In the state of Wisconsin, tax exemptions apply for the use of renewable energy.
Wood which is sold for use as fuel in residential sectors is exempt from use-tax and state sales tax. ”Residential use” is defined as use in structures, or portions of structures, which are considered the permanent dwelling place of an individual or individuals.
In 1987, this legislation amended, to widen the coverage of the exemption, and to exempt certain renewable fuels used for business purposes from use-tax and state sales tax as well. This exemption applies to sales of biomass residues which result from the “harvesting of timber or the production of wood products, including slash, sawdust, shavings, edgings, slabs, leaves, wood chips, bark and wood pellets manufactured primarily from wood or primarily from wood residue.”
This means, the harvesting timber, leaves, wood chips, wood pellets, bark, or similar materials from wood, could be eligible for these tax exemptions, providing that these materials will be used for the production of renewable energy.
During later years, amendment of the original legislation created additional exemptions, and these exemptions will soon be in effect for the use of solar power and wind energy.
Effective in July 2009, wind, solar, and anaerobic digester systems will also be exempt from use-tax and state sales tax. Eligible systems must be able to produce a minimum of 200 watts of alternating current (AC power), or 600 British thermal units, per day.
However, this particular exemption is not applicable to uninterruptible power sources, such as those which are designed and used primarily for in computer technology.
But the law does give tax exemption to ”receipts from the sale of and the storage, use, or other consumption of electricity or energy” produced by a qualifying system.
Several sectors can avail themselves of exemption taxes on eligible purchases. This includes the residential, industrial, and commercial sectors, as well as the general public.
Source: Wisconsin Incentives for Renewables and Efficiency
Disclaimer: This article does not constitute a source of a official legal or financial advice. While we attempt to represent all data as accurately as possible, we advice you to refer to official government websites, for the most accurate and up-to-date information.
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