Dairy Manufacturing Facility Investment Credit

The Dairy Manufacturing Facility Investment Credit is a refundable credit for businesses that have invested to modernize or expand dairy manufacturing facilities in Wisconsin.

Businesses – other than cooperatives – that are engaged in the processing of milk into dairy products or processing dairy products for sale commercially are eligible to apply for tax credits under this program.  A separate, companion program is being proposed for cooperatives.

"Dairy product" is defined as a value-added, saleable product resulting from processing milk or another dairy product - and includes beverage milk products; soft milk products such as yogurt, ice cream and cottage cheese; butter; non-fat dried milk; whole milk powder; dried whey; whey protein concentrate or isolates; casein; and dairy waste that can be used to produce energy, fuel or industrial products.

Application Process

Eligible businesses interested in applying for the Dairy Manufacturing Facility Investment Credit should contact Dairy 2020 Executive Director Irv Possin at 920/322-1888 or Irv.Possin@Wisconsin.gov; Steve Sabatke at 608/267-0762 or Steven.Sabatke@Wisconsin.gov; or one of the Department of Commerce's Area Development Managers, click here for list and map of state regions.

Businesses must submit an application form, available through the Department of Commerce, as well as a Department of Revenue Tax Schedule DM, listing the eligible expenses for the project.  Each application must be completed and either postmarked or delivered to the Department of Commerce after the end of the applicant's taxable year in which the eligible capital investment occurred, and no later than March 31 of the subsequent taxable year.

Allocation of Tax Credits

Commerce will certify applicants that have met the eligibility criteria and will allocate tax credits.  In determining the allocation of tax credits, the Department will consider the following:

1. The jobs created by the project;
2. The salaries, wages and other employee benefits of the jobs created by the project;
3. The impact of the project on the dairy industry in Wisconsini;
4. The extent to which the area served by the project is economically distressed;
5. The amount of new, eligible capital investment in the project;
6. The impact of the project on business in Wisconsin; and
7. Any previous assistance from the Department.