A sales and use tax exemption for extended-range electric vehicles; a property tax exemption for tangible personal property used to recharge electric vehicles; the motor vehicle emission inspection and maintenance program and payments to the Wisconsin Economic Development Corporation related to extended-range electric vehicles; a property and sales and use tax exemption for certain machinery and tangible personal property used to conduct research; and making an appropriation

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 presiding officer of each house of the legislature an audited financial statement of its use of the payments, prepared in accordance with generally accepted accounting principles.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.