.30 (3) (dn) Insulating concrete forms and energy efficient products credit
20under s. 71.28 (9g).
SB227, s. 8 21Section 8. 71.34 (1k) (g) of the statutes is amended to read:
SB227,5,2522 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
23corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
24(3), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j),
25(5k), (5r), (5rm), and (8r), and (9g) and passed through to shareholders.
SB227, s. 9
1Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2011 Wisconsin Act
23
, is amended to read:
SB227,6,93 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
4computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn),
5(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (8r), (9g), and (9s) and not passed
6through by a partnership, limited liability company, or tax-option corporation that
7has added that amount to the partnership's, limited liability company's, or
8tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and the amount
9of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).
SB227, s. 10 10Section 10. 71.47 (9g) of the statutes is created to read:
SB227,6,1211 71.47 (9g) Insulating concrete forms and energy efficient products credit.
12(a) Definitions. In this subsection:
SB227,6,1313 1. "Claimant" means a person who files a claim under this subsection.
SB227,6,1514 2. "Insulating concrete form" means a hollow expandable polystyrene form
15system that is filled with concrete and includes the concrete used to fill the form.
SB227,6,2016 (b) Filing claims. Subject to the limitations provided in this subsection, a
17claimant may claim as a credit against the taxes imposed under s. 71.43, up to the
18amount of the taxes, an amount equal to the amount that the claimant paid in the
19taxable year to purchase any of the following for use in this state or to manufacture
20any of the following in this state:
SB227,6,2221 1. Insulating concrete forms used to construct the foundation walls, frost walls,
22or insulated interior or exterior walls of any building.
SB227,6,2423 2. Any item of tangible personal property that is governed by and satisfies any
24of the following standards for energy efficiency:
SB227,6,2525 a. The 2001 supplement of the 2000 International Energy Conservation Code.
SB227,7,1
1b. The 2004 supplement of the 2003 International Energy Conservation Code.
SB227,7,42 c. The 2007 energy efficiency guidelines established by the federal
3environmental protection agency and the federal department of energy under the
4Energy Star program.
SB227,7,75 (c) Limitations. 1. No person may claim a credit under this subsection for any
6item for which the person has received a rebate under any state program, including
7a state program operated in conjunction with private entities.
SB227,7,158 2. Partnerships, limited liability companies, and tax-option corporations may
9not claim the credit under this subsection, but the eligibility for, and the amount of,
10the credit are based on their payment of the amounts described under par. (b). A
11partnership, limited liability company, or tax-option corporation shall compute the
12amount of credit that each of its partners, members, or shareholders may claim and
13shall provide that information to each of them. Partners, members of limited liability
14companies, and shareholders of tax-option corporations may claim the credit in
15proportion to their ownership interests.
SB227,7,1716 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
17s. 71.28 (4), applies to the credit under this subsection.
SB227, s. 11 18Section 11. 71.49 (1) (dn) of the statutes is created to read:
SB227,7,2019 71.49 (1) (dn) Insulating concrete forms and energy efficient products credit
20under s. 71.47 (9g).
SB227, s. 12 21Section 12. 77.92 (4) of the statutes is amended to read:
SB227,8,1222 77.92 (4) "Net business income," with respect to a partnership, means taxable
23income as calculated under section 703 of the Internal Revenue Code; plus the items
24of income and gain under section 702 of the Internal Revenue Code, including taxable
25state and municipal bond interest and excluding nontaxable interest income or

1dividend income from federal government obligations; minus the items of loss and
2deduction under section 702 of the Internal Revenue Code, except items that are not
3deductible under s. 71.21; plus guaranteed payments to partners under section 707
4(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
5(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
6(3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), and (8r),
7and (9g)
; and plus or minus, as appropriate, transitional adjustments, depreciation
8differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but
9excluding income, gain, loss, and deductions from farming. "Net business income,"
10with respect to a natural person, estate, or trust, means profit from a trade or
11business for federal income tax purposes and includes net income derived as an
12employee as defined in section 3121 (d) (3) of the Internal Revenue Code.
SB227, s. 13 13Section 13. Initial applicability.
SB227,8,1714 (1) This act first applies to taxable years beginning on January 1 of the year
15in which this subsection takes effect, except that if this subsection takes effect after
16July 31 this act first applies to taxable years beginning on January 1 of the year
17following the year in which this subsection takes effect.
SB227,8,1818 (End)
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