Wisconsin: Walker budget finds another $128 M for corporate tax breaks

http://www.jsonline.com/business/123245453.html

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Manufacturers and agricultural businesses would be allowed to shave as much as 7.5% off what they pay in state income taxes under a motion passed by a joint legislative committee Friday night.

The measure, which will now be included in the budget lawmakers hope to pass this month, would give businesses that are assessed as manufacturing or agricultural for property tax purposes a dollar-for-dollar credit of 1.875% on their state income tax bill in 2013. That credit would rise to 7.5% in 2016.

Unused tax credits could be carried forward for as many as 15 years to offset future tax liabilities. The measure would cost $10.1 million the first year, ramping up to $128.7 million in 2016 and every year after that, according to a Legislative Fiscal Bureau estimate.

Without accounting for the credit, the Legislative Fiscal Bureau estimated the $1.8 billion of corporate income and franchise tax the state would pull in for the two fiscal years ending in June 2013 will represent 6.7% of all tax collected. The highest percentage of money collected would be $13.6 billion of personal income taxes, which is estimated to be nearly 51% of all taxes collected.

Wisconsin ranks 25th among all states for corporate income tax burden, according to a Journal Sentinel study done last year.


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