Wisconsin Senate Bill SB654

Wisconsin 2025-2026 Regular Session

• Introduced: 11/14/25
• Refer: 11/14/25
• Report Pass: 1/14/26
• Refer: 1/29/26
• Report Pass: 2/3/26
• Failed: 3/23/26

Caption

An Act to renumber and amend 77.54 (57d) (a) 4.; to create 77.54 (57d) (a) 2m., 77.54 (57d) (a) 4. b. and 77.54 (57d) (b) 4. of the statutes; Relating to: exempting persons engaged in certain contract research services from the sales and use tax. (FE)

Impact

If enacted, SB654 would have a significant effect on state tax law by removing the tax obligation for contract research services. This change could potentially lead to an increase in economic activity within the relevant industries, encouraging local and out-of-state businesses to expand or establish their operations in the state. Proponents argue that this could create new jobs and stimulate the economy, which is particularly important as industries recover from the impacts of economic fluctuations.

Summary

SB654 proposes to exempt individuals and entities engaged in certain contract research services from the sales and use tax. This legislative effort aims to alleviate some of the financial burdens on businesses within the contract research sector, which is vital to various industries, including pharmaceuticals and biotechnology. By eliminating the sales tax for these specific services, the bill seeks to promote growth within this sector and attract more businesses to operate in the state.

Contention

There may be contention surrounding SB654, particularly regarding its implications for state revenue. Critics could argue that while the exemption might spur growth in the contract research field, it could also result in a loss of tax revenue that the state depends on for funding essential services. Additionally, concerns may be raised about potential inequities created by favoring certain sectors over others, leading to debates on whether tax exemptions should be broadened to include more industries or whether they should remain specific to contract research.