Short answer. Wisconsin research credit that is not used or refunded carries forward 50 taxable years under 2025 Wisconsin Act 220, enacted April 8, 2026. The old limit was 15 years, and the longer period covers every credit that had not yet expired when Act 220 took effect. There is no carryback, and carryforwards are tracked year by year on Schedule CF.
Key facts
| Carryforward | 50 taxable years (2025 Wis. Act 220), up from 15 |
|---|---|
| Carryback | None |
| Refund option | Up to 25% of the credit (tax years beginning after Dec. 31, 2023) |
| Transition | Applies to every credit not yet expired when Act 220 took effect |
| Forms | Schedule R (credit); Schedule CF (carryforwards) |
| Statute | Wis. Stat. 71.28(4), 71.47(4), 71.07(4k) |
How the carryforward works
Part of the credit can come back as cash; the rest waits a long time.
Wisconsin's credit is 5.75 percent of Wisconsin qualified research expenses above 50 percent of your average for the prior three years, or 2.875 percent of current-year Wisconsin QRE if you had none in any of those years. It is claimed on Schedule R under Wis. Stat. 71.28(4) for corporations, 71.47(4), and 71.07(4k) for individuals.
Credit you cannot use against Wisconsin tax, and do not receive as a refund, carries forward 50 taxable years. There is no carryback. Each year's carryforward is tracked on Schedule CF, which keeps the balance tied to the year it was earned.
Act 220 and credits already on the books
The extension reached back to older credits.
2025 Wisconsin Act 220, enacted April 8, 2026, raised the carryforward from 15 to 50 taxable years. It applies to every credit that had not expired when the law took effect, so a credit earned years ago under the 15-year rule now has the longer period as long as it was still alive on that date.
The Department of Revenue's Publication 131 (7/26) reflects the 50-year period. Some older Schedule R instructions still show 15 years, so if you are working from an older form or worksheet, check which limit it assumes.
The refundable share
Waiting is not the only option in Wisconsin.
For tax years beginning after December 31, 2023, up to 25 percent of the credit is refundable. The share was 10 percent before 2021 and 15 percent for 2021 through 2023. For a company with little or no Wisconsin tax, that refundable piece is the part of the credit it can see in cash now, and the carryforward holds what is left.
An illustrative example
Round numbers, chosen only to show the arithmetic.
Take a pre-profit SaaS company with $600,000 of Wisconsin QRE this year and a prior three-year average of $400,000. Half of that average is $200,000, so the qualifying excess is $400,000. At 5.75 percent the credit is $23,000.
The company owes no Wisconsin tax. Assume it takes the full 25 percent refundable share: $5,750 comes back as a refund, and the other $17,250 goes on Schedule CF as a carryforward with 50 taxable years to be used. These figures are illustrative, not a projection for any company.
Why the records matter years later
A 50-year carryforward makes old documentation more important, not less.
A credit that can sit for decades may be used by a company that looks nothing like the one that earned it, after an acquisition, a change of accountants, or a turnover of the whole engineering team. When it is finally applied, the four-part test analysis and expense records from the year it was earned are what support it.
R&D Binder produces the federal Section 41 documentation the Wisconsin credit rests on. Your CPA files the returns, and whether your facts qualify is your CPA's call.
More on Wisconsin's R&D credit
The full state overview, the federal Section 41 work it builds on, and related state guides:
Sources
Every claim on this page traces to a primary authority. Each source below is independent and verifiable.
- Wisconsin Statutes 71.28(4) (research credit, corporations) - Wisconsin Legislature
- 2025 Wisconsin Act 220 (SB 482), research credit carryforward extended to 50 years - Wisconsin Legislature
- Wisconsin DOR Publication 131, Tax Incentives for Conducting Qualified Research in Wisconsin (7/26) - Wisconsin Department of Revenue
- Wisconsin extends research income, franchise tax credit carryover (Apr. 13, 2026) - Bloomberg Tax
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