Business Development Tax Credit (BTC) Program: Refundable tax credits may be provided to eligible businesses that create jobs, make capital improvements, invest in employee training, and/or locate or retain a corporate headquarters facility in Wisconsin. Credits can only be claimed in a tax year in which a company increases net employment in Wisconsin when compared to the previous tax year. This program provides the following tax credits:
Enterprise Zone Jobs Tax Credit: Refundable corporate income tax credits are available for companies that create new jobs and make capital improvements at business facilities in designated enterprise zones which are designated on a case-by-case basis. This program provides the following tax credits for up to 12 years:
Manufacturing and Agriculture Credit: This non-refundable credit is equal to 7.5% of eligible qualified production activities income and may be used to offset state income or franchise taxes. The annual tax credit reduces the company’s effective state corporate income tax rate to 0.4%. Unused credits may be carried forward for up to 15 years.
Qualified New Business Venture: Provides transferable tax credits to eligible angel and venture fund investors who make equity investments in early-stage businesses. Tax credits are equivalent to 25% of the value of the equity investment made. To qualify, the early-stage business must be headquartered in the state, have more than half its employees in the state, and be engaged in a qualifying industry sector.
Computer equipment, machinery and equipment used in manufacturing, and manufacturing, merchant and farm inventories are exempt from property tax. Sales and use tax exemptions are available for manufacturing machinery, equipment and materials, biotechnology and manufacturing research, production fuel and electricity, as well as alternative energy used in manufacturing.
Development Opportunity Zone: Non-refundable tax credits can be earned by new and expanding businesses in the cities of Beloit, Janesville, and Kenosha through job creation, job retention, capital investment and environmental remediation.
Workforce Training Grants: The state offers various training programs available for businesses relocating or expanding in Wisconsin, including a customized training program for businesses implementing new technology or production processes. The Workforce Training Grant offers grant reimbursements of up to 50% of eligible training costs up to $5,000 per job.