Wisconsin offers a variety of economic incentives designed to encourage business growth, job creation, and innovation across industries like manufacturing, technology, agriculture, and clean energy.  With an emphasis on fostering a strong business climate, the state’s incentive programs provide significant opportunities for businesses looking to invest and expand in Wisconsin.  The following guide highlights key incentives available for businesses in the state.

Wisconsin Economic Development Corporation (WEDC) Business Development Tax Credit

Overview

The WEDC administers several programs designed to incentivize businesses to expand and create jobs in the state.  One of the primary programs is the Business Development Tax Credit, which provides credits to businesses that contribute to economic growth through capital investment and job creation.

Eligibility

• The business must be located in Wisconsin and engaged in eligible activities such as manufacturing, R&D, or infrastructure development.

• The business must create a specified number of new, full-time jobs or make significant capital investments.

Incentive Value

• Tax credits can be awarded based on the amount of new capital investment and jobs created.

• The program provides flexible credit amounts, ranging from a small percentage of the investment to larger credits for higher levels of job creation and economic impact.

Application Process

Businesses must apply through WEDC, providing information about their planned project, the number of jobs to be created, and capital investments.

Wisconsin Manufacturing Tax Credit

Overview

To encourage the growth of Wisconsin’s manufacturing sector, the state offers a Manufacturing Tax Credit that reduces the income tax burden on eligible manufacturing businesses.  This incentive is aimed at expanding the manufacturing base and fostering job creation within the industry.

Eligibility

• The business must be engaged in manufacturing or processing in Wisconsin.

• The business must demonstrate that the manufacturing activities create jobs and contribute to the state’s economic development.

Incentive Value

• The Manufacturing Tax Credit provides a tax reduction of up to 7.5% on the qualifying income derived from manufacturing activities.

• The value of the credit depends on the amount of income attributable to eligible manufacturing operations.

Application Process

Businesses must file the necessary tax forms and submit a detailed report to the Wisconsin Department of Revenue (DOR), outlining eligible manufacturing activities.

Wisconsin Research and Development (R&D) Tax Credit

Overview

The Wisconsin R&D Tax Credit is designed to encourage businesses to invest in innovation, technology, and research activities.  This incentive helps businesses offset some of the costs associated with developing new products, processes, and technologies, which are essential for long-term growth.

Eligibility

• The business must engage in research and development activities within Wisconsin.

• The R&D must result in the development or improvement of products, processes, or services.

Incentive Value

• Businesses can receive a credit worth 5.75% of their eligible R&D expenses.

• The credit applies to expenditures such as wages, supplies, and contract costs directly tied to R&D activities.

Application Process

Businesses must apply through DOR, providing a detailed report of their R&D activities and expenditures.

Wisconsin Opportunity Zones

Overview

Wisconsin participates in the federal Opportunity Zone program, which incentivizes businesses to invest in economically distressed areas.  By offering tax benefits at both the state and federal levels, Opportunity Zones aim to attract capital to underserved areas and promote economic growth.

Eligibility

• The business must invest in a designated Opportunity Zone in Wisconsin.

• The investment must contribute to the economic revitalization of the area by creating jobs, improving infrastructure, or supporting other local economic development activities.

Incentive Value

• Businesses may receive tax relief on capital gains, and in some cases, property taxes related to qualifying investments in Opportunity Zones.

• There are federal tax incentives available as well, including deferrals on capital gains and exclusion from tax on gains from Opportunity Zone investments if held for a specified period.

Application Process

Businesses must apply through WEDC or DOR, providing investment details and evidence of the economic impact.

Wisconsin Film Tax Credit

Overview

The Wisconsin Film Tax Credit incentivizes filmmakers to produce films and digital media content in the state.  The program is designed to stimulate the local economy by attracting large-scale film productions and supporting related industries such as hospitality and construction.

Eligibility

• The film production must meet certain in-state expenditure requirements, including the hiring of local labor.

• Eligible costs may include wages, equipment rental, set construction, and location fees.

Incentive Value

• The tax credit offers up to 25% on qualified production expenses.

• Credits are available for both film and television productions, as well as interactive media and digital content projects.

Application Process

Film producers must apply through the Wisconsin Department of Administration (DOA), submitting production budgets, location plans, and documentation on local spending.

Wisconsin Energy Efficiency Incentives

Overview

Wisconsin offers several incentives to businesses implementing energy-efficient technologies and practices.  These programs aim to reduce energy consumption, lower operating costs, and contribute to sustainability goals across the state.

Eligibility

• The business must be implementing energy-efficient practices or purchasing energy-saving equipment such as lighting, HVAC systems, or energy-efficient machinery.

• The business must be located in Wisconsin and meet specific environmental and energy use standards.

Incentive Value

• Incentives include rebates, tax credits, and grants for qualifying energy efficiency projects.

• The specific value depends on the type of project, the amount of energy saved, and the overall environmental impact.

Application Process

Businesses must apply through the Focus on Energy program or DOA, providing information on energy-saving projects and

Wisconsin Technology Development Incentives

Overview

Wisconsin has a range of incentives designed to foster the growth of technology companies.  These incentives are geared towards businesses involved in the development and commercialization of new technologies, including software development, biotech, and clean technology.

Eligibility

• The business must be involved in developing new technologies or products in Wisconsin.

• The business must be able to demonstrate the potential for growth, innovation, and job creation.

Incentive Value

• Incentives may include tax credits for R&D activities, grants for commercialization, and funding for technology-focused infrastructure development.

• The value of these incentives depends on the scope of the technology development project and the number of jobs created.

Application Process

Businesses must apply through WEDC or other technology development agencies, submitting detailed business plans and growth projections.

Wisconsin New Markets Tax Credit (NMTC) Program

Overview

The NMTC program provides tax incentives to businesses investing in low-income communities.  This program encourages the growth of businesses in underserved areas, particularly those that create jobs and stimulate local economies.

Eligibility

• The business must invest in low-income communities or designated underserved areas within Wisconsin.

• The investment must lead to the creation of jobs, infrastructure improvements, or community development activities.

Incentive Value

• Businesses can receive a credit worth up to 39% of the total investment amount over a seven-year period.

• The tax credit applies to equity investments made in qualifying low-income projects.

Application Process

Businesses must apply through DOR, providing detailed investment plans and proof of community impact.