Wisconsin Dairy Manufacturing Facility Investment Credit

  1. What is the Wisconsin Dairy Manufacturing Facility Investment Credit?
  2. How do I claim the Wisconsin Dairy Manufacturing Facility Investment Credit on my Wisconsin return?
  3. Who is eligible to claim the credit?
  4. Is the Wisconsin Dairy Manufacturing Facility Investment Credit considered taxable income?
  5. How is the credit determined?
  6. How do I obtain certification from the Department of Agriculture, Trade and Consumer Protection?

  1. What is the Wisconsin Dairy Manufacturing Facility Investment Credit?

    The dairy manufacturing facility investment credit is a refundable credit for taxpayers who have invested to modernize or expand dairy manufacturing facilities in Wisconsin and have been certified by the Department of Agriculture, Trade and Consumer Protection (DATCP). No credit may be claimed for taxable years beginning after December 31, 2013.

  2. How do I claim the Wisconsin Dairy Manufacturing Facility Investment Credit on my Wisconsin return?

    Use Schedule DM, Dairy Manufacturing Facility Investment Credit, to claim the credit. Schedule DM requires that a copy of DATCP certification be attached.

  3. Who is eligible to claim the credit?

    Individuals, estates, trust, partnerships, limited liability companies, tax-exempt organizations and dairy cooperatives that have invested in modernizing or expanding a dairy manufacturing facility in Wisconsin and are certified by DATCP.

    Tax-option (S) corporations, partnerships, LLCs treated as partnerships and dairy cooperatives cannot claim the credit at the entity level. However the credit attributable to the business operations of the tax-option (S) corporation, partnership, or LLC passes through to the entity’s shareholders, partners, or members. Members of a dairy cooperative may claim the credit in proportion to the amount of milk that each member delivers to the dairy cooperative.

  4. Is the Wisconsin Dairy Manufacturing Facility Investment Credit considered taxable income?

    The dairy manufacturing facility investment credit amount must be included in income on the Wisconsin franchise or income tax return for the year computed. However, effective for 2012, members of a dairy cooperative include the amount of credit on the tax return for the year following the year in which the credit is computed.

  5. How is the credit determined?

    The maximum dairy manufacturing facility investment credit available to all claimants for taxable years beginning in 2012 is $700,000. The credit is 10% of the amount spent for modernizing and expanding dairy manufacturing facilities (as allocated by DATCP), subject to a $200,000 maximum.

  6. How do I obtain certification from the Department of Agriculture, Trade and Consumer Protection (DATCP)?

    Visit the DATCP website at datcp.wi.gov, under Business, Tax Credits or write to DATCP, PO Box 8911, Madison, WI 53708-8911.

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Customer Service Bureau
Mailstop 5-77
PO Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2772
Fax: (608) 267-1030
Email: DORFranchise@revenue.wi.gov

January 3, 2014