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Do Wisconsin manufacturers have a 0.4% tax rate? [1]

['Jacob Alabab-Moser', 'Wisconsin Watch', 'More Jacob Alabab-Moser', 'Fact Checker']

Date: 2023-02-02 21:33:05+00:00

Reading Time: < 1 minute

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Yes.

Wisconsin’s Manufacturing and Agriculture Credit gives entities in these industries an effective corporate tax rate of 0.4%.

The credit may be claimed on 7.5% of Wisconsin’s flat 7.9% corporate income tax rate, yielding an effective rate of 0.4%. Individual manufacturers and farmers may use the credit to lower their top personal income tax rate from 7.65% to 0.15%.

Experts disagree on whether the credit, which cost $334 million in 2019, has boosted job growth.

A 2019 University of Wisconsin-Madison study found manufacturing employment grew nearly twice as much in the Wisconsin border counties between 2013 and 2019 compared to counties just across the state line.

Critics have pointed out that the credit gives large tax cuts mostly to millionaires, costs more than what lawmakers estimated at the time of its passage and does not require recipients to create or even maintain jobs in Wisconsin.

This Fact Brief is responsive to conversations such as this one.

Sources

State of Wisconsin Department of Revenue: DOR Manufacturing and Agriculture Credit

Wisconsin Manufacturers & Commerce: Facts about the Manufacturing and Agriculture Credit

University of Wisconsin-Madison | Crow Center for Research on the Wisconsin Economy: The case for the Manufacturing and Agricultural Tax Credit

Wisconsin Public Radio: Majority of manufacturing tax credits go to millionaires in Wisconsin

Wisconsin Budget Project: Six reasons to eliminate Wisconsin’s costly, ineffective manufacturing tax credit

Wisconsin State Legislature: Legislative Reference Bureau

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If we send you a request to change or remove Wisconsin Watch content from your site, you must agree to do so immediately. You are welcome to republish our articles forusing the following ground rules. For questions regarding republishing rules please contact Andy Hall, executive director, at [email protected] Do Wisconsin manufacturers have a 0.4% tax rate? <h1>Do Wisconsin manufacturers have a 0.4% tax rate?</h1> by Jacob Alabab-Moser / Wisconsin Watch, Wisconsin Watch February 2, 2023 <h2>Yes.</h2> Wisconsin's Manufacturing and Agriculture Credit gives entities in these industries an effective corporate tax rate of 0.4%. The credit may be claimed on 7.5% of Wisconsin's flat 7.9% corporate income tax rate, yielding an effective rate of 0.4%. Individual manufacturers and farmers may use the credit to lower their top personal income tax rate from 7.65% to 0.15%. Experts disagree on whether the credit, which cost $334 million in 2019, has boosted job growth. A 2019 University of Wisconsin-Madison study found manufacturing employment grew nearly twice as much in the Wisconsin border counties between 2013 and 2019 compared to counties just across the state line. Critics have pointed out that the credit gives large tax cuts mostly to millionaires, costs more than what lawmakers estimated at the time of its passage and does not require recipients to create or even maintain jobs in Wisconsin. This Fact Brief is responsive to conversations such as <a href="https://twitter.com/SenChrisLarson/status/1616219481289670663" target="_blank" rel="noreferrer noopener">this one.</a> Sources State of Wisconsin Department of Revenue: <a href="https://www.revenue.wi.gov/Pages/FAQS/ise-MandA-general.aspx#gen1" target="_blank" rel="noreferrer noopener">DOR Manufacturing and Agriculture Credit</a> Wisconsin Manufacturers & Commerce: <a href="https://www.wmc.org/issues/facts-about-the-manufacturing-agriculture-credit/" target="_blank" rel="noreferrer noopener">Facts about the Manufacturing and Agriculture Credit</a> University of Wisconsin-Madison | Crow Center for Research on the Wisconsin Economy: <a href="https://crowe.wisc.edu/the-case-for-the-manufacturing-and-agricultural-tax-credit/" target="_blank" rel="noreferrer noopener">The case for the Manufacturing and Agricultural Tax Credit</a> Wisconsin Public Radio: <a href="https://www.wpr.org/majority-manufacturing-tax-credits-go-millionaires-wisconsin" target="_blank" rel="noreferrer noopener">Majority of manufacturing tax credits go to millionaires in Wisconsin</a> Wisconsin Budget Project: <a href="https://www.wisconsinbudgetproject.org/six-reasons-to-eliminate-wisconsins-costly-ineffective-manufacturing-tax-credit" target="_blank" rel="noreferrer noopener">Six reasons to eliminate Wisconsin’s costly, ineffective manufacturing tax credit</a> Wisconsin State Legislature: <a href="https://docs.legis.wisconsin.gov/misc/lfb/informational_papers/january_2021/0011_manufacturing_and_agriculture_tax_credits_informational_paper_11.pdf" target="_blank" rel="noreferrer noopener">Legislative Reference Bureau</a> This <a target="_blank" href="https://wisconsinwatch.org/2023/02/do-wisconsin-manufacturers-have-a-0-4-tax-rate/">article</a> first appeared on <a target="_blank" href="https://wisconsinwatch.org">Wisconsin Watch</a> and is republished here under a Creative Commons license.<img src="https://i0.wp.com/wisconsinwatch.org/wp-content/uploads/2021/02/cropped-WCIJ_IconOnly_FullColor_RGB-1.png?fit=150%2C150&quality=100&ssl=1" style="width:1em;height:1em;margin-left:10px;"><img id="republication-tracker-tool-source" src="https://wisconsinwatch.org/?republication-pixel=true&post=1276442&ga=UA-17896820-1" style="width:1px;height:1px;">

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