Amendment ASA1-AB794

MES&JK:nwn:rs

2009 - 2010 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO 2009 ASSEMBLY BILL 794

March 29, 2010 - Offered by Representatives Friske and Clark.

AB794-ASA1,1,5 An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a) 4., 71.34 (1k) (g), 71.45 (2) (a) 10. and 77.92 (4); and to create 71.07 (6f), 71.10 (4) (cf), 71.28 (6f), 71.30 (3) (af), 71.47 (6f) and 71.49 (1) (af) of the statutes; relating to: creating a nonrefundable individual and corporate income and franchise tax credit for purchasing a thermal biomass heating system.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB794-ASA1, s. 1 Section 1. 71.05 (6) (a) 15. of the statutes, as affected by 2009 Wisconsin Acts 2 and 28, is amended to read:

AB794-ASA1,2,2 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k), (6f), and (8r) 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 (1k) (g).

AB794-ASA1, s. 2 Section 2. 71.07 (6f) of the statutes is created to read:

AB794-ASA1,2,5 71.07 (6f) Thermal biomass heating systems credit. (a) Definitions. In this subsection:

AB794-ASA1,2,7 1. "Air quality standards" means all requirements under ch. 285 and 42 USC 7401 to 7671q.

AB794-ASA1,2,8 2. "Biomass" has the meaning given in s. 196.378 (1) (ar).

AB794-ASA1,2,9 3. "Claimant" means a person who files a claim under this subsection.

AB794-ASA1,2,17 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, one of the following amounts that the claimant paid in the taxable year to purchase and install in the claimant's primary residence in this state or in the claimant's place of business in this state a stove, furnace, or boiler that generates heat from biomass by providing an energy efficiency conversion of at least 75 percent and meets any air quality standards that apply to the stove, furnace, or boiler on the day on which the stove, furnace, or boiler is purchased:

AB794-ASA1,2,18 1. For items that are installed in the claimant's primary residence in this state:

AB794-ASA1,2,21 a. For taxable years beginning after December 31, 2010, and before January 1, 2013, with regard to the amounts paid to purchase and install a furnace or boiler, either 30 percent of such amounts or $3,600, whichever is less.

AB794-ASA1,2,24 b. For taxable years beginning after December 31, 2010, and before January 1, 2013, with regard to the amounts paid to purchase and install a stove, either 50 percent of such amounts or $2,500, whichever is less.

AB794-ASA1,3,3 c. For taxable years beginning after December 31, 2012, and before January 1, 2015, with regard to the amounts paid to purchase and install a furnace or boiler, either 25 percent of such amounts or $3,000, whichever is less.

AB794-ASA1,3,6 d. For taxable years beginning after December 31, 2012, and before January 1, 2015, with regard to the amounts paid to purchase and install a stove, either 40 percent of such amounts or $2,000, whichever is less.

AB794-ASA1,3,9 e. For taxable years beginning after December 31, 2014, and before January 1, 2017, with regard to the amounts paid to purchase and install a furnace or boiler, either 20 percent of such amounts or $2,400, whichever is less.

AB794-ASA1,3,12 f. For taxable years beginning after December 31, 2014, and before January 1, 2017, with regard to the amounts paid to purchase and install a stove, either 30 percent of such amounts or $1,500, whichever is less.

AB794-ASA1,3,14 2. For items that are installed on property that is assessed as commercial property under s. 70.32 (2) (a) 2.:

AB794-ASA1,3,17 a. For taxable years beginning after December 31, 2010, and before January 1, 2013, with regard to the amounts paid to purchase and install a furnace or boiler, either 30 percent of such amounts or $4,500, whichever is less.

AB794-ASA1,3,20 b. For taxable years beginning after December 31, 2010, and before January 1, 2013, with regard to the amounts paid to purchase and install a stove, either 50 percent of such amounts or $2,500, whichever is less.

AB794-ASA1,3,23 c. For taxable years beginning after December 31, 2012, and before January 1, 2015, with regard to the amounts paid to purchase and install a furnace or boiler, either 25 percent of such amounts or $3,750, whichever is less.

AB794-ASA1,4,3 d. For taxable years beginning after December 31, 2012, and before January 1, 2015, with regard to the amounts paid to purchase and install a stove, either 40 percent of such amounts or $2,000, whichever is less.

AB794-ASA1,4,6 e. For taxable years beginning after December 31, 2014, and before January 1, 2017, with regard to the amounts paid to purchase and install a furnace or boiler, either 20 percent of such amounts or $3,000, whichever is less.

AB794-ASA1,4,9 f. For taxable years beginning after December 31, 2014, and before January 1, 2017, with regard to the amounts paid to purchase and install a stove, either 30 percent of the such amounts or $1,500, whichever is less.

AB794-ASA1,4,11 3. For items that are installed on property that is assessed as manufacturing property under s. 70.995:

AB794-ASA1,4,14 a. For taxable years beginning after December 31, 2010, and before January 1, 2013, with regard to the amounts paid to purchase and install a furnace or boiler, either 30 percent of such amounts or $45,000, whichever is less.

AB794-ASA1,4,17 b. For taxable years beginning after December 31, 2010, and before January 1, 2013, with regard to the amounts paid to purchase and install a stove, either 50 percent of such amounts or $2,500, whichever is less.

AB794-ASA1,4,20 c. For taxable years beginning after December 31, 2012, and before January 1, 2015, with regard to the amounts paid to purchase and install a furnace or boiler, either 25 percent of such amounts or $37,500, whichever is less.

AB794-ASA1,4,23 d. For taxable years beginning after December 31, 2012, and before January 1, 2015, with regard to the amounts paid to purchase and install a stove, either 40 percent of such amounts or $2,000, whichever is less.

AB794-ASA1,5,3 e. For taxable years beginning after December 31, 2014, and before January 1, 2017, with regard to the amounts paid to purchase and install a furnace or boiler, either 20 percent of such amounts or $30,000, whichever is less.

AB794-ASA1,5,6 f. For taxable years beginning after December 31, 2014, and before January 1, 2017, with regard to the amounts paid to purchase and install a stove, either 30 percent of such amounts or $1,500, whichever is less.

AB794-ASA1,5,9 (c) Limitations. 1. No credit may be claimed under this subsection by a part-year resident or a nonresident of this state for amounts paid to install a furnace, boiler, or stove in the claimant's primary residence in this state.

AB794-ASA1,5,17 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.

AB794-ASA1,5,22 3. a. The maximum amount of the credits that may be claimed under this subsection for items installed in primary residences is $2,000,000 in 2011, $5,000,000 in 2012, $6,000,000 in 2013, $7,000,000 in 2014, $7,000,000 in 2015, and $6,000,000 in 2016, except that the department may allocate the amount of any unused credits from one year to another year.

AB794-ASA1,6,3 b. The maximum amount of the credits that may be claimed under this subsection and ss. 71.28 (6f) and 71.47 (6f) for items installed on commercial or manufacturing property is $1,000,000 in 2011, $2,000,000 in 2012, $3,000,000 in 2013, $4,000,000 in 2014, $4,000,000 in 2015, and $3,000,000 in 2016, except that the department may allocate the amount of any unused credits from one year to another year.

AB794-ASA1,6,6 4. The department may prorate the amount of the credits claimed under this subsection and ss. 71.28 (6f) and 71.47 (6f) so that the limitations under subd. 3. are not exceeded.

AB794-ASA1,6,8 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB794-ASA1,6,14 2. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 3 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.

AB794-ASA1,6,16 (e) Sunset. No new claim may be filed under this subsection for taxable years beginning after December 31, 2016.

AB794-ASA1, s. 3 Section 3. 71.10 (4) (cf) of the statutes is created to read:

AB794-ASA1,6,18 71.10 (4) (cf) The thermal biomass heating systems credit under s. 71.07 (6f).

AB794-ASA1, s. 4 Section 4. 71.21 (4) of the statutes, as affected by 2009 Wisconsin Acts 2 and 28, is amended to read:

AB794-ASA1,6,24 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (6f), and (8r) and passed through to partners shall be added to the partnership's income.

AB794-ASA1, s. 5 Section 5. 71.26 (2) (a) 4. of the statutes, as affected by 2009 Wisconsin Acts 2 and 28, is amended to read:

AB794-ASA1,7,8 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (6f), and (8r) 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 (1k) (g).

AB794-ASA1, s. 6 Section 6. 71.28 (6f) of the statutes is created to read:

AB794-ASA1,7,11 71.28 (6f) Thermal biomass heating systems credit. (a) Definitions. In this subsection:

AB794-ASA1,7,13 1. "Air quality standards" means all requirements under ch. 285 and 42 USC 7401 to 7671q.

AB794-ASA1,7,14 2. "Biomass" has the meaning given in s. 196.378 (1) (ar).

AB794-ASA1,7,15 3. "Claimant" means a person who files a claim under this subsection.

AB794-ASA1,7,23 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.23, up to the amount of those taxes, one of the following amounts that the claimant paid in the taxable year to purchase and install in the claimant's place of business in this state a stove, furnace, or boiler that generates heat from biomass by providing an energy efficiency conversion of at least 75 percent and meets any air quality standards that apply to the stove, furnace, or boiler on the day on which the stove, furnace, or boiler is purchased:

AB794-ASA1,7,25 1. For items that are installed on property that is assessed as commercial property under s. 70.32 (2) (a) 2.:

AB794-ASA1,8,3 a. For taxable years beginning after December 31, 2010, and before January 1, 2013, with regard to the amounts paid to purchase and install a furnace or boiler, either 30 percent of such amounts or $4,500, whichever is less.

AB794-ASA1,8,6 b. For taxable years beginning after December 31, 2010, and before January 1, 2013, with regard to the amounts paid to purchase and install a stove, either 50 percent of such amounts or $2,500, whichever is less.

AB794-ASA1,8,9 c. For taxable years beginning after December 31, 2012, and before January 1, 2015, with regard to the amounts paid to purchase and install a furnace or boiler, either 25 percent of such amounts or $3,750, whichever is less.

AB794-ASA1,8,12 d. For taxable years beginning after December 31, 2012, and before January 1, 2015, with regard to the amounts paid to purchase and install a stove, either 40 percent of such amounts or $2,000, whichever is less.

AB794-ASA1,8,15 e. For taxable years beginning after December 31, 2014, and before January 1, 2017, with regard to the amounts paid to purchase and install a furnace or boiler, either 20 percent of such amounts or $3,000, whichever is less.

AB794-ASA1,8,18 f. For taxable years beginning after December 31, 2014, and before January 1, 2017, with regard to the amounts paid to purchase and install a stove, either 30 percent of the such amounts or $1,500, whichever is less.

AB794-ASA1,8,20 2. For items that are installed on property that is assessed as manufacturing property under s. 70.995:

AB794-ASA1,8,23 a. For taxable years beginning after December 31, 2010, and before January 1, 2013, with regard to the amounts paid to purchase and install a furnace or boiler, either 30 percent of such amounts or $45,000, whichever is less.

AB794-ASA1,9,3 b. For taxable years beginning after December 31, 2010, and before January 1, 2013, with regard to the amounts paid to purchase and install a stove, either 50 percent of such amounts or $2,500, whichever is less.

AB794-ASA1,9,6 c. For taxable years beginning after December 31, 2012, and before January 1, 2015, with regard to the amounts paid to purchase and install a furnace or boiler, either 25 percent of such amounts or $37,500, whichever is less.

AB794-ASA1,9,9 d. For taxable years beginning after December 31, 2012, and before January 1, 2015, with regard to the amounts paid to purchase and install a stove, either 40 percent of such amounts or $2,000, whichever is less.

AB794-ASA1,9,12 e. For taxable years beginning after December 31, 2014, and before January 1, 2017, with regard to the amounts paid to purchase and install a furnace or boiler, either 20 percent of such amounts or $30,000, whichever is less.

AB794-ASA1,9,15 f. For taxable years beginning after December 31, 2014, and before January 1, 2017, with regard to the amounts paid to purchase and install a stove, either 30 percent of such amounts or $1,500, whichever is less.

AB794-ASA1,9,23 (c) Limitations. 1. 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.

AB794-ASA1,9,26 2. The maximum amount of the credits that may be claimed under this subsection and ss. 71.07 (6f) and 71.47 (6f) for items installed on commercial or manufacturing property is $1,000,000 in 2011, $2,000,000 in 2012, $3,000,000 in 2013, $4,000,000 in 2014, $4,000,000 in 2015, and $3,000,000 in 2016, except that the department may allocate the amount of any unused credits from one year to another year.

AB794-ASA1,10,7 3. The department may prorate the amount of the credits claimed under this subsection and ss. 71.07 (6f) and 71.47 (6f) so that the limitations under subd. 2. are not exceeded.

AB794-ASA1,10,9 (d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB794-ASA1,10,15 2. If a credit computed under this subsection is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 3 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.

AB794-ASA1,10,17 (e) Sunset. No new claim may be filed under this subsection for taxable years beginning after December 31, 2016.

AB794-ASA1, s. 7 Section 7. 71.30 (3) (af) of the statutes is created to read:

AB794-ASA1,10,19 71.30 (3) (af) The thermal biomass heating systems credit under s. 71.28 (6f).

AB794-ASA1, s. 8 Section 8. 71.34 (1k) (g) of the statutes, as affected by 2009 Wisconsin Acts 2 and 28, is amended to read:

AB794-ASA1,10,25 71.34 (1k) (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), (1dy), (3), (3g), (3h), (3n), (3p), (3q), (3r), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (6f), and (8r) and passed through to shareholders.

AB794-ASA1, s. 9 Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2009 Wisconsin Acts 2 and 28, is amended to read:

AB794-ASA1,11,9 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (6f), and (8r) 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 (1k) (g) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).