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Combined Heat and Power Partnership

Renewable Energy Sales Tax Exemptions

dCHPP Glossary (PDF) (2 pp, 53K)

Date Last Updated8/8/2013
Incentive TypeTax
State/FederalWI
Incentive Administrator/Contact OfficeWisconsin Department of Revenue
Incentive Initiation Date7/1/2011
Incentive Size and Funding SourceWisconsin has a 100% exemption from the sales and use tax for eligible purchases that apply to renewable energy.
Eligible RecipientPurchasers of eligible renewable energy items involving solar water heat, solar space heat, solar thermal process heat, photovoltaics, landfill gas, wind, biomass, solar pool heating, or anaerobic digestion.
Eligible FuelBiogas; Woody Biomass; Landfill Gas; Other
Eligible Project Size (MW)Solar, wind, and anaerobic digesters must be capable of producing at least 0.0002 MW of alternating current per day.
Minimum Efficiency Required (%)Does Not Specify
Other Selected Eligibility CriteriaWood sold as a fuel for residential use is exempt from the state sales and use tax. This definition includes wood, energy crops, biological wastes, biomass residues, and landfill gas.

The sale of qualifying biomass residues used as fuel for business activity is also exempt from the state sales and use tax gross receipts. Qualifying residues are defined as arising from the "harvesting of timber or the production of wood products, including slash, sawdust, shavings, edgings, slabs, leaves, wood chips, bark and wood pellets manufactured primarily from wood or primarily from wood residue."

Products whose power source is wind, solar radiation, or gas produced from the digestion of animal manure and other agricultural wastes are also exempt from the sales and use tax. The exemption does not apply to un-interruptible power sources that are designed primarily for computers. The law also exempts "receipts from the sale of and the storage, use, or other consumption of electricity or energy" produced by a qualifying system.
Application Form(s)Wisconsin Sasles and Use Tax Exemption Certificate (PDF) (4 pp, 160K)
Resource Website(s)

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