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Manufacturing and Agriculture Tax Credit reduces corporate income tax rate to 0.4%

By June 9, 2021 June 16th, 2021 No Comments

woman sorting applesThe state of Wisconsin has a long, successful history in manufacturing and agriculture. From sausage and cheese to motorcycles and military equipment, the industries are the foundation of Wisconsin’s economy. According to the Wisconsin Center for Manufacturing & Productivity website, more than 25% of the state’s labor force was in manufacturing last year and the industry was responsible for $12.8 billion in exports. And, according to the Department of Agriculture and the Trade and Consumer Protection website, the agriculture industry made up 12% of the state’s labor force last year and saw $3.37 billion in exports. 

A talented workforce, a robust technical college system and over 14.3 million acres of farmland are factors in the success of these industries. Wisconsin’s favorable tax environment is also helpful.  

Wisconsin’s manufacturing and agriculture tax credit is a statutory tax credit available to claimants that derive qualified production activities income from property located in Wisconsin that is assessed as either manufacturing or agricultural. According to the Wisconsin Economic Development Corporation website, “the tax credit amounts to 7.5% of ‘eligible qualified production activities income,’ resulting in an effective corporate tax rate of 0.4% as of 2016.” The tax credit is in perpetuity and has no maximum dollar limit.  

When combined with the state’s property tax exemption on production machinery and the sales and use tax exemption on products used in the manufacturing process, including repair parts, it is no wonder that Wisconsin continues to be a national leader in the agriculture and manufacturing industries.  

Learn more 

Contact colemanpeiffer@alliantenergy.com or visit Wisconsin Department of Revenue