Assembly Bill 494 proposes significant changes to the research income tax credit in Wisconsin by extending the carryover period for unused research credits from 15 years to 50 years. This change allows claimants to utilize their unused research credits to offset tax liabilities for a much longer duration, potentially encouraging more investment in research and development activities. The bill also includes various amendments to existing statutes, specifically renumbering and amending sections related to the research credit, and creating new provisions that align with the extended carryover period.

In addition to the primary change regarding the carryover period, the bill makes several technical amendments to ensure consistency across different sections of the tax code. Notably, it replaces references to the previous carryover provisions with updated references to the new structure, specifically changing instances of "71.28 (4)" to "71.28 (5b)" throughout the relevant statutes. This comprehensive approach aims to streamline the application of the research income tax credit and enhance its effectiveness in promoting research initiatives within the state.

Statutes affected:
Bill Text: 71.07(2dm)(h), 71.07, 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)