State R&D Tax Credits

Wisconsin

Credit Name: Wisconsin Research Expense Credit

Expiration Date: Unknown

Does it apply to C corps and pass-through entities?: Yes

Credit Carry forward: 15 years, partially refundable.

Description: A 5.75% credit for qualified research expenses that exceed 50% of average expenses for 3 tax years immediately preceding the tax year for which credit is claimed.

An additional 11.5% credit is available for expenses incurred during the development of certain internal combustion engines, and for activities related to certain energy efficient products.

Other Notes: “Qualified research expenses” are defined under Internal Revenue Code Sec. 41, occurring in Wisconsin. For taxable years beginning on or after January 1, 2021, and before January 1, 2024, up to 15% of the credit claimed can be refunded. For taxable years beginning on or after January 1, 2024, up to 25% of the research credit is refundable.