Wisconsin Incentives and Laws for Ethanol

The list below contains summaries of all Wisconsin incentives and laws related to Ethanol.

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))

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)

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 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:

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.