Standard industrial classification codes for linen supply and industrial launderers and modifying the manufacturing and agriculture tax credit. (FE)
The passage of AB183 empowers businesses involved in the linen supply and industrial laundering sectors to access the same tax credits and exemptions available to traditional manufacturing entities. By modifying existing statutes, specifically in sections related to property tax and tax credits, the bill is set to enhance the financial viability of such establishments, potentially leading to increased investment and job creation within these sectors, which are essential for various industries including healthcare and hospitality.
Assembly Bill 183 (AB183) introduced in the Wisconsin Legislature focuses on the addition of standard industrial classification (SIC) codes for linen supply and industrial laundering within certain statutory frameworks. The bill aims to categorize linen supply and industrial launders as manufacturing industries for the purposes of property assessment and tax benefits. This reclassification allows property used for these services to be recognized under manufacturing property, which aligns with current industry practices and the economic realities of these businesses.
While the bill seeks to streamline tax benefits for specific industries, it may face opposition regarding the impacts this change could have on state tax revenue. Critics could argue that expanding the definition of qualified production property to include these services may decrease overall tax collections from other sectors. Additionally, there could be concerns surrounding the equitable treatment of various industries, with potential arguments from sectors not included in this reclassification that their tax obligations may unfairly increase as a result.