AB 278

Sales tax exemptions

This bill provides a sales and use tax exemption for extended-range electric

vehicles that are licensed for highway use.

Property tax exemptions

This bill exempts from property taxes all tangible personal property used

exclusively to provide electricity to recharge electric vehicles that are licensed for

highway use.

This bill also creates a property tax exemption and a sales and use tax

exemption for machinery and other tangible personal property used for qualified

research by persons engaged primarily in manufacturing, silviculture, or

biotechnology in this state.

Vehicle emission inspections and payments related to electric vehicles

Current law requires the Department of Transportation (DOT) to conduct the

motor vehicle emission inspection and maintenance program (I/M program) in

counties in which the air quality does not meet certain federal standards

(nonattainment counties). Under the I/M program, most motor vehicles that are

subject to emission limitations established by the Department of Natural Resources

(DNR) must pass periodic emission inspections and may not be registered by DOT

unless they have passed these inspections. Most nonexempt motor vehicles must

undergo an initial emission inspection in the fourth year after the vehicle's model

year and additional emission inspections every two years thereafter. DOT may

contract with third parties to perform vehicle emission inspections under the I/M

program. The costs of administering the program, including contracting for emission

inspections, are primarily paid by DOT from the transportation fund, although a

small portion of the costs are paid by DNR from the general fund.

This bill terminates the I/M program on June 30, 2013, if termination of the

program on that date is consistent with the requirements under federal law or if this

state receives a waiver of the requirements under federal law or approval from the

applicable federal agency to terminate the program. If any of these conditions are

satisfied so that termination may occur, DOT may not thereafter enter into, or renew

or extend, any contract to perform testing and inspections under the program for a

period that extends beyond June 30, 2013. The bill also eliminates the requirement

that DOT's testing and inspection contracts must be for at least three years.

Under the bill, beginning on July 1, 2013, DOT must pay to the Wisconsin

Economic Development Corporation (WEDC) amounts appropriated for these

payments if the I/M program is terminated on June 30, 2013. These payments must

be used for purposes related to the research, production, promotion, and use of

extended-range electric vehicles primarily in the nonattainment counties. The bill

does not provide funding for these payments in the 2011-13 fiscal biennium. For

each year in which DOT makes payments to WEDC, WEDC must submit to the