SPOTLIGHT PROGRAMS

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:

• ‍Job Creation: Up to 10% of annual wages for up to three years paid to eligible employees earning at least 150% of federal minimum wage. In an economically distressed an additional 5% may be awarded for eligible employees. Credits cannot be earned on wages over $100,000.
• ‍Job Training: Up to 50% of eligible training costs‍
• Capital Investment: Up to 3% of capital investment in business personal property; up to 5% of eligible capital investment in real property. The investment must be at least $1,000,000, or the investment must be equal to at least $10,000 per eligible employee.
• ‍Corporate Headquarters: Up to 10% of annual wages for up to three years of positions created or retained at corporate headquarters facility. Credits may not be earned on wages over $100,000.

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Enterprise Zone Jobs Tax Credit: Refundable corporate income tax credits are available for projects that are designated as an Enterprise Zone projects. This program provides the following tax credits for up to 12 years:

• ‍Job Creation:  Up to 7% of annual wages‍
• Job Retention: Up to 7% of annual wages if significant capital investment (over five years only)‍
• Capital Investment: Up to 10% of all capital expenditures‍
• Job Training:  Up to 100% of training costs‍
• Supply Chain:  Up to 1% of supply chain utilization ‍

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TAX CREDITS

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.‍

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Qualified New Business Venture: Provides transferable tax credits to eligible angel and venture fund investors who make equity investments in qualifying early-stage businesses.  Tax credits are equivalent to 25% of the value of the equity investment made.

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‍Research and Development Tax Credit: Incentivizes increasing research and development spending by providing a credit for activities including increasing research, research related to internal combustion engines, and research related to certain energy efficient products. Up to 15% of the R&D credit is refundable. Any unused R&D credits may be carried forward for up to 15 years.

• ‍Increasing Research: The credit is equal to 5.75% of qualified research expenses if they exceed 50% of the average qualified expense for the three taxable years immediately preceding. If they have no qualified research expense in any of those three taxable years, they may claim equal to 2.875% of qualified research expenses for the year credit is claimed.‍
• Internal Combustion Engines: The credit is equal to 11.5% of qualified research expenses if they exceed 50% of the average qualified expense for the three taxable years immediately preceding. If they have no qualified research expense in any of those three taxable years, they may claim equal to 5.75% of qualified research expenses for the year credit is claimed.‍
• Certain Energy Efficient Products: The credit is equal to 11.5% of qualified research expenses if they exceed 50% of the average qualified expense for the three taxable years immediately preceding. If they have no qualified research expense in any of those three taxable years, they may claim equal to 5.75% of qualified research expenses for the year credit is claimed.

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TAX EXEMPTIONS/ABATEMENTS

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.

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DIRECT FINANCIAL ASSISTANCE

Industrial Revenue Bonds: Offered as a tool to incentivize the expansion of expanding manufacturing facilities, these tax-exempt bonds stimulate capital investment and job creation by providing private borrowers with access to financing at interest rates that are lower than conventional bank loans. ‍

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Wisconsin Fund: Created in 2013, the $25 million Badger Fund of Funds has leveraged an average of $3.30 for every dollar invested. A proposal for a $100 million venture capital fund of funds, with a 2:1 match of private to state dollars, is currently under consideration in the state Legislature.‍

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Focus on Energy: Statewide energy efficiency and renewable resource program works with business to install cost-effective, energy efficient and renewable energy projects. Incentives and rebates are available for installing energy-efficient equipment. Incentives and rebates are tailored to a organizations unique needs. ‍

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Global Business Development Program: Grants reimburse part of the cost of export growth activities such as trade show attendance and customizing marketing materials for a new target market. Companies can attend global trade ventures and export education programs at a subsidized rate.‍

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Wisconsin Supplier Network: This online directory platform helps Wisconsin suppliers get connected with companies that need the parts and components they make—and serves as a resource for companies arriving in Wisconsin to quickly connect into the state’s robust, flexible, integrated and responsive supply chain.

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JOB TRAINING

Wisconsin Fast Forward Training Grants: This program reimburses businesses that provide customized occupational training for unemployed, underemployed and incumbent workers to qualify them for full-time employment, higher-level employment or increased wages. Companies in any industry, of any size, may apply for the grants, which range in size from $5,000 to $400,000 and require a 50% match of the grant amount.

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Last Updated: April 2023