AB752: Bill Text

AB752,4,16 71.10 (4) (fm) The distributed generation power generator credit under s. 71.07 (5d).

AB752, s. 5 Section 5. 71.21 (4) of the statutes, as affected by 2001 Wisconsin Act 16, is amended to read:

AB752,4,21 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (3g), and (3s) , and (5d) and passed through to partners shall be added to the partnership's income.

AB752, s. 6 Section 6. 71.26 (2) (a) of the statutes, as affected by 2001 Wisconsin Act 16, is amended to read:

AB752,5,13 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), (5), plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), and (1dx), (3g) (1dx), and (5d) 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).

AB752, s. 7 Section 7. 71.28 (5d) of the statutes is created to read:

AB752,5,16 71.28 (5d) Distributed generation power generator credit. (a) In this subsection:

AB752,5,17 1. "Claimant" means a corporation that files a claim under this subsection.

AB752,5,21 2. "Distributed generation power generator" means a generator consisting of reciprocating engines that are fueled by natural gas or a combination of natural gas and diesel, that has a thermal efficiency of at least 40%, and that has a nitrogen oxide emission level of no more than 1.5 grams per brake horsepower-hour.

AB752,6,2 (b) Subject to the limitations provided in this subsection, a claimant certified under s. 560.186 may claim as a credit against the tax imposed under s. 71.23 an amount, not exceeding $400,000 in any taxable year, that is equal to the amount that the claimant paid in the taxable year to purchase and operate a distributed generation power generator.

AB752,6,8 (c) The total amount of the credit for all claimants under this subsection and ss. 71.07 (5d) and 71.47 (5d) may not exceed $2,000,000 in any taxable year. If the total amount of credits claimed by all claimants in any taxable exceeds $2,000,000, the department shall prorate the credit according to the amount of the purchase costs and operating costs of a distributed generation power generator that are incurred by all claimants during the taxable year.

AB752,6,10 (d) Subsection (4) (e), (f), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB752,6,18 (e) 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 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 interest.

AB752, s. 8 Section 8. 71.30 (3) (dm) of the statutes is created to read:

AB752,6,21 71.30 (3) (dm) The distributed generation power generator credit under s. 71.28 (5d).

AB752, s. 9 Section 9. 71.34 (1) (g) of the statutes, as affected by 2001 Wisconsin Act 16, is amended to read:

AB752,7,3 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), and (3g), and (5d) and passed through to shareholders.

AB752, s. 10 Section 10. 71.47 (5d) of the statutes is created to read:

AB752,7,6 71.47 (5d) Distributed generation power generator credit. (a) In this subsection:

AB752,7,7 1. "Claimant" means a corporation that files a claim under this subsection.

AB752,7,11 2. "Distributed generation power generator" means a generator consisting of reciprocating engines that are fueled by natural gas or a combination of natural gas and diesel, that has a thermal efficiency of at least 40%, and that has a nitrogen oxide emission level of no more than 1.5 grams per brake horsepower-hour.

AB752,7,16 (b) Subject to the limitations provided in this subsection, a claimant certified by the department of commerce under s. 560.186 may claim as a credit against the tax imposed under s. 71.43 an amount, not exceeding $400,000 in any taxable year, that is equal to the amount that the claimant paid in the taxable year to purchase and operate a distributed generation power generator.

AB752,7,22 (c) The total amount of the credit for all claimants under this subsection and ss. 71.07 (5d) and 71.28 (5d) may not exceed $2,000,000 in any taxable year. If the total amount of credits claimed by all claimants in any taxable exceeds $2,000,000, the department shall prorate the credit according to the amount of the purchase costs and operating costs of a distributed generation power generator that are incurred by all claimants during the taxable year.

AB752,7,24 (d) Section 71.28 (4) (e), (f), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB752,8,8 (e) 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 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 interest.

AB752, s. 11 Section 11. 71.49 (1) (dm) of the statutes is created to read:

AB752,8,11 71.49 (1) (dm) The distributed generation power generator credit under s. 71.47 (5d).

AB752, s. 12 Section 12. 77.92 (4) of the statutes, as affected by 2001 Wisconsin Act 16, is amended to read:

AB752,9,3 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), and (3g), and (3s), and (5d); 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.

AB752, s. 13 Section 13. 560.186 of the statutes is created to read:

AB752,9,9 560.186 Distributed generation power generators. (1) In this section, "distributed generation power generator" means a generator consisting of reciprocating engines that are fueled by natural gas or a combination of natural gas and diesel, that has a thermal efficiency of at least 40%, and that has a nitrogen oxide emission level of no more than 1.5 grams per brake horsepower-hour.

AB752,9,17 (2) The department shall promulgate rules establishing requirements and procedures for certifying claimants who may make a claim under ss. 71.07 (5d), 71.28 (5d), and 71.47 (5d) and shall certify all claimants who satisfy the requirements. The rules shall require a claimant to demonstrate to the satisfaction of the department that the distributed generation power generator is permanently installed on the customer's side of the utility meter, is connected to and operates in parallel to the electric utility distribution system, is not intended for back-up generation purposes, and will be operated in a safe and reliable manner

AB752, s. 14 Section 14. Initial applicability.

AB752,9,22 (1) This act first applies to taxable years beginning on January 1 of the year in which this subsection takes effect, except that if this subsection takes effect after July 31 this act first applies to taxable years beginning on January 1 of the year following the year in which this subsection takes effect.

AB752,9,23 (End)