Wisconsin Ag Connection - Dairy Farm, Food Processor Tax Credits Approved by JFC

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Dairy Farm, Food Processor Tax Credits Approved by JFC
Wisconsin Ag Connection - 04/09/2010

Dairy farmers and food processing companies that plan to modernize or expand their operations may soon be getting some help from the state government. On Wednesday, the Legislature's Joint Finance Committee voted 15-0 in support of legislation that would extend the Dairy Investment Tax Credit for two years, as well as establish a food processing modernization tax credit. Both are aimed at encouraging growth in Wisconsin's agricultural and business climate.

If approved, Cooperative Network President Bill Oemichen says the dairy tax provisions will make a big difference to the struggling dairy sector.

"We have worked with our elected officials on the DITC since its inception," said Oemichen. "Thankfully, our elected officials continue to keep our state's dairy industry as a top priority. Agriculture is a vital part of the state's economy and one of the few growing sectors in a struggling overall economy."

Meanwhile, the food processing provision provides an income and franchise tax credit for 10 percent of the amount that an owner, or company, pays in a taxable year for food processing plant and food warehouse modernization or expansion related to the food processing operation.

Another provision in the bill would expand a program that gives tax credits to businesses that start, relocate or expand in certain areas.

The measure had previously received unanimous recommendation from the Assembly Committee on Agriculture, and is now scheduled to be taken up in the full Assembly next Tuesday.

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