Manufacturing and Agriculture Credit - I. Credit as Income

  1. Is the credit includable in taxable income?

  2. Should the MA credit be included in income in the year following the year of computation even though the credit is not used and is carried forward?

  3. When the MA credit is reported as income is it considered qualified production activities income?

  4. When the MA credit is reported as income is it included in the numerator and denominator of the production gross receipts factor?

  5. Is the manufacturing credit added to income on the pass-through entity's return where the credit was originally calculated, or at the individual level where the credit was claimed?

  6. The credit is income in the year following the year computed. If a partner leaves the partnership in the year following the computation of the credit, is the partner required to include the credit in their income?

  7. If the partnership files a final return, do the partners' need to add the amount of credit computed on the final partnership return in their taxable income in the year after the credit is passed through to them?

  8. If a partners' manufacturing and agriculture credit passed through from a partnership is recomputed because the partner uses qualified production activities income to claim the credit for net taxes paid to other states, is the partner required to include in income the subsequent year a) their share of the credit computed by the partnership in the previous year or b) the amount claimed by the partner on their tax return in the previous year?

  9. If an individual passes away and an MA credit is computed on their final individual income tax return, is the credit amount included in Wisconsin income on their estate's tax return for the following year?

Applicable Laws and Rules

This document provides statements or interpretations of the following laws and regulations enacted as of December 27, 2022: secs. 71.05, 71.07, 71.21, 71.26, 71.28 and 71.34, Wis. Stats., and 26 U.S. CFR § 1.199-1.

Laws enacted and in effect after this date, new administrative rules, and court decisions may change the interpretations in this document. Guidance issued prior to this date, that is contrary to the information in this document is superseded by this document, according to sec. 73.16(2)(a), Wis. Stats.

​​Contact Us​

Wisconsin Department of Revenue​
Corporation Franchise/Income Tax Assistance
PO Box 8906
Madison, WI 53708-8906
Phone: (608) 266-2772
Fax: (608) 267-0834

The department welcomes your input on our guidance. Submit comments on this guidance document.

Guidance Document Number: 100164

December 27, 2022