In Wisconsin

Wisconsin Manufacturing and Agriculture Credit

Wisconsin Manufacturing and Agriculture Credit

Wisconsin is well known for our manufacturing leadership. And because innovations in this industry continue to create a competitive advantage for our state, we provide specific incentives to manufacturers to maximize their production here. Chief among them is the Manufacturing and Agriculture Credit, which virtually eliminates the tax on income from manufacturing activity in the state.

How It Works

The manufacturing and agriculture tax credit is available to individuals and entities for taxable years that begin on or after January 1, 2013, for manufacturing and agricultural activities in Wisconsin. The tax credit is available for income derived from manufacturing or agricultural property located in Wisconsin and will offset a significant share of Wisconsin income taxes. The credit is a percentage of “eligible qualified production activities income.” It is being phased in as follows:

  • Tax year 2013 = 1.875 percent
  • Tax year 2014 = 3.75 percent
  • Tax year 2015 = 5.526 percent (effective corporate tax rate 2.37 percent)
  • Tax year 2016 = 7.5 percent (effective corporate tax rate: 0.4 percent)

For a corporation, eligible qualified production activities income is the lesser of:

  • eligible qualified production activities income,
  • income apportioned to Wisconsin, or
  • income taxable to Wisconsin as determined by combined reporting law, if the corporation is a member of a Wisconsin combined group.

The amount of credit not entirely offset against Wisconsin income or franchise taxes may be carried forward and credited against Wisconsin income or franchise taxes due for up to 15 years.

Claiming the Credit

The schedule to be used to claim the Wisconsin Manufacturing and Agriculture Credit is available on the Wisconsin Department of Revenue website.

For more information about the Wisconsin Manufacturing and Agriculture Credit, contact the Wisconsin Department of Revenue at 608.266.2772 or corp@revenue.wi.gov.