Dairy Facility Investment Credit

The Governor signed Senate Bill 260 (Wisconsin Act 237), pertaining to the dairy facility investment credit. Previously, members of a dairy cooperative could claim the “dairy manufacturing facility investment income tax credit’’ based on amounts paid in the taxable year by the cooperative to modernize or expand operations. The taxpayer would claim an amount proportional to the amount of milk that the member delivered to the cooperative. The cooperative member also claimed the credit for the taxable year in which the dairy cooperative paid to modernize or expand its operations.

However, S.B. 260 modifies the program by permitting dairy cooperative members to claim the credit in either the taxable year in which the eligible expenditures are made, or in the next taxable year. The change is effective through tax year 2016.

In an analysis of the legislation, the revenue department said S.B. 260 would have “minimal’’ fiscal impact on the state.