Waukesha-based Husco International LLC was among five companies to have state tax credits revoked during the first quarter of fiscal 2017, according to a new Wisconsin Economic Development Corp. report.
The information is a new part of the agency’s quarterly report to its board. It is part of an effort at greater transparency for an organization that has faced a number of questions since it was created as a replacement for the state Department of Commerce in 2011.
“We’ve been revoking tax credits almost since we started,” WEDC spokesman Mark Maley said, noting the report would now be a regular occurance.
Husco paid $126,185 to WEDC at the end of September, making good on a pledge the company made earlier in the year. The company announced at the end of June it would shut down production in Waukesha for its off-highway business, eliminating 100 jobs.
Husco was awarded up to $880,000 in tax credits in 2013 as part of a $45 million expansion project at its Waukesha and Whitewater facilities.
Companies that receive awards from WEDC are contractually required to meet objectives related to job creation, retention or capital investment. Those that do not fulfill contractual obligations are subject to clawbacks or denial of tax credit claims.
The company said at the time it would pay back the tax credits it had claimed and Maley said the company had been upfront with the agency throughout the process.
In total, WEDC revoked $348,541 in tax credits for which Husco was eligible. The company had not claimed all of the credits and ended up paying the agency for what it had claimed.
Other revocations during the quarter included Novation Companies Inc., which filed for bankruptcy. The Kansas City-based firm was awarded $750,000 in credits in 2012. While the agency revoked $664,794 in credits, only $1,950 had been utilized to date.
New Berlin-based Emteq Inc. was awarded $725,000 in credits in 2012 and WEDC revoked $109,252 in September. That case has been referred to the Department of Revenue to work out the collection.
Baraboo-based Teel Plastics Inc. had $68,760 in credits revoked and paid the full amount to WEDC before the end of July. The company was awarded $149,000 in credits in August 2010.
The agency also revoked qualified new business tax credits for seven investors of Neenah-based Renewegy after the investors did not maintain their investments. The revocations totaled $12,960.
