- 2026 LEGISLATURE LRBs0342/1LRB-4823/1 MDE/EHS/EKL:allMDE/EKL/EHS:skw&cdc ASSEMBLY SUBSTITUTEBILL AMENDMENT619 1,November TO7, ASSEMBLY2025 BILL- 619Introduced Februaryby 3,Representatives 2026REEN -, OfferedARMSTRONG , AUGUST , CALLAHAN , S UMMERFIELD , SWEARINGEN , T UCKER, K REIBICH, M ELOTIK, M URSAU, SPIROS, NYDER , RANEL , B.ACOBSON and GUSTAFSON , cosponsored by RepresentativeSenators GELZKOWSKI REEN, QUINN, AMES and T OMCZYK .
AReferred N A CT to amendCommittee 238.399on (4)Ways (a) and 238.399Means. (6) (e);
A N A CT to createamend 238.39920.866 (1) (ab),(u), 238.39925.29 (1) (ae),(a), 238.39971.05 (6) (a) 15., 71.21 (4) (am),(a), 238.39971.26 (5)(2) (g)(a) and4., 238.39971.34 (6)(1k) (em)(g) ofand the71.45 statutes;(2) (a) 10.;
to create 20.370 (7) (cj), 20.866 (2) (tj), 23.44, 71.07 (3v), 71.10 (4) (em), 71.28 (3v), 71.30 (3) (am), 71.47 (3v), 71.49 (1) (am) and 238.394 of the statutes;
allowinga antax credit for aviation biofuel businessmanufacturing, authorizing the state to claimcontract thepublic enterprisedebt zonefor taxan credit.aviation biofuel project grant, and making an appropriation.
Analysis by the Legislative Reference Bureau UnderThis thisbill bill,creates thecertain Wisconsinincentives Economicfor Developmentactivities Corporationrelated is authorized to certifythe tomanufacturing claimof incomeaviation biofuel and franchiseauthorizes tax credits under the enterprisestate zoneto taxcontract creditpublic programdebt noto morefund than one business that manufactures biofuel in this state, a majoritygrant offor whichan is aviation biofuel (aviationproject. biofuel business).
InAviation thebiofuel bill,manufacturing aszone theand termrelated relates to the enterprise zone tax credit,credit “biofuel”Under meansthe fuelbill, createdthe byWisconsin convertingEconomic organicDevelopment matterCorporation derivedis fromauthorized wood,to atcreate leastone 80aviation percentbiofuel ofmanufacturing which,zone asfor measuredan byaviation aggregatebiofuel volumeproject. over a five-year period, has been sourced in this state.
ToIn bethe eligiblebill, foras the credit,term relates to the aviation biofuel businessmanufacturing mustzone provideand certainthe informationrelated totax thecredit, corporation“biofuel” tomeans demonstratefuel economiccreated dueby diligence.synthesizing organic matter derived from wood, at least 80 percent of which, as measured by aggregate volume over a 5-year period, has been sourced in this state.
TheAn total“aviation amount of tax credits an aviation biofuel businessproject” mayis claimdefined underin the bill isas $120,000,000,economic andactivity anrelated enterpriseto zonemanufacturing that has an aviation biofuel business - 2026 Legislature - 2 - LRBs0342/1LRB-4823/1 MDE/EHS/EKL:allMDE/EKL/EHS:skw&cdc SECTIONASSEMBLY 1BILL operating619 in itthis maystate, remaina inmajority effectof which is aviation biofuel, for nowhich morethe thanperson 20conducting years.the activity commits to expend a total of not less than $1,500,000,000.
Under currentthe law,bill, enterpriseWEDC zones may remaincertify businesses to claim income and franchise tax credits if the business engages in effectan foraviation nobiofuel moreproject thanin 12an years.aviation biofuel manufacturing zone.
If the amount of the credit for which the business is eligible exceeds its tax liability, the bill allows the business to carry forward the unused amount to offset tax liability in future tax years, until the business is able to use the entire amount.
The total amount of all tax credits WEDC may certify under the bill is $60,000,000.
WEDC may, no later than five years after a year in which WEDC certifies a business for tax credits, seek repayment of tax credits for failure to comply with an agreement entered into with WEDC.
WEDC must revoke a certification to claim tax credits if a certified business does any of the following:
1.
Supplies false or misleading information to obtain tax credits.
2.
Leaves an aviation biofuel manufacturing zone to conduct substantially the same business outside of the aviation biofuel manufacturing zone.
3.
Ceases operations in an aviation biofuel manufacturing zone and does not renew operation of the business or a similar business in the aviation biofuel manufacturing zone within 12 months of the cessation of operations.
A business certified for tax credits under the bill must submit quarterly reports to WEDC and the legislature that include information about the business’s workforce impact.
Aviation biofuel grant Under the bill, the legislature finds and determines that the manufacturing of aviation biofuels in this state is essential to maintain and grow the forest products industry in this state and to create jobs;
that supporting the growth of the aviation biofuels industry is a statewide responsibility of statewide dimension;
and that it is in the public interest, and it is the public policy of this state, to assist with the construction of an aviation biofuel manufacturing project in this state.
The bill requires the state to contract public debt in the amount of $150,000,000 for the purpose of awarding a grant in fiscal year 2025-26, subject to certain conditions, to fund the aviation biofuel project in the aviation biofuel manufacturing zone.
The conditions on the grant are that the grantee agrees to use the facility constructed with the grant only for the purpose of manufacturing aviation biofuels until the latest maturity date of the bonds issued to contract public debt for the grant;
the grantee agrees that, of the biomass it uses to produce aviation biofuels at any facility constructed with the grant, 80 percent, as measured by aggregate volume over a 5-year period, will be sourced in this state;
and the grantee agrees to make an investment of not less than $1,500,000,000 in economic activities related to manufacturing aviation biofuel in this state within five years.
If the grantee violates any of these conditions, the bill requires the grantee to pay DNR the amount of the grant awarded.
Under the bill, any such amounts paid to DNR accrue to the conservation fund and are appropriated, along with moneys from the forestry account of the conservation fund, to repay the principal and interest incurred in financing the grant.
Under the bill, the requirement to use a grant-funded facility for aviation - 2026 Legislature - 3 - LRB-4823/1 MDE/EKL/EHS:skw&cdc ASSEMBLY BILL 619 SECTION 1 biofuel manufacturing is not violated if the grantee uses the facility to manufacture biofuels other than aviation biofuel as long as a majority of the biofuel manufactured at all of the facilities constructed with the grant is aviation biofuel.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
SSECTION ECTION 1.
238.39920.370 (1)(7) (ab)(cj) of the statutes is created to read:
238.39920.370 (1)(7) (ab)(cj) “AviationPrincipal biofuel”repayment meansand biofuelinterest used- as aviation fuel.biofuel manufacturing project.
SFrom ECTIONthe 2.conservation fund, from the moneys received by the department for forestry activities and from any payments made to the department under s.
238.39923.44 (1)(3), (ae)a ofsum thesufficient statutes is created to read:reimburse s.
238.39920.866 (1) (ae)(u) “Biofuel”for meansthe fuelpayment created by converting organic matter derived from wood, at least 80 percent of which,principal asand measuredinterest bycosts aggregateincurred volumein overfinancing athe 5-yeargrant period,for hasthe beenaviation sourcedbiofuel inmanufacturing thisproject state.under s.
20.866 (2) (tj).
SECTION 2.
20.866 (1) (u) of the statutes, as affected by 2025 Wisconsin Act 15, is amended to read:
20.866 (1) (u) Principal repayment and interest.
A sum sufficient from moneys appropriated under sub.
(2) (zp) and ss.
20.115 (2) (d) and (7) (b) and (s), 20.190 (1) (c), (d), (i), and (j), 20.225 (1) (c) and (i), 20.245 (1) (e) and (j), 20.250 (1) (c) and (e), 20.255 (1) (d), 20.285 (1) (d), (gj), and (je), 20.320 (1) (c) and (t) and (2) (c), 20.370 (7) (aa), (ad), (ag), (aq), (ar), (at), (au), (bq), (br), (cb), (cc), (cd), (cg), (cj), (cq), (cr), (cs), (ct), (ea), (eq), and (er), 20.395 (6) (af), (aq), (ar), and (au), 20.410 (1) (e), (ec), and (ko) and (3) (e) and (fm), 20.435 (2) (ee), 20.465 (1) (d), 20.485 (1) (f) and (go) and (4) (qm), 20.505 (4) (es), (et), (ha), and (hb) and (5) (c), (g), and (kc), 20.855 (8) (a), and 20.867 (1) (a) and (b) and (3) (a), (b), (bb), (bc), (bd), (be), (bf), (bg), (bh), - 2026 Legislature - 4 - LRB-4823/1 MDE/EKL/EHS:skw&cdc ASSEMBLY BILL 619 SECTION 2 (bj), (bL), (bm), (bn), (bo), (bq), (br), (bt), (bu), (bv), (bw), (bx), (cb), (cd), (cf), (ch), (cj), (cq), (cr), (cs), (cv), (cw), (cx), (cy), (cz), (g), (h), (i), (kd), and (q) for the payment of principal, interest, premium due, if any, and payment due, if any, under an agreement or ancillary arrangement entered into under s.
18.06 (8) (a) relating to any public debt contracted under subchs.
I and IV of ch.
18.
238.39920.866 (4)(2) (a)(tj) of the statutes is amendedcreated to read:
238.39920.866 (4)(2) (a)(tj) ANatural Exceptresources; as provided in par.
(am),aviation abiofuel designationproject. under sub.
(3)From maythe remaincapital inimprovement effectfund, a sum sufficient for nothe moredepartment thanof 12natural years.resources to award the grant under s.
23.44.
The state may contract public debt in an amount not to exceed $150,000,000 for this purpose.
238.39923.44 (4) (am) of the statutes is created to read:
238.39923.44 (4)Grant (am)for Aaviation designationbiofuel undermanufacturing sub.project.
(3)(1) thatIn hasthis asection: business certified under sub.
(5)(a) (g)“Aviation operatingbiofuel” inmeans itbiofuel mayused remainas inaviation effectfuel. for no more than 20 years.
(b) “Aviation biofuel project” has the meaning given in s.
238.394 (1) (b).
(c) “Biofuel” means liquid or gaseous fuel used in transportation and created by synthesizing biomass.
(d) “Biomass” means biological material derived from wood or woody plant materials.
(2) In fiscal year 2025-26, the department shall obligate $150,000,000 from the appropriation under s.
20.866 (2) (tj) to award as a grant to fund the aviation biofuel project in the aviation biofuel manufacturing zone described under s.
238.394.
- 2026 Legislature - 5 - LRB-4823/1 MDE/EKL/EHS:skw&cdc ASSEMBLY BILL 619 SECTION 4 (3) The department shall award the grant under sub.
(2) subject to all of the following conditions:
(a) 1.
Subject to subd.
2., the grantee shall agree to use any facility constructed with the grant awarded under this section for the purpose of aviation biofuel manufacturing.
Subject to subd.
2., if the facility is used for a purpose other than aviation biofuel manufacturing before the latest maturity date of the bonds issued to contract public debt under s.
20.866 (2) (tj), the grantee shall pay to the department, in a manner prescribed by the department, the amount of the grant awarded to the grantee under this section.
The building commission shall report the latest maturity date of the bonds issued to contract public debt under s.
20.866 (2) (tj) to the legislative reference bureau and the legislative reference bureau shall publish the date in the Wisconsin administrative register under s.
35.93 (2).
2.
The use of a facility constructed with the grant awarded under this section for the purpose of manufacturing biofuels other than aviation biofuel does not violate the requirements under subd.
1.
if a majority of the biofuel manufactured at all of the facilities constructed with the grant is aviation biofuel.
(b) The grantee shall agree that, of the biomass it uses to produce biofuel at any facility constructed with the grant awarded under this section, 80 percent, as measured by aggregate volume over a 5-year period, will be sourced in this state.
If the grantee produces biofuel at that facility and more than 20 percent of the biomass it uses is sourced outside this state, the grantee shall pay to the department, in a manner prescribed by the department, the amount of the grant awarded to the grantee under this section.
(c) The grantee shall agree in writing to make an investment of not less than - 2026 Legislature - 6 - LRB-4823/1 MDE/EKL/EHS:skw&cdc ASSEMBLY BILL 619 SECTION 4 $1,500,000,000 in economic activities related to manufacturing aviation biofuel in this state by the first day of the month beginning 5 years after the effective date of this paragraph ....
[LRB inserts date].
If the grantee does not make that amount in investments in this state by the date specified in this paragraph, the grantee shall pay to the department, in a manner prescribed by the department, the amount of the grant awarded to the grantee under this section.
(4) The legislature finds and determines that the manufacturing of aviation biofuel in this state is essential to maintain and grow the forest products industry in this state and to create jobs, and that supporting the growth of the aviation biofuel industry is a statewide responsibility of statewide dimension.
It is therefore in the public interest, and it is the public policy of this state, to assist with the construction of an aviation biofuel manufacturing project in this state.
238.39925.29 (5)(1) (g)(a) of the statutes is createdamended to read:
238.39925.29 (5)(1) (g)(a) ForExcept taxableas yearsprovided beginning after December 31, 2025, no more than one business that manufactures biofuel in thisss. state, a majority of which is aviation biofuel, and that provides to the corporation all of the following to demonstrate economic due diligence:
25.293 and 25.295, all moneys accruing to the state for or in behalf of the department under chs.
26, 27, 28, 29, 169, and 350, subchs.
I and VI of ch.
77 and ss.
23.09 to 23.31, 23.325, 23.33, 23.335, except as provided in s.
25.40 (1) (bt), 23.35 to 23.42, 23.44 (3), 23.50 to 23.99, 30.50 to 30.55, 71.10 (5), 71.30 (10), and 90.21, including grants received from the federal government or any of its agencies except as otherwise provided by law.
S ECTION 6.
71.05 (6) (a) 15.
of the statutes, as affected by 2025 Wisconsin Act 15, is amended to read:
71.05 (6) (a) 15.
The amount of the credits computed under s.
71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3v), (3w), (3wm), (3y), (4k), (4n), (5f), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and not passed through by a - 2026 Legislature - 7 - LRB-4823/1 MDE/EKL/EHS:skw&cdc ASSEMBLY BILL 619 S ECTION 6 partnership, limited liability company, or tax-option corporation that has added that amount to the partnership’s, company’s, or tax-option corporation’s income under s.
71.21 (4) or 71.34 (1k) (g).
SECTION 7.
71.07 (3v) of the statutes is created to read:
71.07 (3v) VIATION BIOFUEL MANUFACTURING ZONE CREDIT .
(a) Definitions.
In this subsection:
A“Aviation comprehensivebiofuel feasibilitymanufacturing study,zone” conductedmeans by a 3rdzone party,designated describingunder thes. conversion technology and processes to be deployed, including supporting - 2026 Legislature - 3 - LRBs0342/1 MDE/EHS/EKL:all SECTION 5 performance data, and evaluating feedstock availability, cost competitiveness, and job creation.
238.394 (2).
A“Claimant” businessmeans plana outliningperson keywho capitalis andcertified operating costs, target markets, financial projections, and identified or prospective agreements to purchaseclaim biofueltax manufacturedbenefits byunder thes. business.
The238.394 business(3) planand underwho thisfiles subdivisiona shallclaim includeunder allthis ofsubsection. the following:
a.(b) Filing claims.
SignedFor letterstaxable ofyears intentbeginning fromafter businessesDecember in31, the2025, timbersubject industryto andthe otherlimitations criticalprovided supplyin industriesthis tosubsection provideand necessarys. supplies for manufacturing biofuel.
b.238.394, a claimant may claim as a credit against the tax imposed under s.
Signed71.02, lettersup ofto intentthe fromamount purchasers of biofuelthe totax, purchasethe biofuel in an amount sufficientcertified to meet any sales threshold identified by the businessclaimant plan.under s.
c.238.394 (3) for the taxable year.
A(c) signedLimitations. letter from a financing entity committing to provide the amount needed to complete the proposed capital and other operating costs and proof of equity raised and on deposit as required by the financing entity.
S1. ECTION 6.
238.399Partnerships, (6)limited (e)liability ofcompanies, and tax-option corporations may not claim the statutescredit isunder amendedthis tosubsection, read:but the eligibility for, and the amount of, the credit are based on their payment of the amount described under par.
238.399(b). (6) (e) The Except as provided in par.
(em),A thepartnership, limited liability company, or tax-option corporation shall determinecompute the maximum amount of thecredit taxthat creditseach underof ss.its partners, members, or shareholders may claim and shall provide that information to each of them.
71.07Partners, (3w),members 71.28of (3w),limited andliability 71.47companies, (3w)and thatshareholders aof certifiedtax-option businesscorporations may claim and shall notify the departmentcredit ofin revenueproportion ofto thistheir amount.ownership interests.
S2. ECTION 7.
238.399No (6)credit (em)may be allowed under this subsection unless the claimant - 2026 Legislature - 8 - LRB-4823/1 MDE/EKL/EHS:skw&cdc ASSEMBLY BILL 619 SECTION 7 includes with the claimant’s return a copy of the statutesclaimant’s iscertification createdfor totax read:benefits under s.
238.399238.394 (6)(3). (em) The total amount in tax benefits that a business certified under sub.
(5)3. (g) may claim under this section may not exceed $120,000,000.
(END)No claimant may claim a credit under this subsection if the basis for which the credit is claimed is also the basis for which another credit is claimed under this subchapter.
(d) Administration.
1.
Section 71.28 (4) (g) and (h), as it applies to the credit under s.
71.28 (4), applies to the credit under this subsection.
2.
If a credit computed under this subsection is not entirely offset against the taxes otherwise due, the unused balance may be carried forward and credited against taxes otherwise due to any following taxable year to the extent the credit is not offset by those taxes in the intervening years.
S ECTION 8.
71.10 (4) (em) of the statutes is created to read:
71.10 (4) (em) Aviation biofuel manufacturing zone credit under s.
71.07 (3v).
S ECTION 9.
71.21 (4) (a) of the statutes, as affected by 2025 Wisconsin Act 15, is amended to read:
71.21 (4) (a) The amount of the credits computed by a partnership under s.
71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3v), (3w), (3wm), (3y), (4k), (4n), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and passed through to partners shall be added to the partnership’s income.
S ECTION 10.
71.26 (2) (a) 4.
of the statutes, as affected by 2025 Wisconsin Act 15, is amended to read:
71.26 (2) (a) 4.
Plus the amount of the credit computed under s.
71.28 (1dm), (1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3v), (3w), (3wm), (3y), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and not passed through by a partnership, limited - 2026 Legislature - 9 - LRB-4823/1 MDE/EKL/EHS:skw&cdc ASSEMBLY BILL 619 S ECTION 10 liability company, or tax-option corporation that has added that amount to the partnership’s, limited liability company’s, or tax-option corporation’s income under s.
71.21 (4) or 71.34 (1k) (g).
SECTION 11.
71.28 (3v) of the statutes is created to read:
71.28 (3v) VIATION BIOFUEL MANUFACTURING ZONE CREDIT .
(a) Definitions.
In this subsection:
1.
“Aviation biofuel manufacturing zone” means a zone designated under s.
238.394 (2).
2.
“Claimant” means a person who is certified to claim tax benefits under s.
238.394 (3) and who files a claim under this subsection.
(b) Filing claims.
For taxable years beginning after December 31, 2025, subject to the limitations provided in this subsection and s.
238.394, a claimant may claim as a credit against the tax imposed under s.
71.23, up to the amount of the tax, the amount certified to the claimant under s.
238.394 (3) for the taxable year.
(c) Limitations.
1.
Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of the amount described under par.
(b).
A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them.
Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.
2.
No credit may be allowed under this subsection unless the claimant - 2026 Legislature - 10 - LRB-4823/1 MDE/EKL/EHS:skw&cdc ASSEMBLY BILL 619 S ECTION 11 includes with the claimant’s return a copy of the claimant’s certification for tax benefits under s.
238.394 (3).
3.
No claimant may claim a credit under this subsection if the basis for which the credit is claimed is also the basis for which another credit is claimed under this subchapter.
(d) Administration.
1.
Subsection (4) (g) and (h), as it applies to the credit under sub.
(4), applies to the credit under this subsection.
2.
If a credit computed under this subsection is not entirely offset against the taxes otherwise due, the unused balance may be carried forward and credited against taxes otherwise due to any following taxable year to the extent the credit is not offset by those taxes in the intervening years.
S ECTION 12.
71.30 (3) (am) of the statutes is created to read:
71.30 (3) (am) Aviation biofuel manufacturing zone credit under s.
71.28 (3v).
S ECTION 13.
71.34 (1k) (g) of the statutes, as affected by 2025 Wisconsin Act 15, is amended to read:
71.34 (1k) (g) An addition shall be made for credits computed by a tax-option corporation under s.
71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3v), (3w), (3wm), (3y), (4), (5), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and passed through to shareholders.
S ECTION 14.
71.45 (2) (a) 10.
of the statutes, as affected by 2025 Wisconsin Act 15, is amended to read:
71.45 (2) (a) 10.
By adding to federal taxable income the amount of credit computed under s.
71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3v), (3w), (3y), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and not passed through by a - 2026 Legislature - 11 - LRB-4823/1 MDE/EKL/EHS:skw&cdc ASSEMBLY BILL 619 S ECTION 14 partnership, limited liability company, or tax-option corporation that has added that amount to the partnership’s, limited liability company’s, or tax-option corporation’s income under s.
71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s.
71.47 (3), (3t), (4), (4m), and (5).
SECTION 15.
71.47 (3v) of the statutes is created to read:
71.47 (3v) VIATION BIOFUEL MANUFACTURING ZONE CREDIT .
(a) Definitions.
In this subsection:
1.
“Aviation biofuel manufacturing zone” means a zone designated under s.
238.394 (2).
2.
“Claimant” means a person who is certified to claim tax benefits under s.
238.394 (3) and who files a claim under this subsection.
(b) Filing claims.
For taxable years beginning after December 31, 2025, subject to the limitations provided in this subsection and s.
238.394, a claimant may claim as a credit against the tax imposed under s.
71.43, up to the amount of the tax, the amount certified to the claimant under s.
238.394 (3) for the taxable year.
(c) Limitations.
1.
Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of the amount described under par.
(b).
A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them.
Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.
2.
No credit may be allowed under this subsection unless the claimant - 2026 Legislature - 12 - LRB-4823/1 MDE/EKL/EHS:skw&cdc ASSEMBLY BILL 619 S ECTION 15 includes with the claimant’s return a copy of the claimant’s certification for tax benefits under s.
238.394 (3).
3.
No claimant may claim a credit under this subsection if the basis for which the credit is claimed is also the basis for which another credit is claimed under this subchapter.
(d) Administration.
1.
Section 71.28 (4) (g) and (h), as it applies to the credit under s.
71.28 (4), applies to the credit under this subsection.
2.
If a credit computed under this subsection is not entirely offset against the taxes otherwise due, the unused balance may be carried forward and credited against taxes otherwise due to any following taxable year to the extent the credit is not offset by those taxes in the intervening years.
S ECTION 16.
71.49 (1) (am) of the statutes is created to read:
71.49 (1) (am) Aviation biofuel manufacturing zone credit under s.
71.47 (3v).
S ECTION 17.
238.394 of the statutes is created to read:
238.394 Aviation biofuel manufacturing zone.
(1) D EFINITION.
In this section:
(a) “Aviation biofuel” means biofuel used as aviation fuel.
(b) “Aviation biofuel project” means economic activity related to manufacturing biofuel in this state, a majority of which is aviation biofuel, for which the person conducting the activity commits to expend a total of not less than $1,500,000,000.
(c) “Biofuel” means fuel created by synthesizing organic matter derived from wood, at least 80 percent of which, as measured by aggregate volume over a 5-year period, has been sourced in this state.
- 2026 Legislature - 13 - LRB-4823/1 MDE/EKL/EHS:skw&cdc ASSEMBLY BILL 619 SECTION 17 (d) “Tax benefits” means the income and franchise tax credits under ss.
71.07 (3v), 71.28 (3v), and 71.47 (3v).
(2) DESIGNATION OF ZONES.
The corporation may designate not more than one aviation biofuel manufacturing zone in this state for an aviation biofuel project.
The zone may be noncontiguous.
The zone may not include any area outside this state.
(3) CERTIFICATION.
The corporation may certify a business that engages in the aviation biofuel project in the aviation biofuel manufacturing zone designated under sub.
(2) for tax benefits of up to 10 percent of the business’s capital expenditures made in the zone during the taxable year that are related to manufacturing biofuel.
(4) LIMITATIONS ON TAX BENEFITS .
The corporation may not issue certifications under sub.
(3) for tax benefits that total more than $60,000,000.
(5) OTHER DUTIES.
(a) The corporation shall revoke a certification under sub.
(3) if the business does any of the following:
1.
Supplies false or misleading information to obtain tax benefits.
2.
Leaves the aviation biofuel manufacturing zone designated under sub.
(2) to conduct substantially the same business outside the aviation biofuel manufacturing zone.
3.
Ceases operations, including construction and planning, in the aviation biofuel manufacturing zone designated under sub.
(2) and does not renew operation of the business or a similar business in the aviation biofuel manufacturing zone within 12 months of the cessation of operations.
4.
Fails to comply with the requirements under sub.
(6).
- 2026 Legislature - 14 - LRB-4823/1 MDE/EKL/EHS:skw&cdc ASSEMBLY BILL 619 S ECTION 17 (b) The corporation may, not later than 5 years after a year in which the corporation certifies a business for tax benefits under sub.
(3), require the business to repay any tax benefits the business claims for the year in which the business failed to comply with an agreement entered into with the corporation.
(c) The corporation shall determine the maximum amount of the tax benefits that a certified business may claim and shall notify the department of revenue of this amount.
(d) The board shall verify, under s.
238.03 (2) (e), the information submitted to the corporation by a business for the purpose of claiming tax benefits.
(e) The corporation shall adopt policies and procedures to administer this section.
(6) R EPORTING REQUIREMENTS .
Beginning not later than 30 days after the end of the quarter during which a business is certified for tax benefits under sub.
(3), and no later than 30 days after the end of each quarter during which the business is certified for tax benefits under sub.
(3), the business shall submit a progress report to the corporation and to the chief clerk of each house of the legislature that includes all of the following:
(a) Any efforts of the business, including the efforts of the business’s contractors, to recruit residents of this state to employment opportunities created by the aviation biofuel project.
(b) Any efforts of the business to collaborate with apprenticeship programs registered by the department of workforce development.
(c) The number of residents of this state and individuals outside this state - 2026 Legislature - 15 - LRB-4823/1 MDE/EKL/EHS:skw&cdc ASSEMBLY BILL 619 S ECTION 17 that are employed within the aviation biofuel manufacturing zone in the aviation biofuel project.
END )