Manufacturing and Agriculture Credit - F. Manufacturing Questions

  1. A manufacturer generates income from the sale and installation of cabinets. What standard should be used to determine whether the cabinets should be treated as real property (sales and use tax laws, property tax laws, common law, etc…)?

  2. A manufacturer generates income from the following activities: sales of machinery and equipment, installation of that machinery and equipment, and maintenance/service contracts related to the machinery and equipment. Would all income of the manufacturer be considered qualified production activities income?

  3. How are the production gross receipts, and the numerator and denominator of the manufacturing property factor computed for a taxpayer that manufactures property entirely in Wisconsin?

  4. How are the production gross receipts, and the numerator and denominator of the manufacturing property factor computed for a taxpayer that manufactures property partly in Wisconsin and another state?

  5. How do related party sales between combined group members affect the computation of the manufacturing credit?

  6. If a company contracts with a service provider to manufacture its products, who qualifies to claim the manufacturing credit?

  7. Is property that is exempt from property taxes included in the numerator of the manufacturing property factor for purposes of computing the manufacturing and agriculture credit?


FOR QUESTIONS OR COMMENTS CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Corporation Franchise/Income Tax Assistance
PO Box 8906
Madison, WI 53708-8906
Phone: (608) 266-2772
Fax: (608) 267-0834
Email additional questions to DORFranchise@wisconsin.gov

February 1, 2019