Wisconsin Manufacturing Investment Credit Program (MIC)

2003 Wisconsin Act 99 provided for a new individual and corporate income tax credit for fuel and electricity used in manufacturing effective for taxable years beginning on or after January 1, 2008, for taxpayers with more than $25,000 of carryforwards.  The credit is nonrefundable and is equal to 100% of total unused manufacturers’ sales tax credit carryforwards.  The credit is amortized over 15 years, and any unused credit amounts in any one year may be carried forward to subsequent years.

Eligibility Criteria

• The business has retained 100% of full-time ¹ jobs that it employed in Wisconsin from December 23, 2003, through either December 31, 2006, or December 31, 2007; or

• The business’s average annual investment ² in Wisconsin from January 1, 2003, through either December 31, 2006, or December 31, 2007, is equal to no less than 2 percent of the total book value³ of the business’s depreciable assets in facilities that are based in Wisconsin; or

• The business’s average annual investment ² in Wisconsin from January 1, 2003, through either December 31, 2006, or December 31, 2007, is no less than $5,000,000.

¹Under s. 560.28 (1), Stats., “full-time job” means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 35 hours in a week.

²“Annual investment” means the purchase price of depreciable, tangible personal property, and the amount expended to acquire, construct, rehabilitate, remodel, or repair real property, for all of the taxpayer’s facilities that are based in Wisconsin, in each calendar year.

³“Book value” means an asset's cost minus the accumulated depreciation since the asset was acquired.