MADISON – A Middleton-based manufacturer explained the importance of the Manufacturing & Agriculture Tax Credit (MAC) to its business and employment growth in a video released Thursday by Wisconsin Manufacturers & Commerce (WMC).
In an episode of WMC’s Two-Minute Drill series, Connor Meloy, Chief Operating Officer of Automation Components, Inc. (ACI), explained how critical the tax credit is to the company. With the savings, Meloy explains that ACI was able to purchase new equipment and that the company expanded with 84 new employees in 2018.
“We’ve grown a ton over the last five years and we really don’t want to see that growth slow down and we don’t think it’s going to slow down,” Meloy explains in the video. “However, without the MAC, we would have some difficult conversations about equipment and people. Without the MAC, I don’t think we would hire 84 people like we did in 2018, so it is extremely important.”
The video was released while the legislature and governor are debating the value of the MAC to creating jobs and incentivizing economic growth. Gov. Tony Evers proposes to all but eliminate the tax credit, which would raise taxes on manufacturers by $516 million over the state’s two-year biennium. The Republican-led legislature, however, has pushed back arguing the tax credit is critical to the state’s largest economic industry.
“We know the Manufacturing and Agriculture Tax Credit is a critical reason we have seen thousands of family-supporting manufacturing jobs created in recent years,” said WMC Director of Tax, Transportation and Legal Affairs. “ACI alone made a large capital investment in new equipment thanks to the MAC, and they were able to hire 84 new employees in 2018.”
WMC earlier in the week applauded Rep. John Nygren and Sen. Alberta Darling – the Co-Chairs of the Joint Committee on Finance – for working to remove the language from Gov. Evers’ proposed budget that essentially repeals the MAC.
“Raising taxes on the industry that built the middle class in our state is not the way to keep our economy strong,” added Fish. “We thank the legislature for defending Wisconsin’s manufacturers and their thousands of employees around the state from this massive tax hike.”
WMC plans to release additional testimonials from manufacturers in the coming weeks about how they have used the savings from the tax credit to reinvest in their companies and employees.