The program changes effective as of January 1, 2007 include:

There are a number of tax credit programs that can help businesses reduce their Federal and State tax liability. The employer tax credit incentives can help businesses create jobs, boost local economies and help new employees obtain and retain jobs.

For more information visit the WOTC info page on the DWD website

Economic Development Tax Credit

The Economic Development Tax Credit provides tax incentives to new or expanding businesses whose projects will affect distressed areas.

The Economic Development Tax Credit replaces five former Wisconsin tax credit programs - the Airport Development Zone, Agricultural Development Zone, Community Development Zone, Enterprise Development Zone and Technology Zone programs.  The new tax credit program eliminates all former zone boundaries, as well as creating new ways in which existing Wisconsin businesses or businesses relocating to Wisconsin can earn tax credits. The tax credits, which are nonrefundable and nontransferable, must be applied against a certified business's Wisconsin income tax liability.  In the case of an S-Corporation, LLC or other pass-through entity, tax credits flow through to the owners in the same way as the income.  The tax credits have a 15-year carry forward.

Eligible Activities:

Allocation of Tax Credits
Commerce will certify applicants that have met the eligibility criteria and will allocate tax credits.  In determining the allocation of tax credits, the Department will consider the following:
1. Whether the project will serve a public purpose;
2. Whether the project might not occur without the allocation of tax credits;
3. The extent to which the project will be financed with funds not provided by the State of Wisconsin;
4. Whether the project will displace workers in Wisconsin;
5. The extent to which the project will retain or increase employment in Wisconsin;
6. The extent to which the project will contribute to the economic growth of Wisconsin and to the well-being of Wisconsin residents;
7. Whether the project will be located in an economically distressed area;
8. Whether the project will be located in a rural area;
9. The extent to which the project will increase the geographic diversity of available tax benefits throughout Wisconsin;
10. The financial soundness of the business;
11. The ability of the business to utilize Wisconsin income tax credits; and
12. Any previous financial assistance that the business received from the Wisconsin Department of Commerce.

For additional information about the Economic Development Tax Credit program, contact Todd Jensen at 608/266-3074 or Todd.Jensen@Wisconsin.gov

Additional Information can be found at: Department of Commerce - Wisconsin Economic Development Tax Credit

The Wisconsin Department of Commerce also offers a variety of Special Tax Credit Programs that might affect your business. They manage a multiple tax credit programs that employers may wish to investigate for expansion and/or relocation.

For more information contact the Department of Commerce - Tax Credit Programs

American Recovery and Re-vestment Act Tax Benefits for Wisconsin Business

The American Recovery and Reinvestment Act (ARRA):
Tax provisions of the ARRA provide significant relief for Wisconsin Businesses. For Full details visit the Wisconsin Department of Revenue website at: http://www.revenue.wi.gov/news/090316b.html

Two New Federal Tax Benefits to Aide employers who Hire and Retain Unemployed Workers

Payroll Tax Exception for Hiring Unemployed Workers

The payroll tax exemption provides employers with an exemption from the employer’s 6.2 percent share of social security tax on wages paid to qualifying employees, effective for wages paid from March 19, 2010 through December 31, 2010.

Business Credit for Retention of Certain Newly Hired Individuals in 2010

This is a general business credit to encourage retention of the new hires. The employer may claim the credit for each employee who is a qualified employee for purposes of the payroll tax exemption and who remains an employee for 52 consecutive weeks, provided that the employee’s pay does not decrease significantly in the second half of the year. The amount of the credit is the lesser of $1,000 or 6.2 percent of wages (as defined for income tax withholding purposes) paid by the employer to the retained qualified employee during the 52 consecutive week period. The credit cannot be carried back but may be carried forward.

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