Jobs Tax Credit

A new jobs tax credit is available for businesses for taxable years beginning in 2010 and thereafter. "Business" means any organization or enterprise operated for profit, including a sole proprietorship, partnership, firm, business trust, joint venture, syndicate, corporation, limited liability company, or association. For purposes of the jobs tax credit, "business" does not include a store or shop in which retail sales are the principal business.

The Department of Commerce may certify a person to receive the jobs tax credit if (a) the person is operating or intends to operate a business in Wisconsin, and (b) the person enters into a contract with the Department of Commerce. The Department of Commerce may then allocate credits to persons who are certified.

The credit is available to persons that increase net employment in the person's business. The credit is based on the amount of wages paid to an eligible employee in the taxable year (not to exceed ten percent of such wages) and the costs incurred in the taxable year to undertake certain training activities.

For taxable years beginning in 2010 and 2011, the credit may only be used to offset tax due on the tax return. Any excess credit for 2010 and 2011 can be carried over to taxable years beginning in 2012. For taxable years beginning in 2012, any excess credit from 2010 and 2011 and any new credit for 2012 will be refunded.

For further information on credits, you may visit the Department of Commerce website at www.commerce.wi.gov, write to the Wisconsin Department of Commerce, P.O. Box 7970, Madison, WI 53707-7970, or call the Department of Commerce at 608-266-1018.

Last updated December 14, 2010