SALT Report 2433 – The Wisconsin Department of Revenue updated a publication that provides sales and use tax guidance for electrical contractors to include information regarding the exemption for renewable energy products. The publication also provides an updated list of the 62 counties that have adopted the 0.5% county tax as of April 1, 2013.
Renewable Energy Products Exemption
The publication states that a product whose power source is wind energy, direct radiant energy received from the sun, or gas generated from the anaerobic digestion of animal manure or other agricultural waste is exempt from sales and use taxes, if the product produces at least 200 watts of alternating current or at least 600 British thermal units per day. The exemption applies to purchases of qualified products by a contractor who will use the products to make real property improvements.
Qualified products include:
- Wind turbine generators, including blade assembly and towers
- Gas powered electric generators, furnaces, space heaters, and water heaters
- Photovoltaic cells, modules, and arrays, including tracking equipment that maintains orientation to the sun
- Solar thermal collectors
- Inverters used to transform direct current produced from a wind, gas, or solar powered generator into alternating current and property to connect the inverter to the generator, and
- Hardware required to install a wind, gas, or solar powered product
The publication also provides an overview of Wisconsin sales tax and use tax laws, registration, return filing, tax payments, the difference between real property and personal property, contractors as retailers and consumers, purchases and sales by contractors, and record keeping requirements.
For Further Information