Forest ProductsTax Credit Sourcebook

Wisconsin · research and development · WI-RD-001

Research Credits

Publication revised September 24, 2026. Sourcebook page 282.

Credit amount / calculation

Generally 5.75% of current qualified expenses exceeding 50% of the prior three-year average. Special research categories have different rates; up to 25% of the credit is refundable.

Business fit and eligible activity

Wisconsin manufacturers can claim a partly refundable research credit; research activity. Ordinary production, routine quality control and an equipment purchase alone do not qualify.

Illustrative business benefit

With $300,000 of current qualified expenses and a $200,000 three-year average, the ordinary base is $100,000. The credit is ($300,000 - $100,000) x 5.75% = $11,500 before applicable limitations.

Timing / first action

Tax-year claim: document the eligible expense, hire or placed-in-service date and meet any separate certification deadline. Identify the technical uncertainty and start contemporaneous project records before trying to calculate the credit.

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