Wisconsin has taken a major step toward strengthening its position as a leader in manufacturing and innovation. Governor Tony Evers recently signed Senate Bill 482/Assembly Bill 494 into law, now known as 2025 Wisconsin Act 220, a bipartisan measure designed to make the state's Research & Development (R&D) Tax Credit more valuable for businesses investing in innovation.
Most contractors in the construction industries, including HVAC companies, don’t know that their day to day activities can qualify them for federal, and in some cases state, R&D tax credits.
For years, businesses investing in innovation have faced a frustrating tax hurdle; under Section 174, domestic research and development (R&D) expenses could no longer be deducted immediately and instead had to be amortized over five years. That change created cash flow strain for many companies, especially small and mid-sized businesses heavily invested in product development, software creation, and process improvement.
The state of Connecticut is doubling down on innovation, and small businesses stand to benefit in a big way. Recently there has been a push by state leaders to expand and strengthen R&D tax credit programs, with a particular focus on making them more accessible and valuable to startups and small to midsize companies. For businesses investing in research, product development, or process improvement, this signals a major opportunity to improve cash flow and reinvest in growth.
Many of the activities conducted by restaurant technology and software companies qualify for the R&D tax credit.
Many companies in the food processing industry do not realize that they are eligible for the research and development tax credit.
R&D is essential to driving technological change in aquaculture, and many people working in the industry engage in R&D activities on a weekly basis. These activities could qualify for a significant tax credit that shouldn’t be passed up.
All of the innovative pursuits related to crafting beer with various new flavor and aroma profiles, are exactly the types of ventures that the R&D credit is available for.
Did you know that Electrical Contractors may be eligible to receive Research and Development (R&D) tax credits?
Recent changes under the One Big Beautiful Bill Act (OBBBA) are bringing welcome relief to businesses that invest in research and development. Through Section 174A, companies can once again immediately deduct domestic research and development (R&D) expenses incurred after December 31, 2024, reversing the five-year amortization rule that had been in place since 2022.
