The AEM Advocacy Team traveled to Madison, Wisconsin this month to testify before the Senate Agriculture and Revenue Committee and the Assembly Ways and Means Committee in favor of R&D bills. The committees heard companion bills AB 494 and SB 482, which would update the state’s research and development tax credits.
Under current law, companies may carry over unused research credits for 15 years after the credit is initially claimed. However, many companies’ tax liability leaves them unable to fully utilize the credits they have earned within the current 15-year window. When credits expire, state law requires companies to write off the value of unused credits. Under generally accepted accounting principles, these carryforwards are treated as deferred tax assets, meaning that when credits expire unused, companies must write down the asset and record a loss on publicly available financial statements. AB 494/SB 482 would extend the carryforward period in the state’s research tax credit from 15 years to 50 years, allowing companies more time to use their credits.
In testimony, AEM highlighted major benefits the state would reap from updating its R&D tax credit.
Keeping Wisconsin Competitive
The extension gives companies greater flexibility and certainty when making multi-year investments in research and development, which makes Wisconsin more attractive for these projects. R&D tax incentives are increasingly important for companies’ site selection and investment decisions, and increasing the carryover period signals that Wisconsin is committed to helping companies foster innovation.
Attracting Workers
More R&D investment in the state leads to more high-paying, high-skill jobs for its residents. R&D is already responsible for over 41,000 jobs in the state, and this number can continue to grow. Supporting more high-skilled, high-wage R&D jobs in the state will also provide more opportunities for Wisconsin students to find a job that utilizes their degrees here at home rather than pursuing out-of-state opportunities.
Click here to read AEM’s prepared written testimony.
SB 482 was voted out of the Senate Agriculture and Revenue committee, while AB 494 still awaits a vote. AEM will continue advocating for the passage of these bills as they are carried into the 2026 session.
