AB378: Bill Text

AB378,5,19 71.07 (5i) Clean fuel fueling station credit. (a) Definitions. In this subsection:

AB378,5,20 1. "Biodiesel fuel" has the meaning given in s. 168.14 (2m) (a).

AB378,5,22 2. "Claimant" means a retail dealer, as defined in s. 78.005 (13m), who files a claim under this subsection.

AB378,5,23 3. "Clean fuel" means any fuel that consists of:

AB378,5,25 a. At least 85 percent ethanol, natural gas, compressed natural gas, liquified natural gas, liquified petroleum gas, or hydrogen.

AB378,6,2 b. A mixture of diesel fuel and biodiesel fuel containing at least 20 percent biodiesel fuel.

AB378,6,7 (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. 71.02, 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.

AB378,6,10 (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).

AB378,6,17 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.

AB378,6,25 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.

AB378,7,2 (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. 5 Section 5. 71.07 (5k) of the statutes is created to read:

AB378,7,5 71.07 (5k) Energy efficient home construction credit. (a) Definitions. In this subsection:

AB378,7,6 1. "Claimant" means a person who files a claim under this subsection.

AB378,7,7 2. "Contractor" has the meaning given in s. 77.51 (2).

AB378,7,10 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.

AB378,7,16 (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. 71.02, 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.

AB378,7,19 (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.

AB378,8,2 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 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.

AB378,8,4 (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. 6 Section 6. 71.07 (8r) of the statutes is created to read:

AB378,8,7 71.07 (8r) Energy efficiency home improvement credit. (a) Definitions. In this subsection:

AB378,8,10 1. "Air-source heat pump" means an air-source heat pump with a heating seasonal performance factor rating of at least 9, an energy efficiency rating of at least 13, and a seasonal energy efficiency rating of at least 15.

AB378,8,11 2. "Claimant" means an individual who files a claim under this subsection.

AB378,8,14 3. "Energy efficient" means satisfying the standards established by the 2001 supplement of the 2000 International Energy Conservation Code or the 2004 supplement of the 2003 International Energy Conservation Code.

AB378,8,17 4. "Geothermal heat pump" means a ground-source heat pump unit used for heating and cooling that employs a fluid to transfer heat between the unit and the earth and that has any of the following:

AB378,8,19 a. For a closed loop product, an energy efficiency rating of at least 14.1 and a heating coefficient of performance of at least 3.3.

AB378,8,21 b. For an open loop product, an energy efficiency rating of at least 16.2 and a heating coefficient of performance of at least 3.6.

AB378,8,23 c. For a direct expansion product, an energy efficiency rating of at least 15 and a heating coefficient of performance of at least 3.5.

AB378,9,2 5. "Solar water heating system" means a solar water heating system certified by the solar rating and certification corporation or any successor entity, if at least 50 percent of the energy generated from the system comes from the sun and if the system is not used to heat water for swimming pools or hot tubs.

AB378,9,7 (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 tax imposed under s. 71.02, up to the amount of the credits, all of the following that the claimant paid in the taxable year, if the items specified in subds. 1. to 11. are installed in the claimant's principal residence:

AB378,9,10 1. Ten percent of the amount paid for energy efficient windows, except that the total amount of the claim for all such windows purchased by the claimant in the taxable year may not exceed $500.

AB378,9,13 2. Ten percent of the amount paid for energy efficient skylights, except that the total amount of the claim for all such skylights purchased by the claimant in the taxable year may not exceed $200.

AB378,9,16 3. Ten percent of the amount paid for energy efficient exterior doors, except that the total amount of the claim for all such doors purchased by the claimant in the taxable year may not exceed $500.

AB378,9,19 4. Ten percent of the amount paid for energy star qualified metal roofing material, except that the total amount of the claim for all such material purchased by the claimant in the taxable year may not exceed $500.

AB378,9,23 5. Ten percent of the amount paid for insulation that satisfies the standards established by the 2000 International Energy Conservation Code, and any amendments to the code, except that the total amount of the claim for all such insulation purchased by the claimant in the taxable year may not exceed $500.

AB378,9,24 6. The amount paid for an air-source heat pump, not to exceed $300.

AB378,9,25 7. The amount paid for a geothermal heat pump, not to exceed $1,000.

AB378,10,2 8. The amount paid for a water heater that uses methane to heat water and has an energy factor of at least 0.80, not to exceed $300.

AB378,10,4 9. The amount paid for an electric heat pump water heater that has an energy factor of at 2.0, not to exceed $300.

AB378,10,6 10. The amount paid for an advanced main air circulating fan that operates by using no more than 2 percent of a furnaces total energy use, not to exceed $50.

AB378,10,10 11. Thirty percent of the amount paid for a solar water heating system, not including the cost of any equipment that would otherwise be part of a conventional heating system, except that the total amount of the claim for all such systems purchased by the claimant in the taxable year may not exceed $2,000.

AB378,10,14 12. Ten percent of the amount paid for any dishwasher or clothes washer that satisfies the 2007 energy efficiency guidelines established by the federal environmental protection agency and the federal department of energy under the Energy Star program or for any energy efficient refrigerator.

AB378,10,17 13. Ten percent of the amount paid for a woodburning or cornburning furnace, including any amount paid to install the furnace or to retrofit an existing furnace as a woodburning or cornburning furnace.

AB378,10,19 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

AB378,10,22 2. A credit may be claimed under this subsection by a claimant only for the taxable year in which the items specified in par. (b) are installed in the claimant's principal residence.

AB378,10,24 3. No credit may be claimed under this subsection by a part-year resident or a nonresident of this state.

AB378,11,2 (d) Administration. 1. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

AB378, s. 7 Section 7. 71.10 (4) (dn) of the statutes is created to read:

AB378,11,4 71.10 (4) (dn) Energy efficiency home improvement credit under s. 71.07 (8r).

AB378, s. 8 Section 8. 71.10 (4) (gc) of the statutes is created to read:

AB378,11,6 71.10 (4) (gc) Clean fuel fueling station credit under s. 71.07 (5i).

AB378, s. 9 Section 9. 71.10 (4) (gcb) of the statutes is created to read:

AB378,11,8 71.10 (4) (gcb) Energy efficient home construction credit under s. 71.07 (5k).

AB378, s. 10 Section 10. 71.10 (4) (gcd) of the statutes is created to read:

AB378,11,10 71.10 (4) (gcd) Alternative energy sources credit under s. 71.07 (3x).

AB378, s. 11 Section 11. 71.10 (4) (gce) of the statutes is created to read:

AB378,11,12 71.10 (4) (gce) Energy efficient commercial building credit under s. 71.07 (3y).

AB378, s. 12 Section 12. 71.21 (4) of the statutes is amended to read:

AB378,11,17 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3n), (3s), (3t), (3w), (3x), (3y), (5b), (5e), (5f), (5g), and (5h), (5i), and (5k) and passed through to partners shall be added to the partnership's income.

AB378, s. 13 Section 13. 71.26 (2) (a) of the statutes is amended to read:

AB378,12,11 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), (3n), (3t), (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) 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).

AB378, s. 14 Section 14. 71.28 (3x) of the statutes is created to read:

AB378,12,14 71.28 (3x) Alternative energy sources credit. (a) Definitions. In this subsection:

AB378,12,15 1. "Claimant" means a person who files a claim under this subsection.

AB378,12,17 2. "Used exclusively" means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.

AB378,12,21 (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. 71.23, up to the amount of the tax, an amount equal to any of the following:

AB378,13,2 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.

AB378,13,5 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.

AB378,13,9 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.

AB378,13,16 (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.

AB378,13,24 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.

AB378,14,2 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB378, s. 15 Section 15. 71.28 (3y) of the statutes is created to read:

AB378,14,5 71.28 (3y) Energy efficient commercial building credit. (a) Definition. In this subsection, "claimant" means a person who files a claim under this subsection.

AB378,14,17 (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. 71.23, 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.

AB378,14,20 (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.

AB378,15,3 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.

AB378,15,5 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB378, s. 16 Section 16. 71.28 (4) (ad) 1. of the statutes is amended to read:

AB378,15,21 71.28 (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. 17 Section 17. 71.28 (4) (ad) 4. of the statutes is created to read:

AB378,16,14 71.28 (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.

AB378,16,21 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. 18 Section 18. 71.28 (5) (ad) 1. of the statutes is amended to read:

AB378,17,5 71.28 (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. 19 Section 19. 71.28 (5) (ad) 4. of the statutes is created to read:

AB378,17,18 71.28 (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.

AB378,17,25 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.