Tax Credits

Dairy Manufacturing Facility Investment Credit

The Dairy Manufacturing Facility Investment Credit Program provides refundable credits for businesses that have invested to modernize or expand dairy manufacturing facilities in Wisconsin.

Businesses that are engaged in the processing of milk into dairy products or processing dairy products for sale commercially are eligible to apply for tax credits under this program.

• Building construction, including storage and warehouse facilities
• Building additions
• Upgrades to utilities, including water, electric, heat and waste facilities
• Milk intake and storage equipment
• Processing and manufacturing equipment, including pipes, motors, pumps, pasteurizers, homogenizers, vats, evaporators, dryers, concentrators and churns
• Packaging and handling equipment, including sealing, bagging, boxing, labeling, conveying and product movement equipment
• Warehouse equipment, including storage racks
• Waste treatment and waste management equipment, including tanks, blowers, separators, dryers, digesters and equipment that uses waste to produce energy, fuel or industrial products
• Computer software and hardware used for managing the claimant's dairy manufacturing operation, including software and hardware related to logistics, inventory management and production plant controls

"Dairy product" is defined as a value-added, saleable product resulting from processing milk or another dairy product - and includes beverage milk products; soft milk products such as yogurt, ice cream and cottage cheese; butter; non-fat dried milk; whole milk powder; dried whey; whey protein concentrate or isolates; casein; and dairy waste that can be used to produce energy, fuel or industrial products.

Application Process
Businesses must submit an application form, which must be completed and either postmarked or delivered to the Department after the end of the applicant's taxable year in which the eligible capital investment occurred, and no later than February 15 of the subsequent taxable year.

If credits are approved by the Department, a claimant must use Department of Revenue Schedule DM (Schedule DMK-1 for cooperatives) to claim them.  The form is available at the Wisconsin Department of Revenue website.

For questions or information, contact DATCP’s Mike Bandli at 608-224-5136 or mike.bandli@wisconsin.gov. 

Allocation of Tax Credits
DATCP will certify applicants that have met the eligibility criteria and will allocate tax credits.  In determining the allocation of tax credits, the Department will consider the following:

• The jobs created by the project;
• The salaries, wages and other employee benefits of the jobs created by the project;
• The impact of the project on the dairy industry in Wisconsin;
• The extent to which the area served by the project is economically distressed;
• The amount of new, eligible capital investment in the project;
• The impact of the project on business in Wisconsin; and
• Any previous assistance from the Department.

The Department may prorate some or all of the allocations in order to broaden the potential for promoting economic development and addressing the above criteria.

Links

Administrative Rules - 2 page PDF

Frequently Asked Questions