Tax Benefits + Incentives
Let us streamline this complicated process.
M7 can help with accessing tax structure, incentives, exemptions, credits and grants to make the Milwaukee region the right place for your company to grow and prosper.
By leveraging their experience and expertise, the M7 team can assist companies in understanding tax benefits and funding sources throughout the region. They are intimately familiar with available resources and can determine which ones are most suitable for your particular business. They can save time and effort for companies that may not have the resources or knowledge to navigate these funding options independently.
Focused on your unique needs, the Milwaukee 7 team will help develop an overall strategy to take advantage of everything the Milwaukee region has to offer.
State Tax Credits
Business Development + Enterprise Zone Refundable Tax Credit Programs
Support job creation, retention, capital investment and training. These refundable tax credits reduce a company’s state income tax liability or provide a refund creating a valuable incentive (application required).
Manufacturing + Agriculture Credit
Equal to 7.5% of qualified production activities income generated in Wisconsin. For corporations, who incur a 7.9% tax rate in Wisconsin, the credit effectively reduces the tax rate on manufacturing income in Wisconsin to zero.
Research + Development Credit
The State of Wisconsin offers a Research Credit, modeled after IRC § 41, that equals 5.75% of the excess Qualified Research Expenditures (QREs) over the base amount (50% of the prior 3 years’ QREs).
- 75% of QRE that exceed 50% of the last 3-year average
- 50% for designing energy efficient lighting systems, building automation and control systems, or automotive batteries for use in hybrid-electric vehicles
- Qualified research expenses are those eligible for the federal research credit (supplies, wages, and 65% paid to others for contract research services) and conducted in Wisconsin
- Up to 15% of the credit may be refunded if no tax liability
- Credit may be shared with other corporations that file a Wisconsin combined corporate tax return
Sales & Use Tax Exemptions
Machinery and Equipment used in Manufacturing
The purchase and use of machines and specific processing equipment used by a manufacturer.
Fuel + Electricity used in Manufacturing
The purchase and use of fuel and electricity used in manufacturing tangible personal property.
Qualified Research + Biotechnology
The purchase and use of machinery and equipment, including attachments, parts, and accessories, and other tangible personal property used exclusively and directly in qualified research for a business that is either engaged in manufacturing (in a building assessed as a manufacturing building for property tax purposes), or primarily engaged in biotechnology in Wisconsin.
Grants
Transportation Economic Assistance (TEA) Program
Provides matching state grants to governing bodies for road, rail, harbor, and airport projects that help attract employers to Wisconsin or encourage business and industry to remain and expand in the state.
Wisconsin Fast Forward Training Program
Awards funds to businesses from all Wisconsin industry sectors that reimburse the costs of customized occupational training for unemployed, underemployed, and incumbent workers. The customized, business-driven training will qualify workers for full-time employment, higher level employment, or increased wages.
Workforce Fast Forward Training Program
The Wisconsin Technical College System provides funds to support employers in their efforts to retain and advance the skills of their existing workforce and help offset customized training costs.
Energy Programs
Energy Innovation Grant Program
Covers a wide variety of energy related projects that reduce energy consumption and support renewable energy and energy storage, energy efficiency and demand response, or comprehensive energy planning.
Focus on Energy
Wisconsin's statewide energy efficiency and renewable resource program works with eligible businesses to install cost-effective, energy efficient and renewable energy projects. Financial incentives and rebates are available for installing energy efficient equipment.
Local (Incentives vary based on municipality)
Tax Increment Financing (TIF)
Wisconsin legislation allows for TIF as a financing option that allows a municipality (town, village, or city) to fund infrastructure and other improvements, through property tax.
Foreign Trade Zone (FTZ)
Southeastern Wisconsin is part of Foreign Trade Zone #41 managed by Port Milwaukee. Port Milwaukee’s goal is to encourage, facilitate, and expedite U.S. participation in international trade. The FTZ allows foreign and domestic merchandise to be admitted for storage, exhibition, assembly, manufacture, production and processing without formal customs entry procedures, the payment of customs duties or the payment of federal excise taxes.
One of the key advantages of an FTZ is the suspension or exemption of customs duties and federal excise taxes on goods within the zone. This means that duties and taxes are not paid until the goods leave the FTZ and enter the domestic market or are exported. This can provide cost savings for businesses operating within the zone, as it eliminates or defers the financial burden of customs duties and taxes.
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Ready to help.
Expansion or relocation is always a challenge. The Milwaukee 7 Partnership is your local advocate, simplifying and streamlining the investment process.
Interested in learning more?