“The more income you have, the higher the credit you get,” said Bob Schmidt, DOR research and policy division director. “So it’s very much top-tier income earners are the ones receiving the credit by volume.”

Gov. Tony Evers proposed in the 2019-20 budget a cap on the tax credit so it would only apply to the first $300,000 of qualified income, raising a projected $516.7 million in tax revenue over the biennium. That was ultimately stripped from the budget.

Jobs not required

Bauer said the credit helps drive down production costs and makes Wisconsin factories more competitive in the global market.

He added the credit has helped recipients expand production, make capital improvements or maintain or grow their workforce.

The true effectiveness of the credit is difficult to track, as credit recipients are not required to share how they spent the offset tax dollars, and there is no job creation or retention requirement.