MES&JK:nwn:rs
2009 - 2010 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2009 ASSEMBLY BILL 794
March 29, 2010 - Offered by Representatives Friske and Clark.
AB794-ASA1,1,5 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 a thermal biomass heating system.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB794-ASA1, s. 1 6Section 1. 71.05 (6) (a) 15. of the statutes, as affected by 2009 Wisconsin Acts
72 and 28, is amended to read:
AB794-ASA1,2,28 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
9(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s),
10(3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k), (6f), and (8r) and not passed through by a
11partnership, limited liability company, or tax-option corporation that has added that

1amount to the partnership's, company's, or tax-option corporation's income under s.
271.21 (4) or 71.34 (1k) (g).
AB794-ASA1, s. 2 3Section 2. 71.07 (6f) of the statutes is created to read:
AB794-ASA1,2,54 71.07 (6f) Thermal biomass heating systems credit. (a) Definitions. In this
5subsection:
AB794-ASA1,2,76 1. "Air quality standards" means all requirements under ch. 285 and 42 USC
77401
to 7671q.
AB794-ASA1,2,88 2. "Biomass" has the meaning given in s. 196.378 (1) (ar).
AB794-ASA1,2,99 3. "Claimant" means a person who files a claim under this subsection.
AB794-ASA1,2,1710 (b) Filing claims. Subject to the limitations provided in this subsection, a
11claimant may claim as a credit against the tax imposed under s. 71.02, up to the
12amount of those taxes, one of the following amounts that the claimant paid in the
13taxable year to purchase and install in the claimant's primary residence in this state
14or in the claimant's place of business in this state a stove, furnace, or boiler that
15generates heat from biomass by providing an energy efficiency conversion of at least
1675 percent and meets any air quality standards that apply to the stove, furnace, or
17boiler on the day on which the stove, furnace, or boiler is purchased:
AB794-ASA1,2,1818 1. For items that are installed in the claimant's primary residence in this state:
AB794-ASA1,2,2119 a. For taxable years beginning after December 31, 2010, and before January
201, 2013, with regard to the amounts paid to purchase and install a furnace or boiler,
21either 30 percent of such amounts or $3,600, whichever is less.
AB794-ASA1,2,2422 b. For taxable years beginning after December 31, 2010, and before January
231, 2013, with regard to the amounts paid to purchase and install a stove, either 50
24percent of such amounts or $2,500, whichever is less.
AB794-ASA1,3,3
1c. For taxable years beginning after December 31, 2012, and before January
21, 2015, with regard to the amounts paid to purchase and install a furnace or boiler,
3either 25 percent of such amounts or $3,000, whichever is less.
AB794-ASA1,3,64 d. For taxable years beginning after December 31, 2012, and before January
51, 2015, with regard to the amounts paid to purchase and install a stove, either 40
6percent of such amounts or $2,000, whichever is less.
AB794-ASA1,3,97 e. For taxable years beginning after December 31, 2014, and before January
81, 2017, with regard to the amounts paid to purchase and install a furnace or boiler,
9either 20 percent of such amounts or $2,400, whichever is less.
AB794-ASA1,3,1210 f. For taxable years beginning after December 31, 2014, and before January 1,
112017, with regard to the amounts paid to purchase and install a stove, either 30
12percent of such amounts or $1,500, whichever is less.
AB794-ASA1,3,1413 2. For items that are installed on property that is assessed as commercial
14property under s. 70.32 (2) (a) 2.:
AB794-ASA1,3,1715 a. For taxable years beginning after December 31, 2010, and before January
161, 2013, with regard to the amounts paid to purchase and install a furnace or boiler,
17either 30 percent of such amounts or $4,500, whichever is less.
AB794-ASA1,3,2018 b. For taxable years beginning after December 31, 2010, and before January
191, 2013, with regard to the amounts paid to purchase and install a stove, either 50
20percent of such amounts or $2,500, whichever is less.
AB794-ASA1,3,2321 c. For taxable years beginning after December 31, 2012, and before January
221, 2015, with regard to the amounts paid to purchase and install a furnace or boiler,
23either 25 percent of such amounts or $3,750, whichever is less.
AB794-ASA1,4,3
1d. For taxable years beginning after December 31, 2012, and before January
21, 2015, with regard to the amounts paid to purchase and install a stove, either 40
3percent of such amounts or $2,000, whichever is less.
AB794-ASA1,4,64 e. For taxable years beginning after December 31, 2014, and before January
51, 2017, with regard to the amounts paid to purchase and install a furnace or boiler,
6either 20 percent of such amounts or $3,000, whichever is less.
AB794-ASA1,4,97 f. For taxable years beginning after December 31, 2014, and before January 1,
82017, with regard to the amounts paid to purchase and install a stove, either 30
9percent of the such amounts or $1,500, whichever is less.
AB794-ASA1,4,1110 3. For items that are installed on property that is assessed as manufacturing
11property under s. 70.995:
AB794-ASA1,4,1412 a. For taxable years beginning after December 31, 2010, and before January
131, 2013, with regard to the amounts paid to purchase and install a furnace or boiler,
14either 30 percent of such amounts or $45,000, whichever is less.
AB794-ASA1,4,1715 b. For taxable years beginning after December 31, 2010, and before January
161, 2013, with regard to the amounts paid to purchase and install a stove, either 50
17percent of such amounts or $2,500, whichever is less.
AB794-ASA1,4,2018 c. For taxable years beginning after December 31, 2012, and before January
191, 2015, with regard to the amounts paid to purchase and install a furnace or boiler,
20either 25 percent of such amounts or $37,500, whichever is less.
AB794-ASA1,4,2321 d. For taxable years beginning after December 31, 2012, and before January
221, 2015, with regard to the amounts paid to purchase and install a stove, either 40
23percent of such amounts or $2,000, whichever is less.
AB794-ASA1,5,3
1e. For taxable years beginning after December 31, 2014, and before January
21, 2017, with regard to the amounts paid to purchase and install a furnace or boiler,
3either 20 percent of such amounts or $30,000, whichever is less.
AB794-ASA1,5,64 f. For taxable years beginning after December 31, 2014, and before January 1,
52017, with regard to the amounts paid to purchase and install a stove, either 30
6percent of such amounts or $1,500, whichever is less.
AB794-ASA1,5,97 (c) Limitations. 1. No credit may be claimed under this subsection by a
8part-year resident or a nonresident of this state for amounts paid to install a furnace,
9boiler, or stove in the claimant's primary residence in this state.
AB794-ASA1,5,1710 2. Partnerships, limited liability companies, and tax-option corporations may
11not claim the credit under this subsection, but the eligibility for, and the amount of,
12the credit are based on their payment of amounts under par. (b). A partnership,
13limited liability company, or tax-option corporation shall compute the amount of
14credit that each of its partners, members, or shareholders may claim and shall
15provide that information to each of them. Partners, members of limited liability
16companies, and shareholders of tax-option corporations may claim the credit in
17proportion to their ownership interests.
AB794-ASA1,5,2218 3. a. The maximum amount of the credits that may be claimed under this
19subsection for items installed in primary residences is $2,000,000 in 2011,
20$5,000,000 in 2012, $6,000,000 in 2013, $7,000,000 in 2014, $7,000,000 in 2015, and
21$6,000,000 in 2016, except that the department may allocate the amount of any
22unused credits from one year to another year.
AB794-ASA1,6,323 b. The maximum amount of the credits that may be claimed under this
24subsection and ss. 71.28 (6f) and 71.47 (6f) for items installed on commercial or
25manufacturing property is $1,000,000 in 2011, $2,000,000 in 2012, $3,000,000 in

12013, $4,000,000 in 2014, $4,000,000 in 2015, and $3,000,000 in 2016, except that
2the department may allocate the amount of any unused credits from one year to
3another year.
AB794-ASA1,6,64 4. The department may prorate the amount of the credits claimed under this
5subsection and ss. 71.28 (6f) and 71.47 (6f) so that the limitations under subd. 3. are
6not exceeded.
AB794-ASA1,6,87 (d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
8credit under s. 71.28 (4), applies to the credit under this subsection.
AB794-ASA1,6,149 2. If a credit computed under this subsection is not entirely offset against
10Wisconsin income or franchise taxes otherwise due, the unused balance may be
11carried forward and credited against Wisconsin income or franchise taxes otherwise
12due for the following 3 taxable years to the extent not offset by these taxes otherwise
13due in all intervening years between the year in which the expense was incurred and
14the year in which the carry-forward credit is claimed.
AB794-ASA1,6,1615 (e) Sunset. No new claim may be filed under this subsection for taxable years
16beginning after December 31, 2016.
AB794-ASA1, s. 3 17Section 3. 71.10 (4) (cf) of the statutes is created to read:
AB794-ASA1,6,1818 71.10 (4) (cf) The thermal biomass heating systems credit under s. 71.07 (6f).
AB794-ASA1, s. 4 19Section 4. 71.21 (4) of the statutes, as affected by 2009 Wisconsin Acts 2 and
2028, is amended to read:
AB794-ASA1,6,2421 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
22(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s), (3t), (3w),
23(5e), (5f), (5g), (5h), (5i), (5j), (5k), (6f), and (8r) and passed through to partners shall
24be added to the partnership's income.
AB794-ASA1, s. 5
1Section 5. 71.26 (2) (a) 4. of the statutes, as affected by 2009 Wisconsin Acts
22 and 28, is amended to read:
AB794-ASA1,7,83 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
4(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3t),
5(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (6f), and (8r) and not passed through by a
6partnership, limited liability company, or tax-option corporation that has added that
7amount to the partnership's, limited liability company's, or tax-option corporation's
8income under s. 71.21 (4) or 71.34 (1k) (g).
AB794-ASA1, s. 6 9Section 6. 71.28 (6f) of the statutes is created to read:
AB794-ASA1,7,1110 71.28 (6f) Thermal biomass heating systems credit. (a) Definitions. In this
11subsection:
AB794-ASA1,7,1312 1. "Air quality standards" means all requirements under ch. 285 and 42 USC
137401
to 7671q.
AB794-ASA1,7,1414 2. "Biomass" has the meaning given in s. 196.378 (1) (ar).
AB794-ASA1,7,1515 3. "Claimant" means a person who files a claim under this subsection.
AB794-ASA1,7,2316 (b) Filing claims. Subject to the limitations provided in this subsection, a
17claimant may claim as a credit against the tax imposed under s. 71.23, up to the
18amount of those taxes, one of the following amounts that the claimant paid in the
19taxable year to purchase and install in the claimant's place of business in this state
20a stove, furnace, or boiler that generates heat from biomass by providing an energy
21efficiency conversion of at least 75 percent and meets any air quality standards that
22apply to the stove, furnace, or boiler on the day on which the stove, furnace, or boiler
23is purchased:
AB794-ASA1,7,2524 1. For items that are installed on property that is assessed as commercial
25property under s. 70.32 (2) (a) 2.:
AB794-ASA1,8,3
1a. For taxable years beginning after December 31, 2010, and before January
21, 2013, with regard to the amounts paid to purchase and install a furnace or boiler,
3either 30 percent of such amounts or $4,500, whichever is less.
AB794-ASA1,8,64 b. For taxable years beginning after December 31, 2010, and before January
51, 2013, with regard to the amounts paid to purchase and install a stove, either 50
6percent of such amounts or $2,500, whichever is less.
AB794-ASA1,8,97 c. For taxable years beginning after December 31, 2012, and before January
81, 2015, with regard to the amounts paid to purchase and install a furnace or boiler,
9either 25 percent of such amounts or $3,750, whichever is less.
AB794-ASA1,8,1210 d. For taxable years beginning after December 31, 2012, and before January
111, 2015, with regard to the amounts paid to purchase and install a stove, either 40
12percent of such amounts or $2,000, whichever is less.
AB794-ASA1,8,1513 e. For taxable years beginning after December 31, 2014, and before January
141, 2017, with regard to the amounts paid to purchase and install a furnace or boiler,
15either 20 percent of such amounts or $3,000, whichever is less.
AB794-ASA1,8,1816 f. For taxable years beginning after December 31, 2014, and before January 1,
172017, with regard to the amounts paid to purchase and install a stove, either 30
18percent of the such amounts or $1,500, whichever is less.
AB794-ASA1,8,2019 2. For items that are installed on property that is assessed as manufacturing
20property under s. 70.995:
AB794-ASA1,8,2321 a. For taxable years beginning after December 31, 2010, and before January
221, 2013, with regard to the amounts paid to purchase and install a furnace or boiler,
23either 30 percent of such amounts or $45,000, whichever is less.
AB794-ASA1,9,3
1b. For taxable years beginning after December 31, 2010, and before January
21, 2013, with regard to the amounts paid to purchase and install a stove, either 50
3percent of such amounts or $2,500, whichever is less.
AB794-ASA1,9,64 c. For taxable years beginning after December 31, 2012, and before January
51, 2015, with regard to the amounts paid to purchase and install a furnace or boiler,
6either 25 percent of such amounts or $37,500, whichever is less.
AB794-ASA1,9,97 d. For taxable years beginning after December 31, 2012, and before January
81, 2015, with regard to the amounts paid to purchase and install a stove, either 40
9percent of such amounts or $2,000, whichever is less.
AB794-ASA1,9,1210 e. For taxable years beginning after December 31, 2014, and before January
111, 2017, with regard to the amounts paid to purchase and install a furnace or boiler,
12either 20 percent of such amounts or $30,000, whichever is less.
AB794-ASA1,9,1513 f. For taxable years beginning after December 31, 2014, and before January 1,
142017, with regard to the amounts paid to purchase and install a stove, either 30
15percent of such amounts or $1,500, whichever is less.
AB794-ASA1,9,2316 (c) Limitations. 1. Partnerships, limited liability companies, and tax-option
17corporations may not claim the credit under this subsection, but the eligibility for,
18and the amount of, the credit are based on their payment of amounts under par. (b).
19A partnership, limited liability company, or tax-option corporation shall compute
20the amount of credit that each of its partners, members, or shareholders may claim
21and shall provide that information to each of them. Partners, members of limited
22liability companies, and shareholders of tax-option corporations may claim the
23credit in proportion to their ownership interests.
AB794-ASA1,9,2624 2. The maximum amount of the credits that may be claimed under this
25subsection and ss. 71.07 (6f) and 71.47 (6f) for items installed on commercial or

1manufacturing property is $1,000,000 in 2011, $2,000,000 in 2012, $3,000,000 in
22013, $4,000,000 in 2014, $4,000,000 in 2015, and $3,000,000 in 2016, except that
3the department may allocate the amount of any unused credits from one year to
4another year.
AB794-ASA1,10,75 3. The department may prorate the amount of the credits claimed under this
6subsection and ss. 71.07 (6f) and 71.47 (6f) so that the limitations under subd. 2. are
7not exceeded.
AB794-ASA1,10,98 (d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit
9under sub. (4), applies to the credit under this subsection.
AB794-ASA1,10,1510 2. If a credit computed under this subsection is not entirely offset against
11Wisconsin income or franchise taxes otherwise due, the unused balance may be
12carried forward and credited against Wisconsin income or franchise taxes otherwise
13due for the following 3 taxable years to the extent not offset by these taxes otherwise
14due in all intervening years between the year in which the expense was incurred and
15the year in which the carry-forward credit is claimed.
AB794-ASA1,10,1716 (e) Sunset. No new claim may be filed under this subsection for taxable years
17beginning after December 31, 2016.
AB794-ASA1, s. 7 18Section 7. 71.30 (3) (af) of the statutes is created to read:
AB794-ASA1,10,1919 71.30 (3) (af) The thermal biomass heating systems credit under s. 71.28 (6f).
AB794-ASA1, s. 8 20Section 8. 71.34 (1k) (g) of the statutes, as affected by 2009 Wisconsin Acts 2
21and 28, is amended to read:
AB794-ASA1,10,2522 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
23corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy),
24(3), (3g), (3h), (3n), (3p), (3q), (3r), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (6f),
25and (8r) and passed through to shareholders.
AB794-ASA1, s. 9
1Section 9. 71.45 (2) (a) 10. of the statutes, as affected by 2009 Wisconsin Acts
22 and 28, is amended to read:
AB794-ASA1,11,93 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
4computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3w), (5e), (5f),
5(5g), (5h), (5i), (5j), (5k), (6f), and (8r) and not passed through by a partnership,
6limited liability company, or tax-option corporation that has added that amount to
7the partnership's, limited liability company's, or tax-option corporation's income
8under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47
9(1), (3), (3t), (4), (4m), and (5).
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