Scope Statements
Agriculture, Trade and Consumer Protection
Subject
Revises Chapter
Comm 138, relating to woody biomass harvesting and processing credit.
Objective of the Rule
The rules proposed would implement the provisions of
2009 Wisconsin Act 269 that relate to certifying applicants and allocating to them tax credits for equipment which is utilized primarily to harvest or process woody biomass for use as a fuel or as a component of fuel.
Policy Analysis
The Department has rules for several other programs associated with tax credits, but none of those programs are targeted specifically to equipment for harvesting or processing woody biomass.
The rules are expected to address (1) the eligibility requirements for applicants; (2) the documentation that must be submitted by applicants to become certified as eligible for the credit, and to receive acceptance of incurred expenses; (3) the Department's response to the submitted documentation; and (4) filing a claim with the Department of Revenue for the tax credit.
The alternative of not promulgating these rules would conflict with the directive in section
560.209 (4) of the Statutes – as created by
2009 Wisconsin Act 269 – that requires this promulgation, in consultation with the Department of Revenue.
Statutory Authority
Comparison with Federal Regulations
The 2008 Food, Conservation and Energy Act, P.L.
110-234, included a new, temporary tax credit that is available to qualified cellulosic biofuel producers, some of whom may process woody biomass into a material that is used to produce the biofuel. The credit is $1.01 per gallon and is available through December 31, 2012.
Entities Affected by the Rule
The rules may affect entities that incur expenses for equipment which is utilized primarily to harvest or process woody biomass for use as a fuel or as a component of fuel.
Estimate of Time Needed to Develop the Rule
The staff time needed to develop the rules is expected to range from 80 to 120 hours, depending upon the associated complexity. This includes research, rule drafting, and processing the rules through public hearings, legislative review, and adoption. There are no other resources necessary to promulgate the rules.
