​​2011 Wisconsin Act 237 provides that members of a dairy cooperative may claim the amount of dairy manufacturing facility investment credit passed through to them from the dairy cooperative in the year after the year in which the dairy manufacturing modernization or expansion occurs. The amount of the credit is added to the member's income in the year in which the cooperative member is allowed to claim the credit. This provision is effective April 20, 2012.

Under prior law, members of a dairy cooperative claimed the amount of dairy manufacturing facility investment credit passed through to them from the dairy cooperative for the year in which the dairy manufacturing modernization or expansion occurred. The amount of the credit was added to the member's income for that same year.

Example: The dairy cooperative computes a 2012 credit based on 2012 expenses for dairy modernization or expansion. The credit is allocated to members of the dairy cooperative. The members may claim the credit on their 2013 Wisconsin income tax return, and must report the amount of credit as income on that 2013 return. The credit may not be claimed on the 2012 return.

The department will allow a transitional adjustment for 2011. Members who have filed their 2011 Wisconsin income tax return and who did not claim the 2011 dairy cooperative credit on that original return or on a 2011 amended return may either (1) amend their 2011 return to claim the credit and report the credit as income, or (2) claim the 2011 dairy cooperative credit and report the credit as income on their 2012 return.

September 17, 2012