Increasing the carryover period of the research income tax credit, the official text

2025 - 2026 LEGISLATURE
LRB-4553/2
KP:cdc

2025 SENATE BILL 482
October 2, 2025 - Introduced by Senators Feyen, Habush Sinykin, Felzkowski and Wanggaard, cosponsored by Representatives Callahan, Armstrong, Born, Knodl, Melotik, Swearingen, Wittke, Zimmerman, Dittrich, B. Jacobson, Kreibich, Murphy, Mursau, Penterman, Piwowarczyk, Steffen and Subeck. Referred to Committee on Agriculture and Revenue.

An Act to repeal 71.28 (5b) (d) 1. and 71.47 (5b) (d) 1.; to renumber and amend 71.07 (4n) (d) and 71.28 (5) (b); to amend 71.07 (2dm) (h), 71.07 (2dx) (e) 1., 71.07 (2dy) (d) 1., 71.07 (3g) (c), 71.07 (3h) (d) 1., 71.07 (3n) (f), 71.07 (4k) (e) 2. b., 71.07 (5b) (d) 1., 71.07 (5d) (d) 2., 71.07 (5g) (d) 1., 71.07 (5i) (d), 71.07 (5j) (d) 1., 71.07 (5k) (d), 71.07 (5n) (d) 1., 71.07 (5r) (d) 1., 71.07 (5rm) (d) 1., 71.07 (6n) (d) 1., 71.07 (8b) (e), 71.07 (9m) (e), 71.07 (9r) (g), 71.07 (10) (d), 71.28 (1dm) (h), 71.28 (1dx) (e) 1., 71.28 (1dy) (d) 1., 71.28 (3g) (c), 71.28 (3h) (d) 1., 71.28 (3n) (f), 71.28 (4) (f), 71.28 (4) (k) 2., 71.28 (5g) (d) 1., 71.28 (5i) (d), 71.28 (5j) (d) 1., 71.28 (5k) (d), 71.28 (5n) (d) 1., 71.28 (5r) (d) 1., 71.28 (5rm) (d) 1., 71.28 (6) (e), 71.28 (6n) (d) 1., 71.28 (8b) (e), 71.28 (10) (d), 71.47 (1dm) (h), 71.47 (1dx) (e) 1., 71.47 (1dy) (d) 1., 71.47 (3g) (c), 71.47 (3h) (d) 1., 71.47 (3n) (f), 71.47 (4) (f), 71.47 (4) (k) 2., 71.47 (5g) (d) 1., 71.47 (5i) (d), 71.47 (5j) (d) 1., 71.47 (5k) (d), 71.47 (5r) (d) 1., 71.47 (5rm) (d) 1., 71.47 (6) (e), 71.47 (6n) (d) 1., 71.47 (8b) (e) and 71.47 (10) (d); to create 71.07 (4n) (d) 2., 71.28 (5) (b) 2.,
71.28 (5b) (e), 71.28 (5b) (f), 71.28 (5b) (g), 71.28 (5b) (h), 71.47 (5b) (e), 71.47 (5b) (f), 71.47 (5b) (g) and 71.47 (5b) (h) of the statutes; relating to: increasing the carryover period of the research income tax credit.

Analysis by the Legislative Reference Bureau
This bill allows claimants of the research income and franchise tax credit to carry over unused research credits for 50 years until they are used to offset tax liability in future years. Under current law, claimants may carry over unused research credits for the following 15 years after the credit is initially claimed. Under current law, the research credit is an income and franchise tax credit equal to a specified percentage of a person’s qualified research expenses that exceed 50 percent of the person’s average qualified research expenses for the three tax years immediately preceding the tax year for which the person claims the credit.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
Section 1. 71.07 (2dm) (h) of the statutes is amended to read:
71.07 (2dm) (h) The carry-over provisions of s. 71.28 (4) (5b) (e) and (f) as they relate to the credit under s. 71.28 (4) (5b) relate to the credit under this subsection.
Section 2. 71.07 (2dx) (e) 1. of the statutes is amended to read:
71.07 (2dx) (e) 1. Section 71.28 (4) (5b) (e) to (h), as it applies to the credit under s. 71.28 (4) (5b), applies to the credit under this subsection. Claimants shall include with their returns a copy of their certification for tax benefits and a copy of the department of commerce’s verification of their expenses.
Section 3. 71.07 (2dy) (d) 1. of the statutes is amended to read:
71.07 (2dy) (d) 1. Except as provided in subd. 2., s. 71.28 (4) (5b) (e) and (f), as it applies to the credit under s. 71.28 (4) (5b), applies to the credit under this subsection.

Section 4. 71.07 (3g) (c) of the statutes is amended to read:
71.07 (3g) (c) Section 71.28 (4) (5b) (e), (f), (g), and (h), as it applies to the credit under s. 71.28 (4) (5b), applies to the credit under par. (a).
Section 5. 71.07 (3h) (d) 1. of the statutes is amended to read:
71.07 (3h) (d) 1. Section 71.28 (4) (5b) (e) to (h) as it applies to the credit under s. 71.28 (4) (5b), applies to the credit under this subsection.
Section 6. 71.07 (3n) (f) of the statutes is amended to read:
71.07 (3n) (f) Section 71.28 (4) (5b) (e), (f), (g), and (h), as it applies to the credit under s. 71.28 (4) (5b), applies to the credit under this subsection.
Section 7. 71.07 (4k) (e) 2. b. of the statutes is amended to read:
71.07 (4k) (e) 2. b. The amount of the claim not used to offset the tax due and not certified for payment under subd. 2. a. or 2. ad. may be carried forward and credited against Wisconsin income taxes otherwise due for the following 15 50 taxable years to the extent not offset by these taxes otherwise due in all intervening years between the year in which the expense was incurred and the year in which the carry-forward credit is claimed.
Section 8. 71.07 (4n) (d) of the statutes is renumbered 71.07 (4n) (d) 1. and amended to read:
71.07 (4n) (d) 1. Section 71.28 (4) (b) to (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credits under this subsection.
Section 9. 71.07 (4n) (d) 2. of the statutes is created to read:
71.07 (4n) (d) 2. Section 71.28 (5b) (f), as it applies to the credit under s. 71.28 (5b), applies to the credit under this subsection.
Section 10. 71.07 (5b) (d) 1. of the statutes is amended to read:

71.07 (5b) (d) 1. Section 71.28 (4) (5b) (e) to (h), as it applies to the credit under s. 71.28 (4) (5b), applies to the credit under this subsection.
Section 11. 71.07 (5d) (d) 2. of the statutes is amended to read:
71.07 (5d) (d) 2. Section 71.28 (4) (5b) (e) to (h), as it applies to the credit under s. 71.28 (4) (5b), applies to the credit under this subsection.
Section 12. 71.07 (5g) (d) 1. of the statutes is amended to read:
71.07 (5g) (d) 1. Section 71.28 (4) (5b) (e) to (h), as it applies to the credit under s. 71.28 (4) (5b), applies to the credit under this subsection.
Section 13. 71.07 (5i) (d) of the statutes is amended to read:
71.07 (5i) (d) Administration. Section 71.28 (4) (5b) (e) to (h), as it applies to the credit under s. 71.28 (4) (5b), applies to the credit under this subsection.
Section 14. 71.07 (5j) (d) 1. of the statutes is amended to read:
71.07 (5j) (d) 1. Section 71.28 (4) (5b) (e) to (h), as it applies to the credit under s. 71.28 (4) (5b), applies to the credit under this subsection.
Section 15. 71.07 (5k) (d) of the statutes is amended to read:
71.07 (5k) (d) Administration. Section 71.28 (4) (5b) (e) to (h), as it applies to the credit under s. 71.28 (4) (5b), applies to the credit under this subsection.
Section 16. 71.07 (5n) (d) 1. of the statutes is amended to read:
71.07 (5n) (d) 1. Section 71.28 (4) (5b) (e) to (h), as it applies to the credit under s. 71.28 (4) (5b), applies to the credit under this subsection.
Section 17. 71.07 (5r) (d) 1. of the statutes is amended to read:
71.07 (5r) (d) 1. Section 71.28 (4) (5b) (e) to (h), as it applies to the credit under s. 71.28 (4) (5b), applies to the credit under this subsection.
Section 18. 71.07 (5rm) (d) 1. of the statutes is amended to read:

71.07 (5rm) (d) 1. Section 71.28 (4) (5b) (e) to (h), as it applies to the credit under s. 71.28 (4) (5b), applies to the credit under this subsection.
Section 19. 71.07 (6n) (d) 1. of the statutes is amended to read:
71.07 (6n) (d) 1. Section 71.28 (4) (5b) (e) to (h), as it applies to the credit under s. 71.28 (4) (5b), applies to the credit under this subsection.
Section 20. 71.07 (8b) (e) of the statutes is amended to read:
71.07 (8b) (e) Administration. Section 71.28 (4) (5b) (e) to (h), as it applies to the credit under s. 71.28 (4) (5b), applies to the credit under this subsection.
Section 21. 71.07 (9m) (e) of the statutes is amended to read:
71.07 (9m) (e) The provisions of s. 71.28 (4) (5b) (e), (f), (g) and (h), as they apply to the credit under s. 71.28 (4) (5b), apply to the credit under this subsection.
Section 22. 71.07 (9r) (g) of the statutes is amended to read:
71.07 (9r) (g) The provisions of s. 71.28 (4) (5b) (f), (g) and (h), as they apply to the credit under s. 71.28 (4) (5b), apply to the credit under this subsection.
Section 23. 71.07 (10) (d) of the statutes is amended to read: