There are new changes to the tax credit programs administered by the Wisconsin Economic Development Corporation (WEDC). These changes were made to streamline WEDC’s previously existing tax credit programs and better align them with the needs of the target audience–Wisconsin companies and those that may be considering locating here.
As of December 31, 2015, the Economic Development Tax Credit and Jobs Tax Credit programs will no longer accept new applications. Credits that have been authorized through these programs under existing contracts will still be given out through the end date of the contracts already executed, subject to the terms of each award contract.
As of January 1, 2016, WEDC is now accepting applications for the new Business Development Tax Credit Program.
As the Manufacturing and Agriculture Tax Credit has been phased in, WEDC has seen a significant reduction in demand for Economic Development Tax Credits, which were non-refundable, and therefore of limited use to a company with little or no tax liability.
The new Business Development Tax Credits are refundable, meaning that if a company is authorized to receive a quantity of tax credits that exceeds its tax liability, the business can receive a refund for the difference.
Businesses can receive tax credits for activities including job creation, training, capital investment and corporate headquarters location or retention. Tax credits can only be claimed for job creation over and above a company’s previously existing employment base in Wisconsin. View more details about eligibility and other program information.
Through the new program, tax credits will be allocated on a calendar year, rather than a fiscal year, basis. Applications open January 1 and close December 31, or when all tax credits budgeted for the year have been allocated, whichever comes first. A total of $17 million has been budgeted for Business Development Tax Credits in calendar 2016, and $22 million in calendar 2017, in the biennial state budget.
The application process begins with contacting a regional account manager to discuss the opportunity and program eligibility. More information about the Business Development Tax Credit Program can be found on the WEDC website at InWisconsin.com/grow/assistance/btc.