Assembly Bill 670 proposes to exempt individuals engaged in contract research services from sales and use tax for machinery and equipment that is consumed or destroyed during qualified research activities. The bill defines "contract research services" as research conducted on behalf of a customer that would qualify as "qualified research" if performed by the customer's employees. This exemption expands upon existing tax exemptions for manufacturing and biotechnology sectors, thereby broadening the scope of entities eligible for tax relief in Wisconsin.

The bill includes several key legal modifications: it creates a new definition for "contract research services," renumbers and amends the existing definition of "qualified research," and introduces specific conditions under which research funded by combined group members or contract research expenses qualifies for the exemption. Additionally, it establishes that individuals engaged in contract research services within the state are eligible for this tax exemption. The bill is set to take effect three months after publication.