The Wisconsin Meat Processing Facility Investment Credit is a refundable tax credit for taxpayers who have invested to modernize or expand meat processing facilities in Wisconsin.
Businesses engaged in processing livestock into meat products or processing meat products for sale commercially may be eligible to apply for the tax credits. Applicants should have a valid meat processing license from the State or Federal government agency.
"Livestock" means domesticated food animals, other than fish and wild game animals. "Meat product" means a value-added, saleable and edible stand-alone product resulting from processing meat or another meat product by a USDA- or state-inspected facility.
Meat products do not include sandwiches, spreads, appetizers, soups, salads, dinners, pizzas, pasties or any other product that uses meat in any manner other than as the predominant ingredient. Meat products also do not include products that are processed through custom or mobile processing or slaughtering.
"Process" means to cut, grind, manufacture, compound, intermix or prepare meat or meat products for human consumption.
Tax credits are earned by incurring eligible expenses for meat processing modernization or expansion, which means constructing, improving or acquiring buildings or facilities or acquiring equipment, if used exclusively for meat processing and if acquired and placed in service in Wisconsin during taxable years that begin after December 31, 2008, and before January 1, 2017.
"Used exclusively" means used to the exclusion of all other uses except for use not exceeding 5% of total use.
Eligible expenses include:
- Building construction, including livestock handling, product intake, storage and warehouse facilities;
- Building upgrades;
- Upgrades to utilities, including water, electric, heat, refrigeration, freezing and waste facilities;
- Livestock intake and storage equipment;
- Processing and manufacturing equipment, including cutting equipment, mixers, grinders, sausage stuffers, meat smokers, curing equipment, cooking equipment, pipes, motors, pumps and valves;
- Warehouse equipment, including storage and curing 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 meat processing operation, including software and hardware related to logistics, inventory management, production plant controls and temperature monitoring controls.
Businesses which are eligible to apply for Wisconsin's Meat Processing Facility Investment Credit are not eligible for the Food Processing Plant and Food Warehouse Investment Credit. Retail establishments, including restaurants, are also not eligible.
A claimant of the credits may include either the operator of a meat processing operation or an owner of a building or facility in which the operation occurs.
Businesses must submit an application form, available through the Department, listing the eligible expenses for the taxable year. Each application must be completed and delivered to the Department after the end of the applicant's taxable year in which the eligible capital investments 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 MP to claim them. The form is available at the Wisconsin Department of Revenue website.
Businesses can earn up to 10% of the amount spent in the taxable year for modernizing and expanding meat processing facilities. The maximum amount a claimant can receive over the life of the program is $200,000. The Department has a total of $700,000 available to allocate for each fiscal year. The Department may prorate some or all of the allocations in order to broaden the potential for promoting economic development.
For more information, contact Mike Bandli of DATCP at 608-224-5136 or
mike.bandli@wisconsin.gov.
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