SB637: Bill Text

2025 - 2026 LEGISLATURE

LRB-5117/1

JK:klm&skw

2025 SENATE BILL 637

November 14, 2025 - Introduced by Senator Feyen, cosponsored by Representatives Sortwell, Armstrong, Behnke, Kreibich, Murphy and O'Connor. Referred to Committee on Agriculture and Revenue.

SB637,1,5 An Act to amend 71.05 (6) (a) 15., 71.21 (4) (a), 71.26 (2) (a) 4., 71.34 (1k) (g) and 71.45 (2) (a) 10.; to create 71.07 (12), 71.10 (4) (fo), 71.28 (12), 71.30 (3) (do), 71.47 (12), 71.49 (1) (do), 77.54 (76) and 238.401 of the statutes; relating to: a sales and use tax exemption and an income and franchise tax credit for nuclear energy facilities.

Analysis by the Legislative Reference Bureau

This bill creates a sales and use tax exemption for tangible personal property sold to a construction contractor that, in fulfillment of a real property construction activity, becomes a component of a nuclear energy facility in this state. The bill defines a “nuclear energy facility” as electric generating equipment and associated facilities that derive electricity from nuclear power. Under the bill, no person may claim the exemption unless certified by the Wisconsin Economic Development Corporation. A certification is valid for five years unless the nuclear energy facility receives an operating reactor license from the federal Nuclear Regulatory Commission, in which case the certification expires on the date of NRC licensure.

The bill also allows an electric public utility, electric cooperative, municipal electric company, or qualified wholesale electric company to claim an income and franchise tax credit equal to the wages paid to full-time employees of a nuclear energy facility in this state and capital expenditures paid for the construction, improvement, renovation, repair, maintenance, development, or operation of a nuclear energy facility in this state, including expenditures paid to contractors and subcontractors, but not including expenditures for acquiring land.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the 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:

SB637,1 Section 1. 71.05 (6) (a) 15. of the statutes, as affected by 2025 Wisconsin Act 15, is amended to read:

SB637,2,8 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5f), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10), and (12) 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).

SB637,2 Section 2. 71.07 (12) of the statutes is created to read:

SB637,2,11 71.07 (12) Nuclear energy facility credit. (a) Definitions. In this subsection:

SB637,2,13 1. “Claimant” means a person that files a claim under this subsection and that is one of the following:

SB637,2,14 a. An electric public utility, as defined in 196.192 (1) (a).

SB637,2,15 b. An electric cooperative organized under ch. 185.

SB637,2,16 c. A municipal electric company, as defined in 66.0825 (3) (d).

SB637,2,17 d. A qualified wholesale electric company, as defined in s. 76.28 (1) (gm).

SB637,3,6 2. “Full-time job” means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay that is equal to at least 150 percent of the federal minimum wage and benefits that are not required by federal or state law. “Full-time job” does not include initial training before an employment position begins.

SB637,3,7 3. “Nuclear energy facility” has the meaning given in s. 238.401 (1).

SB637,3,10 (b) Filing claims. For taxable years beginning after December 31, 2027, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of the tax, an amount equal to the following:

SB637,3,12 1. The wages paid by the claimant in the taxable year to the employees who work full-time jobs at the claimant’s nuclear energy facility in this state.

SB637,3,17 2. The capital expenditures paid by the claimant in the taxable year for the the construction, improvement, renovation, repair, maintenance, development, or operation of the claimant’s nuclear energy facility in this state, including expenditures paid to contractors and subcontractors, but not including expenditures for acquiring land.

SB637,4,2 (c) Limitations. 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 the amounts paid by their nuclear energy facilities under par. (b) 1. and 2. 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.

SB637,4,4 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credits under this subsection.

SB637,4,12 (e) Transfer. Any person may sell or otherwise transfer the credit under par. (b), in whole or in part, to another person who is subject to the taxes imposed under s. 71.02, 71.23, or 71.43 if the person notifies the department of the transfer and submits with the notification a copy of the transfer documents and the department certifies ownership of the credit with each transfer. The transferee may first use the credit to offset tax in the taxable year of the transferor in which the transfer occurs and may use the credit only to offset tax in taxable years in which the credit is otherwise allowed to be claimed and carried forward by the original claimant.

SB637,3 Section 3. 71.10 (4) (fo) of the statutes is created to read:

SB637,4,14 71.10 (4) (fo) Nuclear energy facility credit under s. 71.07 (12).

SB637,4 Section 4. 71.21 (4) (a) of the statutes, as affected by 2025 Wisconsin Act 15, is amended to read:

SB637,4,20 71.21 (4) (a) The amount of the credits computed by a partnership under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10), and (12) and passed through to partners shall be added to the partnership’s income.

SB637,5 Section 5. 71.26 (2) (a) 4. of the statutes, as affected by 2025 Wisconsin Act 15, is amended to read:

SB637,5,4 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm), (1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10), and (12) 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).

SB637,6 Section 6. 71.28 (12) of the statutes is created to read:

SB637,5,7 71.28 (12) Nuclear energy facility credit. (a) Definitions. In this subsection:

SB637,5,9 1. “Claimant” means a person that files a claim under this subsection and that is one of the following:

SB637,5,10 a. An electric public utility, as defined in 196.192 (1) (a).

SB637,5,11 b. An electric cooperative organized under ch. 185.

SB637,5,12 c. A municipal electric company, as defined in 66.0825 (3) (d).

SB637,5,13 d. A qualified wholesale electric company, as defined in s. 76.28 (1) (gm).

SB637,5,19 2. “Full-time job” means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay that is equal to at least 150 percent of the federal minimum wage and benefits that are not required by federal or state law. “Full-time job” does not include initial training before an employment position begins.

SB637,5,20 3. “Nuclear energy facility” has the meaning given in s. 238.401 (1).

SB637,5,23 (b) Filing claims. For taxable years beginning after December 31, 2027, a claimant may claim as a credit against the tax imposed under s. 71.23, up to the amount of the tax, an amount equal to the following:

SB637,6,2 1. The wages paid by the claimant in the taxable year to the employees who work full-time jobs at the claimant’s nuclear energy facility in this state.

SB637,6,7 2. The capital expenditures paid by the claimant in the taxable year for the the construction, improvement, renovation, repair, maintenance, development, or operation of the claimant’s nuclear energy facility in this state, including expenditures paid to contractors and subcontractors, but not including expenditures for acquiring land.

SB637,6,15 (c) Limitations. 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 the amounts paid by their nuclear energy facilities under par. (b) 1. and 2. 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.

SB637,6,17 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credits under this subsection.

SB637,7,2 (e) Transfer. Any person may sell or otherwise transfer the credit under par. (b), in whole or in part, to another person who is subject to the taxes imposed under s. 71.02, 71.23, or 71.43 if the person notifies the department of the transfer and submits with the notification a copy of the transfer documents and the department certifies ownership of the credit with each transfer. The transferee may first use the credit to offset tax in the taxable year of the transferor in which the transfer occurs and may use the credit only to offset tax in taxable years in which the credit is otherwise allowed to be claimed and carried forward by the original claimant.

SB637,7 Section 7. 71.30 (3) (do) of the statutes is created to read:

SB637,7,4 71.30 (3) (do) Nuclear energy facility credit under s. 71.28 (12).

SB637,8 Section 8. 71.34 (1k) (g) of the statutes, as affected by 2025 Wisconsin Act 15, is amended to read:

SB637,7,10 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (4), (5), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10), and (12) and passed through to shareholders.

SB637,9 Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2025 Wisconsin Act 15, is amended to read: