Amendment ASA1-AB371

AB371-ASA1,4,25 (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.

AB371-ASA1,5,5 (e) Sunset. No credit may be claimed under this subsection for taxable years beginning after December 31, 2009, except the the joint committee on finance may, by a two-thirds vote of the members present and voting, extend the credit under this subsection so that credits may be claimed for taxable years beginning after December 31, 2009, and before January 1, 2011.

AB371-ASA1, s. 3 Section 3. 71.10 (4) (cn) of the statutes is created to read:

AB371-ASA1,5,7 71.10 (4) (cn) Flexible fuel and electric motor vehicles credit under s. 71.07 (5j).

AB371-ASA1, s. 4 Section 4. 71.21 (4) of the statutes is amended to read:

AB371-ASA1,5,11 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), (5b), (5e), (5f), (5g), and (5h), and (5j) and passed through to partners shall be added to the partnership's income.

AB371-ASA1, s. 5 Section 5. 71.26 (2) (a) of the statutes is amended to read:

AB371-ASA1,6,5 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), (5b), (5e), (5f), (5g), and (5h), and (5j) 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).

AB371-ASA1, s. 6 Section 6. 71.28 (5j) of the statutes is created to read:

AB371-ASA1,6,8 71.28 (5j) Flexible fuel and electric motor vehicles credit. (a) Definitions. In this subsection:

AB371-ASA1,6,9 1. "Biodiesel fuel" has the meaning given in s. 168.14 (2m) (a).

AB371-ASA1,6,10 2. "Claimant" means a person who files a claim under this subsection.

AB371-ASA1,6,13 3. "Eligible vehicle" means any of the following, as determined by the department of transportation under s. 110.23, that is assembled in this state and sold or leased to the claimant as a new motor vehicle licensed for highway use:

AB371-ASA1,6,15 a. A motor vehicle that is capable of using both gasoline and a mixture of gasoline and at least 85 percent ethanol as a fuel to propel the motor vehicle.

AB371-ASA1,6,16 b. A hybrid-electric vehicle, as defined in s. 16.045 (1) (e).

AB371-ASA1,6,18 c. A vehicle that satisfies the requirements of the neighborhood electric vehicle test program conducted by the federal department of energy.

AB371-ASA1,6,19 d. A plug-in hybrid-electric vehicle.

AB371-ASA1,6,21 e. A motor vehicle that is capable of using biodiesel fuel as a fuel to propel the motor vehicle.

AB371-ASA1,6,24 (b) Filing claims. Subject to the limitations provided under this subsection, a claimant may claim as a credit against the taxes imposed under s. 71.23, up to the amount of the tax:

AB371-ASA1,7,2 1. One of the following amounts, if, in the taxable year, the claimant purchased or leased an eligible vehicle:

AB371-ASA1,7,4 a. If the purchase price of the eligible vehicle is $18,000 or more, $500 for a purchased eligible vehicle and $100 for a leased eligible vehicle.

AB371-ASA1,7,6 b. If the purchase price of the eligible vehicle is at least $17,000, but less than $18,000, $450 for a purchased eligible vehicle and $90 for a leased eligible vehicle.

AB371-ASA1,7,8 c. If the purchase price of the eligible vehicle is at least $16,000, but less than $17,000, $400 for a purchased eligible vehicle and $80 for a leased eligible vehicle.

AB371-ASA1,7,10 d. If the purchase price of the eligible vehicle is at least $15,000, but less than $16,000, $350 for a purchased eligible vehicle and $70 for a leased eligible vehicle.

AB371-ASA1,7,12 e. If the purchase price of the eligible vehicle is at least $14,000, but less than $15,000, $300 for a purchased eligible vehicle and $60 for a leased eligible vehicle.

AB371-ASA1,7,14 f. If the purchase price of the eligible vehicle is at least $13,000, but less than $14,000, $250 for a purchased eligible vehicle and $50 for a leased eligible vehicle.

AB371-ASA1,7,16 g. If the purchase price of the eligible vehicle is at least $12,000, but less than $13,000, $200 for a purchased eligible vehicle and $40 for a leased eligible vehicle.

AB371-ASA1,7,18 h. If the purchase price of the eligible vehicle is at least $11,000, but less than $12,000, $150 for a purchased eligible vehicle and $30 for a leased eligible vehicle.

AB371-ASA1,7,20 i. If the purchase price of the eligible vehicle is at least $10,000, but less than $11,000, $100 for a purchased eligible vehicle and $20 for a leased eligible vehicle.

AB371-ASA1,7,23 2. Fifty dollars, if the claimant purchased in the taxable year an engine modification kit to convert a motor vehicle that the claimant owns into an eligible vehicle.

AB371-ASA1,8,4 (c) Limitations. 1. For purposes of determining the amount of the credit under par. (b) 1. for a leased eligible vehicle, the purchase price is the purchase price of the eligible vehicle on the first day of the lease period. A claimant who claims a credit under par. (b) 1. for a leased eligible vehicle may claim the credit for each year of the lease period that corresponds with a taxable year for which the claimant may claim a credit under this subsection.

AB371-ASA1,8,7 2. The credit under par. (b) 1. may be claimed only by the first person who takes title of the eligible vehicle, other than for resale, or, in the case of a leased vehicle, the first person who leases the vehicle.

AB371-ASA1,8,11 3. No credit may be claimed under par. (b) 2. unless the claimant submits with the claimant's return any document prescribed by the department that verifies that the engine modification kit described in par. (b) 2. was installed in the claimant's motor vehicle by a certified technician.

AB371-ASA1,8,19 4. No claimant may claim the credit under this subsection for vehicles described under par. (a) 3. a. and e. unless the claimant submits with the claimant's return any documentation prescribed by the department that indicates that the claimant paid at least $500 on the purchase of biodiesel fuel or motor vehicle fuel sold as 85 percent ethanol during the period beginning on the date that the claimant purchased the motor vehicle or on the first day of the lease period and ending on December 31 of the calendar year following the calendar year in which the claimant purchased or began leasing the motor vehicle.

AB371-ASA1,9,2 5. 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 described 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.

AB371-ASA1,9,4 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB371-ASA1,9,9 (e) Sunset. No credit may be claimed under this subsection for taxable years beginning after December 31, 2009, except the the joint committee on finance may, by a two-thirds vote of the members present and voting, extend the credit under this subsection so that credits may be claimed for taxable years beginning after December 31, 2009, and before January 1, 2011.

AB371-ASA1, s. 7 Section 7. 71.30 (3) (dq) of the statutes is created to read:

AB371-ASA1,9,11 71.30 (3) (dq) Flexible fuel and electric motor vehicles credit under s. 71.28 (5j).

AB371-ASA1, s. 8 Section 8. 71.34 (1) (g) of the statutes is amended to read:

AB371-ASA1,9,16 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), (5b), (5e), (5f), (5g), and (5h) , and (5j) and passed through to shareholders.

AB371-ASA1, s. 9 Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:

AB371-ASA1,9,23 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), (5b), (5e), (5f), (5g), and (5h), and (5j) 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).

AB371-ASA1, s. 10 Section 10. 71.47 (5j) of the statutes is created to read:

AB371-ASA1,10,2 71.47 (5j) Flexible fuel and electric motor vehicles credit. (a) Definitions. In this subsection:

AB371-ASA1,10,3 1. "Biodiesel fuel" has the meaning given in s. 168.14 (2m) (a).

AB371-ASA1,10,4 2. "Claimant" means a person who files a claim under this subsection.

AB371-ASA1,10,7 3. "Eligible vehicle" means any of the following, as determined by the department of transportation under s. 110.23, that is assembled in this state and sold or leased to the claimant as a new motor vehicle licensed for highway use:

AB371-ASA1,10,9 a. A motor vehicle that is capable of using both gasoline and a mixture of gasoline and at least 85 percent ethanol as a fuel to propel the motor vehicle.

AB371-ASA1,10,10 b. A hybrid-electric vehicle, as defined in s. 16.045 (1) (e).

AB371-ASA1,10,12 c. A vehicle that satisfies the requirements of the neighborhood electric vehicle test program conducted by the federal department of energy.

AB371-ASA1,10,13 d. A plug-in hybrid-electric vehicle.

AB371-ASA1,10,15 e. A motor vehicle that is capable of using biodiesel fuel as a fuel to propel the motor vehicle.

AB371-ASA1,10,18 (b) Filing claims. Subject to the limitations provided under this subsection, a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of the tax:

AB371-ASA1,10,20 1. One of the following amounts, if, in the taxable year, the claimant purchased or leased an eligible vehicle:

AB371-ASA1,10,22 a. If the purchase price of the eligible vehicle is $18,000 or more, $500 for a purchased eligible vehicle and $100 for a leased eligible vehicle.

AB371-ASA1,10,24 b. If the purchase price of the eligible vehicle is at least $17,000, but less than $18,000, $450 for a purchased eligible vehicle and $90 for a leased eligible vehicle.

AB371-ASA1,11,2 c. If the purchase price of the eligible vehicle is at least $16,000, but less than $17,000, $400 for a purchased eligible vehicle and $80 for a leased eligible vehicle.

AB371-ASA1,11,4 d. If the purchase price of the eligible vehicle is at least $15,000, but less than $16,000, $350 for a purchased eligible vehicle and $70 for a leased eligible vehicle.

AB371-ASA1,11,6 e. If the purchase price of the eligible vehicle is at least $14,000, but less than $15,000, $300 for a purchased eligible vehicle and $60 for a leased eligible vehicle.

AB371-ASA1,11,8 f. If the purchase price of the eligible vehicle is at least $13,000, but less than $14,000, $250 for a purchased eligible vehicle and $50 for a leased eligible vehicle.

AB371-ASA1,11,10 g. If the purchase price of the eligible vehicle is at least $12,000, but less than $13,000, $200 for a purchased eligible vehicle and $40 for a leased eligible vehicle.

AB371-ASA1,11,12 h. If the purchase price of the eligible vehicle is at least $11,000, but less than $12,000, $150 for a purchased eligible vehicle and $30 for a leased eligible vehicle.

AB371-ASA1,11,14 i. If the purchase price of the eligible vehicle is at least $10,000, but less than $11,000, $100 for a purchased eligible vehicle and $20 for a leased eligible vehicle.

AB371-ASA1,11,17 2. Fifty dollars, if the claimant purchased in the taxable year an engine modification kit to convert a motor vehicle that the claimant owns into an eligible vehicle.

AB371-ASA1,11,23 (c) Limitations. 1. For purposes of determining the amount of the credit under par. (b) 1. for a leased eligible vehicle, the purchase price is the purchase price of the eligible vehicle on the first day of the lease period. A claimant who claims a credit under par. (b) 1. for a leased eligible vehicle may claim the credit for each year of the lease period that corresponds with a taxable year for which the claimant may claim a credit under this subsection.

AB371-ASA1,12,3 2. The credit under par. (b) 1. may be claimed only by the first person who takes title of the eligible vehicle, other than for resale, or, in the case of a leased vehicle, the first person who leases the vehicle.

AB371-ASA1,12,7 3. No credit may be claimed under par. (b) 2. unless the claimant submits with the claimant's return any document prescribed by the department that verifies that the engine modification kit described in par. (b) 2. was installed in the claimant's motor vehicle by a certified technician.

AB371-ASA1,12,15 4. No claimant may claim the credit under this subsection for vehicles described under par. (a) 3. a. and e. unless the claimant submits with the claimant's return any documentation prescribed by the department that indicates that the claimant paid at least $500 on the purchase of biodiesel fuel or motor vehicle fuel sold as 85 percent ethanol during the period beginning on the date that the claimant purchased the motor vehicle or on the first day of the lease period and ending on December 31 of the calendar year following the calendar year in which the claimant purchased or began leasing the motor vehicle.

AB371-ASA1,12,23 5. 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 described 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.

AB371-ASA1,12,25 (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.

AB371-ASA1,13,5 (e) Sunset. No credit may be claimed under this subsection for taxable years beginning after December 31, 2009, except the the joint committee on finance may, by a two-thirds vote of the members present and voting, extend the credit under this subsection so that credits may be claimed for taxable years beginning after December 31, 2009, and before January 1, 2011.

AB371-ASA1, s. 11 Section 11. 71.49 (1) (dq) of the statutes is created to read:

AB371-ASA1,13,7 71.49 (1) (dq) Flexible fuel and electric motor vehicles credit under s. 71.47 (5j).

AB371-ASA1, s. 12 Section 12. 77.92 (4) of the statutes is amended to read:

AB371-ASA1,13,23 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), (5b), (5e), (5f), (5g), and (5h), and (5j); 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.

AB371-ASA1, s. 13 Section 13. 86.195 (1) (ar) of the statutes is amended to read:

AB371-ASA1,14,7 86.195 (1) (ar) "Business sign" means a separately attached sign mounted on the rectangular sign panel to show the brand, symbol, trademark, or name, or combination of these, for a motorist service available on a crossroad at or near an interchange or an intersection and, notwithstanding sub. (6) (b), on or before December 31 of the last taxable year for which a credit may be claimed under ss. 71.07 (5j) (e), 71.28 (5j) (e), and 71.47 (5j) (e), may include the symbol "E85" for a motorist service in the "GAS" category.

AB371-ASA1, s. 14 Section 14. 86.195 (2) (c) of the statutes is renumbered 86.195 (2) (c) 1. and amended to read:

AB371-ASA1,14,16 86.195 (2) (c) 1. A Except as provided in subd. 2., a person who requests the erection or installation of a sign under par. (a) or (b) shall pay to the department an annual permit fee of $40 to cover administrative costs and the cost of inspection of the signs erected or installed under this section. In addition, the person requesting a sign under par. (a) or (b) shall pay a fee for the manufacture, installation and maintenance of the specific information sign and the installation and maintenance of the business sign.

AB371-ASA1, s. 15 Section 15. 86.195 (2) (c) 2. of the statutes is created to read:

AB371-ASA1,15,4 86.195 (2) (c) 2. A person who requests the installation and maintenance of a sign under par. (b) for a motorist service that offers gasoline consisting of at least 85 percent ethanol may include the symbol "E85" on the sign and, if the symbol "E85" is included on the sign, is not required to pay to the department the annual permit fee of $40 under subd. 1. Only a motorist service that offers gasoline consisting of at least 85 percent ethanol in sufficient quantities to generally meet public demand may include the symbol "E85" on its business sign. In determining priority of applicants for installation and maintenance of a sign under par. (b), the department may not consider as a factor that under this subdivision a person requesting the installation and maintenance of a sign is not required to pay the annual permit fee. This subdivision does not apply after December 31 of the last taxable year for which a credit may be claimed under ss. 71.07 (5j) (e), 71.28 (5j) (e), and 71.47 (5j) (e).

AB371-ASA1, s. 16 Section 16. 110.23 of the statutes is created to read:

AB371-ASA1,15,14 110.23 Flexible fuel and electric motor vehicles. No later than January 1 of each year, the department shall prepare and make publicly available a list of motor vehicles, identified by vehicle make and model, that satisfy the criteria for an eligible vehicle specified in ss. 71.07 (5j) (a) 2., 71.28 (5j) (a) 2., and 71.47 (5j) (a) 2. The department may consult with the department of natural resources in preparing this list. After this list is completed each year, the list may not be updated or otherwise modified until its annual update on or about January 1 of the following year. This section does not apply after December 31 of the last taxable year for which a credit may be claimed under ss. 71.07 (5j) (e), 71.28 (5j) (e), and 71.47 (5j) (e).

AB371-ASA1, s. 17 Section 17. Initial applicability.

AB371-ASA1,15,19 (1) The treatment of sections 71.05 (6) (a) 15., 71.07 (5j), 71.10 (4) (cn), 71.21 (4), 71.26 (2) (a), 71.28 (5j), 71.30 (3) (dq), 71.34 (1) (g), 71.45 (2) (a) 10., 71.47 (5j), 71.49 (1) (dq), and 77.92 (4) of the statutes first applies to taxable years beginning on January 1, 2008.

AB371-ASA1,15,20 (End)