LRB-4040/1
JK:kjf:pg
2007 - 2008 LEGISLATURE
February 26, 2008 - Introduced by Representatives Petrowski, Berceau, Bies,
Molepske, Montgomery, Musser, A. Ott, Sinicki and Tauchen, cosponsored by
Senators Hansen and Lassa. Referred to Committee on Transportation.
AB886,1,5
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., 77.92 (4) and 560.7995 (3) (b); and
to create 71.07 (3x), 71.10 (4) (cs),
371.28 (3x), 71.30 (3) (cs), 71.47 (3x) and 71.49 (1) (cs) of the statutes;
relating
4to: an income and franchise tax credit for diesel engines that are used in
5commercial motor vehicles and that emit lower levels of nitrogen oxide.
Analysis by the Legislative Reference Bureau
This bill creates an income and franchise tax credit for the purchase of diesel
engines that emit reduced levels of nitrogen oxide and are used in commercial motor
vehicles that transport property or passengers and that, generally, weigh more than
26,000 pounds. The amount that a person may claim as a credit in the taxable year
depends on how many commercial motor vehicles the person owns in the 12 months
preceding the purchase of the diesel engine for which the credit is claimed. A person
who wishes to claim the credit must first apply to the Department of Revenue. The
total credit amount that all taxpayers may claim is $1,000,000 in fiscal year 2008-09.
This bill also reduces the total amount of credits that may be claimed under the
airport development zone program for all taxable years from $9,000,000 to
$8,000,000.
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:
AB886,2,83
71.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
4(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3h), (3n), (3p), (3s), (3t), (3w),
(3x), 5(5e), (5f), (5h), (5i), (5j), and (5k) and not passed through by a partnership, limited
6liability company, or tax-option corporation that has added that amount to the
7partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or
871.34 (1) (g).
AB886, s. 2
9Section
2. 71.07 (3x) of the statutes is created to read:
AB886,2,1010
71.07
(3x) Truck engine credit. (a)
Definitions. In this subsection:
AB886,2,1111
1. "Claimant" means a person who files a claim under this subsection.
AB886,2,1712
2. "Qualified diesel engine" means a diesel engine that is purchased in this
13state and certified by the federal environmental protection agency as emitting
14nitrogen oxides at a rate that does not exceed 1.1 grams per brake horsepower-hour
15for diesel engines purchased after December 31, 2007, and before January 1, 2010,
16and 0.2 grams per brake horsepower-hour for diesel engines purchased after
17December 31, 2010, and before January 1, 2013.
AB886,2,2018
3. "Qualified truck" means a commercial motor vehicle, as defined in s. 340.01
19(8) (a) or (b), that is used exclusively in the claimant's business, if that business has
20its headquarters in this state.
AB886,3,2
14. "Used exclusively" means used to the exclusion of all other uses except for
2use not exceeding 5 percent of total use.
AB886,3,83
(b)
Filing claims. Subject to the limitations provided in this subsection, for
4taxable years beginning after December 31, 2007, and before January 1, 2013, a
5claimant may claim as a credit against the tax imposed under s. 71.02, up to the
6amount of those taxes, the following amounts for each qualified diesel engine
7purchased by the claimant in the taxable year for use in a qualified truck owned by
8the claimant:
AB886,3,119
1. If the claimant owns at least one qualified truck, but no more than 10
10qualified trucks, in the 12 months immediately preceding the purchase of the
11qualified engine for which a credit is claimed, $1,500.
AB886,3,1412
2. If the claimant owns no less than 11 qualified trucks, but no more than 100
13qualified trucks, in the 12 months immediately preceding the purchase of the
14qualified engine for which a credit is claimed, $1,300.
AB886,3,1715
3. If the claimant owns more than 100 qualified trucks in the 12 months
16immediately preceding the purchase of the qualified engine for which a credit is
17claimed, $1,200.
AB886,3,1918
(c)
Limitations. 1. The amount of the credit claimed by any one claimant may
19not exceed $125,000 in the taxable year for which the credit is claimed.
AB886,3,2220
2. The maximum amount of all credits that may be claimed under par. (b) 1. and
212. and ss. 71.28 (3x) (b) 1. and 2. and 71.47 (3x) (b) 1. and 2. is $500,000 in fiscal year
222008-09.
AB886,3,2423
3. The maximum amount of all credits that may be claimed under par. (b) 3. and
24ss. 71.28 (3x) (b) 3. and 71.47 (3x) (b) 3. is $500,000 in fiscal year 2008-09.
AB886,4,5
14. No person may claim a credit under this subsection unless the person first
2applies for the credit with the department, in the manner prescribed by the
3department. The department shall allocate the credits to all eligible applicants in
4the order in which the applications are received and may adjust the amount of any
5credit if the total amount allocated would exceed any limit under subds. 1. to 3.
AB886,4,86
5. No credit may be allowed under this subsection unless the claimant includes
7with the claimant's return a copy of the verification from the department that the
8claimant may claim a credit under this subsection.
AB886,4,169
6. Partnerships, limited liability companies, and tax-option corporations may
10not claim the credit under this subsection, but the eligibility for, and the amount of,
11the credit are based on their payment of amounts under par. (b). A partnership,
12limited liability company, or tax-option corporation shall compute the amount of
13credit that each of its partners, members, or shareholders may claim and shall
14provide that information to each of them. Partners, members of limited liability
15companies, and shareholders of tax-option corporations may claim the credit in
16proportion to their ownership interests.
AB886,4,1817
(d)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
18s. 71.28 (4), applies to the credit under this subsection.
AB886, s. 3
19Section
3. 71.10 (4) (cs) of the statutes is created to read:
AB886,4,2020
71.10
(4) (cs)
Truck engine credit under s. 71.07 (3x).
AB886,5,223
71.21
(4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
24(2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3h), (3n), (3p), (3s), (3t), (3w),
(3x), (5e), (5f), (5g),
1(5h), (5i), (5j), and (5k) and passed through to partners shall be added to the
2partnership's income.
AB886,5,225
71.26
(2) (a)
Corporations in general. The "net income" of a corporation means
6the gross income as computed under the Internal Revenue Code as modified under
7sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
8computed under s. 71.28 (1), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c)
97., the amount of the credit under s. 71.28 (3) that the taxpayer added to income
10under this paragraph at the time that the taxpayer first claimed the credit plus the
11amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm),
12(1ds), (1dx), (3g), (3h), (3n), (3p), (3t), (3w),
(3x), (5e), (5f), (5g), (5h), (5i), (5j), and (5k)
13and not passed through by a partnership, limited liability company, or tax-option
14corporation that has added that amount to the partnership's, limited liability
15company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus
16the amount of losses from the sale or other disposition of assets the gain from which
17would be wholly exempt income, as defined in sub. (3) (L), if the assets were sold or
18otherwise disposed of at a gain and minus deductions, as computed under the
19Internal Revenue Code as modified under sub. (3), plus or minus, as appropriate, an
20amount equal to the difference between the federal basis and Wisconsin basis of any
21asset sold, exchanged, abandoned, or otherwise disposed of in a taxable transaction
22during the taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).
AB886, s. 6
23Section
6. 71.28 (3x) of the statutes is created to read:
AB886,5,2424
71.28
(3x) Truck engine credit. (a)
Definitions. In this subsection:
AB886,5,2525
1. "Claimant" means a person who files a claim under this subsection.
AB886,6,6
12. "Qualified diesel engine" means a diesel engine that is purchased in this
2state and certified by the federal environmental protection agency as emitting
3nitrogen oxides at a rate that does not exceed 1.1 grams per brake horsepower-hour
4for diesel engines purchased after December 31, 2007, and before January 1, 2010,
5and 0.2 grams per brake horsepower-hour for diesel engines purchased after
6December 31, 2010, and before January 1, 2013.
AB886,6,97
3. "Qualified truck" means a commercial motor vehicle, as defined in s. 340.01
8(8) (a) or (b), that is used exclusively in the claimant's business, if that business has
9its headquarters in this state.
AB886,6,1110
4. "Used exclusively" means used to the exclusion of all other uses except for
11use not exceeding 5 percent of total use.
AB886,6,1712
(b)
Filing claims. Subject to the limitations provided in this subsection, for
13taxable years beginning after December 31, 2007, and before January 1, 2013, a
14claimant may claim as a credit against the tax imposed under s. 71.23, up to the
15amount of those taxes, the following amounts for each qualified diesel engine
16purchased by the claimant in the taxable year for use in a qualified truck owned by
17the claimant:
AB886,6,2018
1. If the claimant owns at least one qualified truck, but no more than 10
19qualified trucks, in the 12 months immediately preceding the purchase of the
20qualified engine for which a credit is claimed, $1,500.
AB886,6,2321
2. If the claimant owns no less than 11 qualified trucks, but no more than 100
22qualified trucks, in the 12 months immediately preceding the purchase of the
23qualified engine for which a credit is claimed, $1,300.
AB886,7,3
13. If the claimant owns more than 100 qualified trucks in the 12 months
2immediately preceding the purchase of the qualified engine for which a credit is
3claimed, $1,200.
AB886,7,54
(c)
Limitations. 1. The amount of the credit claimed by any one claimant may
5not exceed $125,000 in the taxable year for which the credit is claimed.
AB886,7,86
2. The maximum amount of all credits that may be claimed under par. (b) 1. and
72. and ss. 71.07 (3x) (b) 1. and 2. and 71.47 (3x) (b) 1. and 2. is $500,000 in fiscal year
82008-09.
AB886,7,109
3. The maximum amount of all credits that may be claimed under par. (b) 3. and
10ss. 71.07 (3x) (b) 3. and 71.47 (3x) (b) 3. is $500,000 in fiscal year 2008-09.
AB886,7,1511
4. No person may claim a credit under this subsection unless the person first
12applies for the credit with the department, in the manner prescribed by the
13department. The department shall allocate the credits to all eligible applicants in
14the order in which the applications are received and may adjust the amount of any
15credit if the total amount allocated would exceed any limit under subds. 1. to 3.
