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.
Official sources
- Wisconsin Department of Revenue — Wisconsin Research Credits (revenue.wi.gov)
Related programs
Business Development Tax Credit
generally
Highly relevant to existing forest-products companies because Wisconsin Economic Development Corporation can certify refundable credits for capital investment, jobs and training rather than limiting support to competitive grants.
Enterprise Zone Jobs Tax Credit
Refundable project-specific components under a negotiated
Large strategic projects can receive refundable credits for jobs, retained jobs, capital investment, training and Wisconsin supply-chain purchases.
Manufacturing and Agriculture Credit
7.5% of eligible Wisconsin manufacturing production income
Major ongoing credit for businesses classified by Department of Revenue as manufacturers; tied to qualifying production income rather than a particular expansion.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.
Rehabilitation Credit (Internal Revenue Code §47)
Generally
A forest-products company rehabilitating a certified historic mill or industrial building for income-producing use may qualify.