ENTERPRISE COMMUNITY AND TRIBAL INCENTIVES FOR BUSINESSES
Wisconsin ranks 10th nationally in maintaining the well being of its children according to a study done in 2003 by the Anne E. Casey Foundation. According to the department of education Wisconsin has the nations 3rd lowest drop out rate in the nation.
Wisconsin's top five industries are dairy products, motor vehicles, paper products, meat products and small business. Organic agriculture is one of the fastest growing sectors in Wisconsin's agriculture economy. From 1997 to 2001 organic production grew 92%. Wisconsin has quickly become a national leader in organic production, ranking first in the nation in the number of organic dairy farms and second in the number of organic farms.
FAVORABLE TAX RATES
The total tax burden on business in Wisconsin as a ratio of business tax to local and total state taxes is among the lowest in the nation and is continuing to decrease. Business taxes are lower than those in 35 other states according to a study done by the Federal Reserve Bank of Boston in 2005, which measures more than fifteen taxes that can affect corporate profits.
FAVORABLE TAX POLICIES AND INCENTIVES
Wisconsin's favorable business tax policies include property tax exemption for manufacturing equipment, computers and computer equipment, inventories and pollution equipment, tax credits for energy, and energy uses in manufacturing, research and development.
Wisconsin also has the availability of using Hub Zones programs to offer opportunities for businesses located in the Northwoods NiiJii Enterprise Community. The Hub Zone Empowerment Contracting Program, included in the Small Business Reauthorization Act of 1997 stimulates economic development and creates jobs in low income communities by providing Federal contracting preferences to small business that are located in a Hub Zone, and that hire employees who live in a HubZone. This program applies to firms that are currently located within a HubZone, start-up business that are located in these areas, and existing firms that choose to move their business to qualified areas. A full and open competition contract can be awarded with price evaluation preference. The offer submitted by a small business will be considered to be lower than the offer of a non-eligible business if the offer of the Hub Zone small business is not more than 10% higher.
WISCONSIN ENTERPRISE DEVELOPMENT ZONES
The Enterprise Development Zone Program provided tax incentive to new or expanding businesses whose projects will affect distressed areas such as those within the Northwoods NiiJii Enterprise Community. Projects must affect distressed areas suffering from high unemployment, low incomes, declining population, declining property values, and plant closings, and that have high numbers of peoples on public assistance. Businesses earn credits only by creating new full time jobs or by conducting environmental remediation on Brownfield sites.
WISCONSIN TECHNOLOGY ZONES
Technology Zones provide Wisconsin State tax credits are available for new or expanding businesses in high tech sector businesses locating in a zone. Credits are available for an 8-year period and must be applied for through the Regional Planning Commission servicing the area.
FEDERAL WORK OPPORTUNITY TAX CREDITS
Federal Work Opportunity Tax Credits are a federal tax that encourages employers to hire targeted groups of job seekers reducing the employer's federal income tax liability by as much as $2400 per employee. The target groups include program recipients of Temporary Assistance to Needy Families (TANF), Food Stamps, Enterprise Community youth ages 16-17, recently hired Summer Youth Program Employees, veterans who are on Food Stamps, disabled persons who are completing rehabilitative services, ex-felons who are members of a low income family, and recipients of Social Security Income.
OTHER TAX INCENTIVES FOR ENTERPRISE COMMUNITY BUSINESS LOCATED ON RESERVATION LAND
1. No tribal corporate tax.
2. Tribes can be designated (FTZ) Foreign Trade Zones.
3. Sixty percent capital gains tax exclusion.
5. No unitary tax on foreign owned companies.
6. Targeted jobs tax credits.
7. Single sales factor tax treatment adopted.
8. A non-refundable environmental remediation credit. Credit of 50% of all remediation costs affected by environmental pollution in a Brownfield investigation. Twenty-five percent of all credit allocated must be for creation of full time jobs.
For more information, contact the Wisconsin Department of Commerce and your C.P.A.