2. A direct current wind turbine generator that is rated by the manufacturer to produce at least 250 watts of direct current at a wind speed of 25 miles per hour and produces alternating current as described in par. (a).
Example:
A direct current wind turbine generator is rated by the manufacturer to produce at least 250 watts of direct current with a wind speed of 25 miles per hour. The generator is connected to an inverter that modifies the direct current to alternating current prior to the direct current being stored, used, consumed, or sold by the producer. The generator, inverter, and the property used to convey the direct current from the generator to the inverter qualify for exemption.
3. A direct current wind turbine generator that produces alternating current as described in par. (a) of at least 200 watts as measured at the inverter under normal operating conditions with a wind speed of no more than 25 miles per hour.
4. A solar thermal collector with an output rating of at least 600 British thermal units per day, as determined by the Solar Rating and Certification Corporation, that is normally in service every day throughout the year.
5. A photovoltaic cell, module, or array with a standard test condition output rating of at least 250 watts of direct current that produces alternating current as described in par. (a).
6. A direct current gas powered generator that meets the requirement in par. (b) and produces alternating current as described in par. (a) of at least 200 watts as measured at the inverter when producing direct current under its normal operating conditions.
7. A gas fueled furnace, space heater, or water heater that meets the requirement in par. (b) and can be expected to consume gas in an amount equivalent to at least 600 British thermal units per day throughout the year.
Example:
Gas generated by the anaerobic digestion of animal manure or agricultural waste is used solely as the power source for a space heater and a water heater. Both products, when in use, produce over 600 British thermal units per day. The water heater is used every day of the year while the space heater is used only during the months of October through April. The water heater qualifies for exemption, the space heater does not.
(d) The exemption under sub. (1) (a) may be claimed by the consumer of the product who purchases the product as tangible personal property. A contractor who will purchase, furnish, and install a product which will become real property when installed is the consumer of the product, and may provide its supplier with a properly completed exemption certificate, claiming the product is exempt under s.
77.54 (56)
, Stats. A contractor who will furnish and install a product that will remain tangible personal property when installed may purchase a product without tax for resale. The purchaser may then issue the contractor an exemption certificate, claiming the product is exempt under s.
77.54 (56) (a)
, Stats.
Note:
See s.
Tax 11.68 (4)
,
(5)
, and
(6)
for information on the determination of the classification of property after installation.
(6)
Exemption for energy produced by a product.
(a) The exemption under sub. (1) (b) applies to a direct sale from the producer of electricity or energy to the consumer of the same electricity or energy where all of the following apply:
1. The electricity or energy is produced by a product that qualifies for exemption under sub. (1) (a).
2. The sale does not qualify for exemption under s.
77.54 (30)
, Stats.
Note:
Section
77.54 (30) (a)
, Stats., provides an exemption, in part, for electricity sold during November through April for residential use, fuel and electricity sold for use in farming, and fuel and electricity consumed in manufacturing tangible personal property in Wisconsin.
(b) The exemption under sub. (1) (b) does not apply to electricity or energy which is first purchased for resale from the producer and is then sold in a subsequent retail sale, unless the person making the retail sale is able to account for the quantity of electricity or energy that qualifies for exemption under s.
77.54 (56) (b)
, Stats., and is able to identify the person to whom such electricity or heat is sold.
Example:
Electricity that would otherwise qualify for exemption under s.
77.54 (56) (b)
, Stats., is commingled in a distribution network with electricity that is not produced by a product whose power source is wind energy, direct radiant energy received from the sun, or gas generated from anaerobic digestion of animal manure and other agricultural wastes. It is not possible to determine to whom, or in what amount, the electricity that qualifies for exemption is sold. A purchaser of this electricity will not be able to provide an exemption certificate to a utility and properly claim what portion of the electricity it has purchased is exempt pursuant to s.
77.54 (56) (b)
, Stats., nor is it possible for a utility to know what portion of the electricity purchased by the consumer was from eligible sources.
(c) The exemption under sub. (1) (b) does not apply to the sale of, or the storage, use or other consumption of gas produced by the anaerobic digestion of animal manure or other agricultural wastes unless such gas is produced by a product described in sub. (1) (a).
ADMINISTRATIVE RULES
FISCAL ESTIMATE
AND ECONOMIC IMPACT ANALYSIS
|
Type of Estimate and Analysis
|
X
Original Updated Corrected
|
Administrative Rule Chapter, Title and Number
|
Section Tax 11.10: Wind, solar, and certain gas powered products
|
Subject
|
Sales and use tax exemption for certain energy-producing wind, solar, and gas powered products and the electricity or energy they produce
|
Fund Sources Affected
|
Chapter 20 , Stats. Appropriations Affected
|
GPR FED PRO PRS SEG SEG-S
|
|
Fiscal Effect of Implementing the Rule
|
X
No Fiscal Effect
Indeterminate
|
Increase Existing Revenues
Decrease Existing Revenues
|
Increase Costs
Could Absorb Within Agency's Budget
Decrease Costs
|
The Rule Will Impact the Following (Check All That Apply)
|
State's Economy
Local Government Units
|
Specific Businesses/Sectors
Public Utility Rate Payers
|
Would Implementation and Compliance Costs Be Greater Than $20 million?
Yes
X
No
|
Policy Problem Addressed by the Rule
|
The rule does not create or revise policy, other than to reflect a statutory change.
|
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
|
The statutory change to which this rule pertains created a state economic impact equal to the estimated state fiscal effect (described in the attached fiscal estimate form). The rule itself does not create any further impact or implementation and compliance costs, except that, by providing clarifications and examples, may reduce the costs that businesses and individuals would otherwise incur to comply with the new statute.
The majority of comments submitted in response to the department's solicitation expressed general support or opposition, and did not address economic impact. Comments that addressed economic impact did so generally and were directed at the underlying statutory exemption. No comments related directly to implementation and compliance costs or indicated the proposed rule would adversely affect in a material way the economy, a sector of the economy, productivity, jobs, or the overall economic competitiveness of Wisconsin. As such, the comments received provide support to the above conclusion that the rule itself does not create any further economic impact beyond the statutory change to which it pertains.
|
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
|
Clarifications and guidance provided by administrative rules may lower the compliance costs for businesses, local governmental units, and individuals.
If the rule is not implemented, Chapter Tax 11 will be incomplete in that it will not reflect current law.
|
Long Range Implications of Implementing the Rule
|
No long-range implications are anticipated.
|
Compare With Approaches Being Used by Federal Government
|
N/A
|
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota
)
|
Michigan and Illinois do not have related statutory provisions. Minnesota has related statutory provisions, but does not have rules pertaining to those statutes. Iowa has related statutory provisions and rules pertaining to those statutes. However, Iowa's rules merely reiterate the statutes and do not interpret them.
|
Assumptions Used in Arriving at Fiscal Estimate:
2007 Wisconsin Act 20
adopted an exemption (under s.77.54 (56)) for certain products whose power source is wind energy, direct radiant energy from the sun, or gas generated from the digestion of animal manure and other agricultural waste. The exemption also applies to electricity and energy produced by the exempt products.
The proposed rule modifies Chapter
TAX 11
to reflect the law changes, improve clarity, and add examples to illustrate the tax treatment of certain items under the exemptions under s.77.54 (56).
The proposed rule includes:
•
A definition for "product" as described in the exemption under s.77.54 (56);
•
Examples of items that are considered "products" under the exemption; and
•
Clarification that the exemption does not apply to electricity or energy which is purchased for resale and is then sold in a retail sale unless the retailer is able to account for the quantity of electricity or energy that qualifies for the exemption and is able to identify the person to whom the electricity or energy is sold.
As specified in the rule, examples of products that become exempt from sales and use tax effective July 1, 2011 under the statutory change include certain wind turbine generators, photovoltaic cells, anaerobic gas powered turbines, and certain other products.
The fiscal effect of the exemptions under s.77.54 (56) have already been reflected under general fund condition statements subsequent to
2007 Act 20
and
2009 Act 29
(where, under both acts, the annual sales tax loss of the exemptions was estimated at $1.3 million annually). Since the fiscal impact of the statutory change has already been reflected, the proposed rule has no fiscal effect.
Notice of Proposed Rulemaking
Without Public Hearing
Technical College System
The Wisconsin Technical College System Board submitted the following proposed rule amendment to the Legislative Council Rules Clearinghouse on December 23, 2011. The proposed order revises section
TCS 6.05
, relating to procurement. A public hearing is not required as the proposed rule amendment brings the existing rule into conformity with cost minimums established in
2011 Wisconsin Act 32
.
Analysis Prepared by the Wisconsin Technical College System Board
Statutes interpreted
Wis. Stats. section 38.04.
Statutory authority
Wis. Stats. sections 38.04 and 38.12.
Explanation of statutory authority
Section
38.04 (14) (a)
, Stats., authorizes the technical college system board to promulgate rules applicable to all district boards, establishing general district policies related to procurement and contracts to provide services.
Related statute or rule
Plain language analysis
2011 Wisconsin Act 32
raised procurement cost minimums for various procurement requirements for state agencies in ch.
16
, Stats. The proposed rule amendments are limited to increasing current procurement cost minimums for technical college districts to align with the minimums outlined for state agencies in Ch.
16
, Stats.
Summary of, and comparison with, existing or proposed federal regulations
Not applicable.
Comparison with rules in adjacent states
Not applicable.
Summary of factual data and analytical methodologies
Not applicable.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact report
Not applicable.
Effect on Small Business
None.
Final Regulatory Flexibility Analysis
Not applicable.
Fiscal Estimate
The functions required by these rules can be absorbed within existing staff. Therefore, there is no fiscal effect on the agency.
Agency Contact Person
Morna Foy, Vice President, Wisconsin Technical College System, 4622 University Avenue, P.O. Box 7874, Madison, Wisconsin 53707-7874, telephone (608) 266-2449, e-mail
morna.foy@wtcsystem.edu
.
Place Where Comments Are to be Submitted and Deadline for Submission
Comments may be submitted to the contact person noted above. The deadline for comments is
February 15, 2012
.
A public hearing and notice are not required under s.
227.16 (2) (b)
, Stats., as the proposed rule amendment will align the cost minimums for procurement requirements of the Wisconsin Technical College System with the policies and cost minimums established by the Legislature and the Governor for state agency procurements in
2011 Wisconsin Act 32
.
Text of Rule
(c)
Competitive bids
. Require that all procurements where the total cost exceeds
$25,000
$50,000
and public construction under ss.
38.18
and
62.15 (1)
,
(11)
and
(14)
, Stats., where the total cost exceeds
$10,000
$25,000
be accomplished through the use of competitive bids except as provided by pars. (d), (e), and (i).
(f)
Solicitation of written quotes.
Except as provided under pars. (d), (e) and (i), require that all procurements where the total cost equals or exceeds
$10,000
$25,000
and does not exceed
$25,000
$50,000
be accomplished through the solicitation of written quotations from a minimum of 3 contractors or proposed contractors.
(g)
Procurements less
that $10,000
than
$25,000
. Establish a procedure for all procurements where the total cost is less than
$10,000
$25,000
.
(j)
Records required.
Require that records be created and retained for all procurements where the total cost equals or exceeds
$10,000
$25,000
. These records shall include:
1. The rationale for the method of procurement.
2. The rationale for selection or rejection of any contractor or proposed contractor.
3. The basis for cost or price.
