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 can earn up to 10% of the amount spent in a taxable year for modernizing and expanding dairy manufacturing facilities.  The maximum lifetime amount a business can receive is $200,000 for each of the entity's manufacturing facilities.  The Department has $657,100 available annually for eligible businesses other than dairy cooperatives.  A total of $700,000 is available annually for dairy cooperatives.

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.

Eligible expenses include:

• 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

Applicants should have a valid dairy plant license from the state or federal government agency.

"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.

Businesses which are eligible to apply for Wisconsin's Dairy Manufacturing Facility Investment Credit are not eligible for the Food Processing Plant and Food Warehouse Investment Credit. Retail establishments, including restaurants, are also not eligible.

Application Process

Businesses must submit an application form, which must be completed and 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 a manner the department believes is most likely to promote economic development. The Department may prorate some or all of the allocations in order to broaden the potential for promoting economic development.

 

Links

Administrative Rules - 2 page PDF

Frequently Asked Questions

DATCP Dairy Manufacturing Facility Investment Credit Application (3 page WORD)