Agricultural Development Zones

The Department of Commerce has established an Agricultural Development Zone (ADZ) program to help attract, promote, retain and encourage the expansion of agricultural businesses in Wisconsin. This program is designed to assist Wisconsin in regaining its prominence in the dairy industry and in dairy processing production.

Following is a brief overview of the program:

Four regions have been designated as Wisconsin's Agricultural Development Zone.

$5 million in tax credits have been allocated to the zone.

Tax credits will be available for new and expanding businesses.

Agribusinesses can apply tax credits against their Wisconsin income tax.

Unused tax credits can be carried forward for 15 years.

Tax credits can be earned through:

1. Capital investments for real and personal property (3% of eligible expenses)
2. Job creation and retention
3. Environmental remediation (50% of eligible expenses)

Program Benefits
Development Zone tax credits include:

A non-refundable jobs credit for new, full-time jobs. Approximately one-fourth of the new employees hired to fill these jobs must come from one of Wisconsin's Target Groups. The actual amount of job credits is dependent upon wages and benefits. Starting wages for new positions must be at least $9.75 per hour. Full-time jobs are defined as regular, non-seasonal positions in which employees are scheduled to work at least 2,080 hours per year.

A non-refundable environmental remediation credit of 50% of all investigation and remediation costs affected by environmental pollution in a Brownfield, defined as an industrial or commercial facility, the expansion or redevelopment of which is complicated by environmental contamination.

At least 25% of all credits allocated must be for creating full-time jobs.

Agribusinesses planning to expand existing operations in a designated ADZ area, individuals planning to start a new business in an ADZ area or businesses considering a relocation to an ADZ area from outside Wisconsin may be eligible for ADZ tax credits. Additional information about Wisconsin's Agricultural Development Zone program may be obtained by contacting the local ADZ region coordinators listed at the right. Local ADZ personnel will discuss the proposed project and, if it is appropriate for the ADZ program, will assist the business in beginning the application process.