Assembly Bill 494 proposes significant changes to the research income tax credit provisions in Wisconsin. The bill aims to extend the carryover period for unused research credits from the current 15 years to 50 years, allowing claimants to offset their tax liabilities over a much longer timeframe. This change is intended to provide greater flexibility and support for businesses engaged 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 subsections that outline the updated carryover provisions.

In addition to extending the carryover period, the bill makes several technical amendments to ensure consistency across the statutes. Notably, it replaces references to the previous section numbers with new ones, specifically changing references from 71.28 (4) to 71.28 (5b) in multiple instances throughout the bill. This ensures that all relevant sections align with the updated framework for the research income tax credit. Overall, the bill seeks to enhance the state's support for research initiatives by allowing businesses to utilize their credits more effectively over an extended period.

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)