Wisconsin Assembly Bill AB494

Wisconsin 2025-2026 Regular Session

• Introduced: 10/9/25
• Refer: 10/9/25
• Report Pass: 1/14/26
• Refer: 1/14/26
• Failed: 3/23/26

Caption

An Act to repeal 71.28 (5b) (d) 1. and 71.47 (5b) (d) 1.; to renumber and amend 71.07 (4n) (d) and 71.28 (5) (b); to amend 71.07 (2dm) (h), 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), 71.28 (1dm) (h), 71.28 (1dx) (e) 1., 71.28 (1dy) (d) 1., 71.28 (3g) (c), 71.28 (3h) (d) 1., 71.28 (3n) (f), 71.28 (4) (f), 71.28 (4) (k) 2., 71.28 (5g) (d) 1., 71.28 (5i) (d), 71.28 (5j) (d) 1., 71.28 (5k) (d), 71.28 (5n) (d) 1., 71.28 (5r) (d) 1., 71.28 (5rm) (d) 1., 71.28 (6) (e), 71.28 (6n) (d) 1., 71.28 (8b) (e), 71.28 (10) (d), 71.47 (1dm) (h), 71.47 (1dx) (e) 1., 71.47 (1dy) (d) 1., 71.47 (3g) (c), 71.47 (3h) (d) 1., 71.47 (3n) (f), 71.47 (4) (f), 71.47 (4) (k) 2., 71.47 (5g) (d) 1., 71.47 (5i) (d), 71.47 (5j) (d) 1., 71.47 (5k) (d), 71.47 (5r) (d) 1., 71.47 (5rm) (d) 1., 71.47 (6) (e), 71.47 (6n) (d) 1., 71.47 (8b) (e) and 71.47 (10) (d); to create 71.07 (4n) (d) 2., 71.28 (5) (b) 2., 71.28 (5b) (e), 71.28 (5b) (f), 71.28 (5b) (g), 71.28 (5b) (h), 71.47 (5b) (e), 71.47 (5b) (f), 71.47 (5b) (g) and 71.47 (5b) (h) of the statutes; Relating to: increasing the carryover period of the research income tax credit. (FE)

Impact

If enacted, AB494 would have a significant impact on state tax law by modifying the provisions related to the research income tax credit. This adjustment may encourage more companies to engage in research and experimentation, potentially leading to breakthroughs in various fields. Critics of the bill might argue that an extension of the carryover period could create a burden on state revenue, as the government would collect less in taxes over the short term. However, supporters contend that the long-term economic gains from enhanced research activities will outweigh the initial tax revenue impact.

Summary

Assembly Bill 494 (AB494) seeks to increase the carryover period of the research income tax credit. This bill is aimed at promoting research and development within the state by allowing businesses more flexibility in using tax credits earned for their research expenditures. By extending the carryover period, the legislation intends to provide firms with greater financial relief and an incentive to invest in innovative projects, which can lead to economic benefits for the state as a whole. Proponents of the bill argue that this change will stimulate growth in the state's tech and research sectors, ultimately leading to job creation and increased competition.

Conclusion

The passage of AB494 represents a strategic step towards fostering a robust research environment in the state. By making it easier for businesses to utilize their research credits, the bill embodies the government's commitment to supporting technological advancement and economic growth. However, ongoing debates will likely focus on ensuring that such policies do not disproportionately affect state revenue or promote practices that do not yield substantial benefits for the community.

Contention

The discussion surrounding AB494 is expected to include various viewpoints, particularly concerning the balance between tax incentives and state revenue. Some lawmakers may argue that while the intent to foster innovation is commendable, there needs to be caution regarding the fiscal implications of extending the carryover period for tax credits. A point of contention could be whether the bill sufficiently ensures that the economic benefits will indeed materialize in practice, and if the tax credits will reach the businesses most invested in research.