Posted by William Mehi on 06.11.26
Wisconsin has taken a major step toward strengthening its position as a leader in manufacturing and innovation. Governor Tony Evers recently signed Senate Bill 482/Assembly Bill 494 into law, now known as 2025 Wisconsin Act 220, a bipartisan measure designed to make the state's Research & Development (R&D) Tax Credit more valuable for businesses investing in innovation.
A Significant Change for Wisconsin Businesses
The new law extends the carry forward period for Wisconsin's R&D Tax Credit from 15 years to 50 years. This change addresses a long-standing challenge faced by many manufacturers and technology-driven companies.
Under the previous rules, businesses that generated R&D tax credits but did not have enough tax liability to fully utilize them risked losing a portion of those benefits when the credits expired. Because tax liabilities can fluctuate significantly from year to year, many companies were unable to maximize the value of their credits.
By extending the carry forward period to 50 years, Wisconsin is giving businesses far greater flexibility to use credits earned today against future tax obligations.
Why This Matters
Research and development investments often require long-term planning and substantial capital commitments. The extended carry forward period provides businesses with greater certainty that the incentives they earn will remain available when they need them.
This change is particularly important for manufacturers, who frequently invest in:
• New product development
• Process improvements
• Automation and advanced technologies
• Software development
• Prototype design and testing
These activities can qualify for valuable R&D tax credits that help offset the cost of innovation.
Supporting Wisconsin's Manufacturing Economy
According to the Association of Equipment Manufacturers (AEM), Wisconsin supports the third-highest number of equipment manufacturing jobs in the United States. Industry leaders have emphasized that modernizing R&D incentives is essential for maintaining investment, encouraging innovation, and supporting high-skill, high-wage jobs throughout the state.
As companies evaluate where to expand operations, launch new products, and invest in advanced manufacturing technologies, strong R&D incentives can play an important role in those decisions.
How Tax Point Advisors Can Help
Many businesses perform qualifying research activities without realizing they may be eligible for valuable federal and state R&D tax incentives. Identifying, documenting, and calculating these credits requires specialized expertise to ensure maximum benefit while maintaining compliance.
At Tax Point Advisors, our team helps manufacturers, technology companies, engineers, software developers, and other innovative businesses uncover opportunities to claim available R&D tax credits and deductions. We work closely with clients to identify qualifying activities, prepare supporting documentation, and maximize available tax savings.
Don't Leave Credits on the Table
Wisconsin's new 50-year carry forward period makes the state's R&D Tax Credit more valuable than ever. Businesses investing in innovation now have greater confidence that the credits they earn today can provide benefits well into the future.
If your company is developing new products, improving processes, or investing in technological advancements, Tax Point Advisors can help determine whether you qualify for valuable R&D tax incentives and ensure you receive the full benefit available under the law.
Contact Tax Point Advisors today to learn how Wisconsin's updated R&D tax credit rules could benefit your business.
