Wisconsin Business Development Tax Credit (BDC)
Wisconsin Economic Development Corporation (WEDC)
Negotiated; typically $50K–$3M
Wisconsin's negotiated jobs and investment tax credit
Wisconsin's primary business attraction and expansion tax credit — awarded by WEDC to businesses that create or retain jobs, make significant capital investments, or train employees. The BDC is a discretionary, negotiated tax credit against Wisconsin income or franchise tax, structured as a refundable credit for qualifying companies. Credit amounts and terms are negotiated based on project size, job quality, and economic impact. Unlike formula-based credits, the BDC is approved by WEDC on a project-by-project basis.
- Funding type
- Tax Credit
- Level
- State
- Amount range
- $50,000 – $3,000,000
- Realistic amount
- A manufacturer creating 50 new jobs, investing $5M, and training 100 employees might receive $250,000–$400,000 in BDC cr…
- Deadline
- Rolling — applications accepted year-round through WEDC. Awards are approved by WEDC Board as needed.
- Status
- active
- States
- WI
- Payment model
- tax offset
Who qualifies
- Business must be creating net new full-time jobs (35+ hours/week) in Wisconsin, retaining jobs at risk, or making qualifying capital investments
- Training credit component: business provides job-related training to current or new employees
- Minimum thresholds vary by project type — WEDC evaluates job count, wages, investment, and economic impact case-by-case
- Business must demonstrate that the WEDC credit is a material factor in the project's location or expansion in Wisconsin (de facto 'but for' test)
- Company must execute a WEDC credit agreement before the activity generating the credit begins
- Annual compliance reporting required; credits earned only as verified milestones are met
- Refundable credit available for companies with fewer than 20 full-time employees or meeting other qualifying small-business conditions (WEDC determines)
Hard requirements
- Must be incorporated
What it covers
Eligible expenses
- Net new full-time job creation at or above WEDC-specified wage thresholds
- Retention of existing Wisconsin jobs at risk of relocation or elimination
- Capital investment in qualifying Wisconsin business assets (equipment, machinery, buildings, infrastructure)
- Job-related training costs for current or newly hired Wisconsin employees
Ineligible expenses
- Part-time or temporary positions (fewer than 35 hours/week)
- Jobs transferred from other Wisconsin locations (not net new to Wisconsin)
- Retail trade, food service, and most consumer-facing businesses (historically not awarded BDC)
- Activities commencing before WEDC credit agreement execution
- General training unrelated to current or future job duties
How to apply
-
1
Contact WEDC during site evaluation
Reach out to WEDC's Business Development team while the project is under active consideration. WEDC can provide an informal sense of likely award size before a formal application is submitted. Bring job projections, wage data, and capital investment plans.
~8 hrs
-
2
Submit BDC application to WEDC
Complete the WEDC application detailing: projected job creation or retention, average wages, capital investment, employee training plan (if applicable), and justification for why WEDC support is needed. WEDC staff evaluates and structures a credit offer.
~8 hrs
-
3
WEDC Board approves the credit award
WEDC staff presents the recommended award to the WEDC Board for approval. Board meets monthly. Large or complex awards may take 2–3 board cycles. Award includes credit amount, earning period, and performance conditions.
~8 hrs
-
4
Execute WEDC credit agreement
Sign the credit agreement specifying job/investment/training commitments, annual credit amounts, verification milestones, and clawback provisions. Agreement must be executed before activities begin generating credits.
~8 hrs
-
5
Earn credits annually and claim on WI tax return
WEDC verifies compliance annually. Credits are earned as milestones are confirmed and claimed on the Wisconsin income or franchise tax return. Refundable credits are received as a cash payment if they exceed tax liability.
~8 hrs
The BDC's refundable option is the sleeper feature — small WI companies with limited tax liability can receive cash refunds, not just credits. Confirm with WEDC whether your company qualifies for the refundable treatment early in negotiation.
Deadline & timing
Apply before project commencement. WEDC must approve the credit award before the company makes the investment or creates the jobs. Credits are earned over the agreement period (2–6 years) and claimed on annual Wisconsin income/franchise tax returns.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.