Change in state tax credit law expected to benefit more companies

Special to The Freeman

July 30, 2014

MADISON — The Wisconsin Economic Development Corp. has added a feature to its tax credit program that is expected to prompt more companies to utilize it, leading to additional growth and job creation throughout the state.

The change allows companies receiving state economic development tax credits to transfer those credits to other companies under certain conditions. Before the law was changed, those credits could only be used by the company that was authorized to receive them, according to a statement.

Under the new law, a company with no or little income tax liability that is planning a project can now receive those credits and transfer them to someone else in return for non-cash goods or services related to the project for which the credits were authorized, the statement said.

The new provisions only apply to project receiving economic development tax credits.

“We believe this change will lead to increase use of the tax credit, and will encourage more Wisconsin-based companies to grow here and more out-of-state companies to relocate here,” said Reed Hall, secretary and CEO of WEDC.