GOP lawmakers are seeking to create a new tax break for nuclear fusion projects in Wisconsin, with a goal of making the state an “epicenter” for the technology’s development.
Sen. Dan Feyen of Fond du Lac, as well as Reps. Benjamin Franklin of De Pere and David Steffen of Howard, recently began circulating a co-sponsorship memo for the legislation. It would create a sales and use tax exemption for various machines and materials used exclusively for a qualified nuclear fusion technology project, certified by WEDC.
Along with laying out a long list of what would qualify — ranging from battery storage systems to lasers and cooling infrastructure — the legislation would also establish a definition for nuclear fusion technology projects. It essentially covers projects aimed at achieving controlled fusion of atomic nuclei or related research, according to the Legislative Reference Bureau.
The lawmakers say their bill would “magnetize investments, spark AI synergies, and create thousands of jobs, cementing our state as a clean energy powerhouse” through nuclear fusion.
“Picture Wisconsin powering its factories and farms with clean, endless energy from nuclear fusion — the sun’s secret, unlocked on Earth,” they wrote in the memo. “No longer a dream, fusion nears commercialization, with $2.5 billion invested in 2025 alone. To lead this charge, Wisconsin must exempt fusion technologies from sales and use taxes.”
Bill authors say the tax exemptions would help reduce the costs of research and development and lure fusion companies to Wisconsin. The memo notes that could include companies such as Commonwealth Fusion Systems, which recently raised $863 million.
“Wisconsin’s manufacturing prowess and Great Lakes cooling make us ideal for pilots,” they wrote, arguing the state will lose ground to California and Texas without the tax exemptions.
Several companies in the state are already working toward nuclear fusion energy, including Janesville’s SHINE Technologies and Realta Fusion in Madison.
Last week’s memo also ties in AI, which authors call “the perfect fusion partner” as it’s helping speed up advances in the field. In return, the enormous potential of fusion-based energy could help meet the rising energy demand driven by AI growth.
“Safe, abundant fusion aligns with our all the above approach to energy generation,” they wrote.
The co-sponsorship deadline is Wednesday at noon.
See the bill text and a recent story on Realta Fusion’s plans in the state.
