Insights

Working on an Electronics and Information Technology Manufacturing Facility Like Foxconn? Don’t Overlook These Tax Exemptions

 

Working on an Electronics and Information Technology Manufacturing Facility Like Foxconn? Don’t Overlook These Tax Exemptions

Manufacturing has long been a key driver of our nation’s economy. And thanks to advancements in technology, there has never been a more exciting time to be in the industry, as today’s companies are poised to make an even bigger impact than previous generations. In Wisconsin, specifically, many contractors are developing electronics and information technology manufacturing facilities, creating promising new economic opportunities — not only for the state itself but also for the contractors and subcontractors working here.

Last year, the state of Wisconsin signaled it supported this activity by providing a sales and use tax exemption for the sale of and the storage, use or other consumption of building materials, supplies, equipment and landscaping services applied to constructing or developing a facility in an electronics and information technology zone.

How Can You Leverage This Tax Opportunity?

As a Wisconsin-based contractor or subcontractor, you know the rules surrounding sales and use tax for your industry are complicated and can give way to administrative challenges. It’s important to note the exemption for electronics and information technology manufacturing zones is broad in scope and includes purchases which typically are not considered exempt to contractors. Make sure you fully explore all exceptions so that your company stays competitive while accurately addressing any sales and use tax obligations. Lay the groundwork for proactive audit defense by learning what documentation needs to be in place for exemption certificates, proof of project qualification and any items you use outside of the qualifying project.   

New electronics and information technology projects will help shape Wisconsin’s future — and so will your business. Contact one of Wipfli’s State and Local Tax consultants to make the most of this valuable tax opportunity.

Author(s)

Craig Cookle
Craig A. Cookle, CPA
Partner, Tax
View Profile
Daryl Ohland
Daryl L. Ohland, CPA, MST
Director
View Profile
Tara Johnson
Tara T. Johnson
Manager
View Profile
DeMoss_Austin
Austin DeMoss, MBA
Senior Consultant
View Profile