AB378: Bill Text

AB378,21,4 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), (3n), (3t), (3w), (3x), (3y), (5b), (5e), (5f), (5g), and (5h), (5i), and (5k) and passed through to shareholders.

AB378, s. 27 Section 27. 71.45 (2) (a) 10. of the statutes is amended to read:

AB378,21,12 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dx), (3n), (3w), (3x), (3y), (5b), (5e), (5f), (5g), and (5h), (5i), 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) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4), and (5).

AB378, s. 28 Section 28. 71.47 (3x) of the statutes is created to read:

AB378,21,15 71.47 (3x) Alternative energy sources credit. (a) Definitions. In this subsection:

AB378,21,16 1. "Claimant" means a person who files a claim under this subsection.

AB378,21,18 2. "Used exclusively" means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.

AB378,21,22 (b) Filing claims. Subject to the limitations provided under this subsection, for taxable years beginning after June 30, 2008, and before July 1, 2010, a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of the tax, an amount equal to any of the following:

AB378,22,2 1. Ten percent of the amount that the claimant paid in the taxable year on the purchase of equipment that captures solar energy, wind energy, or gas from garbage or from agricultural or organic waste, including livestock manure, and converts such energy or gas into electricity, if the rated capacity of all such equipment at the point of interconnection does not exceed 25,000 watts of alternating or direct current.

AB378,22,5 2. Ten percent of the amount that the claimant paid in the taxable year on the purchase of professional services for the design, installation, maintenance, and repair of the equipment described in subd. 1.

AB378,22,9 3. Ten cents per kilowatt hour for energy generated in the taxable year from solar energy, wind energy, or gas from livestock manure and other agricultural waste, if the energy is used exclusively by the claimant or returned to a utility as surplus energy.

AB378,22,16 (c) Limitations. 1. The maximum amount of the credits that may be claimed by all claimants under this subsection in each fiscal year is $1,000,000. No claimant may claim a credit under this subsection unless the claimant files an application for the credit with the department, in the manner prescribed by the department, and the department approves the credit. The department shall adjust the amount of the credits claimed by each claimant so that the total amount of all credits claimed does not exceed the maximum amount established under this subdivision.

AB378,22,24 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 amounts 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.

AB378,23,2 (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.

AB378, s. 29 Section 29. 71.47 (3y) of the statutes is created to read:

AB378,23,5 71.47 (3y) Energy efficient commercial building credit. (a) Definition. In this subsection, "claimant" means a person who files a claim under this subsection.

AB378,23,17 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2007, a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of the tax, an amount that is equal to the amount that the claimant paid in the taxable year to construct, rehabilitate, remodel, or repair a building that is placed in service in the taxable year, if, after the building is placed in service, the building is assessed as commercial property under s. 70.32 (2) (a) 2. and, as determined by rule by the department of revenue, the building's interior lighting, heating, cooling, ventilation, and hot water systems use at least 50 percent less energy than a building that satisfies the minimum requirements under standard 90.1-2001 of the American Society of Heating, Refrigerating, and Air-Conditioning Engineers and the Illuminating Engineering Society of North America, as in effect on April 2, 2003.

AB378,23,20 (c) Limitations. 1. The maximum amount that a claimant may claim under this subsection is an amount equal to the total square footage of the building multiplied by $1.80.

AB378,24,3 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 amounts 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.

AB378,24,5 (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.

AB378, s. 30 Section 30. 71.47 (4) (ad) 1. of the statutes is amended to read:

AB378,24,21 71.47 (4) (ad) 1. Except as provided in subds. 2. and 3. to 4., any corporation may credit against taxes otherwise due under this chapter an amount equal to 5 percent of the amount obtained by subtracting from the corporation's qualified research expenses, as defined in section 41 of the Internal Revenue Code, except that "qualified research expenses" includes only expenses incurred by the claimant, incurred for research conducted in this state for the taxable year, except that a taxpayer may elect the alternative computation under section 41 (c) (4) of the Internal Revenue Code and that election applies until the department permits its revocation, except as provided in par. (af), and except that "qualified research expenses" does not include compensation used in computing the credit under subs. (1dj) and (1dx), the corporation's base amount, as defined in section 41 (c) of the Internal Revenue Code, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2., (d), (df), and (dh). Section 41 (h) of the Internal Revenue Code does not apply to the credit under this paragraph.

AB378, s. 31 Section 31. 71.47 (4) (ad) 4. of the statutes is created to read:

AB378,25,14 71.47 (4) (ad) 4. a. For taxable years beginning after June 30, 2008, and before July 1, 2009, any corporation may credit against taxes otherwise due under this chapter an amount equal to 10 percent of the amount obtained by subtracting from the corporation's qualified research expenses, as defined in section 41 of the Internal Revenue Code, except that "qualified research expenses" includes only expenses incurred by the claimant for research related to the design and manufacturing of equipment that captures solar energy, wind energy, or gas from livestock manure and other agricultural waste and converts such energy or gas into electricity, incurred for research conducted in this state for the taxable year, except that a taxpayer may elect the alternative computation under section 41 (c) (4) of the Internal Revenue Code and that election applies until the department permits its revocation, except as provided in par. (af), and except that "qualified research expenses" does not include compensation used in computing the credit under subs. (1dj) and (1dx), the corporation's base amount, as defined in section 41 (c) of the Internal Revenue Code, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2. and (d). Section 41 (h) of the Internal Revenue Code does not apply to the credit under this paragraph.

AB378,25,21 b. The maximum amount of the credits that may be claimed by all claimants under subd. 4. a. is $250,000. No claimant may claim a credit under subd. 4. a. unless the claimant files an application for the credit with the department, in the manner prescribed by the department, and the department approves the credit. The department shall adjust the amount of the credits claimed by each claimant so that the total amount of all credits claimed does not exceed the maximum amount established under this subd. 4. b.

AB378, s. 32 Section 32. 71.47 (5) (ad) 1. of the statutes is amended to read:

AB378,26,5 71.47 (5) (ad) 1. Except as provided in subds. 2. and 3. to 4., for taxable year 1986 and subsequent years, any corporation may credit against taxes otherwise due under this chapter an amount equal to 5 percent of the amount paid or incurred by that corporation during the taxable year to construct and equip new facilities or expand existing facilities used in this state for qualified research, as defined in section 41 of the Internal Revenue Code. Eligible amounts include only amounts paid or incurred for tangible, depreciable property but do not include amounts paid or incurred for replacement property.

AB378, s. 33 Section 33. 71.47 (5) (ad) 4. of the statutes is created to read:

AB378,26,18 71.47 (5) (ad) 4. a. For taxable years beginning after June 30, 2008, and before July 1, 2009, any corporation may credit against taxes otherwise due under this chapter an amount equal to 10 percent of the amount paid or incurred by that corporation during the taxable year to construct and equip new facilities or expand existing facilities used in this state for qualified research, as defined in section 41 of the Internal Revenue Code, except that "qualified research expenses" includes only expenses paid or incurred by the claimant for research related to the design and manufacturing of equipment that captures solar energy, wind energy, or gas from livestock manure and other agricultural waste and converts such energy or gas into electricity. Eligible amounts include only amounts paid or incurred for tangible, depreciable property but do not include amounts paid or incurred for replacement property.

AB378,26,25 b. The maximum amount of the credits that may be claimed by all claimants under subd. 4. a. is $250,000. No claimant may claim a credit under subd. 4. a. unless the claimant files an application for the credit with the department, in the manner prescribed by the department, and the department approves the credit. The department shall adjust the amount of the credits claimed by each claimant so that the total amount of all credits claimed does not exceed the maximum amount established under this subd. 4. b.

AB378, s. 34 Section 34. 71.47 (5i) of the statutes is created to read:

AB378,27,3 71.47 (5i) Clean fuel fueling station credit. (a) Definitions. In this subsection:

AB378,27,4 1. "Biodiesel fuel" has the meaning given in s. 168.14 (2m) (a).

AB378,27,6 2. "Claimant" means a retail dealer, as defined in s. 78.005 (13m), who files a claim under this subsection.

AB378,27,7 3. "Clean fuel" means any fuel that consists of:

AB378,27,9 a. At least 85 percent ethanol, natural gas, compressed natural gas, liquified natural gas, liquified petroleum gas, or hydrogen.

AB378,27,11 b. A mixture of diesel fuel and biodiesel fuel containing at least 20 percent biodiesel fuel.

AB378,27,16 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2007, and before January 1, 2018, a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of the tax, an amount that is equal to the amount that the claimant paid in the taxable year to install or convert equipment that dispenses clean fuel.

AB378,27,19 (c) Limitations. 1. The maximum amount that a claimant may claim under this subsection is an amount equal to $5,000 for each retail fueling station for which the claimant paid expenses as described under par. (b).

AB378,28,2 2. The maximum amount of the credits that may be claimed by all claimants under this subsection in each taxable year is $1,000,000. No claimant may claim a credit under this subsection unless the claimant files an application for the credit with the department, in the manner prescribed by the department, and the department approves the credit. The department shall adjust the amount of the credits claimed by each claimant so that the total amount of all credits claimed does not exceed the maximum amount established under this subdivision.

AB378,28,10 3. 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 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.

AB378,28,12 (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.

AB378, s. 35 Section 35. 71.47 (5k) of the statutes is created to read:

AB378,28,15 71.47 (5k) Energy efficient home construction credit. (a) Definitions. In this subsection:

AB378,28,16 1. "Claimant" means a person who files a claim under this subsection.

AB378,28,17 2. "Contractor" has the meaning given in s. 77.51 (2).

AB378,28,20 3. "Energy efficient home" means a home that satisfies the energy savings requirements under section 45L (c) of the Internal Revenue Code, regardless of whether the home is certified under section 45L (d) of the Internal Revenue Code.

AB378,29,2 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2007, a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of the tax, the amount that the claimant paid in the taxable year for building materials used to construct an energy efficient home in this state, if the claimant is a contractor or a producer of manufactured homes.

AB378,29,5 (c) Limitations. 1. The maximum amount that a claimant may claim under this subsection in a taxable year is an amount equal to $2,000 for each energy efficient home constructed by the claimant in the taxable year.

AB378,29,13 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 amounts 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.

AB378,29,15 (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.

AB378, s. 36 Section 36. 71.49 (1) (dk) of the statutes is created to read:

AB378,29,17 71.49 (1) (dk) Alternative energy sources credit under s. 71.47 (3x).

AB378, s. 37 Section 37. 71.49 (1) (ds) of the statutes is created to read:

AB378,29,19 71.49 (1) (ds) Clean fuel fueling station credit under s. 71.47 (5i).

AB378, s. 38 Section 38. 71.49 (1) (dsb) of the statutes is created to read:

AB378,29,21 71.49 (1) (dsb) Energy efficient home construction credit under s. 71.47 (5k).

AB378, s. 39 Section 39. 71.49 (1) (dsc) of the statutes is created to read:

AB378,29,23 71.49 (1) (dsc) Energy efficient commercial building credit under s. 71.47 (3y).

AB378, s. 40 Section 40. 77.92 (4) of the statutes is amended to read:

AB378,30,16 77.92 (4) "Net business income," with respect to a partnership, means taxable income as calculated under section 703 of the Internal Revenue Code; plus the items of income and gain under section 702 of the Internal Revenue Code, including taxable state and municipal bond interest and excluding nontaxable interest income or dividend income from federal government obligations; minus the items of loss and deduction under section 702 of the Internal Revenue Code, except items that are not deductible under s. 71.21; plus guaranteed payments to partners under section 707 (c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3s), (3n), (3t), (3w), (3x), (3y), (5b), (5e), (5f), (5g), and (5h), (5i), and (5k); and plus or minus, as appropriate, transitional adjustments, depreciation differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain, loss, and deductions from farming. "Net business income," with respect to a natural person, estate, or trust, means profit from a trade or business for federal income tax purposes and includes net income derived as an employee as defined in section 3121 (d) (3) of the Internal Revenue Code.

AB378, s. 41 Section 41. 78.01 (1) of the statutes is amended to read:

AB378,31,10 78.01 (1) Imposition of tax and by whom paid. An excise tax at the rate determined under ss. 78.015 and 78.017 is imposed on all motor vehicle fuel received by a supplier for sale in this state, for sale for export to this state or for export to this state except as otherwise provided in this chapter. The motor vehicle fuel tax is to be computed and paid as provided in this chapter. Except as otherwise provided in this chapter, a person who receives motor vehicle fuel under s. 78.07 shall collect from the purchaser of the motor vehicle fuel that is received, and the purchaser shall pay to the person who receives the motor vehicle fuel under s. 78.07, the tax imposed by this section on each sale of motor vehicle fuel at the time of the sale, irrespective of whether the sale is for cash or on credit. In each subsequent sale or distribution of motor vehicle fuel on which the tax has been collected as provided in this subsection, the tax collected shall be added to the selling price so that the tax is paid ultimately by the user of the motor vehicle fuel. The ethanol contained in motor vehicle fuel is not subject to the tax imposed under this subsection, if the motor vehicle fuel consists of at least 85 percent ethanol. The biomass or other renewable resource contained in biodiesel fuel, as defined in s. 168.14 (2m) (a), is not subject to the tax imposed under this subsection, if the biodiesel fuel consists of at least 20 percent biomass or other renewable resource.

AB378, s. 42 Section 42. 560.205 (1) (g) of the statutes is amended to read:

AB378,31,17 560.205 (1) (g) It is not engaged in real estate development, insurance, banking, lending, lobbying, political consulting, professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants, wholesale or retail trade, leisure, hospitality, transportation, or construction, except construction of power production plants that derive energy from a renewable resource, as defined in s. 196.378 (1) (h).

AB378, s. 43 Section 43. Effective dates. This act takes effect on the day after publication, except as follows:

AB378,31,21 (1) The treatment of section 78.01 (1) of the statutes takes effect on the first day of the 3rd month beginning after publication.

AB378,31,22 (End)