LRB-2718/2
JS:mfd:jf
1997 - 1998 LEGISLATURE
May 6, 1997 - Introduced by Representatives Ainsworth, Hasenohrl, Musser, Ott,
Owens
and Seratti, cosponsored by Senator A. Lasee. Referred to Committee
on Rural Affairs.
AB339,1,3 1An Act to amend 71.08 (1) (intro.) and 71.26 (2) (a); and to create 71.07 (9a),
271.10 (4) (gb), 71.28 (7), 71.30 (3) (ed), 71.47 (7) and 71.49 (1) (ed) of the statutes;
3relating to: creating a wood residue income tax and franchise tax credit.
Analysis by the Legislative Reference Bureau
This bill creates an income tax and franchise tax credit for persons who
transport and sell for use as an energy source certain kinds of wood residue. The
credit is equal to $5 per ton of residue. It is nonrefundable (that is, no check is issued
if the amount of the credit exceeds the amount of the tax liability), but it may be
carried forward.
For further information see the state 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:
AB339, s. 1 4Section 1. 71.07 (9a) of the statutes is created to read:
AB339,2,25 71.07 (9a) Wood residue credit. (a) In this subsection, "wood residue" means
6the residue from normal timber harvesting or production; including timber
7thinnings from timber stand improvements, hogged wood, chipped wood, slash,

1sawdust, shavings, edgings, slabs, leaves and bark; construction waste, demolition
2waste, crating, packaging and freight pallets.
AB339,2,63 (b) Any person may credit against taxes otherwise due under this subchapter,
4up to the amount of those taxes, an amount equal to the result obtained by
5multiplying $5 by the number of tons of wood residue that, during the taxable year,
6the person transports and sells for use as an energy source.
AB339,2,127 (c) Any person who receives a credit under this subsection may carry forward
8to the next 15 taxable years the amount of the credit that is not offset against taxes
9for the year in which the wood residue is transported and sold to the extent that that
10amount is not offset against those taxes otherwise due in all of the years between the
11year for which the credit was computed and the year for which the carry-forward is
12claimed.
AB339,2,1413 (d) Section 71.28 (1di) (b) 3. and (4) (g) and (h), as they apply to the credits under
14s. 71.28 (1di) and (4), apply to the credit under this subsection.
AB339, s. 2 15Section 2. 71.08 (1) (intro.) of the statutes is amended to read:
AB339,2,2316 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married
17couple filing jointly, trust or estate under s. 71.02, not considering the credits under
18ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2fd), (3m), (6), (9a) and (9e),
1971.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1fd) and (2m) and 71.47 (1dd), (1de), (1di),
20(1dj), (1dL), (1ds), (1fd) and (2m) and subchs. VIII and IX and payments to other
21states under s. 71.07 (7), is less than the tax under this section, there is imposed on
22that natural person, married couple filing jointly, trust or estate, instead of the tax
23under s. 71.02, an alternative minimum tax computed as follows:
AB339, s. 3 24Section 3. 71.10 (4) (gb) of the statutes is created to read:
AB339,2,2525 71.10 (4) (gb) Wood residue credit under s. 71.07 (9a).
AB339, s. 4
1Section 4. 71.26 (2) (a) of the statutes is amended to read:
AB339,3,162 71.26 (2) (a) Corporations in general. The "net income" of a corporation means
3the gross income as computed under the internal revenue code as modified under
4sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
5computed under s. 71.28 (1) and, (3) to (5) and (7) plus the amount of the credit
6computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL) and (1ds) and not passed
7through by a partnership, limited liability company or tax-option corporation that
8has added that amount to the partnership's, limited liability company's or tax-option
9corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from
10the sale or other disposition of assets the gain from which would be wholly exempt
11income, as defined in sub. (3) (L), if the assets were sold or otherwise disposed of at
12a gain and minus deductions, as computed under the internal revenue code as
13modified under sub. (3), plus or minus, as appropriate, an amount equal to the
14difference between the federal basis and Wisconsin basis of any asset sold,
15exchanged, abandoned or otherwise disposed of in a taxable transaction during the
16taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).
AB339, s. 5 17Section 5. 71.28 (7) of the statutes is created to read:
AB339,3,2218 71.28 (7) Wood residue credit. (a) In this subsection, "wood residue" means
19the residue from normal timber harvesting or production; including timber
20thinnings from timber stand improvements, hogged wood, chipped wood, slash,
21sawdust, shavings, edgings, slabs, leaves and bark; construction waste, demolition
22waste, crating, packaging and freight pallets.
AB339,4,223 (b) Any person may credit against taxes otherwise due under this subchapter,
24up to the amount of those taxes, an amount equal to the result obtained by

1multiplying $5 by the number of tons of wood residue that, during the taxable year,
2the person transports and sells for use as an energy source.
AB339,4,83 (c) Any person who receives a credit under this subsection may carry forward
4to the next 15 taxable years the amount of the credit that is not offset against taxes
5for the year in which the wood residue is transported and sold to the extent that that
6amount is not offset against those taxes otherwise due in all of the years between the
7year for which the credit was computed and the year for which the carry-forward is
8claimed.
AB339,4,109 (d) Subsections (1di) (b) 3. and (4) (g) and (h), as they apply to the credits under
10subs. (1di) and (4), apply to the credit under this subsection.
AB339, s. 6 11Section 6. 71.30 (3) (ed) of the statutes is created to read:
AB339,4,1212 71.30 (3) (ed) Wood residue credit under s. 71.28 (7).
AB339, s. 7 13Section 7. 71.47 (7) of the statutes is created to read:
AB339,4,1814 71.47 (7) Wood residue credit. (a) In this subsection, "wood residue" means
15the residue from normal timber harvesting or production; including timber
16thinnings from timber stand improvements, hogged wood, chipped wood, slash,
17sawdust, shavings, edgings, slabs, leaves and bark; construction waste, demolition
18waste, crating, packaging and freight pallets.
AB339,4,2219 (b) Any person may credit against taxes otherwise due under this subchapter,
20up to the amount of those taxes, an amount equal to the result obtained by
21multiplying $5 by the number of tons of wood residue that, during the taxable year,
22the person transports and sells for use as an energy source.
AB339,5,323 (c) Any person who receives a credit under this subsection may carry forward
24to the next 15 taxable years the amount of the credit that is not offset against taxes
25for the year in which the wood residue is transported and sold to the extent that that

1amount is not offset against those taxes otherwise due in all of the years between the
2year for which the credit was computed and the year for which the carry-forward is
3claimed.
AB339,5,54 (d) Section 71.28 (1di) (b) 3. and (4) (g) and (h), as they apply to the credits under
5s. 71.28 (1di) and (4), apply to the credit under this subsection.
AB339, s. 8 6Section 8. 71.49 (1) (ed) of the statutes is created to read:
AB339,5,77 71.49 (1) (ed) Wood residue credit under s. 71.47 (7).
AB339, s. 9 8Section 9. Initial applicability; revenue.
AB339,5,139 (1) Wood residue credit. This act first applies to taxable years beginning on
10the January 1 of the year in which this subsection takes effect, except that, if this
11subsection takes effect on or after August 1, this act first applies to taxable years
12beginning on January 1 of the year following the year in which this subsection takes
13effect.
AB339,5,1414 (End)
Loading...
Loading...