Amendment ASA1-AB85

AB85-ASA1,1,6 An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a), 71.34 (1) (g), 71.45 (2) (a) 10. and 77.92 (4); and to create 71.07 (5i), 71.07 (5j), 71.10 (4) (cn), 71.10 (4) (cs), 71.28 (5j), 71.30 (3) (dq), 71.47 (5j), 71.49 (1) (dq) and 110.23 of the statutes; relating to: creating income and franchise tax credits for motor vehicles that use gasoline and ethanol mixtures as fuel and for the purchase of fuel containing ethanol.

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

AB85-ASA1, s. 1 Section 1. 71.05 (6) (a) 15. of the statutes is amended to read:

AB85-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), (3g), (3n), (3s), (3t), (3w), (5b), (5d), and (5e), (5f), and (5h), (5i) 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, company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).

AB85-ASA1, s. 2 Section 2. 71.07 (5i) of the statutes is created to read:

AB85-ASA1,2,5 71.07 (5i) Eighty-five percent ethanol fuel credit. (a) Definition. In this subsection, "claimant" means an individual who files a claim under this subsection.

AB85-ASA1,2,10 (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2007, and before January 1, 2013, a claimant may claim as a credit against the taxes imposed under s. 71.02, up to the amount of the tax, $100 for each taxable year in which the claimant purchases in this state:

AB85-ASA1,2,12 1. For taxable years beginning after December 31, 2007, and before January 1, 2009, at least 100 gallons of motor vehicle fuel that is sold as 85 percent ethanol.

AB85-ASA1,2,14 2. For taxable years beginning after December 31, 2008, and before January 1, 2010, at least 200 gallons of motor vehicle fuel that is sold as 85 percent ethanol.

AB85-ASA1,2,16 3. For taxable years beginning after December 31, 2009, and before January 1, 2011, at least 300 gallons of motor vehicle fuel that is sold as 85 percent ethanol.

AB85-ASA1,2,18 4. For taxable years beginning after December 31, 2010, and before January 1, 2012, at least 400 gallons of motor vehicle fuel that is sold as 85 percent ethanol.

AB85-ASA1,2,20 5. For taxable years beginning after December 31, 2011, and before January 1, 2013, at least 500 gallons of motor vehicle fuel that is sold as 85 percent ethanol.

AB85-ASA1,3,5 (c) Limitations. For a claimant who is a part-year resident of this state and who is a single person or a married person filing a separate return, multiply the credit for which the claimant is eligible under par. (b) by a fraction, the numerator of which is the individual's Wisconsin adjusted gross income and the denominator of which is the individual's federal adjusted gross income. If a claimant is married and files a joint return, and if the claimant or the claimant's spouse, or both, are part-year residents of this state, multiply the credit for which the claimant is eligible under par. (b) by a fraction, the numerator of which is the couple's joint Wisconsin adjusted gross income and the denominator of which is the couple's joint federal adjusted gross income.

AB85-ASA1,3,7 (d) Administration. Section 71.28 (4) (f) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB85-ASA1, s. 3 Section 3. 71.07 (5j) of the statutes is created to read:

AB85-ASA1,3,10 71.07 (5j) Flexible fuel motor vehicles credit. (a) Definitions. In this subsection, "claimant" means a person who files a claim under this subsection.

AB85-ASA1,3,17 (b) Filing claims. Subject to the limitations provided under this subsection, for taxable years beginning after December 31, 2007, and before January 1, 2013, a claimant may claim as a credit against the taxes imposed under s. 71.02, up to the amount of the tax, one of the following amounts, if, in the taxable year, the claimant purchased or leased a new motor vehicle, licensed for highway use, 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:

AB85-ASA1,3,19 1. If the purchase price of the motor vehicle is $18,000 or more, $600 for a purchased motor vehicle and $120 for a leased motor vehicle.

AB85-ASA1,3,21 2. If the purchase price of the motor vehicle is at least $17,000, but less than $18,000, $550 for a purchased motor vehicle and $110 for a leased motor vehicle.

AB85-ASA1,3,23 3. If the purchase price of the motor vehicle is at least $16,000, but less than $17,000, $500 for a purchased motor vehicle and $100 for a leased motor vehicle.

AB85-ASA1,3,25 4. If the purchase price of the motor vehicle is at least $15,000, but less than $16,000, $450 for a purchased motor vehicle and $90 for a leased motor vehicle.

AB85-ASA1,4,2 5. If the purchase price of the motor vehicle is at least $14,000, but less than $15,000, $400 for a purchased motor vehicle and $80 for a leased motor vehicle.

AB85-ASA1,4,4 6. If the purchase price of the motor vehicle is at least $13,000, but less than $14,000, $350 for a purchased motor vehicle and $70 for a leased motor vehicle.

AB85-ASA1,4,6 7. If the purchase price of the motor vehicle is at least $12,000, but less than $13,000, $300 for a purchased motor vehicle and $60 for a leased motor vehicle.

AB85-ASA1,4,8 8. If the purchase price of the motor vehicle is at least $11,000, but less than $12,000, $250 for a purchased motor vehicle and $50 for a leased motor vehicle.

AB85-ASA1,4,10 9. If the purchase price of the motor vehicle is at least $10,000, but less than $11,000, $200 for a purchased motor vehicle and $40 for a leased motor vehicle.

AB85-ASA1,4,15 (c) Limitations. 1. For purposes of determining the amount of the credit under par. (b) for a leased motor vehicle, the purchase price is the purchase price of the motor vehicle on the first day of the lease period. A claimant who claims a credit under par. (b) for a leased motor vehicle may claim the credit for each year of the lease period.

AB85-ASA1,4,23 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 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.

AB85-ASA1,5,3 3. The credit under this subsection may be claimed only by the first person who takes title of the motor vehicle, other than for resale, or, in the case of a leased vehicle, the first person who leases the vehicle.

AB85-ASA1,5,5 (d) Administration. 1. 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.

AB85-ASA1,5,9 2. The department may promulgate rules to establish documentation requirements and appropriate forms for consumers and motor vehicle dealers who purchase or sell the motor vehicles described in par. (b), if complying with the rules is not unnecessarily burdensome.

AB85-ASA1, s. 4 Section 4. 71.10 (4) (cn) of the statutes is created to read:

AB85-ASA1,5,11 71.10 (4) (cn) Flexible fuel motor vehicles credit under s. 71.07 (5j).

AB85-ASA1, s. 5 Section 5. 71.10 (4) (cs) of the statutes is created to read:

AB85-ASA1,5,13 71.10 (4) (cs) Eighty-five percent ethanol fuel credit under s. 71.07 (5i).

AB85-ASA1, s. 6 Section 6. 71.21 (4) of the statutes is amended to read:

AB85-ASA1,5,17 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), (5b), (5e), (5f), (5g), and (5h), and (5j) and passed through to partners shall be added to the partnership's income.

AB85-ASA1, s. 7 Section 7. 71.26 (2) (a) of the statutes is amended to read:

AB85-ASA1,6,11 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), (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).

AB85-ASA1, s. 8 Section 8. 71.28 (5j) of the statutes is created to read:

AB85-ASA1,6,14 71.28 (5j) Flexible fuel motor vehicles credit. (a) Definitions. In this subsection, "claimant" means a person who files a claim under this subsection.

AB85-ASA1,6,21 (b) Filing claims. Subject to the limitations provided under this subsection, for taxable years beginning after December 31, 2007, and before January 1, 2013, a claimant may claim as a credit against the taxes imposed under s. 71.23, up to the amount of the taxes, one of the following amounts, if, in the taxable year, the claimant purchased or leased a new motor vehicle, licensed for highway use, 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:

AB85-ASA1,6,23 1. If the purchase price of the motor vehicle is $18,000 or more, $600 for a purchased motor vehicle and $120 for a leased motor vehicle.

AB85-ASA1,6,25 2. If the purchase price of the motor vehicle is at least $17,000, but less than $18,000, $550 for a purchased motor vehicle and $110 for a leased motor vehicle.

AB85-ASA1,7,2 3. If the purchase price of the motor vehicle is at least $16,000, but less than $17,000, $500 for a purchased motor vehicle and $100 for a leased motor vehicle.

AB85-ASA1,7,4 4. If the purchase price of the motor vehicle is at least $15,000, but less than $16,000, $450 for a purchased motor vehicle and $90 for a leased motor vehicle.

AB85-ASA1,7,6 5. If the purchase price of the motor vehicle is at least $14,000, but less than $15,000, $400 for a purchased motor vehicle and $80 for a leased motor vehicle.

AB85-ASA1,7,8 6. If the purchase price of the motor vehicle is at least $13,000, but less than $14,000, $350 for a purchased motor vehicle and $70 for a leased motor vehicle.

AB85-ASA1,7,10 7. If the purchase price of the motor vehicle is at least $12,000, but less than $13,000, $300 for a purchased motor vehicle and $60 for a leased motor vehicle.

AB85-ASA1,7,12 8. If the purchase price of the motor vehicle is at least $11,000, but less than $12,000, $250 for a purchased motor vehicle and $50 for a leased motor vehicle.

AB85-ASA1,7,14 9. If the purchase price of the motor vehicle is at least $10,000, but less than $11,000, $200 for a purchased motor vehicle and $40 for a leased motor vehicle.

AB85-ASA1,7,19 (c) Limitations. 1. For purposes of determining the amount of the credit under par. (b) for a leased motor vehicle, the purchase price is the purchase price of the motor vehicle on the first day of the lease period. A claimant who claims a credit under par. (b) for a leased motor vehicle may claim the credit for each year of the lease period.

AB85-ASA1,8,2 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 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.

AB85-ASA1,8,5 3. The credit under this subsection may be claimed only by the first person who takes title of the motor vehicle, other than for resale, or, in the case of a leased vehicle, the first person who leases the vehicle.

AB85-ASA1,8,7 (d) Administration. 1. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB85-ASA1,8,11 2. The department may promulgate rules to establish documentation requirements and appropriate forms for consumers and motor vehicle dealers who purchase or sell the motor vehicles described in par. (b), if complying with the rules is not unnecessarily burdensome.

AB85-ASA1, s. 9 Section 9. 71.30 (3) (dq) of the statutes is created to read:

AB85-ASA1,8,13 71.30 (3) (dq) Flexible fuel motor vehicles credit under s. 71.28 (5j).

AB85-ASA1, s. 10 Section 10. 71.34 (1) (g) of the statutes is amended to read:

AB85-ASA1,8,18 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.

AB85-ASA1, s. 11 Section 11. 71.45 (2) (a) 10. of the statutes is amended to read:

AB85-ASA1,8,25 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).

AB85-ASA1, s. 12 Section 12. 71.47 (5j) of the statutes is created to read:

AB85-ASA1,9,3 71.47 (5j) Flexible fuel motor vehicles credit. (a) Definitions. In this subsection, "claimant" means a person who files a claim under this subsection.

AB85-ASA1,9,10 (b) Filing claims. Subject to the limitations provided under this subsection, for taxable years beginning after December 31, 2007, and before January 1, 2013, a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of the taxes, one of the following amounts, if, in the taxable year, the claimant purchased or leased a new motor vehicle, licensed for highway use, 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:

AB85-ASA1,9,12 1. If the purchase price of the motor vehicle is $18,000 or more, $600 for a purchased motor vehicle and $120 for a leased motor vehicle.

AB85-ASA1,9,14 2. If the purchase price of the motor vehicle is at least $17,000, but less than $18,000, $550 for a purchased motor vehicle and $110 for a leased motor vehicle.

AB85-ASA1,9,16 3. If the purchase price of the motor vehicle is at least $16,000, but less than $17,000, $500 for a purchased motor vehicle and $100 for a leased motor vehicle.

AB85-ASA1,9,18 4. If the purchase price of the motor vehicle is at least $15,000, but less than $16,000, $450 for a purchased motor vehicle and $90 for a leased motor vehicle.

AB85-ASA1,9,20 5. If the purchase price of the motor vehicle is at least $14,000, but less than $15,000, $400 for a purchased motor vehicle and $80 for a leased motor vehicle.

AB85-ASA1,9,22 6. If the purchase price of the motor vehicle is at least $13,000, but less than $14,000, $350 for a purchased motor vehicle and $70 for a leased motor vehicle.

AB85-ASA1,9,24 7. If the purchase price of the motor vehicle is at least $12,000, but less than $13,000, $300 for a purchased motor vehicle and $60 for a leased motor vehicle.

AB85-ASA1,10,2 8. If the purchase price of the motor vehicle is at least $11,000, but less than $12,000, $250 for a purchased motor vehicle and $50 for a leased motor vehicle.

AB85-ASA1,10,4 9. If the purchase price of the motor vehicle is at least $10,000, but less than $11,000, $200 for a purchased motor vehicle and $40 for a leased motor vehicle.

AB85-ASA1,10,9 (c) Limitations. 1. For purposes of determining the amount of the credit under par. (b) for a leased motor vehicle, the purchase price is the purchase price of the motor vehicle on the first day of the lease period. A claimant who claims a credit under par. (b) for a leased motor vehicle may claim the credit for each year of the lease period.

AB85-ASA1,10,17 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 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.

AB85-ASA1,10,20 3. The credit under this subsection may be claimed only by the first person who takes title of the motor vehicle, other than for resale, or, in the case of a leased vehicle, the first person who leases the vehicle.

AB85-ASA1,10,22 (d) Administration. 1. 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.

AB85-ASA1,11,2 2. The department may promulgate rules to establish documentation requirements and appropriate forms for consumers and motor vehicle dealers who purchase or sell the motor vehicles described in par. (b), if complying with the rules is not unnecessarily burdensome.

AB85-ASA1, s. 13 Section 13. 71.49 (1) (dq) of the statutes is created to read:

AB85-ASA1,11,4 71.49 (1) (dq) Flexible fuel motor vehicles credit under s. 71.47 (5j).

AB85-ASA1, s. 14 Section 14. 77.92 (4) of the statutes is amended to read:

AB85-ASA1,11,20 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.

AB85-ASA1, s. 15 Section 15. 110.23 of the statutes is created to read:

AB85-ASA1,12,2 110.23 Flexible fuel 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 established under ss. 71.07 (5j) (b), 71.28 (5j) (b), and 71.47 (5j) (b) for tax credit eligibility.

AB85-ASA1,12,3 (End)