AEM joined the Innovation Coalition in Madison, Wisconsin last week to meet with lawmakers and advocate for increasing the Research Credit refundability to 50% in the state budget.
Member companies Kondex Corporation and CNH Industrial joined AEM and nine other Wisconsin-based manufacturers for a packed day of meetings in the State Capitol. AEM supports a competitive, pro-growth tax code that encourages investment in the United States, grows the economy and expands opportunity for all Americans.
In 2017, the Wisconsin State Legislature made the policy decision to make the Research Credit partially refundable (at 10%). Last session, bipartisan efforts increased refundability of the credit to 15%. In his budget proposal for 2023-2025, Governor Evers proposes to raise the refundable portion of the credit from 15 to 50%. Such an increase would help equipment manufacturers attract and support high-wage, high-skill jobs and foster continued innovation in Wisconsin.
While in Madison, member company executives and AEM staff met with Assembly Speaker Robin Vos (R-Burlington) and members of the Joint Finance Committee and asked them to support the budget proposal to increase refundability of the Research Credit to 50% when the state’s budget is finalized in July. They also urged lawmakers to retain the popular Manufacturing and Agriculture Credit.
Thirty-seven states have R&D credits, while 13 states have some form of a refundable credit ranging from 15% (Wisconsin) to fully refundable (Hawaii). Wisconsin lags behind in key R&D indicators regionally, and a competitive refundable credit will help Wisconsin take advantage of increased private R&D investments that will support high-wage and high-skilled jobs and attract new R&D operations to the state.
As the Wisconsin State Legislature continues its work on the state’s annual budget, AEM is ramping up its advocacy efforts to improve the tax environment for equipment manufacturers in the state. AEM will continue to educate elected officials on the benefits of the Research Credit and the Manufacturing and Agriculture Credit to the state’s equipment manufacturers.
To learn more about Wisconsin’s Research Credit and/or to get involved in AEM’s advocacy efforts, please reach out to the AEM Advocacy Team.
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