Wisconsin R&D Tax Credit Summary

Wisconsin R&D tax credit

Wisconsin State R&D Tax Credit

For taxable years beginning after December 31, 2014, a corporation may claim a research credit against the income/franchise tax, as allocated under Wis. Stat. §71.28(4)(d).

Refundable Tax Credit – No

  • The credit is equal to 5.75% of the amount by which the corporation’s qualified research expenses for the taxable year exceed 50% of the average qualified research expenses for the three taxable years immediately preceding the taxable year for the credit is claimed
  • If the corporation had no qualified research expenses in any of the three taxable years immediately preceding the taxable year for which the credit is claimed, the claimant may claim an amount equal to 2.875% of the corporation’s qualified research expenses for the taxable year for which the credit is claimed
  • “qualified research expenses” includes only expenses incurred by the claimant, incurred for research conducted in Wisconsin for the taxable year and does not include compensation used in computing the credit under Wis. Stat. §71.28(1dx) (development zones credit), the corporation’s base amount

Vehicle research credit

  • For taxable years beginning after December 31, 2014, a corporation may claim a research credit against the income/franchise tax, as allocated under Wis. Stat. §71.28(4)(d), equal to 11.5% of the amount by which the corporation’s qualified research expenses for the taxable year exceed 50% of the average qualified research expenses for the three taxable years immediately preceding the taxable year for which the credit is claimed
  • If the corporation had no qualified research expenses in any of the three taxable years immediately preceding the taxable year for which the credit is claimed, the claimant may claim an amount equal to 5.75% of the corporation’s qualified research expenses for the taxable year for which the credit is claimed

Energy efficiency research credit

  • For taxable years beginning after December 31, 2014, a corporation may claim a credit against the income/franchise tax, as allocated under Wis. Stat. §71.28(4)(d), equal to 11.5% of the amount by which the corporation’s qualified research expenses for the taxable year exceed 50% of the average qualified research expenses for the three taxable years immediately preceding the taxable year for which the credit is claimed
  • If the corporation had no qualified research expenses in any of the three taxable years immediately preceding the taxable year for which the credit is claimed, the claimant may claim an amount equal to 5.75% of the corporation’s qualified research expenses for the taxable year for which the credit is claimed

Carryforward

While the research credit is not refundable, amounts in excess of a taxpayer’s current tax liability can be carried forward for up to 15 years.

How to obtain the credit?

A taxpayer seeking the research expense credit, or the research credits applying to vehicles and energy efficient devices, must claim the credit no later than four years after the unextended due date of the return to which it relates.

Find out if you qualify for the R&D tax credit

 

SELL YOUR NOL’s AND R&D CREDITS

If your company hasn’t considered the R&D credit in the past because you have net operating losses (NOLs) and could not utilize the credit contact us today to find out which states allow you to sell your credits and losses for up to 95 cents on the dollar. Also, qualified start-up companies can now take a credit on their payroll taxes for their R&D credit, allowing your company to utilize the R&D credit immediately, even if your company does not have taxable income.
FIND OUT MORE TODAY

 

States Offering R&D Credit:

                             States Without R&D Credit

Alabama
District of Columbia
Missouri
Montana
Nevada
Oklahoma
South Dakota
Tennessee
Washington
West Virginia
Wyoming