Wis. Admin. Code § Tax 11.10 — Wind, solar, and certain gas powered products

Tax 11.10(1) (1) General. Section 77.54 (56) , Stats., provides a sales and use tax exemption for the following:

Tax 11.10(1)(a) (a) The sales price from the sale of and the storage, use, or other consumption of 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 waste, if the product produces at least 200 watts of alternating current or 600 British thermal units per day, except that the exemption does not apply to an uninterruptible power source that is designed primarily for computers.

Tax 11.10(1)(b) (b) Except for the sale of electricity or energy that is exempt from taxation under s. 77.54 (30) , Stats., the sales price from the sale of and the storage, use, or other consumption of electricity or energy produced by a product described in par. (a) .

Tax 11.10(2) (2) Definitions. In this section and in s. 77.54 (56) , Stats.:

Tax 11.10(2)(a) (a) “Agricultural waste” means a byproduct of farming.

Tax 11.10(2)(b) (b) “Farming” has the meaning given in s. Tax 11.12 (2) (f) , except “farming” includes holding livestock in a feed lot for less than 30 days.

Tax 11.10(2)(c) (c) “Feed lot” has the meaning given in s. Tax 11.12 (2) (g) .

Tax 11.10(2)(d) (d) “Gas” means a fuel that is comprised primarily of methane and exists in a gaseous state at normal room temperature and pressure.

Tax 11.10(2)(e) (e) “Product” means tangible personal property that converts wind energy, direct radiant energy received from the sun, or gas generated from the anaerobic digestion of animal manure and other agricultural waste into alternating current electricity or heat.

Tax 11.10(3) (3) Items which are products. Product, as defined in sub. (2) (e) , includes the following items:

Tax 11.10(3)(a) (a) Wind turbine generators, including blade assembly and tower.

Tax 11.10(3)(b) (b) Gas powered electric generators.

Tax 11.10(3)(c) (c) Gas fueled furnaces, space heaters, and water heaters.

Tax 11.10(3)(d) (d) Photovoltaic cells, modules, and arrays, including tracking equipment that maintains optimal orientation to the sun.

Tax 11.10(3)(e) (e) Solar thermal collectors.

Tax 11.10(3)(f) (f) Inverters used to transform direct current produced by an item described in sub. (2) into alternating current, including property used to convey the direct current from the product to the inverter.

Tax 11.10(3)(g) (g) Hardware required for installation of an item described in pars. (a) to (f) .

Tax 11.10(4) (4) Items which are not products. Product, as defined in sub. (2) (e) , excludes the following items:

Tax 11.10(4)(a) (a) Tangible personal property that consumes electricity or heat produced by an item described in sub. (2) (e) .

Tax 11.10(4)(b) (b) A foundation for an item described in sub. (2) (e) .

Tax 11.10(4)(c) (c) Except as provided in sub. (3) (f) , property necessary to convey, transfer, or alter electricity or heat generated by an item described in sub. (2) (e) .

Tax 11.10(4)(d) (d) Tangible personal property used to store electricity or heat produced by an item described in sub. (2) (e) .

Tax 11.10(5) (5) Exemption for products.

Tax 11.10(5)(a) (a) For purposes of the exemption under sub. (1) (a) , a product that produces direct current shall be considered to produce alternating current if the direct current is modified to alternating current prior to the direct current being stored, used, consumed, or sold by the producer.

Tax 11.10(5)(b) (b) In order to qualify for the exemption under sub. (1) (a) , a product using gas as a power source shall use gas from the anaerobic digestion of animal manure and other agricultural waste exclusively as its power source. A product that uses other fuels such as natural gas, propane, or gas generated from a landfill does not qualify for exemption.

Tax 11.10(5)(c) (c) Products that qualify for the exemption under sub. (1) (a) include the following:

Tax 11.10(5)(c)1. 1. An alternating current wind turbine generator rated by the manufacturer to produce at least 200 watts of alternating current with a wind speed of 25 miles per hour.

Tax 11.10(5)(c)2. 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) .

Tax 11.10(5)(c)3. 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.

Tax 11.10(5)(c)4. 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.

Tax 11.10(5)(c)5. 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) .

Tax 11.10(5)(c)6. 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.

Tax 11.10(5)(c)7. 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.

Tax 11.10(5)(d) (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.

Tax 11.10(6) (6) Exemption for energy produced by a product.

Tax 11.10(6)(a) (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:

Tax 11.10(6)(a)1. 1. The electricity or energy is produced by a product that qualifies for exemption under sub. (1) (a) .

Tax 11.10(6)(a)2. 2. The sale does not qualify for exemption under s. 77.54 (30) , Stats.

Tax 11.10(6)(b) (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.

Tax 11.10(6)(c) (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) .