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Wisconsin Development Zones

Businesses that want to expand, relocate, or begin operation within Lafayette County can take advantage of our designation as a Wisconsin Community Development Zone (CDZ) or our Wisconsin Agricultural Development Zone (ADZ) designation.

The Community Development Zone (CDZ) program provides tax credits for new, full-time jobs created, or for a portion of environmental remediation costs to qualified business entities. The Agricultural Development Zone (ADZ) program offers tax credits to agriculturally related businesses for job creation, capital investment by the business, or for land, building, and equipment acquisition. The ADZ program also offers tax credits equal to a percentage of environmental remediation expenses to qualifying businesses. Both of these tax benefit initiatives are administered by the Wisconsin Department of Commerce.

COMMUNITY DEVELOPMENT ZONES

Lafayette County and neighboring Grant County have been combined as one of the 22 Wisconsin Community Development Zones (CDZ). The State has committed $38 million dollars of Wisconsin Income Tax Credits available to assist expansion, relocation, and start-up businesses within any one of these pre-determined zones. The State of Wisconsin has allocated $1 million dollars to the Lafayette/Grant County CDZ.

The purpose of this program is to stimulate economic development in areas suffering from economic hardship, improve the quantity and quality of employment opportunities available to people who are unemployed and those who may face barriers to employment, and encourage private sector investment and job creation within distressed areas.

Certified CDZ employers are eligible to receive job credits of up to $8,000 for hiring people who fall within one of the 11 targeted worker categories, or job credits of up to $6,000 for hiring any Wisconsin resident. The amount is dependent upon wage and benefits paid for each new position created. Qualified businesses can receive an environmental remediation credit of 50% for qualified remediation expenditures as part of a job-creating project.

Once the tax credits have been awarded, they can be carried forward by the business recipient for up to 15 years and used as needed.

AGRICULTURAL DEVELOPMENT ZONES

Lafayette County is one of five counties in the Wisconsin Agricultural Development Zone — Southwest Region. The region’s counties of Lafayette, Grant, Green, Iowa, and Richland share in $1 million dollars of State Tax Credits available to assist agricultural and food processing related businesses.

The purpose of the Agricultural Development Zone (ADZ) is to help attract, promote, retain, and encourage the expansion of agricultural businesses which include all operations involved with the growth, production, processing, manufacturing, distribution, wholesale, and retail sales of agricultural and food products. It is designed to assist Wisconsin in regaining its prominence in the dairy industry and dairy processing production.

Certified Agricultural Development Zone (ADZ) employers can receive job credits of up to $8,000 for each new, full-time job created, the amount dependent upon wages and benefits of new positions. Qualified businesses can receive tax credits of up to 3% of the cost for capital investment in the acquisition of land, buildings, or equipment, or for an environmental remediation credit of 50% for qualified remediation expenditures as part of a job-creating project.

Once the tax credits have been awarded, they can be carried forward by the business recipient for up to 15 years and used as needed.

More detailed information about the Community Development Zone (CDZ) program and the Agricultural Development Zone (ADZ) program is available by clicking on their respective links.

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