Wisconsin lawmakers introduce Assembly Substitute Amendment 1 to Assembly Bill 619 to modify enterprise zone law by extending eligibility for income and franchise tax credits to the aviation biofuel manufacturing project, according to the Wisconsin Legislature. The amendment is designed to apply to one large-scale project and changes how existing enterprise zone rules apply to aviation biofuel manufacturing.
The amendment authorizes the Wisconsin Economic Development Corporation to certify no more than one business that manufactures biofuel in the state, provided that a majority of its output is aviation biofuel. For enterprise zone purposes, biofuel is defined as fuel created by converting organic matter derived from wood, with at least 80% of feedstock volume sourced within Wisconsin over a five-year period.
The proposal sets a new cap of $120 million on the total enterprise zone income and franchise tax credits that the certified aviation biofuel business may claim and allows an enterprise zone that hosts the project to remain in effect for up to 20 years. Under current enterprise zone law, designations are limited to a maximum duration of 12 years.
To qualify for certification, the aviation biofuel business must demonstrate economic due diligence by submitting a third-party feasibility study assessing conversion technology, feedstock availability, cost competitiveness, and job creation, along with a detailed business plan. The business plan must include signed letters of intent from timber suppliers, signed purchase commitments from biofuel buyers, and confirmed financing commitments covering required capital and operating costs.
The amendment is offered by Chanz Green and modifies Assembly Bill 619, which establishes an aviation biofuel manufacturing zone tied to a minimum private investment of $1.5 billion, authorizes up to $60 million in aviation biofuel manufacturing zone tax credits, and provides for a $150 million state-funded grant supported by public debt to assist with construction of aviation biofuel manufacturing facilities.
