Wisconsin Assembly Bill AB204

Wisconsin 2025-2026 Regular Session

• Introduced: 4/23/25
• Refer: 4/23/25
• Report Pass: 6/6/25
• Refer: 6/6/25
• Refer: 1/30/26
• Report Pass: 2/4/26
• Refer: 2/4/26
• Failed: 3/23/26

Caption

An Act to amend 71.05 (6) (a) 15., 71.10 (4) (i), 71.21 (4) (a), 71.21 (6) (d) 3., 71.26 (2) (a) 4., 71.30 (3) (f), 71.34 (1k) (g), 71.365 (4m) (d) 2., 71.45 (2) (a) 10. and 71.49 (1) (f); to create 20.835 (2) (de), 71.07 (12), 71.28 (12), 71.47 (12) and 73.03 (78) of the statutes; Relating to: creating a video game production tax credit and making an appropriation. (FE)

Impact

If passed, AB204 would amend several statutes to create the framework for the video game production credit, potentially making Wisconsin a more attractive destination for gaming companies. Proponents of the bill argue that this would foster growth in the state's tech and creative industries, creating new job opportunities and supporting local economies. Additionally, the refundable nature of the tax credit means that companies would receive refunds if their tax credits exceed their tax liabilities, making it easier for smaller startups to benefit from the financial assistance.

Summary

Assembly Bill 204 introduces a refundable tax credit aimed at supporting the video game production industry in Wisconsin. This bill provides a tax credit equal to 30 percent of eligible wages and expenditures incurred while developing, producing, or creating video game products. To qualify, applicants must operate a business in Wisconsin, maintain a physical location, and seek a copyright for their video game production. The bill specifically excludes expenditures related to royalties, capital investments, management costs, and marketing, thus focusing the credit on direct labor costs associated with video game creation.

Contention

While the bill has garnered bi-partisan support, it also faces scrutiny regarding the criteria and oversight required for claiming the credits. There are concerns about the potential for fraud, as applicants must undergo an audit by a certified public accountant, which could create additional burdens for smaller companies. Opponents may also question whether the state should prioritize financial incentives for gaming companies over other industries or sectors that may require support.