LRB-2534/1
JK:wlj:jf
1999 - 2000 LEGISLATURE
March 9, 2000 - Introduced by Senators Burke, Clausing and Risser, cosponsored
by Representatives Vrakas, Berceau, Bock, Boyle, Lassa, J. Lehman, Miller,
Musser, Plale, Plouff, Richards, Seratti, Turner and Kaufert. Referred to
Committee on Economic Development, Housing and Government Operations.
SB462,1,4
1An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a), 71.34 (1) (g), 71.45 (2)
2(a) 10. and 77.92 (4); and
to create 71.07 (5dd), 71.10 (4) (cr), 71.28 (5dd), 71.30
3(3) (dn), 71.47 (5dd) and 71.49 (1) (dn) of the statutes;
relating to: an income
4and franchise tax credit for purchasing energy efficient equipment.
Analysis by the Legislative Reference Bureau
This bill creates an income tax and franchise tax credit for purchasing energy
efficient equipment. Sole proprietorships, corporations and insurers may claim the
credit. Partnerships, limited liability companies and tax-option corporations
compute the credit but pass it on to the partners, members and shareholders in
proportion to their ownership interests. A person may claim a credit in an amount
equal to 10% of the costs the person paid or incurred to purchase energy efficient
equipment, but not exceeding $250 for each piece of equipment purchased, or 20%
of the costs the person paid or incurred to purchase energy efficient equipment, but
not exceeding $500 for each piece of equipment purchased. If the credit claimed by
a person exceeds the person's tax liability, the state will not issue a refund check, but
the person may carry forward any remaining credit to subsequent taxable years.
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:
SB462, s. 1
1Section
1. 71.05 (6) (a) 15. of the statutes is amended to read:
SB462,2,62
71.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
3(2di), (2dj), (2dL), (2dr), (2ds), (2dx)
and, (3s)
and (5dd) and not passed through by
4a partnership, limited liability company or tax-option corporation that has added
5that amount to the partnership's, company's or tax-option corporation's income
6under s. 71.21 (4) or 71.34 (1) (g).
SB462, s. 2
7Section
2. 71.07 (5dd) of the statutes is created to read:
SB462,2,88
71.07
(5dd) Energy efficient equipment credit. (a) In this subsection:
SB462,2,99
1. "Claimant" means a person who files a claim under this subsection.
SB462,2,1310
2. "Equipment" includes central air conditioners, furnaces, boilers,
11programmable thermostats, natural gas refrigeration pumps, ground source and air
12source heat pumps, natural gas water heaters, electric heat pump water heaters and
13fuel cells.
SB462,2,1514
(b) A claimant may claim as a credit against the tax imposed under s. 71.02 any
15of the following:
SB462,2,1816
1. An amount equal to 10% of the costs paid or incurred by the claimant to
17purchase equipment with a seasonal energy efficiency ratio of at least 12.0, but not
18exceeding $250 for each piece of equipment purchased.
SB462,2,2119
2. An amount equal to 20% of the costs paid or incurred by the claimant to
20purchase equipment with a seasonal energy efficiency ratio of at least 15.0., but not
21exceeding $500 for each piece of equipment purchased.
SB462,2,2322
(c) The carry-over provisions of s. 71.28 (4) (e) and (f), as they apply to the credit
23under s. 71.28 (4), apply to the credit under this subsection.
SB462,3,624
(d) Partnerships, limited liability companies and tax-option corporations may
25not claim the credit under this subsection, but the eligibility for, and the amount of,
1the credit are based on the costs paid or incurred under par. (b). A partnership,
2limited liability company or tax-option corporation shall compute the amount of
3credit that each of its partners, members or shareholders may claim and shall
4provide that information to each of them. Partners, members of limited liability
5companies and shareholders of tax-option corporations may claim the credit in
6proportion to their ownership interest.
SB462,3,87
(e) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4),
8applies to the credit under this subsection.
SB462, s. 3
9Section
3. 71.10 (4) (cr) of the statutes is created to read:
SB462,3,1010
71.10
(4) (cr) The energy efficient equipment credit under s. 71.07 (5dd).
SB462, s. 4
11Section
4. 71.21 (4) of the statutes is amended to read:
SB462,3,1412
71.21
(4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
13(2dj), (2dL), (2ds), (2dx)
and, (3s)
and (5dd) and passed through to partners shall be
14added to the partnership's income.
SB462, s. 5
15Section
5. 71.26 (2) (a) of the statutes is amended to read:
SB462,4,616
71.26
(2) (a)
Corporations in general. The "net income" of a corporation means
17the gross income as computed under the
internal revenue code Internal Revenue
18Code as modified under sub. (3) minus the amount of recapture under s. 71.28 (1di)
19plus the amount of credit computed under s. 71.28 (1) and (3) to (5) plus the amount
20of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds)
and, (1dx)
21and (5dd) and not passed through by a partnership, limited liability company or
22tax-option corporation that has added that amount to the partnership's, limited
23liability company's or tax-option corporation's income under s. 71.21 (4) or 71.34 (1)
24(g) plus the amount of losses from the sale or other disposition of assets the gain from
25which would be wholly exempt income, as defined in sub. (3) (L), if the assets were
1sold or otherwise disposed of at a gain and minus deductions, as computed under the
2internal revenue code Internal Revenue Code as modified under sub. (3), plus or
3minus, as appropriate, an amount equal to the difference between the federal basis
4and Wisconsin basis of any asset sold, exchanged, abandoned or otherwise disposed
5of in a taxable transaction during the taxable year, except as provided in par. (b) and
6s. 71.45 (2) and (5).
SB462, s. 6
7Section
6. 71.28 (5dd) of the statutes is created to read:
SB462,4,88
71.28
(5dd) Energy efficient equipment credit. (a) In this subsection:
SB462,4,99
1. "Claimant" means a person who files a claim under this subsection.
SB462,4,1310
2. "Equipment" includes central air conditioners, furnaces, boilers,
11programmable thermostats, natural gas refrigeration pumps, ground source and air
12source heat pumps, natural gas water heaters, electric heat pump water heaters and
13fuel cells.
SB462,4,1514
(b) A claimant may claim as a credit against the tax imposed under s. 71.23 any
15of the following:
SB462,4,1816
1. An amount equal to 10% of the costs paid or incurred by the claimant to
17purchase equipment with a seasonal energy efficiency ratio of at least 12.0, but not
18exceeding $250 for each piece of equipment purchased.
SB462,4,2119
2. An amount equal to 20% of the costs paid or incurred by the claimant to
20purchase equipment with a seasonal energy efficiency ratio of at least 15.0., but not
21exceeding $500 for each piece of equipment purchased.
SB462,4,2322
(c) The carry-over provisions of sub. (4) (e) and (f), as they apply to the credit
23under sub. (4), apply to the credit under this subsection.
SB462,5,624
(d) Partnerships, limited liability companies and tax-option corporations may
25not claim the credit under this subsection, but the eligibility for, and the amount of,
1the credit are based on the costs paid or incurred under par. (b). A partnership,
2limited liability company or tax-option corporation shall compute the amount of
3credit that each of its partners, members or shareholders may claim and shall
4provide that information to each of them. Partners, members of limited liability
5companies and shareholders of tax-option corporations may claim the credit in
6proportion to their ownership interest.
SB462,5,87
(e) Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies
8to the credit under this subsection.
SB462, s. 7
9Section
7. 71.30 (3) (dn) of the statutes is created to read:
SB462,5,1010
71.30
(3) (dn) The energy efficient equipment credit under s. 71.28 (5dd).
SB462, s. 8
11Section
8. 71.34 (1) (g) of the statutes is amended to read:
SB462,5,1412
71.34
(1) (g) An addition shall be made for credits computed by a tax-option
13corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx)
and, (3)
and
14(5dd) and passed through to shareholders.
SB462, s. 9
15Section
9. 71.45 (2) (a) 10. of the statutes is amended to read:
SB462,5,2116
71.45
(2) (a) 10. By adding to federal taxable income the amount of credit
17computed under s. 71.47 (1dd) to (1dx)
and (5dd) and not passed through by a
18partnership, limited liability company or tax-option corporation that has added that
19amount to the partnership's, limited liability company's or tax-option corporation's
20income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under
21s. 71.47 (1), (3), (4) and (5).
SB462, s. 10
22Section
10. 71.47 (5dd) of the statutes is created to read:
SB462,5,2323
71.47
(5dd) Energy efficient equipment credit. (a) In this subsection:
SB462,5,2424
1. "Claimant" means a person who files a claim under this subsection.
SB462,6,4
12. "Equipment" includes central air conditioners, furnaces, boilers,
2programmable thermostats, natural gas refrigeration pumps, ground source and air
3source heat pumps, natural gas water heaters, electric heat pump water heaters and
4fuel cells.
SB462,6,65
(b) A claimant may claim as a credit against the tax imposed under s. 71.43 any
6of the following:
