Doubling the Refundable Research Credit from 10 to 20 percent
By WI Department of Revenue Secretary Peter Barca
Governor Evers understands how vitally important research and development is to the health and vibrancy of Wisconsin’s economy. Innovation leads to the development of new or improved products and services which can lead to new jobs. Most importantly, those jobs tend to be family-supporting jobs with healthy wages and benefits.
For this reason, Governor Evers’ proposed budget includes doubling the Refundable Research Credit. Beginning in tax year 2020, the governor recommends increasing the percentage of the research credit that is refundable from 10 percent to 20 percent to provide greater incentive for research and development expenditures in Wisconsin.
In order for an economy to grow and thrive, it must innovate and create. The talented workforce that we have in Wisconsin is the perfect catalyst for that innovation and creation, and it needs an environment that fosters both. Governor Evers feels strongly that doubling the Refundable Research Credit will provide business with an opportunity to conduct research in Wisconsin or, if they are already doing so, provide incentive to expand their research operations. Data shows that businesses claiming the credit are typically, but not exclusively, manufacturers. They conduct research to create new products or improve manufacturing processes. Growing these existing companies makes good economic sense.
Wisconsin’s educational system is one of the best in the country. It provides its workforce with the knowledge base needed to compete in a global economy. Having spent his career in education, Governor Evers knows first-hand how investments made in our education system today pay dividends for generations to come. He also knows how important it is to connect the dots. Young, educated people want to work in innovative, creative environments and for employers investing in the future. Therefore, we should make strategic investments in those employers. Doubling the Refundable Research Credit is one way to do just that and keep those young, educated people right here in Wisconsin.