Bill > AB494

This bill increases the carryover period for research income and franchise tax credits from 15 to 50 years, allowing businesses to use unused research credits over a much longer timeframe. Specifically, the bill modifies existing tax law to extend the period during which companies can apply unused research expense credits against their Wisconsin income or franchise tax liability. The research credit is calculated based on a company's qualified research expenses that exceed 50 percent of their average research expenses from the previous three tax years. Under the new provision, if a company cannot fully use its research tax credit in a given year, they can now carry forward and apply those unused credits against taxes for up to 50 years, compared to the current 15-year limit. The bill also adds administrative provisions related to the credit, including rules about changes in business ownership and requirements for claiming the credit. The changes apply retroactively to all credits claimed from previous taxable years that have not yet been used, refunded, or expired.

Budget and Finance

https://docs.legis.wisconsin.gov/2025/proposals/reg/asm/bill/ab494