Agriculture Development Zone Tax Credits

The Wisconsin Agriculture Development Zone program can help you if you plan to expand your business, start a new one, or relocate your current business to Wisconsin which can be directly associated with agriculture and the food processing industries. The program is a tax benefit initiative designed to encourage private investment and to improve both the quality and quantity of employment opportunities.

This program is availiable for employers expanding or locating within Grant, Lafayette, Richland, Iowa and Green Counties, Wisconsin, which are subject to a Wisconsin income tax liability.

Effective January 1, 2003, the Agriculture Development Zone was formally designated by the Wisconsin Department of Commerce. A total of $5,000,000 in Wisconsin income tax credits has been allocated to the Agriculture Development Zone, which encompasses all of Grant County.

Purposes of the Program

  • To stimulate economic development in areas suffering from economic hardship.
  • To improve both the quantity and quality of employment opportunities available to persons who are unemployed and who may face barriers to employment.
  • To encourage the private sector to invest and create jobs in distressed areas.
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Program Credits

The tax credit is a dollar-for-dollar reduction in the Wisconsin income tax liability, with a carry-forward provision of up to fifteen years. For businesses which become certified as a Agriculture Development Zone Employer, the following tax credits are available:

  • A "jobs credit" of up to $8,000 for each full-time position/job created which is filled by a Wisconsin resident;
  • A "capital investment credit" of up to 3% for capital expenditures made by the designated business within the zone, i.e. building, equipment associated with an expansion/relocation
  • An "environmental remediation credit" up to 50% for undertaking qualified expenditures for environmental improvements as part of a qualifying business expansion project.
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Notes:

  1. Businesses must be certified by the Department of Commerce before they can undertake expenses or hire workers or make capital investments for which they expect to receive tax benefits.
  2. The amount if tax credits approved for a firm will depend upon the level of wages and employee benefits paid to new employees they are committing to hire, or based on the type and level of capital expenditures made by the business in the county. NOTE: The minimum wage paid to qualify for the tax credits is $10.00 per hour plus a benefit package should be offered.
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Who Should Apply?

The Agriculture Development Zone program has something to offer firms of all sizes in the agiculture and food processing industries including retail and services. Any firm planning an improvement or expansion in the Agriculture Development Zone may be eligible.

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What to do:

Contact the Development Zone Manager (see below) to discuss your proposed project. An information packet and a six page application form will be sent to you.

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The application process:

The Development Zone Manager will evaluate the proposed economic activity and assist the business in making and application for certification to the Wisconsin Department of Commerce. The application process is easy.

A Southwest Wisconsin Agriculture Development Zone Administrative Council oversees the program locally and has established guidelines for recommending an appropriate level of tax benefits to the Department of Commerce.

The Wisconsin Department of Commerce has the responsibility of monitoring the program and will verify any information presented by businesses in support of their tax benefits.

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For additional information contact:

  • Ron Brisbois, Executive Director
  • Grant County Economic Development Corporation,
  • Bronson Boulevard, Fennimore, WI 53809
  • Phone: (608) 822-3501
  • Fax: (608) 822-6019
  • E-Mail: gcedc@grantcounty.org
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