SB521: Bill Text

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2009 - 2010 LEGISLATURE

2009 Senate BILL 521

February 9, 2010 - Introduced by Senators Plale, Darling, Schultz, A. Lasee and Sullivan, cosponsored by Representatives Stone, Richards, Vos, Pasch, Honadel, Fields, Gottlieb, Roys, Huebsch, Turner, Davis, Gunderson, Montgomery, Roth, Strachota, Zipperer, Townsend, Bies, Steinbrink, Knodl and Kerkman. Referred to Committee on Health, Health Insurance, Privacy, Property Tax Relief, and Revenue.

SB521,2,2 An Act to repeal 20.370 (2) (cf), 20.395 (5) (hq) and (hx), 110.20, 110.21, 110.215, 285.30, 285.39 (3) (a), 341.09 (5), 341.10 (8), 341.10 (10), 341.63 (1) (e) and 632.365; to amend 13.48 (10) (a), 20.395 (5) (cq), 71.28 (4m) (b) (intro.), 71.47 (4m) (b) (intro.), 77.54 (57) (b) 1., 77.54 (57) (b) 2., 341.03 (1), 341.04 (1) (intro.), 341.05 (19), 341.09 (2m) (a) 1. b., 341.09 (2m) (a) 2., 341.09 (9), 341.26 (2m) (am), 341.36 (2), 341.65 (2) (e) 2m., 625.12 (1) (e), 625.12 (2), 625.15 (1) and 628.34 (3) (a); and to create 20.143 (1) (dm), 20.855 (4) (x), 25.40 (2) (b) 27., 70.11 (27m), 70.111 (27), 70.111 (28), 77.54 (57) (a) 5m., 77.54 (58), 110.20 (8) (c) and 560.127 of the statutes; relating to: a sales and use tax exemption for extended-range electric vehicles; a property tax exemption for tangible personal property used to recharge electric vehicles; the motor vehicle emission inspection and maintenance program, extended-range electric vehicle grants; an income and franchise tax credit for research conducted in this state by a corporation; a property and sales and use tax exemption for certain machinery and tangible personal property used to conduct research; granting rule-making authority; and making appropriations.

Analysis by the Legislative Reference Bureau

Sales tax exemptions

This bill provides a sales and use tax exemption for extended-range electric vehicles that are licensed for highway use.

Property tax exemptions

This bill exempts from property taxes all tangible personal property used exclusively to provide electricity to recharge electric vehicles that are licensed for highway use or neighborhood electric vehicles that are allowed, by ordinance, to operate on a roadway that has a speed limit of 35 miles per hour or less.

This bill also creates a property tax exemption and a sales and use tax exemption for machinery and other tangible personal property used for qualified research by persons engaged primarily in manufacturing, silviculture, or biotechnology in this state.

Vehicle emission inspections and electric vehicle grant program

Current law requires the Department of Transportation (DOT) to conduct a motor vehicle emission inspection and maintenance program (I/M program) in counties in which the air quality does not meet certain federal standards (nonattainment counties). Under the I/M program, most motor vehicles that are subject to emission limitations established by the Department of Natural Resources (DNR) must pass periodic emission inspections and may not be registered by DOT unless they have passed these inspections. Most nonexempt motor vehicles must undergo an initial emission inspection in the fourth year after the vehicle's model year and additional emission inspections every two years thereafter. DOT may contract with third parties to perform vehicle emission inspections under the I/M program. The costs of administering the program, including contracting for emission inspections, are primarily paid by DOT from the transportation fund, although a small portion of the costs are paid by DNR from the general fund.

This bill terminates the I/M program on July 1, 2011, and prohibits DOT from entering into any new contract, or renewing or extending any existing contract, for the operation of the I/M program before that date. The bill also creates appropriations to transfer money from the transportation fund to the general fund and to fund, from the general fund, an extended-range electric vehicle grant program. The bill requires the Department of Commerce (Commerce), after July 1, 2011, to award grants to promote the extended-range electric vehicle industry, and research, production, and use of extended-range electric vehicles, in the nonattainment counties. Commerce must promulgate rules to implement and administer the extended-range electric vehicle grant program.

Super research and development credit

Under current law, for taxable years beginning on or after January 1, 2011, a corporation may also claim a "super research and development" income and franchise tax credit equal to the amount of its qualified research expenses in the taxable year for research conducted in this state that exceeds the amount equal to the average amount of the corporation's qualified research expenses in the previous three taxable years multiplied by 1.25. If the credit claimed by a corporation exceeds the corporation's tax liability, the state will not issue a refund, but the corporation may carry forward any remaining credit to 15 subsequent taxable years. Under the bill, a corporation may claim the super research and development credit for taxable years beginning on or after July 1, 2010.

This bill will be referred to the Joint Survey Committee on Tax Exemptions for a detailed analysis, which will be printed as an appendix to this bill.

For further information see the state and local 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:

SB521, s. 1 Section 1. 13.48 (10) (a) of the statutes is amended to read:

SB521,3,13 13.48 (10) (a) No state board, agency, officer, department, commission or body corporate may enter into a contract for the construction, reconstruction, remodeling of or addition to any building, structure, or facility, in connection with any building project which involves a cost in excess of $150,000 without completion of final plans and arrangement for supervision of construction and prior approval by the building commission. The building commission may not approve a contract for the construction, reconstruction, renovation or remodeling of or an addition to a state building as defined in s. 44.51 (2) unless it determines that s. 44.57 has been complied with or does not apply. This section applies to the department of transportation only in respect to buildings, structures and facilities to be used for administrative or operating functions, including buildings, land and equipment to be used for the motor vehicle emission inspection and maintenance program under s. 110.20.

SB521, s. 2 Section 2 . 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

SB521, s. 3 Section 3. 20.143 (1) (dm) of the statutes is created to read:

SB521,4,6 20.143 (1) (dm) Extended-range electric vehicle grants. As a continuing appropriation, the amounts in the schedule for administering the program and awarding grants under s. 560.127.

SB521, s. 4 Section 4. 20.370 (2) (cf) of the statutes is repealed.

SB521, s. 5 Section 5. 20.395 (5) (cq) of the statutes is amended to read:

SB521,5,3 20.395 (5) (cq) Vehicle registration, inspection and maintenance, driver licensing, and aircraft registration, state funds. The amounts in the schedule for administering the vehicle registration and driver licensing program, including the traffic violation and registration program and the driver license reinstatement training program under s. 85.28, for administering the motor vehicle emission inspection and maintenance program under s. 110.20, for the training of inspectors under s. 110.22, for administering the fuel tax and fee reporting program under s. 341.45, for administering the aircraft registration program under s. 114.20 and to compensate for services performed, as determined by the secretary of transportation, by any county providing registration services.

SB521, s. 6 Section 6. 20.395 (5) (hq) and (hx) of the statutes are repealed.

SB521, s. 7 Section 7. 20.855 (4) (x) of the statutes is created to read:

SB521,5,8 20.855 (4) (x) Transfer to general fund; transportation fund. Notwithstanding s. 25.40 (3) (a), from the transportation fund, the amounts in the schedule to be transferred to the general fund.

SB521, s. 8 Section 8. 25.40 (2) (b) 27. of the statutes is created to read:

SB521,5,10 25.40 (2) (b) 27. Section 20.855 (4) (x).

SB521, s. 9 Section 9. 70.11 (27m) of the statutes is created to read:

SB521,5,12 70.11 (27m) Research machinery and equipment. (a) In this subsection:

SB521,5,13 1. "Biotechnology" has the meaning given in s. 77.54 (57) (a) 1f.

SB521,5,14 2. "Machinery" has the meaning given in sub. (27) (a) 2.

SB521,5,15 3. "Manufacturing" has the meaning given in sub. (27) (a) 3.

SB521,5,16 4. "Primarily" means more than 50 percent.

SB521,5,18 5. "Qualified research" means qualified research as defined under section 41 (d) (1) of the Internal Revenue Code.

SB521,5,21 6. "Silviculture" means theory and practice of controlling regeneration, composition, and growth of stands of forest vegetation using knowledge of the life history, characteristics, and ecology of forest trees through:

SB521,5,22 a. Regeneration treatment.

SB521,5,23 b. Liberation cutting.

SB521,5,24 c. Thinning.

SB521,5,25 d. Crown thinning.

SB521,6,1 e. Improvement cutting.

SB521,6,2 f. Planting.

SB521,6,3 g. Site preparation.

SB521,6,4 h. Pruning.

SB521,6,5 7. "Used exclusively" has the meaning given in sub. (27) (a) 8.

SB521,6,9 (b) Machinery and equipment, including attachments, parts, and accessories, used by persons who are engaged primarily in manufacturing, silviculture, or biotechnology in this state and are used exclusively and directly in qualified research.

SB521, s. 10 Section 10. 70.111 (27) of the statutes is created to read:

SB521,6,15 70.111 (27) Charging stations. All tangible personal property used exclusively, as defined in s. 70.11 (27) (a) 8., to provide electricity to recharge electric vehicles that are licensed for highway use or neighborhood electric vehicles, as defined in s. 340.01 (36r), regardless of the extent to which the tangible personal property is fastened to, connected to, or built into real property.

SB521, s. 11 Section 11. 70.111 (28) of the statutes is created to read:

SB521,6,17 70.111 (28) Research property. (a) In this subsection:

SB521,6,18 1. "Biotechnology" has the meaning given in s. 77.54 (57) (a) 1f.

SB521,6,19 2. "Manufacturing" has the meaning given in s. 70.11 (27) (a) 3.

SB521,6,20 3. "Primarily" means more than 50 percent.

SB521,6,22 4. "Qualified research" means qualified research as defined under section 41 (d) (1) of the Internal Revenue Code.

SB521,6,23 5. "Silviculture" has the meaning given in s. 70.11 (27m) (a) 6.

SB521,6,24 6. "Used exclusively" has the meaning given in s. 70.11 (27) (a) 8.

SB521,7,4 (b) Tangible personal property used by persons who are engaged primarily in manufacturing, silviculture, or biotechnology in this state, if the tangible personal property is consumed or destroyed or loses its identity while being used exclusively and directly in qualified research.

SB521, s. 12 Section 12. 71.28 (4m) (b) (intro.) of the statutes, as created by 2009 Wisconsin Act 28, is amended to read:

SB521,7,12 71.28 (4m) (b) Credit. (intro.) Subject to the limitations provided under this subsection, for taxable years beginning on or after January 1, 2011 July 1, 2010, a corporation may claim as a credit against the tax imposed under s. 71.23, up to the amount of those taxes, an amount equal to the amount of qualified research expenses paid or incurred by the corporation in the taxable year that exceeds the amount calculated as follows:

SB521, s. 13 Section 13. 71.47 (4m) (b) (intro.) of the statutes, as created by 2009 Wisconsin Act 28, is amended to read:

SB521,7,20 71.47 (4m) (b) Credit. (intro.) Subject to the limitations provided under this subsection, for taxable years beginning on or after January 1, 2011 July 1, 2010, a corporation may claim as a credit against the tax imposed under s. 71.43, up to the amount of those taxes, an amount equal to the amount of qualified research expenses paid or incurred by the corporation in the taxable year that exceeds the amount calculated as follows:

SB521, s. 14 Section 14. 77.54 (57) (a) 5m. of the statutes is created to read:

SB521,7,22 77.54 (57) (a) 5m. "Silviculture" has the meaning given in s. 70.11 (27m) (a) 6.

SB521, s. 15 Section 15. 77.54 (57) (b) 1. of the statutes, as created by 2009 Wisconsin Act 28, is amended to read:

SB521,8,4 77.54 (57) (b) 1. Machinery and equipment, including attachments, parts, and accessories, that are sold to persons who are engaged primarily in manufacturing, silviculture, or biotechnology in this state and are used exclusively and directly in qualified research.

SB521, s. 16 Section 16. 77.54 (57) (b) 2. of the statutes, as created by 2009 Wisconsin Act 28, is amended to read:

SB521,8,11 77.54 (57) (b) 2. Tangible personal property or item or property under s. 77.52 (1) (b) or (c) that is sold to persons who are engaged primarily in manufacturing, silviculture, or biotechnology in this state, if the tangible personal property or item or property under s. 77.52 (1) (b) or (c) is consumed or destroyed or loses its identity while being used exclusively and directly in qualified research.

SB521, s. 17 Section 17. 77.54 (58) of the statutes is created to read:

SB521,8,23 77.54 (58) The sales price from the sales of and the storage, use, or other consumption of extended-range electric vehicles, as defined in s. 560.127 (1), that are licensed for highway use, including accessories and parts for such vehicles, and purchased during the period beginning on the effective date of this subsection .... [LRB inserts date], and ending on December 31, 2020, except that the exemption under this subsection that applies to batteries for extended-range electric vehicles ends on December 31, 2025. The exemption under this subsection applies regardless of whether the vehicles are sold new or used. The taxes imposed under this subchapter on the vehicles, accessories, and parts described under this subsection after the exemptions under this subsection expire shall be deposited into the transportation fund.

SB521, s. 18 Section 18. 110.20 of the statutes, as affected by 2009 Wisconsin Act .... (this act), is repealed.

SB521, s. 19 Section 19. 110.20 (8) (c) of the statutes is created to read:

SB521,9,5 110.20 (8) (c) Notwithstanding any other provision of this section, the department may not enter into any new contract under this section, or renew or extend any existing contract under this section, after the effective date of this paragraph .... [LRB inserts date].

SB521, s. 20 Section 20. 110.21 of the statutes is repealed.

SB521, s. 21 Section 21. 110.215 of the statutes is repealed.

SB521, s. 22 Section 22. 285.30 of the statutes is repealed.