Tax Credit Legislation

The general concept of the proposed tax credit is to have the State of Wisconsin award credits to businesses that contract work to qualified nonprofit Community Rehabilitation Programs (CRP's). This would create an incentive for businesses to outsource manufacturing and other commercial services to CRP's, which will increase work opportunities for people with disabilities.

• Unemployment or underemployment exceeds 60% for people with disabilities in Wisconsin.
• "Waiting Lists" for work related services is over 2,000 people statewide.
• State tax credits would create incentives for business to outsource manufacturing and other commercial services to Community Rehabilitation Programs (CRPs).

• First, employment is vital to independence, empowerment, and quality of life for people with disabilities. Employment training is crucial to prepare people with disabilities to enter the job market. DWD indicates a shortage of workers for high demand service areas.
• Secondly, CRP industrial capacity is under utilized and they have a readily available labor force. Creates incentives to bring work back into the State of Wisconsin. Consistent with Governor Doyle's "Grow Wisconsin Plan" to improve manufacturing productivity and create a highly trained workforce.

Tax Credit Limitations

• Business must contract with a CRP to receive a tax credit equal to 5% of the amount paid to a CRP to perform work for the business.
• Maximum credit is $25,000 per year for each CRP under contract.
• Business may carry forward unused portion of credits for up to 15 years.

• Move people with disabilities into integrated employment
• Assist people in reaching full productivity
• Create more options for real work
• Reduce long term supports
• Expand affirmative industries

• Estimate over 700 jobs created (1st year)
• Increase in government revenues
  • -Personal Income Taxes
  • -Social Security Contributions
  • -Sales Taxes
• Reductions to government entitlements
  • -Medical Assistance (Medicare & Medicaid)
  • -SSI & SSDI Cash Benefit

Wisconsin Community Rehabilitation Programs (CRPs) provide valuable services to their communities and the people they serve.

CRPs

• provide real work for people with disabilities.
• prepare people for competitive employment in Wisconsin's communities.
• partner with businesses within their communities as outsourcing solutions.
• operate as affirmative industries.
• provide employment assessments, work adjustment services, skill training and placement services.

• Download a copy of the Tax Credit Main Points (pdf).
• History of SB-281
• History of AB-622
• Find your legislative contact information

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