AB614: Bill Text

AB614,1,6 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 (5m), 71.10 (4) (er), 71.28 (5m), 71.30 (3) (er), 71.47 (5m) and 71.49 (1) (er) of the statutes; relating to: creating an income and franchise tax credit for constructing and operating a data center that is designed for maximum energy efficiency and minimum environmental impact and providing an exemption from rule-making procedures.

Analysis by the Legislative Reference Bureau

This bill creates an income and franchise tax credit in an amount equal to the amount a person paid in the taxable year for items that are either energy efficient or have a minimal environmental impact and that are used to construct or operate a "green data center." Under the bill, a green data center is a repository for the storage, management, and dissemination of data, if the mechanical, lighting, electrical, and computer systems of the real property in which the repository is located are designed for maximum energy efficiency and minimum environmental impact.

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:

AB614, s. 1 Section 1. 71.05 (6) (a) 15. of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

AB614,2,8 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), (3h), (3n), (3p), (3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), and (5k), and (5m) 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).

AB614, s. 2 Section 2. 71.07 (5m) of the statutes is created to read:

AB614,2,10 71.07 (5m) Green data center credit. (a) Definitions. In this subsection:

AB614,2,11 1. "Claimant" means a person who files a claim under this subsection.

AB614,2,15 2. "Green data center" means a repository for the storage, management, and dissemination of data, if the mechanical, lighting, electrical, and computer systems of the real property in which the repository is located are designed for maximum energy efficiency and minimum environmental impact.

AB614,2,17 3. "Reduced amount" means an amount that is at least 25 percent less than the maximum amount allowed under federal law.

AB614,3,2 (b) Filing claims. Subject to the limitations provided in this subsection and 2007 Wisconsin Act .... (this act), section 13 , for taxable years beginning after June 30, 2008, and before July 1, 2010, a claimant may claim as a credit against the taxes imposed under s. 71.02, up to the amount of the taxes, the amount that the claimant paid in the taxable year for the following items that are used to construct and operate a green data center:

AB614,3,3 1. At least 2 of the following:

AB614,3,4 a. Low-emission building materials, including carpets and paints.

AB614,3,5 b. Sustainable landscaping.

AB614,3,6 c. An electronic waste recycling program, as defined by the department.

AB614,3,7 2. At least 2 of the following:

AB614,3,8 a. Catalytic converters on back-up generators.

AB614,3,9 b. Photovoltaics.

AB614,3,10 c. Heat pumps.

AB614,3,11 d. Evaporative cooling.

AB614,3,13 3. Equipment or equipment components that have a reduced amount, or none, of at least 4 of the following:

AB614,3,14 a. Mercury.

AB614,3,15 b. Cadmium.

AB614,3,16 c. Lead.

AB614,3,17 d. Chromium VI.

AB614,3,18 e. Polybrominated biphenyls.

AB614,3,19 f. Polybrominated diphenyl ether.

AB614,3,24 (c) Limitations. 1. The maximum amount of all credits that may be claimed under this subsection and ss. 71.28 (5m) and 71.47 (5m) is $2,000,000. No claimant may claim a credit under this subsection unless the claimant submits with the claimant's return a copy of the claimant's certification for credits under 2007 Wisconsin Act .... (this act), section 13 .

AB614,4,8 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 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.

AB614,4,10 (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.

AB614, s. 3 Section 3. 71.10 (4) (er) of the statutes is created to read:

AB614,4,12 71.10 (4) (er) Green data center credit under s. 71.07 (5m).

AB614, s. 4 Section 4. 71.21 (4) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

AB614,4,18 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3h), (3n), (3p), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k), and (5m) and passed through to partners shall be added to the partnership's income.

AB614, s. 5 Section 5. 71.26 (2) (a) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

AB614,5,13 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), 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), (3h), (3n), (3p), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k), and (5m) 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).

AB614, s. 6 Section 6. 71.28 (5m) of the statutes is created to read:

AB614,5,15 71.28 (5m) Green data center credit. (a) Definitions. In this subsection:

AB614,5,16 1. "Claimant" means a person who files a claim under this subsection.

AB614,5,20 2. "Green data center" means a repository for the storage, management, and dissemination of data, if the mechanical, lighting, electrical, and computer systems of the real property in which the repository is located are designed for maximum energy efficiency and minimum environmental impact.

AB614,5,22 3. "Reduced amount" means an amount that is at least 25 percent less than the maximum amount allowed under federal law.

AB614,6,3 (b) Filing claims. Subject to the limitations provided in this subsection and 2007 Wisconsin Act .... (this act), section 13 , for taxable years beginning after June 30, 2008, and before July 1, 2010, a claimant may claim as a credit against the taxes imposed under s. 71.23, up to the amount of the taxes, the amount that the claimant paid in the taxable year for the following items that are used to construct and operate a green data center:

AB614,6,4 1. At least 2 of the following:

AB614,6,5 a. Low-emission building materials, including carpets and paints.

AB614,6,6 b. Sustainable landscaping.

AB614,6,7 c. An electronic waste recycling program, as defined by the department.

AB614,6,8 2. At least 2 of the following:

AB614,6,9 a. Catalytic converters on back-up generators.

AB614,6,10 b. Photovoltaics.

AB614,6,11 c. Heat pumps.

AB614,6,12 d. Evaporative cooling.

AB614,6,14 3. Equipment or equipment components that have a reduced amount, or none, of at least 4 of the following:

AB614,6,15 a. Mercury.

AB614,6,16 b. Cadmium.

AB614,6,17 c. Lead.

AB614,6,18 d. Chromium VI.

AB614,6,19 e. Polybrominated biphenyls.

AB614,6,20 f. Polybrominated diphenyl ether.

AB614,6,25 (c) Limitations. 1. The maximum amount of all credits that may be claimed under this subsection and ss. 71.07 (5m) and 71.47 (5m) is $2,000,000. No claimant may claim a credit under this subsection unless the claimant submits with the claimant's return a copy of the claimant's certification for credits under 2007 Wisconsin Act .... (this act), section 13 .

AB614,7,8 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 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.

AB614,7,10 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB614, s. 7 Section 7. 71.30 (3) (er) of the statutes is created to read:

AB614,7,12 71.30 (3) (er) Green data center credit under s. 71.28 (5m).

AB614, s. 8 Section 8. 71.34 (1) (g) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

AB614,7,18 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), (3h), (3n), (3p), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k), and (5m) and passed through to shareholders.

AB614, s. 9 Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

AB614,8,2 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dx), (3h), (3n), (3p), (3w), (5e), (5f), (5g), (5h), (5i), (5j), and (5k), and (5m) 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).

AB614, s. 10 Section 10. 71.47 (5m) of the statutes is created to read:

AB614,8,4 71.47 (5m) Green data center credit. (a) Definitions. In this subsection:

AB614,8,5 1. "Claimant" means a person who files a claim under this subsection.

AB614,8,9 2. "Green data center" means a repository for the storage, management, and dissemination of data, if the mechanical, lighting, electrical, and computer systems of the real property in which the repository is located are designed for maximum energy efficiency and minimum environmental impact.

AB614,8,11 3. "Reduced amount" means an amount that is at least 25 percent less than the maximum amount allowed under federal law.

AB614,8,17 (b) Filing claims. Subject to the limitations provided in this subsection and 2007 Wisconsin Act .... (this act), section 13 , for taxable years beginning after June 30, 2008, and before July 1, 2010, a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of the taxes, the amount that the claimant paid in the taxable year for the following items that are used to construct and operate a green data center:

AB614,8,18 1. At least 2 of the following:

AB614,8,19 a. Low-emission building materials, including carpets and paints.

AB614,8,20 b. Sustainable landscaping.

AB614,8,21 c. An electronic waste recycling program, as defined by the department.

AB614,8,22 2. At least 2 of the following:

AB614,8,23 a. Catalytic converters on back-up generators.

AB614,8,24 b. Photovoltaics.

AB614,8,25 c. Heat pumps.

AB614,9,1 d. Evaporative cooling.

AB614,9,3 3. Equipment or equipment components that have a reduced amount, or none, of at least 4 of the following:

AB614,9,4 a. Mercury.

AB614,9,5 b. Cadmium.