Your Business Advocate: Debate continues on “right of first refusal” (ROFR) bill

Wisconsin lawmakers are rethinking 2025 Senate Bill 28, known as the “right of first refusal” (ROFR), which would give in-state utility companies priority to build certain electric transmission lines. These lines deliver electricity from power producers to users, and under current federal rules, must be open to competitive bidding from both in- and out-of-state developers. ROFR would shift that process, giving Wisconsin utilities the first chance to take on these projects.

The bill stalled amid strong pushback—mostly from within the Republican party. The Assembly introduced a revised measure, now rebranded as the 2025 Wisconsin Energy Reform Act, which still includes ROFR provisions that would give in-state utilities priority to build high-voltage transmission lines. The replacement legislation adds new requirements for utility companies to solicit competitive bids from subcontractors and includes auditing measures to increase oversight. It also mandates that companies acquire farmland conservation easements when building large solar or wind projects on high-quality farmland. Additionally, it updates the state’s renewable energy rules to better accommodate nuclear power, which backers say is critical to attracting large data centers to Wisconsin. However, even with these changes, certain lawmakers remain unconvinced.

The ROFR concept has sparked extraordinary interest in the Capitol, with more time spent lobbying on the issue than any other bill in the second half of 2023—nearly 3,000 hours according to recent reporting. Debate continues as lawmakers weigh utility interests, energy infrastructure needs, and the potential financial impact on Wisconsin residents. The Fox Cities Chamber continues to actively monitor key legislation impacting our region’s employers, energy consumers, and economic development efforts. We’ll keep members informed as these proposals advance. Below is an updated list of the bills we are tracking.

AB 38/ SB 36 (Rep. Tusler/Sen. Jacque) – Creates an income tax exemption for cash tips paid to employees.

AB 17/SB 21 (Rep. Sortwell/Sen. James) – Establishes a tax credit for employee ownership conversion costs, a capital gains deduction for business transfers to employee ownership, and an employee ownership education and outreach program.

AJR 006/SJR 007 (Rep. Steffen/Sen. Bradley) – Recognizes nuclear power and fusion energy as clean energy sources critical to meeting Wisconsin’s energy demands. Declares the legislature’s commitment to expanding nuclear power, developing nuclear technologies, and investing in fusion energy.

AB 52/SB 60 (Rep. Bare/Sen. Spreitzer) – Expands the homestead income tax credit to provide additional relief for homeowners.

AB 60/SB 58 (Rep. Allen/Sen. Cabral Guevara) – Referendum questions to include how much property taxes would increase for the median-valued single-family home for certain referenda that affect property taxes.

AB 69/SB 90 (Rep. Murphy/Sen. Jacque) – The sales and use tax exemption for electricity and natural gas sold for residential use. Currently, residential electricity and natural gas are exempt from sales tax only during the winter months (November through April). This bill would expand that exemption to apply year-round. Because it impacts tax revenue.

SB 180 (Sen. Quinn) – Modifications to housing programs under the Wisconsin Housing and Economic Development Authority. This bill expands access and flexibility for three housing loan programs administered by WHEDA by increasing loan caps, broadening eligibility to include tribal entities, and allowing the use of tax incremental financing and historic tax credits. It also requires regional equity in fund distribution and eases certain requirements for local governments applying for loans.

LRB 2074 (Rep. Moses) – Creating a video game production tax credit and making an appropriation. This bill establishes a refundable video game production tax credit, offering 30% of eligible wages and expenditures related to the development, production, or creation of video game products. The credit applies to certain video game-related costs, excluding royalties, capital expenditures, marketing, and other specified expenses, and requires an application and audit submission to the Department of Revenue for eligibility.

LRB 0951 (Rep. Gustafson) – Exporting tobacco bars from the public smoking ban.

LRB 2655 (Sen. Habush Sinykin) – The form of referendum questions.This bill adds the requirement that the referendum question be in plain language.

AB 165 (Rep. Piwowarczyk) – This bill would prohibit taxpayer dollars from being used for the purpose of making payments to individuals under guaranteed income programs.