LRB-4215/1
ARG&JK:jld&nwn:md
2009 - 2010 LEGISLATURE
February 9, 2010 - Introduced by Senators Plale, Darling, Schultz, A. Lasee and
Sullivan, cosponsored by Representatives Stone, Richards, Vos, Pasch,
Honadel, Fields, Gottlieb, Roys, Huebsch, Turner, Davis, Gunderson,
Montgomery, Roth, Strachota, Zipperer, Townsend, Bies, Steinbrink, Knodl
and Kerkman. Referred to Committee on Health, Health Insurance, Privacy,
Property Tax Relief, and Revenue.
SB521,2,2
1An Act to repeal 20.370 (2) (cf), 20.395 (5) (hq) and (hx), 110.20, 110.21, 110.215,
2285.30, 285.39 (3) (a), 341.09 (5), 341.10 (8), 341.10 (10), 341.63 (1) (e) and
3632.365;
to amend 13.48 (10) (a), 20.395 (5) (cq), 71.28 (4m) (b) (intro.), 71.47
4(4m) (b) (intro.), 77.54 (57) (b) 1., 77.54 (57) (b) 2., 341.03 (1), 341.04 (1) (intro.),
5341.05 (19), 341.09 (2m) (a) 1. b., 341.09 (2m) (a) 2., 341.09 (9), 341.26 (2m) (am),
6341.36 (2), 341.65 (2) (e) 2m., 625.12 (1) (e), 625.12 (2), 625.15 (1) and 628.34 (3)
7(a); and
to create 20.143 (1) (dm), 20.855 (4) (x), 25.40 (2) (b) 27., 70.11 (27m),
870.111 (27), 70.111 (28), 77.54 (57) (a) 5m., 77.54 (58), 110.20 (8) (c) and 560.127
9of the statutes;
relating to: a sales and use tax exemption for extended-range
10electric vehicles; a property tax exemption for tangible personal property used
11to recharge electric vehicles; the motor vehicle emission inspection and
12maintenance program, extended-range electric vehicle grants; an income and
13franchise tax credit for research conducted in this state by a corporation; a
14property and sales and use tax exemption for certain machinery and tangible
1personal property used to conduct research; granting rule-making authority;
2and making appropriations.
Analysis by the Legislative Reference Bureau
Sales tax exemptions
This bill provides a sales and use tax exemption for extended-range electric
vehicles that are licensed for highway use.
Property tax exemptions
This bill exempts from property taxes all tangible personal property used
exclusively to provide electricity to recharge electric vehicles that are licensed for
highway use or neighborhood electric vehicles that are allowed, by ordinance, to
operate on a roadway that has a speed limit of 35 miles per hour or less.
This bill also creates a property tax exemption and a sales and use tax
exemption for machinery and other tangible personal property used for qualified
research by persons engaged primarily in manufacturing, silviculture, or
biotechnology in this state.
Vehicle emission inspections and electric vehicle grant program
Current law requires the Department of Transportation (DOT) to conduct a
motor vehicle emission inspection and maintenance program (I/M program) in
counties in which the air quality does not meet certain federal standards
(nonattainment counties). Under the I/M program, most motor vehicles that are
subject to emission limitations established by the Department of Natural Resources
(DNR) must pass periodic emission inspections and may not be registered by DOT
unless they have passed these inspections. Most nonexempt motor vehicles must
undergo an initial emission inspection in the fourth year after the vehicle's model
year and additional emission inspections every two years thereafter. DOT may
contract with third parties to perform vehicle emission inspections under the I/M
program. The costs of administering the program, including contracting for emission
inspections, are primarily paid by DOT from the transportation fund, although a
small portion of the costs are paid by DNR from the general fund.
This bill terminates the I/M program on July 1, 2011, and prohibits DOT from
entering into any new contract, or renewing or extending any existing contract, for
the operation of the I/M program before that date. The bill also creates
appropriations to transfer money from the transportation fund to the general fund
and to fund, from the general fund, an extended-range electric vehicle grant
program. The bill requires the Department of Commerce (Commerce), after July 1,
2011, to award grants to promote the extended-range electric vehicle industry, and
research, production, and use of extended-range electric vehicles, in the
nonattainment counties. Commerce must promulgate rules to implement and
administer the extended-range electric vehicle grant program.
Super research and development credit
Under current law, for taxable years beginning on or after January 1, 2011, a
corporation may also claim a "super research and development" income and
franchise tax credit equal to the amount of its qualified research expenses in the
taxable year for research conducted in this state that exceeds the amount equal to
the average amount of the corporation's qualified research expenses in the previous
three taxable years multiplied by 1.25. If the credit claimed by a corporation exceeds
the corporation's tax liability, the state will not issue a refund, but the corporation
may carry forward any remaining credit to 15 subsequent taxable years. Under the
bill, a corporation may claim the super research and development credit for taxable
years beginning on or after July 1, 2010.
This bill will be referred to the Joint Survey Committee on Tax Exemptions for
a detailed analysis, which will be printed as an appendix to this bill.
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:
SB521, s. 1
1Section
1. 13.48 (10) (a) of the statutes is amended to read:
SB521,3,132
13.48
(10) (a) No state board, agency, officer, department, commission or body
3corporate may enter into a contract for the construction, reconstruction, remodeling
4of or addition to any building, structure, or facility, in connection with any building
5project which involves a cost in excess of $150,000 without completion of final plans
6and arrangement for supervision of construction and prior approval by the building
7commission. The building commission may not approve a contract for the
8construction, reconstruction, renovation or remodeling of or an addition to a state
9building as defined in s. 44.51 (2) unless it determines that s. 44.57 has been complied
10with or does not apply. This section applies to the department of transportation only
11in respect to buildings, structures and facilities to be used for administrative or
12operating functions
, including buildings, land and equipment to be used for the
13motor vehicle emission inspection and maintenance program under s. 110.20.
SB521, s. 2
1Section
2
. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
SB521, s. 3
3Section
3. 20.143 (1) (dm) of the statutes is created to read:
SB521,4,64
20.143
(1) (dm)
Extended-range electric vehicle grants. As a continuing
5appropriation, the amounts in the schedule for administering the program and
6awarding grants under s. 560.127.
SB521, s. 4
7Section
4. 20.370 (2) (cf) of the statutes is repealed.
SB521, s. 5
8Section
5. 20.395 (5) (cq) of the statutes is amended to read:
SB521,5,39
20.395
(5) (cq)
Vehicle registration,
inspection and maintenance, driver
10licensing, and aircraft registration, state funds. The amounts in the schedule for
11administering the vehicle registration and driver licensing program, including the
12traffic violation and registration program and the driver license reinstatement
13training program under s. 85.28,
for administering the motor vehicle emission
14inspection and maintenance program under s. 110.20, for the training of inspectors
15under s. 110.22, for administering the fuel tax and fee reporting program under s.
1341.45, for administering the aircraft registration program under s. 114.20 and to
2compensate for services performed, as determined by the secretary of transportation,
3by any county providing registration services.
SB521, s. 6
4Section
6. 20.395 (5) (hq) and (hx) of the statutes are repealed.
SB521, s. 7
5Section
7. 20.855 (4) (x) of the statutes is created to read:
SB521,5,86
20.855
(4) (x)
Transfer to general fund; transportation fund. Notwithstanding
7s. 25.40 (3) (a), from the transportation fund, the amounts in the schedule to be
8transferred to the general fund.
SB521, s. 8
9Section
8. 25.40 (2) (b) 27. of the statutes is created to read:
SB521,5,1010
25.40
(2) (b) 27. Section 20.855 (4) (x).
SB521, s. 9
11Section
9. 70.11 (27m) of the statutes is created to read:
SB521,5,1212
70.11
(27m) Research machinery and equipment. (a) In this subsection:
SB521,5,1313
1. "Biotechnology" has the meaning given in s. 77.54 (57) (a) 1f.
SB521,5,1414
2. "Machinery" has the meaning given in sub. (27) (a) 2.
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3. "Manufacturing" has the meaning given in sub. (27) (a) 3.
SB521,5,1616
4. "Primarily" means more than 50 percent.
SB521,5,1817
5. "Qualified research" means qualified research as defined under section
41 18(d) (1) of the Internal Revenue Code.
SB521,5,2119
6. "Silviculture" means theory and practice of controlling regeneration,
20composition, and growth of stands of forest vegetation using knowledge of the life
21history, characteristics, and ecology of forest trees through:
SB521,5,2222
a. Regeneration treatment.
SB521,5,2323
b. Liberation cutting.
SB521,5,2424
c. Thinning.
SB521,5,2525
d. Crown thinning.
SB521,6,1
1e. Improvement cutting.
SB521,6,33
g. Site preparation.
SB521,6,55
7. "Used exclusively" has the meaning given in sub. (27) (a) 8.
SB521,6,96
(b) Machinery and equipment, including attachments, parts, and accessories,
7used by persons who are engaged primarily in manufacturing, silviculture, or
8biotechnology in this state and are used exclusively and directly in qualified
9research.
SB521, s. 10
10Section
10. 70.111 (27) of the statutes is created to read:
SB521,6,1511
70.111
(27) Charging stations. All tangible personal property used exclusively,
12as defined in s. 70.11 (27) (a) 8., to provide electricity to recharge electric vehicles that
13are licensed for highway use or neighborhood electric vehicles, as defined in s. 340.01
14(36r), regardless of the extent to which the tangible personal property is fastened to,
15connected to, or built into real property.
SB521, s. 11
16Section
11. 70.111 (28) of the statutes is created to read:
SB521,6,1717
70.111
(28) Research property. (a) In this subsection:
SB521,6,1818
1. "Biotechnology" has the meaning given in s. 77.54 (57) (a) 1f.
SB521,6,1919
2. "Manufacturing" has the meaning given in s. 70.11 (27) (a) 3.
SB521,6,2020
3. "Primarily" means more than 50 percent.
SB521,6,2221
4. "Qualified research" means qualified research as defined under section
41 22(d) (1) of the Internal Revenue Code.
SB521,6,2323
5. "Silviculture" has the meaning given in s. 70.11 (27m) (a) 6.
SB521,6,2424
6. "Used exclusively" has the meaning given in s. 70.11 (27) (a) 8.
SB521,7,4
1(b) Tangible personal property used by persons who are engaged primarily in
2manufacturing, silviculture, or biotechnology in this state, if the tangible personal
3property is consumed or destroyed or loses its identity while being used exclusively
4and directly in qualified research.
SB521,7,127
71.28
(4m) (b)
Credit. (intro.) Subject to the limitations provided under this
8subsection, for taxable years beginning on or after
January 1, 2011 July 1, 2010, a
9corporation may claim as a credit against the tax imposed under s. 71.23, up to the
10amount of those taxes, an amount equal to the amount of qualified research expenses
11paid or incurred by the corporation in the taxable year that exceeds the amount
12calculated as follows:
SB521,7,2015
71.47
(4m) (b)
Credit. (intro.) Subject to the limitations provided under this
16subsection, for taxable years beginning on or after
January 1, 2011 July 1, 2010, a
17corporation may claim as a credit against the tax imposed under s. 71.43, up to the
18amount of those taxes, an amount equal to the amount of qualified research expenses
19paid or incurred by the corporation in the taxable year that exceeds the amount
20calculated as follows:
SB521, s. 14
21Section
14. 77.54 (57) (a) 5m. of the statutes is created to read:
SB521,7,2222
77.54
(57) (a) 5m. "Silviculture" has the meaning given in s. 70.11 (27m) (a) 6.
SB521,8,4
177.54
(57) (b) 1. Machinery and equipment, including attachments, parts, and
2accessories, that are sold to persons who are engaged primarily in manufacturing
,
3silviculture, or biotechnology in this state and are used exclusively and directly in
4qualified research.