Wisconsin publishes Business Tax Incentives Guide
March 2, 2017
By Stacey May, Director of Tax Credits
The Wisconsin Department of Revenue recently published their Business Incentives Guide for the 2016 tax year. If you operate a business in the state of Wisconsin, it would be wise to see if you can take advantage of any of these incentives.
Of note is the recently enacted Business Development Credit, which provides incentives for capital investment, training, job creation and corporate headquarters location or retention for new or current businesses located in Wisconsin. In order to obtain the credit, the business must be certified by the Wisconsin Economic Development Corporation (WEDC).
In order to be certified:
- The business plans to annually increase its net employment in Wisconsin above the business’s employment in Wisconsin the year before its certification date;
- The business is operating, or intends to operate, in the state of Wisconsin; and
- The business applies and enters into a contract with WEDC.
Evaluation factors for certification include:
- The extent to which the project will contribute to the economic growth of Wisconsin
- The extent to which the project will increase geographic diversity of available tax credits throughout Wisconsin
- Whether the project would occur without the allocation of tax credits
- The extent to which the project will increase employment in Wisconsin
- The financial soundness of the business
- Any previous financial assistance the business received from the department of commerce or WEDC
After being certified, WEDC will determine credits equal to all or a mix of the following:
- Up to 10% of wages paid to an eligible employee in the taxable year
- An additional 5% of wages if the eligible employee is employed in an economically distressed area
- Up to 50% of the training costs of eligible employees to develop knowledge, employability and flexibility in the work place as well as skills unique to the business
- Up to 3% of personal property investment and up to 5% of real property investment if the capital investment is at least $1 million or $10,000 per employee
- A percentage of wages paid to eligible employee positions created or retained in relation to a corporate headquarters in Wisconsin
Other details and applications procedures apply, and businesses should consult with their tax advisors and attorneys to evaluate potential eligibility before seeking certification from the WEDC.