Governor Walker signed Senate Bill 449 earlier this week, which allows for the transfer of economic development tax credits between eligible Wisconsin taxpayers. Representative Loudenbeck and Senator Gudex authored this bipartisan bill.
“Tax credits are one of the primary tools in the State of Wisconsin’s economic development toolbox,” said Patrick Schloss, President of Wisconsin Economic Development Accoation (WEDA). “For various reasons, many credits authorized by the state are either unused or unallocated. Incorporating this transfer mechanism will increase the appeal and utilization of Wisconsin’s tax credits; thereby, positioning communities – both rural and urban alike – for increased economic activity.”
Allowing the transfer of credits, within a contractually regulated environment, will create an immediate matchmaking environment and facilitate real estate transactions between businesses with limited income tax obligations and those with existing income tax liabilities. “Firms that lack sufficient levels of profitability and corresponding income tax obligations, due to business sector or life cycle considerations, will now have an opportunity to receive an accelerated and defined tax credit benefit,” said James Otterstein, Economic Development Manager from the Rock County Development Agency.
If specific thresholds are reached during the program’s initial three-year period, the Wisconsin Economic Development Corporation has the ability to expand this $15,000,000 offering.