Bill
Bill > AB670
WI AB670
WI AB670Exempting persons engaged in certain contract research services from the sales and use tax. (FE)
summary
Introduced
11/19/2025
11/19/2025
In Committee
02/25/2026
02/25/2026
Crossed Over
02/19/2026
02/19/2026
Passed
Dead
Introduced Session
Potential new amendment
2025-2026 Regular Session
Bill Summary
This bill exempts persons engaged in contract research services from the sales and use tax for the purchase of machinery and equipment that is consumed or destroyed in use exclusively for qualified research. Under the bill, “contract research services” is research conducted by a person for a customer that, if conducted by employees of the customer, would constitute qualified research. Current law provides a sales and use tax exemption for the purchase of machinery and equipment that is consumed or destroyed in use exclusively for qualified research by persons engaged in manufacturing on manufacturing property and by persons engaged primarily in biotechnology. Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill. For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.
AI Summary
This bill expands the sales and use tax exemption for research-related machinery and equipment by creating a new category of "contract research services." Specifically, the bill defines contract research services as research conducted by a person for a customer that would qualify as "qualified research" if performed by the customer's own employees. The bill broadens the definition of qualified research to include research funded within a combined business group and research funded through contract research expenses, as defined by the Internal Revenue Code. Additionally, the bill extends the sales and use tax exemption to persons engaged in contract research services in Wisconsin, allowing them to purchase machinery and equipment that is consumed or destroyed during qualified research without paying sales tax. This change aims to support and incentivize research activities by reducing the tax burden on businesses conducting contract research. The bill will take effect on the first day of the third month after its publication.
Committee Categories
Budget and Finance
Sponsors (4)
Last Action
Available for scheduling (on 02/25/2026)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://docs.legis.wisconsin.gov/2025/proposals/reg/asm/bill/ab670 |
| Fiscal Note - AB670: Report of the Joint Survey Committee on Tax Exemptions | https://docs.legis.wisconsin.gov/2025/related/fe/ab670/ab670_jscte.pdf |
| AB670 ROCP for Joint Committee on Finance | https://docs.legis.wisconsin.gov/2025/related/records/joint/finance/1970268.pdf |
| Analysis - LC Amendment Memo | https://docs.legis.wisconsin.gov/document/lcamendmentmemos/2025/REG/AB670.pdf |
| AB670 ROCP for Committee on Ways and Means | https://docs.legis.wisconsin.gov/2025/related/records/assembly/ways_and_means/1963188.pdf |
| Assembly Amendment 1 | https://docs.legis.wisconsin.gov/document/amends/2025/REG/AB670-AA1.pdf |
| Fiscal Note - AB670: Fiscal Estimate From DOR | https://docs.legis.wisconsin.gov/2025/related/fe/ab670/ab670_dor.pdf |
| BillText | https://docs.legis.wisconsin.gov/document/proposaltext/2025/REG/AB670.pdf |
Loading...