— Wisconsin manufacturing leaders are urging members of Congress to extend tax provisions enacted in 2017, warning a failure to do so would “constitute a massive tax increase” for their industry.
Wisconsin Manufacturers & Commerce President and CEO Kurt Bauer on Friday said “we just can’t afford to see that happen.” He spoke during an online news conference organized by WMC and the National Association of Manufacturers, focused on the federal tax and spending bill that recently cleared the House and is now before the Senate.
Bauer called for lowering energy costs by tapping into North American natural resources such as critical minerals and reducing the cost of doing business with “sensible regulatory relief” including changes to permitting.
“All of the aforementioned policy categories, which are critical to global competitiveness for U.S. manufacturing, are addressed to some degree in the reconciliation package pending before the Senate and should be included in the final bill,” he said. “Doing so will accomplish the goal of making U.S. manufacturing stronger, which should be a bipartisan objective.”
NAM has issued a brief that says Wisconsin would lose 110,000 jobs and $19.5 billion in GDP if Congress doesn’t “preserve pro-manufacturing tax policies” in the legislation and allows them to expire at the end of this year.
Austin Ramirez is president and CEO of Waukesha-based manufacturer Husco, vice chair for NAM’s Small and Medium Manufacturers Group and board chair for the Metropolitan Milwaukee Association of Commerce. He noted some elements of the 2017 tax cut have already expired in recent years, adding “Husco has had to trim our sails” as a result.
“Debt financing is now more expensive for all companies with significant depreciable assets, especially manufacturers like Husco,” he said. “And we can no longer immediately expense capital equipment costs, forcing Husco to spread smaller investments over many years. And the damage will pile up if Congress does not act.”
Ramirez also noted a tax code provision related to research and development expenses expired about two years ago, causing the company to amortize annual R&D expenses over a five-year period, meaning it can only deduct 20% of those expenses per year. By comparison, companies in China can deduct 200% of annual R&D expenses, he said.
“Our biggest geopolitical foe is incenting and encouraging R&D investment, while here in the U.S. today, because the provision has expired, we’re penalizing companies like Husco that are investing in R&D,” he said, adding “that’s a $20 million issue for me.”
Meanwhile, NAM President and CEO Jay Timmons on Friday urged members of the Senate to act early this summer on the tax bill. He argued companies’ plans for hiring and growing are at risk “without the certainty and competitiveness” provided by the legislation that cleared the House.
“The rocket fuel of tax reform, it touched communities all across the country, and that included big cities, small towns, main streets and certainly manufacturing shop floors,” he said. “But unfortunately, the rocket is nearly out of fuel … without action, the consequences will be absolutely devastating. More than 6 million American jobs lost, more than $1 trillion drained from our economy.”
When asked about the possibility of the bill’s failure contributing to a recession, Timmons said “uncertainty is a killer” for economic growth.
“If you lose 6 million jobs, I think by definition that is probably going to be recessionary,” he said. “So, there is a very good chance that we could see that if this doesn’t happen soon.”
— Dem lawmakers are proposing a tax credit for bicycle purchases that they say would improve accessibility for working families.
In a cosponsorship memo sent to other lawmakers on the legislation, bill authors say the effort “seeks to remove potential barriers for another equitable, environmentally friendly, and healthy option” for parents and their kids.
“This piece of legislation helps provide equity for all children, especially those in poverty, to have access to bicycles and healthy neighborhoods,” they wrote.
Under the bill, anyone whose family income doesn’t exceed 200% of the federal poverty line could claim the credit for the purchase of bicycles or electric bicycles for their dependents, according to the Legislative Reference Bureau. The refundable tax credit would be limited to $200 per dependent, and recipients would have to submit documentation of the bike’s cost with their tax return.
The bill is being circulated by Reps. Lee Snodgrass of Appleton, Deb Andraca of Whitefish Bay, Alex Joers of Middleton, Lori Palmeri of Oshkosh and Renuke Mayadev of Madison as well as Sens. Chris Larson of Milwaukee, Kelda Roys of Madison, Mark Spreitzer of Beloit and Melissa Ratfliff of Cottage Grove.
The cosponsorship deadline is 2 p.m. June 17.
See the bill text.
— Sausage maker Johnsonville plans to add about 100 jobs in Wisconsin after recently shutting down a production facility in Illinois.
The Sheboygan Falls company on Friday announced it would be creating about 75 new jobs at its Watertown facility as it adds a second shift, while adding 25 more jobs at its Sheboygan Falls campus. Hiring has begun and will continue through the summer, the announcement notes.
Early last week, the company had told its 274 workers in Momence, Ill., that its packing plant would be shut down and demolished later this year. Johnsonville says it can “best optimize its fresh sausage operations at its other, newer, locations” in Wisconsin and Kansas.
“In addition, Johnsonville will make significant capital equipment investments in the Meadowside and Riverside production facilities on its Sheboygan Falls campus, building additional capacity to support current and future consumer demand,” the company said in a statement.
See the release.
— The WHEDA Foundation will award $2 million in grants this year to groups offering transitional residences, “extremely low-income” housing and emergency shelter.
The foundation of the Wisconsin Housing and Economic Development Authority this year is celebrating its 40th anniversary, according to the recent announcement. Elmer Moore, Jr., CEO and executive director for WHEDA, says the foundation’s grant program has put $40 million into improvement and accessibility projects.
“We’re proud to continue this program for another year,” he said in a statement.
Grants are capped at $50,000, and can be used for rehabilitation, adding accessibility features and new construction. Recipients can include certain nonprofits or cooperatives; community development, redevelopment and housing authorities; and local governments, including tribal authorities.
The goal of the program is to improve housing options for residents with “complex needs,” such as those with developmental or intellectual disabilities, homeless youth, people earning 30% or less of the area median income and others.
Applications are being accepted through the end of July.
See the release.
— The Universities of Wisconsin Board of Regents has reelected Amy Bogost for another one-year term as president.
The regents also reelected Kyle Weatherly as vice president.
Both joined the board in May 2020. Bogost is a civil rights attorney, while Weatherly is president of Alta Medical, a Milwaukee-based company that makes medical compression garments.
TOP STORIES
‘Our Louisiana Purchase’: Green Bay area officials reach deal to move century-old coal piles
Why Madison leaders are anxious about a favorite financing tool
Kohl’s distribution center to close, more than 750 jobs affected
TOPICS
AGRIBUSINESS
– Ag Foundation grows with donor support
CONSTRUCTION
– Redevelopment of Southridge Mall’s former Boston Store moves forward
FOOD & BEVERAGE
– Chicago restaurant The Vig to open location on The Couture’s second floor
– Third generation of Hartwig family involved in running Twig’s Beverage in Shawano
HEALTH CARE
– Wisconsin Medicaid director: New federal requirements would affect ‘the whole health care economy’
LABOR
– Johnsonville abruptly closes Illinois plant, bringing work and jobs to Wisconsin
MANUFACTURING
– BRP laying off 61 employees in Sturtevant as company pauses some production
REAL ESTATE
– Michigan investor buys large apartment complex near Northridge for $57.9 million
– $6M project would add affordable housing in Shorewood
RETAIL
SPORTS
– UW-Madison champion coach, wife plan horse ranch for struggling kids
– Milwaukee Bucks building $4M exclusive club at Fiserv Forum
TOURISM
– Summerfest 2025 loses its second headliner in three days
TRANSPORTATION
– New hangar planned for Waukesha County Airport
PRESS RELEASES
See these and other press releases
Brown County Board: Unanimously approves C. Reiss site agreement