November 3, 2011 - Introduced by Representatives Mursau, Spanbauer,
Petrowski, Brooks, Bies
and Milroy, cosponsored by Senator Holperin.
Referred to Committee on Jobs, Economy and Small Business.
AB358,1,5 1An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a) 4., 71.34 (1k) (g), 71.45
2(2) (a) 10. and 77.92 (4); and to create 71.07 (6f), 71.10 (4) (cf), 71.28 (6f), 71.30
3(3) (af), 71.47 (6f) and 71.49 (1) (af) of the statutes; relating to: creating a
4nonrefundable individual and corporate income and franchise tax credit for
5purchasing and installing a thermal biomass heating system.
Analysis by the Legislative Reference Bureau
This bill creates a nonrefundable individual income tax credit, and a corporate
income and franchise tax credit, for the purchase and installation of a thermal
biomass heating system. Under the bill, for taxable years 2011 to 2016, a claimant
may claim a certain percentage of the amount the claimant pays for the purchase and
installation of a system in the claimant's primary residence or place of business.
Under the bill, a system is defined as a stove, furnace, or boiler that generates
heat from biomass and provides an energy efficiency conversion of at least 75
percent. Subject to a number of exceptions, such as an exception for garbage and for
certain nonvegetation-based waste, biomass is defined under the bill as a resource
that derives energy from wood or plant material or residue, biological waste, crops
grown for use as such a resource, or landfill gases.
The bill limits the total amount of credits that may be claimed. The Department
of Revenue may prorate the amount of credits claimed to ensure these limitations are
not exceeded, and may allocate unused credits from one year to another year. A
business that is not able to totally offset the credit it is due against income or

franchise taxes otherwise owed may carry forward the credit for the following three
taxable years. A business that has more than $5,000,000 in gross receipts in the
taxable year may not claim the credit.
No new credits may be claimed for taxable years beginning after December 31,
2016.
To be eligible for the credit, the system must comply with all state requirements
related to emissions of air contaminants, and the provisions of the federal Clean Air
Act, that apply to the system on the day it is purchased. The credit related to
purchasing a system for an individual's primary residence may not be claimed by a
nonresident or part-year resident of the state. Because the credit is nonrefundable,
it may be claimed only up to the amount of a taxpayer's income or franchise tax
liability.
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:
AB358, s. 1 1Section 1. 71.05 (6) (a) 15. of the statutes is amended to read:
AB358,2,72 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
3(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
4(3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k), (5r), (5rm), (6f), and (8r) and
5not passed through by a partnership, limited liability company, or tax-option
6corporation that has added that amount to the partnership's, company's, or
7tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
AB358, s. 2 8Section 2. 71.07 (6f) of the statutes is created to read:
AB358,2,109 71.07 (6f) Thermal biomass heating systems credit. (a) Definitions. In this
10subsection:
AB358,2,1211 1. "Air quality standards" means all requirements under ch. 285 and 42 USC
127401
to 7671q.
AB358,2,1313 2. "Biomass" has the meaning given in s. 196.378 (1) (ar).
AB358,2,1414 3. "Claimant" means a person who files a claim under this subsection.
AB358,3,3
14. "Stove" means a stove that is part of a system that generates heat from
2biomass and is not integrated into any other heating or cooling system or into duct
3work.
AB358,3,114 (b) Filing claims. Subject to the limitations provided in this subsection, a
5claimant may claim as a credit against the tax imposed under s. 71.02, up to the
6amount of those taxes, one of the following amounts that the claimant paid in the
7taxable year to purchase and install in the claimant's primary residence in this state
8or in the claimant's place of business in this state a stove, furnace, or boiler that
9generates heat from biomass by providing an energy efficiency conversion of at least
1075 percent and meets any air quality standards that apply to the stove, furnace, or
11boiler on the day on which the stove, furnace, or boiler is purchased:
AB358,3,1212 1. With regard to amounts paid to purchase and install a stove:
AB358,3,1413 a. For taxable years beginning after December 31, 2010, and before January
141, 2013, either 40 percent of such amounts or $1,200, whichever is less.
AB358,3,1615 b. For taxable years beginning after December 31, 2012, and before January
161, 2015, either 30 percent of such amounts or $1,050, whichever is less.
AB358,3,1817 c. For taxable years beginning after December 31, 2014, and before January
181, 2017, either 25 percent of such amounts or $1,000, whichever is less.
AB358,3,2019 2. With regard to amounts paid to purchase and install a furnace or boiler with
20an output that is less than or equal to 200,000 British thermal units:
AB358,3,2221 a. For taxable years beginning after December 31, 2010, and before January
221, 2013, either 40 percent of such amounts or $4,800, whichever is less.
AB358,3,2423 b. For taxable years beginning after December 31, 2012, and before January
241, 2015, either 30 percent of such amounts or $3,900, whichever is less.
AB358,4,2
1c. For taxable years beginning after December 31, 2014, and before January
21, 2017, either 25 percent of such amounts or $3,500, whichever is less.
AB358,4,43 3. With regard to amounts paid to purchase and install a furnace or boiler with
4an output that is greater than 200,000 British thermal units:
AB358,4,65 a. For taxable years beginning after December 31, 2010, and before January
61, 2013, either 40 percent of such amounts or $12,000, whichever is less.
AB358,4,87 b. For taxable years beginning after December 31, 2012, and before January
81, 2015, either 30 percent of such amounts or $10,500, whichever is less.
AB358,4,109 c. For taxable years beginning after December 31, 2014, and before January
101, 2017, either 25 percent of such amounts or $10,000, whichever is less.
AB358,4,1311 (c) Limitations. 1. No credit may be claimed under this subsection by a
12part-year resident or a nonresident of this state for amounts paid to install a furnace,
13boiler, or stove in the claimant's primary residence in this state.
AB358,4,1614 2. No credit may be claimed under this subsection for an item installed in the
15claimant's place of business if the claimant's business had more than $5,000,000 in
16gross receipts in the taxable year in which the item is installed.
AB358,4,2417 3. Partnerships, limited liability companies, and tax-option corporations may
18not claim the credit under this subsection, but the eligibility for, and the amount of,
19the credit are based on their payment of amounts under par. (b). A partnership,
20limited liability company, or tax-option corporation shall compute the amount of
21credit that each of its partners, members, or shareholders may claim and shall
22provide that information to each of them. Partners, members of limited liability
23companies, and shareholders of tax-option corporations may claim the credit in
24proportion to their ownership interests.
AB358,5,5
14. a. The maximum amount of the credits that may be claimed under this
2subsection and ss. 71.28 (6f) and 71.47 (6f) for the purchase and installation of stoves
3and the purchase and installation of furnaces and boilers with outputs less than or
4equal to 200,000 British thermal units is $2,500,000 in 2011, $3,500,000 in 2012,
5$3,000,000 in 2013, $3,000,000 in 2014, $2,500,000 in 2015, and $2,500,000 in 2016.
AB358,5,106 b. The maximum amount of the credits that may be claimed under this
7subsection and ss. 71.28 (6f) and 71.47 (6f) for the purchase and installation of stoves
8or furnaces and boilers with outputs greater than 200,000 British thermal units is
9$1,500,000 in 2011, $2,500,000 in 2012, $2,000,000 in 2013, $2,000,000 in 2014,
10$1,500,000 in 2015, and $1,500,000 in 2016.
AB358,5,1311 5. The department may prorate the amount of the credits claimed under this
12subsection and ss. 71.28 (6f) and 71.47 (6f) so that the limitations under subd. 4. are
13not exceeded.
AB358,5,1514 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
15credit under s. 71.28 (4), applies to the credit under this subsection.
AB358,5,2116 2. If a credit computed under this subsection is not entirely offset against
17Wisconsin income or franchise taxes otherwise due, the unused balance may be
18carried forward and credited against Wisconsin income or franchise taxes otherwise
19due for the following 3 taxable years to the extent not offset by these taxes otherwise
20due in all intervening years between the year in which the expense was incurred and
21the year in which the carry-forward credit is claimed.
AB358,5,2322 (e) Sunset. No new claim may be filed under this subsection for taxable years
23beginning after December 31, 2016.
AB358, s. 3 24Section 3. 71.10 (4) (cf) of the statutes is created to read:
AB358,5,2525 71.10 (4) (cf) The thermal biomass heating systems credit under s. 71.07 (6f).
AB358, s. 4
1Section 4. 71.21 (4) of the statutes is amended to read:
AB358,6,52 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
3(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s),
4(3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6f), and (8r) and passed
5through to partners shall be added to the partnership's income.
AB358, s. 5 6Section 5. 71.26 (2) (a) 4. of the statutes, as affected by 2011 Wisconsin Act 3,
7is amended to read:
AB358,6,148 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
9(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r),
10(3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6f), (8r), and
11(9s) and not passed through by a partnership, limited liability company, or
12tax-option corporation that has added that amount to the partnership's, limited
13liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k)
14(g).
AB358, s. 6 15Section 6. 71.28 (6f) of the statutes is created to read:
AB358,6,1716 71.28 (6f) Thermal biomass heating systems credit. (a) Definitions. In this
17subsection:
AB358,6,1918 1. "Air quality standards" means all requirements under ch. 285 and 42 USC
197401
to 7671q.
AB358,6,2020 2. "Biomass" has the meaning given in s. 196.378 (1) (ar).
AB358,6,2121 3. "Claimant" means a person who files a claim under this subsection.
AB358,6,2422 4. "Stove" means a stove that is part of a system that generates heat from
23biomass and is not integrated into any other heating or cooling system or into duct
24work.
AB358,7,8
1(b) Filing claims. Subject to the limitations provided in this subsection, a
2claimant may claim as a credit against the tax imposed under s. 71.23, up to the
3amount of those taxes, one of the following amounts that the claimant paid in the
4taxable year to purchase and install in the claimant's place of business in this state
5a stove, furnace, or boiler that generates heat from biomass by providing an energy
6efficiency conversion of at least 75 percent and meets any air quality standards that
7apply to the stove, furnace, or boiler on the day on which the stove, furnace, or boiler
8is purchased:
AB358,7,99 1. With regard to amounts paid to purchase and install a stove:
AB358,7,1110 a. For taxable years beginning after December 31, 2010, and before January
111, 2013, either 40 percent of such amounts or $1,200, whichever is less.
AB358,7,1312 b. For taxable years beginning after December 31, 2012, and before January
131, 2015, either 30 percent of such amounts or $1,050, whichever is less.
AB358,7,1514 c. For taxable years beginning after December 31, 2014, and before January
151, 2017, either 25 percent of such amounts or $1,000, whichever is less.
AB358,7,1716 2. With regard to amounts paid to purchase and install a furnace or boiler with
17an output that is less than or equal to 200,000 British thermal units:
AB358,7,1918 a. For taxable years beginning after December 31, 2010, and before January
191, 2013, either 40 percent of such amounts or $4,800, whichever is less.
AB358,7,2120 b. For taxable years beginning after December 31, 2012, and before January
211, 2015, either 30 percent of such amounts or $3,900, whichever is less.
AB358,7,2322 c. For taxable years beginning after December 31, 2014, and before January
231, 2017, either 25 percent of such amounts or $3,500, whichever is less.
AB358,7,2524 3. With regard to amounts paid to purchase and install a furnace or boiler with
25an output that is greater than 200,000 British thermal units:
AB358,8,2
1a. For taxable years beginning after December 31, 2010, and before January
21, 2013, either 40 percent of such amounts or $12,000, whichever is less.
AB358,8,43 b. For taxable years beginning after December 31, 2012, and before January
41, 2015, either 30 percent of such amounts or $10,500, whichever is less.
AB358,8,65 c. For taxable years beginning after December 31, 2014, and before January
61, 2017, either 25 percent of such amounts or $10,000, whichever is less.
AB358,8,147 (c) Limitations. 1. Partnerships, limited liability companies, and tax-option
8corporations may not claim the credit under this subsection, but the eligibility for,
9and the amount of, the credit are based on their payment of amounts under par. (b).
10A partnership, limited liability company, or tax-option corporation shall compute
11the amount of credit that each of its partners, members, or shareholders may claim
12and shall provide that information to each of them. Partners, members of limited
13liability companies, and shareholders of tax-option corporations may claim the
14credit in proportion to their ownership interests.
AB358,8,1715 2. No credit may be claimed under this subsection for an item installed in the
16claimant's place of business if the claimant's business had more than $5,000,000 in
17gross receipts in the taxable year in which the item is installed.
AB358,8,2218 3. a. The maximum amount of the credits that may be claimed under this
19subsection and ss. 71.07 (6f) and 71.47 (6f) for the purchase and installation of stoves
20and the purchase and installation of furnaces and boilers with outputs less than or
21equal to 200,000 British thermal units is $2,500,000 in 2011, $3,500,000 in 2012,
22$3,000,000 in 2013, $3,000,000 in 2014, $2,500,000 in 2015, and $2,500,000 in 2016.
AB358,9,223 b. The maximum amount of the credits that may be claimed under this
24subsection and ss. 71.07 (6f) and 71.47 (6f) for the purchase and installation of stoves
25or furnaces and boilers with outputs greater than 200,000 British thermal units is

1$1,500,000 in 2011, $2,500,000 in 2012, $2,000,000 in 2013, $2,000,000 in 2014,
2$1,500,000 in 2015, and $1,500,000 in 2016.
AB358,9,53 4. The department may prorate the amount of the credits claimed under this
4subsection and ss. 71.07 (6f) and 71.47 (6f) so that the limitations under subd. 3. are
5not exceeded.
AB358,9,76 (d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit
7under sub. (4), applies to the credit under this subsection.
AB358,9,138 2. If a credit computed under this subsection is not entirely offset against
9Wisconsin income or franchise taxes otherwise due, the unused balance may be
10carried forward and credited against Wisconsin income or franchise taxes otherwise
11due for the following 3 taxable years to the extent not offset by these taxes otherwise
12due in all intervening years between the year in which the expense was incurred and
13the year in which the carry-forward credit is claimed.
AB358,9,1514 (e) Sunset. No new claim may be filed under this subsection for taxable years
15beginning after December 31, 2016.
AB358, s. 7 16Section 7. 71.30 (3) (af) of the statutes is created to read:
AB358,9,1717 71.30 (3) (af) The thermal biomass heating systems credit under s. 71.28 (6f).
AB358, s. 8 18Section 8. 71.34 (1k) (g) of the statutes is amended to read:
AB358,9,2219 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
20corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
21(3), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j),
22(5k), (5r), (5rm), (6f), and (8r) and passed through to shareholders.
AB358, s. 9 23Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2011 Wisconsin Act
243
, is amended to read:
AB358,10,7
171.45 (2) (a) 10. By adding to federal taxable income the amount of credit
2computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn),
3(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6f), (8r), and (9s) and not passed
4through by a partnership, limited liability company, or tax-option corporation that
5has added that amount to the partnership's, limited liability company's, or
6tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and the amount
7of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).
AB358, s. 10 8Section 10. 71.47 (6f) of the statutes is created to read:
AB358,10,109 71.47 (6f) Thermal biomass heating systems credit. (a) Definitions. In this
10subsection:
AB358,10,1211 1. "Air quality standards" means all requirements under ch. 285 and 42 USC
127401
to 7671q.
AB358,10,1313 2. "Biomass" has the meaning given in s. 196.378 (1) (ar).
AB358,10,1414 3. "Claimant" means a person who files a claim under this subsection.
AB358,10,1715 4. "Stove" means a stove that is part of a system that generates heat from
16biomass and is not integrated into any other heating or cooling system or into duct
17work.
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