MADISON, Wis. (WSAU) -- A proposal in the Wisconsin Legislature would allow limited transfers of tax credits for businesses. Now, Wisconsin businesses may receive tax credits from the state that they may not be able to use because the credits are actually more than the company’s tax liability. State Senator Jerry Petrowski says Wisconsin needs to do what some other states are doing, and put those credits to good use. “Sometimes these credits sit there and sit there for years and aren’t used because the business really doesn’t have a tax liability. This enables them to go ahead and use those tax credits or to transfer them to somebody that they’re doing business with that can use them, so it frees up cash so they can continue to expand their business and grow.”
Petrowski says that many businesses are strapped for cash and cannot acquire the resources to help them grow, and allowing their unused tax credits to transfer to one of their suppliers will help everyone. “All of this depreciation creates an atmosphere where they don’t have a liability, and so this allows them to even grow faster and to hire more people, and use those credits towards other things that they’re doing, whether it be using it for renting space for the building, buying machinery that they’re using in their process.”
The Senator says unused tax credits don’t help anybody, and they don’t accomplish what they were intended to do. “What we want to do is make sure that the dollars sitting there are helping to build Wisconsin’s economy, to grow jobs in our state, and to expand commerce.”
Petrowski says making tax credits transferable is working in other places, and it’s time to do it in Wisconsin to help the state and our businesses remain competitive.