State Program
Wisconsin Research Expense Credit
A partially refundable research credit based on qualifying increases in Wisconsin research expenses, with enhanced rates for certain eligible research activities.
Program Overview
Wisconsin provides a credit based on the increase in qualified research expenses conducted in Wisconsin. Enhanced rates may apply to qualifying research related to designing internal combustion engines and energy-efficient lighting systems. A portion of the credit may be refundable, with the remainder available for carryforward, subject to applicable requirements. Wisconsin generally follows federal Section 41 definitions applied to in-state activity.
Eligibility
- Corporations with qualified research expenses associated with research conducted in Wisconsin may qualify.
- Pass-through entities with qualifying research expenses may qualify, subject to applicable requirements.
- Qualifying research activities and expenses must meet the applicable requirements, including relevant IRC Section 41 definitions.
- Additional requirements may apply to claims seeking enhanced rates for eligible research activities.
Benefits
- Partially refundable credit against Wisconsin income or franchise tax liability, subject to applicable requirements.
- Enhanced rates may apply to qualifying research related to internal combustion engine design and energy-efficient lighting systems.
- Non-refundable portions of the credit may be carried forward for the applicable period, subject to Wisconsin rules.
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