Report: State overpaid thousands in tax credits

Report: State overpaid thousands in tax credits
Posted at 10:10 AM, May 27, 2016
and last updated 2016-05-27 11:21:11-04

MADISON, Wis. (AP) -- Wisconsin's job creation agency has erroneously awarded more than $412,000 in tax credits to companies over how many jobs they created, and the final total could be in the millions, a new review showed.

The Wisconsin State Journal reported Friday the detail came out in a review by the Wisconsin Economic Development Corp. The agency first revealed the tax credit issue at a board meeting last month, but Thursday's report was the first time the size of the problem was detailed.

The agency is reviewing 222 tax credits awarded since 2006 over the way jobs were counted. Based on 18 awards checked so far, more than $448,000 in over-awarded credits. About $36,000 was under-awarded.

With so many more credits to check, the overage may go significantly higher. Chief executive Mark Hogan declined to give an estimate to a board committee. Hogan said the agency may work with companies to try to recoup any excess credits by reducing the amount of tax credits that have yet to be verified.

Just as the full board did last month, the committee discussed the issue in open session Thursday before moving into closed session for further talks about the tax credit problem.