AB767: Bill Text

AB767,2,24 c. A solar domestic hot water service.

AB767,3,2 d. Professional services for the design, installation, maintenance, and repair of equipment and systems as described in subds. 1. a. to c.

AB767,3,5 2. An amount equal to 10 cents per kilowatt hour for energy generated in the taxable year from any of the sources listed in subd. 1. a. to c., if the energy is used exclusively by the claimant or returned to a utility as surplus energy.

AB767,3,13 (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 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 interests.

AB767,3,15 (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.

AB767, s. 3 Section 3. 71.10 (4) (cp) of the statutes is created to read:

AB767,3,17 71.10 (4) (cp) Alternative energy sources credit under s. 71.07 (3w).

AB767, s. 4 Section 4. 71.21 (4) of the statutes is amended to read:

AB767,3,21 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), and (5b) and passed through to partners shall be added to the partnership's income.

AB767, s. 5 Section 5. 71.26 (2) (a) of the statutes is amended to read:

AB767,4,15 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), and (5b) 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).

AB767, s. 6 Section 6. 71.28 (3w) of the statutes is created to read:

AB767,4,18 71.28 (3w) Alternative energy sources credit. (a) Definitions. In this subsection, "claimant" means a person who files a claim under this subsection.

AB767,4,21 (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 those taxes, the following amounts:

AB767,4,23 1. An amount equal to the taxes imposed under subch. III of ch. 77 that the claimant paid in the taxable year on the purchase of any of the following:

AB767,5,3 a. Equipment, including integrated balance of system components, that captures solar energy, wind energy, or gas from livestock manure and other agricultural waste and converts such energy or gas into electricity, if the rated capacity of all such equipment at the point of interconnection does not exceed 25,000 watts of alternating or direct current.

AB767,5,7 b. Equipment that captures and uses solar energy for domestic water heating, including balance of system components, if the maximum output of such equipment, per installation, does not exceed a rated output of 35,000,000 British thermal units per day.

AB767,5,8 c. A solar domestic hot water service.

AB767,5,10 d. Professional services for the design, installation, maintenance, and repair of equipment and systems as described in subds. 1. a. to c.

AB767,5,13 2. An amount equal to 10 cents per kilowatt hour for energy generated in the taxable year from any of the sources listed in subd. 1. a. to c., if the energy is used exclusively by the claimant or returned to a utility as surplus energy.

AB767,5,21 (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 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 interests.

AB767,5,23 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB767, s. 7 Section 7. 71.30 (3) (dm) of the statutes is created to read:

AB767,5,25 71.30 (3) (dm) Alternative energy sources credit under s. 71.28 (3w).

AB767, s. 8 Section 8. 71.34 (1) (g) of the statutes is amended to read:

AB767,6,4 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), and (5b) and passed through to shareholders.

AB767, s. 9 Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:

AB767,6,11 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), and (5b) 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).

AB767, s. 10 Section 10. 71.47 (3w) of the statutes is created to read:

AB767,6,14 71.47 (3w) Alternative energy sources credit. (a) Definitions. In this subsection, "claimant" means a person who files a claim under this subsection.

AB767,6,17 (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 those taxes, the following amounts:

AB767,6,19 1. An amount equal to the taxes imposed under subch. III of ch. 77 that the claimant paid in the taxable year on the purchase of any of the following:

AB767,6,24 a. Equipment, including integrated balance of system components, that captures solar energy, wind energy, or gas from livestock manure and other agricultural waste and converts such energy or gas into electricity, if the rated capacity of all such equipment at the point of interconnection does not exceed 25,000 watts of alternating or direct current.

AB767,7,4 b. Equipment that captures and uses solar energy for domestic water heating, including balance of system components, if the maximum output of such equipment, per installation, does not exceed a rated output of 35,000,000 British thermal units per day.

AB767,7,5 c. A solar domestic hot water service.

AB767,7,7 d. Professional services for the design, installation, maintenance, and repair of equipment and systems as described in subds. 1. a. to c.

AB767,7,10 2. An amount equal to 10 cents per kilowatt hour for energy generated in the taxable year from any of the sources listed in subd. 1. a. to c., if the energy is used exclusively by the claimant or returned to a utility as surplus energy.

AB767,7,18 (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 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 interests.

AB767,7,20 (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.

AB767, s. 11 Section 11. 71.49 (1) (dm) of the statutes is created to read:

AB767,7,22 71.49 (1) (dm) Alternative energy sources credit under s. 71.47 (3w).

AB767, s. 12 Section 12. 77.92 (4) of the statutes is amended to read:

AB767,8,13 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), and (5b); 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.

AB767, s. 13 Section 13. Initial applicability.

AB767,8,15 (1) This act first applies to taxable years beginning on January 1, 2006.

AB767,8,16 (End)