By Jim Dickrell
A 10% investment tax credit has resulted in more than a half-billion dollars in reinvestment in Wisconsin dairy farms.
The state's Department of Revenue has completed a tabulation of credits taken during 2005. The total claimed by 8,796 producers totaled nearly $42 million, which resulted in at least $565 million in reinvestments in BadgerState dairy farms. The credit can be claimed for dairy farm modernization or expansion. It began in 2005 and will end in tax year 2009.
"Wisconsin has been able to turn the corner on what had previously been steadily diminishing numbers of our state dairy herd," says Bill Oemichen, president and CEO of both the Wisconsin Federation of Cooperatives and the Minnesota Association of Cooperatives. He credits the tax credit with much of Wisconsin's jump in cow numbers, up 7,000 head in 2006 over the previous year.
"We believe Minnesota would likewise benefit by enacting a livestock tax credit, and that is why we will continue to lobby hard on the issue," he says.