Wisconsin Incentives and Laws

Listed below are the summaries of all current Wisconsin incentives, laws, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

• State Incentives (8)
• Laws and Regulations (13)

State Incentives

Renewable Fuel Infrastructure Tax Credit

A tax credit is available for 25% of the cost to install or retrofit fueling pumps that dispense gasoline fuel blends of at least 85% ethanol or diesel fuel blends of at least 20% biodiesel fuel, or that mix fuel from separate storage tanks and allow the user to select the percentage of renewable fuel. The maximum credit amount is $5,000 per taxable year for each fueling station that has installed or retrofitted a pump. The credit must be claimed within four years of the tax return. The credit expires December 31, 2017. (Reference Wisconsin Statutes 71.07 (5j), 71.21(4), 71.26(2)(a), 71.34(1)(g), 71.45(2)(a)10, 77.92(4), 71.28(5j), 71.30(3)(ed), 71.47(5j), and 71.49(1)(ds))

Renewable Fuel Producer Excise Tax and Inspection Exemption

The first 1,000 gallons of renewable fuel an individual produces each year are exempt from the motor vehicle fuel excise tax, the petroleum inspection fee, and any petroleum inspection requirements not required under federal law. These exemptions only apply if the fuel is used in the individual's personal vehicle and is not sold. An individual may also produce renewable fuel for personal use without a business tax registration certificate or a motor vehicle fuel tax license. (Reference Wisconsin Statutes 78.01(2n) and 168.05(6))

Vehicle Battery and Engine Research Tax Credits

A corporation involved in qualified research is eligible for a tax credit equal to 10% of the qualified research expenses the corporation incurred in Wisconsin during the taxable year. Qualified research includes, but is not limited to, automotive batteries for use in hybrid electric vehicles that reduce the demand for natural gas or electricity or improve the efficiency of its use, and 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 equal to 5% of the amount paid or incurred 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 Tax Refund for Taxis

A person using alternative fuel to operate a taxi used to transport passengers may be reimbursed for the paid amount of the Wisconsin state fuel tax. 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)

Idle Reduction Grant Program

The Wisconsin Department of Safety & Professional Services provides grants to common, contract, and private motor carriers headquartered in Wisconsin that transport freight. Eligible applicants may receive grants of up to 50% for the cost of idle reduction equipment and installation on heavy-duty truck tractors produced in Model Year 1999 or later. The grant program was allocated $1 million for each July to June budget cycle. As of December 2011, program funds are no longer available for the current budget cycle (July 1, 2011 - June 30, 2012). Applications will be available July 1, 2012, for further funding opportunities. Other conditions may apply. (Reference Wisconsin Statutes 560.125)

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 on motor vehicle fuel or alternative fuels, or on the purchase, sale, handling, or consumption of motor vehicle fuel or alternative fuels. (Reference Wisconsin Statutes 78.82)

Idle Reduction Weight Exemption

Any vehicle or combination of vehicles equipped with fully functional idle reduction technology may exceed the state's gross and axle weight limits by up to 400 pounds (lbs) to compensate for the additional weight of the idle reduction technology. To be eligible for the weight exemption, the vehicle operator must be able to prove, by written certification, the weight of the idle reduction technology and, by demonstration or certification, that the idle reduction technology is fully functional at all times. The weight exemption cannot exceed 400 lbs or the certified weight of the unit, whichever is less. (Reference Wisconsin Statutes 348.15(3)(f))

Biodiesel Fuel Use Incentive

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

Laws and Regulations

Alternative Fuel Vehicle (AFV) Acquisition and Alternative Fuel Use Requirements

The Wisconsin Department of Administration (DOA) encourages state employees operating state-owned or leased motor vehicles to use hybrid electric vehicles or vehicles that operate on gasohol (a motor fuel containing at least 10% alcohol) or alternative fuels whenever feasible and cost effective. The DOA must place a list of gasohol and alternative fuel station locations in each state-owned or state-leased motor vehicle for driver reference. The DOA also encourages Wisconsin residents and state employees who use personal motor vehicles on state business to use gasohol and alternative fuels. (Reference Assembly Bill 40, 2011; Wisconsin Statutes 16.045; and Executive Order 141, 2006)

Petroleum Reduction Requirements

The Wisconsin Department of Administration's fleet management policy requires all state agencies to collectively reduce gasoline use in state-owned vehicles by at least 50% by 2015 as compared to the total amount used in 2006. In addition, state agencies must reduce petroleum-based diesel fuel use by 25% by 2015. (Reference Wisconsin Statutes 16.045, and Executive Order 141, 2006)

Alternative Fueling Infrastructure Development

The Wisconsin Department of Administration must pursue, in cooperation with the Department of Agriculture, Trade and Consumer Protection, the establishment and maintenance of sufficient alternative fueling infrastructure at public retail outlets to meet the public's traveling needs. (Reference Wisconsin Statutes 16.956(3)(f))

Alternative Fuels Tax

A state excise tax is imposed on the use of alternative fuels. Alternative fuels include liquid petroleum gas (LPG or propane) and compressed natural gas (CNG). The current tax rate on propane is $0.226 per gallon, and the tax rate on CNG is $0.247 per gallon. No tax is imposed on alternative fuels the U.S. government or its agencies (when presented with a valid exemption certificate) uses or vehicles used for urban mass transportation of passengers. For more information, see the Wisconsin Department of Revenue Alternate Fuel Tax Web site. (Reference Wisconsin Statutes 78.40)

Alternative Fuel License

Any person acting as an alternative fuels dealer must hold a valid alternative fuels license and certificate from the Wisconsin Department of Administration. Except for alternative fuels that an alternative fuels dealer delivers 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 or an authorized supplier has delivered the alternative fuel. For more information, see the State of Wisconsin License, Permit and Registration Services. (Reference Wisconsin Statutes 78.47)

Renewable Fuel Sales Volume Goals

The Wisconsin Legislature sets goals for minimum annual renewable fuel sales volumes each year, based on annual renewable fuel volumes required under the federal Renewable Fuel Standard. On an annual basis, the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP), in cooperation with the Department of Commerce, the Department of Revenue, and the Office of Energy Independence, must determine whether the annual goals for the previous year were met. If the goals were not met, DATCP must issue a report assessing the causes. If DATCP determines that the goals are likely to be met, it must establish requirements that may include: reporting, recordkeeping, or testing requirements; annual requirements for renewable fuel sales; quarterly or monthly requirements for renewable fuel sales if necessary to maintain fuel availability and smooth fluctuation in demand; a system for trading credits; procedures to temporarily suspend a sales requirement; and fees for administration and enforcement. (Reference Wisconsin Statutes 100.60)

Bioenergy Feedstock Assessment

The Wisconsin Office of Energy Independence (OEI), in coordination with the Wisconsin Department of Administration, the Department of Agriculture, Trade and Consumer Protection, the Department of Natural Resources, and the Public Service Commission, must prepare a biennial strategic bioenergy feedstock assessment to identify and summarize trends in bioenergy feedstock production and use in Wisconsin, and to recommend, as appropriate, legislation or changes in programs or agency rules. OEI must submit an assessment by April 30, 2013, and every other year thereafter. (Reference Wisconsin Statutes 16.954)

Sustainable Biofuels Production Practices

The Wisconsin Bioenergy Council (Council) must identify voluntary best management practices for sustainable biomass and biofuels production. The Council must report its findings, at least biennially, to agencies and private parties that assist biofuel feedstocks and biofuels producers. (Reference Wisconsin Statutes 93.47)

Regional Biofuels Promotion Plan

Wisconsin joined Indiana, Iowa, Kansas, Michigan, Minnesota, Ohio, and South Dakota in adopting the Energy Security and Climate Stewardship Platform Plan (Platform), which establishes shared goals for the Midwest region, including increased biofuels production and use. Download Adobe Reader. Specifically, the Platform sets the following goals:

• Produce commercially available cellulosic ethanol and other low carbon fuels in the region by 2012;
• Increase E85 availability at retail fueling stations in the region to 15% of stations by 2015, 20% by 2020, and 33% of all fueling stations in the region by 2025;
• Reduce the amount of fossil fuel that is used in the production of biofuels by 50% by 2025;
• By 2025, at least 50% of all transportation fuels consumed in the Midwest will be from regionally produced biofuels and other low carbon transportation fuels.

The Platform also establishes a regional biofuels corridor program. The program directs state transportation, agriculture, and regulatory officials to develop a system of coordinated signage across the region for biofuels and advanced transportation fuels and to collaborate to create regional E85 corridors. The program requires standardized fuel product coding at fueling stations as well as increased education for retailers about converting existing fueling infrastructure to dispense E85.

Biodiesel Definition

Biodiesel is defined as a fuel 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 alternative fuels use in state-owned vehicles. (Reference Wisconsin Statutes 16.045(1)(c))

Biodiesel Labeling Requirement

Biodiesel fuel retailers 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 ASTM specifications. Retailers are also prohibited from selling fuel labeled as a biodiesel blend unless the fuel contains at least 2% pure biodiesel fuel, the blend percentage is identified, and the fuel meets the ASTM standards that apply to biodiesel blends. (Reference Wisconsin Statutes 168.14(2))

Propane Supplier Requirements

A retail supplier may only distribute liquefied petroleum gas (LPG or propane) if the supplier holds a license from the Wisconsin Department of Commerce. The license must be renewed every two years. In addition, propane retail suppliers must also provide and maintain liability insurance. Penalties for noncompliance may apply. (Reference Wisconsin Statutes 101.16)

Neighborhood Electric Vehicle (NEV) Access to Roadways

An NEV is defined as a self-propelled motor vehicle that has successfully completed the U.S. Department of Energy's NEV America test program and conforms to the definition and requirements in the Federal Motor Vehicle Safety standards for low-speed vehicles under Title 49 of the Code of Federal Regulations, section 571. A golf cart is not considered an NEV. The governing body of any municipality may, by ordinance, allow an NEV to operate on any roadway within the municipality that has a speed limit of 35 miles per hour or less, regardless of whether the municipality has jurisdiction over the roadway. (Reference Wisconsin Statutes 349.26)

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