Wisconsin Incentives and Laws

Last Updated November 2006

State Incentives

Idle Reduction Grant Program

The Wisconsin Department of Commerce provides grants to freight motor carriers headquartered in Wisconsin to purchase and install idle reduction units on heavy-duty tractor trucks produced in Model Year 1998 or later. Eligible applicants will receive a reimbursement of 70% for the cost of idle reduction equipment and installation. Grants are not available for idle reduction equipment purchased or installed prior to July 1, 2006. The application period opens on July 1 of every year, and the program will award one million dollars per year in grants through June 2011. (Reference Wisconsin Statutes 560.125)

Point of Contact

Jean Beckwith
Bureau of Entrepreneurship
Wisconsin Department of Commerce
Phone (608) 261-2517
jean.beckwith@wisconsin.gov
http://www.commerce.state.wi.us/bd/bd-ca-diesel-grant-program.html
 

Vehicle Battery and Engine Research Tax Credits

For taxable years beginning after June 30, 2007, any corporation involved in qualified research is allowed a tax credit equal to 10% of the corporation's qualified research expenses incurred by the corporation for research conducted in this state for the taxable year. Qualified research only includes the design and manufacturing of energy efficient lighting systems, building automation and control systems, and automotive batteries for use in hybrid-electric vehicles that reduce the demand for natural gas or electricity or improve the efficiency of its use. Qualified research also includes research related to designing internal combustion engines (including substitute products such as fuel cell, electric, and hybrid drives) for vehicles, including expenses related to designing vehicles that are powered by such engines and improving production processes for such engines and vehicles.

Corporations may also claim tax credits in the amount equal to 5% of the amount paid or incurred by that corporation during the taxable year to construct and equip new facilities or expand existing facilities used in Wisconsin for qualified research. (Reference Wisconsin Statutes 71.28(4)(ab 2), 71.28 (ad 2 and 3), and 71.28(5)(ad))

Alternative Fuel Vehicle (AFV) Tax Deduction

The Wisconsin Department of Revenue offers a state AFV tax deduction identical to the federal AFV tax deduction. Taxpayers who placed AFVs into service in 2002 and 2003 are entitled to the full deduction. The deduction is reduced by 25% for vehicles placed in service in 2004, by 50% for vehicles in 2005, and by 75% for vehicles in 2006. No deduction is available for clean fuel vehicles placed in service in 2007. The full deduction is $50,000 for any truck or van with a gross vehicle weight rating (GVWR) of at least 26,000 pounds (lbs.) or a bus with seating capacity of at least 20 adults. The deduction is $5,000 for a truck or van with a GVWR greater than 10,000 lbs. and $2,000 for vehicles under 10,000 lbs.

Point of Contact

Excise Tax Section
Wisconsin Department of Revenue
Phone (608) 266-3223 or (608) 266-0064
Fax (608) 261-7049
excise@dor.state.wi.us
http://www.dor.state.wi.us/pubs/mf-106.pdf
 

Biodiesel Fuel Use Incentive

The Wisconsin Department of Public Instruction (DPI) may provide aid to school districts that use biodiesel fuel for school bus transportation to cover the incremental cost of using biodiesel as compared to the cost of petroleum diesel fuel. If, in any fiscal year, insufficient monies are available to provide school districts with the full amount of reimbursement for which a school district qualifies, DPI must prorate the available monies among the entitled school districts on a per pupil basis. (Reference Wisconsin Statutes 121.575)

Alternative Fuel Tax Refund for Taxis

A person using alternative fuel to operate a taxi used to transport passengers may be reimbursed and repaid the amount of Wisconsin fuel tax paid. Refund claims must be filed within one year of the date the fuel is purchased and must be for a minimum 100 gallons of alternative fuel. (Reference Wisconsin Statutes 78.75(1m)(a)1)

State Laws and Regulations

Petroleum Use Reduction

Executive Order 141 directs the Wisconsin Department of Administration (DOA) to require through its fleet management policy that all state agencies reduce the use of petroleum-based gasoline in state-owned vehicles by 20% in 2010 and 50% in 2015, and reduce the use of petroleum-based diesel fuel for vehicles that operate on diesel by 10% in 2010 and 25% in 2015. (Reference Executive Order 141, 2006)

Renewable Fuels Use and Promotion

The Wisconsin Department of Agriculture (DOA) is directed to develop an awareness plan designed to facilitate the use of renewable fuels in the State’s flexible fuel vehicle (FFV) fleet. The plan should ensure the following: that all FFVs in the State’s fleet are identifiable; that all state employees driving FFVs are aware of the renewable fuel refueling stations nearby; and that all state employees strive to use renewable fuels when operating FFVs and diesel powered vehicles in the fleet, whenever practical and cost effective. The DOA and the Wisconsin Department of Agricultural, Trade and Consumer Protection are also directed to actively pursue the establishment of additional renewable fuel refueling facilities at public retail outlets. (Reference Executive Order 141, 2006)

Biodiesel Definition

Effective July 1, 2007, biodiesel is defined as a fuel that is comprised of monoalkyl esters of long chain fatty acids derived from vegetable oils or animal fats, either in pure form or mixed in any combination with petroleum-based diesel fuel. The definition of biodiesel is expanded for purposes of existing provisions that encourage the use of alternative fuels in state-owned vehicles. (Reference Wisconsin Statutes 16.045(1)(c))

Biodiesel Labeling Requirement

Sellers of biodiesel fuel are prohibited from advertising or offering for sale fuel labeled as pure biodiesel unless the fuel 1) contains no other type of petroleum product, 2) the fuel is registered as biodiesel fuel with the federal government, and 3) the fuel meets all of the applicable requirements of the American Society for Testing and Materials (ASTM). Sellers are also prohibited from selling fuel labeled as a biodiesel blend unless the fuel contains at least 2% pure biodiesel fuel and meets all applicable ASTM requirements that are applicable to biodiesel blends. (Reference Wisconsin Statutes 168.14(2))

Biofuels Development

The Governor’s Executive Order 101 established the Consortium on Biobased Industry. Additionally, the Executive Order directs the Secretaries of various agencies to establish Consortium members to recommend policy and commercialization strategies for state goals that promote development and use of biobased products and bioenergy using federal and state programs, in part to reduce Wisconsin’s dependence on foreign oil. Please refer to the Consortium Web site (http://bioeconomy.wi.gov/) to view the final report on findings and recommendations submitted to the Governor. (Reference Executive Order 101, 2005)

Alternative Fuel Vehicle Acquisition Requirements

The Wisconsin Department of Administration (DOA) must require all state employees to utilize hybrid electric vehicles or vehicles that operate on gasohol or alternative fuel for all state-owned or state-leased motor vehicles whenever such utilization is feasible. The DOA must also encourage the use of gasohol and alternative fuels by officers and employees who use personal motor vehicles on state business and by residents of Wisconsin in general. (Reference Wisconsin Statutes 16.045)

Low Emission Vehicle Acquisition Requirement

The Clean Fuel Fleet Program (CFFP), administered by the Wisconsin Department of Natural Resources, affects the six-county (Milwaukee, Waukesha, Ozaukee, Washington, Racine, and Kenosha) severe ozone non-attainment area. The CFFP requires fleets in Southeastern Wisconsin to purchase a specific percentage of low emission vehicles. The CFFP applies to both public and private fleets based on fleet size, vehicle weight and fuel characteristics. Fleets can earn credits, but are responsible for calculating and trading.

Point of Contact

Jessica Lawent
Air Quality Program Specialist
Wisconsin Department of Natural Resources, Clean Fuel Fleet Program
Phone (414) 263-8653
Fax (414) 263-8550
jessica.lawent@wisconsin.gov
http://www.dnr.state.wi.us/org/aw/air/reg/cff/cff.htm
 

Point of Contact

Muhammed Islam
Vehicle Emissions Engineer
Wisconsin Department of Natural Resources, Clean Fuel Fleet Program
Phone (608) 264-9219
Fax (608) 267-0560
muhammed.islam@wisconsin.gov
http://www.dnr.state.wi.us/org/aw/air/reg/cff/cff.htm
 

Alternative Fuels Tax

A state excise tax, based on the standard number of British thermal units per gallon generated by each alternative fuel, is imposed on the use of alternative fuels. No tax is imposed on alternative fuels used by vehicles for urban mass transportation of passengers. (Reference Wisconsin Statutes 78.40)

Alternative Fuel Tax Exemption

No county, city, village, town, or other political subdivision is allowed to levy or collect any excise, license, privilege, or occupational tax upon motor vehicle fuel or alternative fuels, or upon the buying, selling, handling, or consuming of motor vehicle fuel or alternative fuels. (Reference Wisconsin Statutes 78.82)

Alternative Fuel License

Any person acting as an alternative fuels dealer must hold a valid alternative fuels license and certificate. Except for alternative fuels delivered by an alternative fuels dealer into a fuel supply tank of any motor vehicle in the state, no person may use alternative fuels in the state unless the person holds a valid alternative fuels license issued by the Wisconsin Department of Administration or unless the alternative fuel has been delivered by an authorized supplier. (Reference Wisconsin Statutes 78.47)

Neighborhood Electric Vehicle (NEV) Access to Roadways

An NEV is defined as a self-propelled motor vehicle that has successfully completed the NEV America test program conducted by the U.S. Department of Energy, and conforms to the definition and requirements for low-speed vehicles as adopted in the Federal Motor Vehicle Safety standards for low-speed vehicles under 49 Code of Federal Regulations 571.3 (b) and 571.500. A golf cart is not an NEV. The governing body of any city, town, or village may by ordinance allow the use of an NEV on a roadway that has a speed limit of 35 miles per hour or less. (Reference Wisconsin Statutes 349.26)

Utilities/Private Incentives

Natural Gas Infrastructure and Vehicle Technical Assistance

We Energies provides project management for the development of compressed natural gas (CNG) refueling stations and for natural gas vehicle (NGV) purchases for fleets. The company works with the Wisconsin Clean Cities Southeast Area, Inc., Coalition and other grant sources to develop outside funding to assist with such projects. We Energies offers technical assistance regarding CNG refueling stations and NGVs.

Point of Contact

Bob Reagan
Project Manager
We Energies
Phone (414) 221-2284
Fax (414) 221-2851
bob.reagan@we-energies.com
 

Wisconsin Points of Contact: