​​Effective for taxable years beginning on or after January 1, 2007, a dairy manufacturing facility investment credit is available to individuals and corporations who modernize or expand a dairy manufacturing operation in Wisconsin. The credit may also be computed by and passed through a tax-option (S) corporation, partnership, limited liability company, estate, or trust.

This credit was enacted by 2007 Wisconsin Act 20. Details of the activities qualifying for the credit and the credit computation were provided in the December 2007 edition of the Wisconsin Tax Bulletin.

For the State of Wisconsin's fiscal year 2007-08, the total credit that may be claimed for all taxpayers is limited to $600,000. (This cap increases to $700,000 for the fiscal year 2008-09 and subsequent years.) The Department of Commerce is responsible for allocating this amount to qualifying claimants. To receive the dairy manufacturing facility investment credit, a claimant must first apply to the Wisconsin Department of Commerce. Following is a summary of how to apply for the credit:

1. Contact the Department of Commerce for the application materials. The individual responsible for providing the applications is Irv Possin, Executive Director of the Dairy 2020 Initiative. You may reach him at (920) 322-1888. You may also reach him by email at irv.possin@Wisconsin.gov.
   
   
2. As part of your application, complete Wisconsin Schedule DM, Dairy Manufacturing Facility Investment Credit, lines 1a through 1j, and provide it to the Department of Commerce.
   
   
3. Submit your completed application to the Department of Commerce by March 31, 2008 for any taxable year that began on or after January 1, 2007 and ended before March 31, 2008.

   If your taxable year that began in 2007 does not end until after March 31, 2008, the application deadline for the credit for your 2007 taxable year will be March 31, 2009. As a result, you may need to file an amended Wisconsin income or franchise tax return to claim the credit for your 2007 taxable year.

4. You will receive an award letter from the Department of Commerce notifying you of the amount of credit for which you are eligible, along with a verification form you will need to file with your Wisconsin income or franchise tax return as described in 5. below.
   
   
5. File your Wisconsin income or franchise tax return with the Department of Revenue, using Schedule DM to claim the dairy manufacturing facility investment credit. Attach a copy of the verification form from the Department of Commerce to the Schedule DM you file with the Department of Revenue.

The Department of Commerce is currently working on Administrative Rules to provide further guidance. If you have questions about this credit, you may contact Steven Sabatke, Economic Development Consultant, Wisconsin Department of Commerce, at (608) 267-0762 or by email at steven.sabatke@Wisconsin.gov.

January 17, 2008